Document:

Filed by sedaredgar.com - Anooraq Resources Corp. - Exhibit 4.27

EXECUTION COPY 

	RPM FUNDING COMMON TERMS AGREEMENT 
	 
	between 
	 
	RUSTENBURG PLATINUM MINES LIMITED 
	 
	PLATEAU RESOURCES (PROPRIETARY) LIMITED 
	 
	CENTRAL PLAZA INVESTMENTS 78 (PROPRIETARY) LIMITED
    
	 
	ANOORAQ RESOURCES CORPORATION 
	 
	and 
	 
	CERTAIN OTHERS 

CONTENT

	Clause 	Page 

	1.
      	INTERPRETATION
      	3
      
	2.
      	INTRODUCTION
      AND APPLICATION OF THIS AGREEMENT 	34
      
	3.
      	THE
      RPM FACILITIES 	35
      
	4.
      	CONDITIONS
      OF UTILISATION 	36
      
	5.
      	UTILISATIONS
      	36
      
	6.
      	ILLEGALITY
      AND MANDATORY PREPAYMENT 	36
      
	7.
      	CHANGES
      TO THE CALCULATION OF INTEREST 	38
      
	8.
      	TAX
      GROSS UP AND INDEMNITIES 	38
      
	9.
      	INCREASED
      COSTS 	40
      
	10.
      	GUARANTEE
      AND INDEMNITY 	43
      
	11.
      	REPRESENTATIONS
      	46
      
	12.
      	INFORMATION
      UNDERTAKINGS 	53
      
	13.
      	GENERAL
      UNDERTAKINGS 	56
      
	14.
      	EVENTS
      OF DEFAULT 	70
      
	15.
      	RENUNCIATION
      OF BENEFITS 	75
      
	16.
      	CERTIFICATE
      OF INDEBTEDNESS 	76
      
	17.
      	CESSION
      	76
      
	18.
      	ROLE
      OF THE SECURITY AGENT AND THE PLATEAU SECURITY SPV 	76
      
	19.
      	NOTICES
      AND DOMICILIA 	77
      
	20.
      	GOVERNING
      LAW 	79
      
	21.
      	JURISDICTION
      	79
      
	22.
      	GENERAL
      	79
      
	23.
      	COSTS
      AND EXPENSES 	80
      

2

RPM FACILITIES COMMON TERMS
AGREEMENT

THIS AGREEMENT is dated 12 June 2009 and made between:

	(1) 	
      RUSTENBURG PLATINUM MINES LIMITED a public company
      incorporated under the laws of South Africa with registration number
      1931/003380/06 (the “Original Lender" or "RPM" ”);

	 	 
	(2) 	
      PLATEAU RESOURCES (PROPRIETARY) LIMITED, a private
      limited liability company incorporated under the laws of South Africa with
      registration no. 1996/013879/07 (“Plateau”);

	 	 
	(3) 	
      CENTRAL PLAZA INVESTMENTS 78 (PROPRIETARY) LIMITED
      (to be renamed Pelawan Finance SPV (Proprietary) Limited), a private
      limited liability company incorporated under the laws of South Africa with
      registration no. 2006/032879/07 (“Pelawan SPV”);

	 	 
	(4) 	
      ANOORAQ RESOURCES CORPORATION, a public company
      incorporated under the laws of the Province of British Columbia, Canada
      with registration no. 10022-2033 (the “Parent”);

	 	 
	(5) 	
      N1C RESOURCES INC., a limited liability company
      incorporated under the laws of the Cayman Islands with registration no.
      CR-94610 (“N1C Resources”);

	 	 
	(6) 	
      N2C RESOURCES INC., a limited liability company
      incorporated under the laws of the Cayman Islands with registration no.
      CR-94611 (“N2C Resources” or the “Guarantor”);

	 	 
	(7) 	
      PELAWAN TRUST, an inter vivos trust
      established under the laws of South Africa with Master's Reference No.
      IT.8411/2004 (“Pelawan Trust”);

	 	 
	(8) 	
      PELAWAN INVESTMENTS (PROPRIETARY) LIMITED, a
      private limited liability company incorporated under the laws of South
      Africa with registration no. 2002/017920 (“Pelawan
      Investments”);

	 	 
	(9) 	
      MICAWBER 634 (PROPRIETARY) LIMITED, a private
      limited liability company incorporated under the laws of South Africa with
      registration no. 2007/025445/07 (the “Plateau Security SPV”);
      and

	 	 
	(10) 	
      MICAWBER 603 (PROPRIETARY) LIMITED, a private
      limited liability company incorporated under the laws of South Africa with
  registration no. 2007/019599/07 (the Opco Security SPV”).

The Parties agree as set out below. 

1. INTERPRETATION 

	1.1 	
      Words and expressions not otherwise defined in this
      Agreement shall bear the meaning given to them in the Senior Facility
      Agreement (as defined below). In addition, unless the context dictates
      otherwise, the words and expressions set forth below shall bear the
      following meanings and cognate expressions shall bear corresponding
      meanings:

	1.1.1 	
      “Acceptable Bank” means: 

	 	 	 
	 	 (a) 	 Standard Chartered Bank; or

3

	 	(b) 	
      a South African bank or financial institution or the
      South African branch of a foreign bank or financial institution, in each
      case, which has a credit rating equivalent to the minimum of S & P or
      Fitch credit rating of AA-(zaf), or Moody’s credit rating of Aa3za, a
      long-term national scale rating of A or higher by Standard & Poor's
      Rating Services or Fitch Ratings Ltd or A2 or higher by Moody's Investor
      Services Limited or a comparable rating from an internationally recognised
      credit rating agency; or

	 	 	 
	 	(c) 	
      any other bank or financial institution approved by the
      Lender in writing;

	1.1.2 	
      “Accounts Agreement” means the accounts agreement
      in the agreed form, dated on or about the date of this Agreement, between
      the Account Bank, the Senior Agent, the Security Agent, RPM, Plateau,
      Holdco and Opco;

	 	 
	1.1.3 	
      “Account Bank” means Standard Chartered Bank
      acting in its capacity as Account Bank or such other Account Bank that is
      an Acceptable Bank as shall be appointed pursuant to the Accounts
      Agreement and in either case, which is able to open and maintain bank
      accounts for the relevant members of the Plateau Group at a Johannesburg
      branch;

	 	 
	1.1.4 	
      “Accounting Principles” means IFRS, or, in
      relation to the Original Financial Statements of the Parent only,
      generally accepted accounting practice as applied in Canada (but only in
      relation to the Original Financial Statements of the Parent).

	 	 
	1.1.5 	
      “Acquisition” means the transaction pursuant to
      which the Parent will acquire an effective 51% interest in the Lebowa
      Platinum Mine operations and an additional 1% interest in certain other
      assets pursuant to the acquisition by Plateau of 51% of the shares in, and
      claims on shareholders loan account against, Holdco, which will, upon
      implementation of the transaction, own 100% issued share capital of Opco
      (which owns 100% of the Lebowa Platinum Mine operations), Lebowa Platinum
      Mines Limited and the Project Companies, for an aggregate cash
      consideration of ZAR2,600,000,000;

	 	 
	1.1.6 	
      "Acquisition Agreements" has the meaning given to
      it in the Senior Facilities Agreement;

	 	 
	1.1.7 	
      "Acquisition Documents" has the meaning given to
      it in the Senior Facilities Agreement;

	 	 
	1.1.8 	
      "Affiliate" means, in relation to any person, a
      subsidiary of that person or a Holding Company of that person or any other
      subsidiary of that Holding company;

	 	 
	1.1.9 	
      “Agreement” means this RPM Funding Common Terms
      Agreement and its Schedules;

	 	 
	1.1.10 	
      “Anooraq Common Shares” means common shares,
      without par value, in the capital of the Parent as such shares are
      constituted on the date of this Agreement, as the same may be reorganized,
      reclassified or otherwise changed pursuant to any Share Adjustment
      Event;

	 	 
	1.1.11 	
      "Anooraq 2 Consideration Shares" means, at each
      Conversion Date, the number of Anooraq Common Shares to be issued and
      allotted to Pelawan SPV against delivery by Pelawan SPV of the Plateau 2
      Shares in accordance with the Plateau Forward Sale Agreement, provided
      that the

4

		
      aggregate number of such Anooraq 2 Consideration Shares
      issued under the Plateau Forward Sale Agreement shall not (subject to no
      Share Adjustment Event having occurred) exceed 115 800 000 Anooraq
      Ordinary Shares;

	 	 	 
	1.1.12 	
      "Anooraq 3 Consideration Shares" means, at each
      Conversion Date, the number of Anooraq Common Shares to be issued and
      allotted to Pelawan SPV against delivery by Pelawan SPV of the Plateau 3
      Shares in accordance with the Plateau Forward Sale Agreement, provided
      that the aggregate number of such Anooraq 3 Consideration Shares issued
      under the Plateau Forward Sale Agreement shall not (subject to no Share
      Adjustment Event having occurred) exceed 111 600 000 Anooraq Ordinary
      Shares;

	 	 	 
	1.1.13 	
      "Anooraq Group" means the Parent, N1C Resources,
      N2C Resources, Plateau, Holdco and Opco and each of their direct and
      indirect Subsidiaries for the time being;

	 	 	 
	1.1.14 	
      Anooraq Security Shares means 56 691 303 Anooraq
      Common Shares, constituting 26% of all of the Anooraq Common Shares on a
      fully diluted basis, as at the Closing Date, or such other number of
      Anooraq Common Shares as will from time to time after the Closing Date
      constitute 26% of all the Anooraq Common Shares in issue as at that
      date;

	 	 	 
	1.1.15 	
      “Applicable Mine Plan” means:

	 	 	 
		(a) 	
      in relation to the period beginning on 1 July 2009 and
      ending on 30 June 2043, the business development plan in relation to the
      mining operations of Opco including the upgrade and expansion of Lebowa
      describing the nature and extent of, and prospects for, Lebowa and the
      construction timetable for the MPH UG2 Project in the agreed form;
    or

	 	 	 
		(b) 	
      in the event the same is updated in accordance with the
      provisions of the Transaction Documents and approved by the Lender, the
      most recent such update so approved in each case incorporating the then
      applicable Base Case Model;

	 	 	 
	1.1.16 	
      “Auditors” means one of PricewaterhouseCoopers,
      Ernst & Young, KPMG or Deloitte & Touche or such other firm
      approved in advance by the Lender (such approval not to be unreasonably
      withheld or delayed);

	 	 	 
	1.1.17 	
      “Authorisation” means any authorisation, consent,
      approval, resolution, licence, exemption, filing, agreement, certificate,
      notarisation, resolution, permit or registration or any exemption from any
      of the aforesaid, by, with or from any authority which has jurisdiction,
      control or authority over any party in connection with any Transaction
      Document, any of the steps, exercise of rights or performance of
      obligations under any Transaction Document or in connection with any
      aspect of the business or operations of a party (including without
      limitation, any approvals required from the Exchange Control Department of
      the South African Reserve Bank in relation to any Transaction Document or
      any transaction contemplated under any Transaction Document and all
      necessary Mining Licenses);

	 	 	 
	1.1.18 	
      “Base Case Model” means the financial model
      entitled “LPM Opco Fin Model V4.2xls”, or such other model as updated
      before the Closing Date setting out inter alia the projected
      production (if applicable), income, expenditure, actual and projected
      cashflows, assets and liabilities of Opco, Holdco and Plateau for the
      period from 1 July 2009 to 30 June 2019 based on the Applicable Mine Plan
      and on prudent assumptions (and including computations
  and

5

		
      methodology of calculating ratios contained therein) in
      the agreed form prepared by Plateau as at the Closing Date as amended from
      time to time in accordance with the terms of the Transaction Documents so
      as to be consistent with the Applicable Mine Plan from time to
  time;

	 	 	 
	1.1.19 	
      "Borrower Cash Waterfall" means the cash waterfall
      and priority of payments relating to the Borrower Proceeds Account as
      provided for in the Global Intercreditor Agreement;

	 	 	 
	1.1.20 	
      “Business Day” means a day (other than a Saturday
      or Sunday) on which banks are open for general business in
      Johannesburg;

	 	 	 
	1.1.21 	
      “Borrower Proceeds Account” means the Rand
      denominated bank account referred to in clause 13.30.2(a) and as defined
      in the Senior Facilities Agreement;

	 	 	 
	1.1.22 	
      “Capital Expenditure” means any expenditure or
      obligation in respect of expenditure which, in accordance with the
      Accounting Principles, is treated as capital expenditure (and including
      the capital element of any expenditure or obligation incurred in
      connection with a finance lease) and, in the case of Opco, which is
      included in the Base Case Model or otherwise approved by the
  Lender;

	 	 	 
	1.1.23 	
      “Cash” means, at any time, cash denominated in
      Rand or Dollars in hand or at bank and (in the latter case) credited to an
      account in the name of Plateau with an Acceptable Bank and to which
      Plateau is alone beneficially entitled and for so long as:

	 	 	 
		(a) 	
      that cash is repayable on demand;

	 	 	 
		(b) 	
      repayment of that cash is not contingent on the prior
      discharge of any other indebtedness of Plateau or of any other person
      whatsoever or on the satisfaction of any other condition;

	 	 	 
		(c) 	
      there is no Security over that cash except for
      Transaction Security; and

	 	 	 
		
      the cash is freely and immediately available to be
      applied in repayment or prepayment of the Facilities;

	 	 	 
	1.1.24 	
      “Cash Equivalent Investments” means at any
      time:

	 	 	 
		(a) 	
      certificates of deposit maturing not later than the next
      succeeding Repayment Date after the date on which the investment is made
      and issued by an Acceptable Bank;

	 	 	 
		(b) 	
      any investment in marketable debt obligations issued or
      guaranteed by the government of the United States of America, the United
      Kingdom, South Africa, any member state of the European Economic Area or
      any Participating Member State or by an instrumentality or agency of any
      of them having an equivalent credit rating, maturing not later than the
      next succeeding Repayment Date after the date on which the investment is
      made and not convertible or exchangeable to any other security;

	 	 	 
		(c) 	
      commercial paper not convertible or exchangeable to any
      other security for which a recognised trading market
  exists;

6

	 	(i) 	
      issued by an issuer incorporated in the United States of
      America, the United Kingdom, South Africa, any member state of the
      European Economic Area or any Participating Member State;

	 	 	 
	 	(ii) 	
      which matures not later than the next succeeding
      Repayment Date after the date on which the investment is made;
  and

	 	 	 
	 	(iii) 	
      which has a long-term national scale credit rating of
      either A-1 or higher by Standard & Poor's Rating Services or F1 or
      higher by Fitch Ratings Ltd or P-1 or higher by Moody's Investor Services
      Limited, or, if no rating is available in respect of the commercial paper,
      the issuer of which has an equivalent long-term national scale
    rating;

	 	(d) 	
      sterling bills of exchange eligible for rediscount at the
      Bank of England and accepted by an Acceptable Bank (or their
      dematerialised equivalent);

	 	 	 
	 	(e) 	
      any investment in money market funds which (i) have a
      long term national scale credit rating of either A-1 or higher by Standard
      & Poor's Rating Services or F1 or higher by Fitch Ratings Ltd or P-1
      or higher by Moody's Investor Services Limited, (ii) invest substantially
      all their assets in securities of the types described in paragraphs (a) to
      (d) above and (iii) can be turned into Cash by not later than the next
      succeeding Repayment Date after the date on which the investment is made;
      or

	 	 	 
	 	(f) 	
      any other debt security approved by the
  Lender,

in each case, denominated in Rand and
to which any of Plateau, Holdco or Opco is alone (or together with any of the
other them) entitled at that time and which is not issued or guaranteed by any
member of the Plateau Group or the Anooraq Group or subject to any Security
(other than Security arising under the Transaction Security Documents) and the
proceeds of which are capable of being remitted to Plateau, Holdco or Opco; 

	1.1.25 	
      “Change of Control" means:

	 	 	 
		(a) 	
      HDPs cease to have direct or indirect legal and
      beneficial ownership of at least 51% of the issued equity share capital of
      Holdco;

	 	 	 
		(b) 	
      Pelawan Investments ceases to be the beneficiary of
      Pelawan Trust and/or Pelawan Dividend Trust (other than in circumstances
      where Pelawan Trust and Pelawan Dividend Trust are terminated and the
      Anooraq Common Shares held by Pelawan are distributed in specie to
      Pelawan Investments);

	 	 	 
		(c) 	
      the Pelawan Group ceases to have direct or indirect legal
      and beneficial ownership of at least 51% of the issued equity share
      capital of the Anooraq Group;

	 	 	 
		(d) 	
      a “Change of Control” as defined in the Holdco
      Shareholders Agreement which is not remedied or cured in accordance with
      and within the applicable remedy or cure periods referred to;

	 	 	 
		(e) 	
      the Parent ceases to have legal and beneficial ownership
      of 100% of the issued equity share capital of N1C
  Resources;

7

	 	(f) 	
      N1C Resources ceases to have legal and beneficial
      ownership of 100% of the issued equity share capital of N2C
    Resources;

	 	 	 
	 	(g) 	
      N2C Resources ceases to have legal and beneficial
      ownership of 100% of the issued equity share capital of Plateau except on
      a intra-day basis pursuant to the steps required to convert the
      convertible preference shares as contemplated by the Conversion
      Implementation Agreement;

	 	 	 
	 	(h) 	
      Plateau ceases after the Closing Date to have legal and
      beneficial ownership of at least 51% of the issued equity share capital of
      Holdco;

	 	 	 
	 	(i) 	
      Holdco ceases to have legal and beneficial ownership of
      100% of the issued equity share capital of Opco;

	 	 	 
	 	(j) 	
      any person or group of persons acting in concert gains
      direct or indirect control of the Parent;

	 	 	 
	 	(k) 	
      any person or group of persons acting in concert gains
      direct or indirect control of Pelawan Investments (other than pursuant to
      an “Excluded Change” (as defined in the Holdco Shareholders
      Agreement as at the date of this Agreement)).

For the purposes of this
definition: 

“control” in relation to a
person means: 

	 	(i) 	
      the power (whether by way of ownership of shares, proxy,
      contract, agency or otherwise) to:

	 	 	 	 
	 		(A) 	
      cast, or control the casting of, more than 35%, of the
      maximum number of votes that might be cast at a general meeting of that
      person; or

	 	 	 	 
	 		(B) 	
      appoint or remove all, or the majority, of the directors
      or other equivalent officers of that person; or

	 	 	 	 
	 		(C) 	
      give directions with respect to the operating and
      financial policies of that person, with which the directors or other
      equivalent officers of that person are obliged to comply; and/or

	 	 	 	 
	 	(ii) 	
      the holding beneficially of more than 35% of the issued
      equity share capital of that person;

“acting in concert” means, a
group of persons who, pursuant to an agreement or understanding (whether formal
or informal), actively co-operate, through the acquisition directly or
indirectly of shares in a person by any of them, either directly or indirectly,
to obtain or consolidate control of that person; 

“equity share capital” in
relation to a person, means that person’s issued share capital (excluding any
part of that issued share capital that carries no right to participate beyond a
specified amount in a distribution of either profits or capital). 

	1.1.26 	
      “Closing Date” means the “Closing Date” as
      defined in the Phase 3 Implementation Agreement.

8

	1.1.27 	
      “Constitutional Documents” means in respect of any
      person at any time, the then current and up-to-date constitutional
      documents of such person at such time (including, without limitation, such
      person’s memorandum and articles of association, certificate of
      incorporation or commercial registration certificate);

	 	 	 
	1.1.28 	
      "Conversion" means individually or collectively as
      the context may require: a) the conversion of the RPM Pelawan SPV B1
      Preference Shares into such number of Pelawan SPV Converted Shares as is
      contemplated in the RPM Pelawan SPV B1 Preference Share Subscription
      Agreement; b) the conversion of the Pelawan SPV Plateau B2 Preference
      Shares into such number of Plateau 2 Converted Shares as contemplated
      under the Pelawan SPV Plateau B2 Preference Share Agreement; and c) the
      conversion of the Pelawan SPV Plateau B3 Preference Shares into such
      number of Plateau 3 Converted Shares as contemplated under the Pelawan SPV
      Plateau B3 Preference Share Agreement; and Convert and Converted
      will be construed accordingly;

	 	 	 
	1.1.29 	
      "Conversion Date" means the "Conversion Date" as
      defined in the RPM Pelawan SPV B1 Subscription Agreement;

	 	 	 
	1.1.30 	
      "Conversion Implementation Agreement" means the
      conversion implementation agreement date on or about the date of this
      Agreement entered into between, inter alia, RPM, Plateau, Pelawan
      Investments, Pelawan Trust, Pelawan SPV and the Parent;

	 	 	 
	1.1.31 	
      “Counter Indemnity Agreements” means collectively,
      the Opco Counter Indemnity Agreements, the N2C Counter Indemnity Agreement
      and the Plateau Counter Indemnity Agreement;

	 	 	 
	1.1.32 	
      “CPI” means the consumer price index as published
      from time to time by Statistics South Africa, which is referred to as
      “Consumer Price Index (CPI) for all urban areas” in Statistical Release
      P0141, or such index for CPI as determined by Statistics South Africa and
      as may replace or supersede the same, provided that if, after the
      Signature Date:

	 	 	 
		(a) 	
      such index shall cease to be published; or

	 	 	 
		(b) 	
      either the Lender or Plateau should notify the other on
      reasonable grounds that, due to a change in circumstances, the index is no
      longer representative, then, in any such circumstances, the Lender and
      Plateau will use such other official information or index calculating the
      rate of inflation as may be available and acceptable to them, or failing
      such acceptance, then, for the purposes of the Finance Documents, an
      alternative index (which reasonably approximates what CPI measured before
      the index ceased to be published or was no longer representative) shall be
      determined by the Lender which determination shall be binding upon the
      Parties;

	 	 	 
	1.1.33 	
      “Default” means an Event of Default or any event
      or circumstance specified in Clause 14 (Events of Default) which would
      (with the expiry of a grace period, the giving of notice, the making of
      any determination under the Finance Documents or any combination of any of
      the foregoing) be an Event of Default;

	 	 	 
	1.1.34 	
      “Delegate” means any delegate, agent, attorney or
      trustee appointed by the Plateau Security SPV, the Opco Security SPV or
      the Security Agent;

9

	1.1.35 	
      "Disclosure Schedule" means the disclosure
      schedule to be delivered to the Lender on or before the Closing
    Date;

	 	 
	1.1.36 	
      “Environmental Claim” means any claim, proceeding,
      formal notice or investigation by any person in respect of any
      Environmental Law.

	 	 
	1.1.37 	
      “Environmental Law” means any applicable law or
      regulation which relates to:

	 	(a) 	
      the pollution or protection of the environment;

	 	 	 
	 	(b) 	
      harm to or the protection of human health;

	 	 	 
	 	(c) 	
      the conditions of the workplace; or

	 	 	 
	 	(d) 	
      any emission or substance capable of causing harm to any
      living organism or the environment,

including, without limitation,
National Environmental Management Act, 1998 of South Africa and the National
Water Act, 1998 of South Africa. 

	1.1.38 	
      “Environmental Permits” means any permit and other
      Authorisation and the filing of any notification, report or assessment
      required under any Environmental Law for the operation of the business of
      any member of the Plateau Group conducted on or from the properties owned
      or used by any member of the Plateau Group.

	 	 
	1.1.39 	
      “Environmental Report” means the environmental
      compliance report prepared by Coffey Mining (South Africa) (Proprietary)
      Limited, trading as RSG Global and dated September 2008 relating to
      compliance by Lebowa with the Equator Principles and addressed to, and/or
      capable of being relied upon by, the Finance Parties.

	 	 
	1.1.40 	
      “Equator Principles” means the framework for the
      management of environmental and social issues in project financing
      published at www.equator-principles.com.

	 	 
	1.1.41 	
      "Event of Default" means any event or circumstance
      specified in clause 14 (Events of Default);

	 	 
	1.1.42 	
      "Excluded Default" means a Senior Event of Default
      (as defined in the Global Intercreditor Agreement) which arises solely as
      a result of:

	 	(a) 	
      RPM failing to comply with its obligations under clause
      18.15(b) (RPM Undertaking relating to Disposals) of the Global
      Intercreditor Agreement; or

	 	 	 
	 	(b) 	
      a "Change of Control" (as defined in the Senior
      Facilities Agreement) occurring because RPM has ceased to have legal and
      beneficial ownership of at least 25.1% of the issued equity share capital
      of Holdco;

	1.1.43 	
      “Existing Operational Guarantee” means a guarantee
      existing as at the Signature Date and disclosed in Schedule 5 (Existing
      Operational Guarantees).

10

	1.1.44 	
      "Final Repayment date" means the date falling on
      the 9th anniversary of the Closing Date;

	 	 	 
	1.1.45 	
      “Finance Document” means:

	 	 	 
		(a) 	
      this Agreement;

	 	 	 
		(b) 	
      the Global Intercreditor Agreement;

	 	 	 
		(c) 	
      the Standby Facility Agreement;

	 	 	 
		(d) 	
      the OCSF Agreement;

	 	 	 
		(e) 	
      the RPM Plateau A Preference Share Subscription
      Agreement;

	 	 	 
		(f) 	
      the RPM Pelawan SPV B1 Preference Share Subscription
      Agreement;

	 	 	 
		(g) 	
      the Plateau Holdco A Preference Share Subscription
      Agreement;

	 	 	 
		(h) 	
      the RPM Holdco A Preference Share Subscription
      Agreement;

	 	 	 
		(i) 	
      the Holdco Opco A Preference Share Subscription
      Agreement;

	 	 	 
		(j) 	
      Pelawan SPV Plateau B2 Preference Share Subscription
      Agreement;

	 	 	 
		(k) 	
      Pelawan SPV Plateau B3 Preference Share Subscription
      Agreement;

	 	 	 
		(l) 	
      Pelawan Investments Guarantee Agreement;

	 	 	 
		(m) 	
      the RPM Funding Loan Agreement;

	 	 	 
		(n) 	
      the Plateau Funding Loan Agreement;

	 	 	 
		(o) 	
      the Opco Funding Loan Agreement;

	 	 	 
		(p) 	
      the First Ranking Opco Debt Guarantee;

	 	 	 
		(q) 	
      the Second Ranking Opco Debt Guarantee;

	 	 	 
		(r) 	
      the Third Ranking Opco Debt Guarantee;

	 	 	 
		(s) 	
      the Holdco Guarantee;

	 	 	 
		(t) 	
      the Second Ranking Plateau Debt Guarantee;

	 	 	 
		(u) 	
      the Third Ranking Plateau Debt Guarantee;

	 	 	 
		(v) 	
      the Fourth Ranking Plateau Debt Guarantee;

	 	 	 
		(w) 	
      each Counter Indemnity Agreement;

	 	 	 
		(x) 	
      each Security SPV Document;

	 	 	 
		(y) 	
      each Transaction Security Document;

	 	 	 
		(z) 	
      the Accounts Agreement;

	 	 	 
		(aa) 	
      the Pelawan SPV Forward Sale
Agreement;

11

	 	(bb) 	
      the Plateau Forward Sale Agreement;

	 	 	 
	 	(cc) 	
      the Pelawan Share for Share Agreement;

	 	 	 
	 	(dd) 	
      the Conversion Implementation Agreement; and

	 	 	 
	 	(ee) 	
      each utilisation request for a utilisation under any of
      the agreements specialised above;

and any other document designated as a
“Finance Document” by the Lender and Plateau; 

	1.1.46 	
      “Financial Indebtedness” means any indebtedness
      for or in respect of:

	 	 	 
		(a) 	
      moneys borrowed and debit balances at banks or other
      financial institutions;

	 	 	 
		(b) 	
      any amount raised by acceptance under any acceptance
      credit or bill discounting facility (or dematerialised
  equivalent);

	 	 	 
		(c) 	
      any amount raised pursuant to any note purchase facility
      or the issue of bonds, notes, debentures, loan stock or any similar
      instrument;

	 	 	 
		(d) 	
      the amount of any liability in respect of any lease or
      instalment sale contract which would in accordance with the Accounting
      Principle be treated as a finance or capital lease;

	 	 	 
		(e) 	
      receivables sold or discounted (other than any
      receivables to the extent they are sold on a non-recourse basis and meet
      any requirement for de-recognition under the Accounting
  Principles);

	 	 	 
		(f) 	
      any Treasury Transaction (and, when calculating the value
      of that Treasury Transaction, only the marked to market value (or, if any
      actual amount is due as a result of the termination or close-out of that
      Treasury Transaction, that amount) shall be taken into account);

	 	 	 
		(g) 	
      any counter-indemnity obligation in respect of a
      guarantee, bond, standby or documentary letter of credit or any other
      instrument issued by a bank or financial institution;

	 	 	 
		(h) 	
      any amount raised by the issue of redeemable shares which
      are redeemable (other than at the option of the issuer) before the Final
      Repayment Date or are otherwise classified as borrowings under the
      Accounting Principles);

	 	 	 
		(i) 	
      any amount of any liability under an advance or deferred
      purchase agreement if (i) one of the primary reasons behind entering into
      the agreement is to raise finance or to finance the acquisition or
      construction of the asset or service in question or (ii) the agreement is
      in respect of the supply of assets or services and payment is due more
      than 90 (ninety) days after the date of supply;

	 	 	 
		(j) 	
      any amount raised under any other transaction (including
      any forward sale or purchase, sale and sale back or sale and leaseback
      agreement) which would be classified as borrowings under the Accounting
      Principles; and

12

		(k) 	
      the amount of any liability in respect of any guarantee
      for any of the items referred to in paragraphs (a) to (j) above;

	 	 	 
	1.1.47 	
      “Finance Party” means the Lender, the Plateau
      Security SPV and the Opco Security SPV;

	 	 	 
	1.1.48 	
      "First Ranking Opco Debt Guarantee" means the debt
      guarantee in the form, dated on or about the date of this Agreement,
      issued by the Opco Security SPV in favour of Holdco for the obligations of
      Opco owed to Holdco under the Opco Funding Loan Agreement

	 	 	 
	1.1.49 	
      “Force Majeure” means circumstances or an event
      beyond the reasonable control of Plateau which, despite the exercise of
      diligent efforts, Plateau was unable to prevent, limit or minimise,
      including (without limitation) any act of God, any act or omission of a
      competent authority, war, (whether declared or not), military operations,
      insurrection or civil disorder, riot, strikes (except strikes by or
      affecting employees of Plateau as a result of any unlawful act or omission
      of Plateau), civil commotion, invasion, armed conflict, hostile act of
      foreign enemy, act of terrorism, sabotage, radiation, plague or epidemic,
      a continuing emergency situation, fire, lightning, explosion or any other
      such cause

	 	 	 
	1.1.50 	
      "Fourth Ranking Plateau Debt Guarantee” means the
      debt guarantee in the agreed form, dated on or about the date of this
      Agreement, issued by the Plateau Security SPV in favour of RPM for the
      obligations of Plateau to RPM in respect of the RPM Plateau A Preference
      Shares;

	 	 	 
	1.1.51 	
      “Funds Flow Statement” means a funds flow
      statement in the agreed form;

	 	 	 
	1.1.52 	
      “Global Intercreditor Agreement” means the global
      intercreditor agreement in the agreed form, dated on or about the date of
      this Agreement, between the Senior Agent, the Security Agent, Plateau,
      RPM, Holdco, Opco, the Parent, N1C Resources, N2C Resources, the Opco
      Security SPV and the Plateau Security SPV;

	 	 	 
	1.1.53 	
      “HDP” means an "HDP" as defined in the Holdco
      Shareholders Agreement;

	 	 	 
	1.1.54 	
      “Holdco” means Richtrau No. 179 (Proprietary)
      Limited (Registration No. 2007/106711/07), a private company incorporated
      in accordance with the laws of South Africa;

	 	 	 
	1.1.55 	
      "Holdco Group" means Holdco, Opco and their direct
      and indirect Subsidiaries from time to time;

	 	 	 
	1.1.56 	
      "Holdco Guarantee" means the written guarantee
      concluded or to be concluded between Holdco and RPM pursuant to which
      Holdco guarantees the obligations of Plateau in respect of the RPM Plateau
      A Preference Shares;

	 	 	 
	1.1.57 	
      "Holdco Opco A Preference Shares" means 1000
      cumulative, redeemable preference par value shares of R1.00 in the share
      capital of Opco to be subscribed for by Holdco, having the rights and
      privileges set out in the Holdco Opco A Preference Share Subscription
      Agreement and the articles of association of Opco;

	 	 	 
	1.1.58 	
      “Holdco Opco A Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between Opco

13

		
      and Holdco in terms of which Holdco agrees to subscribe
      for the Holdco Opco A Preference Shares;

	 	 	 
	1.1.59 	
      “Holdco Sale of Shares Agreement” means the sale
      of shares agreement, dated 28 March 2008, between Plateau, RPM and Anglo
      Platinum Limited, pursuant to which (taking into account the amendments to
      such agreement) Plateau will purchase and RPM will sell 11,93% of the
      issued share capital of, and 51% of RPM’s claims on shareholders loan
      account against, Holdco for an aggregate cash consideration of
      ZAR2,600,000,000;

	 	 	 
	1.1.60 	
      “Holdco Security Documents” means each of the
      documents listed as being a Holdco Security Document in Part 2 of Schedule
      2 (Transaction Security Documents) together with any other document
      entered into by Holdco creating or expressed to create any Security over
      all or any of its assets in respect of any of the obligations of Holdco
      under the RPM Funding Loan Agreement, the Plateau Funding Loan Agreement
      and the Holdco Guarantee;

	 	 	 
	1.1.61 	
      “Holdco Shareholders Agreement” means the written
      shareholders agreement dated 28 March 2008 between RPM, Plateau and
      Holdco;

	 	 	 
	1.1.62 	
      “Indexed” means, in relation to any sum, that sum
      adjusted annually to take account of year-on-year changes in the CPI since
      30 June 2009;

	 	 	 
	1.1.63 	
      "Interim Repayment Date” means the date falling on
      the 6th (sixth) anniversary of the Closing Date;

	 	 	 
	1.1.64 	
      "JSE" means the securities exchange operated by
      the JSE Limited, registration number 2005/022939/06, a company
      incorporated under the laws of South Africa;

	 	 	 
	1.1.65 	
      “Lebowa” means the Lebowa Platinum Mine operations
      including, a platinum group metals (comprising platinum, palladium,
      rhodium, ruthenium, osmium and iridium) mine located on the Eastern Limb
      of the Bushveld Complex in South Africa, on the Diamand, Wintersveld,
      Jagdlust, Middelpunt, Umkoanesstad and Zeekoegat farms;

	 	 	 
	1.1.66 	
      “Legal Reservations” means any matters which are
      set out as qualifications or reservations as to matters of law of general
      application in the legal opinions required to be delivered to the Lender
      pursuant to Clause 4 (Conditions of Utilisation);

	 	 	 
	1.1.67 	
      “Lender” means:

		 
	 	(a)	the Original Lender; and
		 
	 	(b)	
      any bank, financial institution, trust, fund or other
      entity which has become a Party in accordance with Clause 18
    (Cession),

		 	
		
      which in each case has not ceased to be a Party in
      accordance with the terms of this Agreement;

	 	 	 
	1.1.68 	
      “Loan” means the aggregate principal amount of
      advances for the time being outstanding under the Standby Facility and the
      OCSF Facility;

	 	 	 
	1.1.69 	
      “Loan Commitment” means:

14

	 	(a) 	
      in relation to the Original Lender in respect of the
      Standby Facility, an amount equal to 29/49 of the distributions received
      by RPM from Holdco in its capacity as an ordinary shareholder of Holdco or
      in its capacity as the lender under the RPM Holdco Loan Agreement, but
      excluding (for the avoidance of doubt) any distributions received in its
      capacity as a holder of preference shares in the share capital of
      Holdco;

	 	 	 
	 	(b) 	
      in relation to the Original Lender in respect of the OCSF
      Facility, R750 000 000 (seven hundred and fifty million Rand);

	 	 	 
	 	(c) 	
      in relation to any other Lender, the amount of any Loan
      Commitment transferred to it under this Agreement and the applicable
      Finance Documents,

to the extent not cancelled, reduced
or transferred by it under the Finance Documents; 

	1.1.70 	
      "Mandatory Debt Refinance" means the refinancing
      of the Standby Facility, the OCSF Facility and the RPM Plateau A
      Preference Shares through the raising of external funding in accordance
      with the principles and procedures set out in Schedule 5;

	 	 	 
	1.1.71 	
      “Material Adverse Effect” means a material adverse
      effect on:

	 	 	 
		(a) 	
      the business, operations, property, condition (financial
      or otherwise) or prospects (taking into account the funding required to be
      provided by Plateau and RPM under the Holdco Shareholders Agreement and by
      RPM under the OCSF Agreement (for so long as it is available)) of any
      Obligor individually or the Pelawan Group taken as a whole, the Anooraq
      Group taken as a whole, or the Plateau Group taken as a whole;
or

	 	 	 
		(b) 	
      the ability of an Obligor to perform its obligations
      under any of the Transaction Documents; or

	 	 	 
		(c) 	
      the validity or enforceability of, or the effectiveness
      or ranking of any Security granted or purporting to be granted pursuant to
      any of, the Finance Documents or the rights or remedies of any Finance
      Party (directly or indirectly) under any of the Finance
  Documents;

	 	 	 
	1.1.72 	
      “Mining Rights” means mining rights (as defined
      under the MPRD Act);

	 	 	 
	1.1.73 	
      “MPRD Act” means the Mineral and Petroleum
      Resources Development Act, 2002 of South Africa;

	 	 	 
	1.1.74 	
      "N2C Counter Indemnity Agreement" means the
      counter indemnity agreement, dated on or about the date of this Agreement,
      between N2C Resources and the Plateau Security SPV pursuant to which N2C
      Resources indemnifies and holds the Plateau Security SPV harmless in
      respect of claims made against the Plateau Security SPV under the Second
      Ranking Plateau Debt Guarantee, the Third Ranking Plateau Debt Guarantee
      and the Fourth Ranking Plateau Debt Guarantee;

	 	 	 
	1.1.75 	
      “N2C Resources Shareholder Loan Agreement” means
      the direct shareholder loan agreement in the agreed form, dated on or
      about the date of this Agreement, between N2C Resources as lender and
      Plateau as borrower

15

		
      pursuant to which N2C Resources agrees to advance a
      shareholder loan to Plateau to enable Plateau to fund the payment to RPM
      of a portion of the purchase price for 11,93% of the issued share capital
      of Holdco under the Holdco Sale of Shares Agreement;

	 	 	 
	1.1.76 	
      "N2C Security Documents" means each of the
      documents listed as being a N2C Resources Security Document in Part 4 of
      Schedule 2 (Transaction Security Documents) together with any other
      document entered into by N2C Resources creating or expressed to create any
      Security over all or any part of its assets in respect of any of the
      obligations of any of the Obligors or any member of the Borrower Group
      under any of the Finance Documents;

	 	 	 
	1.1.77 	
      “New Order Rights” means the Old Order Rights
      which are converted into Mining Rights pursuant to the Transitional
      Arrangements contemplated by Schedule II of the MPRD Act;

	 	 	 
	1.1.78 	
      “Obligor” means:

	 	 	 
		(a) 	
      Pelawan SPV;

	 	 	 
		(b) 	
      Pelawan Investments;

	 	 	 
		(c) 	
      the Pelawan Trust;

	 	 	 
		(d) 	
      N1C Resources;

	 	 	 
		(e) 	
      N2C Resources;

	 	 	 
		(f) 	
      the Parent; and

	 	 	 
		(g) 	
      Plateau;

	 	 	 
	1.1.79 	
      "Obligor's Agent" means Plateau, appointed to act
      on behalf of each Obligor and each other member of the Plateau Group which
      is party to the Finance Documents in relation to the Finance Documents
      pursuant to Clause 3.2 (Obligor's Agent);

	 	 	 
	1.1.80 	
      "OCSF Agreement” means the operating cash flow
      shortfall loan facility agreement in the agreed form, dated on or about
      the date of this Agreement, between the Lender and Plateau pursuant to
      which the Lender has made or has agreed to make available to Plateau the
      OCSF Facility;

	 	 	 
	1.1.81 	
      "OCSF Facility" means the operating cash flow
      shortfall loan facility in an amount of up to R778 000 000 which the
      Lender has agreed to make available to Plateau on the terms and conditions
      set out in this Agreement and the OCSF Agreement;

	 	 	 
	1.1.82 	
      “Old Order Rights” means the old order rights (as
      defined in Schedule II of the MPRD Act) forming part of, respectively, the
      business of Lebowa Platinum Mines Limited and/or Opco and/or Ga-Phasa
      Platinum Mine (Proprietary) Limited (including the right to mine) as set
      out in the list attached as Schedule 4 to the HoldCo Shares of Shares
      Agreement;

	 	 	 
	1.1.83 	
      “Opco” means Bokoni Platinum Mines (Proprietary)
      Limited (Registration No. 2007/016001/07), a private company duly
      incorporated according to the company laws of South
  Africa;

16

	1.1.84 	
      “Opco Counter Indemnity Agreements”
means

	 	 	 
		(a) 	
      the counter indemnity agreement, dated on or about the
      date of this Agreement, between Opco and the Opco Security SPV pursuant to
      which Opco indemnifies and holds the Opco Security SPV harmless in respect
      of claims made against the Opco Security SPV under the First Ranking Opco
      Funding Debt Guarantee; and

	 	 	 
		(b) 	
      the counter indemnity agreement dated on or about the
      date of this Agreement between Opco and the Opco Security SPV pursuant to
      which Opco indemnifies and holds the Opco Security SPV harmless in respect
      of claims made against the Opco Security SPV under the Second Ranking Opco
      Debt Guarantee and the Third Ranking Opco Debt Guarantee;

	 	 	 
	1.1.85 	
      “Opco Funding Loan Agreement” means the written
      agreement entitled “Opco Funding Loan Agreement” concluded or to be
      concluded between Opco and Holdco on or about the Signature
Date;

	 	 	 
	1.1.86 	
      "Opco Funding Loan" means the aggregate principal
      amount of the loan outstanding from time to time under the Opco Funding
      Loan Agreement;

	 	 	 
	1.1.87 	
      "Opco Security Documents” means each of the
      documents listed as being an Opco Security Document in Part 1 of Schedule
      2 (Transaction Security Documents) together with any other document
      entered into by Opco creating or expressed to create any Security over all
      or any of its assets in respect of the obligations of any member of the
      Borrower Group under any of the Finance Documents;

