Document:

HS3 Technologies Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

TEAMING AGREEMENT and EMPLOYMENT AGREEMENT

This combination TEAMING AGREEMENT and EMPLOYMENT AGREEMENT
(Agreement) is made as of April 27, 2011 between Chester Gilliam and Mr.
Gilliam’s company, Wizard- Works (hereinafter referred to as Subcontractor) and
HS3 Technologies Inc. (hereinafter referred to as HS3), with offices at 1800
Boulder Street suites 600, Denver Colorado, 80211. HS3 and Subcontractor are
sometimes referred to hereinafter individually as “Party” and collectively as
“Parties.”

WHEREAS, The Parties have carefully assessed their mutual
capabilities and interests and have concluded it is desirable to enter into a
team arrangement for providing the products and services (Program) contemplated
by this agreement; and

WHEREAS, the Parties have determined that they have the
necessary expertise required for the Program and that this agreement will enable
them to complement their unique capabilities to perform the Program in the most
mutually efficient and cost effective manner; and

WHEREAS, it is the purpose of this Agreement to set forth the
understanding under which the parties will work together on this program and
additionally receive compensation;

NOW THEREFORE, in consideration of the mutual covenants
contained herein, the Parties hereto agree as fallows:

ARTICLE 1. Compensation:

	1.1 	
      It is intended that HS3 compensate Chester A. Gilliam for
      his participation in the Program a
      bonus of $360,000 dollars and concurrently 500,000 shares
      of HS3 Technologies Inc. stock.

		
		 	 
		a. 	
      Subcontractor will receive the 500,000 shares at
      execution of this document.

	 	 	 
		b. 	
      The Program bonus of $360,000 will be divided into three
      annual installments equal to the lesser of $120,000 per annum or 50% of
      the revenue received from WizardWorks accounts during that period. The
      Program bonus will be paid at the end of each calendar quarter. If during
      any quart the total revenue received from WizardWorks accounts is less
      than $60,000 the installment for that quarter will be calculated to
      minimally equal 50% of the total revenues received from
  WizardWorks.

	 	 	 
		c. 	
      If over the three year term the amount paid to
      WizardWorks is less than $360,000 this agreement will continue for one
      year increments until paid.

	 	 	 
		d. 	
      Acceleration of payments: HS3 has the sole right to
      accelerate payments to reach the agreed $360,000 at any time during the
      term.

	 	 	 
	1.2 	
      For consideration of the above 1.1, HS3 will receive,
      record, and dispense as its own all revenue from WizardWorks as of January
      1, 2011.

	 	 	 
		a.	
       HS3 may invoice customers under the WizardWorks or
      HS3 name.

	 	 	 
		b. 	
      At the completion of the bonus payments HS3 has the right
      to assume the WizardWorks name and logo for $1.00.

	 	 	 
	1.3 	
      HS3 will pay subcontractor $400/mth rent for the uses of
      the shop. Upon thirty day written notice HS3 may vacate premises, remove
      all equipment and end rental payment.

	1.4 	
      HS3 will transfer title of the WizardWorks truck to Mr.
      Gilliam.

ARTICLE 2. Termination:

	2.1 	TERMINATION: either party may terminate this
      agreement with thirty day written notice delivered to their respective
      addresses. If termination is executed by either party, HS3 retains the
      right to pay the reminder of the $360,000 + $1.00 within ninety days of
      termination notice and assume the WizardWorks name and logo per paragraph
      1.2 b 
	 	  
	2.2 	If Subcontractor terminates this agreement HS3
      will have no further financial liability to the Subcontractor beyond the
      date of written acceptance of termination, and HS3 has ninety days at its
      sole discretion to enact paragraph 1.1 d. 
	 	  
	2.3 	If HS3 terminates this agreement without cause
      or full payment Mr. Gilliam will retain WizardWorks and its customers.
  

ARTICLE 3. Employment

	3.1 	
      HS3 will compensate Mr. Gilliam an annual salary of
      $110,000 dollars paid monthly.

	 	 	 
	3.2 	
      The initial term is for three years, and may be extended
      by mutual agreement.

	 	 	 
	3.3 	
      Responsibilities:

	 	 	 
		a. 	
      The position is national manager in charge of all remote
      installations, HS3 & WizardWorks. Duties include; scheduling
      installations and travel, manage install team staffing and training.
      Create and maintain group’s budget. Maintain tool and equipment inventory
      required for installations.

	 	 	 
		b. 	
      Communication Responsibility; communicate with customers
      to acquire installation authorization and insure that all reporting
      documents are transmitted to HS3’s billing department upon project
      completion.

	 	 	 
		c. 	
      Manage and maintain staff that reports to him; install
      team leaders, and in-house travel assistant.

	 	 	 
		d. 	
      Assist in the preparation and/or verification of
      invoices.

	 	 	 
		e. 	
      Travel to install location and assist in remote
      installations.

	 	 	 
		f. 	
      Participate in Board meetings when requested.

	 	 	 
		g. 	
      Do what ever is required to make sure we
  succeed.

	 	 	 
		h. 	
      Reports directly to HS3 CEO.

	 	 	 
	3.4 	
      If HS3 ends business or terminates the employment
      agreement without cause the company agrees to pay 50% of the balance due
      on the initial term.

	Date:			Date:	

 

	/s/
      Chester A. Gilliam 		/s/ Mark Lana 
	Chester A Gilliam 	 	Mark Lana 
	 	WizardWorks 	 	 	HS3 Technologies
Inc.Manas Petroleum Corporation: Exhibit 4.3 - Filed by newsfilecorp.com

MANAS PETROLEUM CORPORATION

as the Corporation

and

EQUITY FINANCIAL TRUST COMPANY

as the Warrant Agent

	 
	WARRANT INDENTURE 
	Providing for the Issue of Warrants 
	  
	Dated as of <>, 2011 
	 

TABLE OF CONTENTS

Page No.

	  ARTICLE 1  
	  INTERPRETATION  
	Section
      1.1 	Definitions.
      	2
      
	Section
      1.2 	Gender
      and Number. 	5
      
	Section
      1.3 	Headings,
      Etc. 	5
      
	Section
      1.4 	Day
      not a Business Day. 	5
      
	Section
      1.5 	Time
      of the Essence. 	5
      
	Section
      1.6 	Monetary
      References. 	5
      
	Section
      1.7 	Applicable
      Legislation. 	6
      
	 	  	  
	ARTICLE 2 
ISSUE
      OF WARRANTS 
	Section
      2.1 	Creation
      and Issue of Warrants. 	6
      
	Section
      2.2 	Terms
      of Warrants. 	6
      
	Section
      2.3 	Warrantholder
      not a Shareholder. 	7
      
	Section
      2.4 	Warrants
      to Rank Pari Passu. 	7
      
	Section
      2.5 	Form
      of Warrants, Certificated Warrants. 	7
      
	Section
      2.6 	Book
      Entry Only Warrants. 	7
      
	Section
      2.7 	Warrant
      Certificate. 	9
      
	Section
      2.8 	Legends.
      	10
      
	Section
      2.9 	Register
      of Warrants 	12
      
	Section
      2.10 	Issue
      in Substitution for Warrant Certificates Lost, etc. 	12
      
	Section
      2.11 	Exchange
      of Warrant Certificates. 	13
      
	Section
      2.12 	Transfer
      and Ownership of Warrants. 	13
      
	Section
      2.13 	Cancellation
      of Surrendered Warrants. 	14
      
	 	  	  
	ARTICLE 3 
EXERCISE OF
      WARRANTS 
	Section
      3.1 	Right
      of Exercise. 	14
      
	Section
      3.2 	Warrant
      Exercise. 	15
      
	Section
      3.3 	Transfer
      Fees and Taxes. 	17
      
	Section
      3.4 	Warrant
      Agency. 	17
      
	Section
      3.5 	Effect
      of Exercise of Warrant Certificates. 	18
      
	Section
      3.6 	Partial
      Exercise of Warrants; Fractions. 	18
      
	Section
      3.7 	Expiration
      of Warrants. 	19
      
	Section
      3.8 	Accounting
      and Recording. 	19
      
	Section
      3.9 	Securities
      Restrictions. 	19
      

TABLE OF CONTENTS 
(continued)

Page No.

	  ARTICLE 4  
	  ADJUSTMENT OF NUMBER OF COMMON
      SHARES  
	  AND EXERCISE PRICE 
  
	  	  	  	  
	Section
      4.1 	 Adjustment
      of Number of Common Shares and Exercise Price. 	19
      
	Section
      4.2 	 Entitlement
      to Common Shares on Exercise of Warrant. 	23
      
	Section
      4.3 	 No
      Adjustment for Certain Transactions. 	23
      
	Section
      4.4 	 Determination
      by Auditors. 	24
      
	Section
      4.5 	 Proceedings
      Prior to any Action Requiring Adjustment. 	24
      
	Section
      4.6 	 Certificate
      of Adjustment. 	24
      
	Section
      4.7 	 Notice
      of Special Matters. 	24
      
	Section
      4.8 	 No
      Action after Notice. 	25
      
	Section
      4.9 	 Other
      Action. 	25
      
	Section
      4.10 	 Protection
      of Warrant Agent. 	25
      
	Section
      4.11 	 Other
      Adjustments. 	25
      
	Section
      4.12 	 Participation
      by Warrantholder. 	26
      
	 	  	  
	ARTICLE 5 
RIGHTS OF THE
      CORPORATION AND COVENANTS 
	Section
      5.1 	 Optional
      Purchases by the Corporation. 	26
      
	Section
      5.2 	 General
      Covenants. 	26
      
	Section
      5.3 	 Warrant
      Agent’s Remuneration and Expenses. 	27
      
	Section
      5.4 	 Performance
      of Covenants by Warrant Agent. 	27
      
	Section
      5.5 	 Enforceability
      of Warrants. 	27
      
	 	  	  
	ARTICLE 6
      
ENFORCEMENT 
	 	  	  
	Section
      6.1 	 Suits
      by Registered Warrantholders. 	28
      
	Section
      6.2 	 Suits
      by the Corporation. 	28
      
	Section
      6.3 	 Immunity
      of Shareholders, etc. 	28
      
	Section
      6.4 	 Waiver
      of Default. 	28
      
	 	  	  
	ARTICLE 7 
MEETINGS OF REGISTERED
      WARRANTHOLDERS 
	Section
      7.1 	 Right
      to Convene Meetings. 	29
      
	Section
      7.2 	 Notice.
      	29
      
	Section
      7.3 	 Chairman.
      	30
      
	Section
      7.4 	 Quorum.
      	30
      
	Section
      7.5 	 Power
      to Adjourn. 	30
      
	Section
      7.6 	 Show
      of Hands. 	30
      
	Section
      7.7 	 Poll
      and Voting. 	30
      

- ii -

TABLE OF CONTENTS
 (continued)

Page No.

	Section
      7.8 	Regulations.
      	31
      
	Section
      7.9 	Corporation
      and Warrant Agent May be Represented. 	32
      
	Section
      7.10 	Powers
      Exercisable by Extraordinary Resolution. 	32
      
	Section
      7.11 	Meaning
      of Extraordinary Resolution. 	33
      
	Section
      7.12 	Powers
      Cumulative. 	34
      
	Section
      7.13 	Minutes.
      	34
      
	Section
      7.14 	Instruments
      in Writing. 	34
      
	Section
      7.15 	Binding
      Effect of Resolutions. 	34
      
	Section
      7.16 	Holdings
      by Corporation Disregarded. 	35
      
	 	  	  
	ARTICLE 8
      
SUPPLEMENTAL INDENTURES 
	Section
      8.1 	Provision
      for Supplemental Indentures for Certain Purposes. 	35
      
	Section
      8.2 	Successor
      Entities. 	36
      
	 	  	  
	ARTICLE 9
      
CONCERNING THE WARRANT AGENT 
	Section
      9.1 	Indenture
      Legislation. 	36
      
	Section
      9.2 	Rights
      and Duties of Warrant Agent. 	36
      
	Section
      9.3 	Evidence,
      Experts and Advisers. 	37
      
	Section
      9.4 	Documents,
      Monies, etc. Held by Warrant Agent. 	38
      
	Section
      9.5 	Actions
      by Warrant Agent to Protect Interest. 	38
      
	Section
      9.6 	Warrant
      Agent Not Required to Give Security. 	38
      
	Section
      9.7 	Protection
      of Warrant Agent. 	38
      
	Section
      9.8 	Replacement
      of Warrant Agent; Successor by Merger. 	40
      
	Section
      9.9 	Conflict
      of Interest. 	41
      
	Section
      9.10 	Acceptance
      of Agency 	41
      
	Section
      9.11 	Warrant
      Agent Not to be Appointed Receiver. 	41
      
	Section
      9.12 	Warrant
      Agent Not Required to Give Notice of Default. 	41
      
	Section
      9.13 	Anti-Money
      Laundering. 	42
      
	Section
      9.14 	Compliance
      with Privacy Code. 	42
      
	 	  	  
	ARTICLE 10
      
GENERAL 
	Section
      10.1 	Notice
      to the Corporation and the Warrant Agent. 	43
      
	Section
      10.2 	Notice
      to Registered Warrantholders. 	44
      
	Section
      10.3 	Ownership
      of Warrants. 	44
      
	Section
      10.4 	Counterparts.
      	44
      
	Section
      10.5 	Satisfaction
      and Discharge of Indenture. 	45
      

- iii -

TABLE OF CONTENTS
 (continued)

Page No.

	Section
      10.6 	Provisions
      of Indenture and Warrants for the Sole Benefit of Parties and Registered
      Warrantholders. 	45
      
	Section
      10.7 	Common
      Shares or Warrants Owned by the Corporation or its Subsidiaries -
      Certificate to be Provided. 	45
      
	Section
      10.8 	Severability
      	46
      
	Section
      10.9 	Force
      Majeure 	46
      
	Section
      10.10 	Assignment,
      Successors and Assigns 	46
      
	Section
      10.11 	Rights
      of Rescission and Withdrawal for Holders 	46
      

SCHEDULES

	SCHEDULE “A” 
	FORM OF WARRANT 
	SCHEDULE “B” 
	EXERCISE FORM 

- iv -

WARRANT INDENTURE

          THIS
WARRANT INDENTURE is dated as of <>, 2011.

BETWEEN: 

          MANAS
PETROLEUM CORPORATION, a corporation incorporated under the laws of the
State of Nevada (the “Corporation”),

         
- and -

          EQUITY
FINANCIAL TRUST COMPANY, a trust company existing under the laws of Canada
(the “Warrant Agent”)

          WHEREAS
the Corporation is proposing to issue up to 60,000,000 Warrants pursuant to
this Indenture;

          AND
WHEREAS pursuant to this Indenture, each whole Warrant shall, subject to
adjustment, entitle the holder thereof to acquire one (1) Common Share upon
payment of the Exercise Price upon the terms and conditions herein set
forth;

          AND
WHEREAS the Corporation is authorized under the laws applicable to it to
create and issue the Warrants as hereinafter provided;

          AND
WHEREAS all acts and deeds necessary have been or will be done and performed
to make the Warrants, when created and issued as provided in this Indenture,
legal, valid and binding upon the Corporation with the benefits and subject to
the terms and conditions of this Indenture;

          AND
WHEREAS the foregoing recitals are made as representations and statements of
fact by the Corporation and not by the Warrant Agent;

          AND
WHEREAS the Warrant Agent has agreed to enter into this Indenture and to
hold all rights, interests and benefits contained herein for and on behalf of
those Persons who from time to time become holders of Warrants issued pursuant
to this Indenture;

          NOW
THEREFORE, in consideration of the premises and mutual covenants hereinafter
contained and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Corporation hereby appoints the Warrant
Agent as warrant agent to hold the rights, interests and benefits contained
herein for and on behalf of those persons who from time to time become the
holders of Warrants issued pursuant to this Indenture and the parties hereto
agree as follows:

- 2 -

ARTICLE 1
INTERPRETATION

Section
1.1          
Definitions.

