Document:

Unassociated Document

    SUBSCRIPTION
      FOR FLOW-THROUGH UNITS

    TO:
      APOLLO
      GOLD CORPORATION
      the
      "Company")

     

    The
      undersigned (hereinafter referred to as the "Subscriber") hereby subscribes
      for
      and agrees to purchase from the Company the number of units ("Flow-Through
      Units") of the Company set forth below, each Flow-Through Unit being comprised
      of one common share of the capital stock of the Company ("Flow-Through Share")
      and one-half of one common share purchase warrant of the Company, at a
      subscription price of Cdn$0.45
      per
      Flow-Through Unit. Each whole common share purchase warrant (a "Flow-Through
      Warrant") will entitle the holder thereof to purchase one common share in the
      capital of the Corporation for each Flow-Through Warrant for a period of 24
      months at a price of Cdn$1.00 per share for the first 12 months, and at a price
      of Cdn$1.15 per share for the last 12 months. The Subscriber agrees to be bound
      by the terms and conditions set forth in the attached "Terms and Conditions
      of
      Subscription and Renunciation Agreement for Units of Apollo Gold Corporation"
      and acknowledges that the Corporation and its counsel are relying upon the
      representations, warranties and covenants of the Subscriber set forth therein
      and in the schedules thereto. The Flow-Through Shares and the Flow-Through
      Warrants comprising the Flow-Through Units are "flow-through shares", as that
      term is defined in subsection 66(15) of the Income
      Tax Act (Canada).
      The purchase and sale of the Flow-Through Units hereunder forms part of a larger
      offering of Flow-Through Units (the "Offering") of up to
      $1,000,000.

     

    
      	
                                                            ____________(Name
                of Subscriber - please print)

               

              By:                                                                              _____________

              Authorized
                Signature

               

               

              
                

              

              (Official
                Capacity or Title - please print)

               

              Please
                print name of individual whose signature appears above if 

              different
                than the name of the subscriber printed above.

               

               

              _____________________________________________

               

              (Subscriber's
                Address)                                                                  

               

              (Telephone
                Number)                     (E-mail
                Address)

               
                
                

                (Social Insurance Number)

               

              (Corporate
                Tax Number)

               

            	 	
              Number
                of Flow-Through Units: 

               

            
	 
	
              Aggregate
                Consideration:                                                                          __________________

               

            
	 
	
              If
                the Subscriber is signing as agent for a principal and is not a trust
                Company or a trust company or an insurer or, in Alberta, Ontario
                or
                British Columbia, a portfolio manager, in each case, purchasing as
                trustee
                or agent for accounts fully managed by it, complete the
                following:

               

               

              
                

              

              Name
                of Principal

               

              
                
Principal's
                address

            
	 	 	 
	
              Register
                the Flow-Through Units as set forth below:

               

              
                

                Name                                                                              ___

              Account
                reference, if applicable

               

              
                
Address

               

            	 	
              Deliver
                the Flow-Through Units as set forth below:

               

            
	 	 	 
	
              Number
                of Common Shares currently held by the Subscriber 

              (excluding
                the Flow-Through Units subscribed for hereunder)

               

              
                

              

               

            	 	 

    

     

    ACCEPTANCE:
      The
      Company hereby accepts the subscription as set forth above on the terms and
      conditions contained in this Subscription Agreement 

     

    APOLLO
      GOLD CORPORATION                                                          October ___,
      2006

     

    Per:
          

    Authorized
      Signatory

     

    This
      is the first page of an agreement comprised of pages
      (including the exhibits).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      TERMS
        AND CONDITIONS OF SUBSCRIPTION AND RENUNCIATION AGREEMENT 

       

      FOR
        UNITS OF APOLLO
        GOLD CORPORATION 

       

      Scheme
        A

       

      Definitions

       

      "Act"
        means the Income
        Tax Act (Canada),
        together with any and all regulations promulgated thereunder, as amended
        from
        time to time;

       

      "Agreement"
        means this subscription and renunciation agreement as the same may be amended,
        supplemented or restated from time to time; 

       

      "Business
        Day" means a day on which Canadian chartered banks are open for the transaction
        of regular business in the City of Toronto, Ontario;

       

      "Canadian
        Exploration Expense(s)" or "CEE" means Canadian exploration expense described
        in
        paragraph (f) of the definition of "Canadian exploration expense" in subsection
        66.1(6) of the Act, or would be described in paragraph (h) of that definition
        if
        the reference therein to paragraphs (a) to (d) and (f) to (g.1) was a reference
        to paragraph (f), excluding amounts which are prescribed to constitute "Canadian
        exploration and development overhead expense" for purposes of paragraph
        66(12.6)(b) of the Act, Canadian exploration expenses to the extent of the
        amount of any assistance described in paragraph 66(12.6)(a) of the Act, any
        expenditures described in paragraph (b.1) of subsection 66(12.6) of the Act,
        and
        any expenses for prepaid services or rent that do not qualify as outlays
        and
        expenses for the period as described in the definition of "expense" in
        subsection 66(15) of the Act;

       

      "Closing
        Date" means October
        ►,
        2006 or
        such other date as the Company and the Subscriber
        may
        mutually agree upon in writing;

       

      "Commitment
        Amount" means the amount equal to Cdn$0.45
        multiplied by the number of Flow-Through Units subscribed and paid for pursuant
        to this Agreement;

       

      "CRA"
        means Canada Revenue Agency;

       

      "Expenditure
        Period" means the period commencing on the date of acceptance of this
        Subscription Agreement and ending on the earlier of:

       

      (i) the
        date
        on which the Commitment Amount has been fully expended in accordance with
        the
        terms hereof; and

       

      (ii) December
        31, 2007;

       

      "Flow-Through
        Mining Expenditure" means an expense which is a "flow-through mining
        expenditure" as defined in subsection 127(9) of the Act and expenses described
        as "eligible Ontario exploration expenditures" within the meaning of subsection
        8.4.3(2) of the Income
        Tax Act
        (Ontario);

       

      "Flow-Through
        Shares" has the meaning given to such term in the first paragraph of this
        Agreement;

       

      "Flow-Through
        Units" has the meaning given to such term in the first paragraph of this
        Agreement;

       

      "Flow-Through
        Warrants" has the meaning given to such term in the first paragraph of this
        Agreement;

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      "Information"
        means all information regarding the Company that is, or becomes, publicly
        available, together with all information prepared by the Company and provided
        to
        the Subscriber;

       

      "Person"
        means an individual, a firm, a corporation, a syndicate, a partnership, a
        trust,
        an association, an unincorporated organization, a joint venture, an investment
        club, a government or an agency or political subdivision thereof and every
        other
        form of legal or business entity of whatsoever nature or kind;

       

      "Prescribed
        Forms" means the forms prescribed from time to time under
        or
        pursuant to
        subsection 66(12.7) of the Act filed or to be filed by the Company within
        the
        prescribed times renouncing to the Subscriber the Qualifying Expenditures
        incurred pursuant to this Agreement and all parts or copies of such forms
        required by the CRA to be delivered to the Subscriber;

       

      "Prescribed
        Relationship" means a relationship between the Company and the Subscriber
        where
        the Subscriber and the Company are related or otherwise do not deal at "arm's
        length" for purposes of the Act;

       

      "principal-business
        corporation" means a "principal-business corporation" as defined in subsection
        66(15) of the Act;

       

      "Proposed
        Amendments" means the draft legislation to amend the Act and regulations
        thereto
        released by the Minister of Finance (Canada) on December 20, 2002 and July
        18,
        2005;

       

      "Qualifying
        Expenditures" means expenditures that are CEE, which qualify as a Flow-Through
        Mining Expenditure and which are made or incurred on or after the Closing
        Date
        and on or before the Termination Date which may be renounced by the Corporation
        as CEE pursuant to subsection 66(12.6) of the Act and this Agreement with
        an
        effective date not later than December 31, 2006 and in respect of which,
        but for
        the renunciation, the Corporation would be entitled to a deduction from income
        for income tax purposes; 

       

      "Termination
        Date" means December 31, 2007.