	 	 	 
	1.1.88 	
      “Original Financial Statements” means:

	 	 	 
		(a) 	
      in relation to the Parent, its consolidated audited
      financial statements for its financial year ended 31 December
  2008;

	 	 	 
		(b) 	
      in relation to N1C Resources, its consolidated audited
      financial statements for its financial year ended 31 December
  2008;

	 	 	 
		(c) 	
      in relation to N2C Resources, its consolidated audited
      financial statements for its financial year ended 31 December
  2008;

	 	 	 
		(d) 	
      in relation to Plateau, its consolidated audited
      financial statements for its financial year ended 31 December
  2008;

	 	 	 
	1.1.89 	
      “Party” means a party to this Agreement and
      “Parties” shall, as the context requires, be a reference to all of
      them;

	 	 	 
	1.1.90 	
      “Pelawan Dividend Trust” means the Pelawan
      Dividend Trust, an inter vivos trust established under the laws of South
      Africa with Master’s Reference No. IT8410/2004;

	 	 	 
	1.1.91 	
      “Pelawan Group” means collectively, Pelawan SPV,
      Pelawan Investments, Pelawan Dividend Trust, Pelawan Trust, the Parent and
      Plateau and their respective direct or indirect Subsidiaries for the time
      being;

	 	 	 
	1.1.92 	
      "Pelawan Investments Guarantee Agreement" means
      the guarantee agreement dated on or about the date of this Agreement
      entered into between Pelawan Investments and RPM in terms of which Pelawan
      Investments

17

guarantees the obligations of Pelawan
SPV in respect of, inter alia, the RPM Pelawan B Preference Shares and
the Pelawan SPV Forward Sale Agreement; 

	1.1.93 	
      "Pelawan Investments Security Documents" means
      each of the documents listed as being a Pelawan Investments Security
      Document in Part 5 of Schedule 2 (Transaction Security Documents) together
      with any other document entered into by Pelawan Investments creating or
      expressed to create any Security over all or any of its assets in respect
      of any of the obligations of any of the Obligors or member of the Borrower
      Group under any of the Finance Documents; 

	  	
       

	1.1.94 	
      "Pelawan SPV Converted Shares" means, at each
      Conversion Date, the number of Pelawan SPV Ordinary Shares into which the
      RPM Pelawan SPV B1 Preference Shares automatically Convert; 

	  	
       

	1.1.95 	
      "Pelawan SPV Designated Shares: means, at each
      Conversion Date, the sum of Pelawan SPV Converted Shares and Pelawan SPV
      Subscription Shares; 

	  	
       

	1.1.96 	
      "Pelawan SPV Ordinary Shares" means the issued
      ordinary shares in the share capital of Pelawan SPV from time to time;
    

	  	
       

	1.1.97 	
      "Pelawan SPV Plateau B2 Preference Shares" means
      the 115 800 cumulative, convertible preference par value share of R1.00
      each in the share capital of Plateau, having the rights and privileges set
      out in the Pelawan Plateau B2 Preference Subscription Agreement and the
      articles of association of Plateau; 

	  	
       

	1.1.98 	
      “Pelawan SPV Plateau B2 Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between Pelawan SPV and Plateau in terms of which Pelawan
      SPV agrees to subscribe for the Pelawan Plateau B2 Preference Shares;
    

	  	
       

	1.1.99 	
      "Pelawan SPV Plateau B3 Preference Share" means
      the 111 600 cumulative, convertible preference par value share of R1.00 in
      the share capital of Plateau, having the rights and privileges set out in
      the Pelawan Plateau B3 Preference Subscription Agreement and the articles
      of association of Plateau; 

	  	
       

	1.1.100 	
      “Pelawan SPV Plateau B3 Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between Pelawan SPV and Plateau in terms of which Pelawan
      SPV agrees to subscribe for the Pelawan Plateau B3 Preference Shares;
    

	  	
       

	1.1.101 	
      "Pelawan SPV Subscription Shares" means, at each
      Conversion Date, the additional number of Pelawan SPV Ordinary Shares that
      RPM will subscribe for using all of the cash proceeds of the B1 Preference
      Dividend; 

	  	
       

	1.1.102 	
      "Pelawan Share for Share Agreement" means the
      share for share agreement dated on or about the date of this Agreement
      entered into between Pelawan Investments and Pelawan SPV; 

	  	
       

	1.1.103 	
      “Pelawan SPV Forward Sale Agreement” means the
      forward sale agreement dated on or about the date of this Agreement
      between, inter alia, RPM, Pelawan SPV and Pelawan Investments;
    

18

	1.1.104 	“Permitted Acquisition” means:
    
	  	  	
       

	  	(a) 	
       the Acquisition; 

	  	  	
       

		(b) 	
      an acquisition of shares or securities pursuant to a
      Permitted Share Issue; 

	  	  	
       

		(c) 	
      an acquisition of securities which are Cash Equivalent
      Investments so long as those Cash Equivalent Investments become subject to
      the Transaction Security Documents in form and substance satisfactory to
      the Lender as soon as is reasonably practicable; 

	  	  	
       

		(d) 	
      an acquisition by a Project Company of the undertaking or
      business of another Project Company; and 

	  	  	
       

		(e) 	
      any other acquisition (which would otherwise be
      prohibited under clause 13.8 (Acquisitions)) in respect of which the
      Lender has given its prior written consent; 

	  	  	
       

	1.1.105 	“Permitted Disposal” means any
      sale, lease, licence, transfer or other disposal which is on arm's length
      terms: 
	  	  	
       

		(a) 	
      of trading stock or cash made by any member of the Holdco
      Group in the ordinary course of trading of the disposing entity;

	  	  	
       

		(b) 	
      of assets (other than shares, businesses, immovable
      property or intellectual property) by a member of the Holdco Group in
      exchange for other assets comparable or superior as to type, value or
      quality; 

	  	  	
       

	  	(c) 	
       of obsolete or redundant vehicles, plant and
      equipment for cash; 

	  	  	
       

		(d) 	
      of Cash Equivalent Investments for cash or in exchange
      for other Cash Equivalent Investments; 

	  	  	
       

		(e) 	
      of the assets of a Project Company or the shares in a
      Project Company if the proceeds of such disposal are utilised by Holdco to
      make a loan to Opco which loan proceeds Opco shall use to prepay the Opco
      Funding Loan to Holdco, which prepayment proceeds Holdco shall use to
      proportionately prepay the RPM Funding Loan and the Plateau Funding Loan
      and which prepayment proceeds Plateau shall use to settle the Standby
      Facility and the OCSF Facility and to redeem the RPM Plateau A Preference
      Shares in accordance with clause 6 (Illegality and Mandatory Prepayments);
      

	  	  	
       

		(f) 	
      constituted by a licence of intellectual property rights
      permitted by the Senior Facility Agreement; 

	  	  	
       

	  	(g) 	
       arising as a result of any Permitted Security;
    

	  	  	
       

		(h) 	
      made pursuant to the Acquisition Agreements or the
      Acquisition Documents; 

	  	  	
       

	  	(i) 	
       made between Project Companies; 

	  	  	
       

	  	(j) 	
       approved in advance, in writing, by the Lender;
    

	  	  	
       

	1.1.106 	“Permitted Distribution”
      means: 

19

	 	(a) 	
      the payment of the special dividend that Holdco is
      required to pay to RPM within 60 (sixty) days after the Closing Date in
      accordance with, and limited to the amount set out in, clause 7 of the
      Phase 3 Implementation Agreement;

	 	 	 
	 	(b) 	
      the payment of the special dividend (if any) required to
      be paid by Plateau to the Pelawan SPV in the circumstances contemplated by
      the Pelawan SPV Plateau B Preference Share Subscription Agreement, which
      payment is funded out of Permitted Financial Indebtedness qualifying as
      such under paragraph (l) of the definition of “Permitted Financial
      Indebtedness”;

	 	 	 
	 	(c) 	
      the payment of a dividend to Holdco by Opco that is
      permitted under the Global Intercreditor Agreement;

	 	 	 
	 	(d) 	
      the payment of a dividend to Holdco or to any direct or
      indirect Subsidiary of Holdco by any other member of the Holdco Group
      (other than Opco);

	 	 	 
	 	(e) 	
      the payment of a dividend to Opco or any of its direct or
      indirect Subsidiaries;

	 	 	 
	 	(f) 	
      the payment of a dividend to Plateau and/or RPM by Holdco
      that is permitted under the Global Intercreditor Agreement;

	 	 	 
	 	(g) 	
      the payment of a dividend by Plateau to N2C Resources
      that is permitted under the Global Intercreditor Agreement; and

	 	 	 
	 	(h) 	
      the payment of a dividend by Plateau to RPM in connection
      with the Finance Documents that is permitted under the Global
      Intercreditor Agreement;

	 	 	 
	 	(i) 	
      the payment by Plateau of the redemption amount to RPM in
      respect of the RPM Plateau A Preference Shares in an amount limited to the
      lesser of ZAR10,000,000 (Ten Million Rand) and the amount representing the
      unutilised subscription proceeds under the RPM Plateau A Preference Share
      Subscription Agreement which were not disbursed or required to be
      disbursed from the Disbursement Account (as defined in the Senior
      Facilities Agreement) following the implementation of the cash flows set
      out in the Funds Flow Statement;

	1.1.107 	“Permitted Financial
      Indebtedness” means Financial Indebtedness: 
	  	  	  
		(a) 	
      arising under the Transaction Documents, in each case, as
      in force on the Closing Date and subject always to the terms of this
      Agreement and the Global Intercreditor Agreement; 

	  	  	
       

		(b) 	
      under the Holdco Shareholder Loan Agreement (as defined
      in the Senior Facility Agreement) but only until the Closing Date;
  

	  	  	
       

		(c) 	
      under the Opco Shareholder Loan Agreement (as defined in
      the Senior Facility Agreement) but only until the Closing Date; 

	  	  	
       

		(d) 	
      under the GP Loan (as defined in the Senior Facility
      Agreement), provided that the GP Loan is unconditionally and irrevocable
      discharged and repaid by Plateau by no later than the Closing Date;
  

20

	 	(e) 	
      arising under a Permitted Loan or as permitted by Clause
      13.25 (Treasury Transactions);

	 	 	 	 
	 	(f) 	
      incurred by a Project Company under any Project Finance
      Borrowings or pursuant to a Permitted Loan from Holdco;

	 	 	 	 
	 	(g) 	
      under finance or capital leases of vehicles, plant,
      equipment or computers, provided that the aggregate capital value of all
      such items so leased under outstanding leases by members of the Plateau
      Group does not exceed ZAR10,000,000 (Indexed) at any time;

	 	 	 	 
	 	(h) 	
      which was incurred by Opco or a Project Company prior to
      the Signature Date and which has been disclosed in the Original Financial
      Statements and provided the principal amount thereof is not increased and
      provided further that the maturity date of such Financial Indebtedness is
      not extended or brought forward;

	 	 	 	 
	 	(i) 	
      arising under a Permitted Guarantee or a Permitted Loan,
      or arising under an Existing Operational Guarantee;

	 	 	 	 
	 	(j) 	
      for or in respect of any letters of credit, letters of
      guarantee, bonds or similar instruments issued by a bank or financial
      institution on behalf of Opco in connection with the requirements of Opco
      in the ordinary course of its business, provided that the total aggregate
      amount of actual or contingent indebtedness thereunder does not, at any
      time exceed ZAR20,000,000 (Twenty Million Rand);

	 	 	 	 
	 	(k) 	
      for or in respect of any letters of credit, letters of
      guarantee, bonds or similar instruments issued by a bank or financial
      institution on behalf of a Project Company in connection with the
      requirements of that Project Company in the ordinary course of its
      business, provided that:

	 	 	 	 
	 	 	(i) 	the bank or financial institution issuing such instrument has no
      recourse to Opco;
	 		
	 	 	(ii)	to the extent the bank or financial institution issuing such
      instrument has any recourse to any member of the Plateau Group in relation
      to any payment under that instrument (other than the relevant Project
      Company) (the “Recourse Entity”), the recourse obligations of that
      Recourse Entity are fully cash collateralised on the basis that (x) an
      amount equivalent to the total amount of any recourse obligation is set
      aside by the Recourse Entity and (y) the amount referred to in (x) is
      funded out of the proceeds of an amount which would otherwise have been
      available to be made as a Permitted Distribution by Opco to Holdco and by
      Holdco to RPM and by Plateau to N2C Resources or an amount which
      represents the proceeds of an equity subscription by N2C Resources in
      Plateau or a shareholder loan by N2C Resources to Plateau and in the case
      of a shareholder loan, on the basis that such shareholder loan is
      subordinated and subject to the same restrictions that apply to the N2C
      Resources Shareholder Loan under the Global Intercreditor Agreement;
  and
	 			
	 	(l) 	
      for an amount required to be paid by Plateau as a special
      dividend to Pelawan SPV as determined in accordance with the provisions of
      the Pelawan SPV Plateau B Preference Share Subscription Agreement provided
      that such proceeds are used by Pelawan SPV to subscribe
  for

21

	 		
      ordinary shares in Plateau and Plateau will utilise such
      subscription proceeds to repay the Financial Indebtedness incurred by it
      in this regard;

	 	 	 
	 	(m) 	
      not permitted by the preceding paragraphs or as a
      Permitted Transaction and the outstanding principal amount of which does
      not exceed ZAR50,000,000 (Indexed) in aggregate for the Plateau Group at
      any time;

	 	 	 
	 	(n) 	
      any other Financial Indebtedness incurred with the prior
      written consent of the Lender.

	1.1.108 	“Permitted Guarantee” means:
  

	 	(a) 	
      any guarantee arising under the Finance
  Documents;

	 	 	 	 
	 	(b) 	
      any guarantee or bond given by Opco in replacement of an
      Existing Operational Guarantee and for a guarantee amount equivalent to or
      less than the existing disclosed guarantee amount of each Existing
      Operational Guarantee, provided that:

	 	 	 	 
	 		(i) 	
      Plateau shall use its reasonable commercial endeavours to
      procure insurance coverage as an alternative to providing a guarantee
      and/or collateral in connection with such guarantee;

	 	 	 	 
	 		(ii) 	
      to the extent Plateau is not able to procure insurance
      coverage, and Opco is required to provide cash collateral for such
      guarantee, there is sufficient Available Guarantee Commitment (as defined
      in the OCSF Agreement) to enable Plateau to obtain a loan under the OCSF
      Facility for the applicable Guarantee Shortfall Contribution Amount (as
      defined in the OCSF Agreement);

	 	 	 	 
	 	(c) 	
      any other guarantee or bond given by a member of the
      Plateau Group in favour of a third party for the obligations of Opco in
      connection with the requirements of Opco in the ordinary course of its
      business, provided that the total aggregate amount of actual or contingent
      indebtedness thereunder does not at any time exceed ZAR20,000,000
      (Indexed);

	 	 	 	 
	 	(d) 	
      any guarantee or bond given by a member of the Plateau
      Group, other than Opco, in favour of a third party for the obligations of
      a Project Company in connection with the requirements of that Project
      Company in the ordinary course of its business, provided that if such
      instrument is issued by a member of the Plateau Group, the relevant member
      of the Plateau Group giving that guarantee or bond (the “Guarantee
      Entity”) has fully cash collateralised its exposure under the relevant
      instrument on the basis that (x) an amount equivalent to the total amount
      of its exposure under the relevant instrument is set aside by the
      Guarantee Entity and (y) the amount referred to in (x) is funded out of
      the proceeds of an amount which would otherwise have been available to be
      made as a Permitted Distribution by Opco to Holdco and by Holdco to
      Plateau and RPM or an amount which represents the proceeds of an equity
      subscription by N2C Resources in Plateau or a shareholder loan by N2C
      Resources to Plateau and in the case of a shareholder loan, on the basis
      that such shareholder loan is subordinated and subject to the same
      restrictions that apply to the N2C Resources shareholder loans under the
      Global Intercreditor Agreement; and

22

	 	(e) 	
      a guarantee given by any member of the Plateau Group with
      the prior written consent of the Lender;

	1.1.109 	“Permitted Loan” means:

	 	(a) 	
      any trade credit extended by any member of the Holdco
      Group to its customers on normal commercial terms and in the ordinary
      course of its trading activities;

	 	 	 
	 	(b) 	
      Financial Indebtedness which is referred to in the
      definition of, or otherwise constitutes, Permitted Financial Indebtedness
      (except under paragraph (e) of that definition);

	 	 	 
	 	(c) 	
      any loan made under the terms of the Finance
      Documents;

	 	 	 
	 	(d) 	
      any loan made under the terms of the Opco Shareholder
      Loan Agreement (as defined in the Senior Facility Agreement) but only
      until the Closing Date;

	 	 	 
	 	(e) 	
      any loan made between Project Companies or a loan made by
      Holdco to a Project Company, but only to the extent that loan is made by
      Holdco out of the proceeds received by Holdco pursuant to a Permitted
      Disposal of the assets of a Project Company or the shares in a Project
      Company;

	 	 	 
	 	(f) 	
      a loan made by a member of the Holdco Group to an
      employee or director of any member of the Holdco Group or finance provided
      by a member of the Holdco Group in connection with a motor vehicle scheme
      if the amount of that loan and financing when aggregated with the amount
      of all loans to employees and directors by members of the Holdco Group and
      finance provided in connection with motor vehicle schemes does not exceed
      ZAR3,000,000 (Indexed) (or its equivalent) at any time;

	 	 	 
	 	(g) 	
      a loan made by Holdco to Opco out of the proceeds
      received by Holdco pursuant to a Permitted Disposal of the assets of a
      Project Company or the shares in a Project Company which loan proceeds
      Opco shall use to prepay the Opco Funding Loan to Holdco, which prepayment
      proceeds Holdco shall use to proportionately prepay the RPM Funding Loan
      and the Plateau Funding Loan and which prepayment proceeds Plateau shall
      use to settle the Standby Facility and the OCSF Facility and to redeem the
      RPM Plateau A Preference Shares in accordance with clause 6 (Illegality
      and Mandatory Prepayments).

	1.1.110 	“Permitted Payment” means a
      payment which is permitted under the Global Intercreditor Agreement;

	  	 
	1.1.111 	“Permitted Security” means:
  

	 	(a) 	
      any lien arising by operation of law and in the ordinary
      course of trading and not as a result of any default or omission by any
      member of the Plateau Group;

	 	 	 
	 	(b) 	
      any Security arising under any retention of title, hire
      purchase or conditional sale arrangement or arrangements having similar
      effect in respect of goods supplied to a member of the Plateau Group in
      the ordinary course of trading and on the supplier's standard or usual
      terms

23

	 		
      and not arising as a result of any default or omission by
      any member of the Plateau Group;

	 	 	 	 
	 	(c) 	
      any Security or Quasi-Security granted in respect of
      Project Finance Borrowings over either:

	 	 	 	 
	 		(i) 	
      the assets of a Project Company; or

	 	 	 	 
	 		(ii) 	
      the shares in a Project Company;

	 	 	 	 
	 	(d) 	
      any Quasi-Security arising as a result of a disposal
      which is a Permitted Disposal;

	 	 	 	 
	 	(e) 	
      any Security securing indebtedness the outstanding
      principal amount of which (when aggregated with the outstanding principal
      amount of any other indebtedness which has the benefit of Security given
      by any member of the Plateau Group other than any permitted under clauses
      (a) to (d) above) does not exceed ZAR50,000,000 (Indexed) and provided
      such Security is not given over any assets which are expressed to be
      subject to any Transaction Security Document (other than a general
      notarial bond);

	 	 	 	 
	 	(f) 	
      any Security or Quasi-Security arising as a consequence
      of any finance or capital lease permitted pursuant to paragraph (g) of the
      definition of “Permitted Financial Indebtedness;

	 	 	 	 
	 	(g) 	
      any Security over a bank account opened by Plateau,
      Holdco and/or Opco for the sole purpose of depositing provisions for the
      redemption of the RPM Preference Shares, but subject to such provisions
      being permitted under the Global Intercreditor Agreement and in particular
      the Borrower Cash Waterfall, the Holdco Cash Waterfall and the Opco Cash
      Waterfall (each as defined in the Global Intercreditor
  Agreement);

	 	 	 	 
	 	(h) 	
      any Security created with the prior written approval of
      the Lender;

	1.1.112 	“Permitted Share Issue” means
      an issue of: 
	  	  	  
		(a) 	
      ordinary shares by any Obligor paid for in full in cash
      upon issue and which by their terms are not redeemable and where (i) such
      shares are of the same class and on the same terms as those initially
      issued by that Obligor and (ii) such issue does not lead to a Change of
      Control; 

	  	  	
       

		(b) 	
      shares by a member of the Anooraq Group which is a
      subsidiary to its immediate Holding Company where (if the existing shares
      of the Subsidiary are the subject of the Transaction Security) the newly-
      issued shares also become subject to the Transaction Security on the same
      terms; or 

	  	  	
       

		(c) 	
      preference shares and ordinary shares by Opco to Holdco,
      preference shares and ordinary shares by Holdco to RPM and Plateau,
      preference shares by Plateau to RPM and convertible preference shares by
      Plateau to Pelawan SPV (including the conversion of such preference shares
      into ordinary shares pursuant to the Finance Documents) in each case only
      to the extent the issue of such shares, preference shares or convertible
      preference shares is expressly provided for in the Transaction Documents;
      

24

		(d) 	
      shares by the Parent to the participants in any stock
      option plan of the Parent in terms of such stock option plan and provided
      it does not give rise to a Change of Control; 

	  	  	
       

	1.1.113 	“Permitted Transaction” means:
    
	  	  	
       

		(a) 	
      any Disposal required, Financial Indebtedness incurred,
      guarantee, indemnity or Security or Quasi-Security given, or other
      transaction arising, under the Transaction Documents, in each case, as
      contemplated by the Transaction Documents in the form they are on the
      Closing Date and subject always to the terms of this Agreement and the
      Global Intercreditor Agreement; and 

	  	  	
       

		(b) 	
      any payments or other transactions set out in the
      Structure Memorandum (as defined in the Senior Facility Agreement);
  

	1.1.114 	
      “Phase 3 Implementation Agreement” means the Phase
      3 implementation agreement, dated 28 March 2008, between RPM, Plateau and
      Holdco which governs the implementation of the agreements giving effect to
      the Acquisition, including the Acquisition Agreements; 

	  	
       

	1.1.115 	
      “Plateau Counter Indemnity Agreement” means the
      counter indemnity agreement, dated on or about the date of this Agreement,
      between Plateau and the Plateau Security SPV pursuant to which Plateau
      indemnifies and holds the Plateau Security SPV harmless in respect of
      claims made against the Plateau Security SPV under, inter alia, the
      Second Ranking Plateau Debt Guarantee and the Third Ranking Plateau Debt
      Guarantee; 

	  	
       

	1.1.116 	
      “Plateau Forward Sale Agreement” means the forward
      sale agreement dated on or about the date of this Agreement between,
      inter alia, Plateau, the Parent and Pelawan SPV; 

	  	
       

	1.1.117 	
      "Plateau Funding Loan" means the aggregate
      principal amount of the loan outstanding from time to time under the
      Plateau Finding Loan Agreement; 

	  	
       

	1.1.118 	
      "Plateau Funding Loan Agreement” means the written
      agreement entitled “Plateau Funding Loan Agreement” concluded or to
      be concluded between Plateau and Holdco on or about the Signature Date;
      

	  	
       

	1.1.119 	
      “Plateau Group” means N1C Resources, N2C
      Resources, Plateau, Holdco, Opco and each of their respective direct of
      indirect Subsidiaries for the time being (and which will include with
      effect from the Closing Date the Holdco Group); 

	  	
       

	1.1.120 	
      “Plateau Holdco A Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between Plateau and Holdco in terms of which Plateau agrees
      to subscribe for the Plateau Holdco A Preference Shares; 

	  	
       

	1.1.121 	
      "Plateau Holdco A Preference Shares" means 510
      cumulative, redeemable preference par value shares of R1,00 each in the
      share capital of Holdco to be subscribed for by Plateau having the rights
      and privileges set out in the Plateau Holdco A Preference Share
      Subscription Agreement and the rights and privileges embodied or to
      embodied in the articles of association of Holdco;

25

	1.1.122 	
      "Plateau Ordinary Shares" means the issued
      ordinary shares in the share capital of Plateau from time to time;
  

	  	
       

	1.1.123 	
      “Plateau Security Documents” means each of the
      documents listed as being a Plateau Security Document in Part 3 of
      Schedule 2 (Transaction Security Documents) together with any other
      document entered into by Plateau creating or expressed to create any
      Security over all or any of its assets in respect of any of the
      obligations of any of the Obligors or any member of the Borrower Group
      under any of the Finance Documents; 

	  	
       

	1.1.124 	
      "Plateau 2 Converted Shares" means, at each
      Conversion Date, the number of Plateau Ordinary Shares into which the B2
      Preference Shares automatically Convert; 

	  	
       

	1.1.125 	
      "Plateau 2 Shares" means, at each Conversion Date,
      the sum of the Plateau 2 Converted Shares and the Plateau 2 Subscription
      Shares; 

	  	
       

	1.1.126 	
      "Plateau 2 Subscription Shares" means, at each
      Conversion Date, the additional number of Plateau Ordinary Shares that
      Pelawan SPV will subscribe for using all of the cash proceeds of the B2
      Preference Dividend; 

	  	
       

	1.1.127 	
      "Plateau 3 Converted Shares" means, at each
      Conversion Date, the number of Plateau Ordinary Shares into which the B3
      Preference Shares automatically Convert; 

	  	
       

	1.1.128 	
      "Plateau 3 Shares" means, at each Conversion Date,
      the sum of the Plateau 3 Converted Shares and the Plateau 3 Subscription
      Shares; 

	  	
       

	1.1.129 	
      "Plateau 3 Subscription Shares" means, at each
      Conversion Date, the additional number of Plateau Ordinary Shares that
      Pelawan SPV will subscribe for using all of the cash proceeds of the B3
      Preference Dividend; 

	  	
       

	1.1.130 	
      “Project Company” means Boikgantsho Platinum Mine
      (Proprietary) Limited, Ga-Phasa Platinum Mine (Proprietary) Limited, or
      Kwanda Platinum Mine (Proprietary) Limited; 

	  	
       

	1.1.131 	
      “Project Finance Borrowings” means:
  

	 	(a) 	
      any indebtedness to finance (or re-finance) a Project
      comprised of the ownership, development, construction and/or operation of
      assets of the Project Company which is incurred by a Project Company whose
      principal business is that Project and in respect of which the person or
      persons making that indebtedness available to that Project Company has no
      recourse whatsoever to any member of the Borrower Group (other than to
      that Project Company) in respect of that indebtedness whether directly or
      indirectly or by way of a guarantee (financial or completion guarantee or
      otherwise) from any member of the Borrower Group creating an obligation
      (whether actual or contingent) for Financial Indebtedness in respect of
      the Project Finance Borrowings other than to the extent arising under
      paragraph (d) of the definition of “Permitted Guarantee” or (c) of
      the definition of “Permitted Security”; or

	 	 	 
	 	(b) 	
      any indebtedness the terms and conditions of which have
      been approved by the Lender and which the Lender has agreed in writing to
      treat as Project Finance Borrowings for the purposes of this
    Agreement;

26

	1.1.132 	
      “Quasi-Security” has the meaning given to that
      term in Clause 13.14 (Negative pledge); 

	  	
      

	1.1.133 	
      "R", "Rand" or "ZAR" means South
      African Rand, the lawful currency of South Africa; 

	  	
      

	1.1.134 	
      “Relevant Jurisdiction” means, in relation to an
      Obligor or any other member of the Anooraq Group:

	 	(a) 	
      its jurisdiction of incorporation;

	 	 	 
	 	(b) 	
      any jurisdiction where any asset subject to or intended
      to be subject to the Transaction Security to be created by it is
      situated;

	 	 	 
	 	(c) 	
      any jurisdiction where it conducts its business;
    and

the jurisdiction whose laws govern the
perfection of any of the Transaction Security Documents entered into by it; 

	1.1.135 	
      “Repayment Date" means 31 July and 31 January in
      each calendar year and  the Interim Repayment Date and the Final
      Repayment Date; 

	  	
      

	1.1.136 	
      Repeating Representations” means each of the
      representations set out in Clause 11.2 (Status) to Clause 11.7
      (Governing law and enforcement), Clause 11.11 (No default), Clause
      11.12.2 (No misleading information), Clause 11.13 (Original
      Financial Statements), Clause 11.18 (Ranking) to 11.20 (Legal and
      beneficial ownership); 

	  	
      

	1.1.137 	
      "Reversionary Holdco Cession and Pledge" means a
      second ranking reversionary cession in securitatem debiti dated on
      or about the date of this Agreement given by Holdco in favour of RPM for
      the obligations of Holdco under the Holdco Guarantee; 

	  	
      

	1.1.138 	
      "RPM Funding Loan" means the aggregate principal
      amount of the loan outstanding from time to time under the RPM Funding
      Loan Agreement; 

	  	
      

	1.1.139 	
      "RPM Funding Loan Agreement” means the written
      agreement entitled “RPM Funding Loan Agreement” concluded or to be
      concluded between RPM and Holdco on or about the Signature Date;

	  	
      

	1.1.140 	
      “RPM Holdco A Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between RPM and Holdco in terms of which RPM agrees to
      subscribe for the RPM Holdco A Preference Shares; 

	  	
      

	1.1.141 	
      "RPM Holdco A Preference Shares” means 490
      cumulative, redeemable preference par value shares of R1,00 each in the
      share capital of Holdco to be subscribed for by RPM, having the rights and
      privileges set out in the RPM Holdco A Preference Share Subscription
      Agreement and the rights and privileges embodied or to be embodied in the
      articles of association of Holdco; 

	  	
      

	1.1.142 	
      "RPM Pelawan SPV B1 Preference Shares" means 115
      800 cumulative convertible preference par value shares of R1.00 in the
      share capital of the Pelawan SPV, having the rights and privileges set out
      in the RPM Pelawan SPV B1 Preference Share Subscription Agreement and the
      rights and 

27

		
      privileges embodied or to be embodied in the articles of
      association of the Pelawan SPV; 

	  	
       

	1.1.143 	
      "RPM Pelawan SPV B1 Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between RPM and Pelawan SPV in terms of which RPM agrees to
      subscribe for the RPM Pelawan SPV B1 Preference Shares; 

	  	
       

	1.1.144 	
      "RPM Plateau A Preference Shares" means 1000
      cumulative, redeemable preference par value shares of R1.00 in the share
      capital of Plateau to subscribed for by RPM, having the rights and
      privileges set out in the RPM Plateau A Preference Share Subscription
      Agreement and the rights and privileges embodied or to be embodied in the
      articles of association of Plateau; 

	  	
       

	1.1.145 	
      "RPM Plateau A Preference Share Subscription
      Agreement” means the subscription agreement dated on or about the
      Signature Date between RPM and Plateau in terms of which RPM agrees to
      subscribe for the RPM Plateau A Preference Shares;; 

	  	
       

	1.1.146 	
      "RPM Preference Shares" means the RPM Holdco A
      Preference Shares, the RPM Plateau A Preference Shares and the RPM Pelawan
      B Preference Shares which RPM agrees to subscribe for pursuant to the
      Finance Documents; 

	  	  
	1.1.147 	"RPM Relevant Agreements" means:
  

	 	(a) 	
      the Standby Facility Agreement;

	 	 	 
	 	(b) 	
      the OCSF Agreement;

	 	 	 
	 	(c) 	
      the RPM Plateau A Preference Share Subscription
      Agreement; and

	 	 	 
	 	(d) 	
      the RPM Pelawan B Preference Share Subscription
      Agreement;

	 	 	 
	 	(e) 	
      the Pelawan SPV Forward Sale Agreement;

	 	 	 
	 	(f) 	
      the Pelawan Share for Share Agreement;

	 	 	 
	 	(g) 	
      the Conversion Implementation
Agreement;

	1.1.148 	
      "Second Ranking Plateau Debt Guarantee" means the
      debt guarantee entered into on or about the date of this Agreement issued
      by the Plateau Security SPV in favour of the Lender for the obligations of
      the Obligor owed to the Finance Parties under the Standby Facility
      Agreement; 

	  	
       

	1.1.149 	
      “Security” means (a) a mortgage, assignation,
      charge, pledge, lien, security assignment, hypothecation, cession
      conferring security, Encumbrance and Restriction or other security
      interest securing any obligation of any person or any other agreement or
      arrangement having a similar effect or (b) any arrangement under which
      money or claims to, or for the benefit of, a bank or other account may be
      applied, set off or made subject to a combination of accounts so as to
      effect discharge of any sum owed or payable to any person; or (c) any
      other type of preferential agreement or arrangement (including any title
      transfer and retention arrangement), the effect of which is the creation
      of a security interest; 

28

	1.1.150 	
      “Security Agent” means Standard Chartered Bank
      acting in its capacity as security agent for the Secured Parties or such
      other security agent for the Secured Parties as shall be appointed
      pursuant to the Global Intercreditor Agreement; 

	  	
       
	
       

	1.1.151 	
      “Security Provider” means any provider of
      Transaction Security; 

	  	
       
	
       

	1.1.152 	
      "Second Ranking Opco Debt Guarantee" means the
      debt guarantee in the agreed form, dated on or about the date of this
      Agreement, issued by the Opco Security SPV in favour of RPM for the
      obligations of Holdco in connection with the RPM Holdco A Preference
      Shares; 

	  	
       
	
       

	1.1.153 	
      “Security SPV Documents” means collectively:
    

	  	
       
	
       

		
      (a) 
	
      the Constitutional Documents of each of the Plateau
      Security SPV and the Opco Security SPV; 

	  	
       
	
       

		
      (b) 
	
      the debt guarantor management agreement dated on or about
      the date of this Agreement between GMG Trust Company (SA) (Proprietary)
      Ltd (previously Sentinel Corporate Fiduciary Services), the Senior Agent,
      the Security Agent, the Plateau Security SPV and the Opco Security SPV
      pursuant to which GMG Trust Company (SA) (Proprietary) Ltd is appointed to
      administer the Plateau Security SPV and the Opco Security SPV; and
  

	  	
       
	
       

		
      (c) 
	
      the trust deed of the Security SPV Owner Trust dated on
      or about 11 June 2009, between the Senior Agent as donor and GMG as first
      trustee; 

	  	
       
	
       

	1.1.154 	
      “Security SPV Owner Trust” means the Lebowa
      Acquisition Security SPV Owner Trust, an inter vivos trust
      established under the laws of South Africa; 

	  	
       
	
       

	1.1.155 	
      “Senior Agent” has the meaning given to it in the
      Senior Facilities Agreement; 

	  	
       
	
       

	1.1.156 	
      “Senior Facilities Agreement” means the written
      agreement entitled “Senior Term Loan Facilities Agreement” concluded or to
      be concluded between inter alia Plateau and Standard Chartered Bank (as
      arranger, original lender, Senior Agent and Security Agent) on or about
      the Signature Date; 

	  	
       
	
       

	1.1.157 	
      "Share Adjustment Event" means, in relation to the
      Anooraq Common Shares, any: 

	  	
       
	
       

		
      (a) 
	
      subdivision, redivision or change of the outstanding
      Anooraq Common Shares into a greater number of Anooraq Common Shares;
    

	  	
       
	
       

		
      (b) 
	
      consolidation, combination or reduction of the
      outstanding Anooraq Common Shares into a lesser number of Anooraq Common
      Shares; 

	  	
       
	
       

		
      (c) 
	
      any reclassification of or amendment to the outstanding
      Anooraq Common Shares, any change of the Anooraq Common Shares into other
      shares or any other reorganization of the Parent (other than as described
      in paragraphs (a) and (b) above); or 

	  	
       
	
       

		
      (d) 
	
      any consolidation, amalgamation, arrangement, merger or
      other form of business combination of the Parent with or into any other
      corporation resulting in any reclassification of the outstanding Anooraq
      Common 

29

			
      Shares, any change of the Anooraq Common Shares into
      other shares or any other reorganization of the Parent; 

	  	
       
	
       

	1.1.158 	
      “Signature Date” means the date of the signature
      of the Party last signing this Agreement; 

	  	
       
	
       

	1.1.159 	
      “South Africa” means the Republic of South Africa
      as constituted from time to time; 

	  	
       
	
       

	1.1.160 	
      “Standard Bank” means The Standard Bank of South
      Africa Limited (Registration No. 1962/000738/06), a public company and
      registered bank incorporated according to the company and banking laws of
      South Africa; 

	  	
       
	
       

	1.1.161 	
      “Standard Chartered Bank” means Standard Chartered
      Bank, Johannesburg Branch (Registration No: 1962/000738/06), a company
      incorporated in England with limited liability by Royal Charter 1853,
      under reference ZC18.18 and registered as an external company in South
      Africa; 

	  	
       
	
       

	1.1.162 	
      "Standby Facility" means the standby facility
      which the Lender has agreed to make available to Plateau on the terms and
      conditions set out in this Agreement and the Standby Facility Agreement;
      

	  	
       
	
       

	1.1.163 	
      "Standby Facility Agreement” means the standby
      facility agreement in the agreed form, dated on or about the date of this
      Agreement, between the Lender and Plateau pursuant to which the Lender has
      made or has agreed to make available to Plateau the Standby Facility in
      accordance with clause 16 of the Holdco Shareholders Agreement; 

	  	
       
	
       

	1.1.164 	
      “Tax” means any tax (including, for the avoidance
      of doubt, value added tax), levy, impost, duty or other charge or
      withholding of a similar nature (including any penalty or interest payable
      in connection with any failure to pay or any delay in paying any of the
      same); 

	  	
       
	
       

	1.1.165 	
      "Third Ranking Opco Debt Guarantee" means the debt
      guarantee in the agreed form, dated on or about the date of this
      Agreement, issued by the Opco Security SPV in favour of RPM for the
      obligations of Plateau in connection with the RPM Plateau A Preference
      Shares; 

	  	
       
	
       

	1.1.166 	
      “Third Ranking Plateau Debt Guarantee” means the
      debt guarantee in the agreed form, dated on or about the date of this
      Agreement, issued by the Plateau Security SPV in favour of the Lender for
      the obligations of Plateau owed to the Lender under the OCSF Agreement;
      

	  	
       
	
       

	1.1.167 	
      “Transaction Accounts” means collectively, the
      Disbursement Account, the Borrower Proceeds Account, the Borrower Business
      Account, the Holdco Business Account and the Opco Business Account (each
      as defined in the Senior Facility Agreement); 

	  	
       
	
       

	1.1.168 	
      “Transaction Documents” means collectively:
  

	  	
       
	
       

	  	
      (a) 
	
      the Finance Documents; 

	  	
       
	
       

	  	
      (b) 
	
      the Holdco Shareholders Agreement; 

	  	
       
	
       

	  	
      (c) 
	
      the Transaction Documents as defined in the Senior
      Facility 

	  	
       
	
      Agreements; 

30

	 	(d) 	
      any other document designated in writing as a
      “Transaction Document” by the Lender and
Plateau;

	1.1.169 	"Transaction Security" means the
      Security created or expressed to be created in favour of the Opco Security
      SPV (or, where applicable in relation to the New Order Rights, the
      Security Agent, as principal creditor pursuant to the Global Intercreditor
      Agreement), the Plateau Security SPV or the Lender pursuant to the
      Transaction Security Documents; 
	  	  
	1.1.170 	“Transaction Security Documents” means:
    

	 	(a) 	
      the Opco Security Documents;

	 	 	 
	 	(b) 	
      the Holdco Security Documents;

	 	 	 
	 	(c) 	
      the Plateau Security Documents,

	 	 	 
	 	(d) 	
      the N2C Resources Security Documents; and

	 	 	 
	 	(e) 	
      the Pelawan Investments Security
  Documents;

together with any other document
entered into by any Obligor creating or expressed to create any Security over
all or any part of its assets in respect of the obligations of any of the
Obligors under any of the Finance Documents; 

	1.1.171 	“Treasury Transactions” means any
      derivative transaction entered into in connection with protection against
      or benefit from fluctuation in any rate or price; 

	1.2 	
      Any reference in this Agreement
to:

	1.2.1 	
      an “affiliate” means, in relation to any person, a
      subsidiary of that person or a holding company of that person or any other
      subsidiary of that holding company;

	 	 
	1.2.2 	
      “arm’s length” means terms that are fair and
      reasonable to the counterparty of a transaction and no more or less
      favourable to the other party to the relevant transaction as could
      reasonably be expected to be obtained in a comparable arm’s length
      transaction with a person that is not the ultimate holding company of such
      counterparty or an entity of which such counterparty or its ultimate
      holding company has direct or indirect control, or owns directly or
      indirectly more than 20% (twenty percent) of the share capital or similar
      rights of ownership;

	 	 
	1.2.3 	
      “assets” includes properties, revenues and rights
      of every description;

	 	 
	1.2.4 	
      “calendar month” shall be construed as a named
      month, i.e. January, February, March, April, May, June, July, August,
      September, October, November and December;

	 	 
	1.2.5 	
      a “clause” shall, subject to any contrary
      indication, be construed as a reference to a clause hereof;

	 	 
	1.2.6 	
      “guarantee” means (other than in Clause 10
      (Guarantee and Indemnity)) any guarantee, letter of credit, bond,
      indemnity or similar assurance against loss, or any obligation, direct or
      indirect, actual or contingent, to purchase or assume any indebtedness of
      any person or to make an investment in or loan

31

		
      to any person or to purchase assets of any person where,
      in each case, such obligation is assumed in order to maintain or assist
      the ability of such person to meet its indebtedness;

	 	 
	1.2.7 	
      a “Holding Company” shall be construed in
      accordance with the Companies Act, No. 61 of 1973 (as amended);

	 	 
	1.2.8 	
      “indebtedness” includes any obligation (whether
      incurred as principal or as surety) for the payment or repayment of money,
      whether present or future, actual or contingent;

	 	 
	1.2.9 	
      “law” shall be construed as any law (including
      common or customary law) or statute, constitution, decree, judgment,
      treaty, regulation, directive, bye-law, order or any other legislative
      measure of any government, supranational, local government, statutory or
      regulatory body or court;

	 	 
	1.2.10 	
      “month” means unless the context otherwise
      requires, a period starting on one day in a calendar month and ending on
      the numerically corresponding day in the next succeeding calendar month
      except that, where any such period would otherwise end on a day which is
      not a Business Day it shall end on the immediately preceding Business Day;
      provided that if a period starts on the last Business Day of a calendar
      month or if there is no numerically corresponding day in the month in
      which that period ends, that period shall end on the last Business Day in
      that later month (and references to “months” shall be construed
      accordingly);

	 	 
	1.2.11 	
      “naca” means nominal annual compounded annually in
      arrears;

	 	 
	1.2.12 	
      “nacq” means nominal annual compounded quarterly
      in arrears;

	 	 
	1.2.13 	
      a “person” shall be construed as a reference to
      any person, firm, company, trust, corporation, government, state or agency
      of a state or any association or partnership (whether or not having
      separate legal personality) of two or more of the foregoing;

	 	 
	1.2.14 	
      a “regulation” includes any regulation, rule,
      official directive, request or guideline (having the force of law) of any
      governmental, intergovernmental or supranational body, agency, department
      or regulatory, self-regulatory or other authority or
  organisation;

	 	 
	1.2.15 	
      “repay” (or any derivative form thereof) shall,
      subject to any contrary indication, be construed to include
      “prepay” or, as the case may be, the corresponding derivate form
      thereof;

	 	 
	1.2.16 	
      a “Schedule” or “Annexure” shall, subject
      to any contrary indication, be construed as a reference to a schedule or
      annexure hereof;

	 	 
	1.2.17 	
      a “Subsidiary” shall be construed in accordance
      with the Companies Act, No. 61 of 1973 (as amended);

	 	 
	1.2.18 	
      “tax” shall be construed so as to include any tax,
      levy, impost or other charge of a similar nature (including, without
      limitation, any penalty or interest payable in connection with any failure
      to pay or delay in paying any of the same)

	 	 
	1.2.19 	
      a Default is “continuing” if it has not been
      remedied in accordance with the provisions of this Agreement or
    waived.