     In this Indenture, including the
recitals and schedules hereto, and in all indentures supplemental hereto:

“Adjustment Period” means the period from the Effective
Date up to and including the Expiry Time;

“Applicable Legislation” means any statute of Canada or
a province thereof, and the regulations under any such named or other statute,
relating to warrant indentures or to the rights, duties and obligations of
warrant agents and corporations under warrant indentures, to the extent that
such provisions are at the time in force and applicable to this Indenture;

“Auditors” means BDO Visura International or such other
firm of chartered accountants duly appointed as auditors of the Corporation,
from time to time;

“Authenticated” means (a) with respect to the issuance
of a Warrant Certificate, one which has been duly signed by the Corporation and
authenticated by manual signature of an authorized officer of the Warrant Agent,
(b) with respect to the issuance of an Uncertificated Warrant, one in respect of
which the Warrant Agent has completed all internal procedures such that the
particulars of such Uncertificated Warrant as required by Section 2.7 are
entered in the register of holders of Warrants, “Authenticate”,
“Authenticating” and “Authentication” have the appropriate
correlative meanings;

“Book Entry Only Participants” means institutions that
participate directly or indirectly in the Depository’s book entry registration
system for the Warrants;

“Book Entry Only Warrants” means Warrants that are to be
held only by or on behalf of the Depository;

“Business Day” means any day other than Saturday, Sunday
or a statutory or civic holiday, or any other day on which the banks are open
for business in the Province of Ontario and the State of Florida;

“CDS Global Warrants” means Warrants representing all or
a portion of the aggregate number of Warrants issued in the name of the
Depository represented by an Uncertificated Warrant, or if requested by the
Depository or the Corporation, by a Warrant Certificate;

“Certificated Warrant” means a Warrant evidenced by a
writing or writings substantially in the form of Schedule “A”, attached
hereto;

“Common Shares” means, subject to Article 4, fully paid
and non-assessable shares of common stock of the Corporation as constituted at
the close of business on the Effective Date; provided that in the event of any
adjustment pursuant to the provisions of Article 4 hereof, “Common Shares” shall thereafter mean the shares
or other securities or property resulting from such adjustment;

- 3 -

“Counsel” means a barrister and/or solicitor or a firm
of barristers and/or solicitors retained by the Warrant Agent or retained by the
Corporation, which may or may not be counsel for the Corporation and acceptable
to the Warrant Agent, acting reasonably;

“Current Market Price” of the Common Shares at any date
means the price per share equal to the volume weighted average trading price at
which the Common Shares have traded on the TSX Venture Exchange or, if the
Common Shares are not then listed on the TSX Venture Exchange, on such other
Canadian stock exchange as may be selected by the Directors for such purpose or,
if the Common Shares are not then listed on any Canadian stock exchange, in the
over-the-counter market, during the period of any 20 consecutive Trading Days
ending not more than 5 Business Days before such date; provided that the
weighted average trading price shall be determined by dividing the aggregate
sale price of all Common Shares sold on the said exchange or market, as the case
may be, during the said 20 consecutive Trading Days by the total number of
Common Shares so sold; and provided further that if the Common Shares are not
then listed on any Canadian stock exchange or traded in the over-the-counter
market, then the Current Market Price shall be determined by a firm of
independent chartered accountants selected by the Directors;

“Depository” means CDS Clearing and Depository Services
Inc. or such other Person as is designated in writing by the Corporation to act
as depository in respect of the Warrants;

“Dividends” means any dividends paid by the
Corporation;

“Effective Date” means the date of this Indenture;

“Exchange Rate” means the number of Common Shares
subject to the right of purchase under each Warrant and as at the date hereof is
equal to one Common Share for each Warrant held;

“Exercise Date” means, in relation to Warrant, the
Business Day on which such Warrant is validly exercised or deemed to be validly
exercised in accordance with Article 3 hereof;

“Exercise Notice” has the meaning set forth in Section
3.2(1);

“Exercise Price” at any time means the price at which a
whole Common Share may be purchased by the exercise of a whole Warrant, which is
initially U.S.$0.70 per Common Share, payable in immediately available United
States funds, subject to adjustment in accordance with the provisions of Section
4.1;

“Expiry Date” means <>, 2014;

“Expiry Time” means 4:30 p.m. (Toronto time) on the
Expiry Date;

“Extraordinary Resolution” has the meaning set forth in
7.11;

- 4 -

“Issue Date” means <>, 2011;

“Person” means an individual, body corporate,
partnership, trust, agent, executor, administrator, legal representative or any
unincorporated organization;

“register” means the one set of records and accounts
maintained by the Warrant Agent pursuant to Section 2.9:

“Registered Warrantholders” means the persons who are
registered owners of Warrants as such names appear on the register, and for
greater certainty, shall include the Depository as the holder of Uncertificated
Warrants appearing on the register of the Warrant Agent;

“Regulation S” means Regulation S under the U.S.
Securities Act;

“Shareholders” means holders of Common Shares;

“this Warrant Indenture”, “this Indenture”,
“this Agreement”, “hereto” “herein”, “hereby”,
“hereof” and similar expressions mean and refer to this indenture and any
indenture, deed or instrument supplemental hereto; and the expressions
“Article”, “Section”, “subsection” and “paragraph”
followed by a number, letter or both mean and refer to the specified article,
section, subsection or paragraph of this indenture;

“Trading Day” means, with respect to a stock exchange, a
day on which such exchange is open for the transaction of business and with
respect to an over-the-counter market means a day on which shares may be traded
through the facilities of such over-the-counter market;

“Uncertificated Warrant” means any Warrant which is not
a Certificated Warrant; 

“United States” means the United States of America, its
commonwealths, territories and possessions, any state of the United States, and
the District of Columbia;

“U.S. Person” has the meaning set forth in Rule 902(k)
of Regulation S;

“U.S. Securities Act” means the United States
Securities Act of 1933, as amended;

“U.S. Warrantholder” means any Warrantholder that (i) is
a U.S. Person or (ii) acquired warrants while in the United States or (iii)
acquired warrants for the account or benefit of any U.S. Person or any other
person in the United States or (iv) is in the United States at the relevant time
of any action specified in this Indenture;

“Warrants” means the Common Share purchase warrants
created by and authorized by and issuable under this Indenture, to be issued and
countersigned hereunder in certificated form and/or held through the book entry
registration system on a no certificate issued basis, entitling the holder or
holders thereof to purchase up to 60,000,000 Common Shares (subject to
adjustment as herein provided) at the Exercise Price prior to the Expiry Time
and, where the context so requires, also means the warrants issued and
Authenticated hereunder, whether by way of Warrant Certificate or Uncertificated
Warrant;

- 5 -

“Warrant Agency” means the principal office of the
Warrant Agent in the City of Toronto or such other place as may be designated in
accordance with Section 3.4;

“Warrant Agent” means Equity Financial Trust Company, in
its capacity as warrant agent of the Warrants, or its successors from time to
time;

“Warrant Certificate” means a certificate, substantially
in the form set forth in Schedule “A” hereto, representing those Certificated
Warrants issued and countersigned hereunder;

“Warrantholders”, or “holders” means the Persons
entered in the register maintained by the Warrant Agent pursuant to Section
2.9;

“Warrantholders’ Request” means an instrument signed in
one or more counterparts by Registered Warrantholders holding in the aggregate
not less than 50% of the aggregate number of all Warrants then unexercised and
outstanding, requesting the Warrant Agent to take some action or proceeding
specified therein; and

“written order of the Corporation”, “written request
of the Corporation” and “certificate of the Corporation” mean,
respectively, a written order, request, consent and certificate signed in the
name of the Corporation by any two duly authorized signatories of the
Corporation and may consist of one or more instruments so executed.

Section
1.2           Gender and
Number.

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

Section
1.3           Headings,
Etc.

     The division of this Indenture
into Articles and Sections, the provision of a Table of Contents and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation of this Indenture or of the Warrants.

Section
1.4           Day not a
Business Day.

     If any day on or before which any
action or notice is required to be taken or given hereunder is not a Business
Day, then such action or notice shall be required to be taken or given on or
before the requisite time on the next succeeding day that is a Business Day.

Section
1.5           Time of the
Essence.

Time shall be of the essence of this Indenture.

Section
1.6           Monetary
References.

     Whenever any amounts of money are
referred to herein, such amounts shall be deemed to be in lawful money of Canada
unless otherwise expressed.

- 6 -

Section
1.7           Applicable
Legislation.

     This Indenture, the Warrants, the
Warrant Certificates (including all documents relating thereto, which by common
accord have been and will be drafted in English) shall be construed in
accordance with the laws of the Province of British Columbia and the federal
laws applicable therein and shall be treated in all respects as British Columbia
contracts. Each of the parties hereto, which shall include the Warrantholders,
irrevocably attorns to the exclusive jurisdiction of the courts of the Province
of British Columbia with respect to all matters arising out of this Indenture
and the transactions contemplated herein.

ARTICLE 2
ISSUE OF WARRANTS

Section
2.1           Creation and
Issue of Warrants.

     A maximum of 60,000,000 Warrants
are hereby created and authorized to be issued in accordance with the terms and
conditions hereof. By written order of the Corporation, the Warrant Agent shall
issue, Authenticate and deliver Warrant Certificates to Registered
Warrantholders and record the name of the Registered Warrantholders on the
Warrant register. Registration of interests in Warrants held by the Depository
may be evidenced by a position appearing on the register for Warrants of the
Warrant Agent for an amount representing the aggregate number of such Warrants
outstanding from time to time.

Section
2.2           Terms of
Warrants.

	(1) 	
      Subject to the applicable conditions for exercise set out
      in Article 3 having been satisfied and subject to adjustment in accordance
      with Section 4.1, each Warrant shall entitle each Warrantholder thereof,
      upon exercise at any time after the Issue Date and prior to the Expiry
      Time, to acquire one (1) Common Share upon payment of the Exercise
      Price.

	 	 
	(2) 	
      No fractional Warrants shall be issued or otherwise
      provided for hereunder and Warrants may only be exercised in a sufficient
      number to acquire whole numbers of Common Shares. If the number of
      Warrants to which a Warrantholder would otherwise be entitled is not a
      whole number, then the number of Warrants to be issued to such
      Warrantholder shall be rounded up to the next whole number and the
      Warrantholder shall not be entitled to any compensation in respect of such
      fractional Warrant.

	 	 
	(3) 	
      Each Warrant shall entitle the holder thereof to such
      other rights and privileges as are set forth in this Indenture.

	 	 
	(4) 	
      The number of Common Shares which may be purchased
      pursuant to the Warrants and the Exercise Price therefor shall be adjusted
      upon the events and in the manner specified in Section
  4.1.

- 7 -

	(5) 	
      Subject to Section 2.11 hereof, the number of Warrants
      represented by any Warrant Certificate or any Warrant Certificates may be
      split, combined or exchanged for a Warrant Certificate or Warrant
      Certificates representing the same number of Warrants in the
    aggregate.

	 	 
	(6) 	
      The Corporation shall issue Common Shares upon the
      exercise of Warrants in accordance with the provisions
  hereof.

Section
2.3           Warrantholder
not a Shareholder.

     Except as may be specifically
provided herein, nothing in this Indenture or in the holding of a Warrant
Certificate, entitlement to a Warrant or otherwise, shall, in itself, confer or
be construed as conferring upon a Warrantholder any right or interest whatsoever
as a Shareholder of the Corporation, including, but not limited to, the right to
vote at, to receive notice of, or to attend, meetings of Shareholders or any
other proceedings of the Corporation, or the right to Dividends and other
allocations.

Section
2.4           Warrants to Rank
Pari Passu.

     All Warrants shall rank equally
and without preference over each other, whatever may be the actual date of issue
thereof.

Section
2.5           Form of
Warrants, Certificated Warrants.

     The Warrants may be issued in
both certificated and uncertificated form. All Warrants issued in certificated
form shall be evidenced by the Warrant Certificates (including all replacements
issued in accordance with this Indenture), substantially in the form set out in
Schedule “A” hereto, which shall be dated as of the Issue Date, shall bear such
distinguishing letters and numbers as the Corporation may, with the approval of
the Warrant Agent, prescribe, and shall be issuable in any denomination
excluding fractions. All Warrants issued to the Depository may be in either a
certificated or uncertificated form, such uncertificated form being evidenced by
a book position on the register of Warrantholders to be maintained by the
Warrant Agent in accordance with Section 2.6.

Section
2.6           Book Entry Only
Warrants.

	(1) 	
      Registration of beneficial interests in and transfers of
      Warrants held by the Depository shall be made only through the book entry
      registration system and no Warrant Certificates shall be issued in respect
      of such Warrants except where physical certificates evidencing ownership
      in such securities are required or as set out herein or as may be
      requested by the Depository, as determined by the Corporation, from time
      to time. Except as provided in this Section 2.6, owners of beneficial
      interests in any CDS Global Warrants shall not be entitled to have
      Warrants registered in their names and shall not receive or be entitled to
      receive Warrants in definitive form or to have their names appear in the
      register referred to in Section 2.9 herein.

- 8 -

	(2) 	
      Notwithstanding any other provision in this Indenture, no
      CDS Global Warrants may be exchanged in whole or in part for Warrants
      registered, and no transfer of any CDS Global Warrants in whole or in part
      may be registered, in the name of any Person other than the Depository for
      such CDS Global Warrants or a nominee thereof unless:

	 	 	 
		(a) 	
      the Depository notifies the Corporation that it is
      unwilling or unable to continue to act as depository in connection with
      the Book Entry Only Warrants and the Corporation is unable to locate a
      qualified successor;

	 	 	 
		(b) 	
      the Corporation determines that the Depository is no
      longer willing, able or qualified to discharge properly its
      responsibilities as holder of the CDS Global Warrants and the Corporation
      is unable to locate a qualified successor;

	 	 	 
		(c) 	
      the Depository ceases to be a clearing agency or
      otherwise ceases to be eligible to be a depository and the Corporation is
      unable to locate a qualified successor;

	 	 	 
		(d) 	
      the Corporation determines that the Warrants shall no
      longer be held as Book Entry Only Warrants through the
  Depository;

	 	 	 
		(e) 	
      such right is required by Applicable Legislation, as
      determined by the Corporation and the Corporation’s Counsel; or

	 	 	 
		(f) 	
      the Warrant is to be Authenticated to or for the account
      or benefit of a Person in the United States or a U.S. Person;

	 	 	 
		
      following which Warrants for those holders requesting the
      same shall be issued to the beneficial owners of such Warrants or their
      nominees as directed by the Depository. The Corporation shall provide a
      certificate of the Corporation giving notice to the Warrant Agent of the
      occurrence of any event outlined in this Section 2.6(2).

	 	 	 
	(3) 	
      Subject to the provisions of this Section 2.6, any
      exchange of CDS Global Warrants for Warrants which are not CDS Global
      Warrants may be made in whole or in part in accordance with the provisions
      of Section 2.11, mutatis mutandis. All such Warrants issued in exchange
      for a CDS Global Warrant or any portion thereof shall be registered in
      such names as the Depository for such CDS Global Warrants shall direct and
      shall be entitled to the same benefits and subject to the same terms and
      conditions (except insofar as they relate specifically to CDS Global
      Warrants) as the CDS Global Warrants or portion thereof surrendered upon
      such exchange.

	 	 	 
	(4) 	
      Every Warrant Authenticated upon registration of transfer
      of a CDS Global Warrant, or in exchange for or in lieu of a CDS Global
      Warrant or any portion thereof, whether pursuant to this Section 2.6, or
      otherwise, shall be Authenticated in the form of, and shall be, a CDS
      Global Warrant, unless such Warrant is registered in the name of a person
      other than the Depository for such CDS Global Warrant or a nominee
      thereof.

- 9 -

	(5) 	
      Notwithstanding anything to the contrary in this
      Indenture, subject to Applicable Legislation, the CDS Global Warrant will
      be issued as an Uncertificated Warrant, unless otherwise requested in
      writing by the Depositary or the Corporation.

	 	 	 
	(6) 	
      The rights of beneficial owners of Warrants who hold
      securities entitlements in respect of the Warrants through the book entry
      registration system shall be limited to those established by applicable
      law and agreements between the Depository and the Book Entry Only
      Participants and between such Book Entry Only Participants and the
      beneficial owners of Warrants who hold securities entitlements in respect
      of the Warrants through the book entry registration system, and such
      rights must be exercised through a Book Entry Only Participant in
      accordance with the rules and procedures of the Depository.

	 	 	 
	(7) 	
      Notwithstanding anything herein to the contrary, neither
      the Corporation nor the Warrant Agent nor any agent thereof shall have any
      responsibility or liability for:

	 	 	 
		(a) 	
      the electronic records maintained by the Depository
      relating to any ownership interests or any other interests in the Warrants
      or the depository system maintained by the Depository, or payments made on
      account of any ownership interest or any other interest of any person in
      any Warrant represented by an electronic position in the book entry
      registration system (other than the Depository or its nominee);

	 	 	 
		(b) 	
      for maintaining, supervising or reviewing any records of
      the Depository or any Book Entry Only Participant relating to any such
      interest; or

	 	 	 
		(c) 	
      any advice or representation made or given by the
      Depository or those contained herein that relate to the rules and
      regulations of the Depository or any action to be taken by the Depository
      on its own direction or at the direction of any Book Entry Only
      Participant.

	 	 	 
	(8) 	
      The Corporation may terminate the application of this
      Section 2.6 in its sole discretion upon written notice to the Warrant
      Agent in which case all Warrants shall be evidenced by Warrant
      Certificates registered in the name of a Person other than the
      Depository.

Section
2.7           Warrant
Certificate.

	(1) 	
      For Warrants issued in certificated form, the form of
      certificate representing Warrants shall be substantially as set out in
      Schedule “A” hereto or such other form as is authorized from time to time
      by the Warrant Agent. Each Warrant Certificate shall be Authenticated
      manually on behalf of the Warrant Agent. Each Warrant Certificate shall be
      signed by any two duly authorized signatories of the Corporation; whose
      signature shall appear on the Warrant Certificate and may be printed,
      lithographed or otherwise mechanically reproduced thereon and, in such
      event, certificates so signed are as valid and binding upon the
      Corporation as if it had been signed manually. Any Warrant Certificate
      which has two signatures as hereinbefore provided shall be valid
      notwithstanding that one or more of the persons whose signature is
      printed, lithographed or mechanically reproduced no longer holds
      office at the date of issuance of such certificate. The Warrant
      Certificates may be engraved, printed or lithographed, or partly in one
  form and partly in another, as the Warrant Agent may determine.

- 10 -

	(2) 	
      The Warrant Agent shall upon the written order of the
      Corporation, Authenticate Warrants and will reflect them on the register
      of Warrants and the Corporation shall, and hereby acknowledges that it
      shall, thereupon be deemed to have duly and validly issued such Warrants
      under this Indenture. Such Authentication shall be conclusive evidence
      that such Warrants have been duly issued hereunder and that the holder or
      holders are entitled to the benefits of this Indenture. The register shall
      be final and conclusive evidence as to all matters relating to Warrants
      with respect to which this Indenture requires the Warrant Agent to
      maintain records or accounts.

	 	 
	(3) 	
      Any Warrant Certificate or Uncertificated Warrant validly
      issued in accordance with the terms of this Indenture in effect at the
      time of issue of such Warrant Certificate or Uncertificated Warrant shall,
      subject to the terms of this Indenture and Applicable Legislation, validly
      entitle the holder to acquire Common Shares, notwithstanding that the form
      of such Warrant Certificate may not be in the form currently required by
      this Indenture.