       

      Terms
        of the Offering

       

      2. Each
        Flow-Through Unit will consist of one Flow-Through Share and one-half of
        one
        Flow-Through Warrant. Of the subscription price of Cdn$0.45
        per
        Flow-Through Unit, the Company intends to allocate $0.449
        to the
        price of the Flow-Through Share comprised in each Flow-Through Unit and $0.001
        to the price of the one-half of one Flow-Through Warrant comprised in each
        Flow-Through Unit. Each whole Flow-Through Warrant will entitle
        the holder thereof
        to
        purchase one common share in
        the
        capital of
        the
        Company that is not a "flow-through
        share"
        "Common
        Share") at an
        exercise price of $1.00 per Common Share, subject to adjustment in certain
        events, at any time on or before 5:00 p.m. (Toronto time) on the date that
        is 12
        months from the date of issuance of the Flow-Through Warrant, and for any
        Flow-Through Warrant not exercised during the 12 month period after the issuance
        of the Flow-Through Warrant, at an exercise price of $1.15 per Common Share,
        subject to adjustment in certain events, at any time on or before 5:00 p.m.
        (Toronto time) on the date that is 24 months from the date of issuance of
        the
        Flow-Through Warrant.
        The
        Flow-Through Warrants shall be in such form and contain such terms as shall
        be
        mutually approved by the Company and the Subscriber. The Company and the
        Subscriber agree that the Flow-Through Shares
        and the
        Flow-Through Warrants will
        be
        "flow-through shares" as defined in subsection 66(15) of the Act, and,
        accordingly, the Company agrees to: (a) incur Qualifying Expenditures in
        an
        amount equal to the Commitment Amount during the period from and after the
        Closing Date to and including December 31, 2007; and (b) renounce Qualifying
        Expenditures equal to the Commitment Amount to the undersigned with an effective
        date no later than December 31, 2006.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      3. The
        Subscriber acknowledges (on its own behalf and, if applicable, on behalf
        of each
        person on whose behalf the Subscriber is contracting) that this subscription
        is
        subject to rejection or allotment by the Company in whole or in
        part.

       

      Representations,
        Flow-Through Warranties, Covenants and Acknowledgments by
        Subscriber

       

      4. By
        executing this subscription, the Subscriber (and, if applicable, the others
        for
        whom it is contracting hereunder) represents, warrants, covenants and
        acknowledges to the Company (and acknowledges that the Company and its counsel
        are relying thereon) that:

       

      (a) the
        Subscriber has been independently advised as to restrictions with respect
        to
        trading in the Flow-Through Shares and Flow-Through Warrants comprising the
        Flow-Through Units (collectively, the "Securities") imposed by applicable
        securities legislation in the jurisdiction in which the Subscriber resides,
        confirms that no representation has been made to the Subscriber by or on
        behalf
        of the Company with respect thereto, acknowledges that the Subscriber is
        aware
        of the characteristics of the Securities, the risks relating to an investment
        therein, and that the Subscriber may not be able to resell the Securities
        until
        the expiration of the applicable hold period except in accordance with limited
        exemptions under applicable securities legislation and regulatory policy
        and the
        Subscriber agrees that any certificates representing the Securities may bear
        a
        legend indicating that the sale of such securities is restricted. The Subscriber
        further acknowledges that the Subscriber should consult its own legal counsel
        in
        its jurisdiction for full particulars of applicable resale
        restrictions;

       

      (b) the
        Subscriber has relied solely upon publicly available information relating
        to the
        Company and not upon any verbal or written representation as to fact or
        otherwise made by or on behalf of the Company except as expressly set forth
        herein; 

       

      (c) unless
        the Subscriber is purchasing under subparagraph 4(d), (A) the Subscriber
        is
        purchasing the Flow-Through Units as principal, the
        Subscriber is resident in Ontario or otherwise subject to the applicable
        securities laws of Ontario, the Subscriber is an "accredited investor" as
        defined in National Instrument 45-106 entitled Prospectus
        and Registration and Exemptions promulgated
        under the Securities
        Act (Ontario)
        and has concurrently executed and delivered to the Company
        a
        Representation Letter in the form attached as Exhibit "1" to this Subscription
        Agreement indicating
        that the Subscriber fits within one of the categories of "accredited investor"
        set forth in such definition or (B) the Subscriber is purchasing as principal
        sufficient Flow-Through Units such that the aggregate acquisition cost of
        the
        Flow-Through Units is not less than $150,000 payable in cash and the Subscriber
        and such disclosed principal, if applicable, is not a corporation, syndicate,
        partnership or other form of incorporated or non-incorporated entity or
        organization created solely to permit the purchase of the Flow-Through Units
        by
        a group of individuals whose individual share of the aggregate acquisition
        cost
        of the Flow-Through Units is less than $150,000 payable in cash; 

       

      (d) if
        the
        Subscriber
        is not
        purchasing as principal, the
        Subscriber is
        duly
        authorized to enter into this Subscription Agreement and to execute all
        documentation in
        connection with the purchase on
        behalf
        of each beneficial purchaser and to provide and agree to all Subscriber's
        representations, warranties and covenants on behalf of such beneficial
        purchasers, the
        Subscriber
        acknowledges that the Company may be required by law to disclose to certain
        regulatory authorities, the identity of each beneficial purchaser of
        Flow-Through Units for whom the
        Subscriber
        may be
        acting, the
        Subscriber
        and each
        beneficial purchaser is resident in Ontario and the
        Subscriber
        is
        acting as agent for one or more disclosed principals, each of such principals
        is
        purchasing as principal for its own account, and each of such principals
        complies with subsection 4(c);

       

      (e) the
        Subscriber acknowledges that:

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      (i) no
        securities commission or similar regulatory authority has reviewed or passed
        on
        the merits of the Flow-Through Units; and

       

      (ii) there
        is
        no government or other insurance covering the Flow-Through Units;
        and

       

      (iii) there
        are
        risks associated with the purchase of the Flow-Through Units; and

       

      (iv) there
        are
        restrictions on the Subscriber's ability to resell the Securities and it
        is the
        responsibility of the Subscriber to find out what those restrictions are
        and to
        comply with them before selling the Securities; and

       

      (v) the
        Company has advised the Subscriber that the Company is relying on an exemption
        from the requirements to provide the Subscriber with a prospectus and to
        sell
        securities through a person or company registered to sell securities under
        the
Securities
        Act (Ontario)
        and other applicable securities laws and, as a consequence of acquiring
        securities pursuant to this exemption, certain protections, rights and remedies
        provided by the Securities
        Act (Ontario)
        and other applicable securities laws, including statutory rights of rescission
        or damages, will not be available to the Subscriber; 

       

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

       

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

       

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

       

      (i) the
        Subscriber has such knowledge in financial and business affairs as to be
        capable
        of evaluating the merits and risks of the Subscriber's investment and the
        Subscriber, or, where the Subscriber is not purchasing as principal, each
        beneficial purchaser, is able to bear the economic risk of loss of its
        investment;

       

      (j) the
        Subscriber does not act jointly or in concert with any other Subscriber for
        the
        purpose of the acquisition of the Flow-Through Units;

       