32

	1.3 	
      Unless inconsistent with the context or save where the
      contrary is expressly indicated:

	1.3.1 	
      if any provision in a definition is a substantive
      provision conferring rights or imposing obligations on any Party,
      notwithstanding that it appears only in this interpretation clause, effect
      shall be given to it as if it were a substantive provision of this
      Agreement;

	 	 
	1.3.2 	
      when any number of days is prescribed in this Agreement,
      same shall be reckoned exclusively of the first and inclusively of the
      last day unless the last day falls on a day which is not a Business Day,
      in which case the last day shall be the next succeeding Business
    Day;

	 	 
	1.3.3 	
      in the event that the day for payment of any amount due
      in terms of this Agreement should fall on a day which is not a Business
      Day, the relevant day for payment shall be the previous Business
    Day;

	 	 
	1.3.4 	
      in the event that the day for performance of any
      obligation to be performed in terms of this Agreement (other than a
      payment obligation) should fall on a day which is not a Business Day, the
      relevant day for performance shall be the next succeeding Business
    Day;

	 	 
	1.3.5 	
      any reference in this Agreement to an enactment is to
      that enactment as at the Signature Date and as amended or re-enacted from
      time to time;

	 	 
	1.3.6 	
      any reference in this Agreement to this Agreement or any
      other agreement or document shall be construed as a reference to this
      Agreement or, as the case may be, such other agreement or document as same
      may have been, or may from time to time be, amended, varied, novated or
      supplemented;

	 	 
	1.3.7 	
      save as expressly set out in this Agreement, no provision
      of this Agreement constitutes a stipulation for the benefit of any person
      who is not a Party to this Agreement;

	1.3.8 	
      references to day/s or year/s shall be construed as
      Gregorian calendar day/s or year/s;

	 	 
	1.3.9 	
      a reference to a Party includes that Party’s
      successors-in-title and permitted assigns;

	 	 
	1.3.10 	
      a time of day shall be construed as a reference to
      Johannesburg time.

	1.4 	
      Unless inconsistent with the context, an expression which
      denotes:

	1.4.1 	
      any one gender includes the other genders;

	 	 
	1.4.2 	
      a natural person includes an artificial person and vice
      versa; and

	 	 
	1.4.3 	
      the singular includes the plural and vice
  versa.

	1.5 	
      The schedules to this Agreement form an integral part
      hereof and words and expressions defined in this Agreement shall bear,
      unless the context otherwise requires, the same meaning in such schedules.
      To the extent that there is any conflict between the schedules to this
      Agreement and the provisions of this Agreement, the provisions of this
      Agreement shall prevail.

33

	1.6 	
      Where any term is defined within the context of any
      particular clause in this Agreement, the term so defined, unless it is
      clear from the clause in question that the term so defined has limited
      application to the relevant clause, shall bear the same meaning as
      ascribed to it for all purposes in terms of this Agreement,
      notwithstanding that that term has not been defined in this interpretation
      clause.

	 	 
	1.7 	
      The rule of construction that, in the event of ambiguity,
      the contract shall be interpreted against the Party responsible for the
      drafting thereof, shall not apply in the interpretation of this
      Agreement.

	 	 
	1.8 	
      The expiration or termination of this Agreement shall not
      affect such of the provisions of this Agreement as expressly provide that
      they will operate after any such expiration or termination or which of
      necessity must continue to have effect after such expiration or
      termination, notwithstanding that the clauses themselves do not expressly
      provide for this.

	 	 
	1.9 	
      This Agreement shall be binding on and enforceable by the
      estates, heirs, executors, administrators, trustees, permitted assigns or
      liquidators of the Parties as fully and effectually as if they had signed
      this Agreement in the first instance and reference to any Party shall be
      deemed to include such Party’s estate, heirs, executors, administrators,
      trustees, permitted assigns or liquidators, as the case may be.

	 	 
	1.10 	
      The use of any expression in this Agreement covering a
      process available under South African law such as winding-up (without
      limitation eiusdem generis) shall, if any of the Parties to this
      Agreement is subject to the law of any other jurisdiction, be construed as
      including any equivalent or analogous proceedings under the law of such
      other jurisdiction.

	 	 
	1.11 	
      Where figures are referred to in numerals and in words,
      if there is any conflict between the two, the words shall
  prevail.

	 	 
	1.12 	
      The headings to the clauses and schedules of this
      Agreement are inserted for reference purposes only and shall in no way
      govern or affect the interpretation of nor modify nor amplify the terms of
      this Agreement nor any clause or schedule hereof.

	 	 
	2. INTRODUCTION AND APPLICATION OF THIS
      AGREEMENT
	 	 
	2.1 	
      The Lender has agreed to provide the facilities and
      subscribe for the Preference Shares set out in Clause 3 (RPM
      Facilities).

	 	 
	2.2 	
      The Parties have agreed to enter into this Agreement to
      set out certain common definitions and provisions which are applicable to
      the RPM Relevant Agreements.

	 	 
	2.3 	
      Each RPM Relevant Agreement will be subject to the terms
      and conditions of that RPM Relevant Agreement and to the terms and
      conditions of this Agreement. The terms and conditions of this Agreement
      shall be incorporated by reference into each respective RPM Relevant
      Agreement.

	 	 
	2.4 	
      In the event of a conflict between the provisions of this
      Agreement and any Finance Document, the provisions of the Finance Document
      shall prevail.

34

	3. THE RPM FACILITIES AND PREFERENCE SHARE
      SUBSCRIPTIONS
	 	 	 
	3.1 	
      The facilities and preference share
      subscriptions

	 	 	 
		
      Subject to the terms of this Agreement the Lender agrees
      to:

	 	 	 
	3.1.1 	
      grant the Standby Facility to Plateau;

	 	 
	3.1.2 	
      grant the OCSF Facility to Plateau;

	 	 
	3.1.3 	
      subscribe for the RPM Holdco A Preference Shares pursuant
      to the RPM Holdco A Preference Share Subscription Agreement;

	 	 
	3.1.4 	
      subscribe for the RPM Plateau A Preference Shares
      pursuant to the RPM Plateau A Preference Share Subscription
    Agreement;

	 	 
	3.1.5 	
      subscribe for the RPM Pelawan SPV B1 Preference Shares
      pursuant to the RPM Pelawan SPV B1 Preference Share Subscription
      Agreement.

	 	 	 
	3.2 	
      Obligors' Agent

	 	 	 
	3.2.1 	
      Each Obligor (other than Plateau) that is a party to this
      Agreement appoints Plateau to act on its behalf as its agent in relation
      to the Finance Documents and irrevocably
authorises:

	 	(a) 	
      Plateau on its behalf to supply all information
      concerning itself contemplated by this Agreement to the Finance Parties
      and to give all notices and instructions, to make such agreements and to
      effect the relevant amendments, supplements and variations capable of
      being given, made or effected by any Obligor notwithstanding that they may
      affect the Obligor, without further reference to or the consent of that
      Obligor, provided that notwithstanding anything to the contrary contained
      in this Agreement or any other Finance Document, Plateau is not authorised
      to act on behalf of any Obligor without first obtaining the further
      written consent of such Obligor in relation to any matter (including
      without limitation the giving of notices and instructions and the making
      of agreements on behalf of such Obligor) which will or might reasonably be
      expected to increase the liability or obligations (whether actual or
      contingent) of the Obligor under the Finance Documents or otherwise
      materially prejudice the position of that Obligor under the Finance
      Documents; and

	 	 	 
	 	(b) 	
      each Finance Party to give any notice, demand or other
      communication to that Obligor pursuant to the Finance Documents to
      Plateau,

and in each case the Obligor shall be
bound as though the Obligor itself had given the notices and instructions or
executed or made the agreements or effected the amendments, supplements or
variations, or received the relevant notice, demand or other communication. 

	3.2.2 	
      Every act, omission, agreement, undertaking, settlement,
      waiver, amendment, supplement, variation, notice or other communication
      given or made by the Obligors' Agent or given to the Obligors' Agent under
      any Finance Document on behalf of another Obligor or in connection with
      any Finance Document (whether or not known to any other Obligor and
      whether occurring before or after such other Obligor became an Obligor
      under any Finance Document) shall be binding for all purposes on that
      Obligor as if that Obligor had

35

expressly made, given or concurred
with it. In the event of any conflict between any notices or other
communications of the Obligors' Agent and any other Obligor, those of the
Obligors' Agent shall prevail. 

4. CONDITIONS OF UTILISATION 

	4.1 	
      Documentary Conditions

	 	 
		
      The Lender shall not be obliged
to:

	4.1.1 	
      subscribe for the RPM Preference Shares; or

	 	 
	4.1.2 	
      make any advance under the Standby Facility or the OCSF
      Facility,

unless the Lender has notified Plateau
that it has received all the documents and evidence listed in Schedule 1
(Conditions) in form and substance satisfactory to the Lender. The Lender must
give this notification to Plateau upon being so satisfied. This clause 4.1 is
without prejudice to any additional conditions to subscription for the RPM
Preference shares and/or utilisation of the Standby Facility or the OCSF
Facility set out in the other applicable Finance Documents.

5. UTILISATIONS 

The proceeds received by Plateau,
Holdco and the Pelawan SPV pursuant to any advance by the Lender under the
Standby Facility or the OCSF Facility or the subscription by the Lender of the
RPM Preference Shares, shall be utilised in accordance with the terms of and for
the purpose set out in the relevant Finance Document and on the terms and
conditions set out in this Agreement. 

6. ILLEGALITY AND MANDATORY PREPAYMENT 

	6.1 	
      Illegality

	 	 
		
      If it becomes unlawful in any applicable jurisdiction for
      the Lender to perform any of its obligations as contemplated by this
      Agreement, the Standby Facility Agreement or the OCSF Facility Agreement
      or to fund, issue or maintain a Loan or any advance made under such
      facilities:

	6.1.1 	
      the Lender shall promptly notify Plateau upon becoming
      aware of that event;

	 	 
	6.1.2 	
      upon the Lender notifying Plateau, the Loan Commitments
      which are affected by that illegality will be immediately cancelled;
      and

	 	 
	6.1.3 	
      Plateau shall repay the Loans which are affected by that
      illegality on the next Repayment Date occurring after the Lender has
      notified Plateau or, if earlier, the date specified by the Lender in the
      notice delivered to Plateau (being no earlier than the last day of any
      applicable grace period permitted by law).

	6.2 	
      Mandatory Prepayments

	6.2.1 	
      Upon the occurrence of:

	 	 	 
		(a) 	
      a Change of Control; or

	 	 	 
		(b) 	
      the sale of all or substantially all of the assets of any
      member of the Anooraq Group (other than a Project Company) whether in a
      single transaction or a series of related
transactions,

36

then (i) Plateau shall promptly notify
the Lender upon becoming aware of that event, and (ii) the Lender may (whether
or not Plateau has complied with (i)) cancel the Standby Facility and/or the
OCSF Facility and declare the Loans, together with accrued interest and all
other amounts accrued under the Standby Facility and/or the OCSF Facility
immediately due and payable, whereupon such facilities will be cancelled and all
such outstanding amounts will become immediately due and payable, subject to and
in accordance with the Borrower Cash Waterfall and the other provisions of the
Global Intercreditor Agreement.

	6.2.2 	
      The provisions of this clause 6.2 are without prejudice
      to any rights the Lender may be entitled to exercise in relation to the
      RPM Preference Shares in accordance with the applicable Finance Documents
      upon the occurrence of the events referred to in (a) and/or (b)
    above.

	6.3 	
      Opco Funding Loan

	 	 
		
      Upon the occurrence of any prepayment of the Opco Funding
      Loan (including pursuant to a Permitted Disposal of the assets of a
      Project Company and the shares in a Project Company contemplated by
      paragraph 1.1.105(e) of the definition of Permitted Disposal), Plateau
      shall:

	6.3.1 	
      promptly notify the Lender upon becoming aware of that
      event;

	 	 	 
	6.3.2 	
      procure that the proceeds of prepayment of the Opco
      Funding Loan are utilised towards proportionately prepaying the loans to
      RPM and Plateau under the RPM Funding Loan Agreement and the Plateau
      Funding Loan Agreement; and

	 	 	 
	6.3.3 	
      utilise the proceeds received by it under the Plateau
      Funding Loan Agreement to:

	 	 	 
		(a) 	
      firstly make a prepayment of the loans advanced under the
      Senior Facility Agreement; and

	 	 	 
		(b) 	
      secondly, use any remaining proceeds to repay the loans
      advanced under the Standby Facility and the OCSF Facility and to redeem
      the RPM Plateau A Preference Shares,

	 	 	 
		
      in accordance with the provisions of the Global
      Intercreditor Agreement and in particular, the Borrower Cash
      Waterfall.

	6.4 	
      Mandatory Refinancing

	6.4.1 	
      Plateau shall be obliged to undertake the Mandatory Debt
      Refinance at any time during the period:

	 	 	 
		(a) 	
      commencing on the earlier of (a) the period commencing on
      the third anniversary of the Closing Date and (b) the date upon which Opco
      has achieved the Phase 1 steady state production of 160Ktpm as per the
      Base Case Model in the form as at the Signature Date; and

	 	 	 
		(b) 	
      ending on the date falling 12 months before the Interim
      Repayment Date.

	 	 	 
	6.4.2 	
      The proceeds of the Mandatory Debt Refinance shall be
      applied towards the settlement of the Standby Facility and the OCSF
      Facility and to redeem RPM

37

Plateau A Preference Shares in
accordance with the provisions of the Global Intercreditor Agreement and in
particular, the Borrower Cash Waterfall. 

	7. CHANGES TO THE CALCULATION OF
    INTEREST
	 	 	 
	7.1 	
      Market disruption

	 	 	 
	7.1.1 	
      If a Market Disruption Event occurs then the rate of
      interest applicable to the Standby Facility shall for the duration of the
      continuance of the Market Disruption Event be the percentage rate per
      annum notified to Plateau by the Lender to be an equivalent
rate.

	 	 	 
	7.1.2 	
      In this Agreement “Market Disruption Event” shall
      mean Standard Bank does not publically quote its prime lending
  rate.

	 	 	 
	7.2 	
      Alternative basis of interest or funding

	 	 	 
	7.2.1 	
      If a Market Disruption Event occurs and the Lender or
      Plateau so requires, the Lender and Plateau shall enter into negotiations
      (for a period of not more than thirty days) with a view to agreeing a
      substitute basis for determining the rate of interest.

	 	 	 
	7.2.2 	
      Any alternative basis agreed pursuant to paragraph 7.2.1
      above shall be binding on all Parties.

	 	 	 
	8. TAX GROSS UP AND INDEMNITIES
	 	 	 
	8.1 	
      Definitions

	 	 	 
	8.1.1 	
      In this Agreement:

	 	 	 
		 	
      (a) “Tax Credit” means a credit against, relief or
      remission for, or repayment of, any Tax.

	 	 	 
		 	
      (b) “Tax Deduction” means a deduction or
      withholding for or on account of Tax from a payment under a Finance
      Document (but excluding the payments made in respect of RPM Preference
      Shares, the relevant provisions relating to deductions and withholdings
      for or on account of Tax from a payment in respect of the RPM Preference
      Shares being set out in the respective subscription agreements pursuant to
      which such shares were issued to RPM);

	 	 	 
		 	
      (c) “Tax Payment” means either the increase in a
      payment made by an Obligor to a Finance Party under Clause 8.2 (Tax
      gross-up) or a payment under Clause 8.3 (Tax indemnity).

	 	 
	8.1.2 	
      Unless a contrary indication appears, in this Clause 8 a
      reference to “determines” or “determined” means a determination made in
      the absolute discretion of the person making the determination.

	 	 	 
	8.2 	
      Tax gross-up

	 	 	 
	8.2.1 	
      Each Obligor shall make all payments to be made by it
      without any Tax Deduction, unless a Tax Deduction is required by
    law.

	 	 
	8.2.2 	
      Plateau shall promptly upon becoming aware that it must
      make a Tax Deduction (or that there is any change in the rate or the basis
      of a Tax

38

		
      Deduction) notify the Lender accordingly. Similarly, the
      Lender shall notify Plateau on becoming so aware in respect of a payment
      payable to it.

	 	 
	8.2.3 	
      If a Tax Deduction is required by law to be made by an
      Obligor, the amount of the payment due from that Obligor shall be
      increased to an amount which (after making any Tax Deduction) leaves an
      amount equal to the payment which would have been due if no Tax Deduction
      had been required.

	 	 
	8.2.4 	
      If an Obligor is required to make a Tax Deduction, that
      Obligor shall make that Tax Deduction and any payment required in
      connection with that Tax Deduction within the time allowed and in the
      minimum amount required by law.

	 	 
	8.2.5 	
      Within thirty days of making either a Tax Deduction or
      any payment required in connection with that Tax Deduction, the Obligor
      making that Tax Deduction shall deliver to the Finance Party evidence
      reasonably satisfactory to that Finance Party that the Tax Deduction has
      been made or (as applicable) any appropriate payment paid to the relevant
      taxing authority.

	 	 
	8.2.6 	
      The Finance Party and the Obligor which makes the payment
      to which that Finance Party is entitled shall co-operate in completing any
      procedural formalities (including, without limitation, the delivery of any
      necessary forms and certificates required by applicable law) necessary for
      that Obligor to obtain authorisation to make that payment without a Tax
      Deduction or to make that payment with a lesser Tax Deduction.

	 	 
	8.3 	
      Tax indemnity

	 	 
	8.3.1 	
      Plateau shall (within three Business Days of demand by a
      Finance Party) pay to that Finance Party an amount equal to the loss,
      liability or cost which that Finance Party determines will be or has been
      (directly or indirectly) suffered for or on account of Tax by that Finance
      Party in respect of a Finance Document.

	 	 
	8.3.2 	
      Paragraph 8.3.1 above shall not apply with respect to any
      Tax assessed on a Finance Party:

	 	(a) 	
      under the law of the jurisdiction in which that Finance
      Party is incorporated or, if different, the jurisdiction (or
      jurisdictions) in which that Finance Party is treated as resident for tax
      purposes; or

	 	 	 
	 	(b) 	
      under the law of the jurisdiction in which that Finance
      Party's Facility Office is located in respect of amounts received or
      receivable in that jurisdiction,

if that Tax is imposed on or
calculated by reference to the net income received or receivable (but not any
sum deemed to be received or receivable) by that Finance Party;

	 	(c) 	
      to the extent a loss, liability or cost is compensated
      for by an increased payment under clause 8.2 (Tax gross-up); or

	 	 	 
	 	(d) 	
      to the extent a loss, liability or cost arises as a
      result of a failure by a Finance Party to comply with its filing
      obligations in relation to a Tax.

39

	8.3.3 	
      A Finance Party making, or intending to make a claim
      under paragraph 8.3.1 above shall promptly notify Plateau of the event
      which will give, or has given, rise to the
claim.

	8.4 	
      Tax Credit

	 	 
		
      If an Obligor makes a Tax Payment and the Relevant
      Finance Party determines that:

	8.4.1 	
      a Tax Credit is attributable either to an increased
      payment of which that Tax Payment forms part or to that Tax Payment;
      and

	 	 
	8.4.2 	
      that Finance Party has obtained, utilised and retained
      that Tax Credit,

	 	 
		
      the Finance Party shall pay an amount to the Obligor
      which that Finance Party determines will leave it (after that payment) in
      the same after-Tax position as it would have been in had the Tax Payment
      not been required to be made by the Obligor. The Finance Party shall, on
      making such payment to the Obligor, notify the Finance Party that it has
      made such payment and of the amount of such
payment.

	8.5 	
      Stamp taxes

	 	 
		
      Plateau shall pay and, within three Business Days of
      demand, indemnify the each Finance Party against any cost, loss or
      liability (properly evidenced) that Finance Party incurs in relation to
      all stamp duty, registration and other similar Taxes payable in respect of
      any Finance Document.

	 	 
	8.6 	
      Value added taxes

	8.6.1 	
      Any amount payable under a Finance Document by an Obligor
      is exclusive of any value added tax or any other Tax of a similar nature
      which might be chargeable in connection with a supply made in respect of
      that amount. If any such Tax is chargeable on any supply made by a Finance
      Party to an Obligor under a Finance Document, the Obligor must, upon
      presentation of a valid invoice, pay to the Finance Party (in addition to
      and at the same time as paying the relevant amount) an amount equal to the
      amount of that Tax.

	 	 
	8.6.2 	
      Where a Finance Document requires an Obligor to reimburse
      a Finance Party for any costs or expenses, the Obligor must also at the
      same time pay and indemnify the Finance Party against all value added tax
      or any other Tax of a similar nature incurred by the Finance Party in
      respect of those costs or expenses, but only to the extent that the
      Finance Party is not entitled to a credit or repayment from the relevant
      tax authority in respect of the Tax.

9. INCREASED COSTS 

	9.1 	
      Increased costs

	9.1.1 	
      Subject to Clause 9.3 (Exceptions) Plateau shall, within
      three Business Days of a demand by the Lender, pay for the account of a
      Lender the amount of any Increased Costs incurred by the Lender or any of
      its Affiliates as a result of (i) the introduction of or any change in (or
      in the interpretation, administration or application of) any law or
      regulation or (ii) compliance with any law or regulation made after the
      date of this Agreement.

	 	 
	9.1.2 	
      In this Agreement “Increased Costs”
  means:

40

	 	(a) 	
      a reduction in the rate of return from the Standby
      Facility or the OCSF Facility or on the Lender's (or its Affiliate's)
      overall capital;

	 	 	 
	 	(b) 	
      an additional or increased cost; or

	 	 	 
	 	(c) 	
      a reduction of any amount due and payable under any
      Finance Document (but excluding the payments made in respect of the RPM
      Preference Shares, the relevant provisions relating to increased costs in
      respect of the RPM Preference Shares being set out in the respective
      subscription agreements pursuant to which such shares were issued to
      RPM),

which is incurred or suffered by the
Lender or any of its Affiliates to the extent that it is attributable to the
Lender having entered into its Loan Commitment or funding or performing its
obligations under any such Finance Document. 

	9.2 	
      Increased cost claims

	 	 	 
	9.2.1 	
      If the Lender intends to make a claim pursuant to Clause
      24.1 it shall notify Plateau of the event giving rise to the
  claim.

	 	 
	9.2.2 	
      The Lender shall, as soon as practicable after a demand
      by Plateau, provide a certificate confirming the amount of its Increased
      Costs and the basis for its claim of Increased Costs.

	 	 	 
	9.3 	
      Exceptions

	 	 	 
	9.3.1 	
      Clause 9.1 (Increased costs) does not apply to the extent
      any Increased Cost is:

	 	(a) 	
      attributable to a Tax Deduction required by law to be
      made by Plateau;

	 	 	 
	 	(b) 	
      compensated for by Clause 8.3 (Tax indemnity) (or would
      have been compensated for under Clause 8.3 (Tax indemnity) but was not so
      compensated solely because one of the exclusions in paragraph 8.3.2 of
      Clause 8.3 (Tax indemnity) applied); or

	 	 	 
	 	(c) 	
      attributable to the wilful breach of or non compliance
      with, any law or regulation by the Lender or its
  Affiliates.

	9.3.2 	
      In this Clause 9.3 reference to a “Tax Deduction”
      has the same meaning given to the term in Clause 8.1
  (Definitions)

	 	 	 	 
	9.4 	
      Currency indemnity

	 	 	 	 
	9.4.1 	
      If any sum due from an Obligor under the Finance
      Documents (a “Sum”), or any order, judgment or award given or made
      in relation to a Sum, has to be converted from the currency (the “First
      Currency”) in which that Sum is payable into another currency (the
      “Second Currency”) for the purpose of:

	 	 	 	 
		 	(a)	
       making or filing a claim or proof against that
      Obligor; or

	 	 	 	 
		 	(b) 	
      obtaining or enforcing an order, judgment or award in
      relation to any litigation or arbitration proceedings,

	 	 	 	 
		 	
      that Obligor shall as an independent obligation, within
      three Business Days of demand, indemnify each Finance Party to whom that
      Sum is due against any cost reasonably incurred, loss or liability arising
      out of or as a result of the

41

conversion including any discrepancy
between (A) the rate of exchange used to convert that Sum from the First
Currency into the Second Currency and (B) the rate or rates of exchange
available to that person at the time of its receipt of that Sum. 

	9.4.2 	
      Each Obligor waives any right it may have in any
      jurisdiction to pay any amount under the Finance Documents in a currency
      or currency unit other than that in which it is expressed to be
      payable.

	9.5 	
      Other indemnities

	9.5.1 	
      Plateau shall within three Business Days of demand,
      indemnify each Finance Party against any cost, loss or liability incurred
      by it as a result of:

	 	 	 
		(a) 	
      the occurrence of any Event of Default;

	 	 	 
		(b) 	
      a failure by an Obligor to pay any amount due under a
      Finance Document on its due date,

	 	 	 
		(c) 	
      funding, or making arrangements to fund, a Loan requested
      by Plateau but not made by reason of the operation of any one or more of
      the provisions of this Agreement (other than by reason of default or
      negligence by that Finance Party alone); or

	 	 	 
		(d) 	
      investigating any event which it reasonably believes is a
      Default;

	 	 	 
		(e) 	
      acting or relying on any notice, request or instruction
      which it reasonably believes to be genuine, correct and appropriately
      authorised.

	9.6 	
      Indemnity to the Security Agent, the Opco Security SPV
      and the Plateau Security SPV

	9.6.1 	
      Each Obligor shall promptly indemnify the Security Agent,
      the Plateau Security SPV, the Opco Security SPV and every Delegate against
      any cost, loss or liability incurred by any of them (save if due to the
      gross negligence or wilful acts or omissions of the Security Agent, the
      Opco Security SPV, the Plateau Security SPV or a Delegate) as a result
      of:

	 	 	 
		(a) 	
      the taking, holding, protection or enforcement of the
      Transaction Security,

	 	 	 
		(b) 	
      the exercise of any of the rights, powers, discretions
      and remedies vested in the Security Agent, the Plateau Security SPV and
      each Delegate by the Finance Documents or by law; and

	 	 	 
		(c) 	
      any default by any Obligor in the performance of any of
      the obligations expressed to be assumed by it in the Finance
    Documents.

	 	 	 
	9.6.2 	
      The Security Agent, the Opco Security SPV and/or the
      Plateau Security SPV may, in priority to any payment to the Secured
      Parties, indemnify itself out of the Secured Assets in respect of, and pay
      and retain, all sums necessary to give effect to the indemnity in this
      Clause 9.6 and shall have a lien on the Transaction Security and the
      proceeds of the enforcement of the Transaction Security for all monies
      payable to it.

42

10. GUARANTEE AND INDEMNITY

	10.1 	
      Guarantee and indemnity

	 	 
		
      The Guarantor irrevocably and unconditionally jointly and
      severally:

	10.1.1 	
      guarantees to each Finance Party punctual performance by
      each other Obligor of all that Obligor's obligations under the Finance
      Documents (other obligations in relation to the B Preference Share
      Documents);

	 	 
	10.1.2 	
      undertakes with each Finance Party that whenever another
      Obligor does not pay any amount when due under or in connection with any
      Finance Document (other obligations in relation to the B Preference Share
      Documents), the Guarantor shall immediately on demand pay that amount as
      if it was the principal obligor; and

	 	 
	10.1.3 	
      indemnifies each Finance Party immediately on demand
      against any cost, loss or liability suffered by that Finance Party if any
      obligation guaranteed by it is or becomes unenforceable, invalid or
      illegal. The amount of the cost, loss or liability shall be equal to the
      amount which that Finance Party would otherwise have been entitled to
      recover.

	10.2 	
      Continuing Guarantee

	 	 
		
      This guarantee is a continuing guarantee and will extend
      to the ultimate balance of sums payable by any Obligor under the Finance
      Documents (other than in relation to the B Preference Share Documents),
      regardless of any intermediate payment or discharge in whole or in
      part.

	 	 
	10.3 	
      Reinstatement

	 	 
		
      If any payment by an Obligor or any discharge given by a
      Finance Party (whether in respect of the obligations of any Obligor or any
      security for those obligations or otherwise) is avoided or reduced as a
      result of insolvency or any similar event:

	10.3.1 	
      the liability of each Obligor shall continue as if the
      payment, discharge, avoidance or reduction had not occurred; and

	 	 
	10.3.2 	
      each Finance Party shall be entitled to recover the value
      or amount of that security or payment from each Obligor, as if the
      payment, discharge, avoidance or reduction had not
  occurred.

	10.4 	
      Waiver of defences

	 	 
		
      The obligations of the Guarantor under this Clause 10
      will not be affected by an act, omission, matter or thing which, but for
      this Clause 10, would reduce, release or prejudice any of its obligations
      under this Clause 10 (without limitation and whether or not known to it or
      any Finance Party) including:

	10.4.1 	
      any time, waiver or consent granted to, or composition
      with, any Obligor or other person;

	 	 
	10.4.2 	
      the release of any other Obligor or any other person
      under the terms of any composition or arrangement with any creditor of any
      member of the Group;

	 	 
	10.4.3 	
      the taking, variation, compromise, exchange, renewal or
      release of, or refusal or neglect to perfect, take up or enforce, any
      rights against, or security over

43

		
      assets of, any Obligor or other person or any
      non-presentation or non- observance of any formality or other requirement
      in respect of any instrument or any failure to realise the full value of
      any security;

	 	 
	10.4.4 	
      any incapacity or lack of power, authority or legal
      personality of or dissolution or change in the members or status of an
      Obligor or any other person;

	 	 
	10.4.5 	
      any amendment, novation, supplement, extension (whether
      of maturity or otherwise) or restatement (in each case, however
      fundamental and of whatsoever nature) or replacement of a Finance Document
      or any other document or security;

	 	 
	10.4.6 	
      any unenforceability, illegality or invalidity of any
      obligation of any person under any Finance Document or any other document
      or security; or

	 	 
	10.4.7 	
      any insolvency or similar
proceedings.

	10.5 	
      Guarantor Intent

	 	 
		
      Without prejudice to the generality of Clause 10.4
      (Waiver of Defences), the Guarantor expressly confirms that it intends
      that this guarantee shall extend from time to time to any (however
      fundamental) variation, increase, extension or addition of or to any of
      the Finance Documents and/or any facility or amount made available under
      any of the Finance Documents for the purposes of or in connection with any
      of the following: acquisitions of any nature; increasing working capital;
      enabling investor distributions to be made; carrying out restructurings;
      refinancing existing facilities; refinancing any other indebtedness;
      making facilities available to new borrowers; any other variation or
      extension of the purposes for which any such facility or amount might be
      made available from time to time; and any fees, costs and/or expenses
      associated with any of the foregoing.

	 	 
	10.6 	
      Immediate recourse

	 	 
		
      The Guarantor waives any right it may have of first
      requiring any Finance Party (or any trustee or agent on its behalf) to
      proceed against or enforce any other rights or security or claim payment
      from any person before claiming from the Guarantor under this Clause 10.
      This waiver applies irrespective of any law or any provision of a Finance
      Document to the contrary.

	 	 
	10.7 	
      Appropriations

	 	 
		
      Until all amounts which may be or become payable by the
      Obligors under or in connection with the Finance Documents have been
      irrevocably paid in full, each Finance Party (or any trustee or agent on
      its behalf) may without affecting the liability of the Guarantor under
      this Clause 10:

	10.7.1 	
      refrain from applying or enforcing any other moneys,
      security or rights held or received by that Finance Party (or any trustee
      or agent on its behalf) in respect of those amounts, or apply and enforce
      the same in such manner and order as it sees fit (whether against those
      amounts or otherwise) and the Guarantor shall not be entitled to the
      benefit of the same; and

	 	 
	10.7.2 	
      hold in an interest-bearing suspense account any moneys
      received from the Guarantor or on account of the Guarantor's liability
      under this Clause 10.

44

	10.8 	
      Deferral of Guarantors' rights

	 	 
		
      Until all amounts which may be or become payable by the
      Obligors under or in connection with the Finance Documents have been
      irrevocably paid in full and unless the Lender otherwise directs, the
      Guarantor will not exercise any rights which it may have by reason of
      payment by it of any amounts owing under the Finance
  Documents:

	10.8.1 	
      to be indemnified by an Obligor;

	 	 
	10.8.2 	
      to claim any contribution from any other guarantor of any
      Obligor's obligations under the Finance Documents; and/or

	 	 
	10.8.3 	
      to take the benefit (in whole or in part and whether by
      way of subrogation or otherwise) of any rights of the Finance Parties
      under the Finance Documents or of any other guarantee or security taken
      pursuant to, or in connection with, the Finance Documents by any Finance
      Party.

		
      If the Guarantor receives any benefit, payment or
      distribution in relation to such rights it shall hold that benefit,
      payment or distribution to the extent necessary to enable all amounts
      which may be or become payable to the Finance Parties by the Obligors
      under or in connection with the Finance Documents to be repaid in full on
      trust for the Finance Parties and shall promptly pay or transfer the same
      to the Lender or as the Lender may direct for application in accordance
      with the Global Intercreditor Agreement.

	 	 
	10.9 	
      Release of Guarantors' right of
  contribution

	 	 
		
      If the Guarantor (a “Retiring Guarantor”) ceases
      to be Guarantor in accordance with the terms of the Finance Documents for
      the purpose of any sale or other disposal of that Retiring Guarantor then
      on the date such Retiring Guarantor ceases to be a
  Guarantor:

	10.9.1 	
      that Retiring Guarantor is released by each other
      Guarantor from any liability (whether past, present or future and whether
      actual or contingent) to make a contribution to any other Guarantor
      arising by reason of the performance by any other Guarantor of its
      obligations under the Finance Documents; and

	 	 
	10.9.2 	
      each other Guarantor waives any rights it may have by
      reason of the payment by it of any amounts owing under the Finance
      Documents to take the benefit (in whole or in part and whether by way of
      subrogation or otherwise) of any rights of the Finance Parties under any
      Finance Document or of any other security taken pursuant to, or in
      connection with, any Finance Document where such rights or security are
      granted by or in relation to the assets of the Retiring
  Guarantor.

	10.10 	
      Additional security

	 	 
		
      This guarantee is in addition to and is not in any way
      prejudiced by any other guarantee or security now or subsequently held by
      any Finance Party.

	 	 
	10.11 	
      Guarantee Limitations

	10.11.1 	
      This guarantee does not apply to any liability to the
      extent that it would result in this guarantee constituting unlawful
      financial assistance within the meaning of Section 38 of the Companies
      Act, 1973 of South Africa or any equivalent

45

		
      and applicable provisions under the laws of the
      jurisdiction of incorporation of the relevant Guarantor.

	 	 
	10.11.2 	
      The maximum amount recoverable by the Finance Parties
      from the Original Guarantor under this guarantee shall be limited to the
      amount of proceeds arising on the enforcement of the Transaction Security
      given by the Guarantor.

11. REPRESENTATIONS 

	11.1 	
      General

	11.1.1 	
      Save as otherwise expressly provided in this Agreement in
      relation to any particular representation and warranty, each Obligor makes
      the representations and warranties set out in this Clause 11 to each
      Finance Party and where applicable in relation to any representation and
      warranty, subject to the disclosures contained in the Disclosure
      Schedule.

	 	 
	11.1.2 	
      The Finance Parties have entered into the Finance
      Documents on the strength of and relying on the representations and
      warranties set out in this Clause 11, each of which is a separate
      representation and warranty, given without prejudice to any other
      representation or warranty and is deemed to be a material representation
      or warranty (as applicable) inducing the Finance Parties to enter into the
      Finance Documents.

	11.2 	
      Status

	11.2.1 	
      Save in respect of the Pelawan Trust, it and each of its
      Subsidiaries is a limited liability corporation, duly incorporated and
      validly existing under the law of its jurisdiction of
  incorporation.

	 	 
	11.2.2 	
      The Pelawan Trust is trust validly existing and duly
      registered under the laws of South Africa.

	 	 
	11.2.3 	
      It and each of its Subsidiaries has the power and all
      Authorisations under the laws of all applicable jurisdictions to own its
      assets and carry on its business as it is being conducted save to the
      extent a failure to have any such Authorisation is not reasonably likely
      to have a Material Adverse Effect.

	11.3 	
      Binding obligations

	 	 
		
      Subject to the Legal
Reservations:

	11.3.1 	
      the obligations expressed to be assumed by it and each
      member of the Plateau Group in each Transaction Document to which it and
      each member of the Plateau Group is a party are legal, valid, binding and
      enforceable obligations; and

	 	 
	11.3.2 	
      (without limiting the generality of paragraph 11.3.1
      above), each Transaction Security Document to which it and each member of
      the Plateau Group has entered into creates (subject to registration of the
      Transaction Security Documents where necessary) the security interests
      which that Transaction Security Document purports to create and those
      security interests are valid and effective.

46

	11.4 	
      Non-conflict with other obligations

	 	 
		
      The entry into and performance by it and each member of
      the Plateau Group of, and the transactions contemplated by, the
      Transaction Documents and the granting of the Transaction Security do not
      and will not conflict with:

	11.4.1 	
      any law or regulation applicable to it or each member of
      the Plateau Group;

	 	 
	11.4.2 	
      the constitutional documents of it or any member of the
      Plateau Group; or

	 	 
	11.4.3 	
      any agreement or instrument binding upon it or any member
      of the Plateau Group or any of its or any member of the Plateau Group's
      material assets (“material assets” in this clause being assets which
      individually or collectively constitute material assets) or constitute a
      default or termination event (however described) under any such agreement
      or instrument binding on it.

	11.5 	
      Power and authority

	11.5.1 	
      It and each member of the Plateau Group has the power to
      enter into, perform and deliver, and has taken all necessary action to
      authorise its and each member of the Plateau Group’s entry into,
      performance and delivery of, the Transaction Documents to which it and
      each member of the Plateau Group is or will be a party and the
      transactions contemplated by those Transaction Documents.

	 	 
	11.5.2 	
      No limit on its or any member of the Plateau Group's
      powers will be exceeded as a result of the borrowing, grant of security or
      giving of guarantees or indemnities contemplated by the Transaction
      Documents to which it or a member of the Plateau Group is a
  party.

	11.6 	
      Validity and admissibility in
  evidence

	11.6.1 	
      All Authorisations required:

	 	 	 
		(a) 	
      to enable it and each member of the Plateau Group
      lawfully to enter into, exercise its rights and comply with its
      obligations in the Transaction Documents to which it is a party;
  and

	 	 	 
		(b) 	
      to make the Transaction Documents to which it and each
      member of the Plateau Group is a party admissible in evidence in its
      Relevant Jurisdictions,

	 	 	 
		
      have been obtained or effected and are in full force and
      effect.

	 	 	 
	11.6.2 	
      All Authorisations necessary for the conduct of the
      business, trade and ordinary activities of members of the Pelawan Group
      have been obtained or effected and are in full force and effect, save to
      the extent a failure to obtain or maintain any such Authorisation is not
      reasonably likely to have a Material Adverse Effect.

	 	 	 
	11.6.3 	
      Without limiting any other representation or warranty in
      this Agreement, no Authorisation, registration or declaration of, or
      filing with, any governmental authority or other person including
      applicable securities law authorities or stock exchanges is required by
      the Parent in connection with the execution and delivery by it of the
      Plateau Forward Sale Agreement or the observance and performance by it of
      its obligations under any Finance Document including the issuance of the
      Anooraq 2 Consideration Shares and the

47

Anooraq 3 Consideration Shares other
than the filing of a report on or before the 10th day after the
distribution of such shares in accordance with BC Instrument 72-503 –
Distribution of Securities Outside British Columbia;

	11.7 	
      Governing law and
enforcement

	11.7.1 	
      Subject to the Legal Reservations, the choice of
      governing law of the Finance Documents will be recognised and enforced in
      relation to each Obligor and each member of the Plateau Group in its
      Relevant Jurisdictions.

	 	 
	11.7.2 	
      Any judgment obtained in relation to a Finance Document
      in the jurisdiction of the governing law of that Finance Document will,
      subject to compliance with any procedural requirements or Legal
      Reservations, be recognised and enforced in relation to each Obligor and
      each member of the Plateau Group in its Relevant
  Jurisdictions.

	11.8 	
      Insolvency

	 	 
		
      No:

	11.8.1 	
      corporate action, legal proceeding or other procedure or
      step described in 14.7.1 (Insolvency proceedings); or

	 	 
	11.8.2 	
      creditors' process described in Clause 14.8 (Creditors'
      process),

		
      has been taken or, to the knowledge of any Obligor,
      threatened in relation to any Obligor or a member of the Plateau Group;
      and none of the circumstances described in Clause 14.6 (Insolvency)
      applies to any Obligor or a member of the Plateau Group.