	 	 
	(4) 	
      No Warrant shall be considered issued and shall be valid
      or obligatory or shall entitle the holder thereof to the benefits of this
      Indenture, until it has been Authenticated by the Warrant Agent.
      Authentication by the Warrant Agent shall not be construed as a
      representation or warranty by the Warrant Agent as to the validity of this
      Indenture or of such Warrant Certificates or Uncertificated Warrants
      (except the due Authentication thereof) or as to the performance by the
      Corporation of its obligations under this Indenture and the Warrant Agent
      shall in no respect be liable or answerable for the use made of the
      Warrants or any of them or of the consideration thereof. Authentication by
      the Warrant Agent shall be conclusive evidence as against the Corporation
      that the Warrants so Authenticated have been duly issued hereunder and
      that the holder thereof is entitled to the benefits of this
    Indenture.

Section
2.8           Legends.

	(1) 	
      Neither the Warrants nor the Common Shares issuable upon
      exercise of the Warrants have been or will be registered under any United
      States state securities laws. Each Warrant Certificate shall bear or be
      deemed to bear the following legends or such substantially similar
      variations thereof as the Corporation may prescribe from time to
    time:

	
      “THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES
      ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED
      UNDER ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THESE
      SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT THESE
      SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR
      INDIRECTLY, ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
      DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE “GOOD DELIVERY” IN
    SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA. 

- 11 -

	
      THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
      HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES LAWS
      OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN
      THE UNITED STATES OR BY OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OR
      ANY OTHER PERSON WITHIN THE UNITED STATES. “UNITED STATES” AND “U.S.
    PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.”    

		
      The Warrant Agent and the Corporation, acting reasonably,
      shall be entitled to request any other documents that they may require for
      the removal of the legend set forth above.

	 	 
	(2) 	
      Each CDS Global Warrant originally issued in Canada and
      held by the Depository, and each such CDS Global Warrant issued in
      exchange therefor or in substitution thereof shall bear or be deemed to
      bear the following legend or such substantially similar variations thereof
      as the Corporation may prescribe from time to
time:

	
      “UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
      REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO
      MANAS PETROLEUM CORPORATION (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION
      OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT
      THEREOF IS REGISTERED IN THE NAME OF CDS (AND ANY PAYMENT IS MADE TO CDS
      & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
      REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
      OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER
      HEREOF, CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES
      REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS
      FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE.”
    

	(3) 	
      Notwithstanding any other provisions of this Indenture,
      in processing and registering transfers of Warrants, no duty or
      responsibility whatsoever shall rest upon the Warrant Agent to determine
      the compliance by any transferor or transferee with the terms of the
      legend contained in subsections 2.8(1) or 2.8(2), or with the relevant
      securities laws or regulations and the Warrant Agent shall be entitled to
      assume that all transfers made pursuant to the
terms and conditions of this Indenture are legal and proper.

- 12 -

Section
2.9           Register of
Warrants

	(1) 	
      The Warrant Agent shall maintain records and accounts
      concerning the Warrants, whether certificated and uncertificated, which
      shall contain the information called for below with respect to each
      Warrant, together with such other information as may be required by law or
      as the Warrant Agent may elect to record. All such information shall be
      kept in one set of accounts and records which the Warrant Agent shall
      designate (in such manner as shall permit it to be so identified as such
      by an unaffiliated party) as the register of the holders of Warrants. The
      information to be entered for each account in the register of Warrants at
      any time shall include (without limitation):

	 	 	 
		(a) 	
      the name and address of the holder of the Warrants, the
      date of Authentication thereof and the number Warrants;

	 	 	 
		(b) 	
      whether such Warrant is a Certificated Warrant or an
      Uncertificated Warrant and, if a Warrant Certificate, the unique number or
      code assigned to and imprinted thereupon and, if an Uncertificated
      Warrant, the unique number or code assigned thereto if any;

	 	 	 
		(c) 	
      whether such Warrant has been cancelled; and

	 	 	 
		(d) 	
      a register of transfers in which all transfers of
      Warrants and the date and other particulars of each transfer shall be
      entered.

	 	 	 
		
      The register shall be available for inspection by the
      Corporation and or any Warrantholder during the Warrant Agent’s regular
      business hours on a Business Day and upon payment to the Warrant Agent of
      its reasonable fees. Any Warrantholder exercising such right of inspection
      shall first provide an affidavit in form satisfactory to the Corporation
      and the Warrant Agent stating the name and address of the Warrantholder
      and agreeing not to use the information therein except in connection with
      an effort to call a meeting of Warrantholders or to influence the voting
      of Warrantholders at any meeting of Warrantholders.

	 	 	 
	(2) 	
      The Warrant Agent shall place a prominent notation in the
      warrant register in accordance with Section 2.8.

Section
2.10           Issue in
Substitution for Warrant Certificates Lost, etc.

	(1) 	
      If any Warrant Certificate becomes mutilated or is lost,
      destroyed or stolen, the Corporation, subject to Applicable Legislation,
      shall issue and thereupon the Warrant Agent shall certify and deliver a
      new Warrant Certificate of like tenor and of like date and bearing the
      same legend, if applicable, as the one mutilated, lost, destroyed or
      stolen in exchange for and in place of and upon cancellation of such
      mutilated Warrant Certificate, or in lieu of and in substitution for such
      lost, destroyed or stolen Warrant Certificate, and the substituted Warrant
      Certificate shall be in a form approved by the Warrant Agent and the
      Warrants evidenced thereby shall be entitled to the benefits hereof and
      shall rank equally in accordance with its terms with all other Warrants
  issued or to be issued hereunder.

- 13 -

	(2) 	
      The applicant for the issue of a new Warrant Certificate
      pursuant to this Section 2.10 shall bear the cost of the issue thereof and
      in case of loss, destruction or theft shall, as a condition precedent to
      the issuance thereof, furnish to the Corporation and to the Warrant Agent
      such evidence of ownership and of the loss, destruction or theft of the
      Warrant Certificate so lost, destroyed or stolen as shall be satisfactory
      to the Corporation and to the Warrant Agent, in their discretion, acting
      reasonably, and such applicant may also be required to furnish an
      indemnity and surety bond in amount and form satisfactory to the
      Corporation and the Warrant Agent, in their discretion, acting reasonably,
      and shall pay the reasonable charges of the Corporation and the Warrant
      Agent in connection therewith.

	 	 
	(3) 	
      The Corporation shall cause the Warrant Agent to place a
      prominent notation in the warrant register in accordance with Section
      2.8(1).

Section
2.11           Exchange of
Warrant Certificates.

	(1) 	
      Any one or more Warrant Certificates representing any
      number of Warrants may, upon compliance with the reasonable requirements
      of the Warrant Agent (including compliance with applicable securities
      legislation), be exchanged for one or more other Warrant Certificates
      representing the same aggregate number of Warrants, and bearing the same
      legend, if applicable, as represented by the Warrant Certificate or
      Warrant Certificates so exchanged.

	 	 
	(2) 	
      Warrant Certificates may be exchanged only at the Warrant
      Agency or at any other place that is designated by the Corporation with
      the approval of the Warrant Agent. Any Warrant Certificate from the holder
      (or such other instructions, in form satisfactory to the Warrant Agent),
      tendered for exchange shall be cancelled and surrendered by the Warrant
      Agency to the Warrant Agent and the Warrant Agent shall certify all
      Warrant Certificates necessary to carry out such
  exchanges.

Section
2.12           Transfer and
Ownership of Warrants.

	(1) 	
      The Warrants may only be transferred on the register kept
      by the Warrant Agent at the Warrant Agency by the holder or its legal
      representatives or its attorney duly appointed by an instrument in writing
      in form and execution satisfactory to the Warrant Agent only upon (a) in
      the case of a Warrant Certificate, surrendering to the Warrant Agent at
      the Warrant Agency the Warrant Certificates representing the Warrants to
      be transferred together with a duly executed transfer form as set forth in
      Schedule A, (b) in the case of Book Entry Only Warrants, in accordance
      with procedures prescribed by the Depository under the book entry
      registration system, and (c) upon compliance
with:

- 14 -

	 	(i) 	
      the conditions herein;

	 	 	 
	 	(ii) 	
      such reasonable requirements as the Warrant Agent may
      prescribe; and

	 	 	 
	 	(iii) 	
      all applicable securities legislation and requirements of
      regulatory authorities;

		
      and such transfer shall be duly noted in such register by
      the Warrant Agent. Upon compliance with such requirements, the Warrant
      Agent shall issue to the transferee of a Certificated Warrant, a Warrant
      Certificate. Any Warrant Certificate shall continue to bear the legends
      prescribed in Section 2.8.

	 	 
	(2) 	
      The Warrant Agent understands and acknowledges that the
      Warrants and the Common Shares issuable upon the exercise of the Warrants
      have not been and will not be registered under any state securities laws
      of the United States; provided, however, that such understanding and
      acknowledgement shall not detract from or in any way lessen or diminish
      the obligations of the Warrantholders, and the transferors and transferees
      of Warrants, to comply with all Applicable Legislation including
      applicable state securities laws of the United States with respect to the
      sale, transfer, disposition, purchase or acquisition of the Warrants or
      the Common Shares issuable upon exercise of a Warrant.

	 	 
	(3) 	
      Subject to the provisions of this Indenture and
      Applicable Legislation, the Warrantholder shall be entitled to the rights
      and privileges attaching to the Warrants, and the issue of Common Shares
      by the Corporation upon the exercise of Warrants in accordance with the
      terms and conditions herein contained shall discharge all responsibilities
      of the Corporation and the Warrant Agent with respect to such Warrants and
      neither the Corporation nor the Warrant Agent shall be bound to inquire
      into the title of any such holder.

Section
2.13           Cancellation of
Surrendered Warrants.

     All Warrant Certificates
surrendered pursuant to Section 2.11, Section 2.12, Section 3.1, Section 3.2(10)
or Section 3.3 shall cancelled by the Warrant Agent and upon such circumstances
all such Uncertificated Warrants shall be deemed cancelled and so noted on the
register by the Warrant Agent. Upon request by the Corporation, the Warrant
Agent shall furnish to the Corporation a cancellation certificate identifying
the Warrant Certificates so cancelled, the number of Warrants evidenced thereby,
and the details of any Warrant Certificates issued in substitution or exchange
for such Warrant Certificates cancelled.

ARTICLE 3
EXERCISE OF WARRANTS

Section
3.1           Right of
Exercise.

     Subject to the provisions hereof,
only Warrantholders that are not U.S. Warrantholders may exercise the right
conferred on such holder to subscribe for and purchase one (1) Common Share for each Warrant after the Issue
Date and prior to the Expiry Time and in accordance with the conditions
herein.

- 15 -

Section
3.2           Warrant
Exercise.

	(1) 	
      Subject to Section 3.1, Registered Warrantholders of
      Warrant Certificates who wish to exercise the Warrants held by them in
      order to acquire Common Shares must complete the exercise form (the
      “Exercise Notice”) attached to the Warrant Certificate(s) which
      form is attached hereto as Schedule “B”, which may be amended by the
      Corporation with the consent of the Warrant Agent, if such amendment does
      not, in the reasonable opinion of the Corporation and the Warrant Agent,
      which may be based on the advice of Counsel, materially and adversely
      affect the rights, entitlements and interests of the Warrantholders, and
      deliver such certificate(s), the executed Exercise Notice and a certified
      cheque, bank draft or money order payable to or to the order of the
      Corporation in an amount equal to the product obtained by multiplying the
      number of Common Shares subscribed for pursuant to such Warrants by the
      Exercise Price to the Warrant Agent at the Warrant Agency. The Warrants
      represented by a Warrant Certificate shall be deemed to be surrendered
      upon personal delivery of such certificate, Exercise Notice and Exercise
      Price or, if such documents are sent by mail or other means of
      transmission, upon actual receipt thereof by the Warrant Agent at the
      office referred to above.

	 	 
	(2) 	
      The Warrants and the Common Shares issuable upon exercise
      thereof have not been registered under the securities laws of any state or
      territory of the United States, and the Warrants may not be exercised by
      any U.S. Warrantholder. No exercise of any Warrants shall be effective,
      and no certificate representing Common Shares shall be issued or
      registered pursuant to the exercise of Warrants, unless the Warrantholder
      certifies that: (i) it is not a U.S. Warrantholder; (ii) at the time of
      exercise of the Warrants it is not exercising the Warrants for the account
      or benefit of a person in the United States or a U.S. Person; (iii) it did
      not execute or deliver the exercise form for the Warrants in the United
      States; and (iv) delivery of the Common Shares to be issued upon exercise
      of the Warrants is not to an address in the United States. No certificates
      representing Common Shares will be registered to or for the account or
      benefit of a person in the United States or a U.S. Person or delivered to
      an address in the United States unless the holder of Warrants complies
      with the requirements set forth in this Section 3.2(2).

	 	 
	(3) 	
      A beneficial holder of Uncertificated Warrants evidenced
      by a security entitlement in respect of Warrants in the book entry
      registration system who desires to exercise his or her Warrants must do so
      by causing a Book Entry Only Participant to deliver to the Depository on
      behalf of the entitlement holder, notice of the owner’s intention to
      exercise Warrants in a manner acceptable to the Depository. Forthwith upon
      receipt by the Depository of such notice, as well as payment for the
      Exercise Price, the Depository shall deliver to the Warrant Agent
      confirmation of its intention to exercise Warrants (“Confirmation”)
      in a manner acceptable to the Warrant Agent, including by electronic means
      through the book entry registration system, and not withstanding Section
      3.2(1), shall electronically confirm only that the beneficial holder (i)
      at the time of exercise of these Warrants is not in the United
      States; (ii) is not a U.S. Person and is not exercising these Warrants for
      the account or benefit of a U.S. Person or any other person in the United
      States; and (iii) did not execute or deliver the Exercise Notice in the
  United States.

- 16 -

	(4) 	
      Payment representing the Exercise Price must be provided
      to the appropriate office of the Book Entry Only Participant in a manner
      acceptable to it. A notice in form acceptable to the Book Entry Only
      Participant and payment from such beneficial holder should be provided to
      the Book Entry Only Participant sufficiently in advance so as to
      permit the Book Entry Only Participant to deliver notice and payment to
      the Depository and for the Depository in turn to deliver notice and
      payment to the Warrant Agent prior to Expiry Time. The Depository will
      initiate the exercise by way of the Confirmation and forward the Exercise
      Price electronically to the Warrant Agent and the Warrant Agent will
      execute the exercise by issuing to the Depository through the book entry
      registration system the Common Shares to which the exercising
      Warrantholder is entitled pursuant to the exercise. Any expense associated
      with the exercise process will be for the account of the entitlement
      holder exercising the Warrants and/or the Book Entry Only Participant
      exercising the Warrants on its behalf.

	 	 
	(5) 	
      By causing a Book Entry Only Participant to deliver
      notice to the Depository, a Warrantholder shall be deemed to have
      irrevocably surrendered his or her Warrants so exercised and appointed
      such Book Entry Only Participant to act as his or her exclusive settlement
      agent with respect to the exercise and the receipt of Common Shares in
      connection with the obligations arising from such exercise.

	 	 
	(6) 	
      Any notice which the Depository determines to be
      incomplete, not in proper form or not duly executed shall for all purposes
      be void and of no effect and the exercise to which it relates shall be
      considered for all purposes not to have been exercised thereby. A failure
      by a Book Entry Only Participant to exercise or to give effect to the
      settlement thereof in accordance with the Warrantholder’s instructions
      will not give rise to any obligations or liability on the part of the
      Corporation or Warrant Agent to the Book Entry Only Participant or the
      Warrantholder.

	 	 
	(7) 	
      Any exercise form or Exercise Notice referred to in this
      Section 3.2 shall be signed by the Registered Warrantholder, or its
      executors or administrators or other legal representatives or an attorney
      of the Registered Warrantholder, duly appointed by an instrument in
      writing satisfactory to the Warrant Agent but such exercise form need not
      be executed by the Depository.

	 	 
	(8) 	
      Any exercise referred to in this Section 3.2 shall
      require that the entire Exercise Price for Common Shares subscribed for
      must be paid at the time of subscription and such Exercise Price and
      original Exercise Notice executed by the Registered Warrantholder or the
      Confirmation from the Depository must be received by the Warrant Agent
      prior to the Expiry Time.

- 17 -

	(9) 	
      Notwithstanding the foregoing in this Section 3.2,
      Warrants may only be exercised pursuant to this Section 3.2 by or on
      behalf of a Registered Warrantholder, except the Depository who makes the
      certifications set forth on the Exercise Notice set out in Schedule
    B.

	 	 
	(10) 	
      If the form of Exercise Notice set forth in the Warrant
      Certificate shall have been amended, the Corporation shall cause the
      amended Exercise Notice to be forwarded to all Registered
      Warrantholders.

	 	 
	(11) 	
      Exercise Notices and Confirmations must be delivered to
      the Warrant Agent at any time during the Warrant Agent’s actual business
      hours on or prior to any Business Day prior to the Expiry Time. Any
      Exercise Notice or Confirmations received by the Warrant Agent after
      business hours on any Business Day other than the Expiry Date will be
      deemed to have been received by the Warrant Agent on the next following
      Business Day.

	 	 
	(12) 	
      Any Warrant with respect to which a Confirmation is not
      received by the Warrant Agent before the Expiry Time on the Expiry Date
      shall be deemed to have expired and become void and all rights with
      respect to such Warrants shall terminate and be
  cancelled.

Section
3.3           Transfer Fees
and Taxes.