      (k) the
        Subscriber understands that the Company is relying on an exemption from the
        requirements to provide the Subscriber with a prospectus and to sell securities
        through a person or company registered to sell securities under the Securities
        Act (Ontario)
        and other applicable securities laws and, as a consequence of acquiring
        securities pursuant to this exemption, certain protections, rights and remedies
        provided by the Securities
        Act (Ontario)
        and other applicable securities laws, including statutory rights of rescission
        or damages, will not be available to the Subscriber;

       

      (l) if
        required by applicable securities legislation, regulations, rules, policies
        or
        orders or by any securities commission, stock exchange or other regulatory
        authority, the Subscriber will execute, deliver, file and otherwise assist
        the
        Company in filing, such reports, undertakings and other documents with respect
        to the issue of the Flow-Through Units;

       

      (m) the
        entering into of this Agreement and the transactions contemplated hereby
        will
        not result in a violation of any of the terms or provisions of any law
        applicable to the Subscriber, or if the Subscriber is not a natural person,
        any
        of the Subscriber's constating documents, or any agreement to which the
        Subscriber is a party or by which it is bound; 

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      (n) the
        Subscriber acknowledges that it has been encouraged to and should obtain
        independent legal, investment and tax advice with respect to its subscription
        for the Flow-Through Units and accordingly, has been independently advised
        as to
        the meanings of all terms contained herein relevant to the Subscriber for
        purposes of giving representations, warranties and covenants under this
        Agreement;

       

      (o) the
        Subscriber acknowledges and confirms that no representation has been made
        to the
        Subscriber with respect to the future value or price of any of the Flow-Through
        Shares or Flow-Through Warrants comprising the Flow-Through Units;

       

      (p) no
        securities commission, agency, governmental authority, regulatory body, stock
        exchange or other regulatory body has reviewed or passed on the merits of
        the
        Securities;

       

      (q) the
        Subscriber acknowledges that the Company contemplates completing the Offering
        and that the aggregate gross proceeds of the Offering will be up to
        $1,000,000;

       

      (r) the
        Subscriber acknowledges that the Company's counsel is acting as counsel to
        the
        Company and not as counsel to the Subscriber;

       

      (s) the
        Subscriber acknowledges that all costs and expenses incurred by the Subscriber
        (including any fees and disbursements of any special counsel or other advisors
        retained by the Subscriber) relating to the purchase of the Flow-Through
        Units
        shall be borne by the Subscriber;

       

      (t) the
        Subscriber is aware and has been advised that the subscription monies payable
        in
        respect of the Flow-Through Units represent "seed" or "risk" capital for
        the
        Company, which is in a speculative stage of development and without substantial
        assets;

       

      (u) the
        Subscriber acknowledges that all certificates representing the Flow-Through
        Shares and Flow-Through Warrants comprising the Flow-Through Units will bear
        the
following
        restrictive
        legends required by applicable securities laws and stock exchange
        rules:

       

      "UNLESS
        PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THE SECURITY MUST NOT
        TRADE THE SECURITY BEFORE [four
        months and one day from the Closing Date]."
        and

       

      "THE
        SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK
        EXCHANGE ("TSX"); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE
        FACILITIES OF TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY
        ANY
        CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT
        OF
        TRANSACTIONS ON TSX." 

       

      (v) the
        funds
        which will be advanced by the Subscriber to the Company hereunder will not
        represent proceeds of crime for the purposes of the Proceeds
        of Crime (Money Laundering) Act (Canada)
        (the "PCMLA") and the Subscriber acknowledges that the Company may in the
        future
        be required by law to disclose the Subscriber's name and other information
        relating to this Subscription Agreement and the Subscriber's subscription
        hereunder, on a confidential basis, pursuant to the PCMLA. To the best of
        the
        knowledge of the Subscriber: (a) none of the subscription funds to be provided
        by the Subscriber: (i) have been or will be derived from or related to any
        activity that is deemed criminal under the law of Canada, the United States
        of
        America, or any other jurisdiction; or (ii) are being tendered on behalf
        of a
        person or entity who has not been identified to the Subscriber; and (b) it
        shall
        promptly notify the Company
        if the
        Subscriber discovers that any of such representations ceases to be true,
        and
        will provide the Company
        with
        appropriate information in connection therewith; 

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (w) the
        Subscriber, and if the Subscriber is a partnership, any partner of the
        partnership, does not and will not have prior to January 1, 2008 a Prescribed
        Relationship with the Company; 

       

      (x) the
        Subscriber will not enter into any agreement or arrangement with any person
        or
        partnership (other than the Company or a specified person in relation to
        the
        Company (as defined in regulation 6202.(5)) which will cause the Flow Through
        Shares or Flow-Through Warrants to be "prescribed shares" or "prescribed
        rights"
        the purposes of section 6202.1 of the regulation to the Act and the Proposed
        Amendments;

       

      (y) the
        Subscriber is not a non-resident of Canada for purposes of the Act;
        and

       

      (z) The
        representations, warranties and covenants of the Subscriber herein are made
        with
        the intent that they be relied upon in determining the suitability of a
        purchaser of Flow-Through Units and will be true and correct at the Closing
        Time
        on the Closing Date and will survive the completion of the issuance of the
        Flow-Through Units. The Subscriber agrees to indemnify the Company and its
        directors and officers against all losses, claims, costs, expenses and damages
        or liabilities which any of them may suffer or incur caused or arising from
        reliance thereon. The Subscriber undertakes to immediately notify the Company
        at
5655
        S.
        Yosemite Street, Suite 200, Greenwood Village, CO, 80111- 3220, Attention:
        President,
        of any
        change in any statement or other information relating to the Subscriber set
        forth herein which takes place prior to the Closing Time on the Closing
        Date.

       

      Representations,
        Flow-Through Warranties and Covenants of Company

       

      5. The
        Company hereby represents, warrants and covenants and agrees to and with
        the
        Subscriber (and acknowledges that the Subscriber is relying thereon)
        that:

       

      (a) the
        Company has the full corporate right, power and authority to execute and
        deliver
        this Subscription Agreement, to issue the Flow-Through Shares and Flow-Through
        Warrants comprising the Flow-Through Units to the Subscriber and to incur
        and
        renounce to the Subscriber, Qualifying Expenditures in an amount equal to
        the
        Commitment Amount prior to the Termination Date;

       

      (b) upon
        acceptance this Subscription Agreement constitutes a binding obligation of
        the
        Company enforceable in accordance with its terms;

       

      (c) it
        will
        keep proper books, records and accounts of all Qualifying Expenditures and
        all
        transactions affecting the Commitment Amount and the Qualifying Expenditures,
        and upon reasonable notice, to make such books, records and accounts available
        for inspection and audit by or on behalf of the Subscriber;

       

      (d) it
        will
        incur, during the Expenditure Period, Qualifying Expenditures in such amount
        that enables the Company to renounce to the Subscriber, in accordance with
        the
        Act and this Agreement, Qualifying Expenditures in an amount equal to the
        Commitment Amount;

       

      (e) it
        will
        renounce, in accordance with the Act and this Agreement, to the Subscriber
        with
        an effective date of renunciation on or before December 31, 2006, Qualifying
        Expenditures which have been incurred or will be incurred during the Expenditure
        Period in an amount equal to the Commitment Amount;

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      (f) it
        will
        timely file all forms required under the Act and any corresponding provincial
        legislation, including Prescribed Forms, necessary to effectively renounce
        Qualifying Expenditures equal to the Commitment Amount to the Subscriber
        as
        provided herein and to provide the Subscriber with a copy of all such forms
        as
        are required to be provided on a timely basis;

       

      (g) the
        Company will not be subject to the provisions of subsection 66(12.67) of
        the Act
        in a manner which impairs its ability to renounce Qualifying Expenditures
        to the
        Subscriber in an amount equal to the Commitment Amount;