	 	 
	11.9 	
      No filing or stamp taxes

	 	 
		
      Under the laws of its and each member of the Plateau
      Group’s Relevant Jurisdiction it is not necessary that the Finance
      Documents be filed, recorded or enrolled with any court or other authority
      in that jurisdiction or that any stamp, registration, notarial or similar
      Taxes or fees be paid on or in relation to the Finance Documents or the
      transactions contemplated by the Finance Documents
  except:

	11.9.1 	
      registration of the Opco Security Documents referred to
      in paragraphs 2 to 4 of Part 1 of Schedule 2 (Transaction Security
      Document) at the applicable Deeds Registries in South Africa under the
      Deeds Registries Act, 1946 of South Africa or at the Mineral and Petroleum
      Titles and Registration Office (as applicable) and payment of associated
      fees;

	 	 
	11.9.2 	
      as expressly provided for in the Legal Reservations
      expressed in the Cayman Islands or Canadian legal opinions referred to in
      Schedule 1; and

	 	 
	11.9.3 	
      filing of certain redacted Finance Documents (the
      redacted form to be approved by the Lender) in accordance with the
      requirements of the TSX Venture Exchange, which filing the Parent and
      Plateau undertake to make within the relevant prescribed time period and
      in accordance with the prescribed requirements for such
  filing,

which registrations, filings, taxes and
fees will be made and paid promptly after the date of the relevant Finance
Document. 

48

	11.10 	
      Deduction of Tax

	 	 
		
      Neither it nor any member of the Plateau Group is
      required to make any deduction for or on account of Tax from any payment
      it may make under any Finance Document except in relation to the
      Guarantor, N1C Resources or the Parent only, as expressly provided for in
      the Legal Reservations expressed in any Cayman Islands or Canadian Legal
      Opinion.

	 	 
	11.11 	
      No default

	11.11.1 	
      No Event of Default and, on the date of this Agreement
      and the Closing Date, no Default is continuing or is reasonably likely to
      result from the making of any Loan or the entry into, the performance of,
      or any transaction contemplated by, any Transaction Document.

	 	 
	11.11.2 	
      No other event or circumstance is outstanding which
      constitutes (or, with the expiry of a grace period, the giving of notice,
      the making of any determination or any combination of any of the
      foregoing, would constitute) a default or termination event (however
      described) under any other agreement or instrument which is binding on it
      or any member of the Plateau Group or to which its (or any member of the
      Plateau Group’s) assets are subject which has or is reasonably likely to
      have a Material Adverse Effect.

	11.12 	
      No misleading information

	 	 
		
      Save as disclosed to the Lender prior to the date of this
      Agreement:

	11.12.1 	
      all material information provided to the Lender by or on
      behalf of the Parent or Plateau in connection with the Acquisition and/or
      the Pelawan Group on or before the date of this Agreement and not
      superseded before that date is accurate and not misleading in any material
      respect and all projections provided to the Lender on or before the date
      of this Agreement have been prepared in good faith on the basis of
      assumptions which were reasonable at the time at which they were prepared
      and supplied; and

	 	 
	11.12.2 	
      all other information provided by any member of the
      Pelawan Group (including its advisers) to the Lender was true, complete
      and accurate in all material respects as at the date it was provided and
      is not misleading in any respect.

	11.13 	
      Original Financial
Statements

	11.13.1 	
      The Original Financial Statements were prepared in
      accordance with the Accounting Principles consistently applied.

	 	 
	11.13.2 	
      The audited Original Financial Statements give a true and
      fair view of the financial condition and results of operations of the
      Anooraq Group, the Plateau Group, or the Holdco Group as the case may be,
      during the relevant financial year.

	 	 
	11.13.3 	
      There has been no material adverse change in the assets,
      business or financial condition of any member of the Anooraq Group, the
      Plateau Group or the Holdco Group) since the date of the Original
      Financial Statements.

	 	 
	11.13.4 	
      The Original Financial Statements of Plateau do not
      consolidate the results, assets or liabilities of any person or business
      which does not form part of the Plateau Group.

49

	11.13.5 	
      Its and each member of the Plateau Group’s most recent
      Annual Financial Statements, Semi-Annual Financial Statements and
      Quarterly Management Accounts delivered pursuant to Clause 12.1 (Financial
      Statements):

	 	 	 
		(a) 	
      have been prepared in accordance with the Accounting
      Principles as applied to the Original Financial Statements; and

	 	 	 
		(b) 	
      give a true and fair view of (if audited) or fairly
      present (if unaudited) its consolidated financial condition as at the end
      of, and consolidated results of operations for, the period to which they
      relate.

	 	 	 
	11.13.6 	
      The budgets and forecasts supplied under this Agreement
      were arrived at after careful consideration and have been prepared in good
      faith on the basis of recent historical information and on the basis of
      assumptions which were reasonable as at the date they were prepared and
      supplied.

	 	 	 
	11.13.7 	
      Since the date of the most recent financial statements
      delivered pursuant to Clause 12.1 (Financial Statements) there has been no
      material adverse change in the business, assets or financial condition of
      any Obligor or any member of the Plateau
Group.

	11.14 	
      No proceedings pending or threatened

	 	 
		
      No litigation, arbitration or administrative proceedings
      or investigations of, or before, any court, arbitral body or agency which,
      if adversely determined, are reasonably likely to have a Material Adverse
      Effect have (to the best of its knowledge and belief (having made due and
      careful enquiry)) been started or threatened against it or any member of
      the Pelawan Group.

	 	 
	11.15 	
      No breach of laws

	11.15.1 	
      It has not (and no member of the Plateau Group has)
      breached any law (including any Mining Law) or regulation which breach has
      or is reasonably likely to have a Material Adverse Effect.

	 	 
	11.15.2 	
      No labour disputes are current or, to the best of its
      knowledge and belief (having made due and careful enquiry), threatened
      against it or any member of the Pelawan Group which have or are reasonably
      likely to have a Material Adverse Effect.

	11.16 	
      Taxation

	11.16.1 	
      It is not (and no member of the Plateau Group is)
      materially overdue in the filing of any Tax returns and it is not (and no
      member of the Plateau Group is) overdue in the payment of any amount in
      respect of Tax of ZAR5,000,000 (Indexed) (or its equivalent in any other
      currency) or more.

	 	 
	11.16.2 	
      No claims or investigations are being, or are reasonably
      likely to be, made or conducted against it (or any member of the Plateau
      Group) with respect to Taxes such that a liability of, or claim against,
      it or any member of the Plateau Group of ZAR5,000,000 (Indexed) (or its
      equivalent in any other currency) or more is reasonably likely to
      arise.

	 	 
	11.16.3 	
      It (and each member of the Plateau Group) is resident for
      Tax purposes only in the jurisdiction of its
  incorporation.

50

	11.17 	
      Security and Financial
  Indebtedness

	11.17.1 	
      No Security or Quasi-Security exists over all or any of
      its present or future assets or all or any of the present or future assets
      of any member of the Plateau Group other than as permitted by this
      Agreement.

	 	 
	11.17.2 	
      No member of the Plateau Group has any Financial
      Indebtedness outstanding other than as permitted by this
  Agreement.

	11.18 	
      Ranking

	 	 
		
      The Transaction Security has or will have the ranking in
      priority which it is expressed to have in the Transaction Security
      Documents and it is not subject to any prior ranking or pari passu
      ranking Security.

	 	 
	11.19 	
      Good title to assets

	 	 
		
      It and each member of the Plateau Group has a good and
      valid title to, or valid leases or licences of, and all appropriate
      Authorisations to use, the assets necessary to carry on its business as
      presently conducted.

	 	 
	11.20 	
      Legal and beneficial
ownership

	11.20.1 	
      It and each member of the Plateau Group is the sole legal
      and beneficial owner of the respective assets over which it purports to
      grant Security.

	 	 
	11.20.2 	
      Pelawan Trust is entitled and able to transfer registered
      and beneficial ownership in and to the Anooraq Security Shares to Pelawan
      SPV in accordance with the terms and conditions of the Pelawan Share for
      Share Agreement and the Pelawan Trust Deed.

	11.21 	
      Shares

	 	 
		
      The shares of any member of the Pelawan Group which are
      subject to the Transaction Security are fully paid and save as expressly
      provided for in the Transaction Documents, not subject to any option to
      purchase or similar rights (other than such rights applicable to the RPM
      Pelawan B Preference Shares as specifically set out in the Finance
      Documents). The Constitutional Documents of companies whose shares are
      subject to the Transaction Security do not and could not restrict or
      inhibit any transfer of those shares on creation or enforcement of the
      Transaction Security. Save as provided for in the Transaction Documents,
      there are no agreements in force which provide for the issue or allotment
      of, or grant any person the right to call for the issue or allotment of,
      any share or loan capital of any member of the Pelawan Group (including
      any option or right of pre-emption or conversion).

	 	 
	11.22 	
      Intellectual Property

	 	 
		
      It and each member of the Plateau
Group:

	11.22.1 	
      is the sole legal and beneficial owner of or has licensed
      to it on normal commercial terms all the Intellectual Property which is
      material in the context of its business and which is reasonably required
      by it in order to carry on its business as it is being
conducted;

	 	 
	11.22.2 	
      to the best of its knowledge and belief, after due and
      careful enquiry, does not, in carrying on its respective businesses,
      infringe any Intellectual Property

51

		
      of any third party in any respect which has or is
      reasonably likely to have a Material Adverse Effect; and

	 	 
	11.22.3 	
      has taken all formal or procedural actions (including
      payment of fees) required to maintain any material Intellectual Property
      owned by it.

	11.23 	
      Accounting reference date

	 	 
		
      The financial year end of each member of the Pelawan
      Group is 31 December in each year.

	 	 
	11.24 	
      No adverse
consequences

	11.24.1 	
      It is not necessary under the laws of its or any member
      of the Plateau Group’s Relevant Jurisdictions:

	 	 	 
		(a) 	
      in order to enable any Finance Party to enforce its
      rights under any Finance Document; or

	 	 	 
		(b) 	
      by reason of the execution of any Finance Document or the
      performance by it of its obligations under any Finance Document,

	 	 	 
		
      that any Finance Party should be licensed, qualified or
      otherwise entitled to carry on business in any of such Relevant
      Jurisdictions.

	 	 	 
	11.24.2 	
      No Finance Party is or will be deemed to be resident,
      domiciled or carrying on business in any Relevant Jurisdiction by reason
      only of the execution, performance and/or enforcement of any Finance
      Document

	11.25 	
      Immunity

	11.25.1 	
      The entry into by it and each member of the Anooraq Group
      of each Finance Document to which it is a party constitutes, and the
      exercise by it and each member of the Anooraq Group of its respective
      rights and performance of its respective obligations under each Finance
      Document will constitute, private and commercial acts performed for
      private and commercial purposes.

	 	 
	11.25.2 	
      It and each member of the Anooraq Group will not be
      entitled to claim immunity from suit, execution, attachment or other legal
      process in any proceedings taken in any Relevant Jurisdiction in relation
      to any Finance Document.

	11.26 	
      Issued share capital

	 	 
		
      The issued share capital of the Pelawan SPV, the Parent
      and Plateau will be as set out in the group structure diagram referred to
      in Schedule 1 in the agreed form to be delivered to the Lender on or
      before the Closing Date.

	 	 
	11.27 	
      Times when representations
made

	11.27.1 	
      All the representations and warranties in this Clause 11
      are made by each applicable Obligor on the date of this Agreement and on
      the Closing Date.

	 	 
	11.27.2 	
      The Repeating Representations are deemed to be made by
      each applicable Obligor on the date of each Notice of Drawdown (as defined
      in the Standby Facility Agreement and the OCSF Facility Agreement), on
      each date an advance is made under the Standby Facility or the OCSF
      Facility and on each Repayment Date (except that those contained in
      paragraphs 11.13.1 -

52

11.13.4 of Clause 11.13 (Original
Financial Statements) will cease to be so made once subsequent financial
statements have been delivered under this Agreement). 

	11.27.3 	
      Each representation or warranty deemed to be made after
      the date of this Agreement shall be deemed to be made by reference to the
      facts and circumstances existing at the date the representation or
      warranty is deemed to be made.

	12. 	
      INFORMATION UNDERTAKINGS

	 	 
		
      The undertakings in this Clause 12 remain in force from
      the date of this Agreement for so long as any amount is outstanding under
      the Finance Documents or any Commitment is in
force.

	12.1 	
      ***

	 	 
	12.1.1 	
      ***

	 	 
	12.1.2 	
      ***

	 	 
	12.1.3 	
      ***

	 	 
	12.1.4 	
      ***

53

	12.1.5 	 ***

	 	 	 
	12.2 	 ***

	 	 	 
	12.2.1 	 ***

	 	 	 
	12.2.2 	 ***

54

	 12.2.3 	***
	  	 
	  	  
	 12.3 	***
	  	  
	 12.4 	***
	  	  
	 12.4.1 	***
	  	  
	 12.4.2 	***
	  	  
	 12.4.3 	***
	  	  
	 12.4.4 	***
	  	  
	 12.4.5 	***
	  	  
	 12.4.6 	***

 55

	12.4.7 	
      ***

	12.5 	Notification of default 
	
      
	
       
	
      
	
      

	
      12.5.1 
		
      Each Obligor shall notify the Lender of any Default (and
      the steps, if any, being taken to remedy it) promptly upon becoming aware
      of its occurrence (unless that Obligor is aware that a notification has
      already been provided by another Obligor). 

	
      
	
       
	
      
	
      

	
      12.5.2 
		
      Promptly upon a request by the Lender, Plateau shall
      supply to the Lender a certificate signed by two of its directors or
      senior officers on its behalf certifying that no Default is continuing (or
      if a Default is continuing, specifying the Default and the steps, if any,
      being taken to remedy it). 

	
      
	
       
	
      
	
      

	
      13. GENERAL UNDERTAKINGS 

	
      
	
       
	
      
	
      

	
      The undertakings in this Clause 13 remain in force from
      the date of this Agreement for so long as any amount is outstanding under
      the Finance Documents or any Commitment is in force. 

	
      
	
       
	
      
	
      

	
      13.1 
	
      Authorisations 

	
      
	
       
	
       

		
      Each Obligor shall (and shall ensure that each member of
    the Plateau Group will) promptly: 

	
      
	
       
	
       

	
      13.1.1 
		
      obtain, comply with and do all that is necessary to
      maintain in full force and effect; and 

	
      
	
       
	
       

	
      13.1.2 
	
       
	
      supply certified copies to the Lender of, 

	
      
	
       
	
       

	
      
	
      any Authorisation required under any law or regulation of
      a Relevant Jurisdiction to: 
      
	
      
	
       
	
      
	
      

			
      (a) 
	
      enable it and each member of the Plateau Group to perform
      its respective obligations under the Transaction Documents; 

	
      
	
       
	
      
	
      

			
      (b) 
	
      ensure the legality, validity, enforceability or
      admissibility in evidence of each Transaction Document; and 

	
      
	
       
	
      
	
      

			
      (c) 
	
      enable it and each member of the Plateau Group to carry
      on its respective business where failure to do so has or is reasonably
      likely to have a Material Adverse Effect. 

	
      
	
       
	
      
	
      

	
      13.2 
	
      

      Environmental compliance 

	
      
	
       
	
      
	
      

	
      13.2.1 
		
      Each Obligor (other than the Parent) shall (and the
      Parent and Plateau shall ensure that Opco and each Project Company will):      

	
      
	
       
	
      
	
      

	
      
	
       
	
      (a) 
	
      comply with all Environmental Law; 

	
      
	
       
	
      
	
      

	
      
	
       
	
      (b) 
	
      obtain, maintain and ensure compliance with all requisite
      Environmental Permits; 

	
      
	
       

	
      
	
       
	
      
	
      

	
      
	
       
	
      (c) 
	
      implement procedures to monitor compliance with and to
      prevent liability under any Environmental Law, 

56

		
      where failure to do so has or is reasonably likely to
      have a Material Adverse Effect.

	 	 	 
	13.2.2 	
      Each Obligor (other than the Parent) shall (and the
      Parent and Plateau shall ensure that Opco and each Project Company will)
      conduct its business in a manner which substantially complies, and enables
      each Finance Party and its Affiliates to comply, with the Equator
      Principles, to the extent applicable. Each Obligor shall provide the
      Lender with all documentation reasonably requested by the Lender to
      confirm such compliance.

	 	 	 
	13.2.3 	
      Opco and each Project Company shall (and the Parent and
      Plateau shall ensure that Opco and each Project Company will) comply in
      all material respects with all recommended actions set out in the
      Environmental Report relating to compliance with the Equator Principles,
      including, but not limited to the various “LPM Management Commitments” set
      out in the Environmental Report and summarised in the table with headings
      “Principle 1: Review and Categorisation” to “Principal 9: Independent
      Monitoring and Reporting” of the Environmental Report.

	 	 	 
	13.2.4 	
      Plateau shall:

	 	 	 
		(a) 	
      appoint an independent expert (the identity of which is
      approved by the Lender) to conduct an annual review of the compliance and
      implementation by Opco and each Project Company of the various
      recommendations set out in the Environmental Report, the first such annual
      review to be completed by no later than 30 June 2010 and thereafter each
      succeeding annual review to be completed by the anniversary of the
      preceding annual review completion; and

	 	 	 
		(b) 	
      provide a copy of each annual review to the
  Lender.

	13.3 	
      Environmental claims

	 	 
		
      Each Obligor shall (through Plateau), promptly upon
      becoming aware of the same, inform the Lender in writing
  of:

	13.3.1 	
      any Environmental Claim against any member of the Plateau
      Group which is current, pending or threatened; and

	 	 
	13.3.2 	
      any facts or circumstances which are reasonably likely to
      result in any Environmental Claim being commenced or threatened against
      any member of the Plateau Group,

		
      where the claim, if determined against that member of the
      Plateau Group, has or is reasonably likely to have a Material Adverse
      Effect.

	 	 
	13.4 	
      Compliance with laws

	 	 
		
      Each Obligor shall (and the Parent and Plateau shall
      ensure that each member of the Plateau Group will) comply in all respects
      with all laws to which it may be subject, if failure so to comply has or
      is reasonably likely to have a Material Adverse Effect.

	 	 
	13.5 	
      Taxation

	13.5.1 	
      Each Obligor shall (and the Parent and Plateau shall
      ensure that each member of the Plateau Group will) pay and discharge all
      Taxes imposed upon

57

it or its assets within the time
period allowed without incurring penalties unless and only to the extent that:

	 	(a) 	
      such payment is being contested in good faith;

	 	 	 
	 	(b) 	
      adequate reserves are being maintained for those Taxes
      and the costs required to contest them which have been disclosed in its
      latest financial statements delivered to the Lender under Clause 12.1
      (Financial statements); and

	 	 	 
	 	(c) 	
      such payment can be lawfully withheld and failure to pay
      those Taxes does not have or is not reasonably likely to have a Material
      Adverse Effect.

	13.5.2 	
      No member of the Anooraq Group or the Plateau Group may
      change its residence for Tax purposes, provided that the Parent may change
      its residence for Tax purposes if the Lender has confirmed that it is
      satisfied that the change to the Parent’s residence for Tax purposes will
      not result in any negative tax consequences (including the imposing of any
      withholding tax on any member of the Plateau Group). 

	  	 	
      
	
      

	13.6 	Merger 
	  	 	
      
	
      

		
      No Obligor shall (and the Parent and Plateau shall ensure
      that no other member of the Plateau Group will) enter into any
      amalgamation, demerger, merger, consolidation or corporate reconstruction
      other than a Permitted Transaction. 

	  	 	
      
	
      

	13.7 	Change of business 
	  	 	
      
	
      

		
      The Parent and Plateau shall procure that no substantial
      change is made to the general nature of the business of the Parent, the
      Obligors or the Plateau Group taken as a whole from that carried on by
      such entity at the Closing Date. 

	  	 	
      
	
      

	13.8 	Acquisitions 
	  	 	
      
	
      

	13.8.1 	
      Except as permitted under paragraph 13.8.2 below, no
      Obligor (other than the Parent) shall (and the Parent and Plateau shall
      ensure that no other member of the Plateau Group will): 

	 	
      
	
      

	 	
      (a) 
	
      acquire a company or any shares or securities or a
      business or undertaking (or, in each case, any interest in any of them);
      or 

	 	
      
	
      

	 	
      (b) 
	
      incorporate a company. 

	 	
      
	
      

	13.8.2 	
      Paragraph 13.8.1 above does not apply to an acquisition
      of a company, of shares, securities or a business or undertaking (or, in
      each case, any interest in any of them) or the incorporation of a company
      which is: 

	  	 	
      
	
      

	  	 	
      (a) 
	
      a Permitted Acquisition; or 

	  	 	
      
	
      

	  	 	
      (b) 
	
      a Permitted Transaction. 

	  	 	
      
	
      

	13.9 	Joint ventures 
	  	 	
      
	
      

		
      No Obligor (other than the Parent) shall (and the Parent
      and Plateau shall ensure that no member of the Plateau Group will), except
      with the prior written consent of the Lender: 

58

	13.9.1 	
      enter into, invest in or acquire (or agree to acquire)
      any shares, stocks, securities or other interest in any Joint Venture;
      or

	 	 
	13.9.2 	
      transfer any assets or lend to or guarantee or give an
      indemnity for or give Security for the obligations of a Joint Venture or
      maintain the solvency of or provide working capital to any Joint Venture
      (or agree to do any of the foregoing).

	13.10 	
      Holding Companies

	 	 
		
      N1C Resources, N2C Resources and Plateau shall not trade,
      carry on any business, own any assets or incur any liabilities except
      for:

	13.10.1 	
      the provision of administrative services (excluding
      treasury services) to other members of the Anooraq Group of a type
      customarily provided by a Holding Company to its Subsidiaries;

	 	 
	13.10.2 	
      ownership of shares in its Subsidiaries, intra-Group
      debit balances, intra- Group credit balances and other credit balances in
      bank accounts, Cash and Cash Equivalent Investments but only if those
      shares (other than share in Excluded Subsidiaries), credit balances, Cash
      and Cash Equivalent Investments are subject to the Transaction Security
      (in form and substance satisfactory to the Lender);

	 	 
	13.10.3 	
      any liabilities under the Transaction Documents to which
      it is a party and professional fees and administration costs in the
      ordinary course of business as a holding
company.

	13.11 	
      Mining Licenses and New Order Rights

	 	 
		
      Each Obligor shall ensure that, subject to clause 13.28
      (Conditions Subsequent):

	13.11.1 	
      each member of the Plateau Group, other than the Project
      Companies, has been granted all Mining Licences and New Order Rights
      required by it for the lawful conduct of its business and which are
      material for the conduct of its business;

	 	 
	13.11.2 	
      the Mining Licences and New Order Rights which are
      material to the conduct of any member of the Plateau Group’s business,
      other than that of the Project Companies, are in full force and effect and
      that each member of the Plateau Group, to the extent applicable to it, is
      in compliance in all material respects with all provisions thereof;
    and

	 	 
	13.11.3 	
      all relevant steps are taken to ensure that each Project
      Company applies for and obtains all Mining Licenses and New Order Rights
      required by it for the lawful conduct of its business and which are
      material for the conduct of its business and that once such Mining
      Licenses and New Order Rights are obtained, to the extent applicable to
      it, it is in compliance in all material respects with all provisions
      thereof.

	13.12 	
      Preservation of assets

	 	 
		
      Each Obligor (other than the Parent) shall (and the
      Parent and Plateau shall ensure that each member of the Plateau Group
      will) maintain in good working order and condition (ordinary wear and tear
      excepted) all of its assets necessary in the conduct of its
    business.

59

	13.13 	
      Pari passu ranking

	 	 
		
      Each Obligor shall ensure that at all times any unsecured
      and unsubordinated claims of a Finance Party against it or any member of
      the Plateau Group under the Finance Documents rank at least pari passu
      with the claims of all its other unsecured and unsubordinated
      creditors except those creditors whose claims are mandatorily preferred by
      laws of general application to companies.

	 	 
	13.14 	
      Negative pledge

	 	 
		
      In this Clause 13.14, “Quasi-Security” means a
      transaction described in paragraph 13.14.2 below.

	 	 
		
      Except as permitted under paragraph 13.14.3
  below:

	13.14.1 	
      No Obligor shall (and the Parent and Plateau shall ensure
      that no other member of the Plateau Group will) create or permit to
      subsist any Security over any of its assets.

	 	 
	13.14.2 	
      No Obligor shall (and the Parent and Plateau shall ensure
      that no other member of the Plateau Group
will):

	 	(a) 	
      sell, transfer or otherwise dispose of any of its assets
      on terms whereby they are or may be leased to or re-acquired by an Obligor
      or any other member of the Plateau Group;

	 	 	 
	 	(b) 	
      sell, transfer or otherwise dispose of any of its
      receivables on recourse terms;

	 	 	 
	 	(c) 	
      enter into any arrangement under which money or the
      benefit of a bank or other account may be applied, set-off or made subject
      to a combination of accounts; or

	 	 	 
	 	(d) 	
      enter into any other preferential arrangement having a
      similar effect,

in circumstances where the arrangement
or transaction is entered into primarily as a method of raising Financial
Indebtedness or of financing the acquisition of an asset. 

	13.14.3 	
      Paragraphs 13.14.1 and 13.14.2 above do not apply to any
      Security or (as the case may be) Quasi-Security, which is:

	 	 	 
		(a) 	
      Permitted Security;

	 	 	 
		(b) 	
      a Permitted Transaction; or

	 	 	 
		(c) 	
      granted by the Parent to any person, provided such
      Security or Quasi Security is not given over the shares held by the Parent
      in N1C Resources or the loan claims of the Parent against N1C
      Resources.

	13.15 	
      Disposals

	 	 	 
	13.15.1 	
      Except as permitted under paragraph 13.15.2 below, no
      Obligor shall (and the Parent and Plateau shall ensure that no member of
      the Plateau Group will) enter into a single transaction or a series of
      transactions (whether related or not) and whether voluntary or involuntary
      to sell, lease, transfer or otherwise dispose of any
  asset.

60

	13.15.2 	
      Paragraph 13.15.1 above does not apply to any sale,
      lease, transfer or other disposal which is:

	 	 	 
		(a) 	
      a Permitted Disposal;

	 	 	 
		(b) 	
      a Permitted Transaction; or

	 	 	 
		(c) 	
      made by the Parent, provided it is not a disposal of the
      shares held by the Parent in N1C Resources or the loan claims of the
      Parent against N1C Resources.

	13.16 	
      Arm's length basis

	13.16.1 	
      Except as permitted by paragraph 13.16.2 below, no
      Obligor (other than the Parent) shall (and the Parent and Plateau shall
      ensure no member of the Plateau Group will) enter into any transaction
      with any person except on arm's length terms and for fair market
    value.

	 	 	 
	13.16.2 	
      The following transactions shall not be a breach of this
      Clause 13.16:

	 	 	 
		(a) 	
      intra-Group loans permitted under Clause 13.17 (Loans or
      credit);

	 	 	 
		(b) 	
      fees, costs and expenses payable under the Transaction
      Documents in the amounts set out in the Transaction Documents or agreed by
      the Lender;

	 	 	 
		(c) 	
      any Permitted Transactions.

	13.17 	
      Loans or credit

	13.17.1 	
      Except as permitted under paragraph 13.17.2 below, no
      Obligor (other than the Parent) shall (and the Parent and Plateau shall
      ensure that no member of the Plateau Group will) be a creditor in respect
      of any Financial Indebtedness.

	 	 	 
	13.17.2 	
      Paragraph 13.17.1 above does not apply to:

	 	 	 
		(a) 	
      a Permitted Loan; or

	 	 	 
		(b) 	
      a Permitted Transaction.

	13.18 	
      No Guarantees or
indemnities

	13.18.1 	
      Except as permitted under paragraph 13.18.2 below, no
      Obligor (other than the Parent) shall (and the Parent and Plateau shall
      ensure that no member of the Plateau Group will) incur or allow to remain
      outstanding any guarantee in respect of any obligation of any
    person.

	 	 	 
	13.18.2 	
      Paragraph 13.18.1 does not apply to:

	 	 	 
		(a) 	
      a guarantee which is a Permitted Transaction;
or

	 	 	 
		(b) 	
      a guarantee which is a Permitted
  Guarantee.

	13.19 	
      Dividends and share
redemption

	13.19.1 	
      Except as permitted under paragraph 13.19.2 below,
      Plateau shall not (and the Parent and Plateau will ensure that no other
      member of the Plateau Group (other than N1C Resources or N2C Resources)
      will):

61

	 	(a) 	
      declare, make or pay any dividend, charge, fee or other
      distribution (or interest on any unpaid dividend, charge, fee or other
      distribution) (whether in cash or in kind) on or in respect of its share
      capital (or any class of its share capital);

	 	 	 
	 	(b) 	
      repay or distribute any dividend or share premium
      reserve;

	 	 	 
	 	(c) 	
      pay or allow any member of the Plateau Group to pay any
      management, advisory or other fee to or to the order of any of the direct
      or indirect shareholders of any member of the Plateau Group or any of
      their respective Affiliates; or

	 	 	 
	 	(d) 	
      redeem, repurchase, defease, retire or repay any of its
      share capital or resolve to do so.

	13.19.2 	
      Paragraph 13.19.1 above does not apply to:

	 	 	 
		(a) 	
      a Permitted Distribution;

	 	 	 
		(b) 	
      a Permitted Payment; or

	 	 	 
		(c) 	
      a Permitted Transaction.

	13.20 	
      Financial Indebtedness

	13.20.1 	
      Except as permitted under paragraph 13.20.2 below, no
      Obligor (other than the Parent) shall (and the Parent and Plateau shall
      ensure that no member of the Plateau Group will) incur or allow to remain
      outstanding any Financial Indebtedness.

	 	 	 
	13.20.2 	
      Paragraph 13.20.1 above does not apply to Financial
      Indebtedness which is:

	 	 	 
		(a) 	
      Permitted Financial Indebtedness; or

	 	 	 
		(b) 	
      a Permitted Transaction.

	13.21 	
      Share capital

	 	 	 
		
      No Obligor shall (and the Parent and Plateau shall ensure
      no member of the Plateau Group will) issue any shares except pursuant
      to:

	 	 	 
		(a) 	
      a Permitted Share Issue; or

	 	 	 
		(b) 	
      a Permitted Transaction.

	 	 	 
	13.22 	
      Access

	 	 	 
		
      If a Default is continuing or the Lender reasonably
      suspects a Default is continuing or may occur, then each Obligor shall,
      and the Parent and Plateau shall ensure that each member of the Plateau
      Group will, (not more than once in every financial year unless the Lender
      reasonably suspects a Default is continuing or may occur) permit the
      Lender and/or the Plateau Security SPV and/or the Opco Security SPV and/or
      accountants or other professional advisers and contractors of the Lender,
      the Security Agent and/or the Plateau Security SPV and/or the Opco
      Security SPV free access at all reasonable times and on reasonable notice
      to (a) the premises, assets, books, accounts and records of each member of
      the Pelawan group and (b) meet and discuss matters with senior management
      of the Pelawan Group.

62

	13.23 	
      Amendments

	 	 	 
	13.23.1 	
      No Obligor shall (and the Parent and Plateau shall ensure
      that no member of the Plateau Group will) amend, vary, novate, supplement,
      supersede, waive or terminate any term of a Transaction Document or,
      except in the form of the Transaction Documents as at the Signature Date,
      enter into any agreement with any direct or indirect shareholders of the
      Parent holding more than 10 per cent. of the issued share capital of the
      Parent, or any of their Affiliates which is not a member of the Pelawan
      Group except in writing and with the consent of the Lender, and subject to
      any applicable restrictions in the Global Intercreditor
  Agreement.

	 	 
	13.23.2 	
      Plateau shall promptly supply to the Lender a copy of any
      document relating to any of the matters referred to in paragraph 13.23.1
      above.

	13.24 	
      Financial assistance

	 	 
		
      Each Obligor shall (and the Parent and Plateau shall
      procure each member of the Plateau Group will) comply in all respects with
      Section 38 of the South African Companies Act, 1973 and any equivalent
      legislation in other jurisdictions including in relation to the execution
      of the Transaction Security Documents and payment of amounts due under
      this Agreement.

	 	 
	13.25 	
      Treasury Transactions

	 	 
		
      No Obligor shall (and the Parent and Plateau will procure
      that no members of the Plateau Group will) enter into any Treasury
      Transaction, other than:

	13.25.1 	
      the hedging transactions contemplated by the Plateau
      Hedging Letter and the Structure Memorandum and documented by the Plateau
      Hedging Documents (each as defined in the Senior Facility
    Agreement);

	 	 
	13.25.2 	
      spot delivery foreign exchange contracts entered into in
      the ordinary course of business and not for speculative purposes
  and

	 	 
	13.25.3 	
      any other Treasury Transaction which is entered into to
      hedge actual or projected exposures arising in the ordinary course of
      trading of Opco or a Project Company.

	13.26 	
      Finance Documents

	13.26.1 	
      The Obligors shall ensure that:

	 	 	 	 
		(a) 	
      the Finance Documents (as well as any rights, benefits or
      exemptions available thereunder) shall:

	 	 	 	 
			(i) 	
      subject only to execution thereof and, where applicable,
      registration, be enforceable, in full force and effect and all suspensive
      conditions and conditions precedent thereto shall have been
    satisfied;

	 	 	 	 
			(ii) 	
      not be terminated, cancelled or revoked by any party
      thereto or the rights thereto assigned or transferred (in whole or in
      part) to any person other than pursuant to the Finance
Documents;

	 	 	 	 
		(b) 	
      no rights or claims for damages or penalties shall arise
      under any Opco Security Document, Holdco Security Document or Plateau
      Security

63

	 		
      Document in favour of any member of the Plateau Group
      other than pursuant to the Finance Documents

	 	 	 
	 	(c) 	
      any member of the Pelawan Group who is a party to any
      Transaction Security Document complies with its obligations
    thereunder.

	13.26.2 	
      The Lender, the Security Agent, the Opco Security SPV or
      the Plateau Security SPV shall at all times be entitled and be capable
      (directly or indirectly) of exercising and enforcing the rights given or
      purported to be given under or in connection with the Transaction Security
      Documents.

	 	 
	13.26.3 	
      No member of the Anooraq Group shall exercise any of its
      rights under any Finance Document, if such exercise would be contrary to
      the provisions of the Global Intercreditor Agreement.

	 	 
	13.26.4 	
      Except for Permitted Payments and a Permitted
      Distribution under paragraph (i) of the definition of “Permitted
      Distribution”, no Obligor shall (and the Parent and Plateau shall
      ensure that no member of the Plateau Group
will):

	 	(a) 	
      repay or prepay any principal amount (or capitalised
      interest) outstanding under the Finance Documents;

	 	 	 
	 	(b) 	
      pay any interest or any other amounts payable in
      connection with the Finance Documents; or

	 	 	 
	 	(c) 	
      purchase, redeem, defease or discharge any amount
      outstanding with respect to the Finance
Documents.

	13.26.5 	
      All payments to be made under the RPM Funding Loan
      Agreement and the Plateau Funding Loan Agreement shall be made on a pro
      rata and pari passu basis to RPM and Plateau
respectively.

	 	 
	13.26.6 	
      All payments to be made by Holdco in respect of the RPM
      Holdco A Preference Shares and the Plateau Holdco A Preference Shares
      shall be made on a pro rata and pari passu basis to RPM and Plateau
      respectively.

	13.27 	
      Further assurance

	13.27.1 	
      Each Obligor (other than the Parent) shall (and the
      Parent and Plateau shall procure that each member of the Pelawan Group
      will) promptly do all such acts or execute all such documents (including
      assignments, transfers, mortgages, charges, notices, powers of attorney
      and instructions) as the Security Agent and/or the Plateau Security SPV
      may reasonably specify (and in such form as the Security Agent and/or the
      Plateau Security SPV may reasonably require in favour of the Security
      Agent and/or the Plateau Security SPV and/or the Opco Security SPV or its
      nominee(s)):

	 	 	 
		(a) 	
      to perfect the Security created or intended to be created
      under or evidenced by the Transaction Security Documents (which may
      include the execution of a mortgage, charge, assignment, cession or other
      Security over all or any of the assets which are, or are intended to be,
      the subject of the Transaction Security) or for the exercise of any
      rights, powers and remedies of the Security Agent and/or the Plateau
      Security SPV and/or the Opco Security SPV or the Finance Parties provided
      by or pursuant to the Finance Documents or by law;

64

	 	(b) 	
      to confer on the Security Agent and/or the Plateau
      Security SPV and/or the Opco Security SPV or confer on the Finance
      Parties, Security over any property and assets of each member of the
      Pelawan Group, (other than the Project Companies) located in any
      jurisdiction equivalent or similar to the Security intended to be
      conferred by or pursuant to the Transaction Security Documents;
    and/or

	 	 	 
	 	(c) 	
      to facilitate the realisation of the assets which are, or
      are intended to be, the subject of the Transaction
  Security.

	13.27.2 	
      Each Obligor (other than Parent) shall (and the Parent
      and Plateau shall procure that each member of the Pelawan Group will)
      promptly do all such acts or execute all such documents (including the
      execution of any and all powers of attorney, notices and instructions) as
      the Security Agent may specify (and in such form as the Security Agent may
      require) in favour of the Opco Security SPV or its nominees to confer on
      the Opco Security SPV, Security over any mills or plants constructed
      (including in the form of a special notarial bond over such identifiable
      assets comprising the whole or any portion of the mills or plants or any
      component thereof).

	13.28 	
      Conditions subsequent

	13.28.1 	
      The Parent and Plateau shall procure that:

	 	 	 
		(a) 	
      in compliance with the MPRD Act and schedules thereto,
      the Old Order Rights converted into New Order Rights in terms of the
      Transitional Arrangements contemplated by Schedule II of the MPRD Act are
      lodged at the Mining Titles Office for registration and simultaneously at
      the Deeds Office or the Mining Titles Office for deregistration of the Old
      Order Rights, within 90 (ninety) days from the date on which the relevant
      member of Plateau Group or its Affiliate (as applicable) received notice
      of conversion of the Old Order Rights; and

	 	 	 
		(b) 	
      any and all information reasonably requested by the
      Lender in connection with compliance with the provisions of (a) above, is
      provided promptly to the Lender.

	 	 	 
	13.28.2 	
      The Parent and Plateau shall procure that:

	 	 	 
		(a) 	
      within 30 (thirty) days of the date of execution of the
      New Order Rights all of the documents required by the Senior Agent
      (including powers of attorney attaching the relevant Opco Security
      Documents) relating to the Opco Security Documents referred to in
      paragraph 5 of Part 1 of Schedule 2 (Transaction Security Document) are
      signed and delivered to the Senior Agent and all other steps taken to
      allow for the Senior Agent to lodge such Opco Security Documents for
      registration at the Mineral and Petroleum Titles Registration Office and
      that all associated fees are paid; and

	 	 	 
		(b) 	
      all reasonable commercial endeavours are used by them and
      each other member of Plateau Group to achieve registration of such Opco
      Security Documents as soon as reasonably possible after lodgement for
      registration.

	 	 	 
	13.28.3 	
      The steps taken in 13.28.2 above shall, to the extent
      applicable, include the application for any Ministerial or other consents
      that may be required for the lodgement and/or registration of the relevant
      Opco Security Documents.

65

	13.28.4 	
      Plateau shall procure that any documents required by the
      Lender (including powers of attorney) relating to the Opco Security
      Documents referred to in paragraphs 2 to 4 of Part 1 of Schedule 2
      (Transaction Security Document) which are not delivered on or
      before the Closing Date are signed and delivered to the Lender and all
      other steps are taken to allow for the Lender to lodge such Opco Security
      Documents for registration at the applicable Deeds Registries under the
      Deeds Registries Act, 1946 of South Africa and that all associated fees
      are paid.

	 	 
	13.28.5 	
      Each Obligor (other than the Parent) shall (and the
      Parent and Plateau shall procure that each member of the Pelawan Group
      shall) take all such action as is available to it (including making all
      filings and registrations) as may be necessary for the purpose of the
      creation, perfection, protection or maintenance of any Security conferred
      or intended to be conferred on the Plateau Security SPV, the Opco Security
      SPV or any other Finance Party by or pursuant to the Finance
    Documents.

	13.29 	
      Account Bank

	 	 
		
      The Parent and Plateau shall ensure that all bank
      accounts of Plateau shall be opened and maintained with the Account Bank
      in accordance with the provisions of the Finance Documents and are subject
      to valid Security under the Transaction Security Documents.

	 	 
	13.30 	
      Accounts

	13.30.1 	
      By no later than 10 (ten) Business Days prior to the
      Closing Date, Plateau shall open a disbursement account (the
      “Disbursement Account”) in South Africa with the Account Bank
      denominated in Rand and shall maintain the Disbursement Account for a
      period of not less than 30 (thirty) days following the Closing
  Date.

	 	 
	13.30.2 	
      With effect from the Closing Date and thereafter until
      the date on which all the obligations and liabilities (other than
      contingent liabilities) of the Obligors under the Finance Documents are
      discharged in full and no Finance Party has any Loan Commitment, Plateau
      shall:

	 	(a) 	
      open and maintain a proceeds account (the “Borrower
      Proceeds Account”) in South Africa in its name with the Account Bank
      denominated in Rand;

	 	 	 
	 	(b) 	
      open and maintain a business account (the “Borrower
      Business Account”) in South Africa in its name with Standard Bank
      denominated in Rand;

	 	 	 
	 	(c) 	
      ensure that Holdco opens and maintains a business account
      (the “Holdco Business Account”) in South Africa in its name with
      Standard Bank denominated in Rand; and

	 	 	 
	 	(d) 	
      ensure that Opco opens and maintains a business account
      (the “Opco Business Account”) in South Africa in its name with
      Standard Bank.

	13.30.3 	
      Plateau shall:

	 	 	 
		(a) 	
      not open or maintain any bank, deposit, savings or other
      account except for the Disbursement Account, the Borrower Proceeds Account
      and the Borrower Business Account and the bank account into
  which

66

	 		
      the proceeds of Permitted Financial Indebtedness referred
      to in paragraph (l) of the definition of “Permitted Financial
      Indebtedness” shall be paid and provided that account is opened solely for
      that purpose and is closed immediately after that purpose is achieved and
      that Permitted Financial Indebtedness discharged and a bank account into
      which provisions for the redemption of the RPM Preference Shares may be
      paid, but only to the extent such provision is permitted under the Global
      Intercreditor Agreement;

	 	 	 
	 	(b) 	
      ensure that Holdco does not open or maintain any bank,
      deposit, savings or other account except for the Holdco Business Account
      and a bank account into which provisions for the redemption of the RPM
      Preference Shares may be paid, but only to the extent such provision is
      permitted under the Global Intercreditor Agreement; and

	 	 	 
	 	(c) 	
      ensure that Opco does not open or maintain any bank,
      deposit, savings or other account except for the Opco Business Account, or
      any other account which holds Cash or Cash Equivalent Investments so long
      as those Cash or Cash Equivalent Investments become subject to the
      Transaction Security in form and substance satisfactory to the Lender as
      soon as is reasonably practicable, and a bank account into which
      provisions for the redemption of the RPM Preference Shares may be paid,
      but only to the extent such provision is permitted under the Global
      Intercreditor Agreement,

in each case, without the prior
written consent of the Lender. 