     If any of the Common Shares
subscribed for are to be issued to a person or persons other than the Registered
Warrantholder, the Registered Warrantholder shall execute the form of transfer
and will comply with such reasonable requirements as the Warrant Agent may
stipulate and will pay to the Corporation or the Warrant Agent on behalf of the
Corporation, all applicable transfer or similar taxes and the Corporation will
not be required to issue or deliver certificates evidencing Common Shares unless
or until such Warrantholder shall have paid to the Corporation or the Warrant
Agent on behalf of the Corporation, the amount of such tax or shall have
established to the satisfaction of the Corporation and the Warrant Agent that
such tax has been paid or that no tax is due.

Section
3.4           Warrant
Agency.

     To facilitate the exchange,
transfer or exercise of Warrants and compliance with such other terms and
conditions hereof as may be required, the Corporation has appointed the Warrant
Agency, as the agency at which Warrants may be surrendered for exchange or
transfer or at which Warrants may be exercised and the Warrant Agent has
accepted such appointment. The Corporation may from time to time designate
alternate or additional places as the Warrant Agency (subject to the Warrant
Agent’s prior approval) and will give notice to the Warrant Agent of any
proposed change of the Warrant Agency. Branch registers shall also be kept at
such other place or places, if any, as the Corporation, with the approval of the
Warrant Agent, may designate. The Warrant Agent will from time to time when
requested to do so by the Corporation or any Registered Warrantholder, upon
payment of the Warrant Agent’s reasonable charges, furnish a list of the names
and addresses of Registered Warrantholders showing the number of Warrants held by each such
Registered Warrantholder.

- 18 -

Section
3.5           Effect of
Exercise of Warrant Certificates.

	(1) 	
      Upon the exercise of Warrants pursuant to and in
      compliance with Section 3.2 and subject to Section 3.3, the Common Shares
      to be issued pursuant to the Warrants exercised shall be deemed to have
      been issued and the person or persons to whom such Common Shares are to be
      issued shall be deemed to have become the holder or holders of record of
      such Common Shares on the Exercise Date unless the transfer registers of
      the Corporation shall be closed on such date, in which case the Common
      Shares subscribed for shall be deemed to have been issued and such person
      or persons deemed to have become the holder or holders of record of such
      Common Shares, on the date on which such transfer registers are reopened
      but such Common Shares shall be issued at the Exercise Price in effect on
      the Exercise Date.

	 	 
	(2) 	
      As soon as practicable, and in any event no later than
      within the fifth Business Day after the Exercise Date with respect to a
      Warrant, the Corporation shall cause to be delivered or mailed to the
      person or persons in whose name or names the Warrant is registered or, if
      so specified in writing by the holder, cause to be delivered to such
      person or persons at the Warrant Agency where the Warrant Certificate was
      surrendered, a certificate or certificates for the appropriate number of
      Common Shares subscribed for, or any other appropriate evidence of the
      issuance of Common Shares to such person or persons in respect of Common
      Shares issued under the book entry registration
system.

Section
3.6           Partial Exercise
of Warrants; Fractions.

	(1) 	
      The holder of any Warrants may exercise his right to
      acquire a number of whole Common Shares less than the aggregate number of
      Warrants which the holder is entitled to acquire. In the event of any
      exercise of a number of Warrants less than the aggregate number which the
      holder is entitled to exercise, the holder of Warrants upon such exercise
      shall, in addition, be entitled to receive, without charge therefor, a new
      Warrant Certificate(s), bearing the same legend, if applicable, or other
      appropriate evidence of Warrants, in respect of the balance of the
      Warrants held by such holder and which were not then exercised.

	 	 
	(2) 	
      Notwithstanding anything herein contained including any
      adjustment provided for in Section 4.1, the Corporation shall not be
      required, upon the exercise of any Warrants, to issue fractions of Common
      Shares. Warrants may only be exercised in a sufficient number to acquire
      whole numbers of Common Shares. If the number of Common Shares to which a
      Warrantholder would otherwise be entitled upon exercise of a Warrant is
      not a whole number, then the number of Common Shares to be issued shall be
      rounded up to the next whole number and the holder of such Warrant shall
      not be entitled to any compensation in respect of any fractional Common
      Share.

- 19 -

Section
3.7           Expiration of
Warrants.

     Immediately after the Expiry
Time, all rights under any Warrant in respect of which the right of acquisition
provided for herein shall not have been exercised shall cease and terminate and
each Warrant shall be void and of no further force or effect.

Section
3.8           Accounting and
Recording.

	(1) 	
      The Warrant Agent shall promptly account to the
      Corporation with respect to Warrants exercised. Any securities or other
      instruments, from time to time received by the Warrant Agent shall be
      received in trust for, and shall be segregated and kept apart by the
      Warrant Agent, the Warrantholders and the Corporation as their interests
      may appear.

	 	 
	(2) 	
      The Warrant Agent shall record the particulars of
      Warrants exercised, which particulars shall include the names and
      addresses of the persons who become holders of Common Shares on exercise
      and the Exercise Date, in respect thereof. The Warrant Agent shall provide
      such particulars in writing to the Corporation within five Business Days
      of any request by the Corporation therefore.

Section
3.9           Securities
Restrictions.

     Notwithstanding anything herein
contained, Common Shares will be issued upon the exercise of a Warrant only in
compliance with the securities laws of any applicable jurisdiction, including
without limitation the United States, its commonwealths, territories and
possessions, the states of the United States and the District of Columbia.

ARTICLE 4
ADJUSTMENT OF NUMBER OF COMMON SHARES AND
EXERCISE PRICE

Section
4.1           Adjustment of
Number of Common Shares and Exercise Price.

     The subscription rights in effect
under the Warrants for Common Shares issuable upon the exercise of the Warrants
shall be subject to adjustment from time to time as follows:

	(a) 	
      if, at any time during the Adjustment Period, the
      Corporation shall:

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

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

	 	 	 
		(iii) 	
      issue Common Shares or securities exchangeable for, or
      convertible into, Common Shares to all or substantially all of the holders
      of Common Shares by way of distribution (other than a
distribution of Common Shares upon the exercise of Warrants); 

- 20 -

		
      the Exercise Price in effect on the effective date of
      such subdivision, re-division, change, reduction, combination,
      consolidation or on the record date of such distribution, as the case may
      be, shall in the case of the events referred to in (i) or (iii) above be
      decreased in proportion to the number of outstanding Common Shares
      resulting from such subdivision, re-division, change or distribution, or
      shall, in the case of the events referred to in (ii) above, be increased
      in proportion to the number of outstanding Common Shares resulting from
      such reduction, combination or consolidation. Such adjustment shall be
      made successively whenever any event referred to in this Section 4.1(a)
      shall occur. Upon any adjustment of the Exercise Price pursuant to Section
      4.1(a), the Exchange Rate shall be contemporaneously adjusted by
      multiplying the number of Common Shares theretofore obtainable on the
      exercise thereof by a fraction of which the numerator shall be the
      Exercise Price in effect immediately prior to such adjustment and the
      denominator shall be the Exercise Price resulting from such
    adjustment;

	 	 
	(b) 	
      if and whenever at any time during the Adjustment Period,
      the Corporation shall fix a record date for the issuance of rights,
      options or warrants to all or substantially all the holders of its
      outstanding Common Shares entitling them, for a period expiring not more
      than 45 days after such record date, to subscribe for or purchase Common
      Shares (or securities convertible or exchangeable into Common Shares) at a
      price per Common Share (or having a conversion or exchange price per
      Common Share) less than 95% of the Current Market Price on such record
      date (a “Rights Offering”), the Exercise Price shall be adjusted
      immediately after such record date so that it shall equal the amount
      determined by multiplying the Exercise Price in effect on such record date
      by a fraction, of which the numerator shall be the total number of Common
      Shares outstanding on such record date plus a number of Common Shares
      equal to the number arrived at by dividing the aggregate price of the
      total number of additional Common Shares offered for subscription or
      purchase (or the aggregate conversion or exchange price of the convertible
      or exchangeable securities so offered) by such Current Market Price, and
      of which the denominator shall be the total number of Common Shares
      outstanding on such record date plus the total number of additional Common
      Shares offered for subscription or purchase or into which the convertible
      or exchangeable securities so offered are convertible or exchangeable; any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of any such computation; such
      adjustment shall be made successively whenever such a record date is
      fixed; to the extent that no such rights or warrants are exercised prior
      to the expiration thereof, the Exercise Price shall be readjusted to the
      Exercise Price which would then be in effect if such record date had not
      been fixed or, if any such rights or warrants are exercised, to the
      Exercise Price which would then be in effect based upon the number of
      Common Shares (or securities convertible or exchangeable into Common
      Shares) actually issued upon the exercise of such rights or warrants, as
      the case may be. Such adjustment will be made successively whenever such a
      record date is fixed, provided that if two or more such record dates or
      record dates referred to in this Section
4.1(b) are fixed within a period of 25 Trading Days, such
      adjustment will be made successively as if each of such record dates
  occurred on the earliest of such record dates;

- 21 -

	(c) 	
      if and whenever at any time during the Adjustment Period
      the Corporation shall fix a record date for the making of a distribution
      to all or substantially all the holders of its outstanding Common Shares
      of (i) securities of any class, whether of the Corporation or any other
      trust (other than Common Shares), (ii) rights, options or warrants to
      subscribe for or purchase Common Shares (or other securities convertible
      into or exchangeable for Common Shares), other than pursuant to a Rights
      Offering; (iii) evidences of its indebtedness or (iv) any property or
      other assets then, in each such case, the Exercise Price shall be adjusted
      immediately after such record date so that it shall equal the price
      determined by multiplying the Exercise Price in effect on such record date
      by a fraction, of which the numerator shall be the total number of Common
      Shares outstanding on such record date multiplied by the Current Market
      Price on such record date, less the excess, if any, of the fair market
      value on such record date, as determined by the Corporation (whose
      determination shall be conclusive) and subject to the acceptance of the
      TSX Venture Exchange, of such securities or other assets so issued or
      distributed over the fair market value (subject to the acceptance of the
      TSX Venture Exchange) of any consideration received therefor by the
      Corporation from the holders of the Common Shares, and of which the
      denominator shall be the total number of Common Shares outstanding on such
      record date multiplied by such Current Market Price; and Common Shares
      owned by or held for the account of the Corporation shall be deemed not to
      be outstanding for the purpose of any such computation; such adjustment
      shall be made successively whenever such a record date is fixed; to the
      extent that such distribution is not so made, the Exercise Price shall be
      readjusted to the Exercise Price which would then be in effect if such
      record date had not been fixed. Upon any adjustment of the Exercise Price
      pursuant to this Section 4.1(c), the Exchange Rate will be adjusted
      immediately after such record date so that it will equal the rate
      determined by multiplying the Exchange Rate in effect on such record date
      by a fraction, of which the numerator shall be the Exercise Price in
      effect immediately prior to such adjustment and the denominator shall be
      the Exercise Price resulting from such adjustment;

	 	 
	(d) 	
      if and whenever at any time during the Adjustment Period,
      there is a reclassification or redesignation of the Common Shares or a
      capital reorganization of the Corporation other than as described in
      Section 4.1(a) or a consolidation, amalgamation, arrangement or merger of
      the Corporation with or into any other body corporate, trust, partnership
      or other entity, or a sale or conveyance of the property and assets of the
      Corporation as an entirety or substantially as an entirety to any other
      body corporate, trust, partnership or other entity, any Registered
      Warrantholder who has not exercised its right of acquisition prior to the
      effective date of such reclassification, capital reorganization,
      consolidation, amalgamation, arrangement or merger, sale or conveyance,
      upon the exercise of such right thereafter, shall be entitled to receive
      upon payment of the Exercise Price and shall accept, in lieu of the number
      of Common Shares that prior to such effective date the Registered
      Warrantholder would have been entitled to receive, the number of shares or
      other securities or property of the Corporation or of the body corporate,
      trust, partnership or other entity resulting from such merger,
      amalgamation or consolidation, or to which such sale or conveyance may be
      made, as the case may be, that such Registered Warrantholder would have
      been entitled to receive on such reclassification, capital reorganization,
      consolidation, amalgamation, arrangement or merger, sale or conveyance,
      if, on the effective date thereof, as the case may be, the Registered
      Warrantholder had been the registered holder of the number of Common
      Shares to which prior to such effective date it was entitled to acquire
      upon the exercise of the Warrants. If determined appropriate by the
      Warrant Agent, relying on advice of Counsel, to give effect to or to
      evidence the provisions of this Section 4.1(d), the Corporation, its
      successor, or such purchasing body corporate, partnership, trust or other
      entity, as the case may be, shall, prior to or contemporaneously with any
      such reclassification, capital reorganization, consolidation,
      amalgamation, arrangement, merger, sale or conveyance, enter into an
      indenture which shall provide, to the extent possible, for the application
      of the provisions set forth in this Indenture with respect to the rights
      and interests thereafter of the Registered Warrantholders to the end that
      the provisions set forth in this Indenture shall thereafter
      correspondingly be made applicable, as nearly as may reasonably be, with
      respect to any shares, other securities or property to which a Registered
      Warrantholder is entitled on the exercise of its acquisition rights
      thereafter. Any indenture entered into between the Corporation and the
      Warrant Agent pursuant to the provisions of this Section 4.1(d) shall be a
      supplemental indenture entered into pursuant to the provisions of Article
      8 hereof. Any indenture entered into between the Corporation, any
      successor to the Corporation or such purchasing body corporate,
      partnership, trust or other entity and the Warrant Agent shall provide for
      adjustments which shall be as nearly equivalent as may be practicable to
      the adjustments provided in this Section 4.1 and which shall apply to
      successive reclassifications, capital reorganizations, amalgamations,
      consolidations, mergers, sales or conveyances;

- 22 -

	(e) 	
      in any case in which this Section 4.1 shall require that
      an adjustment shall become effective immediately after a record date for
      an event referred to herein, the Corporation may defer, until the
      occurrence of such event, issuing to the Registered Warrantholder of any
      Warrant exercised after such event the additional Common Shares issuable
      upon such conversion by reason of the adjustment required by such event
      before giving effect to such adjustment; provided, however, that the
      Corporation shall deliver to such Registered Warrantholder an appropriate
      instrument evidencing such Registered Warrantholder’s right to receive
      such additional Common Shares upon the occurrence of the event requiring
      such adjustment and the right to receive any distributions made on such
      additional Common Shares declared in favour of holders of record of Common
      Shares on and after the relevant date of exercise or such later date as
      such Registered Warrantholder would, but for the provisions of this
      Section 4.1(e), have become the holder of record of such additional Common
      Shares pursuant to Section 4.1;

	 	 
	(f) 	
      in any case in which Section 4.1(a)(iii), Section 4.1(b)
      or Section 4.1(c) require that an adjustment be made to the Exercise
      Price, no such adjustment shall be made if the Registered Warrantholders of the outstanding Warrants
      receive, subject to any required stock exchange or regulatory approval,
      the rights or warrants referred to in Section 4.1(a)(iii), Section 4.1(b)
      or the shares, rights, options, warrants, evidences of indebtedness or
      assets referred to in Section 4.1(c), as the case may be, in such kind and
      number as they would have received if they had been holders of Common
      Shares on the applicable record date or effective date, as the case may
      be, by virtue of their outstanding Warrant having then been exercised into
      Common Shares at the Exercise Price in effect on the applicable record
      date or effective date, as the case may be;

- 23 -

	(g) 	
      the adjustments provided for in this Section 4.1 are
      cumulative, and shall, in the case of adjustments to the Exercise Price be
      computed to the nearest whole cent and shall apply to successive
      subdivisions, re-divisions, reductions, combinations, consolidations,
      distributions, issues or other events resulting in any adjustment under
      the provisions of this Section 4.1, provided that, notwithstanding any
      other provision of this Section, no adjustment of the Exercise Price shall
      be required unless such adjustment would require an increase or decrease
      of at least 1% in the Exercise Price then in effect; provided, however,
      that any adjustments which by reason of this Section 4.1(g) are not
      required to be made shall be carried forward and taken into account in any
      subsequent adjustment; and

	 	 
	(h) 	
      after any adjustment pursuant to this Section 4.1, the
      term “Common Shares” where used in this Indenture shall be
      interpreted to mean securities of any class or classes which, as a result
      of such adjustment and all prior adjustments pursuant to this Section 4.1,
      the Registered Warrantholder is entitled to receive upon the exercise of
      his Warrant, and the number of Common Shares indicated by any exercise
      made pursuant to a Warrant shall be interpreted to mean the number of
      Common Shares or other property or securities a Registered Warrantholder
      is entitled to receive, as a result of such adjustment and all prior
      adjustments pursuant to this Section 4.1, upon the full exercise of a
      Warrant.

Section
4.2           Entitlement to
Common Shares on Exercise of Warrant.

     All Common Shares or shares of
any class or other securities, which a Registered Warrantholder is at the time
in question entitled to receive on the exercise of its Warrant, whether or not
as a result of adjustments made pursuant to this Article 4, shall, for the
purposes of the interpretation of this Indenture, be deemed to be Common Shares
which such Registered Warrantholder is entitled to acquire pursuant to such
Warrant.

Section
4.3           No Adjustment
for Certain Transactions.

     Notwithstanding anything in this
Article 4, no adjustment shall be made in the acquisition rights attached to the
Warrants if the issue of Common Shares is being made pursuant to this Indenture
or in connection with (a) any share incentive plan or restricted share plan or
share purchase plan in force from time to time for directors, officers,
employees, consultants or other service providers of the Corporation; or (b) the
satisfaction of existing instruments issued at the date hereof.

- 24 -

Section
4.4           Determination by
Auditors.