       

      (h) forthwith
        after the Closing Date, the Company shall issue and file a press release
        announcing the placement of the Flow-Through Units with the "MineralFields
        Group" ("MFG")
        and
        will
        consult with
        MFG
        regarding an appropriate reference in such press release to the subscription
        by
        MFG. In the event a mineral discovery or other positive news is generated
        in
        relation to any expenditures funded hereunder, the Company shall issue and
        file
        a timely press release in the normal course and shall consult with MFG regarding
        the inclusion in such press release of an appropriate reference to the fact
        that
        such expenditures were partially funded by MFG through a private
        placement;

       

      (i) the
        Company has filed in a timely manner all necessary tax returns and notices
        and
        has paid all applicable taxes of whatsoever nature for all tax years prior
        to
        the date hereof to the extent that such taxes have become due or have been
        alleged to be due and the Company is not aware of any tax deficiencies or
        interest or penalties accrued or accruing, or alleged to be accrued or accruing,
        thereon where, in any of the above cases, it might reasonably be expected
        to
        result in any material adverse change in the condition (financial or otherwise),
        or in the earnings, business, affairs or prospects of the Company and there
        are
        no agreements, waivers or other arrangements providing for an extension of
        time
        with respect to the filing of any tax return by the Company or the payment
        of
        any material tax, governmental charge, penalty, interest or fine against
        the
        Company. There are no material actions, suits, proceedings, investigations
        or
        claims now threatened or pending against the Company which could result in
        a
        material liability in respect of taxes, charges or levies of any governmental
        authority, penalties, interest, fines, assessments or reassessments or any
        matters under discussion with any governmental authority relating to taxes,
        governmental charges, penalties, interest, fines, assessments or reassessments
        asserted by any such authority and the Company has withheld (where applicable)
        from each payment to each of the present and former officers, directors,
        employees and consultants thereof the amount of all taxes and other amounts,
        including, but not limited to, income tax and other deductions, required
        to be
        withheld therefrom, and has paid the same or will pay the same when due to
        the
        proper tax or other receiving authority within the time required under
        applicable tax legislation;

       

      (j) except
        as
        disclosed in the Information, the Company does not owe any amount to, nor
        has
        the Company any present loans to, or borrowed any amount from or is otherwise
        indebted to, any officer, director, employee or securityholder of either
        of them
        or any Person not dealing at "arm's length" (as such term is defined in the
        Act)
        with any of them except for usual employee reimbursements and compensation
        paid
        in the ordinary and normal course of the business of the Company. Except
        usual
        employee or consulting arrangements made in the ordinary and normal course
        of
        business, the Company is not a party to any contract, agreement or understanding
        with any officer, director, employee or securityholder thereof or any other
        Person not dealing at arm's length with the Company. No officer, director
        or
        employee of the Company and no Person which is an affiliate or associate
        of any
        of the foregoing Persons, owns, directly or indirectly, any interest (except
        for
        shares representing less than 5% of the outstanding shares of any class or
        series of any publicly traded company) in, or is an officer, director, employee
        or consultant of, any Person which is, or is engaged in, a business competitive
        with the business of the Company which could materially adversely impact
        on the
        ability to properly perform the services to be performed by such Person for
        the
        Company. No officer, director, employee or securityholder of the Company
        has any
        cause of action or other claim whatsoever against, or owes any amount to,
        the
        Company except for claims in the ordinary and normal course of the business
        of
        the Company such as for accrued vacation pay or other amounts or matters
        which
        would not be material to the Company;

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      (k) upon
        issue, the Flow-Through Shares and Flow-Through Warrants will
        be
        "flow-through shares" as defined in subsection 66(15) of the Act and are
        not and
        will not be "prescribed shares" or "prescribed rights" within the meaning
        of
        section 6202.1 of the regulations to the Act and the Proposed Amendments.
        To the
        best of its knowledge, the Company does not have and will not have prior
        to the
        Termination Date a Prescribed Relationship with the Subscriber and, if the
        Subscriber is a partnership, any partner or limited partner of the
        partnership;

       

      (l) the
        Company is a "principal-business corporation" as defined in subsection 66(15)
        of
        the Act and will continue to be a "principal-business corporation" until
        such
        time as all of the Qualifying Expenditures required to be renounced under
        this
        Agreement have been incurred and validly renounced pursuant to the
        Act;

       

      (m) the
        Company has no reason to believe that it will be unable to incur, on or after
        the Closing Date and on or before the Termination Date or that it will be
        unable
        to renounce to the Subscriber effective on or before December 31, 2006,
        Qualifying Expenditures in an aggregate amount equal to the Commitment Amount
        and the Company has no reason to expect any reduction of such amount by virtue
        of subsection 66(12.73) of the Act;

       

      (n) the
        Company shall deliver to the Subscriber, on or before March 1, 2007, the
        relevant Prescribed Forms, fully completed and executed, renouncing to the
        Subscriber Qualifying Expenditures in an amount equal to the Commitment Amount
        with an effective date of no later than December 31, 2006;

       

      (o) the
        Qualifying Expenditures to be renounced by the Company to the
        Subscriber:

       

      (i) will
        constitute CEE on the effective date of the renunciation;

       

      (ii) will
        not
        include expenses that are "Canadian exploration and development overhead
        expenses" (as defined in the regulations to the Act for purposes of paragraph
        66(12.6)(b) of
        the
        Act) of the Company or amounts which constitute specified expenses for seismic
        data described in paragraph 66(12.6)(b.1) of the Act or any expenses for
        prepaid
        services or rent that do not qualify as outlays and expenses for the period
        as
        described in the definition of "expense" in subsection 66(15) of the
        Act;

       

      (iii) will
        not
        include any amount that has previously been renounced by the Company to the
        Subscriber or to any other Person;

       

      (iv) would
        be
        deductible by the Company in computing its income for the purposes of Part
        I of
        the Act but for the renunciation to the Subscriber; and

       

      (v) will
        not
        be subject to any reduction under subsection 66(12.73) of the Act;

       

      (p) the
        Company shall not reduce the amount renounced to the Subscriber pursuant
        to
        subsection 66(12.6) of
        the
        Act;

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      (q) if
        the
        Company receives, or becomes entitled to receive, any government assistance
        which is described in paragraph (a) of the definition of "excluded obligation"
        in subsection 6202.1(5) of the regulations made under the Act and the receipt
        or
        entitlement to receive such government assistance has or will have the effect
        of
        reducing the amount of CEE validly renounced to the Subscriber hereunder
        to less
        than the Commitment Amount, the Company shall remit to the Subscriber the
        benefit of all amounts received or receivable in respect of such government
        assistance to the extent of such reduction; and

       

      (r) the
        Company shall use the gross proceeds from the issuance of Flow-Through Units
        for
        the exploration program of the Company to be conducted on the projects of
        the
        Company located in the Province of Ontario. 

       

      Indemnity

       

      6. If
        the
        Company does not incur and renounce to the Subscriber, effective on or before
        December 31, 2006, and incur on or before December 31, 2007 Qualifying
        Expenditures equal to the Commitment Amount, as the sole recourse to the
        Subscriber for such event, the Company shall indemnify and hold harmless
        the
        Subscriber and each of the partners thereof if the Subscriber is a partnership
        or a limited partnership (for the purposes of this paragraph each an
        "Indemnified Person") as to, and pay in settlement thereof to the Indemnified
        Person on or before the twentieth Business Day following the Termination
        Date,
        an amount equal to the amount of any tax payable under the Act (and under
        any
        corresponding provincial legislation) by any Indemnified Person as a consequence
        of such failure. In the event that the CRA reduces the amount renounced by
        the
        Company to the Subscriber pursuant to subsection 66(12.73) of the Act, as
        the
        sole recourse to the Subscriber for such event, the Company shall indemnify
        and
        hold harmless each Indemnified Person as to, and pay in settlement thereof
        to
        the Indemnified Person, an amount equal to the amount of any tax payable
        under
        the Act (and under any corresponding provincial legislation) by the Indemnified
        Person as a consequence of such reduction.