	13.30.4 	
      Each Transaction Account shall be a separate account at
      the Account Bank or Standard Bank, as the case may be.

	 	 
	13.30.5 	
      If Plateau or Holdco receives any moneys for crediting to
      a Transaction Account in a currency other than in the currency of that
      Transaction Account, Plateau shall request the Account Bank or Standard
      Bank as the case may be, to convert these moneys into the relevant
      currency of account at the Applicable Spot Rate of Exchange.
      “Applicable Spot Rate of Exchange” means the Account Bank’s or
      Standard Bank’s spot rate of exchange quoted by the Account Bank or
      Standard Bank (as applicable) as a market related rate for the purchase of
      the relevant currency with Rands in the Johannesburg foreign exchange
      market at or about 11:00 a.m. Johannesburg time on a particular
  day.

	 	 
	13.30.6 	
      Plateau shall at all times indemnify and keep indemnified
      Lender, the Security Agent and the Plateau Security SPV fully and
      effectually from and against all liabilities, costs and expenses which it
      may incur to the Account Bank or Standard Bank, as the case may be, (or
      their affiliates and/or nominees) in connection with the opening,
      operation or closure of any Transaction Account, including transaction
      charges, save to the extent that such liabilities, costs and expenses
      result from the negligence or wilful default of the Lender, the Security
      Agent or the Plateau Security SPV (as the case may
be).

	13.31 	
      Withdrawals

	13.31.1 	
      No payments to, or withdrawals from, any Transaction
      Account (other than the Disbursement Account) shall be made after the
      Closing Date except as expressly permitted by this Clause 13.31 or clause
      13.33.

67

	13.31.2 	
      None of Plateau, Holdco or Opco may make any withdrawal
      from any Transaction Account:

	 	 	 
		(a) 	
      if, prior to the date of the proposed withdrawal, the
      Lender notifies the Account Bank or Standard Bank, as the case may be,
      that the withdrawal is not or would not be permitted under any Finance
      Document; or

	 	 	 
		(b) 	
      if that Transaction Account would thereby become
      overdrawn, except in relation to the Opco Business Account (as defined in
      the Senior Facility Agreement), but provided that the overdraft amount
      represents Permitted Financial Indebtedness.

	 	 	 
	13.31.3 	
      If, at any time an Event of Default is continuing, the
      Lender may, by written notice to the Account Bank or Standard Bank, as the
      case may be, specify that no withdrawals from the Borrower Proceeds
      Account or the Borrower Business Account maintained with such bank may be
      made without the prior written consent of the Lender.

	 	 	 
	13.31.4 	
      If, at any time a Fundamental Event of Default has
      occurred the Lender may, by written notice to the Account Bank or Standard
      Bank, as the case may be, specify that no withdrawals from all or any of
      the Transaction Accounts maintained with such bank may be made without the
      prior written consent of the Lender.

	 	 	 
	13.31.5 	
      All amounts withdrawn from any Transaction Account by
      Plateau, Holdco or Opco, as the case may be, for application in or towards
      making a specific payment or meeting a specific liability specified in the
      Global Intercreditor Agreement shall be applied in or towards making that
      payment or meeting that liability as specified in the Global Intercreditor
      Agreement, and for no other purpose provided that if, at any time there
      are proceeds standing to the credit of the Opco Business Account which are
      not immediately required to meet any liabilities of Opco, Opco shall be
      entitled to withdraw such amounts from the Opco Business Account and
      invest such amounts in Cash or Cash Equivalent Investments only once a
      calendar month though.

	 	 	 
	13.31.6 	
      Clauses 13.31.1 and 13.31.2 shall not prevent the Lender,
      by notice to the Account Bank or Standard Bank, as the case may be,
      Plateau and (if applicable) Holdco or Opco, as the case may be, from
      permitting transfers between any Transaction Account after the occurrence
      of a Default or Event of Default and before it is waived or
    remedied.

	 	 	 
	13.31.7 	
      None of the restrictions on the withdrawal of funds from
      a Transaction Account contained in this Clause 13.31 shall affect the
      obligations of Plateau or any other Obligor to make all payments of any
      amount required to be made by each of them, on the due date for payment
      thereof in accordance with the Finance
Documents.

	13.32 	
      Access to books and
records

	13.32.1 	
      Plateau irrevocably grants the Lender or any of its
      appointed representatives access to review the books and records of its
      Transaction Accounts on reasonable prior notice. Plateau authorises the
      Account Bank and Standard Bank to give the Lender, unrestricted access on
      reasonable prior notice to review such books and records relating to the
      Transaction Accounts held by the Account Bank and Standard Bank for the
      purpose of monitoring compliance with the Finance
  Documents.

68

	13.32.2 	
      Nothing in this Clause 13.32 shall require the Account
      Bank to disclose to any person any books, records or other information
      which the Account Bank would not be required to disclose to
  Plateau.

	13.33 	
      Proceeds Accounts, Opco Business Account and Borrower
      Business Account

	13.33.1 	
      Plateau shall procure that all proceeds from:

	 	 	 
		(a) 	
      any payment made to Plateau in accordance with the terms
      of any Transaction Document;

	 	 	 
		(b) 	
      any repayment of principal or interest under the Plateau
      Loan Agreement;

	 	 	 
		(c) 	
      any utilisation of or advance under the Standby Facility;
      and/or

	 	 	 
		(d) 	
      any utilisation of or advance under the OCSF Facility
      Agreement,

	 	 	 
		
      is paid directly into the Borrower Proceeds Account in
      cleared funds.

	 	 	 
	13.33.2 	
      Plateau shall procure that all proceeds from:

	 	 	 
		(a) 	
      any payment made to Holdco in accordance with the terms
      of any Transaction Document;

	 	 	 
		(b) 	
      any repayment of principal or interest under the Opco
      Funding Loan Agreement; and/or

	 	 	 
		(c) 	
      amounts standing to the credit of the Borrower Proceeds
      Account which represent the proceeds of (x) any utilisation or advance
      under the OCSF Facility or (y) the proceeds of any amount to be advanced
      by RPM to Holdco under the RPM Funding Loan Agreement (in relation to the
      operational requirements of Opco),

	 	 	 
		
      is paid directly into the Holdco Business Account in
      cleared funds.

	 	 	 
	13.33.3 	
      Plateau shall procure that:

	 	 	 
		(a) 	
      all Opco Business Revenue and all amounts standing to the
      credit of the Holdco Business Account which represent the proceeds of any
      amount to be advanced by Holdco to Opco under the Opco Funding Loan
      Agreement which are derived from (x) any utilisation or advance under the
      RPM Funding Loan Agreement or (y) any utilisation or advance under the
      Plateau Funding Loan Agreement (in relation to the operational
      requirements of Opco) is paid directly into the Opco Business Account in
      cleared funds; and

	 	 	 
		(b) 	
      all Borrower Business Revenue is paid directly into the
      Borrower Proceeds Account in cleared funds.

	 	 	 
	13.33.4 	
      Plateau shall:

	 	 	 
		(a) 	
      cause to be applied the balance standing to the credit of
      the Borrower Proceeds Account in cleared funds for the purposes, and in
      the order of priority, set out in the Borrower Cash Waterfall in the
      Global Intercreditor Agreement;

69

	 	(b) 	
      cause to be applied the balance outstanding to the credit
      of the Borrower Business Account in cleared funds for the purposes of
      meeting its administrative, operating and Capital Expenditure;

	 	 	 
	 	(c) 	
      ensure that Holdco causes to be applied the balance
      standing to the credit of the Holdco Business Account in cleared funds for
      the purposes, and in the order of priority, set out in the Holdco Cash
      Waterfall in the Global Intercreditor Agreement; and

	 	 	 
	 	(d) 	
      ensure that Opco causes to be applied the balance
      standing to the credit of the Opco Business Account in cleared funds for
      the purposes, and in the order of priority, set out in the Opco Cash
      Waterfall in the Global Intercreditor
Agreement.

	13.34 	
      Anooraq listing

	 	 
		
      The Parent undertakes to use reasonable commercial
      endeavours to transfer the primary listing of the Anooraq Common Shares
      from the TSX-V (Toronto Stock Exchange Venture Exchange) to the TSX main
      board as soon as reasonably possible after the Closing Date.

	 	 
	13.35 	
      Amendments to Senior Finance Documents

	 	 
		
      No Obligor shall agree to any amendments to or variation
      of the Senior Finance Documents (as defined in the Global Intercreditor
      Agreement) without the prior written consent of the Lender, which consent
      shall not be unreasonably withheld.

	 	 
	13.36 	
      Reduction of Pelawan Investments shareholding in the
      Parent

	13.36.1 	
      Pelawan Investments and the Parent will use their
      reasonable commercial endeavours to, as soon as reasonably practical after
      the Closing Date, obtain the approval of the South African Reserve Bank
      and the National Treasury (to the extent required) to reduce the minimum
      shareholding held by Pelawan Investments in the Parent to below 51%. Upon
      such approvals being granted, all proceeds received by Pelawan Investments
      and/or the Parent pursuant to the sale and/or issue of Anooraq Common
      Shares shall be injected into Plateau by way of shareholder
loan.

	 	 	 
	13.36.2 	
      If Plateau, the Parent and the Lender have:

	 	 	 
		(a) 	
      identified and agreed to proceed with capital project not
      envisaged in the Base Case Model in the form as at the Signature Date and
      to be held directly or indirectly by HoldCo; or

	 	 	 
		(b) 	
      agreed to another dedicated use of such
  proceeds,

	 	 	 
		
      then Plateau may utilise such proceeds to fund its
      portion of the funding required for such project or dedicated use of
      proceeds, failing which Plateau shall utilise such proceeds to settle all
      or a portion of the Standby Facility and the OCSF Facility and to redeem
      the RPM Plateau A Preference Shares in accordance with the provisions of
      the Global Intercreditor Agreement and in particular, the Borrower Cash
      Waterfall.

	14. EVENTS OF DEFAULT
	 	 
	
      Each of the events or circumstances set out in this
      Clause 14 is an Event of Default (save for Clause 14.18
      (Acceleration)).

70

	14.1 	
      Non-payment

	 	 
		
      An Obligor or member of the Pelawan Group does not pay on
      the due date any amount payable pursuant to a Finance Document at the
      place at and in the currency in which it is expressed to be payable
      unless:

	14.1.1 	
      its failure to pay is caused by an administrative or
      technical error; and

	 	 
	14.1.2 	
      payment is made within 2 (two) Business Days of its due
      date.

	14.2 	
      Information Undertakings and other
    obligations

	14.2.1 	
      Plateau or the Parent does not comply with the provisions
      of Clause 12 (Information Undertakings), provided that where no time
      period is specified for the delivery of documents or information under
      Clause 12 non delivery of such documents or information shall only be an
      Event of Default if such documents or information are not delivered within
      5 (five) Business Days of the occurrence of the relevant event giving rise
      to the notification or delivery obligation.

	 	 
	14.2.2 	
      An Obligor or member of the Plateau Group does not comply
      with any provision of any Transaction Security
Document.

	14.3 	
      Other obligations

	14.3.1 	
      An Obligor or member of the Plateau Group does not comply
      with any provision of the Transaction Documents (other than those referred
      to in Clause 14.1 (Non-payment) and Clause 14.2 (Information Undertakings
      and other obligations)).

	 	 
	14.3.2 	
      No Event of Default under paragraph 14.3.1 above will
      occur if the failure to comply is capable of remedy and is remedied within
      7 (seven) Business Days of the Lender giving notice to Plateau or Plateau
      becoming aware of the failure to comply.

	14.4 	
      Misrepresentation

	 	 
		
      Any representation or statement made or deemed to be made
      by an Obligor or member of the Pelawan Group in the Finance Documents or
      any other document delivered by or on behalf of any Obligor under or in
      connection with any Finance Document is or proves to have been materially
      incorrect or misleading when made or deemed to be made.

	 	 
	14.5 	
      Cross default

	14.5.1 	
      Any Financial Indebtedness of any Obligor or any member
      of the Plateau Group is not paid when due or within any originally
      applicable grace period.

	 	 
	14.5.2 	
      Any Financial Indebtedness of any Obligor or any member
      of the Plateau Group is declared to be or otherwise becomes due and
      payable prior to its specified maturity as a result of an event of default
      (however described).

	 	 
	14.5.3 	
      Any commitment for any Financial Indebtedness of any
      Obligor or any member of the Plateau Group is cancelled or suspended by a
      creditor of any member of the Plateau Group as a result of an event of
      default (however described).

71

	14.5.4 	
      Any creditor of any Obligor or any member of the Plateau
      Group becomes entitled to declare any Financial Indebtedness of any
      Obligor or any member of the Plateau Group due and payable prior to its
      specified maturity as a result of an event of default (however
      described).

	 	 	 
	14.5.5 	
      No Event of Default will occur under this Clause 14.5
      if:

	 	 	 
		(a) 	
      the aggregate amount of Financial Indebtedness or
      commitment for Financial Indebtedness falling within paragraphs 14.5.1 to
      14.5.4 above is, in relation to Opco, less than ZAR5,000,000 (Indexed) (or
      its equivalent in any other currency or currencies), or in relation to
      Holdco or Plateau, is less than ZAR1,000,000 (Indexed) ; or

	 	 	 
		(b) 	
      the Financial Indebtedness or commitment for Financial
      Indebtedness falling within paragraphs 14.5.1 to 14.5.4 above is in
      relation to Project Finance Borrowings of a Project Company (provided, for
      the avoidance of doubt, that no creditor of a Project Company has any
      recourse to any member of the Plateau Group other than that Project
      Company in respect of such Project Finance
Borrowings).

	14.6 	
      Insolvency

	14.6.1 	
      An Obligor or a member of the Plateau Group, other than a
      Project Company, is unable or admits inability to pay its debts as they
      fall due or is deemed to or declared to be unable to pay its debts under
      applicable law, suspends or threatens to suspend making payments on any of
      its debts or, by reason of actual or anticipated financial difficulties,
      commences negotiations with one or more of its creditors with a view to
      rescheduling any of its indebtedness.

	 	 
	14.6.2 	
      The value of the assets of any Obligor or any member of
      the Plateau Group, other than a Project Company, is less than its
      liabilities (taking into account contingent and prospective liabilities,
      but excluding any liabilities which are subordinated to the liabilities of
      the Obligor to the Lender).

	 	 
	14.6.3 	
      A moratorium is declared in respect of any indebtedness
      of any Obligor or any member of the Plateau Group, other than a Project
      Company. If a moratorium occurs, the ending of the moratorium will not
      remedy any Event of Default caused by that
moratorium.

	14.7 	
      Insolvency proceedings

	14.7.1 	
      Any corporate action, legal proceedings or other
      procedure or step is taken in relation to:

	 	 	 
		(a) 	
      the suspension of payments, a moratorium of any
      indebtedness, winding-up, dissolution, administration or reorganisation
      (by way of voluntary arrangement, scheme of arrangement or otherwise) of
      any Obligor or any member of the Plateau Group, other than a Project
      Company;

	 	 	 
		(b) 	
      a composition, compromise, assignment or arrangement with
      any creditor of any Obligor or any member of the Plateau Group, other than
      a Project Company;

	 	 	 
		(c) 	
      the appointment of a liquidator, receiver, administrator,
      administrative receiver, compulsory manager or other similar officer in
      respect of any

72

		
      Obligor or any member of the Plateau Group, other than a
      Project Company, or any of its assets; or

	 	 	 
		(d) 	
      enforcement of any Security over any assets of any
      Obligor or any member of the Plateau Group, other than a Project Company,
      where the claim giving rise to such enforcement is for an amount of more
      than ZAR5,000,000 (Indexed) ,

	 	 	 
		
      or any analogous procedure or step is taken in any
      jurisdiction.

	 	 	 
	14.7.2 	
      Paragraph 14.7.1 shall not apply to:

	 	 	 
		(a) 	
      any winding-up petition which is frivolous or vexatious
      and is discharged, stayed or dismissed either (x) within 10 (ten) days of
      commencement or, if earlier, the date on which it is advertised or (y)
      within such other period as agreed to in writing by the Lender on or
      before the lapse of the 10 (ten) day period referred to in (x) provided,
      for the avoidance of doubt, the Lender is not obliged to agree to any such
      extended period; or

	 	 	 
		(b) 	
      any step or procedure contemplated by paragraph 14.7.2 of
      the definition of Permitted Transaction; or

	 	 	 
		(c) 	
      any enforcement of any Security over any assets of any
      Obligor or any member of the Plateau Group as contemplated by paragraph
      14.7.1(d) above, if the relevant Obligor or any member of the Plateau
      Group, as applicable, takes steps to oppose such legal proceedings within
      the time frames allowed by the rules of court and before any final order
      is granted and provides evidence to the reasonable satisfaction of the
      Lender that its opposition of such enforcement proceedings has
    merit.

	14.8 	
      Creditors' process

	 	 	 
	14.8.1 	
      Any expropriation, attachment, distress or execution or
      any analogous process in any jurisdiction affects any asset or assets of
      any Obligor or any member of the Plateau Group, other than a Project
      Company, and is not discharged either (x) within 10 (ten) days or (y)
      within such other period as agreed to in writing by the Lender on or
      before the lapse of the 10 (ten) day period referred to in (x), provided,
      for the avoidance of doubt, the Lender is not obliged to agree to any such
      extended period.

	 	 
	14.8.2 	
      Paragraph 14.8.1 shall not apply if the fair value of the
      relevant asset or assts is, in relation to Opco, ZAR5,000,000 (Indexed) or
      less, or in relation to Holdco or Plateau, ZAR1,000,000 (Indexed) or
      less.

	 	 	 
	14.9 	
      Unlawfulness and invalidity

	 	 	 
	14.9.1 	
      It is or becomes unlawful for an Obligor or any other
      member of the Plateau Group that is a party to any Transaction Document to
      perform any of its obligations under the Transaction Documents or any
      Transaction Security created or expressed to be created or evidenced by
      the Transaction Security Documents ceases to be effective.

	 	 
	14.9.2 	
      Any obligation or obligations of any Obligor or any
      member of the Plateau Group under any Transaction Document are not
      (subject to the Legal Reservations) or cease to be legal, valid, binding
      or enforceable and the

73

		
      cessation individually or cumulatively materially and
      adversely affects the interests of the Lender under the Finance
      Documents.

	 	 
	14.9.3 	
      Any Transaction Document ceases to be in full force and
      effect or any Transaction Security ceases to be legal, valid, binding,
      enforceable or effective or is alleged by a party to it (other than a
      Finance Party) to be ineffective.

	14.10 	
      Intercreditor Agreements

	 	 
		
      Any party to the Global Intercreditor Agreement (other
      than a Finance Party) fails to comply in any material respects with the
      provisions of, or does not perform its obligations under the Global
      Intercreditor Agreement; or a representation or warranty given by that
      party in the Global Intercreditor Agreement is incorrect in any material
      respect.

	 	 
	14.11 	
      Cessation of business

	 	 
		
      Any Obligor or any member of the Plateau Group suspends
      or ceases to carry on (or threatens to suspend or cease to carry on) all
      or a material part of its business, unless it is a temporary suspension of
      the business of Opco:

	14.11.1 	
      which is required by law and provided such business
      resumes within 30 (thirty) days of the temporary suspension; or

	 	 
	14.11.2 	
      which arises as a result of Force Majeure but the Lender
      is satisfied (in its sole discretion) that there is adequate business
      interruption insurance in place for the whole period of
  suspension..

	14.12 	
      Mining Licenses and New Order Rights

	 	 
		
      Any Mining Licence or New Order Right which is material
      to the business of any member of the Plateau Group is materially and
      adversely amended or is terminated or not renewed (in each case, without a
      replacement being put in place with which the Lender is satisfied) or is
      otherwise adversely appealed or challenged.

	 	 
	14.13 	
      Audit qualification

	 	 
		
      The Auditors of any Obligor or any member of the Plateau
      Group qualify the audited annual consolidated financial statements of that
      Obligor or that member of the Plateau Group.

	 	 
	14.14 	
      Expropriation

	 	 
		
      The authority or ability of any Obligor or any member of
      the Plateau Group to conduct its business is limited or wholly or
      substantially curtailed by any seizure, expropriation, nationalisation,
      intervention, restriction or other action by or on behalf of any
      governmental, regulatory or other authority or other person in relation to
      any Obligor or any member of the Plateau Group or any of its
  assets.

	 	 
	14.15 	
      Repudiation and rescission of
  agreements

	14.15.1 	
      Any Obligor or any member of the Plateau Group (or any
      other relevant party) rescinds or repudiates a Finance Document or any of
      the Transaction Security or evidences an intention to rescind or repudiate
      a Finance Document or any Transaction Security.

74

	14.15.2 	
      Any party to the Transaction Documents rescinds or
      repudiates any of those agreements or instruments in whole or in part
      where to do so has or is, in the reasonable opinion of the Lender, likely
      to have a material adverse effect on the interests of the Lenders under
      the Finance Documents.

	14.16 	
      Litigation

	 	 
		
      Any litigation, arbitration, administrative,
      governmental, regulatory or other investigations, proceedings or disputes
      are commenced or threatened in relation to the Transaction Documents or
      the transactions contemplated in the Transaction Documents or against any
      Obligor or any member of the Plateau Group or its assets which is
      reasonably likely to be adversely determined and would reasonably be
      expected to have a Material Adverse Effect.

	 	 
	14.17 	
      Material adverse change

	 	 
		
      Any event or circumstance occurs which the Lender
      reasonably believes has or is reasonably likely to have a Material Adverse
      Effect.

	 	 
	14.18 	
      Senior Debt

	 	 
		
      A Senior Event of Default (as defined in the Global
      Intercreditor Agreement) other than an Excluded Default occurs and is
      continuing, it being recorded that, notwithstanding anything to the
      contrary contained in this Agreement no Event of Default shall occur under
      any provision of this Agreement solely as result of the occurrence of an
      Excluded Default unless the Senior Agent is instructed to take any of the
      actions referred to in clause 28.20 (Acceleration) of the Senior Facility
      Agreement as a result of the occurrence of such Excluded
Default.

	 	 
	14.19 	
      Anooraq listing

	 	 
		
      The listing of the Anooraq Common Shares on any
      applicable stock exchange is suspended, other than a suspension from the
      TSX-V (Toronto Stock Exchange Venture Exchange) pursuant to a transfer of
      such listing to the TSX main board, the Johannesburg Stock Exchange or
      AMEX (the American Stock Exchange) .

15. PAYMENTS 

	15.1 	All payments to be made by any Obligor to the
      Lender in terms of any Finance Document shall be made directly into the
      Lender’s bank account held with Standard Bank (Account: Rustenburg
      Platinum Mines Limited; Account No: 000 000 0175 722 ; Branch:
      Johannesburg Branch ; Branch code: 000 205) or such other bank account in
      South Africa of which, or in such other manner as, the Lender may
      notify the Obligor's Agent in writing from time to time. 
	  	 
	15.2 	All payments to be made to the Lender in terms
      of this Agreement shall be made free of exchange, any other costs, charges
      or expenses and without any deduction, set-off or counterclaim whatsoever.
    

	16. RENUNCIATION OF BENEFITS
	 
	
      Each Obligor renounces all benefits of the exceptions of
      excussion, division, “no value received”, “non numeratae pecuniae”,
      “non causa debiti”, and “errore calculi”, the meaning and
      effect of which it declares it understands.

75

	17. CERTIFICATE OF INDEBTEDNESS
	 
	
      A certificate signed by any director or manager of the
      Lender (whose appointment need not be proved) as to the existence of and
      the amount of indebtedness by an Obligor to the Lender, that such amount
      is due and payable, the amount of interest accrued thereon and as to any
      other fact, matter or thing relating to the Obligor's indebtedness to the
      Lender in terms of a Finance Document, shall be prima facie proof
      of the contents and correctness thereof.

	 
	18. CESSION

	18.1 	
      No Obligor shall be entitled to cede, assign or delegate
      all, or any part of its rights and/or obligations, as the case may be,
      under this Agreement without the prior written consent of the
    Lender.

	 	 
	18.2 	
      Subject to the SCB Pre-Emptive Right (as defined in the
      Global Intercreditor Agreement) and to any consents required in terms of
      the Global Intercreditor Agreement, the Lender shall be entitled to cede,
      assign or delegate all or otherwise transfer, or any part of its rights
      and/or obligations, as the case may be, under any Finance Document and/or
      all or any of the RPM Preference Shares to one or more persons without the
      consent of any Obligor and each Obligor consents to any splitting of
      claims which may arise.

	 	 
	18.3 	
      If, following a transfer pursuant to clause 18.2 there is
      more than one Lender, such Lenders shall be entitled to enter into such
      inter-creditor arrangements as they deem fit and/or to appoint an agent(s)
      to act on their behalf in relation to all or any of the Finance Documents
      on such terms and conditions as they deem fit, subject to the Global
      Intercreditor Agreement.

19. ROLE OF THE SECURITY AGENT AND THE PLATEAU SECURITY SPV

	19.1 	
      Role of Plateau Security SPV and Opco Security
      SPV

	 	 
		
      Each Party acknowledges that the Plateau Security SPV and
      the Opco Security SPV have been established to hold the Transaction
      Security and that the taking of any enforcement action by the Plateau
      Security SPV or the Opco Security SPV in relation thereto shall be taken
      in accordance with the Global Intercreditor Agreement.

	 	 
	19.2 	
      No fiduciary duties

	 	 
		
      Nothing in this Agreement constitutes the Plateau
      Security SPV or the Opco Security SPV as a trustee or fiduciary of any
      other person.

	 	 
	19.3 	
      Responsibility for documentation

	 	 
		
      None of the Security Agent, the Opco Security SPV or the
      Plateau Security SPV:

	19.3.1 	
      is responsible for the adequacy, accuracy and/or
      completeness of any information (whether oral or written) supplied by an
      Obligor or any other person given in or in connection with any Finance
      Document or the transactions contemplated in the Finance Documents;
    or

	 	 
	19.3.2 	
      is responsible for the legality, validity, effectiveness,
      adequacy or enforceability of any Finance Document or the Transaction
      Security or any other agreement, arrangement or document entered into,
      made or executed

76

in anticipation of or in connection
with any Finance Document or the Transaction Security. 

	19.4 	
      Exclusion of liability

	19.4.1 	
      Without limiting paragraph 19.4.2 below, none of the
      Security Agent, the Opco Security SPV or the Plateau Security SPV will be
      liable (including, without limitation, for negligence or any other
      category of liability whatsoever) for any action taken by it under or in
      connection with any Finance Document or the Transaction Security, unless
      directly caused by its gross negligence or wilful misconduct.

	 	 
	19.4.2 	
      No Party (other than the Security Agent, the Opco
      Security SPV or the Plateau Security SPV (as applicable)) may take any
      proceedings against any officer, employee or agent of the Security Agent
      or the Plateau Security SPV, in respect of any claim it might have against
      the Security Agent, the Opco Security SPV or Plateau Security SPV or in
      respect of any act or omission of any kind by that officer, employee or
      agent in relation to any Finance Document or any Transaction Document and
      any officer, employee or agent of the Security Agent, or the Plateau
      Security SPV may rely on this Clause as a stipulatio
  alteri.

	 	 
	19.4.3 	
      The Security Agent, the Opco Security SPV and the Plateau
      Security SPV will not be liable for any delay (or any related
      consequences) in crediting an account with an amount required under the
      Finance Documents to be paid by the Security Agent, the Opco Security SPV
      or the Plateau Security SPV if the Security Agent, the Opco Security SPV
      or the Plateau Security SPV have taken all necessary steps as soon as
      reasonably practicable to comply with the regulations or operating
      procedures of any recognised clearing or settlement system used by the
      Security Agent, the Opco Security SPV or the Plateau Security SPV for that
      purpose.

20. NOTICES AND DOMICILIA 

	20.1 	
      Notices

	20.1.1 	
      Each Party chooses the addresses set out opposite its
      name below as its addresses to which any written notice in connection with
      the Finance Documents may be addressed.

	 	(a) 	Lender: 
	 	 	 
	 	  	Rustenburg Platinum Mines Limited 
	 	  	13th Floor 
	 	  	55 Marshall Street 
	 	  	Johannesburg 
	 	  	2001 
	 	 	 
	 	  	Telefax No.: +27 11 373 5111 
	 	 	 
	 	  	Email: companysecretary@angloplat.com 
	 	 	 
	 	  	Attention: The Company Secretary 
	 	 	 
	 	(b) 	Plateau Security SPV 
	 	 	 
	 	  	GMG Trust Company (SA) (Proprietary) Limited
  
	 	  	5th Floor, the Terraces 

77

25 Protea Road 
Claremont 

Telefax No. 086 649 2700 

Attention: Sally Clifton 

with a copy to the Lender 

	 	(c) 	
      Opco Security SPV:

	 	 	 
	 		
      GMG Trust Company (SA) (Proprietary) Limited 
5th
      Floor, the Terraces 
25 Protea Road 
Claremont

	 	 	 
	 		
      Telefax No. 086 649 2700

	 	 	 
	 		
      Attention: Sally Clifton

	 	 	 
	 		
      with a copy to the Lender

	 	(d) 	each Obligor (c/o the Obligor's Agent)
    
	 	 	 
	 	  	Plateau Resources (Proprietary) Limited 
	 	  	4th Floor 82 Grayston Drive, off
      Esterhysen Lane 
	 	  	Sandton 
	 	  	2146 
	 	 	 
	 	  	Telefax No.: +27 11 883 0836 
	 	 	 
	 	  	Email:
      iemrahn@anooraqresources.co.za 
	 	 	 
	 	  	Attention: The Company Secretary, 
	 	 	 
	 	  	with a copy to: 
	 	 	 
	 	  	Hunter Dicksinson 
	 	  	No. 1020, 800 West Street 
	 	  	Vancouver, BC V6C 2V6 
	 	 	 
	 	  	Telefax No.: +1 604 684 8092 
	 	 	 
	 	  	Attention: Mr. Ronald W. Thiessen

	20.1.2 	
      Any notice or communication required or permitted to be
      given in terms of a Finance Document shall be valid and effective only if
      in writing but it shall be competent to give notice by telefax transmitted
      to its telefax number set out opposite its name above.

	 	 
	20.1.3 	
      Any Party may by written notice to the other Parties
      change its chosen addresses and/or telefax number for the purposes of
      clause 20.1.1 to any other address(es) and/or telefax number, provided
      that the change shall become effective on the fourteenth day after the
      actual or deemed receipt of the notice by the other Party pursuant to
      clause 20.1.4.

	 	 
	20.1.4 	
      Any notice given in terms of this Agreement
  shall:

78

	 	(a) 	
      if sent by a courier service be deemed to have been
      received by the addressee on the 7th (seventh) Business Day following the
      date of such sending;

	 	 	 
	 	(b) 	
      if delivered by hand be deemed to have been received by
      the addressee on the date of delivery;

	 	 	 
	 	(c) 	
      if transmitted by facsimile be deemed to have been
      received by the addressee on the first Business Day after the date of
      transmission, unless the contrary is proved.

	20.1.5 	
      Notwithstanding anything to the contrary herein
      contained, a written notice or communication actually received by a Party
      shall be an adequate written notice or communication to it,
      notwithstanding that it was not sent to or delivered at its chosen address
      and/or telefax number.

	20.2 	
      Domicilia

	20.2.1 	
      Each of the Parties chooses its physical address referred
      to in clause 20.1 as its domicilium citandi et executandi at which
      address documents in legal proceedings in connection with the Finance
      Documents may be served.

	 	 
	20.2.2 	
      Any Party may by written notice to the other Parties
      change its domicilium from time to time to another address, not
      being a post office box or a poste restante, in South Africa;
      provided that any such change shall only be effective on the fourteenth
      day after deemed receipt of the notice by the other Party pursuant to
      clause 20.1.4.

	21. GOVERNING LAW
	 
	
      The entire provisions of this Agreement shall be governed
      by and construed in accordance with the laws of South Africa.

	 
	22. JURISDICTION

	22.1 	
      Each Obligor hereby irrevocably and unconditionally
      consents to the non-exclusive jurisdiction of the South Gauteng High
      Court, Johannesburg (or any successor to that division) in regard to all
      matters arising from the Finance Documents.

	 	 
	22.2 	
      Clause 22.1 is for the benefit of the Finance Parties
      only. As a result, no Finance Party shall be prevented from taking
      proceedings relating to any matter arising from the Finance Documents in
      any other courts with jurisdiction. To the extent allowed by law, the
      Finance Parties may take concurrent proceedings in any number of
      jurisdictions

23. GENERAL 

	23.1 	
      The Finance Documents contain the entire agreement
      between the Parties in regard to the subject matter thereof.

	 	 
	23.2 	
      No Party shall be bound by or have any claim or right of
      action arising from any express or implied term, undertaking,
      representation, warranty, promise or the like not included or recorded in
      a Finance Document whether it induced the contract and/or whether it was
      negligent or not.

	 	 
	23.3 	
      No variation, amendment or consensual cancellation of a
      Finance Document or any provision or term and no extension of time, waiver
      or relaxation or suspension of

79

		
      any of the provisions or terms of a Finance Document
      shall be binding or have any force and effect unless reduced to writing
      and signed by or on behalf of the relevant parties thereto and the Lender.
      Any such extension, waiver or relaxation or suspension which is so given
      or made shall be construed as relating strictly to the matter in respect
      whereof it was made or given.

	 	 
	23.4 	
      No extension of time or waiver or relaxation of any of
      the provisions or terms of a Finance Document shall operate as an estoppel
      against another Party in respect of its rights under this
  Agreement.

	 	 
	23.5 	
      No failure by either Party to enforce any provision of a
      Finance Document shall constitute a waiver of such provision or affect in
      any way such Party’s right to require the performance of such provision at
      any time in the future, nor shall a waiver of a subsequent breach nullify
      the effectiveness of the provision itself.

	 	 
	23.6 	
      If any clause or term of a Finance Document should be
      invalid, unenforceable, defective or illegal for any reason whatsoever,
      then the remaining terms and provisions of a Finance Document shall be
      deemed to be severable therefrom and shall continue in full force and
      effect unless such invalidity, unenforceability, defect or illegality goes
      to the root of a Finance Document.

	 	 
	23.7 	
      The Parties undertake at all times to do all such things,
      to perform all such acts and to take all such steps and to procure the
      doing of all such things, the performance of all such actions and the
      taking of all such steps as may be open to them and necessary for or
      incidental to the putting into effect or maintenance of the terms,
      conditions and import of the Finance Documents.

24. COSTS AND EXPENSES 

	24.1 	
      Transaction expenses

	24.1.1 	
      Each party, other than the Opco Security SPV and the
      Plateau Security SPV shall bear its own costs and expenses (including
      legal fees) incurred in connection with the negotiation, preparation,
      printing, execution, and perfection of this Agreement and any other
      documents referred to in this Agreement and the Transaction Security
      Documents.

	 	 	 
	24.1.2 	
      Plateau shall bear the agreed costs and expenses
      (including legal fees) incurred by the Security Agent, the Plateau
      Security SPV, the Opco Security SPV or any Delegate in connection with the
      negotiation, preparation, printing, execution, and perfection
of:

	 	 	 
		(a) 	
      this Agreement and any other documents referred to in
      this Agreement and the Transaction Security;

	 	 	 
		(b) 	
      any other Finance Documents executed after the date of
      this Agreement, which costs shall be payable within 3 (three) Business
      Days of demand.

	24.2 	
      Amendment costs

	 	 
		
      If an Obligor requests an amendment, waiver or consent
      Plateau shall, within 3 (three) Business Days of demand, reimburse each
      Finance Party for the amount of all costs and expenses (including legal
      fees) reasonably incurred by each Finance Party (or in the case of the
      Security Agent and/or the Plateau Security SPV and/or the Opco Security
      SPV, by any Delegate) in responding to, evaluating, negotiating or
      complying with that request or requirement.

80

	24.3 	
      Security Agent’s and the Plateau Security SPV’s
      ongoing costs

	24.3.1 	
      In the event of (i) a Default or (ii) the Security Agent,
      the Opco Security SPV or the Plateau Security SPV considering it necessary
      or expedient or (iii) the Security Agent, the Opco Security SPV or the
      Plateau Security SPV being requested by an Obligor or the Lender to
      undertake duties which the Security Agent or the Opco Security SPV, the
      Plateau Security SPV and Plateau agree to be of an exceptional nature
      and/or outside the scope of the normal duties of the Security Agent or the
      Opco Security SPV, the Plateau Security SPV under the Finance Documents,
      Plateau shall pay to the Security Agent and/or the Opco Security SPV, the
      Plateau Security SPV any additional remuneration that may be agreed
      between them.

	 	 
	24.3.2 	
      If the Security Agent, the Opco Security SPV or the
      Plateau Security SPV, as the case may be, and Plateau fail to agree upon
      the nature of the duties or upon any additional remuneration, that dispute
      shall be determined by an investment bank (acting as an expert and not as
      an arbitrator) selected by the Security Agent or the Opco Security SPV the
      Plateau Security SPV, as the case may be, and approved by Plateau or,
      failing approval, nominated (on the application of the Security Agent or
      the Opco Security SPV, the Plateau Security SPV, as the case may be) by
      the President for the time being of the Law Society of the Northern
      Provinces (the costs of the nomination and of the investment bank being
      payable by Plateau) and the determination of any investment bank shall be
      final and binding upon the parties to this
Agreement.

	24.4 	
      Enforcement and preservation costs

	 	 
		
      Subject to any binding court order to the contrary,
      Plateau shall, within 3 (three) Business Days of demand, pay to the Lender
      the amount of all costs and expenses (including legal fees) incurred by it
      in connection with the enforcement of or the preservation of any rights
      under any Finance Document and the Transaction Security and any
      proceedings instituted by or against the Opco Security SPV or the Put SPV
      the Plateau Security SPV as a consequence of taking or holding the
      Transaction Security or enforcing these rights.

25. COUNTERPARTS 

Any Finance Document may be executed in any number of
counterparts, and this shall have the same effect as if the signatures on the
counterparts were on a single copy of the Finance Document. 

81

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	ANOORAQ RESOURCES CORPORATION
    
	 	  	  
	 	  	  
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  
	 	  	  
	 	  	  
	 	  	  
	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	N1C RESOURCES INC. 
	 	  	  
	 	  	  
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  
	 	  	  
	 	  	  
	 	  	  
	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	N2C RESOURCES INC. 
	 	  	  
	 	  	  
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  

82

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	PLATEAU RESOURCES
      (PROPRIETARY) LIMITED 
	 	  	  
	 	  	  
	 		 
    
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  
	 	  	  
	 	  	  
	 	  	  
	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	RUSTENBURG PLATINUM MINES
      LIMITED 
	 	  	  
	 	  	  
	 	 	 
    
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  
	 	  	  
	 	  	  
	 	  	  
	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	 	  	  
	 	For and on behalf of 
	 	MICAWBER 634 (PROPRIETARY)
      LIMITED 
	 	  	  
	 	  	  
	 		 
    
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto 
	 	  	  
	 		 
	 	Name: 	  
	 	Capacity: 	  
	 	Who warrants his authority hereto
  

83

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	  	  	 
	  	
      For and on behalf of 

	  	
      MICAWBER 603 (PROPRIETARY)
      LIMITED 

	  	
      
	
       

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto 

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto 

	  	
      
	
       

	  	
      
	
       

	  	
      
	
       

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	  	
      
	
       

	  	
      For and on behalf of 

	  	
      PELAWAN INVESTMENTS (PROPRIETARY)
      LIMITED 

	  	
      
	
       

	  	
      
	
       

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto 

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto 

	  	
      
	
       

	  	
      
	
       

	  	
      
	
       

	  	
      
	
       

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	  	
      
	
       

	  	
      For and on behalf of 

	  	
      CENTRAL PLAZA INVESTMENTS 78
      (PROPRIETARY) LIMITED 

	  	
      
	
       

	  	
      
	
       

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto 

	  	
      
	
       

	  	
      
	
		
      Name: 

	  	
      Capacity: 

	  	
      Who warrants his authority hereto

84

	SIGNED at _______________ on this the ____
      day of __________ 2009. 
	  	  	  
	  	For and on behalf of 
	  	PELAWAN TRUST 
	  	 
	  	 
	  		 
    
	  	Name: 
	  	Capacity: 
	  	Who warrants his authority hereto 
	  	  	  
	  		 
	  	Name: 
	  	Capacity: 
	  	Who warrants his authority hereto
  

85

SCHEDULE 1 

CONDITIONS 

1. OBLIGORS 

	1.1 	
      A copy of the Constitutional Documents of each Obligor,
      Holdco and Opco.

	 	 
	1.2 	
      A copy of a resolution of the board of directors of each
      Obligor, Holdco and Opco:

	1.2.1 	
      approving the terms of, and the transactions contemplated
      by, the Transaction Documents to which it is a party and resolving that it
      execute, deliver and perform the Transaction Documents to which it is a
      party;

	 	 
	1.2.2 	
      authorising a specified person or persons to execute the
      Transaction Documents to which it is a party on its behalf;

	 	 
	1.2.3 	
      authorising a specified person or persons, on its behalf,
      to sign and/or despatch all documents and notices (including, if relevant,
      any Notice of Drawdown) to be signed and/or despatched by it under or in
      connection with the Transaction Documents to which it is a
party;

	 	 
	1.2.4 	
      in the case of Holdco, Opco or an Obligor (other than
      Plateau), authorising Plateau to act as its agent in connection with the
      Transaction Documents; and

	 	 
	1.2.5 	
      in the case of Opco and Holdco containing a statement
      that the board is satisfied that the requirements set out in section
      38(2A)(a) have been met.

	1.3 	
      A specimen of the signature of each person authorised by
      the resolutions referred to in paragraph 1.2 above in relation to the
      Transaction Documents and related documents.

	 	 
	1.4 	
      A certificate of each Obligor, Holdco and Opco (signed by
      a director, or a trustee in the case of the Pelawan Trust) confirming that
      borrowing or guaranteeing or securing, as appropriate, in terms of the
      Transaction Documents to which it is a party would not cause any
      borrowing, guarantee, security or similar limit binding on it to be
      exceeded.