     In the event of any dispute
arising with respect to the adjustments provided for in this Article 4 such
dispute shall be conclusively determined by an independent firm of chartered
accountants other than the Auditors, who shall have access to all necessary
records of the Corporation, and such determination shall be binding upon the
Corporation, the Warrant Agent, all Warrantholders and all other persons
interested therein.

Section
4.5           Proceedings
Prior to any Action Requiring Adjustment.

     As a condition precedent to the
taking of any action which would require an adjustment in any of the acquisition
rights pursuant to any of the Warrants, including the number of Common Shares
which are to be received upon the exercise thereof, the Corporation shall take
any action which may, in the opinion of Counsel, be necessary in order that the
Corporation has unissued and reserved in its authorized capital and may validly
and legally issue as fully paid and non-assessable all the Common Shares which
the holders of such Warrants are entitled to receive on the full exercise
thereof in accordance with the provisions hereof.

Section
4.6           Certificate of
Adjustment.

     The Corporation shall from time
to time immediately after the occurrence of any event which requires an
adjustment or readjustment as provided in Section 4.1, deliver a certificate of
the Corporation to the Warrant Agent specifying the nature of the event
requiring the same and the amount of the adjustment or readjustment necessitated
thereby and setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based, which certificate shall be supported
by a certificate of the Corporation’s Auditors verifying such calculation. The
Warrant Agent shall rely, and shall be protected in so doing, upon the
certificate of the Corporation or of the Corporation’s Auditor and any other
document filed by the Corporation pursuant to this Article 4 for all purposes.

Section
4.7           Notice of
Special Matters.

     The Corporation covenants with
the Warrant Agent that, so long as any Warrant remains outstanding, it will give
notice to the Warrant Agent and to the Registered Warrantholders of its
intention to fix a record date that is prior to the Expiry Date for any matter
for which an adjustment may be required pursuant to Section 4.1 Such notice
shall specify the particulars of such event and the record date for such event,
provided that the Corporation shall only be required to specify in the notice
such particulars of the event as shall have been fixed and determined on the
date on which the notice is given. The notice shall be given in each case not
less than 14 days prior to such applicable record date. If notice has been given
and the adjustment is not then determinable, the Corporation shall promptly,
after the adjustment is determinable, file with the Warrant Agent a computation
of the adjustment and give notice to the Registered Warrantholders of such
adjustment computation. 

- 25 -

Section
4.8           No Action after
Notice.

     The Corporation covenants with
the Warrant Agent that it will not close its transfer books or take any other
corporate action which might deprive the Registered Warrantholder of the
opportunity to exercise its right of acquisition pursuant thereto during the
period of 14 days after the giving of the certificate or notices set forth in
Section 4.6 and Section 4.7.

Section
4.9           Other
Action.

     If the Corporation, after the
date hereof, shall take any action affecting the Common Shares other than action
described in Section 4.1, which in the reasonable opinion of the directors of
the Corporation would materially affect the rights of Registered Warrantholders,
the number of Common Shares which may be acquired upon exercise of the Warrants
shall be adjusted in such manner and at such time, by action of the directors,
acting reasonably, in their sole discretion as they may determine to be
equitable in the circumstances, provided that no such adjustment will be made
unless prior approval of any stock exchange on which the Common Shares are
listed for trading has been obtained.

Section
4.10         Protection of Warrant
Agent.

		
      The Warrant Agent shall not:

	 	 
	(a) 	
      at any time be under any duty or responsibility to any
      Registered Warrantholder to determine whether any facts exist which may
      require any adjustment contemplated by Section 4.1, or with respect to the
      nature or extent of any such adjustment when made, or with respect to the
      method employed in making the same;

	 	 
	(b) 	
      be accountable with respect to the validity or value (or
      the kind or amount) of any Common Shares or of any other securities or
      property which may at any time be issued or delivered upon the exercise of
      the rights attaching to any Warrant;

	 	 
	(c) 	
      be responsible for any failure of the Corporation to
      issue, transfer or deliver Common Shares or certificates for the same upon
      the surrender of any Warrants for the purpose of the exercise of such
      rights or to comply with any of the covenants contained in this Article;
      and

	 	 
	(d) 	
      incur any liability or be in any way responsible for the
      consequences of any breach on the part of the Corporation of any of the
      representations, warranties or covenants herein contained or of any acts
      of the directors, officers, employees, agents or servants of the
      Corporation.

Section
4.11           Other
Adjustments.

     If the Corporation after the date
hereof shall take any action affecting the Common Shares, other than an action
described in this Article 4 which, in the opinion of the directors, would have a
material adverse affect on the rights of Registered Warrantholders, the Exercise
Price and/or the Exchange Rate, there shall be an adjustment in such manner, if
any, and at such time, by action of the directors, acting reasonably and in good
faith, as they may reasonably determine to be equitable to the Registered
Warrantholders in such circumstances, provided that no such adjustment will be
made unless prior approval of any stock exchange on which the Common Shares are
listed for trading has been obtained. 

- 26 -

Section
4.12           Participation
by Warrantholder.

     No adjustments shall be made
pursuant to this Article 4 if the Registered Warrantholders are entitled to
participate in any event described in this Article 4 on the same terms, mutatis
mutandis, as if the Registered Warrantholders had exercised their Warrants prior
to, or on the effective date or record date of, such event.

ARTICLE 5
RIGHTS OF THE CORPORATION AND
COVENANTS

Section 5.1 Optional Purchases by the Corporation.

     Subject to compliance with
applicable securities legislation and approval of applicable regulatory
authorities, if any, the Corporation may from time to time purchase by private
contract or otherwise any of the Warrants. Any such purchase shall be made at
the lowest price or prices at which, in the opinion of the directors, such
Warrants are then obtainable, plus reasonable costs of purchase, and may be made
in such manner, from such persons and on such other terms as the Corporation, in
its sole discretion, may determine. In the case of Certificated Warrants,
Warrant Certificates representing the Warrants purchased pursuant to this
Section 5.1 shall forthwith be delivered to and cancelled by the Warrant Agent.
In the case of Uncertificated Warrants, the Warrants purchased pursuant to this
Section 5.1 shall be reflected accordingly in accordance with procedures
prescribed by the Depository under the book entry registration system. No
Warrants shall be issued in replacement thereof.

Section
5.2           General
Covenants.

     The Corporation covenants with
the Warrant Agent for the benefit of the Warrant Agent and the Warrantholders
that so long as any Warrants remain outstanding:

	(a) 	
      it will reserve and keep available a sufficient number of
      Common Shares for the purpose of enabling it to satisfy its obligations to
      issue Common Shares upon the exercise of the Warrants;

	 	 
	(b) 	
      it will cause the Common Shares from time to time
      acquired pursuant to the exercise of the Warrants to be duly issued and
      delivered in accordance with the Warrants and the terms hereof;

	 	 
	(c) 	
      all Common Shares which shall be issued upon exercise of
      the right to acquire provided for herein shall be fully paid and
      non-assessable;

	 	 
	(d) 	
      it will use best efforts to maintain its corporate
      existence and carry on its business in the ordinary
  course;

- 27 -

	(e) 	
      it will use reasonable commercial efforts to ensure that
      all Common Shares outstanding or issuable from time to time (including
      without limitation the Common Shares issuable on the exercise of the
      Warrants) continue to be or are listed and posted for trading on the TSX
      Venture Exchange (or such other Canadian stock exchange acceptable to the
      Corporation), provided that this clause shall not be construed as limiting
      or restricting the Corporation to agree to a consolidation, amalgamation,
      arrangement, takeover bid or merger even if the consideration being
      offered are not securities that are so listed and posted for
    trading;

	 	 
	(f) 	
      it will make all requisite filings under applicable
      Canadian securities legislation including those necessary to remain a
      reporting issuer not in default in each of the provinces and other
      Canadian jurisdictions where it is or becomes a reporting issuer;
    and

	 	 
	(g) 	
      generally, it will well and truly perform and carry out
      all of the acts or things to be done by it as provided in this
      Indenture.

Section
5.3           Warrant Agent’s
Remuneration and Expenses.

     The Corporation covenants that it
will pay to the Warrant Agent from time to time reasonable remuneration for its
services hereunder and will pay or reimburse the Warrant Agent upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Warrant Agent in the administration or execution of the duties hereby created
(including the reasonable compensation and the disbursements of its Counsel and
all other advisers and assistants not regularly in its employ) both before any
default hereunder and thereafter until all duties of the Warrant Agent hereunder
shall be finally and fully performed. Any amount owing hereunder and remaining
unpaid after 30 days from the invoice date will bear interest at the then
current rate charged by the Warrant Agent against unpaid invoices and shall be
payable upon demand. This Section shall survive the resignation or removal of
the Warrant Agent and/or the termination of this Indenture.

Section
5.4           Performance of
Covenants by Warrant Agent.

     If the Corporation shall fail to
perform any of its covenants contained in this Indenture, the Warrant Agent may
notify the Registered Warrantholders of such failure on the part of the
Corporation or may itself perform any of the covenants capable of being
performed by it but, subject to Section 9.2, shall be under no obligation to
perform said covenants or to notify the Registered Warrantholders of such
performance by it. All sums expended or advanced by the Warrant Agent in so
doing shall be repayable as provided in Section 5.3. No such performance,
expenditure or advance by the Warrant Agent shall relieve the Corporation of any
default hereunder or of its continuing obligations under the covenants herein
contained.

Section
5.5           Enforceability
of Warrants.

     The Corporation covenants and
agrees that it is duly authorized to create and issue the Warrants to be issued
hereunder and that the Warrants, when issued and Authenticated as herein
provided, will be valid and enforceable against the Corporation in accordance
with the provisions hereof and the terms hereof and that, subject to the
provisions of this Indenture, the Corporation will cause the Common Shares from
time to time acquired upon exercise of Warrants issued under this Indenture to
be duly issued and delivered in accordance with the terms of this Indenture.

- 28 -

ARTICLE 6
ENFORCEMENT

Section
6.1           Suits by
Registered Warrantholders.

     All or any of the rights
conferred upon any Registered Warrantholder by any of the terms of this
Indenture may be enforced by the Registered Warrantholder by appropriate
proceedings but without prejudice to the right which is hereby conferred upon
the Warrant Agent to proceed in its own name to enforce each and all of the
provisions herein contained for the benefit of the Registered
Warrantholders.

Section
6.2           Suits by the
Corporation.

     The Corporation shall have the
right to enforce full payment of the Exercise Price of all Common Shares issued
by the Warrant Agent to a Registered Warrantholder hereunder and shall be
entitled to demand such payment from the Registered Warrantholder or
alternatively to instruct the Warrant Agent to cancel the share certificates and
amend the securities register accordingly.

Section
6.3           Immunity of
Shareholders, etc.

     The Warrant Agent and the
Warrantholders hereby waive and release any right, cause of action or remedy now
or hereafter existing in any jurisdiction against any incorporator or any past,
present or future shareholder, trustee, employee or agent of the Corporation or
any successor Corporation on any covenant, agreement, representation or warranty
by the Corporation herein.

Section
6.4           Waiver of
Default.

		
      Upon the happening of any default hereunder:

	 	 
	(a) 	
      the Registered Warrantholders of not less than 51% of the
      Warrants then outstanding shall have power (in addition to the powers
      exercisable by Extraordinary Resolution) by requisition in writing to
      instruct the Warrant Agent to waive any default hereunder and the Warrant
      Agent shall thereupon waive the default upon such terms and conditions as
      shall be prescribed in such requisition; or

	 	 
	(b) 	
      the Warrant Agent shall have power to waive any default
      hereunder upon such terms and conditions as the Warrant Agent may deem
      advisable, on the advice of Counsel, if, in the Warrant Agent’s opinion,
      based on the advice of Counsel, the same shall have been cured or adequate
      provision made therefore; provided that no delay or omission of the Warrant Agent or of
the Registered Warrantholders to exercise any right or power accruing upon any
default shall impair any such right or power or shall be construed to be a
waiver of any such default or acquiescence therein and provided further that no
act or omission either of the Warrant Agent or of the Registered Warrantholders
in the premises shall extend to or be taken in any manner whatsoever to affect
any subsequent default hereunder of the rights resulting therefrom.

- 29 -

ARTICLE 7
MEETINGS OF REGISTERED
WARRANTHOLDERS

Section
7.1           Right to Convene
Meetings.

     The Warrant Agent may at any time
and from time to time, and shall on receipt of a written request of the
Corporation or of a Warrantholders’ Request and upon being indemnified and
funded to its reasonable satisfaction by the Corporation or by the Registered
Warrantholders signing such Warrantholders’ Request against the costs which may
be incurred by the Warrant Agent in connection with the calling and holding of
such meeting, convene a meeting of the Registered Warrantholders. If the Warrant
Agent fails to so call a meeting within seven days after receipt of such written
request of the Corporation or such Warrantholders’ Request and the indemnity and
funding given as aforesaid, the Corporation or such Registered Warrantholders,
as the case may be, may convene such meeting. Every such meeting shall be held
in the City of Vancouver or at such other place as may be approved or determined
by the Warrant Agent. Registered Warrantholders may elect to attend such meeting
by teleconference so long as such Registered Warrantholder provides the Warrant
Agent with written notice of such Registered Warrantholders decision to attend
by teleconference at least two Business Days in advance of such meeting. Any
Registered Warrantholder attending a meeting by way of teleconference shall be
deemed to be present in person and have all of the rights of a Registered
Warrantholder actually in attendance in person. As a result, the Registered
Warrantholder must ensure that it has access to facsimile or electronic mail in
order to ensure the Registered Warrantholder can participate in the same manner
as if they were attending in person.

Section
7.2           Notice.

     At least 21 days’ prior written
notice of any meeting of Registered Warrantholders shall be given to the
Registered Warrantholders in the manner provided for in Section 10.2 and a copy
of such notice shall be sent by mail to the Warrant Agent (unless the meeting
has been called by the Warrant Agent) and to the Corporation (unless the meeting
has been called by the Corporation). Such notice shall state the time when and
the place where the meeting is to be held, shall state briefly the general
nature of the business to be transacted thereat and shall contain such
information as is reasonably necessary to enable the Registered Warrantholders
to make a reasoned decision on the matter, but it shall not be necessary for any
such notice to set out the terms of any resolution to be proposed or any of the
provisions of this Section 7.2.

- 30 -

Section
7.3          
Chairman.

     An individual (who need not be a
Registered Warrantholder) designated in writing by the Warrant Agent shall be
chairman of the meeting and if no individual is so designated, or if the
individual so designated is not present within fifteen minutes from the time
fixed for the holding of the meeting, the Registered Warrantholders present in
person or by proxy shall choose an individual present to be chairman.

Section
7.4           Quorum.

     Subject to the provisions of
Section 7.11, at any meeting of the Registered Warrantholders a quorum shall
consist of Registered Warrantholder(s) present in person (including any
Registered Warrantholder attending by way of teleconference) or by proxy and
holding at least 50% of the aggregate number of then outstanding Warrants. If a
quorum of the Registered Warrantholders shall not be present within thirty
minutes from the time fixed for holding any meeting, the meeting, if summoned by
Registered Warrantholders or on a Warrantholders’ Request, shall be dissolved;
but in any other case the meeting shall be adjourned to the same day in the next
week (unless such day is not a Business Day, in which case it shall be adjourned
to the next following Business Day) at the same time and place and no notice of
the adjournment need be given. Any business may be brought before or dealt with
at an adjourned meeting which might have been dealt with at the original meeting
in accordance with the notice calling the same. No business shall be transacted
at any meeting unless a quorum be present at the commencement of business. At
the adjourned meeting the Registered Warrantholders present in person or by
proxy shall form a quorum and may transact the business for which the meeting
was originally convened, notwithstanding that they may not be holding at least
50% of the aggregate number of then outstanding Warrants.

Section
7.5           Power to
Adjourn.

     Subject to the provisions of
Section 7.4 hereof, the chairman of any meeting at which a quorum of the
Registered Warrantholders is present may, with the consent of the meeting,
adjourn any such meeting, and no notice of such adjournment need be given except
such notice, if any, as the meeting may prescribe.

Section
7.6           Show of
Hands.

     Every question submitted to a
meeting shall be decided in the first place by a majority of the votes given on
a show of hands except that votes on an Extraordinary Resolution shall be given
in the manner hereinafter provided. At any such meeting, unless a poll is duly
demanded as herein provided, a declaration by the chairman that a resolution has
been carried or carried unanimously or by a particular majority or lost or not
carried by a particular majority shall be conclusive evidence of the fact.

Section
7.7           Poll and
Voting.

	(1) 	
      On every Extraordinary Resolution, and on any other
      question submitted to a meeting and after a vote by show of hands when
      demanded by the chairman or by one or more of the Registered
      Warrantholders acting in person (including by teleconference) or
  by proxy and holding in the aggregate at least 5% of the
      aggregate number of Warrants then outstanding, a poll shall be taken in
      such manner as the chairman shall direct. Questions other than those
      required to be determined by Extraordinary Resolution shall be decided by
  a majority of the votes cast on the poll.

- 31 -

	(2) 	
      On a show of hands, every person who is present and
      entitled to vote, whether as a Registered Warrantholder or as proxy for
      one or more absent Registered Warrantholders, or both, shall have one
      vote. On a poll, each Registered Warrantholder present in person
      (including by teleconference) or represented by a proxy duly appointed by
      instrument in writing shall be entitled to one vote in respect of each
      Warrant then held or represented by it. A proxy need not be a Registered
      Warrantholder. The chairman of any meeting shall be entitled, both on a
      show of hands and on a poll, to vote in respect of the Warrants, if any,
      held or represented by him.

Section
7.8          
Regulations.