       

      To
        the
        extent that any Person entitled to be indemnified hereunder is not a party
        to
        this Agreement, the Subscriber shall obtain and hold the rights and benefits
        of
        this Agreement in trust for, and on behalf of, such Person and such Person
        shall
        be entitled to enforce the provisions of this section notwithstanding that
        such
        Person is not a party to this Agreement.

       

      Closing

       

      7. The
        Subscriber agrees to deliver to the Company at closing: (a) this duly completed
        and executed Subscription Agreement; (b) if the Subscriber is an "accredited
        investor" a fully executed and completed Representation Letter in the form
        of
        Exhibit 2; and, (c) a certified cheque or bank draft payable to the Company's
        counsel in trust, for the aggregate subscription price of the Flow-Through
        Units
        subscribed for under this Agreement or payment of the same amount in such
        other
        manner as is acceptable to the Company, and such other documents as the Company
        reasonably requires.

       

      8. The
        sale
        of the Flow-Through Units will be completed by couriered document exchange
        at
        1:00 p.m. (Toronto time) (the "Closing Time") the day of closing (the "Closing
        Date"), but not later than October
        26
        2006,
        unless the Subscriber consents. The Subscriber acknowledges and agrees that
        this
        offering of Flow-Through Units is not subject to any minimum subscription
        level.

       

      9. The
        Company shall be entitled to rely on delivery of a facsimile copy of executed
        Subscription Agreements, and acceptance by the Company of such agreements
        shall
        be legally effective to create a valid and binding agreement between the
        Subscriber and the Company in accordance with the terms hereof. Notwithstanding
        the foregoing, the Subscriber shall deliver originally executed copies of
        the
        documents listed in section 7
        hereof
        to the Company within two business days of the Closing Date. In addition,
        this
        Subscription Agreement may be executed in counterparts, each of which shall
        be
        deemed an original and all of which shall constitute one and the same
        document.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

      

      Privacy
        Legislation

       

      10. The
        Subscriber acknowledges and consents to the fact that the Company is collecting
        the Subscriber's (and any beneficial purchaser for which the Subscriber is
        contracting hereunder) personal information (as that term is defined under
        applicable privacy legislation, including, without limitation, the Personal
        Information Protection and Electronic Documents Act
        (Canada)
        and any other applicable similar replacement or supplemental provincial or
        federal legislation or laws in effect from time to time) for the purpose
        of
        completing the Subscriber's subscription. The Subscriber acknowledges and
        consents to the Company retaining the personal information for so long as
        permitted or required by applicable law or business practices. The Subscriber
        further acknowledges and consents to the fact that the Company may be required
        by applicable securities laws, stock exchange rules and/or Investment Dealers
        Association of Canada rules to provide regulatory authorities any personal
        information provided by the Subscriber respecting itself (and any beneficial
        purchaser for which the Subscriber is contracting hereunder). The Subscriber
        represents and warrants that it has the authority to provide the consents
        and
        acknowledgements set out in this paragraph on behalf of all beneficial
        purchasers for which the Subscriber is contracting. 

       

      11. In
        addition , the Subscriber agrees and acknowledges that:

       

      
        	 	
                (a)

              	
                the
                  Company will deliver certain personal information, including information
                  regarding the name, address, telephone number and amount subscribed
                  for,
                  to the securities regulatory authorities, including the Ontario
                  Securities
                  Commission and the Toronto Stock
                  Exchange;

              

      

       

      
        	 	
                (b)

              	
                the
                  information is being collected indirectly by the securities regulatory
                  authorities under authority granted to them in securities
                  legislation;

              

      

       

      
        	 	
                (c)

              	
                the
                  information is being collected for the purposes of the administration
                  and
                  enforcement of such securities
                  legislation;

              

      

       

      
        	 	
                (d)

              	
                the
                  Subscriber can contact the Administrative Assistant to the Director
                  of
                  Corporate Finance at the Ontario Securities Commission at Suite
                  1903, Box
                  5520 Queen Street West, Toronto, Ontario, (416) 593-3682 for information
                  regarding the collection and use of this personal information by
                  the
                  Ontario Securities Commission; and

              

      

       

      
        	 	
                (e)

              	
                the
                  Toronto Stock Exchange collects personal information in forms submitted
                  by
                  the Company, which will include personal information regarding
                  the
                  Subscriber.

              

      

       

      General

       

      12. The
        contract arising out of this Subscription Agreement shall be governed by
        and
        construed in accordance with the laws of the Province of Ontario and the
        laws of
        Canada applicable therein and the Subscriber, the Company each irrevocably
        attorn to the jurisdiction of the courts of the Province of
        Ontario.

       

      13. Time
        shall be of the essence hereof.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

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

       

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

       

      16. The
        Company will have the right to accept or reject the Subscriber's offer to
        purchase at any time at or prior to the Closing Time. Notwithstanding the
        foregoing, the Subscriber acknowledges and agrees that the acceptance of
        the
        subscription agreement will be conditional among other things upon the sale
        of
        the Flow-Through Units to the Subscriber being exempt from any prospectus
        requirements of all applicable securities laws. The Company will be deemed
        to
        have accepted this subscription agreement upon the delivery at closing of
        the
        certificates representing the Flow-Through Shares and Flow-Through Warrants
        comprising the Flow-Through Units to or upon the direction of the Subscriber
        in
        accordance with the provisions hereof.

       

      17. The
        covenants, representations and warranties contained herein shall survive
        the
        closing of the transactions contemplated hereby for a period of one
        year.

       

      18. In
        this
        Subscription Agreement, references to "$" or "Cdn$" are to Canadian
        dollars.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      EXHIBIT
        1

       

      REPRESENTATION
        LETTER

       

      (FOR
        ACCREDITED INVESTORS)

       

      TO: APOLLO
        GOLD CORP. (the
        "Company")

       

      In
        connection with the purchase of units in the capital of the Company
        ("Flow-Through
        Units")
        by the
        undersigned subscriber or, if applicable, the principal on whose behalf the
        undersigned is purchasing as agent (the "Subscriber"
        for the
        purposes of this Exhibit 2), the Subscriber hereby represents, warrants,
        covenants and certifies to the Company that:

       

      
        	
                1.

              	
                The
                  Subscriber is purchasing the Flow-Through Units as principal for
                  its own
                  account or is deemed to be acting as principal pursuant to National
                  Instrument 45-106 - Prospectus
                  and Registration Exemptions
                  ("NI
                  45-106");

              

      

       

      
        	
                2.

              	
                The
                  Subscriber is an "accredited investor" within the meaning of NI
                  45-106 by
                  virtue of satisfying the indicated criterion as set out in Appendix
                  "A" to
                  this Representation Letter; and

              

      

       

      
        	
                3.

              	
                Upon
                  execution of this Exhibit 2 by the Subscriber, this Exhibit 2 shall
                  be
                  incorporated into and form a part of the Subscription
                  Agreement.

              

      

       

      Dated:
        October l,
        2006.