	 	 
	1.5 	
      A certificate of an authorised signatory of each Obligor,
      Holdco and Opco certifying that each copy document relating to it
      specified in this paragraph 1 of Schedule 1 is correct, complete and in
      full force and effect and has not been amended or superseded as at a date
      no earlier than the date of this Agreement.

	 	 
	1.6 	
      Evidence that the shareholder(s) of Opco, Holdco, Plateau
      and Pelawan SPV have passed the necessary ordinary and special resolutions
      in order to:

	1.6.1 	
      give effect to the issuance of the respective preference
      shares pursuant to the Finance Documents; and

	 	 
	1.6.2 	
      in the case of Opco and Holdco sanction the granting of
      financial assistance pursuant to the Transaction Documents under section
      38(2A)(b) of the Companies Act, 1973;

in a form agreed by the Lender, and
that the special resolutions have been registered with the Registrar of
Companies. 

86

2. Plateau Security SPV 

	2.1 	
      A copy of the Constitutional Documents of the Plateau
      Security SPV.

	 	 
	2.2 	
      A copy of a resolution of the board of directors of the
      Plateau Security SPV:

	2.2.1 	
      approving the terms of, and the transactions contemplated
      by, the Finance Documents to which it is a party and resolving that it
      execute, deliver and perform the Finance Documents to which it is a
      party;

	 	 
	2.2.2 	
      authorising a specified person or persons to execute the
      Finance Documents to which it is a party on its behalf; and

	 	 
	2.2.3 	
      authorising a specified person or persons, on its behalf,
      to sign and/or despatch all documents and notices to be signed and/or
      despatched by it under or in connection with the Finance Documents to
      which it is a party.

	2.3 	
      A specimen of the signature of each person authorised by
      the resolution referred to in paragraph 2.2 above in relation to the
      Finance Documents and related documents.

3. Opco Security SPV 

	3.1 	
      A copy of the Constitutional Documents of the Opco
      Security SPV.

	 	 
	3.2 	
      A copy of a resolution of the board of directors of the
      Opco Security SPV:

	3.2.1 	
      approving the terms of, and the transactions contemplated
      by, the Finance Documents to which it is a party and resolving that it
      execute, deliver and perform the Finance Documents to which it is a
      party;

	 	 
	3.2.2 	
      authorising a specified person or persons to execute the
      Finance Documents to which it is a party on its behalf; and

	 	 
	3.2.3 	
      authorising a specified person or persons, on its behalf,
      to sign and/or despatch all documents and notices to be signed and/or
      despatched by it under or in connection with the Finance Documents to
      which it is a party.

	3.3 	
      A specimen of the signature of each person authorised by
      the resolution referred to in paragraph 3.2 above in relation to the
      Finance Documents and related documents.

4. Transaction Documents 

A copy of each of the following Transaction Documents executed
by the parties to those documents: 

	4.1 	
      Each Finance Document executed by the parties to
    it.

	 	 
	4.2 	
      The Acquisition Documents.

	 	 
	4.3 	
      The Plateau Holdco Ordinary Share Subscription
      Agreement.

	 	 
	4.4 	
      The Community Trust Documents.

	 	 
	4.5 	
      The ESOP Documents.

	 	 
	4.6 	
      The Holdco Opco Ordinary Share Subscription
    Agreement.

87

	4.7 	
      The Shareholder Loan Documents (as defined in he Senior
      Facilities Agreement).

	 	 
	4.8 	
      The Anooraq Shareholders
Agreement.

5. Transaction Security 

	5.1 	
      A copy of all notices required to be sent under the
      Transaction Security Documents executed by the relevant parties and duly
      acknowledged by the addressee.

	 	 
	5.2 	
      A copy of all notices and acknowledgements required to be
      given under Section 43 of the Short-term Insurance Act, 1998 of South
      Africa as a consequence of the cession of any rights to Insurances
      pursuant to any Transaction Security Document.

	 	 
	5.3 	
      The originals of all share certificates, transfers and
      stock transfer forms or equivalent required to be delivered in accordance
      with the terms of any Transaction Security Document duly executed by the
      relevant party in blank in relation to the assets subject to or expressed
      to be subject to the Transaction Security and other documents of title to
      be provided under the Transaction Security
Documents.

	6. Shareholder Loans and Subscriptions
	 
	
      Evidence that the N2C Resources Shareholder Loan has been
      advanced to Plateau by N2C Resources by payment into the Disbursement
      Account in accordance with the Funds Flow Statement.

	 
	7. Legal opinions
	 
	
      The following legal opinions, each addressed to the
      Lender, the Plateau Security SPV and the Opco Security SPV in a form
      acceptable to the Lender:

	7.1 	
      A legal opinion of Cliffe Dekker Hofmeyr Inc, legal
      advisers to Plateau as to the power, capacity and authority of Plateau to
      enter into the Transaction Documents to which it is a party under South
      African law, including, Plateau, the power, capacity and authority to
      allot and issue relevant preference shares pursuant to the Finance
      Documents.

	 	 
	7.2 	
      A legal opinion of Adams & Adams, legal advisors to
      Pelawan Investments, the Pelawan Trust and Pelawan SPV ("the Pelawan
      Entities")as to the power capacity and authority of the Pelawan
      Entities to enter into the Transaction Documents to which they are a party
      under South African law, including the power, capacity and authority to
      allot and issue the RPM Pelawan B Preference Shares

	 	 
	7.3 	
      A legal opinion of Britannia Corporate Management as to
      the capacity and authority of N1C Resources and N2C Resources to enter
      into the Transaction Documents to which they are a party, and the
      legality, validity and enforceability of the Transaction Documents under
      the law of the Cayman Islands.

	 	 
	7.4 	
      A legal opinion of McCarthy Tertault legal advisers to
      the Parent as to the legality, validity and enforceability of the
      Transaction Documents, as well as the capacity and authority of the Parent
      to enter into the Transaction Documents to which it is a party under the
      law of the Province of British Columbia, Canada substantially in the form
      distributed to the Lender prior to the Signature
Date.

88

8. Authorisations 

	8.1 	
      A copy of the Authorisation of the Exchange Control
      Department of the South African Reserve Bank approving (to the extent
      required) the borrowings by Plateau under the Finance Documents, the
      Security to be provided by the Obligors under the Transaction Security
      Documents and the Debt Guarantees to be provided by the Plateau Security
      SPV and the Opco Security SPV.

	 	 
	8.2 	
      A copy of any other Authorisation or other document,
      opinion or assurance which the Lender notifies Plateau is necessary or
      desirable in connection with the entry into and performance of the
      transactions contemplated by any Transaction Documents or for the validity
      and enforceability of any Transaction Document.

9. Other documents and evidence 

	9.1 	
      A Funds Flow Statement in a form agreed by the Parent and
      the Lender detailing the proposed movement of funds on or before the
      Closing Date in relation to the transactions contemplated by the
      Transaction Documents.

	 	 
	9.2 	
      The Group Structure Chart which shows the Anooraq Group
      assuming the Closing Date has occurred.

	 	 
	9.3 	
      A copy of the PriceWaterhouseCoopers tax
  opinion.

	 	 
	9.4 	
      Confirmation from the Senior Agent that all conditions
      precedent to utilisation of the Senior Facility have been fulfilled or
      waived to its satisfaction.

	 	 
	9.5 	
      The Disclosure Schedule in a form acceptable to the
      Lender.

89

SCHEDULE 2 

TRANSACTION SECURITY DOCUMENTS 

Part 1: Opco Security Documents 

	1. 	
      Cession In Security by Opco in favour of Opco Security
      SPV of:

	 	 	 
		(a) 	
      book debts and claims;

	 	 	 
		(b) 	
      material contracts;

	 	 	 
		(c) 	
      bank accounts and credit balances;

	 	 	 
		(d) 	
      Insurances;

	 	 	 
		(e) 	
      Insurance Proceeds; and

	 	 	 
		(f) 	
      Unregistered Intellectual Property Rights.

	 	 	 
	2. 	
      General Notarial Bond by Opco in favour of Opco Security
      SPV.

	 	 	 
	3. 	
      Special Notarial Bond by Opco in favour of Opco Security
      SPV over the assets referred to in Annexure “A”.

	 	 	 
	4. 	
      Mortgage Bonds by Opco in favour of Opco Security SPV
      over all immovable property of any nature held by Opco to the extent
      legally possible, but only to the extent that such Mortgage Bond are
      required to be granted pursuant to the Senior Facilities
  Agreement.

	 	 	 
	5. 	
      Mortgage Bonds by Opco in favour of the Opco Security SPV
      or the Security Agent (under a parallel debt structure) over all Mining
      Rights (as defined under the MPRD Act) held by
Opco.

Part 2: Holdco Security Documents 

	1. 	
      Cession and Pledge in Security by Holdco in favour of
      Plateau and RPM of Holdco’s rights and interests in:

	 	 	 
		a) 	
      the Holdco Shareholder Loan Agreement;

	 	 	 
		b) 	
      the First Ranking Opco Funding Debt Guarantee;

	 	 	 
		c) 	
      Shares in subsidiaries;

	 	 	 
		d) 	
      Claims against subsidiaries;

	 	 	 
		e) 	
      Bank Accounts and credit balances.

	 	 	 
	2. 	
      Reversionary Cession and Pledge in Security by Holdco in
      favour of RPM of Holdco’s reversionary rights and interests in:

	 	 	 
		a) 	
      the Holdco Shareholder Loan Agreement;

	 	 	 
		b) 	
      the First Ranking Opco Funding Debt
  Guarantee;

90

	 	c) 	
      Shares in subsidiaries;

	 	 	 
	 	d) 	
      Claims against subsidiaries;

	 	 	 
	 	e) 	
      Bank Accounts and credit
balances.

Part 3: Plateau Security Documents 

	1. 	
      Cession and Pledge in Security by Plateau in favour of
      Plateau Security SPV of rights and interests in:

	 	 	 
		a) 	
      Plateau Funding Loan Agreement;

	 	 	 
		b) 	
      Cession in Security by Holdco referred to in Part 2 of
      Schedule 2;

	 	 	 
		c) 	
      Ordinary Shares held by Plateau in Holdco from time to
      time;

	 	 	 
		d) 	
      Claims against Holdco other than any claims arising in
      connection with the A preference shares held by Plateau in
  Holdco;

	 	 	 
		e) 	
      Warranties set out in Schedule 1 to the Holdco Sale of
      Shares Agreement;

	 	 	 
		f) 	
      Bank accounts and credit
balances.

Part 4: N2C Resources Security Documents 

	1. 	
      Cession and Pledge in Security by N2C Resources in favour
      of Plateau Security SPV of rights and interests in:

	 	 	 
		a) 	
      Shares held by N2C Resources in Plateau; and

	 	 	 
		b) 	
      Claims against Plateau.

Part 5: Pelawan Investments Security Documents 

	1. 	
      Cession and Pledge in Security by Pelawan Investments in
      favour of RPM of its rights and interests in:

	 	 	 
		a) 	
      Shares held by Pelawan Investments in Pelawan SPV;
    and

	 	 	 
		b) 	
      Claims against Pelawan SPV

91

ANNEXURE A 

Assets covered by Special Notarial Bond 

	No. 	Description of Asset 
	255000136 	Winter Drum 
	255000137 	Winder Motor 
	255000262 	Conc Thickener UG2 (steel 
	255000455 	Tailings Thickener UG2 (steel) 
	255000049 	Vent Shaft Fans 
	255000163 	Electrical switchgear mine winder No. 6 
	255000171 	Electrical switchgear rock winder No. 2 
	255000427 	Secondary Crusher 
	255000428 	Tertiary Crusher 
	255000294 	Primary Jaw Crusher 
	255000201 	CV01 conveyor – Adit 1 
	255000430 	Larox machine 
	255000207 	CV01 conveyor – Adit 3 
	255000110 	Tailings Thickener Msky

92

SCHEDULE 3 

ADDITIONAL INFORMATION 

***

93

***

94

***

95

SCHEDULE 4 

DISCLOSURE SCHEDULE

96

SCHEDULE 5 

MANDATORY DEBT REFINANCE 

1. REFINANCE COMMITTEE

	1.1 	
      The Original Lender, Plateau and Anooraq will convene a
      refinance committee (Refinance Committee) within 3 months of the Closing
      Date. The Refinance Committee will develop a protocol against which it
      will conduct quarterly performance reviews of the business of Holdco in
      order to evaluate the funding position and refinance options available to
      Plateau, Holdco and/or Opco.

	 	 
	1.2 	
      The Refinance Committee will comprise
  of:

	1.2.1 	
      3 Plateau or Anooraq representatives of their senior
      management and 3 representatives of the Original Lender; and

	 	 
	1.2.2 	
      a chairman, being an independent Anooraq director who
      will not be entitled to vote.

	1.3 	
      The Refinance Committee will meet at least once every
      quarter in advance of any scheduled Plateau board meeting. A Plateau
      representative of the Refinance Committee will send out a notice of the
      proposed meeting to the remaining members of the Refinance Committee at
      least 30 days in advance of the meeting.

	 	 
	1.4 	
      A meeting of the Refinance Committee shall be quorate if
      the number of representatives of the Original Lender present is equal to
      or exceeds the collective number of Plateau and Anooraq representatives
      present, at the commencement and for the duration of the
meeting.

	 	 
	1.5 	
      If no quorum is present at any meeting within 30 minutes
      from the specified time, the meeting will be adjourned to a date not less
      than seven days later, at the same time and venue, or if that date is not
      a Business Day, then to the next succeeding Business Day. All
      representatives of the Refinance Committee must be notified in writing of
      the adjourned meeting. If at such adjourned meeting a quorum is not
      present within 30 minutes from the time of that meeting, the
      representatives present will be deemed to constitute a quorum.]

	 	 
	1.6 	
      All decisions of the Refinance Committee will be taken by
      simple majority vote.

	 	 
	1.7 	
      In the case of an impasse on any resolution of the
      Refinance Committee, the decision will be referred to an appropriately
      qualified independent expert to rule on the matter, as agreed between the
      representatives in writing and, in the absence of an agreement, as
      appointed by the President of the South African Institute of Chartered
      Accountants, who shall act as an expert and not as an arbitrator and whose
      decision shall be final and binding on the Refinance Committee.

	 	 
	1.8 	
      The Refinance Committee will communicate its decisions
      and recommendations to the Plateau and Anooraq boards of directors which
      must, taking cognisance of their fiduciary duties, take all necessary
      steps to authorise or implement any actions recommended by the Refinance
      Committee.

	 	 
	1.9 	
      The Refinance Committee may request that independent
      experts attend meetings and address the Refinance Committee in relation to
      the specific areas of expertise, for example, technical experts or a South
      African Mineral Resource Committee (“SAMREC”) approved competent person
      i.e. a "Competent Person" is a person

97

who is registered with South African
Counsel for Natural Scientific Professions (“SACNASP”), Engineering Counsel of
South Africa (“ECSA”) or South African Counsel for Professional and Technical
Surveyors (“PLATO”), or is a Member or Fellow of the South African Institute of
Mining and Metallurgy (“SAIMM”), the Geological Society of South Africa (“GSSA”)
or a Recognized Overseas Professional Organisation (“ROPO”) and the Competent
Person must comply with the provisions of the relevant promulgated Acts), Equity
Capital Market (“ECM”) and Debt Capital Market (“DCM”) experts from an
independent Investment Bank that have international ECM and DCM expertise, which
will provide a detailed assessment of ECM or DCM conditions and relevant
metrics, and the auditors of Anooraq).

	1.10 	
      ***

	 	 
	1.10.1 	
      ***

	 	 
	1.10.2 	
      ***

	 	 
	1.10.3 	
      ***

	 	 
	1.10.4 	
      ***

	 	 
	1.10.5 	
      ***

	 	 
	1.10.6 	
      ***

2. IMPLEMENTATION OF THE MANDATORY DEBT REFINANCE 

	2.1 	
      The Refinance Committee must procure, at its discretion
      and within the timeline stated in Clause 6.4.1 of the RPM Funding Common
      Terms Agreement, that Holdco prepares a SAMREC compliant reserve and
      resource statement as well as the life of mine plan(s) for Holdco’s
      operating assets at the relevant time.

	 	 
	2.2 	
      The representatives of the Original Lender on the
      Refinance Committee will, within 3 months of receiving such information,
      either accept same or appoint an independent technical expert to assess
      and analyse the reserve and resource statement of Holdco as well as the
      life of mine plan(s) for Holdco’s operating assets.

	 	 
	2.3 	
      Upon receipt of such an assessment and analysis of
      Holdco’s operating assets acceptable to the Original Lender, but in any
      event at least 6 months prior to the Initial Repayment Date, Holdco will
      appoint an independent Investment Bank to coordinate and run a debt
      refinancing programme. The independent Investment Bank will be required to
      assess appropriate and sustainable gearing levels for Plateau, Holdco
      and/or Opco (as may be appropriate), taking into account, inter alia, the
      following factors:

98

	2.3.1 	
      ***

	 	 
	2.3.2 	
      ***

	 	 
	2.3.3 	
      ***

	 	 
	2.3.4 	
      ***

	 	 
	2.3.5 	
      ***

	 	 
	2.3.6 	
      ***

	 	 
	2.3.7 	
      ***

	 	 
	2.3.8 	
      ***

	 	 
	2.3.9 	
      ***

	2.4 	
      The independent Investment Bank will also be required to
      assess the ECM and DCM conditions prevailing at the time as well forecasts
      of ECM and DCM conditions.

	 	 
	2.5 	
      Based on the advice provided by any independent expert
      appointed in terms of paragraph 1.9 above, the Refinance Committee will
      recommend to the boards of Anooraq, Plateau, Holdco and/or Opco (as may be
      appropriate) when, in their view, it is appropriate to undertake a
      Mandatory Debt Refinance to settle all or part of the outstanding RPM
      Facilities within the time period stipulated in Clause 6.4.1 of the RPM
      Funding Common Terms Agreement.

	 	 
	2.6 	
      ***

	 	 
	2.7 	
      If the criteria set out above are met to the reasonable
      satisfaction of Plateau, Holdco and/or Opco (as may be appropriate), the
      relevant party must undertake such Mandatory Debt Refinance and maximise
      the amount of external debt funding to be applied to redeem or settle, as
      applicable, the RPM Facilities.

	 	 
	2.8 	
      If Standard Chartered Bank does not consent to the
      revised terms and conditions, then the Refinance Committee will consider
      whether the Senior Facilities Agreement should be refinanced in advance of
      the RPM Facilities.

3. INFORMATION REQUIRED 

Plateau, Holdco and/or Opco (as may be appropriate) must,
within a sufficient time period before each meeting, make, inter alia, the
following information available to the Refinance Committee to assist it in
reaching a decision in relation to the refinancing options:

99

	3.1 	
      ***

	 	 
	3.2 	
      ***

	 	 
	3.3 	
      ***

	3.3.1 	
      ***

	 	 
	3.3.2 	
      ***

	 	 
	3.3.3 	
      ***

	 	 
	3.3.4 	
      ***

	 	 
	3.3.5 	
      ***

100 

Schedule 6 

EXISTING OPERATIONAL GUARANTEES 

	Guarantee By 	In Favour Of 	Amount 
	RPM on behalf of Opco 	Eskom 	R12,027,000.00 
	UG2 Expansion 	DM 	R51,086,564.00 
	Ga-phasha 	DM 	R165,000.00 
	APL on behalf of Opco 
	DM 
	R58,075,023.00 (Pre 

      2009) 
	APL on behalf of Opco 	DM 	R18,954,088.00 (2009) 

101Filed by sedaredgar.com - Candev Resource Exploration, Inc. - Exhibit 10.1

	 
	OPTION AGREEMENT 
	 
	Made as of July 7, 2009 
	 
	Between 
	 
	YALE RESOURCES LTD. 
	  
	and 
	 
	CANDEV RESOURCE EXPLORATION, INC. 
	 

TABLE OF CONTENTS

	RECITALS
      	  	1 
	SECTION 1 	–
      REPRESENTATIONS AND WARRANTIES 	1 
	SECTION 2
      	– SALE AND OPTION TO ACQUIRE INTEREST 	3 
	SECTION 3 	– CANDEV’S
      RIGHT TO PLACE THE CANDEV SHARES 	8 
	SECTION 4
      	- MANAGEMENT COMMITTEE 	9

	SECTION 5 	- INDEMNITIES
      	10 
	SECTION 6
      	- EFFECTIVE DATE 	11
  
	SECTION 7 	- OPERATIONS
      DURING THE OPTION PERIOD 	11 
	SECTION 8
      	- SALE OF INTEREST 	13
  
	SECTION 9 	-
      CONFIDENTIALITY 	15 
	SECTION 10
      	 – FORCE MAJEURE 	16
  
	SECTION 11 	 - NOTICE 	17 
	SECTION 12
      	 – INJUNCTION 	18
  
	SECTION 13 	 - INTERPRETATION 	18 

(i)

OPTION AGREEMENT 

This Agreement is made as of the 7th day of July,
2009, between

YALE RESOURCES LTD., a
corporation organized under the l
aws of the Province of British Columbia,
Canada

(herein called “Yale”)

OF THE FIRST PART

and

CANDEV RESOURCE EXPLORATION,
INC., a corporation 
organized under the laws of the State of Nevada,
United States of 
America

(herein called “Candev”)

OF THE SECOND PART

RECITALS

A. Yale is the owner of a 100% undivided right, title and
interest in and to the Dos Naciones property legally described as the
“Property” in Schedule A annexed hereto.

B. Yale desires sell a 50% interest in and to grant an option
to Candev for Candev to acquire an additional 30% interest in the Property for a
combined total of 80%.

     NOW THEREFORE THIS AGREEMENT
WITNESSES that in consideration of the mutual covenants expressed herein the
Parties agree as follows:

SECTION 1 – REPRESENTATIONS AND WARRANTIES

	1.1 	Representations and warranties
  

(1) Yale represents and warrants to Candev that on the date
hereof and on the Effective Date, as defined in Section 6.1 herein:

	(a) 	
      Yale is the beneficial owner of a 100% undivided right,
      title and interest in and to the Property;

	 	 
	(b) 	
      Yale has rights and necessary lawful authority to explore
      for precious metals on the Property;

- 2 -

	(c) 	
      Yale has the right to enter into this Agreement and the
      subsequent Joint Venture Agreement and to dispose, grant an option,
      transfer its interest and Legal Rights in the Property to Candev in
      accordance with the terms of this Agreement and the subsequent Joint
      Venture;

	 	 
	(d) 	
      There are no outstanding agreements or options to acquire
      or purchase the Property and Legal Rights, or any portion thereof, or any
      production therefrom, granted by it and other than outlined herein no
      other person has any royalty or other interest whatsoever in the Property
      or Legal Rights or in production therefrom;

	 	 
	(e) 	
      Yale has disclosed to Candev all technical information
      and data related to the Property, and all material contractual and legal
      requirements related to the Property and Legal Rights and Yale’s interest
      therein;

	 	 
	(f) 	
      The Property is accurately described in Schedule A
      annexed hereto and a form of executed version of the Joint Venture
      Agreement is attached in Schedule B annexed hereto;

	 	 
	(g) 	
      All taxes, assessments, rentals, levies or other payments
      relating to the Property and required to be made to any governmental
      instrumentality have been made;

	 	 
	(h) 	
      The Property is free and clear of any and all
      Encumbrances, agreements, obligations, adverse claims (including, without
      limitation, any order or judgment relating to the Property or any legal
      proceedings in process, pending or threatened which might result in any
      such order or judgment), royalties, profit interests or other payments in
      the nature of a rent or royalty, or other interests of whatsoever nature
      or kind, recorded or unrecorded;

	 	 
	(i) 	
      Yale has not received from any governmental
      instrumentality any notice of, or communication relating to, any actual or
      alleged Environmental Claims, and there are no outstanding work orders or
      actions required to be taken relating to Environmental matters respecting
      the Property or any operations carried out thereon;

	 	 
	(j) 	
      There are no actions, suits or proceedings (whether or
      not purportedly on behalf of Yale) (including Environmental Claims)
      pending or threatened against or materially adversely affecting, or which
      could materially adversely affect, the Property or before or by any
      federal, provincial, municipal or other governmental authority,
      department, court, commission, board, bureau, agency or instrumentality,
      domestic or foreign, whether or not insured, and which might involve the
      possibility of any Encumbrance or any other right of another against the
      Property;

	 	 
	(k) 	
      The execution and delivery of this Agreement and the
      subsequent Joint Venture Agreement, and the agreements and transactions
      contemplated hereby will not violate or result in the breach of the laws
      of Mexico or any other jurisdiction applicable or pertaining thereto, and
      Yale agrees to deliver, prior to closing a Mexican legal opinion as to the
      proper title of the Property and material laws applicable to the
      agreements and

- 3 -

		
      transactions contemplated in this Agreement and the
      subsequent Joint Venture Agreement; and

	 	 
	(l) 	
      Yale is unaware of any material facts or circumstances,
      which have not been disclosed in this Agreement nor the subsequent Joint
      Venture Agreement that should be disclosed to Candev in order to prevent
      the representations and warranties in this Agreement and the Joint Venture
      Agreement from being materially misleading.

(2) Each Party represents and warrants to the other that at the
date of execution of this Agreement:

	(a) 	
      all requisite corporate acts and proceedings have been
      done and taken by it with respect to entering into this Agreement and it
      has the right to enter into this Agreement and to perform the obligations
      hereunder; and

	 	 
	(b) 	
      the execution and delivery of this Agreement and the
      performance from time to time of the rights and obligations arising
      hereunder do not and will not conflict with the terms of the constating
      instruments of it or with any agreement or other instrument or regulatory
      provision by which it is bound.

(3) The representations and warranties hereinbefore set out are
conditions on which the Parties have relied in entering into this Agreement and
shall survive the acquisition of any additional interest in the Property by
Candev and the termination of this Agreement and the conversion to the Joint
Venture Agreement, and each of the Parties will indemnify and save the other
harmless from all loss, damage, costs, actions and suits arising out of or in
connection with any breach of any representation, warranty, covenant, agreement
or condition made by it and contained in this Agreement.

SECTION 2 – SALE AND OPTION TO ACQUIRE INTEREST

	2.1 	Sale of Interest 

     Yale hereby agrees to sell to
Candev a 50% interest in the Property, including the Legal Rights and, except as
disclosed in Schedule A, free and clear of all Encumbrances and all royalties,
profit interests or other payments in the nature of a rent or royalty or other
interests of whatsoever nature or kind, subject to the provisions of this
Agreement.

	2.1.1 	Consideration 

Yale agrees to sell to Candev or its designated nominee a 50%
undivided interest in the Property, in consideration of which Candev will make
the following payments to Yale:

	 	(i) 	
      Pay to a deposit in the amount of CDN $17,500 to Yale,
      and

	 	 	 
	 	(ii) 	
      Pay an additional CND $ 17,500 to Yale on the Effective
      Date.

- 4 -

	2.2 	Option to Acquire an Additional Interest
    

Yale agrees to grant to Candev an option (the “Option”) to
acquire a further 30% interest in the Property(for a total of 80%). To exercise
the Option, Candev shall issue securities of Candev as well as fund exploration,
development and other expenditures (the “Expenditures”) on the Property as
outlined below.

For clarity, all Expenditures and maintenance of the Property
and agreements will be the responsibility of Candev until such time as the
Option is exercised or terminated.

	2.2.1 	To exercise the Option, Candev shall issue
      securities of Candev in the following manner: 

	 	(i) 	
      on or before the date which is one (1) year after the
      Effective Date, Candev will issue 200,000 shares of common stock of Candev
      to Yale;

	 	 	 
	 	(ii) 	
      on or before the date which is two (2) years after the
      Effective Date, Candev will issue an additional 250,000 shares of common
      stock of Candev to Yale; and

	 	 	 
	 	(iii) 	
      on or before the date which is three (3) years after the
      Effective Date, Candev will issue an additional 350,000 shares of common
      stock of Candev to Yale.

	2.2.2 	To exercise the Option, Candev shall fund
      Expenditures in the following manner: 

	 	(i) 	
      on or before the date which is one (1) year after the
      Effective Date, Candev fund Expenditures aggregating CDN $150,000 on the
      Property;

	 	 	 
	 	(ii) 	
      on or before the date which is two (2) years after the
      Effective Date, Candev fund additional Expenditures aggregating CDN
      $250,000 on the Property; and

	 	 	 
	 	(iii) 	
      on or before the date which is three (3) years after the
      Effective Date, Candev will fund additional Expenditures aggregating CDN
      $400,000 on the Property.

Any excess in Expenditures incurred in any period described
above may be carried forward against Expenditures due to be incurred in the next
period.

	2.3 	Termination of Option

     The right of Candev to exercise
the Option or the portion thereof which has not been previously exercised, as
applicable, shall become null and void and the Option held by Candev shall
terminate if:

	(a) 	
      Candev gives ninety (90) days prior written notification
      to Yale at any time of its intention not to exercise the Option or the
      portion thereof which has not been previously exercised, as applicable;
      or

- 5 -

	(b) 	
      After thirty (30) days of receiving written notice from
      Yale that Candev is in material default of this Agreement, Candev remains
      in material default of its obligations under this Agreement, including but
      not limited to paying the consideration described in Section 2.2;
  or

	 	 
	(c) 	
      Candev fails to implement Phase I of the work program
      acceptable to Yale within six (6) months after the Effective Date;
    or

	 	 
	(d) 	
      Candev fails to incur all of the Expenditures described
      in Section 2.2 as scheduled and in the manner described above and shall
      have failed to either incur Expenditures in the amount of the deficiency
      or pay the amount of such deficiency to Yale within thirty (30) days after
      receipt of written notice from Yale of such
failure.

	2.4 	Termination 

     On the termination of the Option
Period in accordance with Section 2.3, Yale will have the right to purchase all
of Candev’s interest in the Property for a period of one year for CDN $17,500,
and;

	(a) 	
      the Property shall be free of all Encumbrances and debts
      created by or through Candev;

	 	 
	(b) 	
      all plant, machinery, equipment and supplies owned by
      Candev and brought and placed upon the Property shall remain the exclusive
      property of the owner thereof and, if the Option Period terminates without
      Candev exercising the Option, shall be removed by the owner thereof, at
      any time or times within a period of six (6) months next following the
      termination of the Option Period; provided that if the owner thereof has
      not removed all such plant, machinery, equipment or supplies within the
      said six (6) month period, then such plant, machinery, equipment and
      supplies not so removed thereafter shall become the property of Yale or,
      at Yale’s option, may within a further six (6) months be removed by Yale
      at the expense of the owner thereof. All plant, machinery, equipment and
      supplies, until it becomes Yale’s property or is removed from the
      Property, shall be the sole responsibility of the owner thereof and Yale
      shall have no liability with regard thereto;

	 	 
	(c) 	
      if the Option Period terminates without the Option being
      exercised, Candev shall forthwith deliver to Yale all data and factual
      information generated by Candev through their exploration activities on
      the Property; and

	 	 
	(d) 	
      Candev shall be solely liable for all costs and expenses
      accrued by it to third parties as a result of its activities on the
      Property during the Option Period up to the date of termination of the
      Option Period.

     The provisions of Sections 5, 9,
11, 12 and 13 and Section 2.6 (if applicable) shall survive the termination of
the Option Period.

- 6 -

	2.5 	Exercise of Option to Earn an additional 30%
      Interest 

     If Candev incurs the Expenditures
during the Option Period in the manner described in Section 2.2 and pays the
consideration described in Section 2.2, then Candev shall earn a 80% undivided
right, title and interest in and to the Property which interest shall
automatically and immediately vest in Candev without any further act by any
Party. Yale represents and warrants that upon completion of the Option Agreement
that Yale will transfer an additional 30% interest in the property to Candev and
will be deemed to have entered into a Joint Venture with Yale.

     For further clarity, upon
completion of the Option and transfer of the additional interest to Candev the
Joint Venture Agreement will come into affect and will supersede this
agreement.

	2.6 	Title 

     Upon Candev exercising the option
in accordance with this Section 2 and subject to compliance with applicable
Mexican law, for a sum no greater than 5,000 Mexican Pesos, Yale shall forthwith
transfer the registered title to the Property to Candev, to be held by Candev’s
Mexican subsidiary in its own name in trust for the parties as their interests
may from time to time appear, except where a transfer of title is required
therein. Any Party shall be entitled to record its interest in the Property and
in this Agreement on the title to the Property. Each Party shall pay its own
costs (including taxes payable) associated with the transfer of title to the
Property from Yale to Candev.

	2.7 	Deemed Exploration Expenditures Entering the
      Joint Venture Agreement 

Upon completion of the Option and on the date of the formation
of the Joint Venture, the parties shall be deemed to have incurred the following
costs under this Agreement and to have the following undivided percentage
interests in the Joint Venture:

	 	Percentage 	 	Deemed Costs 	 
	 	Interest 	 	(CND $) 	 
	 	Candev 80% 	$	 815,000 	 
	 	  	 	  	 
	 	Yale 20% 	$	 203,750 	 

	2.11 	Joint Venture Agreement

     Yale and Candev agree with,
warrant and represent that upon exercise of the Option the Joint Venture
Agreement will be executed and delivered in the form as attached hereto as
Schedule “B”. 

- 7 -

	2.12 	Operator of this Agreement and Voting
      Control of Joint Venture Agreement 

	(a) 	
      During the Option Period, the operator of all operations
      on the Property to be undertaken pursuant to this Agreement (the
      “Operator”) shall be Yale from the Effective Date for a period of
      at least one year – afterwhich, at its choosing, Candev may become
      operator. The Operator may delegate to perform any management duties and
      responsibilities it deems necessary for the efficient operation of the
      Property and will be paid a management fee equal to fifteen percent (15%)
      of the Expenditures incurred on the Property provided that such payments
      to Yale may be offset by any management fees that Yale receives under the
      Joint Venture Agreement such that Yale will only receive total management
      fees under the Joint Venture Agreement and this Agreement equal to fifteen
      percent (15%) of Expenditures incurred on the Property. The Operator
      agrees to provide to the other party an accounting of such management fees
      on a regular basis or whenever requested by the other party.

	 	 
	(b) 	
      During the Option Period, Yale and Candev agree they will
      have mutual voting power. During the Option Period Yale agrees not to make
      any decisions with respect to the Property and its Legal Rights under the
      Joint Venture Agreement without the prior written approval of Candev,
      which approval may be unreasonably withheld in the sole and absolute
      discretion of Candev.

	2.13 	Negative Covenants of Yale

     During the Option Period, except
as contemplated by this Agreement, Yale will not, without the prior written
consent of Candev:

	(a) 	
      create, assume or permit to exist any new mortgage, deed
      of trust, security interest or pledge, or subject to any lien or
      encumbrance any of the Property, whether now owned or hereafter
      acquired;

	 	 
	(b) 	
      sell, assign, lease or otherwise transfer or dispose of
      any of the Property, whether now owned or hereafter acquired, except in
      the usual and ordinary course of business;

	 	 
	(c) 	
      knowledgably breach any law or any regulatory filing
      requirements with respect to maintaining the Property in good standing
      with the applicable government authority; and

	 	 
	(d) 	
      cancel any consultancy or agency relationship, except in
      the usual and ordinary course of business.

	2.15 	The National Instrument 43-101 Report
  

     As Candev’s due diligence on the
property, Candev shall initiate and prepare a National Instrument 43-101
compliant technical report (the “43-101 Report”) on the subject Property within
thirty (30) days after the execution of this Agreement. Candev shall be
responsible for payment of all costs related to the preparation of the 43-101
Report. The 43-101 Report means a 

- 8 -

comprehensive report, prepared in good faith and signed by a
Qualified Person. “Qualified Person” means an individual who:

(a) is an engineer or geoscientist with at least five years
experience in mineral exploration, mine development or operation or project
assessment, or any combination of these; 

(b) has experience relevant to the subject matter of the
Property and the Technical Report; and,

(c) is a member in good standing of a professional
association.

The Parties acknowledge and agree that the definition of
“Qualified Person” under this Agreement will be deemed to be automatically
modified if the definition of that term is modified in the Canadian National
instrument 43-101 “Standards of Disclosure for Mineral Projects” applicable to
all companies listed on a Canadian stock exchange.

SECTION 3 – CANDEV’S RIGHT TO PLACE THE CANDEV
SHARES

	3.1 	Pre-emptive Right 

     If at any time Yale desires to
sell, assign, or transfer shares it holds in the capital of Candev (the “Candev
Shares”) that exceeds a single block of 50,000 shares, then Candev shall have a
pre-emptive right to place the Candev Shares with purchasers it has located as
follows:

	(a) 	
      Yale shall promptly notify Candev of its intentions. The
      Notice shall state the price in cash (the “Candev Shares Purchase Price”)
      and all other pertinent terms and conditions of the intended transfer.
      Yale need not have any offer in hand, but if it does, then the Notice
      shall be accompanied by a copy of the offer or contract for sale. Candev
      shall have ten (10) Business Days after the date such Notice is delivered
      to notify Yale whether it elects to place the offered Candev Shares with
      purchasers that it has located the same Candev Shares Purchase Price and
      on the same terms and conditions as set forth in the notice. If such an
      election is made, then the transfer shall be consummated promptly after
      Notice of such election is delivered to Yale.

	 	 
	(b) 	
      If Candev elects not to acquire the offered Candev Shares
      or fails to so elect within the ten (10) Business Day period provided
      above, Yale shall have forty-five (45) days following the earlier of (i)
      the date of expiration of the above mentioned ten (10) Business Day period
      or (ii) the last date when Candev elected not to place the Candev Shares,
      to consummate the transfer to a third party at a price at least equal to
      the Purchase Price and on terms no less favourable to Yale than those
      offered by the Yale to Candev in the Notice required herein; and

	 	 
	(c) 	
      If Yale fails to consummate the transfer to a third party
      within the said forty-five (45) day period, then the right of Candev in
      such offered Candev Shares shall be deemed to be revived. Any subsequent
      proposal to transfer such Candev Shares shall be conducted in accordance
      with all the procedures set forth in this Section
3.

- 9 -

SECTION 4 - MANAGEMENT COMMITTEE

	4.1 	Establishment 

     A Management Committee composed
of one (1) representative of each Party, shall be established on the Effective
Date. Each Party shall, within fifteen (15) days after the Effective Date,
notify the other Party in writing of the name of its representative (the
“Representative”) and alternative Representative (“Alternate”) who
may from time to time act in the absence of the Representative. Each Party shall
also be free to bring to all meetings at its own cost such technical and other
advisors as it may deem appropriate; provided that such advisors are bound by
the provisions of Section 9. Each Party shall have the right at any time and
from time to time to change it’s Representative or Alternate by written notice
given to the other Party. Each Party shall incur all costs (which shall not be
deemed to be Expenditures) for its Representative’s and Alternate’s activities
hereunder.

	4.2 	Purposes 

     The Management Committee shall be
constituted during the Option Period for the following purposes:

	(a) 	
      to review the on-going activities of the Operator on the
      Property and to review reports submitted by the Operator on the progress
      of its activities;

	 	 
	(b) 	
      to discuss in good faith any changes, alterations or
      recommendations to the activities undertaken by the Operator on the
      Property; and

	 	 
	(c) 	
      to review proposed exploration operations on the Property
      to be undertaken by the Operator.

	4.3 	Meetings 

(1) Meetings of the Management Committee shall be held no less
than once annually. In lieu of holding meetings of the Management Committee, the
Management Committee may convene telephone conferences with the unanimous
consent of both Parties.

(2) The Management Committee shall establish at its first
meeting such procedures and rules governing the meetings and convening of the
meetings of the Management Committee as the Parties may unanimously agree.

(3) On any matter to be approved by the Management Committee,
the Operator shall have final and binding power on both Parties to decide on a
decision in case of dispute between the Parties.

- 10 -

SECTION 5 - INDEMNITIES

	5.1 	Indemnities of Candev

     Candev shall indemnify Yale from
all liability, however arising, in respect of all debts, liabilities, costs and
obligations of every kind and nature, including damage to property and personal
injury, arising out of or related to the conduct by it of activities on the
Property, which were incurred or arose during the Option Period. For further
clarity, the Parties intend that, pursuant to the preceding sentence, Candev
shall be liable for its liabilities, known or unknown, contingent or otherwise,
which were incurred or arose during the Option Period, relating to or arising
out of:

	(a) 	
      the conduct of activities by it or on its behalf in, on
      or under the Property; and

	 	 	 
	(b) 	
      the Environmental protection, clean-up, remediation, and
      reclamation of the Property resulting from or relating to its activities
      referred to in Section 5.1(a) including, but not limited to, the
      obligations and liabilities arising out of or related to:

	 	 	 
		(i) 	
      the disturbance or contamination of land, water (above or
      below surface) or the Environment by exploration, mining, processing or
      waste disposal activities;

	 	 	 
		(ii) 	
      any failure to comply with all past, current or future
      governmental or regulatory authorizations, licenses, permits, and orders
      and all non-governmental prohibitions, covenants, contracts and
      indemnities; and

	 	 	 
		(iii) 	
      any act or omission causing or resulting in the spill,
      discharge, leak, emission, ejection, escape, dumping or release of
      hazardous or toxic substances, materials, or wastes as defined in any
      federal, provincial, or local law or regulation in connection with or
      emanating from the Property.

	5.2 	Indemnities of Yale 

     Yale shall indemnify Candev from
all liability, however arising, in respect of all debts, liabilities, costs and
obligations of every kind and nature, including damage to property and personal
injury, arising out of or related to the Property or the conduct by Yale of
activities on the Property, arising before the Effective Date and while Yale is
the Operator. For further clarity, the Parties intend that Yale shall be liable
for its liabilities, known or unknown, contingent or otherwise, arising before
the Effective Date, relating to or arising out of:

	(a) 	
      the conduct of activities in, on or under the Property;
      and

	 	 	 
	(b) 	
      the Environmental protection, clean-up, remediation, and
      reclamation of the Property including, but not limited to, the obligations
      and liabilities arising out of or related to:

	 	 	 
		(i) 	
      the disturbance or contamination of land, water (above or
      below surface) or the Environment by exploration, mining, processing or
      waste disposal activities;

- 11 -

	 	(ii) 	
      any failure to comply with all past, current or future
      governmental or regulatory authorizations, licenses, permits, and orders
      and all non-governmental prohibitions, covenants, contracts and
      indemnities; and

	 	 	 
	 	(iii) 	
      any act or omission causing or resulting in the spill,
      discharge, leak, emission, ejection, escape, dumping or release of
      hazardous or toxic substances, materials, or wastes as defined in any
      federal, provincial, or local law or regulation in connection with or
      emanating from the Property.