	(1) 	
      The Warrant Agent, or the Corporation with the approval
      of the Warrant Agent, may from time to time make regulations and from time
      to time vary such regulations as it shall think fit for:

	 	 	 
		(a) 	
      the setting of the record date for a meeting for the
      purpose of determining Registered Warrantholders entitled to receive
      notice of and to vote at the meeting;

	 	 	 
		(b) 	
      the deposit of voting certificates and instruments
      appointing proxies at such place and time as the Warrant Agent, the
      Corporation or the Registered Warrantholders convening the meeting, as the
      case may be, may in the notice convening the meeting direct;

	 	 	 
		(c) 	
      the deposit of voting certificates and instruments
      appointing proxies at some approved place or places other than the place
      at which the meeting is to be held and enabling particulars of such
      instruments appointing proxies to be mailed or telecopied before the
      meeting to the Corporation or to the Warrant Agent at the place where the
      same is to be held and for the voting of proxies so deposited as though
      the instruments themselves were produced at the meeting;

	 	 	 
		(d) 	
      the form of the instrument of proxy;

	 	 	 
		(e) 	
      generally for the calling of meetings of Registered
      Warrantholders and the conduct of business thereat; and

	 	 	 
		(f) 	
      determining the procedures for Registered Warrantholders
      to attend meetings by teleconference.

	 	 	 
	(2) 	
      Any regulations so made shall be binding and effective
      and the votes given in accordance therewith shall be valid and shall be
      counted. Save as such regulations may provide, the only persons who shall
be recognized at any meeting as a Registered Warrantholder, or be entitled to
vote or be present at the meeting in respect thereof (subject to Section 7.9),
shall be Registered Warrantholders or proxies of Registered Warrantholders.

- 32 -

Section
7.9           Corporation and
Warrant Agent May be Represented.

     The Corporation and the Warrant
Agent, by their respective directors, officers, agents, and employees and the
Counsel for the Corporation and for the Warrant Agent may attend any meeting of
the Registered Warrantholders.

Section
7.10         Powers Exercisable by
Extraordinary Resolution.

     In addition to all other powers
conferred upon them by any other provisions of this Indenture or by law, the
Registered Warrantholders at a meeting shall, subject to the provisions of
Section 7.11, have the power exercisable from time to time by Extraordinary
Resolution:

	(a) 	
      to consent and agree to any modification, abrogation,
      alteration, compromise or arrangement of the rights of Registered
      Warrantholders or the Warrant Agent in its capacity as warrant agent
      hereunder (subject to the Warrant Agent’s prior consent, acting
      reasonably) or on behalf of the Registered Warrantholders against the
      Corporation whether such rights arise under this Indenture or
      otherwise;

	 	 
	(b) 	
      to amend, alter or repeal any Extraordinary Resolution
      previously passed or sanctioned by the Registered
Warrantholders;

	 	 
	(c) 	
      to direct or to authorize the Warrant Agent, subject to
      Section 9.2(2) hereof, to enforce any of the covenants on the part of the
      Corporation contained in this Indenture or to enforce any of the rights of
      the Registered Warrantholders in any manner specified in such
      Extraordinary Resolution or to refrain from enforcing any such covenant or
      right;

	 	 
	(d) 	
      to waive, and to direct the Warrant Agent to waive, any
      default on the part of the Corporation in complying with any provisions of
      this Indenture either unconditionally or upon any conditions specified in
      such Extraordinary Resolution;

	 	 
	(e) 	
      to restrain any Registered Warrantholder from taking or
      instituting any suit, action or proceeding against the Corporation for the
      enforcement of any of the covenants on the part of the Corporation in this
      Indenture or to enforce any of the rights of the Registered
      Warrantholders;

	 	 
	(f) 	
      to direct any Registered Warrantholder who, as such, has
      brought any suit, action or proceeding to stay or to discontinue or
      otherwise to deal with the same upon payment of the costs, charges and
      expenses reasonably and properly incurred by such Registered Warrantholder
      in connection therewith;

- 33 -

	(g) 	
      to assent to any change in or omission from the
      provisions contained in this Indenture or any ancillary or supplemental
      instrument which may be agreed to by the Corporation, and to authorize the
      Warrant Agent to concur in and execute any ancillary or supplemental
      indenture embodying the change or omission;

	 	 
	(h) 	
      with the consent of the Corporation, such consent not to
      be unreasonably withheld, to remove the Warrant Agent or its successor in
      office and to appoint a new warrant agent or warrant agents to take the
      place of the Warrant Agent so removed; and

	 	 
	(i) 	
      to assent to any compromise or arrangement with any
      creditor or creditors or any class or classes of creditors, whether
      secured or otherwise, and with holders of any shares or other securities
      of the Corporation.

Section
7.11           Meaning of
Extraordinary Resolution.

	(1) 	
      The expression “Extraordinary Resolution” when
      used in this Indenture means, subject as hereinafter provided in this
      Section 7.11 and in Section 7.14, a resolution proposed at a meeting of
      Registered Warrantholders duly convened for that purpose and held in
      accordance with the provisions of this Article 7 at which there are
      present in person (including by teleconference) or by proxy Registered
      Warrantholders holding at least 25% of the aggregate number of Warrants
      and passed by the affirmative votes of Registered Warrantholders holding
      not less than 662/3% of the aggregate number of Warrants at the meeting
      and voted on the poll upon such resolution.

	 	 
	(2) 	
      If, at the meeting at which an Extraordinary Resolution
      is to be considered, Registered Warrantholders holding at least 25% of the
      aggregate number of Warrants are not present in person (including by
      teleconference) or by proxy within 30 minutes after the time appointed for
      the meeting, then the meeting, if convened by Registered Warrantholders or
      on a Warrantholders’ Request, shall be dissolved; but in any other case it
      shall stand adjourned to such day, being not less than 15 or more than 60
      days later, and to such place and time as may be appointed by the
      chairman. Not less than 14 days’ prior notice shall be given of the time
      and place of such adjourned meeting in the manner provided for in Section
      10.2. Such notice shall state that at the adjourned meeting the Registered
      Warrantholders present in person (including by teleconference) or by proxy
      shall form a quorum but it shall not be necessary to set forth the
      purposes for which the meeting was originally called or any other
      particulars. At the adjourned meeting the Registered Warrantholders
      present in person (including by teleconference) or by proxy shall form a
      quorum and may transact the business for which the meeting was originally
      convened and a resolution proposed at such adjourned meeting and passed by
      the requisite vote as provided in Section 7.11(1) shall be an
      Extraordinary Resolution within the meaning of this Indenture
      notwithstanding that Registered Warrantholders holding at least 25% of the
      aggregate number of then outstanding Warrants are not present in person
      (including by teleconference) or by proxy at such adjourned
  meeting.

- 34 -

	(3) 	
      Subject to Section 7.14, votes on an Extraordinary
      Resolution shall always be given on a poll and no demand for a poll on an
      Extraordinary Resolution shall be necessary.

Section
7.12           Powers
Cumulative.

     Any one or more of the powers or
any combination of the powers in this Indenture stated to be exercisable by the
Registered Warrantholders by Extraordinary Resolution or otherwise may be
exercised from time to time and the exercise of any one or more of such powers
or any combination of powers from time to time shall not be deemed to exhaust
the right of the Registered Warrantholders to exercise such power or powers or
combination of powers then or thereafter from time to time.

Section
7.13          
Minutes.

     Minutes of all resolutions and
proceedings at every meeting of Registered Warrantholders shall be made and duly
entered in books to be provided from time to time for that purpose by the
Warrant Agent at the expense of the Corporation, and any such minutes as
aforesaid, if signed by the chairman or the secretary of the meeting at which
such resolutions were passed or proceedings had shall be prima facie evidence of
the matters therein stated and, until the contrary is proved, every such meeting
in respect of the proceedings of which minutes shall have been made shall be
deemed to have been duly convened and held, and all resolutions passed thereat
or proceedings taken shall be deemed to have been duly passed and taken.

Section
7.14           Instruments in
Writing.

     All actions which may be taken
and all powers that may be exercised by the Registered Warrantholders at a
meeting held as provided in this Article 7 may also be taken and exercised by
Registered Warrantholders holding at least 662/3% of the aggregate number of
Warrants then outstanding by an instrument in writing signed in one or more
counterparts by such Registered Warrantholders in person or by attorney duly
appointed in writing, and the expression “Extraordinary Resolution” when
used in this Indenture shall include an instrument so signed.

Section
7.15           Binding Effect
of Resolutions.

     Every resolution and every
Extraordinary Resolution passed in accordance with the provisions of this
Article 7 at a meeting of Registered Warrantholders shall be binding upon all
the Warrantholders, whether present at or absent from such meeting, and every
instrument in writing signed by Registered Warrantholders in accordance with
Section 7.14 shall be binding upon all the Warrantholders, whether signatories
thereto or not, and each and every Warrantholder and the Warrant Agent (subject
to the provisions for indemnity herein contained) shall be bound to give effect
accordingly to every such resolution and instrument in writing.

- 35 -

Section
7.16           Holdings by
Corporation Disregarded.

     In determining whether Registered
Warrantholders holding Warrants evidencing the required number of Warrants are
present at a meeting of Registered Warrantholders for the purpose of determining
a quorum or have concurred in any consent, waiver, Extraordinary Resolution,
Warrantholders’ Request or other action under this Indenture, Warrants owned
legally or beneficially by the Corporation shall be disregarded in accordance
with the provisions of Section 10.7.

ARTICLE 8
SUPPLEMENTAL INDENTURES

Section
8.1           Provision for
Supplemental Indentures for Certain Purposes.

     From time to time, the
Corporation (when authorized by action of the directors) and the Warrant Agent
may, subject to the provisions hereof and they shall, when so directed in
accordance with the provisions hereof, execute and deliver by their proper
officers, indentures or instruments supplemental hereto, which thereafter shall
form part hereof, for any one or more or all of the following purposes:

	(a) 	
      setting forth any adjustments resulting from the
      application of the provisions of Article 4;

	 	 
	(b) 	
      adding to the provisions hereof such additional covenants
      and enforcement provisions as, in the opinion of Counsel, are necessary or
      advisable in the premises, provided that the same are not in the opinion
      of the Warrant Agent, relying on the advice of Counsel, prejudicial to the
      interests of the Registered Warrantholders;

	 	 
	(c) 	
      giving effect to any Extraordinary Resolution passed as
      provided in 7.11;

	 	 
	(d) 	
      making such provisions not inconsistent with this
      Indenture as may be necessary or desirable with respect to matters or
      questions arising hereunder or for the purpose of obtaining a listing or
      quotation of the Warrants on any stock exchange, provided that such
      provisions are not, in the opinion of the Warrant Agent, relying on the
      advice of Counsel, prejudicial to the interests of the Registered
      Warrantholders;

	 	 
	(e) 	
      adding to or altering the provisions hereof in respect of
      the transfer of Warrants, making provision for the exchange of Warrants,
      and making any modification in the form of the Warrant Certificates which
      does not affect the substance thereof;

	 	 
	(f) 	
      modifying any of the provisions of this Indenture,
      including relieving the Corporation from any of the obligations,
      conditions or restrictions herein contained, provided that such
      modification or relief shall be or become operative or effective only if,
      in the opinion of the Warrant Agent, relying on the advice of Counsel,
      such modification or relief in no way prejudices any of the rights of the
      Registered Warrantholders or of the Warrant Agent, and provided further
      that the Warrant Agent may in its sole discretion decline to enter into
      any such supplemental indenture which in its
opinion may not afford adequate protection to the Warrant Agent
  when the same shall become operative; and

- 36 -

	(g) 	
      for any other purpose not inconsistent with the terms of
      this Indenture, including the correction or rectification of any
      ambiguities, defective or inconsistent provisions, errors, mistakes or
      omissions herein, provided that in the opinion of the Warrant Agent,
      relying on the advice of Counsel, the rights of the Warrant Agent and of
      the Registered Warrantholders are in no way prejudiced
  thereby.

Section
8.2           Successor
Entities. 

     In the case of the consolidation,
amalgamation, arrangement, merger or transfer of the undertaking or assets of
the Corporation as an entirety or substantially as an entirety to or with
another entity (“successor entity”), the successor entity resulting from
such consolidation, amalgamation, arrangement, merger or transfer (if not the
Corporation) shall expressly assume, by supplemental indenture satisfactory in
form to the Warrant Agent and executed and delivered to the Warrant Agent, the
due and punctual performance and observance of each and every covenant and
condition of this Indenture to be performed and observed by the Corporation.

ARTICLE 9
CONCERNING THE WARRANT AGENT

Section
9.1           Indenture
Legislation.

	(1) 	
      If and to the extent that any provision of this Indenture
      limits, qualifies or conflicts with a mandatory requirement of Applicable
      Legislation, such mandatory requirement shall prevail.

	 	 
	(2) 	
      The Corporation and the Warrant Agent agree that each
      will, at all times in relation to this Indenture and any action to be
      taken hereunder, observe and comply with and be entitled to the benefits
      of Applicable Legislation.

Section
9.2           Rights and
Duties of Warrant Agent.

	(1) 	
      In the exercise of the rights and duties prescribed or
      conferred by the terms of this Indenture, the Warrant Agent shall exercise
      that degree of care, diligence and skill that a reasonably prudent warrant
      agent would exercise in comparable circumstances. No provision of this
      Indenture shall be construed to relieve the Warrant Agent from liability
      for its own gross negligent action, wilful misconduct, bad faith or fraud
      under this Indenture.

	 	 
	(2) 	
      The obligation of the Warrant Agent to commence or
      continue any act, action or proceeding for the purpose of enforcing any
      rights of the Warrant Agent or the Registered Warrantholders hereunder
      shall be conditional upon the Registered Warrantholders furnishing, when
      required by notice by the Warrant Agent, sufficient funds to commence or
      to continue such act, action or proceeding and an
  indemnity reasonably satisfactory to the Warrant Agent to protect
      and to hold harmless the Warrant Agent and its officers, directors,
      employees and agents, against the costs, charges and expenses and
      liabilities to be incurred thereby and any loss and damage it may suffer
      by reason thereof. None of the provisions contained in this Indenture
      shall require the Warrant Agent to expend or to risk its own funds or
      otherwise to incur financial liability in the performance of any of its
      duties or in the exercise of any of its rights or powers unless
  indemnified and funded as aforesaid.

- 37 -

	(3) 	
      The Warrant Agent may, before commencing or at any time
      during the continuance of any such act, action or proceeding, require the
      Registered Warrantholders, at whose instance it is acting to deposit with
      the Warrant Agent the Warrants Certificates held by them, for which
      Warrant Certificates the Warrant Agent shall issue receipts.

	 	 
	(4) 	
      Every provision of this Indenture that by its terms
      relieves the Warrant Agent of liability or entitles it to rely upon any
      evidence submitted to it is subject to the provisions of Applicable
      Legislation.

Section
9.3           Evidence,
Experts and Advisers.

	(1) 	
      In addition to the reports, certificates, opinions and
      other evidence required by this Indenture, the Corporation shall furnish
      to the Warrant Agent such additional evidence of compliance with any
      provision hereof, and in such form, as may be prescribed by Applicable
      Legislation or as the Warrant Agent may reasonably require by written
      notice to the Corporation.

	 	 
	(2) 	
      In the exercise of its rights and duties hereunder, the
      Warrant Agent may, if it is acting in good faith, rely as to the truth of
      the statements and the accuracy of the opinions expressed in statutory
      declarations, opinions, reports, written requests, consents, or orders of
      the Corporation, certificates of the Corporation or other evidence
      furnished to the Warrant Agent pursuant to a request of the Warrant Agent,
      provided that such evidence complies with Applicable Legislation and that
      the Warrant Agent complies with Applicable Legislation and that the
      Warrant Agent examines the same and determines that such evidence complies
      with the applicable requirements of this Indenture.

	 	 
	(3) 	
      Whenever it is provided in this Indenture or under
      Applicable Legislation that the Corporation shall deposit with the Warrant
      Agent resolutions, certificates, reports, opinions, requests, orders or
      other documents, it is intended that the truth, accuracy and good faith on
      the effective date thereof and the facts and opinions stated in all such
      documents so deposited shall, in each and every such case, be conditions
      precedent to the right of the Corporation to have the Warrant Agent take
      the action to be based thereon.

	 	 
	(4) 	
      The Warrant Agent may employ or retain such Counsel,
      accountants, appraisers or other experts or advisers as it may reasonably
      require for the purpose of discharging its duties hereunder and may pay
      reasonable remuneration for all services so performed by any of them,
      without taxation of costs of any Counsel, and shall not
  be responsible for any misconduct or negligence on the part
      of any such Counsel, experts or advisers who have been appointed with due
  care by the Warrant Agent.

- 38 -

	(5) 	
      The Warrant Agent may act and rely and shall be protected
      in acting and relying in good faith on the opinion or advice of or
      information obtained from any Counsel, accountant, appraiser, engineer or
      other expert or adviser, whether retained or employed by the Corporation
      or by the Warrant Agent, in relation to any matter arising in the
      administration of the agency hereof.

	 	 
	(6) 	
      Whenever Applicable Legislation requires that evidence
      referred to in Subsection 9.3(1) be in the form of a statutory
      declaration, the Warrant Agent may accept such statutory declaration in
      lieu of a certificate of the Corporation required by any provision hereof.
      Any such statutory declaration may be made by one or more of the Chairman
      of the Board and Chief Executive Officer, President and Chief Financial
      Officer of the Corporation.

	 	 
	(7) 	
      Proof of the execution of an instrument in writing,
      including a Warrantholders' Request, by any Warrantholder may be made by
      the certificate of a notary, solicitor or commissioner for oaths, or other
      officer with similar powers, that the person signing such instrument
      acknowledged to him the execution thereof, or by an affidavit of a witness
      to such execution or in any other manner which the Warrant Agent may
      consider adequate and in respect of a corporate Warrantholder, shall
      include a certificate of incumbency of such Warrantholder together with a
      certified resolution authorizing the person who signs such instrument to
      sign such instrument

Section
9.4           Documents,
Monies, etc. Held by Warrant Agent.