       

      
        	 	 	FrontierAlt
                - MineralFields 2004 Flow-Through Limited Partnership
	 	 	Print
                name of Subscriber
	 
 	 
 	 
	 	By:  	 
	 	
                

                Signature
	 	 

      

       

      
        	 	 	PER:
                Joe Dwek, President, FrontierAlt - MineralFields 2004 Inc (general
                partner
                for FrontierAlt - MineralFields 2004 Flow-Through Limited
                Partnership)
	 	 	Print
                name of Signatory (if different from Subscriber)
	 
 	 
 	 
 
	 	 	 
	 	
                

                Title 
	 	 

      

      IMPORTANT:
        PLEASE INITIAL APPENDIX "A" ON THE NEXT PAGE

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      
        Accredited
          Investor -
          (defined in NI 45-106) means:

        

          
            	o	
                    (a)
                      an individual who, either alone or with a spouse, beneficially
                      owns,
                      directly or indirectly, financial assets having an aggregate
                      realizable
                      value that before taxes, but net of any related liabilities,
                      exceeds
                      $1,000,000; 

                     

                  
	o 	
                    (b)
                      an individual whose net income before taxes exceeded $200,000
                      in each of
                      the 2 most recent calendar years or whose net income before
                      taxes combined
                      with that of a spouse exceeded $300,000 in each of the 2 most
                      recent
                      calendar years and who, in either case, reasonably expects
                      to exceed that
                      net income level in the current calendar year;

                     

                  
	o	
                    (c)
                      an individual who, either alone or with a spouse, has net assets
                      of at
                      least $5,000,000;

                     

                  
	o 	
                    (d)
                      a person, other than an individual or investment fund, that
                      has net assets
                      of at least $5,000,000 as shown on its most recently prepared
                      financial
                      statements;

                     

                  
	o	
                    (e)
                      a person in respect of which all of the owners of interests,
                      direct,
                      indirect or beneficial, except the voting securities required
                      by law to be
                      owned by directors, are persons that are accredited
                      investors;

                     

                  
	o	
                    (f)
                      a Canadian financial institution, or a Schedule III bank;

                     

                  
	o	
                    (g)
                      the Business Development Bank of Canada incorporated under
                      the
                      Business
                      Development Bank of Canada Act (Canada);

                     

                  
	o	
                    (h)
                      a subsidiary of any person referred to in paragraphs (f) or
                      (g), if the
                      person owns all of the voting securities of the subsidiary,
                      except the
                      voting securities required by law to be owned by directors
                      of that
                      subsidiary;

                     

                  
	o 	
                    (i)
                      a person registered under the securities legislation of a jurisdiction
                      of
                      Canada as an adviser or dealer, other than a person registered
                      solely as a
                      limited market dealer under one or both of the Securities
                      Act (Ontario)
                      or the Securities
                      Act (Newfoundland
                      and Labrador);

                     

                  
	o	
                    (j)
                      an individual registered or formerly registered under the securities
                      legislation of a jurisdiction of Canada as a representative
                      of a person
                      referred to in paragraph (i);

                     

                  
	o	
                    (k)
                      the Government of Canada or a jurisdiction of Canada, or any
                      crown
                      corporation, agency or wholly owned entity of the Government
                      of Canada or
                      a jurisdiction of Canada;

                     

                  
	o	
                    (l)
                      a municipality, public board or commission in Canada and a
                      metropolitan
                      community, school board, the Comité de gestion de la taxe scolaire de
                      l'île de Montréal or an intermunicipal management board in
                      Québec;

                     

                  
	o	
                    (m)
                      any national, federal, state, provincial, territorial or municipal
                      government of or in any foreign jurisdiction, or any agency
                      of that
                      government;

                     

                  

          

           

          
            
              
              

            

            
              14

              
                

              

            

            
              
              

            

          

           

          
            	o	
                    (n)
                      a pension fund that is regulated by either the Office of the
                      Superintendent of Financial Institutions (Canada) or a pension
                      commission
                      or similar regulatory authority of a jurisdiction of Canada;

                     

                  
	o	
                    (o)
                      an investment fund that distributes or has distributed its
                      securities only
                      to 

                     

                  

          

           

          
            	 	
                    (i)

                  	
                    a
                      person that is or was an accredited investor at the time of
                      the
                      distribution;

                  

          

           

          
            	 	
                    (ii)

                  	
                    a
                      person that acquires or acquired securities in the circumstances
                      referred
                      to in Sections 2.10 [Minimum
                      amount investment],
                      and 2.19 [Additional
                      investment in investment funds]
                      of NI 45-106; OR

                  

          

           

          
            	 	
                    (iii)

                  	
                    a
                      person described in paragraph (i) or (ii) that acquires or
                      acquired
                      securities under Section 2.18 [Investment
                      fund reinvestment]
                      of NI 45-106;

                  

          

           

          
            	o	
                    (p)
                      an investment fund that distributes or has distributed securities
                      under a
                      prospectus in a jurisdiction of Canada for which the regulator
                      or, in
                      Québec, the securities regulatory authority, has issued a
                      receipt;

                     

                  
	o	
                    (q)
                      a trust company or trust corporation registered or authorized
                      to carry on
                      business under the Trust
                      and Loan Companies Act (Canada)
                      or under comparable legislation in a jurisdiction of Canada
                      or a foreign
                      jurisdiction, acting on behalf of a fully managed account managed
                      by the
                      trust company or trust corporation, as the case may be;

                     

                  
	o	
                    (r)
                      a person acting on behalf of a fully managed account managed
                      by that
                      person, if that person

                     

                  

          

          
            	 	
                    (i)

                  	
                    is
                      registered or authorized to carry on business as an adviser
                      or the
                      equivalent under the securities legislation of a jurisdiction
                      of Canada or
                      a foreign jurisdiction; and

                  

          

           

          
            	 	
                    (ii)

                  	
                    in
                      Ontario, is purchasing a security that is not a security of
                      an investment
                      fund;

                  

          

           

          
            	o	
                    (s)
                      a registered charity under the Income
                      Tax Act (Canada)
                      that, in regard to the trade, has obtained advice from an eligibility
                      adviser or an adviser registered under the securities legislation
                      of the
                      jurisdiction of the registered charity to give advice on the
                      securities
                      being traded;

                     

                  
	o	
                    (t)
                      an entity organized in a foreign jurisdiction that is analogous
                      to any of
                      the entities referred to in paragraphs (f) to (i) or paragraph
                      (n) in form
                      and function;

                     

                  
	
                    þ

                     

                  	
                    (u)
                      an investment fund that is advised by a person registered as
                      an adviser or
                      a person that is exempt from registration as an adviser; OR

                     

                  
	o	
                    (v)
                      a person that is recognized or designated by the securities
                      regulatory
                      authority or, except in Ontario and Québec, the regulator as

                     

                  

          

          
             

            
              	 	
                      (i)

                    	
                      an
                        accredited investor; or

                    

            

          

          
             

            
              	 	
                      (ii)

                    	
                      an
                        exempt purchaser in Alberta or British Columbia after NI
                        45-106 comes into
                        force;

                    

            

             

          

          
            
              
              

            

            
              15

              
                

              

            

            
              
              

            

             

          

        

        and
          for
          purposes hereof, words and phrases which are used in this Accredited Investor
          Certificate and which are defined in NI 45-106 shall have the meaning ascribed
          thereto in NI 45-106.

         

        For
          the purposes hereof:

         

        
          	 	
                  "bank"
                    means a bank named in Schedule I or II of the Bank
                    Act
                    (Canada).

                   

                
	 	
                  "Canadian
                    financial institution"
                    means:

                   

                
	 	(i)	an
                  association governed by the Cooperative
                  Credit Associations Act (Canada)
                  or a central cooperative credit society for which an order has
                  been made
                  under section 473(1) of the Act, or
	 	 	 
	 	(ii)	a
                  bank,
                  loan corporation, trust company, trust corporation, insurance company,
                  treasury branch, credit union, caisse populaire, financial services
                  corporation, or league that, in each case, is authorized by an
                  enactment
                  of Canada or a jurisdiction of Canada to carry on business in Canada
                  or a
                  jurisdiction in Canada.
	 	 	 