SECTION 6 - EFFECTIVE DATE

	6.1 	Conditions 

	(1) 	
      This Agreement is conditional upon: 

	  	
       

	(a) 	
      the approval of the board of directors of Yale and
      Candev; 

	  	
       

	(b) 	
      Yale delivering to Candev a Mexican legal title opinion
      described in Section 1.1(1)(n) and in a form satisfactory to Candev to be
      determined by Candev in its sole and absolute discretion; 

	  	
       

	(c) 	
      Candev conducting a due diligence review of the Property,
      title and the licenses related thereto and being satisfied of the results
      of such due diligence to be determined by Candev in its sole and absolute
      discretion; and 

	  	
       

	(d) 	
      Candev initiating and preparing the 43 – 101 Report and
      Candev being satisfied, in Candev’s sole and absolute discretion, with the
      results of such report, 

in each case in form and substance satisfactory to the affected
Party, as the case may be.

(2) The “Effective Date” means the date on which the
Parties shall have acknowledged, in writing, that all of the conditions set out
in this Section 6.1 have been met, or have been waived in writing by the party
benefiting from the condition.

SECTION 7 - OPERATIONS DURING THE OPTION PERIOD

	7.1 	Operator’s Rights 

     Subject to the other terms of
this Agreement, during the Option Period, the Operator shall have the following
rights:

	(a) 	
      the sole and exclusive right to enter upon the Property
      to carry on exploration and related operations thereon in accordance with
      the existing Access Agreement with the owner of the surface rights that
      cover the Property ;

- 12 -

	(b) 	
      the right to remove from the Property such reasonable
      amounts of ore and mineralized material as the Operator may deem necessary
      for the purposes of making assays and tests;

	 	 
	(c) 	
      the right to erect buildings and other improvements and
      install such machinery and equipment on the Property as the Operator deems
      advisable or necessary in connection with the activities contemplated by
      this Section 7.1;

	 	 
	(d) 	
      the right of access to all of Yale’s data and information
      concerning the Property including mining records and drill
cores;

	 	 
	(e) 	
      be allowed to review and copy data relevant to the
      Property in Yale’s possession; provided that the confidentiality
      provisions of Section 9 shall apply with respect to such data;
  and

	 	 
	(f) 	
      acquire any license granting rights to third parties with
      respect to the Property.

	7.2 	Duties of the Operator

     Subject to the other terms of
this Agreement, during the Option Period, the Operator shall be responsible for
the following duties and shall:

	(a) 	
      cause to be done all things that may be required to keep
      the Property in good standing under the laws of the country of
    Mexico;

	 	 
	(b) 	
      conduct all exploration and other operations in, on and
      under the Property in a good and workmanlike manner in accordance with
      good mining and engineering practices and in compliance with all
      applicable laws, regulations and orders;

	 	 
	(c) 	
      agrees to leave the Property in a safe condition with all
      openings safeguarded in accordance with the applicable mining laws and
      regulations;and,

	 	 
	(d) 	
      prepare and submit to Yale, at the Operator’s election,
      monthly progress reports and statements of Expenditures and an annual
      report within sixty (60) days of the end of each calendar year.

	 	 
	(e) 	
      DELETED.

	7.3 	Insurance 

(1) During the Option Period, the Operator shall use its
commercially reasonable best efforts to provide, maintain and pay for the
following insurance which shall be placed with an insurance company or companies
and in a form as may be acceptable to both parties (acting reasonably):

	(a) 	
      comprehensive general liability insurance protecting each
      of the Parties and their respective employees, agents, contractors,
      invitees and licencees against damages arising from personal injury
      (including death) and from claims for property damage which
  may

- 13 -

		
      arise directly or indirectly out of the operations of the
      Operator under this Agreement; and

	 	 
	(b) 	
      automobile insurance on the Operator’s owned and
      non-owned vehicles, if any, protecting its employees, agents, contractors,
      invitees and licencees against damages arising from bodily injury
      (including death) and from claims for property damage arising out of the
      operations of the Operator under this Agreement.

(2) Each policy of insurance contemplated in this Section 7.3
shall be in an amount that is reasonable for the scale of exploration and
development conducted on the Property inclusive of any one occurrence. The
policy of insurance referred to in Section 7.3(1)(a) shall:

	(a) 	
      include a standard form of cross-liability
  clause;

	 	 
	(b) 	
      indicate that the insurer will give the Operator thirty
      (30) days’ prior written notice of cancellation or termination of the
      coverage. If such termination is received, the Operator agrees to forward
      the termination notice to the other party within 48
  hours.

(3) The Operator shall provide Yale with such evidence of
insurance as Yale may, acting reasonably, request.

	7.4 	Access to Mining Operations
  

     The other party may, at its own
risk and expense and at reasonable times agreed to by the Operator enter on the
Property and examine the Operator’s operations; provided, that the other party
is not, in the opinion of the Operator, interfering with such operations.

	7.5 	Yale and Candev Obligations for License
      Renewals and property access agreements

     Candev agrees to pay for the cost
of license renewals for the Property and Yale will be responsible for applying
for the license renewals until such time as the Option has either been fulfilled
or terminated.

     Yale agrees to provide Candev
with copies of all agreements for the access to the Property and that it will
involve Candev in any negotiations regarding access to the Property.

SECTION 8 - SALE OF INTEREST

	8.1 	Pre-emptive Right 

     Except as otherwise provided in
Section 8.2 and Section 8.3, if at any time a Party (the “Offeror”)
desires to sell, assign, or transfer all or any part of its interest in this
Agreement and the Property (the “Sale Interest”), then the other Party
(each, an “Offeree”) shall have a preemptive right to acquire such Sale
Interest as follows:

- 14 -

	(a) 	
      the Offeror shall promptly notify the Offeree of its
      intentions. The Notice shall state the price in cash or cash equivalent in
      the form of marketable securities (the “Purchase Price”) and all
      other pertinent terms and conditions of the intended transfer. The
      Purchase Price may be stated in whole or in part in the form of publicly
      marketable securities provided that the Offeror delivers together with its
      Notice given under this subsection 8.1 a certificate signed by a duly
      qualified and reputable securities analyst certifying as to the cash
      equivalent value of the publicly marketable securities on the date of such
      Notice. The Offeror need not have any offer in hand, but if it does, then
      the Notice shall be accompanied by a copy of the offer or contract for
      sale. The Offeree shall have fifteen (15) days after the date such Notice
      is delivered to notify the Offeror whether it elects to acquire the
      offered Sale Interest at the same Purchase Price and on the same terms and
      conditions as set forth in the Notice. If such an election is made, then
      the transfer shall be consummated promptly after Notice of such election
      is delivered to the Offeror;

	 	 
	(b) 	
      if the Offeree elects not to acquire the offered Sale
      Interest or fails to so elect within the fifteen (15) day period provided
      above, the Offeror shall have ninety (90) days following the earlier of
      (i) the date of expiration of the above mentioned fifteen (15) day period
      or (ii) the last date when the Offeree elected not to purchase the Sale
      Interest, to consummate the transfer to a third party at a price at least
      equal to the Purchase Price and on terms no less favourable to the Offeror
      than those offered by the Offeror to the Offeree in the Notice required
      herein; and

	 	 
	(c) 	
      if the Offeror fails to consummate the transfer to a
      third party within the said ninety (90) day period, then the pre-emptive
      right of the Offeree in such offered Sale Interest shall be deemed to be
      revived. Any subsequent proposal to transfer such Sale Interest shall be
      conducted in accordance with all the procedures set forth in this Section
      8.

	8.2 	General Exceptions to Pre-emptive Right.
    

Section 8.1 shall not apply to the following:

	(a) 	
      a transfer by the Offeror of all or any part of its
      interest in this Agreement and the Property to an Affiliate; provided
      that:

	 	 	 
		(i) 	
      the transferee remains an Affiliate indefinitely
      thereafter;

	 	 	 
		(ii) 	
      the subsequent transfer of Control of such Affiliate,
      other than to an Affiliate of the original Offeror, whether through the
      issuance or transfer of shares in the capital of the Affiliate or
      otherwise (such that it no longer conforms to the definition of an
      Affiliate) shall be subject to Section 8.1;

	 	 	 
		(iii) 	
      the Affiliate agrees in writing to be bound by the
      provisions hereof; and

	 	 	 
		(iv) 	
      a transfer to an Affiliate shall not relieve the Offeror
      of any of its liabilities and obligations arising under this Agreement;
      or

- 15 -

	(b) 	
      a corporate merger, consolidation, amalgamation, or
      reorganization of the Offeror by which the surviving entity shall be
      subject to all of the liabilities and obligations of the Offeror
      hereunder, including an amalgamation or reorganization involving
      Candev.

	8.3 	Candev’s Exception to the Pre-emptive
      Right. 

     Notwithstanding the above, the
pre-emptive rights described in Section 8.1 of this Agreement do not apply to
Candev prior to Candev exercising the Option. For greater certainty this means
that prior to Candev exercising the Option pursuant to Section 2.6, Candev, and
only Candev, can sell, assign, or transfer all or any part of its interest in
this Agreement to a third party without offering the pre-emptive rights set
forth in Section 8.1 of this Agreement as long the third party is bound by the
terms of this Option Agreement and the subsequent Joint Venture Agreement. Prior
to Candev exercising the Option, Yale must still comply with the pre-emptive
rights described in Section 8.1 hereof.

	8.4 	Prohibition Against Yale

Yale shall not be entitled to:

	(a) 	
      sell, assign, transfer or otherwise deal with all or any
      part of its interest in this Agreement, the Joint Venture Agreement or the
      Property, except as permitted by this Section 8; or

	 	 
	(b) 	
      encumber its interest in this Agreement, the Joint
      Venture Agreement or in the Property in any manner
  whatsoever.

	8.5 	Novation 

     Any permitted assignee of a Party
shall, upon such assignment taking place, be deemed to be a Party as though the
assignee had been an original signatory to this Agreement. All Parties,
including such assignee, shall execute a novation agreement to evidence the
assignee’s commitments on such terms as the Parties may reasonably agree.

SECTION 9 - CONFIDENTIALITY

	9.1 	Confidentiality 

(1) The Parties shall keep confidential all information,
documentation, reports, including without limitation all records obtained from
each other with respect to the Property or in connection with this Agreement
(collectively, “Confidential Information”). Subject to Section 9.2,
neither party shall use any Confidential Information for any purposes not
related to the Property, or in any way detrimental to the other party. Nothing
herein contained shall restrict or prohibit the parties from disclosing the
Confidential Information to their respective consultants, agents, bankers,
lenders, advisors and solicitors as long as such parties agree to keep such
Confidential Information confidential. The Confidential Information referred to
in this Section shall not include:

- 16 -

	(a) 	
      Public information or information in the public domain at
      the time of receipt by a party or its consultants, agents, advisors and
      solicitors;

	 	 
	(b) 	
      Information which becomes public through no fault or act
      of a party or its consultants, agents, bankers, lenders, advisors or
      solicitors;

	 	 
	(c) 	
      Information in the possession of a party not provided by
      the other party or its consultants, agents, bankers, lenders, advisors and
      solicitors;

	 	 
	(d) 	
      Information required to be disclosed by law; or

	 	 
	(e) 	
      Information received in good faith from a third party
      lawfully in possession of the information and not in breach of any
      confidentiality obligations.

(2) If either party is required or requested by legal process
to disclose any Confidential Information, such party will provide the other
party with prompt notice of such requirement or request so that the other party
may seek an appropriate protective order or waive compliance with the provisions
of this requirement or both. If either party is compelled to disclose
Confidential Information to any court or tribunal or else stand liable for
contempt or suffer other censures or penalty, such party may disclose same
without liability hereunder provided that it shall give the other party advance
written notice of the information to be disclosed and, at the request of the
other party, shall seek to obtain assurances that such information will be
accorded confidential treatment.

(3) Yale and Candev each agree that prior to making any press
release concerning the transactions contemplated herein, each of them shall
consult with the other and obtain the other’s written approval with respect to
such press release, which approval shall not be unreasonably or arbitrarily
withheld or delayed, it being acknowledged that it is intended that no press
release will be made until after the completion of Closing, unless required by
law or any applicable stock exchange.

	9.2 	Free Utilization 

     Notwithstanding the generality of
the foregoing, each Party shall be free to utilize information or knowledge
obtained pursuant to the Agreement in connection with the conduct by such Party
for exploration or mining operations for its own benefit and account or for the
benefit and account of any partnership, joint venture or corporation of which it
is a partner or member.

SECTION 10 – FORCE MAJEURE

	10.1 	Force Majeure 

     Neither party shall be liable or
deemed to be in default of its obligations hereunder for any delay or failure in
performance under this Agreement or other interruption of service resulting,
directly or indirectly, from acts of God, acts of governmental, civil or
military authority, acts of war, terrorist acts, accidents, natural disasters or
catastrophes, power outages, 

- 17 -

strikes, or other work stoppages or any other causes beyond the
reasonable control of the party affected thereby (“Force Majeure”).
However, each party shall use its best good faith efforts to perform such
obligations to the extent of its ability to do so in the event of any such
occurrence or circumstances. If a Force Majeure occurs rendering the performance
of an obligation to be performed hereunder reasonably impractical, the date by
which such obligation was to be completed shall be extended by the number of
days that the obligation has been delayed by reason of the Force Majeure.

SECTION 11- NOTICE

	11.1 	Manner 

     Any notice which may be or is
required to be given under the terms of this Agreement shall be in writing and
shall be effective:

	(a) 	
      when personally delivered upon any Party at the address
      designated by it for such service;

	 	 
	(b) 	
      on production of a facsimile transmission report by a
      machine from which the facsimile was sent which indicates that the
      facsimile was sent in its entirety to the facsimile number of the
      recipient being notified for the purposes of this clause; or

	 	 
	(c) 	
      five (5) business days after the same shall have been
      deposited in the mail properly addressed, certified or registered with
      return receipt requested and postage prepaid, unless at the time of such
      posting or within five (5) working days thereafter, any strike, labour
      dispute or similar disruption of mail service shall come into effect, in
      which event such notice shall not be valid.

	11.2 	Addresses 

The addresses for such notices shall be as follows:

	 	To Yale: 	YALE RESOURCES LTD. 
	 	  	Suite 400 – 409 Granville Street
  
	 	  	Vancouver, BC 
	 	  	V6C 1K4 	  
	 	  	  	  
	 	  	Attention: 	Ian Foreman, P.Geo., President 
	 	  	Facsimile: 	(604) 678-2532 
	 	  	  	  
	 	  	AND A COPY TO: 
	 	  	  	  
	 	  	Tupper Jonsson & Yeadon 
	 	  	1710 – 1177 West Hastings Street
  
	 	  	Vancouver, British Columbia 
	 	  	V6E 2L3 	  

- 18 -

	 	  	Attention: 	Lee Tupper 
	 	  	Facsimile: 	(604) 681-0139 
	 	  	  	  
	 	If to Candev: 	CANDEV RESOURCE EXPLORATION INC.
  
	 	  	2200 - 1177 West Hastings Street
  
	 	  	Vancouver, British Columbia 
	 	  	V6E 2K3 	  
	 	  	  	  
	 	  	Attention: 	Mark A. McLeary, President 
	 	  	Facsimile: 	(604) 647-0631 
	 	  	  	  
	 	  	AND A COPY TO: 
	 	  	  	  
	 	  	Clark Wilson LLP 
	 	  	800 - 885 West Georgia Street 
	 	  	Vancouver, British Columbia 
	 	  	V6C 3H1 	  
	 	  	  	  
	 	  	Attention: 	Conrad Nest 
	 	  	Facsimile: 	(604) 687-6314 

Any Party may change the addresses for such notice by giving
the other Parties notice of such change in accordance with the foregoing.

SECTION 12 – INJUNCTION 

	12.1 	Injunctions 

     Yale acknowledges and agrees that
Candev will suffer serious and irreparable harm, which could not be adequately
compensated for in damages in the event Yale breaches or there will be an
anticipatory breach by Yale of this Agreement, and Yale hereby consents to an
injunction and an Order by Consent being entered in the British Columbia Supreme
Court being issued against Yale restraining Yale from such breach or
anticipatory breach and/or requiring Yale to deliver specific performance and
any other equitable remedy deemed desirable by Candev in its absolute discretion
under the terms and conditions of this Agreement, but such action shall not be
construed so as to be in derogation of any other remedy which may be available
in the event of such breach or anticipatory breach. This section shall survive
the termination of this Agreement.

SECTION 13 - INTERPRETATION

	13.1 	Definitions 

     In this Agreement unless the
context otherwise requires, the following words and terms set forth in this
Section 13.1 shall have the meanings respectively assigned to them:

- 19 -

(1) Affiliate means any person, partnership,
venture, corporation, or other form of enterprise which directly or indirectly
Controls, is Controlled by or is under common Control of a Party.

(2) Agreement means this agreement and all
amendments made hereto in accordance with the provisions hereof.

(3) Business Day means any day on which banks are
open for business in the City of Vancouver, British Columbia, but does not
include a Saturday, Sunday or holiday in the Province of British Columbia.

(4) Confidential Information has the meaning
given to it in Section 9.1(1) . 

(5) Control means possession directly or
indirectly of the power to direct or cause direction of management and policies
through ownership of the voting securities, contract voting trust and
otherwise.

(6) Effective Date has the meaning given to it in
Section 6.1.

(7) Encumbrance means any claim, restriction,
charge, mortgage, security interest, lien, option, right of pre-emption or first
refusal, equity, power of sale, hypothecation, servitude or other third party
right, and “Encumber” and “Encumbered” shall be
construed accordingly.

(8) Environmental Claims means any and all
administrative, regulatory or judicial actions, suits, demands, claims, liens,
notices of non-compliance or violation, investigations or proceedings relating
in any way to any Environmental Law or any permit issued under any such
Environmental Law, including, without limitation:

	(a) 	
      any and all claims by governmental or regulatory
      authorities for enforcement, clean-up, removal, response, remedial or
      other actions or damages pursuant to any applicable Environmental Law;
      and

	 	 
	(b) 	
      any and all claims by any third party seeking damages,
      contribution, indemnification, cost recovery, compensation or injunctive
      or other relief resulting from hazardous materials, including any release
      thereof, or arising from alleged injury or threat of injury to human
      health or safety (arising from Environmental matters) or the
      Environment.

(9) Environmental Law means all requirements of
the common law or of Environmental, health or safety statutes, regulations,
rules, ordinances, policies, orders, approvals, notices, licenses, permits or
directives of any federal, territorial, provincial, state or local judicial,
regulatory or administrative agency, board or governmental authority including,
but not limited to those relating to:

	(a) 	
      noise;

	 	 
	(b) 	
      pollution or protection of the air, surface water, ground
      water or land;

- 20 -

	(c) 	
      solid, gaseous or liquid waste generation, handling,
      treatment, storage, disposal or transportation;

	 	 
	(d) 	
      exposure to hazardous or toxic substances; or

	 	 
	(e) 	
      the closure, decommissioning, dismantling or abandonment
      of any facilities, mines or workings and the reclamation or restoration of
      any lands.

(10) Expenditures means the sum of all monies
spent in prospecting, exploring, geological, geophysical and geochemical
surveying, sampling, examining, diamond and other types of drilling, developing,
dewatering, assaying, testing, constructing, maintaining and operating roads,
trails and bridges upon or across the Property, buildings, equipment, plant and
supplies, salaries and wages (including fringe benefits) of employees and
contractors directly engaged therein, insurance premiums, and all other expenses
ordinarily incurred in prospecting, exploring and developing mining lands and
also includes monies spent in acquiring additional claims or concessions which
shall form part of the Property. Expenditures shall also include any tax
payments, option payments and legal costs and fees related to the registration
and maintenance of titles and agreements in the Mexico Mining Registry together
with any value added taxes accruing after the date of this Agreement as well as
any of those costs related to the acquisition of properties from third parties.
Expenditures will also include any and all agreements with third parties for
access to the Property.

(11) Force Majeure has the meaning given to it in
Section 10.1.

(12) Joint Venture means the joint venture formed
between Yale and Candev pursuant to the Joint Venture Agreement.

(13) Joint Venture Agreement means the agreement
entered into by Yale and Candev with respect to the joint venture exploration,
development and production of the Property and attached hereto as Schedule
“B”.

(14) Legal Rights means such contractual and
legal rights of Yale and Candev as described in the Joint Venture Agreement.

(15) Mining Operations means all activities
carried out in, on or under or in connection with the Property related to or
necessary for the development and construction of a mine(s) thereon, the mining,
extraction, treatment, storage and processing of minerals located therein,
thereon or thereunder and the acquisition or construction of any improvements,
personal property, fixtures or equipment reasonably necessary therefor.

(16) Notice means any notice, approval, demand,
direction, consent, designation, request, document, instrument, certificate or
other communication required or permitted to be given under this Agreement.

(17) Operator has the meaning given to it in
Section 2.11

- 21 -

(18) Option has the meaning given to it in
Section 2.1.

(19) Option Period means that period of time
commencing on the Effective Date and terminating on the earlier of the date upon
which:

	(a) 	
      the entire Option is exercised; and

	 	 
	(b) 	
      the Option held by Candev is terminated by the provisions
      of Section 2.4.

(20) Party means Yale or Candev, as applicable,
and its successors and permitted assigns.

(21) Person includes a natural person, firm,
corporation, company, association, partnership, joint venture, unincorporated
syndicate, unincorporated organization, trust, trustee, executive, administrator
or other legal representative, governmental instrumentality or any group or
combination thereof.

(22) Property means property legally described in
Schedule A hereto.

(24) Management Committee means the committee
established under Section 4.

	13.2 	Other Definitions 

     Any words or expressions defined
otherwise in this Agreement including the Schedules shall have the meanings
respectively assigned to them notwithstanding that such definition does not
appear in this Section 13. When used in the Schedules annexed hereto, terms
defined in this Agreement shall have the same meaning unless the Schedules
expressly otherwise define such terms. In case of any other inconsistency
between the terms of this Agreement and the Schedules annexed hereto, the terms
of this Agreement shall prevail.

	13.3 	Table of Contents 

     The Table of Contents to this
Agreement, Sections, Sub-sections and Headings contained herein are included
solely for convenience and are not intended to be full or accurate descriptions
of the content thereof and shall not be considered part of this Agreement.
“Section”, “Subsection”, or “Schedule” means and refers respectively to the
specified Section, Sub-section or Schedule of this Agreement. “Hereof”, “hereto”
and “hereunder” and similar expressions mean and refer to this Agreement and not
to any particular Section or Sub-section.

	13.4 	Gender and Number 

     Words importing the singular
include the plural and vice versa. Words importing gender include all
genders.

	13.5 	Entire Agreement 

     This Agreement including all
Schedules together with the agreements and documents to be delivered pursuant
hereto are the full expression of the Parties’ intentions and rights and the

- 22 -

entire agreement between them pertaining to the subject matter
hereof and supersede all prior agreements, understandings, negotiations and
discussions whether oral or written of the Parties. There are no
representations, warranties or other agreements between the Parties in
connection with the subject matter hereof. No amendment or termination of this
Agreement shall be binding unless executed in writing by the Party to be bound
thereby. No waiver of any other provisions of this Agreement shall be deemed to
or shall constitute a waiver of any other provisions nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.

	13.6 	Survival of Representations and
      Warranties 

     The representations and
warranties made or undertaken by each Party under this Agreement shall survive
termination of this Agreement.

	13.7 	Termination of Prior Agreements
  

     With effect from the date both
Parties have executed this Agreement, any prior agreements, offer term sheets,
or letters of intent shall be deemed to have terminated and to have been
superseded by this Agreement, and the Parties shall be relieved of all their
respective rights and obligations thereunder.

	13.8 	Currency 

     Unless otherwise indicated all
dollar amounts referred to in this Agreement are in Canadian funds.

	13.9 	Law 

     This Agreement shall be
interpreted and construed in accordance with the laws of the Province of British
Columbia and the federal laws of Canada applicable therein and shall be treated
in all respects as a British Columbia contract except to the extent that any
Property or asset affected by this Agreement is subject to the laws of the
jurisdiction where such Property are situate in which case the laws of that
local jurisdiction shall govern to the extent necessary to complete the
transaction.

	13.10 	Rule Against Perpetuities

     Any right or interest granted
under this Agreement that would violate any applicable Rule Against Perpetuities
or any similar rule of law, shall terminate twenty-one (21) years after the
death of the last survivor of the children and grandchildren of Queen Elizabeth
II, who are alive on the Effective Date.

	13.11 	Enurement 

     This Agreement shall enure to the
benefit of and be binding on the successors and permitted assigns of the
Parties.

- 23 -

	13.12 	Further Assurances 

     Each Party shall execute such
deeds, documents and give such further assurances as are necessary or
appropriate in connection with its obligations under this Agreement.

	13.13 	Independent Legal Advice

     Yale and Candev hereby represents
and warrants to the other party that they had the opportunity to seek and were
not prevented nor discouraged by Candev from seeking independent legal advice
prior to the execution and delivery of this Agreement and the Joint Venture
Agreement and that, in the event that they did not avail themselves of that
opportunity prior to signing this Agreement and the Joint Venture Agreement,
they did so voluntarily without any undue pressure and agrees that their failure
to obtain independent legal advice shall not be used by them as a defence to the
enforcement of their obligations under this Agreement and the Joint Venture
Agreement.

	13.14 	Counterparts 

     This Agreement may be executed in
one or more counterparts, each of which shall be an original, but all of which
together shall constitute one and the same instrument, and it shall not be
necessary in making proof of this Agreement to produce an account for more than
one original.

IN WITNESS WHEREOF the Parties have duly executed this
Agreement as of the 7h day of July, 2009.

	 	YALE RESOURCES LTD. 
	 	  	  
	 	Per: 	/s/
    Ian
    Foreman 
	 	  	Authorized Signature 
	 	Name: 	Ian
      Foreman 
	 	Title: 	President 
	 	  	  
	 	I have authority to bind the
      corporation. 
	 	  	  
	 	CANDEV RESOURCE EXPLORATION
  
	 	INC. 	  
	 	  	  
	 	Per: 	/s/ Mark
      McLeary    
	 	  	Authorized Signature 
	 	Name: 	Mark
      McLeary 
	 	Title 	President 
	 	I have authority to bind the
      corporation. 

Schedule A – The Property

“Property” is defined as the following mining concessions
comprising a total area of 2,390.8269 hectares located in north-west Mexico,
situated in the state of Sonora:

	Property 
	Title 
Number 	Claim 
Type 	Holder 
	Size 
(ha) 	Date of 
Issue 	Expiry 
Date 
	Dos Naciones 
	230649 
	Exploration 
	Minera Alta Vista 
S.A. de C.V.(1) 	2,390.8269 
	Sept. 28, 
2007 	Sept. 27, 
2057

	(1) 	
      No legal survey has been conducted on the
    concession.

Schedule B – JOINT VENTURE AGREEMENT

SCHEDULE "B"

Referred to in the Option Agreement dated for Reference 

  July 7, 2009 

  and made between Yale Resources Ltd. 

  the “Optionor” 

  and Candev Resource Exploration Inc. 

  the “Optionee”

PROPERTY DESCRIPTION

- Mineral Rights to Patented Mining Claim -

JOINT VENTURE AGREEMENT

THIS AGREEMENT is dated effective 

BETWEEN:

YALE RESOURCES LTD., a corporation
  organized under the 

  laws of the Province of British Columbia, Canada

AND:

CANDEV RESOURCE EXPLORATION INC.,
  a corporation 

  organized under the laws of the State of Nevada, United States of 

  America

W H E R E A S :

	A. 	 Yale and Candev are parties to a Property Option Agreement
        (the "Option Agreement") dated July xx, 2009, pursuant to which
        Yale sold to Candev a 50% interest in and to grant an option to Candev
        for Candev to acquire an additional 30% interest (for a combined total
        of 80%) in a patented mineral claim described as Dos Naciones (the "Property")
        subject to the reservation of a 2% net smelter interest over the Property;

	 	 
	B. 	 Candev has performed all of its obligations to Yale
        under the Option Agreement such that Candev is now vested with a 80% interest
        in the Property and Yale is vested with a 20% interest in the Property;

	 	 
	C. 	 Yale and Candev wish to associate themselves into a
        joint venture for the purpose of exploring and further developing the
        Property;

NOW THEREFORE, in consideration of the premises and mutual covenants
  contained herein, the parties hereby agree to associate and participate in a
  joint operation (herein called the "Joint Venture") for the purposes
  of exploring the Property and, if being warranted, bringing the Property or
  a portion thereof into production by establishing and operating a mine thereon
  on the terms and conditions hereinafter set forth;

1. Interpretation

     1.1 Definitions. In this
  agreement the following words, phrases and expressions shall have the following
  meanings:

	 	(a) 	 "Assets" means all tangible and intangible goods, chattels,
        improvements or other items including, without limiting the generality
        of the foregoing, land, buildings and equipment, but excluding the Property,
        acquired for or made to the Property under the Option Agreement or this
        agreement in connection with the Mining Operations;

	 	 	 
	 	(b) 	 "Associated Company" means, in respect of a Participant,
        a corporation associated with it within the meaning of the Business
        Corporations Act, British Columbia;

	 	 	 
	 	(c) 	 "Commercial Production" means the operation of the Property
        or any part of it as a Mine but does not include milling for the purpose
        of testing or milling by a pilot plant. Commercial Production shall be
        deemed to have commenced on the first day of the month following the first
        thirty consecutive days during which Mineral Products have been
        produced from the Property at an average rate not less than 70% of
        the initial rated capacity of the facilities;

	 	 	 
	 	(d) 	 "Cost Share" means the respective shares of all Costs
        and other liabilities under this agreement to be borne by each Participant
        after the Participation Date and shall be equal to the respective Interests
        of each Participant as determined from time to time;

	 	 	 
	 	(e) 	 "Costs" means all items of outlay and expense whatsoever,
        direct or indirect, with respect to Mining Operations, recorded by the
        Operator in accordance with this agreement incurred after the Participation
        Date:

	 	 	 
	 	(f) 	 "Interest" means the undivided beneficial percentage
        interest of a party in the Assets and shall be equal to its interest in
        the Property as determined pursuant to this agreement, respectively;

	 	 	 
	 	(g) 	 "Joint Venture" shall have the meaning attributed to
        it in paragraph 2.1;

	 	 	 
	 	(h) 	 "Management Committee" means the committee established
        pursuant to paragraph 4;

	 	 	 
	 	(i) 	 "Mine" means the workings established and Assets acquired
        including

	 		 development headings, plant and concentrator installations,
        infrastructure, housing, airport and other facilities in order to bring
        the Property into Commercial Production;

	 	 	 
	 	(j) 	 "Mineral Products" means the end products derived from
        operating the Property as a Mine;

	 	 	 
	 	(k) 	 "Mining Operations" means every kind of work done on
        or in respect of the Property by or under the direction of the Management
        Committee including, without limiting the generality of the foregoing,
        the work of assessment, geophysical, geochemical and geological surveys,
        studies and mapping, investigating, drilling, designing, examining, equipping,
        improving, surveying, shaft-sinking, raising, cross-cutting and drifting,
        searching for, digging, trucking, sampling, working and procuring minerals,
        ores and metals, surveying and bringing any mining claims to lease or
        patent, and all other work usually considered to be prospecting, exploration,
        development and mining work; in paying wages and salaries of workers engaged
        in the work and in supplying food, lodging, transportation and other reasonable
        needs of those workers; in paying assessments or premiums for workers'
        compensation insurance, contributions for unemployment insurance or other
        pay allowances or benefits customarily paid in the district to those workers;
        in paying rentals, licence renewal fees, taxes and other governmental
        charges required to keep the Property in good standing; in purchasing
        or rental plant, buildings, machinery, tools, appliances, equipment or
        supplies and in installing, erecting, detaching and removing them; mining,
        milling, concentrating rehabilitation, reclamation, and environmental
        protections and in the management of any work which may be done on the
        Property or in any other respect necessary for the due carrying out of
        the prospecting, exploration and development work;

	 	 	 
	 	(l) 	 "Net Profits Interest" shall have the meaning attributed
        to it in Schedule 1 attached hereto;

	 	 	 
	 	(m) 	 "Operator" means the party appointed as the Operator
        in accordance with paragraph 5;

	 	 	 
	 	(n) 	 "Participant" means any party having an interest and
        its successors and permitted assigns and "Participants" means collectively
        all parties having an Interest and their respective successors and permitted
        assigns;

	 	 	 
	 	(o) 	 "Participation Date" shall mean xxxxxxxxxxxxxxx;

	 	 	 
	 	(p) 	 "party" or "parties" means the parties to this agreement
        and their respective successors and permitted assigns which become parties
        pursuant to this agreement;

	 	 	 
	 	(q) 	 "Prime Rate" means the rate of interest quoted or published
        by the Bank of

	 		 Canada from time to time as being its
        rate of interest per annum charged from time to time at Vancouver,
        British Columbia for loans made in lawful money of Canada to prime
        commercial borrowers;

	 	 	 	 
	 	(r) 	 "Program" means any program to carry out work
        and incur Costs on the Property and includes as the context requires:

	 	 	 	 
	 		(i) 	 a document or documents wherein there is specified in
        reasonable detail an outline of any and all research, prospecting and
        exploration and development work proposed to be carried out during the
        program, the estimated Costs as to be incurred in carrying out the work
        and the area of the Property on which the work is to be undertaken, and

	 	 	 	 
	 		(ii) 	 the preparation of any feasibility report,

     and shall include any amendments
  to a Program as may be agreed on by the Management Committee;

	 	(s) 	 "Property" means the certain property described in Schedule
        "A" to the Option Agreement, and all other interests in mineral properties
        made subject to this agreement by the parties.

     1.2 Included words. This
  agreement shall be read with those changes in gender or number as the context
  shall require.

     1.3 Headings. The headings
  to the paragraphs of this agreement are inserted for convenience only and shall
  not affect the construction of this agreement.

     1.4 References. Unless otherwise
  stated, a reference to a numbered or lettered paragraph refers to the paragraph
  bearing that number or letter in this agreement. A reference to this agreement
  or in this agreement, means this agreement including the schedules, together
  with any amendments.

     1.5 Currency. All dollar
  amounts expressed in this agreement refer to lawful currency of Canada.

     1.6 Schedules. The following
  schedules are incorporated into this agreement by reference:

	Schedules 	Description 
	     1 	Net Profits Interest 

     1.7 Governing law. This
  agreement shall be construed and governed by the laws in force in the Province
  of British Columbia.

2. Joint Venture

     2.1 Formation of the Joint Venture.
  Candev and Yale agree to associate and participate in, and form, a Joint Venture
  for the purpose of carrying out all acts which are necessary or appropriate,
  directly or indirectly, to:

	 	(a) 	 explore and, if deemed warranted as provided in this
        agreement, develop the Property and equip it for Commercial Production;

	 	 	 
	 	(b) 	 operate the Property as a Mine; and

	 	 	 
	 	(c) 	 engage in such other activity as may be considered by
        the Participants to be necessary or desirable in connection with the foregoing.

     2.2 Authority. All transactions,
  contracts, employments, purchases, operations, negotiations with third parties
  and any other matter or act undertaken on behalf of the Participants in connection
  with the Property shall be done, transacted, undertaken or performed in the
  name of the Operator only, and no party shall do, transact, perform or undertake
  anything in the name of the other party or in the joint names of the Participants.

2.3 Relationship of parties.

     (1) After the Participation Date
  the rights and obligations of the Participants shall be, in each case, several,
  and shall not be or be construed to be either joint or joint and several. Nothing
  contained in this agreement shall, except to the extent specifically authorized
  under this agreement, be deemed to constitute a Participant a partner, an agent
  or legal representative of any other party. It is intended that this agreement
  shall not create the relationship of a partnership between the Participants
  and that no act done by any Participant pursuant to the provisions of this agreement
  shall operate to create such a relationship.

     (2) Claims by third parties arising
  out of the activities of the Joint Venture shall be borne by the Participants
  in proportion to their ownership interest in and to the Property, and the other
  party or parties to this agreement shall have a right of contribution therefor
  against one another.

     (3) The right of each party to
  mine and market production from other sources in competition with the other
  parties and of each Participant to market its share of any Mineral Product in
  competition with any other Participant is confirmed. This agreement shall not
  be construed so as to preclude or restrict that right.

     2.4 Responsibility For Expenditures.
  Except as otherwise provided in this agreement, the parties shall bear all Costs
  and all liabilities arising under this agreement, and shall own the Property,
  in proportion to their respective Interests.

     2.5 Continuing Interests.
  Each Participant shall have an Interest as is determined in accordance with
  the provisions of this agreement, and any legal title to any of the Assets or
  Property held by any Participant shall be subject to this agreement.

     2.6 Term. Unless earlier
  terminated by agreement of all parties having an Interest or as a result of
  one party acquiring a 100% Interest and the other party a 2% Net Smelter interest
  (see Appendix I), the joint operation and this agreement shall remain in full
  force and effect for so long as any party has any right, title or interest in
  the Property. Termination of the agreement shall not, however, relieve any party
  from any obligations accrued but unsatisfied, nor from its obligations with
  respect to rehabilitation of the Mine site and reclamation.

3. Interests of Participants

     3.1 Initial Interests. On
  the Participation Date, Candev shall have an undivided 80% Interest and Yale
  shall have an undivided 20% Interest, subject to the reservation of a 2% net
  smelter return royalty as provided for and defined in the Option Agreement.
  Thereafter, each Participant shall have an Interest as is determined from time
  to time in accordance with the provisions of this paragraph.

     3.2 Deemed expenditures.
  On the Participation Date the Optionor and the Optionee will each have made
  or be deemed to have made the following expenditures:

	 	Party: 	Deemed Expenditures: 	Deemed Percentage Interest: 
	 	Yale 	$ 203,750 	20 % 
	 	Candev 	$ 815,000 	80 % 
	 	Total: 	$ 1,018,750 	100 % 

     3.3 Adjustment of Interests.
  Subsequent to the Participation Date, the respective Interests of the Participants
  shall be determined from time to time as being equal to the product obtained
  by multiplying 100% by a fraction of which the numerator is the amount of that
  party's contributions to Costs after the Participation Date plus that party's
  deemed expenditure, and the denominator is the amount of all contributions to
  Costs made subsequent to the Participation Date by all Participants plus the
  deemed expenditures by both parties.

     3.4 Net Smelter Interest.
  The respective Interests of the Participants shall not change so long as they
  each contribute their respective Cost Share of every Program as set out in paragraph
  7. At any time after a Participant loses its right to contribute to a Program
  its respective Interest shall be reduced in accordance with the formula set
  out in paragraph 3.3. If, as a result of that calculation, the Interest of a
  Participant is reduced to below 10 %, the Interest of that party shall be converted
  to a 2 % Net Smelter Interest, as set out in paragraph 8, and thereafter the
  party whose Interest has been reduced shall be deemed not to be a party to this
  agreement and shall have no further rights under this agreement or in respect
  of the Property.

Upon agreement of the parties, 50% of the Net Smelter Interest
  (or a total of 1%) may be purchased by the other party for $1,000,000 and the
  second 50% (or a total of 1%) for $1,500,000.

4. Management Committee

     4.1 Formation of Management
  Committee. A Management Committee shall be established on or immediately
  after the Participation Date. Except as otherwise provided, the Management Committee
  shall make all decisions in respect of Mining Operations.

     4.2 Appointment of representatives.
  Each party shall immediately appoint one representative and one alternate representative
  to the Management Committee, and give the other party notice of the appointments.
  The alternate representative may attend all meetings and may act for a party's
  representative in his absence. A Participant may from time to time revoke in
  writing the appointment of its representative or alternate representative, and
  appoint in writing a substitute.

     4.3 Meetings. The Operator
  shall call a Management Committee meeting at least once every twelve months
  and, in any event, within fourteen days of being requested to do so by any representative.

     4.4 Notice of meetings.
  The Operator shall give notice, specifying the time and place in Canada of,
  and the agenda for, the meeting, to all Participants, representatives and alternate
  representatives at least seven days before the time appointed for the meeting.

     4.5 Waiver of notice. Notice
  of a meeting shall not be required if one representative of each party is present
  at a meeting and unanimously agree on the agenda.

     4.6 Quorum. A quorum for
  any Management Committee meeting shall be present if one representative of each
  party is present. If a quorum is present at the meeting, the Management Committee
  shall be competent to exercise all of the authorities, powers and discretions
  bestowed on it under this agreement. No business other than the election of
  a chairperson, if any, and the adjournment or termination of the meeting shall
  be transacted at any meeting unless a quorum is present at the commencement
  of the meeting but the quorum need not be present throughout the meeting. If
  within half an hour from the time appointed for a meeting, a quorum is not present,
  the meeting shall, at the election of those representatives who are present:

	 	(a) 	 be dissolved; or

	 	 	 
	 	(b) 	 be adjourned to the same place but on a date and at
        a time, to be fixed by the chairperson of the meeting before the adjournment,
        which shall be not less than fourteen days following the date for which
        the meeting was called.

Notice of the adjourned meeting shall be given to the representatives
  of all parties immediately after the adjournment of the meeting. If at the adjourned
  meeting, a quorum is not present within half an hour from the time appointed,
  the representative or representatives present and entitled to attend and vote
  at the meeting, shall be a quorum even if only one person is present.

4.7 Votes. The Management Committee shall decide every
  question submitted to it by a 

vote with each representative being entitled to cast that number
  of votes which is equal to its party's Interest percentage. The Management Committee
  shall make decisions by a majority of votes in excess of 50% of the votes entitled
  to be cast.

     4.8 Chairperson. The representative
  of the Operator shall be the chairperson of Management Committee meetings. The
  chairperson shall be entitled to appoint the secretary for the meeting.

     4.9 Minutes. The secretary
  of the Management Committee meeting shall take minutes of that meeting and circulate
  copies to each representative.

     4.10 Consent decisions.
  The Management Committee may make decisions by obtaining the consent to a resolution
  in writing of the representatives of all parties. Any decision so made shall
  be as valid as a decision made at a duly called and held meeting of the Management
  Committee.

     4.11 Decisions binding.
  Management Committee decisions made in accordance with this agreement shall
  be binding on all of the parties.

     4.12 Expense. Each party
  shall bear the expenses incurred by its representatives and alternate representatives
  in attending meetings of the Management Committee.