     Any monies, securities, documents
of title or other instruments that may at any time be held by the Warrant Agent
may be placed in the deposit vaults of the Warrant Agent or of any Canadian
chartered bank listed in Schedule I of the Bank Act (Canada), or
deposited for safekeeping with any such bank in a non-interest bearing
account.

Section
9.5           Actions by
Warrant Agent to Protect Interest.

     The Warrant Agent shall have
power to institute and to maintain such actions and proceedings as it may
consider necessary or expedient to preserve, protect or enforce its interests
and the interests of the Registered Warrantholders.

Section
9.6           Warrant Agent
Not Required to Give Security.

     The Warrant Agent shall not be
required to give any bond or security in respect of the execution of the agency
and powers of this Indenture or otherwise in respect of the premises.

Section
9.7           Protection of
Warrant Agent.

     By way of supplement to the
provisions of any law for the time being relating to warrant agents it is
expressly declared and agreed as follows:

- 39 -

	 	(a) 	
      the Warrant Agent shall not be liable for or by reason of
      any statements of fact or recitals in this Indenture or in the Warrant
      Certificates (except the representation contained in Section 9.9 or in the
      certificate of the Warrant Agent on the Warrant Certificates) or be
      required to verify the same, but all such statements or recitals are and
      shall be deemed to be made by the Corporation;

	 	 	 
	 	(b) 	
      nothing herein contained shall impose any obligation on
      the Warrant Agent to see to or to require evidence of the registration or
      filing (or renewal thereof) of this Indenture or any instrument ancillary
      or supplemental hereto;

	 	 	 
	 	(c) 	
      the Warrant Agent shall not be bound to give notice to
      any person or persons of the execution hereof;

	 	 	 
	 	(d) 	
      the Warrant Agent shall not incur any liability or
      responsibility whatever or be in any way responsible for the consequence
      of any breach on the part of the Corporation of any of its covenants
      herein contained or of any acts of any directors, officers, employees,
      agents or servants of the Corporation; and

	 	 	 
	 	(e) 	
      the Corporation hereby indemnifies and agrees to hold
      harmless the Warrant Agent, its affiliates, their officers, directors,
      employees, agents, successors and assigns from and against any and all
      liabilities, losses, damages, penalties, claims, actions, suits, costs,
      expenses and disbursements, including reasonable legal fees and
      disbursements of whatever kind and nature which may at any time be imposed
      on or incurred by or asserted against the Warrant Agent, whether
      groundless or otherwise, arising from or out of any act, omission or error
      of the Warrant Agent, provided that the Corporation shall not be required
      to indemnify the Warrant Agent in the event of the gross negligence or
      wilful misconduct of the Warrant Agent, and this provision shall survive
      the resignation or removal of the Warrant Agent or the termination or
      discharge of this Indenture.

	 	 	 
	 	(f) 	
      notwithstanding the foregoing or any other provision of
      this Indenture, any liability of the Warrant Agent shall be limited, in
      the aggregate, to the amount of annual retainer fees paid by the
      Corporation to the Warrant Agent under this Indenture in the twelve (12)
      months immediately prior to the Warrant Agent receiving the first notice
      of the claim. Notwithstanding any other provision of this Indenture, and
      whether such losses or damages are foreseeable or unforeseeable, the
      Warrant Agent shall not be liable under any circumstances whatsoever for
      any (a) breach by any other party of securities law or other rule of any
      securities regulatory authority, (b) lost profits or (c) special,
      indirect, incidental, consequential, exemplary, aggravated or punitive
      losses or damages.

	 	 	 
	 	(g) 	
      in the event that any of the funds provided to the
      Warrant Agent hereunder are received by it in the form of an uncertified
      cheque or bank draft, the Warrant Agent shall be entitled to delay the
      time for release of such funds and the Common Shares to which it relates until such uncertified
      cheque has cleared the financial institution upon which the same is
    drawn.

- 40 -

	 	(h) 	
      the forwarding of a cheque or the sending of funds by
      wire transfer by the Warrant Agent will satisfy and discharge the
      liability of any amounts due to the extent of the sum represented thereby
      unless such cheque is not honoured on presentation, provided that in the
      event of the non-receipt of such cheque by the payee, or the loss or
      destruction thereof, the Warrant Agent, upon being furnished with
      reasonable evidence of such non-receipt, loss or destruction and indemnity
      reasonably satisfactory to it, will issue to such payee a replacement
      cheque for the amount of such cheque.

Section
9.8           Replacement of
Warrant Agent; Successor by Merger.

	(1) 	
      The Warrant Agent may resign its agency and be discharged
      from all further duties and liabilities hereunder, subject to this Section
      9.8, by giving to the Corporation not less than 60 days’ prior notice in
      writing or such shorter prior notice as the Corporation may accept as
      sufficient. The Registered Warrantholders by Extraordinary Resolution
      shall have power at any time to remove the existing Warrant Agent and to
      appoint a new Warrant Agent. In the event of the Warrant Agent resigning
      or being removed as aforesaid or being dissolved, becoming bankrupt, going
      into liquidation or otherwise becoming incapable of acting hereunder, the
      Corporation shall forthwith appoint a new Warrant Agent unless a new
      Warrant Agent has already been appointed by the Registered Warrantholders;
      failing such appointment by the Corporation, the retiring Warrant Agent or
      any Registered Warrantholder may apply to a judge of the Ontario Superior
      Court of Justice of the Province of Ontario on such notice as such judge
      may direct, for the appointment of a new Warrant Agent; but any new
      Warrant Agent so appointed by the Corporation or by the Court shall be
      subject to removal as aforesaid by the Registered Warrantholders. Any new
      Warrant Agent appointed under any provision of this Section 9.8 shall be
      an entity authorized to carry on the business of a trust company in the
      Province of Ontario and, if required by the Applicable Legislation for any
      other provinces, in such other provinces. On any such appointment the new
      warrant agent shall be vested with the same powers, rights, duties and
      responsibilities as if it had been originally named herein as Warrant
      Agent hereunder.

	 	 
	(2) 	
      Upon the appointment of a successor Warrant Agent, the
      Corporation shall promptly notify the Registered Warrantholders thereof in
      the manner provided for in Section 10.2.

	 	 
	(3) 	
      Any Warrant Certificates Authenticated but not delivered
      by a predecessor Warrant Agent may be Authenticated by the successor
      Warrant Agent in the name of the predecessor or successor Warrant
      Agent.

	 	 
	(4) 	
      Any corporation in to which the Warrant Agent may be
      merged or consolidated or amalgamated, or any corporation resulting
      therefrom to which the Warrant Agent shall be a party, or any corporation
succeeding to substantially the corporate trust business of the Warrant Agent
shall be the successor to the Warrant Agent hereunder without any further
act on its part or any of the parties hereto, provided that such corporation
would be eligible for appointment as successor Warrant Agent under Section
9.8(1) .

  

- 41 -

Section
9.9           Conflict of
Interest.

	(1) 	
      The Warrant Agent represents to the Corporation that at
      the time of execution and delivery hereof no material conflict of interest
      exists between its role as a warrant agent hereunder and its role in any
      other capacity and agrees that in the event of a material conflict of
      interest arising hereafter it will, within 90 days after ascertaining that
      it has such material conflict of interest, either eliminate the same or
      assign its agency hereunder to a successor Warrant Agent approved by the
      Corporation and meeting the requirements set forth in Section 9.8(1).
      Notwithstanding the foregoing provisions of this Section 9.9(1), if any
      such material conflict of interest exists or hereafter shall exist, the
      validity and enforceability of this Indenture and the Warrant Certificate
      shall not be affected in any manner whatsoever by reason
thereof.

	 	 
	(2) 	
      Subject to Section 9.9(1), the Warrant Agent, in its
      personal or any other capacity, may buy, lend upon and deal in securities
      of the Corporation and generally may contract and enter into financial
      transactions with the Corporation without being liable to account for any
      profit made thereby.

Section
9.10           Acceptance of
Agency

     The Warrant Agent hereby accepts
the agency in this Indenture declared and provided for and agrees to perform the
same upon the terms and conditions herein set forth.

Section
9.11           Warrant Agent
Not to be Appointed Receiver.

     The Warrant Agent and any person
related to the Warrant Agent shall not be appointed a receiver, a receiver and
manager or liquidator of all or any part of the assets or undertaking of the
Corporation.

Section
9.12           Warrant Agent
Not Required to Give Notice of Default.

     The Warrant Agent shall not be
bound to give any notice or do or take any act, action or proceeding by virtue
of the powers conferred on it hereby unless and until it shall have been
required so to do under the terms hereof; nor shall the Warrant Agent be
required to take notice of any default hereunder, unless and until notified in
writing of such default, which notice shall distinctly specify the default
desired to be brought to the attention of the Warrant Agent and in the absence
of any such notice the Warrant Agent may for all purposes of this Indenture
conclusively assume that no default has been made in the observance or
performance of any of the representations, warranties, covenants, agreements or
conditions contained herein. Any such notice shall in no way limit any
discretion herein given to the Warrant Agent to determine whether or not the
Warrant Agent shall take action with respect to any default.

- 42 -

Section
9.13           Anti-Money
Laundering.

	(1) 	
      Each party to this Agreement other than the Warrant Agent
      hereby represents to the Warrant Agent that any account to be opened by,
      or interest to be held by the Warrant Agent in connection with this
      Agreement, for or to the credit of such party, either (i) is not intended
      to be used by or on behalf of any third party; or (ii) is intended to be
      used by or on behalf of a third party, in which case such party hereto
      agrees to complete and execute forthwith a declaration in the Warrant
      Agent’s prescribed form as to the particulars of such third
  party.

	 	 
	(2) 	
      The Warrant Agent shall retain the right not to act and
      shall not be liable for refusing to act if, due to a lack of information
      or for any other reason whatsoever, the Warrant Agent, in its sole
      judgment, determines that such act might cause it to be in non- compliance
      with any applicable anti-money laundering or anti-terrorist legislation,
      regulation or guideline. Further, should the Warrant Agent, in its sole
      judgment, determine at any time that its acting under this Indenture has
      resulted in its being in non-compliance with any applicable anti-money
      laundering or anti-terrorist legislation, regulation or guideline, then it
      shall have the right to resign on 10 days written notice to the other
      parties to this Indenture, provided (i) that the Warrant Agent’s written
      notice shall describe the circumstances of such non-compliance; (ii) that
      if such circumstances are rectified to the Warrant Agent’s satisfaction
      within such 10 day period, then such resignation shall not be
      effective.

Section
9.14           Compliance with
Privacy Code.

     The Corporation acknowledges that
the Warrant Agent may, in the course of providing services hereunder, collect or
receive financial and other personal information about such parties and/or their
representatives, as individuals, or about other individuals related to the
subject matter hereof, and use such information for the following purposes:

	 	(a) 	
      to provide the services required under this Indenture and
      other services that may be requested from time to time;

	 	 	 
	 	(b) 	
      to help the Warrant Agent manage its servicing
      relationships with such individuals;

	 	 	 
	 	(c) 	
      to meet the Warrant Agent’s legal and regulatory
      requirements; and

	 	 	 
	 	(d) 	
      if Social Insurance Numbers are collected by the Warrant
      Agent, to perform tax reporting and to assist in verification of an
      individual’s identity for security purposes.

     The Corporation acknowledges and
agrees that the Warrant Agent may receive, collect, use and disclose personal
information provided to it or acquired by it in the course of its acting as
agent hereunder for the purposes described above and, generally, in the manner
and on the terms described in its Privacy Code, which the Warrant Agent shall
make available on its website or upon request, including revisions thereto.
Further, the Corporation agrees that it shall not provide or cause to be
provided to the Warrant Agent any personal information relating to an individual who is not a party to
this Indenture unless the Corporation has assured itself that such individual
understands and has consented to the aforementioned uses and disclosures.

- 43 -

ARTICLE 10
GENERAL

Section
10.1           Notice to the
Corporation and the Warrant Agent.

	(1) 	
      Unless herein otherwise expressly provided, any notice to
      be given hereunder to the Corporation or the Warrant Agent shall be deemed
      to be validly given if delivered, sent by registered letter, postage
      prepaid or telecopied:

	 	(a) 	
      If to the Corporation:

	 	 	 
	 		
      Manas Petroleum Corporation
 Bahnhofstrasse 9,
      Postfach 155 
CH-6341 Baar 
Switzerland

	 	 	 
	 		
      Attention: President

	 	 	 
	 		
      Telecopy: 011 41 44 718 10 30

	 	 	 
	 	(b) 	
      If to the Warrant Agent:

	 	 	 
	 		
      Equity Financial Trust Company 
200 University Avenue,
      Suite 400 
Toronto, Ontario M5H 4H1

	 	 	 
	 		
      Attention: Manager, Corporate Trust Services

	 	 	 
	 		
      Telecopy: (416) 361-0470

		
      and any such notice delivered in accordance with the
      foregoing shall be deemed to have been received and given on the date of
      delivery or, if mailed, on the fifth Business Day following the date of
      mailing such notice or, if telecopied, on the next Business Day following
      the date of transmission.

	 	 
	(2) 	
      The Corporation or the Warrant Agent, as the case may be,
      may from time to time notify the other in the manner provided in Section
      10.1(1) of a change of address which, from the effective date of such
      notice and until changed by like notice, shall be the address of the
      Corporation or the Warrant Agent, as the case may be, for all purposes of
      this Indenture.

	 	 
	(3) 	
      If, by reason of a strike, lockout or other work
      stoppage, actual or threatened, involving postal employees, any notice to
      be given to the Warrant Agent or to the Corporation hereunder could reasonably
be considered unlikely to reach its destination, such notice shall be valid and
effective only if it is delivered to the named officer of the party to which it
is addressed, as provided in Section 10.1(1), or given by telecopy or other
means of prepaid, transmitted and recorded communication.

- 44 -

Section
10.2           Notice to
Registered Warrantholders.

	(1) 	
      Unless otherwise provided herein, notice to the
      Registered Warrantholders under the provisions of this Indenture shall be
      valid and effective if delivered or sent by ordinary post addressed to
      such holders at their post office addresses appearing on the register
      hereinbefore mentioned and shall be deemed to have been effectively
      received and given on the date of delivery or, if mailed, on the third
      Business Day following the date of mailing such notice. In the event that
      Warrants are held in the name of the Depository, a copy of such notice
      shall also be sent by electronic communication to the Depository and shall
      be deemed received and given on the day it is so sent.

	 	 
	(2) 	
      If, by reason of a strike, lockout or other work
      stoppage, actual or threatened, involving postal employees, any notice to
      be given to the Registered Warrantholders hereunder could reasonably be
      considered unlikely to reach its destination, such notice shall be valid
      and effective only if it is delivered to such Registered Warrantholders to
      the address for such Registered Warrantholders contained in the register
      maintained by the Warrant Agent or such notice may be given, at the
      Corporation’s expense, by means of publication in the Globe and Mail,
      National Edition, or any other English language daily newspaper or
      newspapers of general circulation in Canada, in each two successive weeks,
      and any so notice published shall be deemed to have been received and
      given on the latest date the publication takes
place.

Section
10.3           Ownership of
Warrants.

     The Corporation and the Warrant
Agent may deem and treat the Registered Warrantholders as the absolute owner
thereof for all purposes, and the Corporation and the Warrant Agent shall not be
affected by any notice or knowledge to the contrary except where the Corporation
or the Warrant Agent is required to take notice by statute or by order of a
court of competent jurisdiction. The receipt of any such Registered
Warrantholder of the Common Shares which may be acquired pursuant thereto shall
be a good discharge to the Corporation and the Warrant Agent for the same and
neither the Corporation nor the Warrant Agent shall be bound to inquire into the
title of any such holder except where the Corporation or the Warrant Agent is
required to take notice by statute or by order of a court of competent
jurisdiction.

Section
10.4          
Counterparts.

     This Indenture may be executed in
several counterparts, each of which when so executed shall be deemed to be an
original and such counterparts together shall constitute one and the same instrument and notwithstanding their date of
execution they shall be deemed to be dated as of the date hereof.

- 45 -

Section
10.5           Satisfaction
and Discharge of Indenture.

Upon the earlier of:

	 	(a) 	
      the date by which there shall have been delivered to the
      Warrant Agent for exercise or cancellation all Warrants theretofore
      Authenticated hereunder, in the case of Certificated Warrants (or such
      other instructions, in a form satisfactory to the Warrant Agent), in the
      case of Uncertificated Warrants, or by way of standard processing through
      the book entry only system in the case of a CDS Global Warrant;
  or

	 	 	 
	 	(b) 	
      the Expiry Time;

and if all certificates or other entry on the register
representing Common Shares required to be issued in compliance with the
provisions hereof have been issued and delivered hereunder or to the Warrant
Agent in accordance with such provisions, this Indenture shall cease to be of
further effect. Notwithstanding the foregoing, the indemnities provided to the
Warrant Agent by the Corporation hereunder shall remain in full force and effect
and survive the termination of this Indenture.

Section
10.6           Provisions of
Indenture and Warrants for the Sole Benefit of Parties and Registered
Warrantholders.

     Nothing in this Indenture or in
the Warrants, expressed or implied, shall give or be construed to give to any
person other than the parties hereto and the Registered Warrantholders, as the
case may be, any legal or equitable right, remedy or claim under this Indenture,
or under any covenant or provision herein or therein contained, all such
covenants and provisions being for the sole benefit of the parties hereto and
the Registered Warrantholders.