	 	"control
                  person" has
                  the meaning ascribed to that term in securities legislation except
                  in
                  Manitoba, Newfoundland and Labrador the Northwest Territories,
                  Nova
                  Scotia, Nunavut, Ontario, Prince Edward Island and Quebec, where
                  "control
                  person" means any person that holds or is one of a combination
                  of persons
                  that holds
	 	 
	 	 	
                  a
                    sufficient number of any of the securities of an issuer so as
                    to affect
                    materially the control of the issuer, or

                   

                
	 	 	
                  more
                    than 20% of the outstanding voting securities of an issuer except
                    where
                    there is evidence showing that the holding of those securities
                    does not
                    affect materially the control of that issuer.

                   

                
	 	
                  "eligibility
                    adviser" means

                   

                
	 	
                  (i)

                   

                	
                  a
                    person that is registered as an investment dealer or equivalent
                    category
                    of registration under the securities legislation of the jurisdiction
                    of a
                    purchaser and authorized to give advice with respect to the type
                    of
                    security being distributed, and

                   

                
	 	 	
                  in
                    Saskatchewan or Manitoba, also means a lawyer who is a practising
                    member
                    in good standing with a law society of a jurisdiction of Canada
                    or a
                    public accountant who is a member in good standing of an institute
                    or
                    association of chartered accountants, certified general accountants
                    or
                    certified management accountants in a jurisdiction of Canada
                    provided that
                    the lawyer or public accountant must not:

                   

                
	 	 	
                  (A)

                   

                	
                  have
                    a professional, business or personal relationship with the issuer,
                    or any
                    of its directors, executive officers, founders or control persons,
                    and

                   

                
	 	 	
                  (B)

                   

                	
                  have
                    acted for or been retained personally or otherwise as an employee,
                    executive officer, director, associate or partner of a person
                    that has
                    acted for or been retained by the issuer or any of its directors,
                    executive officers, founders or control persons within the previous
                    12
                    months.

                   

                

        

         

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

         

        
          	
                  (e)

                   

                	
                  "executive
                    officer"
                    means for an issuer, an individual who is:

                   

                
	 	(a)
	a
                  chair,
                  vice-chair or president;
	 	 	 
	 	(b)	a
                  vice-president in charge of a principal business unit, division
                  or
                  function including sales, finance or production;
	 	 	 
	 	(c)	an
                  officer
                  of the issuer or any of its subsidiaries and who performs a policy-making
                  function in respect of the issuer; or
	 	 	 
	 	(d)	performing
                  a policy making function in respect of the issuer.
	 	 	 
	(f)	"financial
                  assets" means
                  cash, securities or a contract of insurance, a deposit or an evidence
                  of
                  deposit that is not a security for the purposes of securities
                  legislation.
	 	 	 
	(g)	"founder",
in
                  respect of an issuer, means a person or company who,
	 	 	 
	 	
                  (i)

                   

                	
                  acting
                    alone, in conjunction or in concert with one or more persons,
                    directly or
                    indirectly, takes the initiative in founding, organizing or substantially
                    reorganizing the business of the issuer, and

                   

                
	 	
                  (ii)

                   

                	
                  at
                    the time of the trade is actively involved in the business of
                    the
                    issuer.

                   

                
	(h)	"fully
                  managed account" means
                  an account of a client for which a person or company makes the
                  investment
                  decisions if that person or company has full discretion to trade
                  in
                  securities for the account without requiring the client's express
                  consent
                  to a transaction.
	 	 
	(i)	"investment
                  fund"
                  has the same meaning as in National Instrument 81-106 Investment
                  Fund
                   Continuous
                  Disclosure.
	 	 
	(j)	"jurisdiction"
                  means a province or territory of Canada except when used in the
                  term
                  foreign  jurisdiction.
	 	 
	(k)	"non-redeemable
                  investment fund"
                  has the same meaning as in National Instrument 81-106  Investment
                  Fund Continuous Disclosure.
	 	 
	(l)	"person"
                  includes
	 	 	 
	 	(a)	an
                  individual;
	 	 	 
	 	(b)	a
                  corporation;
	 	 	 
	 	(c)	a
                  partnership, trust, fund and an association, syndicate, organization
                  or
                  other organized group
                  of persons, whether incorporated or not, and
	 	 	 
	 	(d) 	an
                  individual or other person in that person's capacity as a trustee,
                  executor, administrator
                  or personal or other legal representative.
	 	 	 
	(m)	"related
                  liabilities"
                  means
	 	 	 
	 	(i)	liabilities
                  incurred or assumed for the purpose of financing the acquisition
                  or
                  ownership of financial assets, or
	 	 	 
	 	(ii)	liabilities
                  that are secured by financial
                  assets.

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

         

        
          	(n)	"Schedule
                  III bank"
                  means an authorized foreign bank named in Schedule III of the Bank
                  Act  (Canada).
	 	 	 
	(o)	"subsidiary"
                  means an issuer that is controlled directly or indirectly by another
                  issuer and includes a subsidiary of a subsidiary.
	 	 	 

        

         

        
          
            
            

          

          18Unassociated Document

    UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE MARCH 1, 2007.

     

    Void
      after 5:00 p.m. (Toronto time) on the 30th day of October, 2008.

     

     

    
      	
              Number
                of Warrants: l

               

            	
              Warrant
                Certificate No. 2006-01-l

               

            

    

    

    APOLLO
      GOLD CORPORATION

     

    (A
      corporation existing under the laws of the Yukon Territory)

     

    This
      is
      to certify that, for value received, l (the
      "Holder"),
      shall
      have the right to purchase from APOLLO GOLD CORPORATION (the "Corporation"),
      at
      any time and from time to time up to 5:00 p.m. (Toronto time) on October 30,
      2008 (the
      "Expiry
      Time"),
      one
      fully paid and non-assessable common share in the capital of the Corporation
      (a
      "Common
      Share")
      for
      each Warrant (individually, a "Warrant")
      represented hereby at a price of Cdn$1.00 per Common Share for the first 12
      months, and at a price of Cdn$1.15 per Common Share for the last 12 months
      (collectively, the "Exercise
      Price"),
      upon
      and subject to the terms and conditions set forth herein.

     

    1. For
      the
      purposes of this Warrant Certificate, the term "Common
      Shares"
      means
      common shares without par value in the capital of the Corporation as constituted
      as of the date hereof, provided that in the event of a subdivision, redivision,
      reduction, combination or consolidation thereof or any other adjustment under
      section 8 herein, or successive such subdivisions, redivisions, reductions,
      combinations, consolidations or other adjustments, then subject to the
      adjustments, if any, having been made in accordance with the provisions of
      this
      Warrant Certificate, "Common
      Shares"
      shall
      thereafter mean the shares, other securities or other property resulting from
      such subdivision, redivision, reduction, combination or consolidation or other
      adjustment.

     

    2. All
      Warrant Certificates shall be signed by an officer of the Corporation holding
      office at the time of signing, or any successor or replacement of such person
      and notwithstanding any change in any of the persons holding said offices
      between the time of actual signing and the delivery of the Warrant Certificate,
      the Warrant Certificate so signed shall be valid and binding upon the
      Corporation.

     

    3. All
      rights under any of the Warrants in respect of which the right of subscription
      and purchase therein provided for shall not theretofore have been exercised
      shall wholly cease and such Warrants shall be wholly void and of no valid or
      binding effect after the Expiry Time.