     4.13 Rules. The Management
  Committee may, by agreement of the representative of all the parties, establish
  other rules of procedure, not inconsistent with this agreement, as the Management
  Committee deems fit.

5. Appointment of Operator

     5.1 Initial Operator. The
  party holding the single largest Interest shall be the initial Operator and
  shall be entitled to continue to act as Operator until it resigns or its Interest
  is reduced so that it ceases to hold the single largest Interest. Thereafter
  the party which was non-Operator, if it has consented, shall act as Operator
  until that time it resigns or its Interest is reduced so that it ceases to hold
  the single largest Interest. In the event the parties have equal Interests,
  Candev shall act as Operator.

     5.2 Resignation. The party
  acting as Operator may resign as Operator on at least ninety days' notice to
  all the parties. The Management Committee shall thereupon select any party to
  be Operator on the ninetieth day after receipt of the Operator's notice of resignation.

     5.3 New Operator. The new
  Operator shall assume all of the rights, duties, liabilities and status of the
  previous Operator as provided in this agreement. The new Operator shall have
  no obligation to hire or continue the employment of any of the employees of
  the former Operator resulting from this change of Operator.

     5.4 Delivery of records.
  On ceasing to be Operator, the former Operator shall immediately deliver to
  the person nominated for that purpose by the Management Committee, the 

custody of all the Property, books, records and other property
  both real and personal relating to this agreement.

     5.5 No replacement for Operator.
  If the Operator resigns and no other party consents to act as Operator the joint
  operation shall terminate and the provisions of paragraph 14 shall apply mutatis
  mutandis.

     5.6 Compensation of Operator.
  The Operator shall be entitled to reimbursement for all of its expenditures
  reasonably incurred in its duties as Operator from the Participants and its
  compensation will be part of the budget of each Program.

6. Rights, duties and status of Operator

     6.1 Status. The Operator
  in its operations under this agreement shall be deemed to be an independent
  contractor. The Operator shall not act or hold itself out as agent for any of
  the parties nor make any commitments on their individual behalf unless specifically
  permitted by this agreement or directed in writing by a party.

     6.2 Performance of duties.
  Subject to any specific provision of this agreement and subject to it having
  the right to reject any direction on reasonable grounds by virtue of its status
  as an independent contractor, the Operator shall perform its duties in accordance
  with the directions of the Management Committee and in accordance with this
  agreement.

     6.3 Management Committee direction.
  The Operator shall manage and carry out the Mining Operations as the Management
  Committee may direct and in connection with it shall, in advance, if reasonably
  possible notify the Management Committee of any change in Mining Operations
  which the Operator considers material and if it is not reasonably possible,
  the Operator shall notify the Management Committee as soon as is reasonably
  possible.

     6.4 Responsibilities. The
  Operator shall have the sole and exclusive right and authority to manage and
  carry out all Mining Operations and to incur the Costs required for that purpose.
  In so doing the Operator shall:

	 	(a) 	 comply with the provisions of all agreements or instruments
        of title under which the Property or Assets are held;

	 	 	 
	 	(b) 	 pay all Costs properly incurred promptly as and when
        due;

	 	 	 
	 	(c) 	 keep the Property and Assets free of all liens and encumbrances
        (other than those, if any, in effect on the Participation Date or the
        creation of which is permitted pursuant to this agreement) arising out
        of the Mining Operations and, in the event of any lien being filed as
        mentioned, proceed with diligence to contest or discharge them;

	 	 	 
	 	(d) 	 prosecute claims or, where a defence is available, defend
        litigation arising out of the Mining Operations, provided that any Participant
        may join in the prosecution

	 		 or defence at its own expense;

	 	 	 
	 	(e) 	 subject to paragraph 7, perform assessment work or make
        payment in lieu of it and pay the rentals, taxes or other payments and
        do all other things as may be necessary to maintain the Property in good
        standing including staking and restaking mining claims, and applying for
        licences, leases, grants, concessions, permits, patents and other rights
        to and interests in the Mineral Product;

	 	 	 
	 	(f) 	 account to the Participants for all contributions to
        Costs;

	 	 	 
	 	(g) 	 maintain accounts in accordance with principles generally
        accepted in the mining industry in Canada;

	 	 	 
	 	(h) 	 perform its duties and obligations in a sound and workmanlike
        manner, in accordance with sound mining and engineering practices, and
        in compliance with all applicable federal, provincial, territorial and
        municipal laws, by-laws, ordinances, rules and regulations and this agreement;

	 	 	 
	 	(i) 	 regulate access to the Property subject only to the
        right of designates of the Participants duly authorized in writing to
        have access to the Property at all reasonable times for the purpose of
        inspecting work being done on the Property but at their own risk and expense;

	 	 	 
	 	(j) 	 employ and engage employees, agents and independent
        contractors as it may consider necessary or advisable to carry out its
        duties and obligations and in this connection to delegate any of its powers
        and rights to perform its duties and obligations under this agreement,
        but the Operator shall not enter into contractual relationships with a
        Participant or any Associated Company of a Participant except on terms
        which are commercially competitive;

	 	 	 
	 	(k) 	 permit the Participants, at their own expense, to inspect,
        take abstracts from or audit any or all of the records and accounts referred
        to in paragraph (f) during normal business hours;

	 	 	 
	 	(l) 	 obtain and maintain, or cause any contractor engaged
        under this agreement to obtain and maintain, during any period in which
        active work is carried out under this agreement, adequate insurance;

	 	 	 
	 	(m) 	 arrange for and maintain workers' compensation or equivalent
        coverage for all eligible employees engaged by the Operator in accordance
        with local statutory requirements;

	 	 	 
	 	(n) 	 transact, undertake and perform all transactions, contracts,
        employments, purchases, operations, negotiations with third parties and
        any other matter or thing undertaken on behalf of the parties in the Operator's
        name.

7. Exploration Programs

     7.1 Expenditures. After
  the Participation Date, Costs shall only be incurred under and pursuant to Programs
  prepared by the Operator and delivered to the Management Committee as provided
  in this paragraph.

     7.2 Preparation of Programs.
  Immediately after the Participation Date and thereafter on or before November
  15th each year or within ninety days of completion
  of the last Program, the Operator shall prepare and submit to the Management
  Committee a draft Program for the next calendar year. The draft Program shall
  contain a statement in reasonable detail of the proposed Mining Operations and
  estimates of all Costs to be incurred.

     7.3 Review of Program. The
  Management Committee shall review the Program prepared and, if it deems fit,
  adopt the Program with those modifications, if any, as the Management Committee
  deems necessary. The Operator shall be entitled to an allowance for a cost overrun
  of 10% in addition to any budgeted Costs and any Costs so incurred shall be
  deemed to be included in the Program, as adopted.

     7.4 Submission of Program.
  The Operator shall immediately submit the adopted Program to the parties. Each
  party may, within thirty days of receipt of the Program, give written notice
  to the Operator committing to contribute its proportionate share of the Costs
  on that Program. A party which fails to give that notice within the thirty-day
  period shall be deemed to have elected not to contribute. If any party elected
  or is deemed to have elected not to contribute to a Program, the other Participant
  may give notice in writing to the Operator stating that it will contribute all
  expenditures under or pursuant to the Program and the Operator will proceed
  with that Program and thereafter the Interests of the parties shall be adjusted
  in accordance with paragraph 3.3. The Operator will not proceed with any Program
  which is not fully subscribed.

     7.5 Commencement of Program.
  If the Participants elect to contribute their respective Cost Share of a Program,
  or if a Participant gives notice that it will contribute all expenditures under
  a Program, the Operator will proceed with the Program.

     7.6 Mandatory expenditures.
  Notwithstanding paragraph 7.1, if, in any year in which there is no Program
  adopted pursuant to this agreement, circumstances are such that the Operator
  must incur costs in order to maintain tenure to the Property, to satisfy contractual
  obligations or obligations imposed by law, to prevent waste or to protect life
  and property (in this paragraph called "non-discretionary costs"), the Operator
  shall immediately propose a program (in this paragraph called the "mandatory
  program") to incur those non-discretionary costs and provide each party with
  one copy of it. The mandatory program shall be deemed to be approved and each
  of the parties shall be obligated to contribute to the non-discretionary costs
  incurred in proportion to their respective Interest within thirty days of receipt
  of the Operator's invoice; failing which contribution paragraph 7.9 shall apply.

     7.7 Liability for payment.
  An election by a Participant to contribute to a Program shall make that Participant
  liable to pay its Cost Share or all of the Costs if it has so elected, actually
  incurred under or pursuant to the Program including Program Overruns, as defined,
  of up to but 

not exceeding 10%.

7.8 Invoicing of expenditures.

(1) The Operator shall be entitled to invoice each Participant:

	 	(a) 	 no more frequently than monthly, for its proportionate
        share of Costs incurred and paid by the Operator; or

	 	 	 
	 	(b) 	 thirty days in advance of requirements, but in any event
        not to exceed the requirements for the next calendar quarter, for an advance
        of that Participant's proportionate share of Costs.

     (2) Each invoice shall be signed
  by some responsible official of the Operator. Each Participant shall pay to
  the Operator the amount invoiced, within thirty days of receipt of the invoice.
  If a Participant protests the correctness of an invoice it shall nevertheless
  be required to make the payment.

     7.9. Failure to pay. If
  any Participant fails to pay its proportionate share of, or all of the Costs
  if it has so elected, within the thirty-day period referred to in paragraph
  7.8 the Operator may by notice demand payment. If no payment is made within
  the period of thirty days next succeeding the receipt of the demand notice the
  other Participant may elect to increase their contributions to satisfy the shortfall,
  or the Operator shall curtail or abandon the Program, and the defaulting Participant
  shall be deemed to have forfeited its right to contribute to any further Costs
  under this agreement and it shall not receive notice of and shall be deemed
  to have elected not to contribute to each Program subsequently conducted and
  to a Production Notice and accordingly shall have its Interest reduced in the
  manner contemplated in paragraph 7.12.

     7.10 Program Overruns. If
  it appears that Costs will exceed by greater than 10% those estimated under
  a Program, the Operator shall immediately give written notice to the Participants
  contributing to that Program outlining the nature and extent of the additional
  costs and expenses (the "Program Overruns"). If Program Overruns are not approved
  by the Participants contributing to that Program, the Operator shall the right
  to curtail or abandon the Program.

     7.11 Suspension of Program.
  If any Program is altered, suspended or terminated prematurely so that the Costs
  incurred on that Program as altered, suspended or terminated are less than 80%
  of the Costs originally proposed, any party which elected not to contribute
  to that Program shall be given notice of the alteration, suspension or termination
  by the Operator and shall, subject to paragraph 7.9, be entitled to contribute
  its proportionate share of the Costs incurred on that Program by payment thereof
  to the Operator within thirty days after receipt of the notice. If payment is
  not made by that party within thirty days it shall forfeit its right to contribute
  to that Program without a demand for payment being required to be made thereafter
  by the Management Committee.

     7.12 Adjustment of Interests.
  If a party elects not to contribute to the Costs of any Program, the Interest
  of that party shall be decreased and the Interest of each Participant 

contributing in excess of its proportionate share of the Costs
  shall be increased so that, subject to paragraph 8.1, the Interest of each party
  will be that percentage calculated as set out in paragraph 3.3. Except in the
  events described in paragraph 7.9 or if that party's Interest is assigned or
  conveyed as contemplated in paragraph 8.1, the party whose Interest has been
  reduced shall be entitled to receive details of and contribute to future Programs
  to the extent of its then Interest.

     7.13 Funds spent ratably.
  The Operator shall expend all moneys advanced by a Participant ratably with
  the advances of the other Participants. If the Operator suspends or prematurely
  terminates a Program, any funds advanced by a Participant in excess of that
  Participant's proportionate share of Costs incurred prior to the suspension
  or premature termination shall be refunded immediately.

     7.14 Election not to contribute.
  Notwithstanding that a Participant has or is deemed to have elected not to contribute
  to a Program under paragraph 7.4, it shall nevertheless, subject to paragraphs
  7.9 and 8.1, be entitled to elect to participate in and contribute to future
  Programs under this agreement.

8. Non-participation

     8.1 Effect of non-participation.
  If a party (in this paragraph called the "Assigning Party") has its Interest
  reduced, at any time to less than 10 % as a result of the operation of paragraph
  7.12, the Assigning Party shall be deemed to have assigned and conveyed its
  Interest to the Participants, if more than one then in proportion to their respective
  Interests and, in consideration of that assignment and conveyance, shall be
  entitled to receive as its sole remuneration and benefit, a royalty, as and
  when available, in the amount of 2% of the Net Smelter Interest. On such assignment,
  the Assigning Party shall cease to have any further right or Interest under
  this Agreement. Each Participant shall severally calculate and cause to be paid
  to the Assigning Party that portion of any of the Net Profits derived from the
  Property to which the Assigning Party is entitled in the manner provided in
  Schedule 1 to this agreement.

9. Financing

     9.1 Responsibility of Participants.
  The contributions of the Participants toward the Costs shall be individually
  and separately provided by them.

     9.2 Encumbrances. Solely
  in order to secure loans to meet their respective contributions toward the Costs,
  the Participants shall each be entitled to pledge, mortgage, charge or otherwise
  encumber, as security for financing their respective contributions, the Property
  and Assets to the extent of their respective Interests; provided, however, that
  security shall not be given by any party unless the proposed pledgee, mortgagee,
  holder of the charge or encumbrance (the "Chargee") first undertakes in writing
  with all the other Participants, in form reasonably satisfactory to counsel
  for the Operator and binding on the Chargee, that:

	 	(a) 	 the Chargee will not enter into possession or institute
        any proceedings for foreclosure or partition of an encumbering Participant's
        Interest or interest in the Property and that that security shall be subject
        to the provisions of this agreement;

	 	(b) 	 the Chargee's remedies under the encumbrance
        shall be limited to the sale of the whole (but only of the whole) of the
        encumbering Participant's Interest and interest in the Assets held under
        that security to the other Participants, if more than one then in proportion
        to their respective Interests at that time or, with their unanimous consent,
        to any one of them, or failing any sale as mentioned, by a sale at a public
        auction to be held after ninety days' prior notice to the other Participants;
        provided, however, that as a condition of the purchase, the purchaser
        shall agree with the parties that it:

	 	 	 	 
	 		(i) 	 assumes all the obligation of the encumbering Participant
        in connection with this agreement, and

	 	 	 	 
	 		(ii) 	 will be bound by this agreement, and,

 prior to completing the purchase,
  delivers to the parties notice to that effect in writing, in form reasonably
  satisfactory to counsel for the Operator.

10. Disposition of production

     10.1 Allocation of production.
  For any period after the commencement of Commercial Production and provided
  that each Participant has paid to the Operator its respective Cost Share for
  that period, each Participant shall take in kind and separately dispose of Mineral
  Products in the ratio of each Participant's respective Interest.

     10.2 Value of Mineral Products.
  For purposes of determining the value of Mineral Products taken in kind pursuant
  to paragraph 10.1, each Participant's share of Mineral Products shall be valued
  at the time of delivery to the Participants at a value equal to that received
  by Candev for its share of the Mineral Products after deduction of:

	 	(a) 	 all costs of transporting Mineral Products, including
        insurance, from the Property to the place of delivery designated by the
        purchaser of the Mineral Products;

	 	 	 
	 	(b) 	 a reasonable charge for marketing Mineral Products as
        is consistent with generally accepted industry marketing practices; and

	 	 	 
	 	(c) 	 all taxes (other than income taxes), royalties or other
        charges or imposts provided for pursuant to any law or legal obligation
        imposed by any government if paid by the Participant in connection with
        the disposition of Mineral Products taken in kind.

     10.4 Extra expenditure.
  Any extra expenditure incurred by reason of the taking in kind or separate disposition
  by a Participant of its proportionate share of Mineral Products shall be borne
  by that Participant and that Participant shall be required to construct, operate
  and maintain, at its own expense, any and all facilities which may be necessary
  to receive, store and dispose of its share of Mineral Products.

     10.5 Operator's authority.
  If any Participant fails to make the necessary arrangements to take in kind
  or separately dispose of its proportionate share of Mineral Products, the Operator
  as agent may purchase for its own account or sell that share, subject to the
  right of the Participant owning the share to revoke at will the Operator's authority
  under this paragraph in respect of Mineral Products not then purchased by the
  Operator or committed for sale to others, and the Operator shall be entitled
  to deduct from the sale proceeds all costs of or related to marketing the Mineral
  Products as is consistent with generally accepted industry marketing practices
  including, without limitation, transportation, storage, commissions and discounts
  but all contracts of sale executed by the Operator for a Participant's share
  of Mineral Products shall be only for reasonable periods of time as are consistent
  with the minimum needs of the industry under the circumstances and in no event
  shall any contract be for a period in excess of one year.

     10.6 Payment of proceeds. Proceeds,
  if any, from the sale by the Operator of Mineral Products pursuant to paragraph
  10.5 shall be calculated by the Operator separately for each Participant at
  the end of each calendar month and shall be paid monthly within twenty days
  after the end of each calendar month following payment to the Operator by each
  Participant of its respective Cost Share outstanding as at the end of that calendar
  month.

     10.7 Non-arm's length transaction.
  If the Operator, any Associated Company of the Operator, or any person with
  whom the Operator is not dealing at arm's length is a purchaser of Mineral Products
  from the Operator, and if the value of the Mineral Products is used to determine
  any matter arising under this paragraph, the Operator shall be required to receive
  competitive prices for all Mineral Products so sold.

     10.7 Records. The records
  relating to Mineral Products taken in kind or to the calculation of proceeds
  from the sale thereof shall be audited annually at the end of each fiscal year
  of the Operator and:

	 	(a) 	 any adjustments required by the audit shall be made
        immediately; and

	 	 	 
	 	(b) 	 a copy of the audited statements shall be delivered
        to the Participants.

Any of the Participants shall, at reasonable times and on notice
  in writing to the Operator, have the right to inspect, audit and copy the Operator's
  accounts and records relating to the accounting for Mineral Products taken in
  kind or to the determination of proceeds from the sale thereof for any calendar
  year within twelve months following the end of the calendar year. All accounts
  and records shall be deemed to be correct and accurate unless questioned by
  a Participant within twelve months following the end of the calendar year to
  which the accounts relate. The Participants shall make all reasonable efforts
  to conduct audits in a manner which will result in a minimum of inconvenience
  to the Operator.

11. Surrender of Interest

     11.1 Surrender of Interest.
  Any party may, at any time on notice, surrender its entire Interest to the other
  parties by giving those parties notice of surrender, which notice shall:

	 	(a) 	 indicate a date for surrender not less than
        three months after the date on which the notice is given; and

	 	 	 	 
	 	(b) 	 contain an undertaking that the surrendering
        party will:

	 	 	 	 
	 		(i) 	 satisfy its proportionate share, based on its then Interest,
        of all obligations and liabilities which arose at any time prior to the
        date of surrender;

	 	 	 	 
	 		(ii) 	 pay its proportionate share, based on its then Interest,
        of the Costs of rehabilitating the Mine site and of reclamation as at
        the date of surrender; and

	 	 	 	 
	 		(iii) 	 hold in confidence, for a period of two years from the
        date of surrender, all information and data which it acquired pursuant
        to this agreement.

     11.2 Relief from liabilities.
  On the surrender of its entire Interest as contemplated in paragraph 11.1 and
  on delivery of a release in writing, in form acceptable to counsel for the Operator,
  releasing the other parties from all claims and demands under this agreement,
  the surrendering party shall be relieved of all obligations or liabilities except
  for those which arose or accrued or were accruing due on or before the date
  of the surrender.

     11.3 Acceptance of surrender.
  A party to whom a notice of surrender has been given as contemplated in paragraph
  11.1 may elect, by notice within ninety days to the party which first gave the
  notice, to accept the surrender, in which case paragraphs 11.1 and 11.2 shall
  apply, or to join in the surrender. If all of the parties join in the surrender
  the Joint Operation shall be terminated in accordance with paragraph 13.

     11.4 Execution of instruments.
  The withdrawing party shall remain obligated to execute and deliver those instruments
  as may be necessary to formally effect the transfer of its Interest to the other
  Participants.

12. Suspension and termination of Mining Operations

     12.1 Suspension of operations.
  The Operator may, at any time subsequent to the Participation Date, on at least
  thirty days' notice to all Participants, recommend that the Management Committee
  approve that Mining Operations be suspended. The Operator's recommendation shall
  include a plan and budget (in this paragraph called the "Mine Maintenance Plan"),
  in reasonable detail, of the activities to be performed to maintain the Assets
  and Property during the period of suspension and the Costs to be incurred. The
  Management Committee may, at any time subsequent to the completion date, cause
  the Operator to suspend Mining Operations in accordance with the Operator's
  recommendation with such changes to the Mine Maintenance Plan as the Management
  Committee deems necessary. The Participants shall be committed to contribute
  their proportionate share of the Costs incurred in connection with the Mine
  Maintenance Plan. The Management Committee may cause Mining Operations to be
  resumed at any time.

     12.2 Termination of operations.
  The Operator may, at any time following a period of at least ninety days during
  which Mining Operations have been suspended, on at least thirty days' notice
  to all Participants, or in the events described in paragraph 12.1, recommend
  that the Management Committee approve the permanent termination of Mining Operations.
  The Operator's recommendation shall include a plan and budget (in this paragraph
  called the "Mine Closure Plan"), in reasonable detail, of the activities to
  be performed to close the Mine and reclaim the Property. The Management Committee
  may, by unanimous approval of the representatives of all Participants, approve
  the Operator's recommendation with those changes to the Mine Closure Plan as
  the Management Committee deems necessary.

     12.3 Disposal of Assets.
  If the Management Committee approves the Operator's recommendation as mentioned
  it shall cause the Operator to:

	 	(a) 	 implement the Mine Closure Plan, whereupon the Participants
        shall be committed to pay, in proportion to their respective Interests,
        those Costs as may be required to implement that Mine Closure Plan;

	 	 	 
	 	(b) 	 remove, sell and dispose of the Assets as may reasonably
        be removed and disposed of profitably and any other Assets as the Operator
        may be required to remove pursuant to applicable environmental and mining
        laws; and

	 	 	 
	 	(c) 	 sell, abandon or otherwise dispose of the Property.

The disposal price for the Assets and the Property shall be the
  best price obtainable and the net revenues, if any, from the removal and sale
  shall be credited to the Participants in proportion to their respective Interests.

     12.4 Lack of approval. If
  the Management Committee does not approve the Operator's recommendation contemplated
  in paragraph 12.2, the Operator shall maintain Mining Operations in accordance
  with the Mine Maintenance Plan as approved pursuant to paragraph 12.1.

13. Area of interest

     13.1 Area of interest. The
  area of interest shall be deemed to comprise that area which is included within
  two kilometres of the outermost boundary of the mineral properties which constitute
  the Property as at the Participation Date. Claims owned by Yale previous to
  the signing of the Option Agreement are not affected by this Area of Interest.

     13.2 Additional acquisition.
  If at any time during the subsistence of this agreement any party (in this paragraph
  only called the "Acquiring Party") stakes directly or indirectly, any mining
  claim, licence, lease, grant, concession, permit, patent or other mineral property
  (in this paragraph called a "Mineral Property") located wholly or partly within
  the area of interest referred to in paragraph 13.1 the Acquiring Party shall
  immediately give notice to the other parties of that staking, the cost of it
  and all details in possession of that party with respect to the nature of the
  Property and the known mineralization. This paragraph shall not apply to a Mineral

Property which a party may acquire under an agreement with a
  third party with whom it is dealing at arm's length.

     13.3 Election to acquire.
  Each other party may, within thirty days of receipt of the Acquiring Party's
  notice, elect, by notice to the Acquiring Party, to require that the Mineral
  Property which was staked be included in and thereafter form part of the Property
  for all purposes of this agreement. If the election is made, all the other parties
  shall reimburse the Acquiring Party for that portion of the cost of staking
  which is equivalent to their respective Interests. If no other party makes the
  election within that period of thirty days, the Mineral Property which was staked
  shall not form part of the Property and the Acquiring Party shall be solely
  entitled to it.

     13.4 Abandonment of Property.
  Notwithstanding paragraph 6.4(e), the Operator shall be entitled, at any time,
  to surrender all or any part of the Property or to permit it to lapse, but only
  on first either obtaining the unanimous consent of the Management Committee,
  or giving sixty days' prior notice of its intention to do so to the other parties.
  In this latter event, the parties, other than the Operator, shall be entitled
  to receive from the Operator, on request prior to the date of the surrender
  or lapse, a conveyance of that portion of the Property intended for surrender
  or lapse, together with copies of any plan, assay maps, diamond drill records
  and factual engineering data in the Operator's possession and relevant thereto.
  Any part of the Property so acquired shall cease to be subject to this agreement
  and shall not be subject to paragraph 13.2. Any part of the Property which has
  not been so acquired by any of the parties shall remain subject to paragraph
  13.2

14. Information and data

     14.1 Access. At all times
  during the subsistence of this agreement the duly authorized representatives
  of each Participant shall, at their sole risk and expense and at reasonable
  intervals and times, have access to the Property and to all technical records
  and other factual engineering data and information relating to the Property
  which is in the possession of the Operator.

     14.2 Progress reports. During
  the exploration period while Programs are being carried out the Operator shall
  furnish the Participants with semi-annual progress reports and with a final
  report on conclusion of each Program. The final report shall show the Mining
  Operations performed and the results obtained and shall be accompanied by a
  statement of Costs and copies of pertinent plans, assay maps, diamond drill
  records and other factual engineering data. During the construction period the
  Operator shall provide monthly progress reports to the Participants, which reports
  shall include information on any changes or developments affecting the Mine
  that the Operator considers are material.

     14.3 Confidentiality. All
  information and data concerning or derived from the Mining Operations shall
  be kept confidential and, except to the extent required by law, regulation or
  policy of any Securities Commission or Stock Exchange, or in connection with
  the filing of an annual information form, a prospectus or statement of material
  facts by any party or any of its affiliates, shall not be disclosed to any person
  other than an affiliate without the prior consent of all the Participants, which
  consent shall not unreasonably be withheld.

     14.4 Amendments. The text
  of any news releases or other public statements which a party desires to make
  with respect to the Property shall be made available to the other parties at
  least 48 hours prior to publication and the other parties shall have the right
  to make suggestions for changes therein. If the other party is not available
  to preview material the first party will release only such information as required
  by regulations and Exchange requirements.

15. Liability of the Operator

     15.1 Indemnity. Subject
  to paragraph 15.2, each party shall indemnify and save the Operator harmless
  from and against any loss, liability, claim, demand, damage, expense, injury
  and death (including legal fees) resulting from any acts or omissions of the
  Operator of its officers, employees or agents.

     15.2 Negligence and wilful misconduct.
  Notwithstanding paragraph 15.1, the Operator shall not be indemnified nor held
  harmless by any of the parties for any loss, liability, claim, demand, damage,
  expense, injury or death (including legal fees) resulting from the negligence
  or wilful misconduct of the Operator or its officers, employees or agents.

     15.3 Good faith acts. An
  act or omission of the Operator or its officers, employees or agents done or
  omitted to be done:

	 	(a) 	 at the direction, or within the scope of the direction,
        of the Management Committee;

	 	 	 
	 	(b) 	 with the concurrence of the Management Committee; or

	 	 	 
	 	(c) 	 unilaterally and in good faith by the Operator to protect
        life or property;

shall be deemed not to be negligence or wilful misconduct.

     15.4 Proportion of responsibilities.
  The obligation of the other parties to indemnify and save the Operator harmless
  pursuant to paragraph 15.1 shall be in proportion to its Interest as at the
  date that the loss, liability, claim, demand, damage, expense, injury or death
  occurred or arose.

     15.5 Limitation of liability.
  The Operator shall not be liable to any other party nor shall any party be liable
  to the Operator in contract, tort or otherwise for special or consequential
  damages including loss of profits or revenues.

16. Insurance

     16.1 Insurance. Commencing
  on the Participation Date, the Management Committee shall cause the Operator
  to place and maintain with a reputable insurer or insurers such insurance, if
  any, as the Management Committee in its discretion deems advisable in order
  to protect the parties together with any other insurance as any Participant
  may by notice reasonably 

request. The Operator shall, on the written request of any Participant,
  provide it with evidence of that insurance. This paragraph shall not preclude
  any party from placing, for its own account, insurance for greater or other
  coverage than that placed by the Operator.

17. Relationship of parties

     17.1 Liability several.
  The rights, duties, obligations and liabilities of the parties shall be several
  and not joint nor joint and several, it being the express purpose and intention
  of the parties that their respective Interests shall be held as tenants in common.

     17.2 No partnership. Nothing
  contained in this agreement shall be construed as creating a partnership of
  any kind or as imposing on any party any partnership duty, obligation or liability
  to any other party.

     17.3 Use of names. No party
  shall, except when required by this agreement or by any law, by-law, ordinance,
  rule, order or regulation, use, suffer or permit to be used, directly or indirectly,
  the name of any other party for any purpose related to the Property.

18. Partition

     18.1 Partition. Each of
  the parties waives, during the term of this agreement, any right to partition
  of the Property or the Assets or any part of it and no party shall seek or be
  entitled to partition of the Property or the Assets whether by way of physical
  partition, judicial sale or otherwise during the term of this agreement.

19. Taxation

     19.1 Allocation of Costs.
  All Costs incurred under this agreement shall be for the account of the party
  or parties making or incurring them, if more than one then in proportion to
  their respective Interests, and each party on whose behalf any Costs have been
  incurred shall be entitled to claim all tax benefits, write-offs and deductions
  with respect to them.

20. Force majeure

     20.1 Force majeure. Notwithstanding
  anything contained in this agreement to the contrary, if any Participant is
  prevented from or delayed in performing any obligation under this agreement
  and failure is occasioned by any cause beyond its reasonable control, excluding
  only lack of finances then, subject to paragraph 20.2, the time for the observance
  of the condition or performance of the obligation in question shall be extended
  for a period equivalent to the total period the cause of the prevention or delay
  persists or remains in effect regardless of the length of the total period.

     20.2 Notice. Any party claiming
  suspension of its obligations shall promptly notify the other parties to that
  effect and shall take all reasonable steps to remove or remedy the cause and
  effect of the force majeure described in the notice in so far as it is reasonably
  able so to do and as soon as possible; provided, that the terms of settlement
  of any labour disturbance or dispute, 

strike or lock-out shall be wholly in the discretion of the party
  claiming suspension of its obligations by reason thereof; and that party shall
  not be required to accede to the demands of its opponents in any labour disturbance
  or dispute, strike or lock-out solely to remedy or remove the force majeure
  thereby constituted.

     20.3 Extension. The extension
  of time for the observance of conditions or performance of obligations as a
  result of force majeure shall not relieve the Operator from its obligations
  to keep the Property in good standing.

21. Restrictions on alienation

     21.1 Restriction. During
  the subsistence of this agreement, none of the parties shall pledge, sell, assign,
  or in any other manner dispose or attempt to dispose of all or any portion of
  its Interest except as provided in paragraphs 9 or 11 and as provided in this
  paragraph. A party wishing to sell or dispose of all or a portion of its Interest
  (in this paragraph called the "Disposing Party") may:

	 	(a) 	 sell that Interest in the manner set out in paragraph
        21.2 to the Participants who elect to purchase it if more than one then
        in proportion to their respective Interests, or

	 	 	 
	 	(b) 	 sell that Interest to an affiliate of the Disposing
        Party; provided, however, that the Disposing Party shall provide a guarantee
        to the other parties, in form reasonably satisfactory to counsel for the
        Operator, guaranteeing the obligations of the affiliate under this agreement
        and provided, further, that the sale to the affiliate shall be subject
        to the affiliate entering into an agreement with the remaining Participants
        whereby it agrees to be bound by the provisions of this agreement.

     21.2 Offer to sell. A Disposing
  Party will, prior to disposing of the Interest other than to an affiliate, first
  offer to sell the Interest to the Participants for a cash consideration and
  on other terms and conditions as the Disposing Party deems fit. If, within thirty
  days of the Disposing Party's offer to sell, the Participants elect not to purchase
  the Interest on those terms and conditions the Disposing Party will be free
  to dispose of that Interest to a third party at any time within six months of
  the Participants' election but only for a cash consideration, or for some consideration
  other than cash, provided that the fair cash equivalent of any non-cash consideration
  be equal to or greater than the cash consideration stated in the Disposing Party's
  offer to sell to the Participants, and on no more favourable terms and conditions
  as the offer to sell to the Participants; provided, however, that the sale of
  the Interest to the third party shall be subject to the third party entering
  into an agreement with the Participants whereby it agrees to be bound by the
  provisions of this agreement. Any Interest not disposed of by the Disposing
  Party as mentioned will remain subject to the provisions of this paragraph.

     21.3 Acquisition of Interest.
  On the Participants or a third party acquiring all or a portion of the Disposing
  Party's Interest, the Participants or the third party will be deemed to have
  acquired a corresponding portion of the Disposing Party's Costs. The third party
  will be entitled to all the rights and benefits accruing, and will be subject
  to the same duties and 

obligations attributable to them, to the Interest which it has
  purchased from the Disposing Party including the right to participate in any
  further Programs and Costs and the right to having its Interest increased or
  reduced in the same manner as the Disposing Party in the event the third party
  does not participate in the Programs and Costs.

22. General

     22.1 Notice. All payments
  and communications which may be or are required to be given by either party
  to the other shall (in the absence of any specific provision to the contrary)
  be in writing and delivered, sent by facsimile or sent by prepaid registered
  mail to the parties, at their following respective addresses and telecopier
  numbers:

	 	To Yale: 	YALE RESOURCES LTD. 
	 	  	Suite 400 – 409 Granville Street
    
	 	  	Vancouver, BC 
	 	  	V6C 1K4 	  
	 	  	Attention: 	Ian Foreman, P.Geo., President 
	 	  	Facsimile: 	(604) 678-2532 
	 	  	  	  
	 	  	AND A COPY TO: 
	 	  	  	  
	 	 	Tupper Jonsson & Yeadon 
	 	  	1710 – 1177 West Hastings Street
    
	 	  	Vancouver, British Columbia 
	 	  	V6E 2L3 	  
	 	  	Attention: 	Lee Tupper 
	 	  	Facsimile: 	(604) 681-0139 
	 	  	  	  
	 	If to Candev: 	CANDEV RESOURCE EXPLORATION INC. 
	 	  	2200 - 1177 West Hastings Street 
	 	  	Vancouver, British Columbia 
	 	  	V6E 2K3 	  
	 	  	Attention: 	Mark A. McLeary, President 
	 	  	Facsimile: 	(604) 647-0631 
	 	  	  	  
	 	  	AND A COPY TO: 
	 	  	  	  
	 	  	Clark Wilson LLP 
	 	  	800 - 885 West Georgia Street 
	 	  	Vancouver, British Columbia 
	 	  	V6C 3H1 	  
	 	  	Attention: 	Conrad Nest 
	 	  	Facsimile: 	(604) 687-6314 

and if any payment or communication is sent by prepaid registered
  mail, it shall, subject to the following sentence, be conclusively deemed to
  have been received on the third business day 

following the mailing of it and, if delivered or telecopied,
  it shall be conclusively deemed to have been received at the time of delivery
  or transmission. Notwithstanding the foregoing provisions with respect to mailing,
  in the event that it may be reasonably anticipated that, due to any strike,
  lock-out or similar event involving an interruption in postal service, any payment
  or communication will not be received by the addressee by no later than the
  third business day following the mailing of it, then the mailing of any payment
  or communication as mentioned shall not be an effective means of sending it
  but rather any payment or communication must then be sent by an alternative
  means of transportation which it may reasonably be anticipated will cause the
  payment or communication to be received reasonably expeditiously by the addressee.
  Either party may from time to time change its address by notice to the other
  in accordance with this paragraph.

     22.2 Waiver. No waiver of
  any breach of this agreement shall be binding unless evidenced in writing executed
  by the party against whom charged. Any waiver shall extend only to the particular
  breach so waived and shall not limit any rights with respect to any future breach.

     22.3 Entire agreement. With
  respect to the subject-matter of this agreement, this agreement:

	 	(a) 	 sets forth the entire agreement between the parties
        and any persons who have in the past or who are now representing either
        of the parties;

	 	 	 
	 	(b) 	 supersedes all prior understandings and communications
        between the parties or any of them, oral or written, and

	 	 	 
	 	(c) 	 constitutes the entire agreement between the parties.

Each party acknowledges that this agreement is entered into after
  full investigation and that no party is relying on any statement or representation
  made by any other which is not embodied in this agreement. Each party acknowledges
  that it shall have no right to rely on any amendment, promise, modification,
  statement or representation made or occurring subsequent to the execution of
  this agreement unless it is in writing and executed by each of the parties.

     22.4 Time. Time is of the
  essence of this agreement and of every party and no extension or variation of
  this agreement shall operate as a waiver of this provision.

     22.5 Successors and assigns.
  This agreement shall enure to the benefit of and be binding on the parties and
  their respective heirs, executors, administrators, successors and permitted
  assigns.

     22.6 Governing law. This
  agreement and the rights and obligations and relations of the parties shall
  be governed by and construed in accordance with the laws of the Province of
  British Columbia and the federal laws of Canada applicable therein (but
  without giving effect to any conflict of law rules). The parties agree that
  the courts of British Columbia shall have the jurisdiction to entertain
  any action or other legal proceedings based on any provisions of this agreement.
  Each party attorns to the jurisdiction of the courts of the Province of British
  Columbia.

     IN WITNESS WHEREOF this
  Agreement has been executed by the parties hereto as of the day and year first
  above written.

	EXECUTED BY 	) 	 
	Yale Resources Ltd. 	) 	 
	in the presence of: 	) 	 
	  	) 	 
	  	) 	 
	Authorized Signatory 	) 	 
	  	) 	 
	Ian Foreman, P.Geo., President 	) 	 
	  	  	 
	EXECUTED BY 	) 	 
	Candev Resource Exploration Inc. 	) 	 
	in the presence of: 	) 	 
	  	) 	 
	  	) 	 
	Authorized Signatory 	) 	 
	  	) 	 
	Mark McLeary, President 	) 	 

  	Appendix 1 
	  
	To the Joint Venture Agreement between 
	Candev Resources Ltd. ("Candev") and 
	Yale Ventures Corp. ("Yale") 
	  
	  
	NET SMELTER INTEREST 

     This being Appendix 1 to that Joint
  Venture Agreement between Yale and Candev dated for reference
  (-)

	1.1 	Income and Expenses 

     Net Profits shall be calculated
  by deducting from the Gross Revenue (as defined below) realized (or deemed to
  be realized), such costs and expenses attributable to Exploration, Development,
  Mining, the marketing of Products and other Operations as would be deductible
  under generally accepted accounting principles and practices consistently applied,
  including without limitation:

	 	(a) 	 All costs and expenses of replacing, expanding, modifying,
        altering or changing from time to time the Mining facilities. Costs and
        expenses of improvements (such as haulage ways or mill facilities) that
        are also used in connection with workings other than the Properties shall
        be charged to the Properties only in the proportion that their use in
        connection with the Properties bears to their total use;

	 	 	 
	 	(b) 	 Ad valorem real property and unsecured personal property
        taxes, and all taxes, other than income taxes, applicable to Mining of
        the Properties, including without limitation all mining taxes, sales taxes,
        severance taxes, license fees and governmental levies of a similar nature;

	 	 	 
	 	(c) 	 Allowance for overhead in accordance with Section 6;

	 	 	 
	 	(d) 	 All expenses incurred relative to the sale of Products,
        including an allowance for commissions at rates, which are normal and
        customary in the industry;

	 	 	 
	 	(e) 	 All amounts payable to the remaining Participant during
        Mining pursuant to any applicable operating or similar agreement in force
        with respect thereto;

	 	 	 
	 	(f) 	 The actual cost of investment under the Agreement but
        prior to beginning of Mining, which shall include all expenditures for
        Exploration and Development of the Properties incurred by the non-withdrawing
        Participant both prior and subsequent to the withdrawing Participant acquiring
        a Net Profits interest;

	 	 	 
	 	(g) 	 Interest on monies borrowed or advanced for costs and
        expenses, but in no event in excess of the maximum permitted by law;

	 	 	 
	 	(h) 	 An allowance for reasonable working capital and inventory;

	 	(i) 	 Costs of funding the Environmental Compliance Fund as
        provided in Section 6;

	 	 	 
	 	(j) 	 Actual costs of Operations; and

	 	 	 
	 	(k) 	 Rental, royalty, production, and purchase payments.

     For purposes hereof, the term “Gross
  Revenue” shall mean the sum of (i) gross receipts from sale of Products,
  less any charges for sampling, assaying, or penalties; (ii) gross receipts from
  the sale or other disposition of Assets; (iii) insurance proceeds; (iv) compensation
  for expropriation of Assets; and (v) judgment proceeds. Gross receipts for sale
  of Products shall be determined by multiplying spot prices for Products as quoted
  by the New York Spot Market on the date of a sale of Products.

     It is intended that the remaining
  Participant shall recoup from Gross Revenue all of its on-going contributions
  for Exploration, Development, Mining, Expansion and Modification and marketing
  Products before any Net Profits are distributed to any person holding a Net
  Profits interest. No deduction shall be made for income taxes, depreciation,
  amortization or depletion. If in any year after the beginning of Mining of the
  Properties an operating loss relative thereto is incurred, the amount thereof
  shall be considered as and be included with outstanding costs and expenses and
  carried forward in determining Net Profits for subsequent periods. If Products
  are processed by the remaining Participant, or are sold to an Affiliate of the
  remaining Participant, then, for purposes of calculating Net Profits, such Products
  shall be deemed conclusively to have been sold at a price equal to fair market
  value to an arm’s length purchaser FOB the concentrator for the Properties,
  and Net Profits relative thereto shall be calculated without reference to any
  profits or losses attributable to smelting or refining.

	1.2 	Payment of Net Profits 

     Payments of Net Profits shall commence
  in the calendar quarter following the calendar quarter in which Net Profits
  are first realized, and shall be made forty-five (45) days following the end
  of each calendar quarter during which Net Profits are realized, and shall be
  subject to adjustment, if required, at the end of each calendar year. The recipient
  of such Net Profits payments shall have the right to audit such payments following
  receipt of each payment by giving notice to the remaining Participant and by
  conducting such audit in accordance with Section Error! Reference source
  not found. of the Agreement. Costs of such an audit shall be borne by the
  holder of the Net Profits interest described herein.

	1.4 	Definitions 

All words and terms used herein have the same meaning as in the
  Agreement.

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