Section
10.7           Common Shares
or Warrants Owned by the Corporation or its Subsidiaries - Certificate to be
Provided.

     For the purpose of disregarding
any Warrants owned legally or beneficially by the Corporation in Section 7.16,
the Corporation shall provide to the Warrant Agent, from time to time, a
certificate of the Corporation setting forth as at the date of such
certificate:

	 	(a) 	
      the names (other than the name of the Corporation) of the
      Registered Warrantholders which, to the knowledge of the Corporation, are
      owned by or held for the account of the Corporation; and

	 	 	 
	 	(b) 	
      the number of Warrants owned legally or beneficially by
      the Corporation;

     and the Warrant Agent, in making
the computations in Section 7.16, shall be entitled to rely on such certificate
without any additional evidence.

- 46 -

Section
10.8          
Severability

     If, in any jurisdiction, any
provision of this Indenture or its application to any party or circumstance is
restricted, prohibited or unenforceable, such provision will, as to such
jurisdiction, be ineffective only to the extent of such restriction, prohibition
or unenforceability without invalidating the remaining provisions of this
Indenture and without affecting the validity or enforceability of such provision
in any other jurisdiction or without affecting its application to other parties
or circumstances.

Section
10.9           Force
Majeure

     No party shall be liable to the
other, or held in breach of this Indenture, if prevented, hindered, or delayed
in the performance or observance of any provision contained herein by reason of
act of God, riots, terrorism, acts of war, epidemics, governmental action or
judicial order, earthquakes, or any other similar causes (including, but not
limited to, mechanical, electronic or communication interruptions, disruptions
or failures). Performance times under this Indenture shall be extended for a
period of time equivalent to the time lost because of any delay that is
excusable under this Section. 

Section
10.10           Assignment,
Successors and Assigns 

     Neither of the parties hereto may
assign its rights or interest under this Indenture, except as provided in
Section 9.8 in the case of the Warrant Agent, or as provided in Section 8.2 in
the case of the Corporation. Subject thereto, this Indenture shall enure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. 

Section
10.11           Rights of
Rescission and Withdrawal for Holders 

     Should a holder of Warrants
exercise any legal, statutory, contractual or other right of withdrawal or
rescission that may be available to it, and the holder’s funds which were paid
on exercise have already been released to the Corporation by the Warrant Agent,
the Warrant Agent shall not be responsible for ensuring the exercise is
cancelled and a refund is paid back to the holder. In such cases, the holder
shall seek a refund directly from the Corporation and subsequently, the
Corporation, upon surrender to the Corporation or the Warrant Agent of any
underlying shares that may have been issued, or such other procedure as agreed
to by the parties hereto, shall instruct the Warrant Agent in writing, to cancel
the exercise transaction and any such underlying shares on the register, which
may have already been issued upon the Warrant exercise. In the event that any
payment is received from the Corporation by virtue of the holder being a
shareholder for such Warrants that were subsequently rescinded, such payment
must be returned to the Corporation by such holder. The Warrant Agent shall not
be under any duty or obligation to take any steps to ensure or enforce that the
funds are returned pursuant to this section, nor shall the Warrant Agent be in
any other way responsible in the event that any payment is not delivered or
received pursuant to this section.

- 47 -

IN WITNESS WHEREOF the parties hereto have executed this
Indenture under the hands of their proper officers in that behalf as of the date
first written above.

	 	MANAS PETROLEUM
      CORPORATION 
	 	 	  
	 	 	  
	 	By: 	
	 	 	Name: 
	 	 	Title: 
	 	 	  
	 	By: 	
	 	 	Name: 
	 	 	Title: 
	 	 	  
	 	 	  
	 	EQUITY FINANCIAL
      TRUST COMPANY 
	 	 	  
	 	By: 	
	 	 	Name: 
	 	 	Authorized Signatory 
	 	 	  
	 	By: 	
	 	 	Name: 
	 	 	Authorized Signatory 

A-1

SCHEDULE “A”

FORM OF WARRANT

THE WARRANTS EVIDENCED HEREBY ARE EXERCISABLE AT OR BEFORE 4:30
P.M. (LOCAL TIME) ON <>, 2014 AFTER WHICH TIME THE WARRANTS EVIDENCED
HEREBY SHALL BE DEEMED TO BE VOID AND OF NO FURTHER FORCE OR EFFECT.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO MANAS
PETROLEUM CORPORATION (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED
IN THE NAME OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY
INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A
VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS
CERTIFICATE.

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE
UPON EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER ANY STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR
THE BENEFIT OF THE CORPORATION THAT THESE SECURITIES MAY BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS. DELIVERY OF THIS CERTIFICATE MAY NOT
CONSTITUTE “GOOD DELIVERY” IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN
CANADA.

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES LAWS OF ANY STATE
OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR
BY OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON OR ANY OTHER PERSON WITHIN THE
UNITED STATES. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S
UNDER THE U.S. SECURITIES ACT.

A-2

WARRANT

To acquire Common Shares of

MANAS PETROLEUM CORPORATION

(incorporated pursuant to the laws of the State of Nevada)

	Warrant 	Certificate for
      _________________________________
	Certificate No. 	Warrants, each entitling the holder to acquire
    
	  	one (1) Common Share 
	  	  
	  	CUSIP <> 
	  	  
	  	ISIN CA <> 

	THIS IS TO CERTIFY THAT, for value received, 
	 

(the “Warrantholder”) is the registered holder of the
number of common share purchase warrants (the “Warrants”) of Manas
Petroleum Corporation (the “Corporation”) specified above, and is
entitled, on exercise of these Warrants upon and subject to the terms and
conditions set forth herein and in the Warrant Indenture hereinafter referred
to, to purchase at any time before 4:30 p.m. (Toronto time) (the “Expiry
Time”) on <>, 2014 (the “Expiry Date”) one fully paid and
non-assessable common share without par value in the capital of the Corporation
as constituted on the date hereof (a “Common Share”) for each
Warrant.

The right to purchase Common Shares may only be exercised by
the holder within the time set forth above by:

	(a) 	
      duly completing and executing the exercise form (the
      “Exercise Form”) attached hereto; and

	 	 
	(b) 	
      surrendering this warrant certificate (the “Warrant
      Certificate”), with the Exercise Form to the Warrant Agent at the
      principal office of the Warrant Agent, in the city of Toronto, or such
      other place as may be designated by the Warrant Agent in accordance with
      the Warrant Indenture, together with a certified cheque, bank draft or
      money order in the lawful money of Canada payable to or to the order of
      the Corporation in an amount equal to the purchase price of the Common
      Shares so subscribed for.

The surrender of this Warrant Certificate, the duly completed
Exercise Form and payment as provided above will be deemed to have been effected
only on personal delivery thereof to, or if sent by mail or other means of transmission on actual receipt
thereof by, the Warrant Agent at its principal office as set out above. 

A-3

Subject to adjustment thereof in the events and in the manner
set forth in the Warrant Indenture hereinafter referred to, the exercise price
payable for each Common Share upon the exercise of Warrants shall be U.S.$0.70
per Common Share.

Certificates for the Common Shares subscribed for will be
mailed to the persons specified in the Exercise Form at their respective
addresses specified therein or, if so specified in the Exercise Form, delivered
to such persons at the office where this Warrant Certificate is surrendered. If
fewer Common Shares are purchased than the number that can be purchased pursuant
to this Warrant Certificate, the holder hereof will be entitled to receive
without charge a new Warrant Certificate in respect of the balance of the Common
Shares not so purchased. No fractional Common Shares will be issued upon
exercise of any Warrant.

This Warrant Certificate evidences Warrants of the Corporation
issued or issuable under the provisions of a warrant indenture (which indenture
together with all other instruments supplemental or ancillary thereto is herein
referred to as the “Warrant Indenture”) dated as of <>, 2011
between the Corporation and Equity Financial Trust Company as warrant agent, to
which Warrant Indenture reference is hereby made for particulars of the rights
of the holders of Warrants, the Corporation and the Warrant Agent in respect
thereof and the terms and conditions on which the Warrants are issued and held,
all to the same effect as if the provisions of the Warrant Indenture were herein
set forth, to all of which the holder, by acceptance hereof, assents. The
Corporation will furnish to the holder, on request and without charge, a copy of
the Warrant Indenture.

On presentation at the principal office of the Warrant Agent as
set out above, subject to the provisions of the Warrant Indenture and on
compliance with the reasonable requirements of the Warrant Agent, one or more
Warrant Certificates may be exchanged for one or more Warrant Certificates equal
to the number of Warrants represented by the Warrant Certificate(s) so
exchanged.

No exercise of any Warrants shall be effective and the
Corporation shall not recognize any attempted exercise of a warrant and no
certificate representing Common Shares shall be issued or registered pursuant to
the attempted exercise of Warrants, unless the Warantholder certifies that: (i)
it is not a U.S. Warrantholder; (ii) at the time of exercise of the Warrants it
is not exercising the Warrants for the account or benefit of a U.S. Person or
any other person in the United States; (iii) it did not execute or deliver the
exercise form for the Warrants in the United States; and (iv) delivery of the
Common Shares to be issued upon exercise of the Warrants is not an address in
the United States.

Notwithstanding anything herein contained, Common Shares will
be issued upon the exercise of a Warrant only in compliance with the securities
laws of any applicable jurisdiction, including without limitation the United
States, its commonwealths, territories and possessions, the states of the United
States and the District of Columbia.

A-4

The Warrants represented by this Warrant Certificate and the
Common Shares deliverable upon exercise thereof have not been and will not be
registered under the securities laws of any state of the United States. This
Warrant may not be exercised in the United States or by, or for the account or
benefit of, a person in the United States or a U.S. person.

The Warrant Indenture contains provisions for the adjustment of
the price payable for each Common Share upon the exercise of Warrants and the
number of Common Shares issuable upon the exercise of Warrants in the events and
in the manner set forth therein.

The Warrant Indenture also contains provisions making binding
on all holders of Warrants outstanding thereunder resolutions passed at meetings
of holders of Warrants held in accordance with the provisions of the Warrant
Indenture and instruments in writing signed by Warrantholders of Warrants
holding a specific majority of the then outstanding Warrants.

Nothing contained in this Warrant Certificate, the Warrant
Indenture or elsewhere shall be construed as conferring upon the holder hereof
any right or interest whatsoever as a holder of Common Shares or any other right
or interest except as herein and in the Warrant Indenture expressly provided. In
the event of any discrepancy between anything contained in this Warrant
Certificate and the terms and conditions of the Warrant Indenture, the terms and
conditions of the Warrant Indenture shall govern.

Warrants may only be transferred in compliance with the
conditions of the Warrant Indenture on the register to be kept by the Warrant
Agent in Toronto, or such other registrar as the Corporation, with the approval
of the Warrant Agent, may appoint at such other place or places, if any, as may
be designated, upon surrender of this Warrant Certificate to the Warrant Agent
or other registrar accompanied by a written instrument of transfer in form and
execution satisfactory to the Warrant Agent or other registrar and upon
compliance with the conditions prescribed in the Warrant Indenture and with such
reasonable requirements as the Warrant Agent or other registrar may prescribe
and upon the transfer being duly noted thereon by the Warrant Agent or other
registrar. Time is of the essence hereof.

This Warrant Certificate will not be valid for any purpose
until it has been countersigned by or on behalf of the Warrant Agent from time
to time under the Warrant Indenture.

The parties hereto have declared that they have required that
these presents and all other documents related hereto be in the English
language. Les parties aux présentes déclarent qu’elles ont exigé que la présente
convention, de même que tous les documents s’y rapportant, soient rédigés en
anglais.

A-5

IN WITNESS WHEREOF the Corporation has caused this
Warrant Certificate to be duly executed as of <>, 2011.

	 	  	 	MANAS PETROLEUM
      CORPORATION 
	 	 	 	 
	 	  	 	 By: 	
	 	  	 	 	Authorized Signatory 
	 	 	 	 	 
	 	  	 	 By: 	
	Countersigned and Registered by:
	 	 	Authorized Signatory 
	EQUITY FINANCIAL TRUST
      COMPANY 	 	 	  
	 	 	 	 
	By: 		 	 	  
	 	Authorized Signatory 	 	 	  
	 	  	 	 	  
	Date: 		 	 	  

A-6

FORM OF TRANSFER 

Manas Petroleum Corporation 

Equity Financial Trust Company

	FOR VALUE RECEIVED the undersigned hereby sells, assigns
      and transfers to 
	 
	 
	
      (print name and address) the Warrants represented by this
      Warrants Certificate and hereby irrevocable constitutes and appoints
      ___________________ as its attorney with full power of substitution to
      transfer the said securities on the appropriate register of the Warrant
      Agent. 

DATED this ____ day of_________________, 20____.

	SPACE FOR GUARANTEES OF 	) 	  
	SIGNATURES (BELOW) 	  	  
	 	) 	 
    
	 	) 	Signature of Transferor 
	 	) 	  
	 	) 	 
    
	Guarantor’s Signature/Stamp 	) 	Name of Transferor 
	 	) 	  

CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ
CAREFULLY

The signature(s) of the transferor(s) must correspond with the
name(s) as written upon the face of this certificate(s), in every particular,
without alteration or enlargement, or any change whatsoever. The signature(s) on
this form must be guaranteed in accordance with the transfer agent’s then
current guidelines and requirements at the time of transfer. Notarized or
witnessed signatures are not acceptable as guaranteed signatures. As at the time
of closing, you may choose one of the following methods (although subject to
change in accordance with industry practice and standards):

	Canada and the USA: A Medallion Signature Guarantee obtained from a
  member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP,
  NYSE MSP). Many commercial banks, savings banks, credit unions, and all broker
  dealers participate in a Medallion Signature Guarantee Program. The Guarantor
  must affix a stamp bearing the actual words “Medallion Guaranteed”,
  with the correct prefix covering the face value of the certificate. 

A-7

	
  Canada: A Signature Guarantee obtained from the Guarantor must affix
  a stamp bearing the actual words “Signature Guaranteed”. Signature
  Guarantees are not accepted from Treasury Branches, Credit Unions or Caisse
  Populaires unless they are members of a Medallion Signature Guarantee Program.
  For corporate holders, corporate signing resolutions, including certificate of
  incumbency, are also required to accompany the transfer, unless there is a
  “Signature & Authority to Sign Guarantee” Stamp affixed to the
  transfer (as opposed to a “Signature Guarantee” Stamp) obtained from an
  authorized officer of a major Canadian Schedule 1 chartered bank. 

  
	
  Outside North America: For holders located outside North America,
  present the certificates(s) and/or document(s) that require a guarantee to a
  local financial institution that has a corresponding Canadian or American
  affiliate which is a member of an acceptable Medallion Signature Guarantee
  Program. The corresponding affiliate will arrange for the signature to be
  over-guaranteed. 

B-1

SCHEDULE “B”

EXERCISE FORM

	TO: 	MANAS PETROLEUM CORPORATION 
	 	 
	AND TO: 	EQUITY FINANCIAL TRUST COMPANY
  

     The undersigned holder of the
Warrants evidenced by this Warrant Certificate hereby exercises the right to
acquire ____________ (A) Common Shares of Manas Petroleum Corporation.

     Exercise Price Payable:
__________________________________________________
                                                      ((A)
multiplied by U.S.$0.70, subject to adjustment) 

The undersigned hereby exercises the right of such holder to be
issued, and hereby subscribes for, Common Shares that are issuable pursuant to
the exercise of such Warrants on the terms specified in such Warrant Certificate
and in the Warrant Indenture.

     The undersigned hereby
acknowledges that the undersigned is aware that the Common Shares received on
exercise may be subject to restrictions on resale under applicable securities
legislation.

     Any capitalized term in this
Warrant Certificate that is not otherwise defined herein, shall have the meaning
ascribed thereto in the Warrant Indenture.

     The undersigned represents,
warrants and certifies that the undersigned holder at the time of exercise of
the Warrants: (i) it is not a U.S. Warrantholder; (ii) at the time of exercise
of the Warrants it is not exercising the Warrants for the account or benefit of
a person in the United States or a U.S. Person; (iii) it did not execute or
deliver the exercise form for the Warrants in the United States; and (iv)
delivery of the Common Shares to be issued upon exercise of the Warrants is not
to an address in the United States.

     It is understood that the
Corporation and Equity Financial Trust Company may require evidence to verify
the foregoing representations. Certificates will not be registered or delivered
to an address in the United States.

     “United States” and
“U.S. Person” are as defined in Rule 902 of Regulation S under the U.S.
Securities Act.

B-2

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

	Name(s) in Full and 
Social Insurance
      
Number(s) 
(if applicable) 	 	Address(es) 

	 	Number of 
Common Shares
      

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

     Please print full name in which
certificates representing the Common Shares are to be issued. If any Common
Shares are to be issued to a person or persons other than the registered holder,
the registered holder must pay to the Warrant Agent all exigible transfer taxes
or other government charges, if any, and the Form of Transfer must be duly
executed.

     Once completed and executed, this
Exercise Form must be mailed or delivered to Equity Financial Trust Company,
Attn: Corporate Actions Department.

DATED this ____day of _____, 20__.

	 	 ) 	 
	 	 ) 	 
	 	 ) 	 
	Witness	) 	 (Signature of Warrantholder, to be the
      same as 
	 	) 	 appears on the face of this Warrant
      Certificate) 
	 	 ) 	 
	 	 ) 	 
	 		 Name of Registered Warrantholder
  

     [    
]     Please check if the certificates representing the
Common Shares are to be delivered at the office where this Warrant Certificate
is surrendered, failing which such certificates will be mailed to the address
set out above. Certificates will be delivered or mailed as soon as practicable
after the surrender of this Warrant Certificate to the Warrant Agent.

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