     

    4. The
      right
      to purchase Common Shares of the Corporation pursuant to the Warrants may only
      be exercised by the Holder at or before the Expiry Time by:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              duly
                completing and executing a subscription substantially in the form
                attached
                as Schedule "A" (the "Subscription
                Form"),
                in the manner therein indicated;
                and

            

    

     

    
      	 	
              (b)

            	
              surrendering
                this Warrant Certificate and the duly completed and executed Subscription
                Form to the Corporation prior to the Expiry Time at its
                principal office, 5655 S. Yosemite Street, Suite 200, Greenwood Village,
                Colorado, 80111-3220,
                together with payment of the purchase price for the Common Shares
                subscribed for in the form of certified cheque or bank draft payable
                to
                the Corporation in an amount equal to the then applicable Exercise
                Price
                multiplied by the number of Common Shares subscribed
                for.

            

    

     

    5. Upon
      delivery and payment as set forth in section 4 herein, the Corporation shall
      cause to be issued to the Holder the number of Common Shares subscribed for
      by
      the Holder and the Holder shall become a shareholder of the Corporation in
      respect of such Common Shares with effect from the date of such delivery and
      payment and shall be entitled to delivery of a certificate or certificates
      evidencing such shares. The Corporation shall cause such certificate or
      certificates to be mailed to the Holder at the address or addresses specified
      in
      the Subscription Form within five (5) business days of such delivery and payment
      as set forth in section 4 herein or, if so instructed by the Holder, held for
      pick-up by the Holder at the principal office of the Corporation.
      Notwithstanding any adjustment provided for in section 8 herein, the Corporation
      shall not be required upon the exercise of any Warrants to issue fractional
      Common Shares in satisfaction of its obligations hereunder and the Holder
      understands and agrees that it will not be entitled to any cash payment or
      other
      form of compensation in respect of a fractional Common Share that might
      otherwise have been issued.

     

    6. The
      holding of a Warrant shall not constitute the Holder a shareholder of the
      Corporation nor entitle him to any right or interest in respect thereof except
      as herein expressly provided.

     

    7. The
      Corporation covenants and agrees that until the Expiry Time, while any of the
      Warrants shall be outstanding, it shall reserve and there shall remain unissued
      out of its authorized capital a sufficient number of Common Shares to satisfy
      the right of purchase herein provided, as such right of purchase may be adjusted
      pursuant to sections 8 and 9 herein. The Corporation further covenants and
      agrees that while any of the Warrants shall be outstanding, the Corporation
      shall (a) comply with the securities legislation applicable to it in
      order
      that the Corporation continue as a reporting issuer, or analogous
      entity,
      not in
      default of any requirements of such legislation; (b) use its commercially
      reasonable best efforts to do or cause to be done all things necessary to
      preserve and maintain its corporate existence; and (c) at its own expense
      expeditiously use its commercially reasonable best efforts to obtain the listing
      of such Common Shares (subject to issue or notice of issue) on each stock
      exchange or over-the-counter market on which the Corporation’s Common Shares may
      be listed from time to time. All Common Shares which shall be issued upon the
      exercise of the right to purchase herein provided for, upon payment therefor
      of
      the amount at which such Common Shares may at the time be purchased pursuant
      to
      the provisions hereof, shall be issued as fully paid and non-assessable shares
      and the holders thereof shall not be liable to the Corporation or its creditors
      in respect thereof.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

      
        	8.	
                (a)

              	
                For
                  the purpose of this section 8, unless there is something in the
                  subject
                  matter or context inconsistent therewith, the words and terms defined
                  below shall have the respective meanings specified
                  therefor:

              

      

    

     

    "Current
      Market Price"
      of the
      Common Shares at any date means the price per share equal to the weighted
      average price at which the Common Shares have traded on the Toronto Stock
      Exchange (the "TSX")
      or, if
      the Common Shares are not then listed on the TSX, on such other Canadian stock
      exchange on which the shares trade as may be selected by the directors of the
      Corporation 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 twenty consecutive trading days ending not more than five (5) business
      days
      before such date; provided that the weighted average 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 twenty 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 such firm of independent chartered accountants as may be selected
      by the directors of the Corporation;

     

    "director"
      means a
      director of the Corporation for the time being and, unless otherwise specified
      herein, a reference to action "by the directors" means action by the directors
      of the Corporation as a board or, whenever empowered, action by the executive
      committee of such board; and

     

    "trading
      day"
      with
      respect to a stock exchange or over-the-counter market means a day on which
      such
      stock exchange or market is open for business.

    
       

      
        	 	
                (b)

              	
                If
                  and whenever at any time after the date hereof and prior to the
                  Expiry
                  Time the Corporation shall (i) subdivide or redivide its then outstanding
                  Common Shares into a greater number of Common Shares, (ii) reduce,
                  combine
                  or consolidate its then outstanding Common Shares into a lesser
                  number of
                  Common Shares or (iii) issue Common Shares (or securities exchangeable
                  for
                  or convertible into Common Shares) to the holders of all or substantially
                  all of its then outstanding Common Shares by way of a stock dividend
                  or
                  other distribution (any of such events herein called a "Common
                  Share Reorganization"),
                  then the Exercise Price shall be adjusted effective immediately
                  after the
                  effective date of any such event in (i) or (ii) above or the record
                  date
                  at which the holders of Common Shares are determined for the purpose
                  of
                  any such dividend or distribution in (iii) above, as the case may
                  be, by
                  multiplying the Exercise Price in effect on such effective date
                  or record
                  date, as the case may be, by a fraction, the numerator of which
                  shall be
                  the number of Common Shares outstanding on such effective date
                  or record
                  date, as the case may be, before giving effect to such Common Share
                  Reorganization and the denominator of which shall be the number
                  of Common
                  Shares outstanding immediately after giving effect to such Common
                  Share
                  Reorganization including, in the case where securities exchangeable
                  for or
                  convertible into Common Shares are distributed, the number of Common
                  Shares that would be outstanding if such securities were exchanged
                  for or
                  converted into Common
                  Shares.

              

      

    

         

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

      
         

        
          	 	
                  (c)

                	
                  If
                    at any time after the date hereof and prior to the Expiry Time
                    the
                    Corporation shall fix a record date for the issue or distribution
                    to the
                    holders of all or substantially all of the outstanding Common
                    Shares, of
                    rights, options or warrants pursuant to which such holders are
                    entitled,
                    during a period expiring not more than 45 days after the record
                    date for
                    such issue (such period being the "Rights
                    Period"),
                    to subscribe for or purchase Common Shares or securities exchangeable
                    for
                    or convertible into Common Shares at a price per share (or in
                    the case of
                    securities exchangeable for or convertible into Common Shares
                    at an
                    exchange or conversion price per share at the date of issue of
                    such
                    securities) of less than 95% of the Current Market Price of the
                    Common
                    Shares on such record date (any of such events being herein called
                    a
                    "Rights
                    Offering"),
                    the Exercise Price shall be adjusted effective immediately after
                    the
                    record date for the Rights Offering to the amount determined
                    by
                    multiplying the Exercise Price in effect on such record date
                    by a
                    fraction:

                

        

      

    

         

    
      	 	
              (i)

            	
              the
                numerator of which shall be the aggregate
                of

            

    

     

    
      	 	
              (A)

            	
              the
                number of Common Shares outstanding on the record date for the Rights
                Offering; and

            

    

     

    
      	 	
              (B)

            	
              the
                quotient determined by dividing

            

    

     

    
      	 	
              (I)

            	
              either
                (a) the product of the number of Common Shares offered during the
                Rights
                Period pursuant to the Rights Offering and the price at which such
                Common
                Shares are offered, or, (b) the product of the exchange or conversion
                price of the securities so offered and the number of Common Shares
                for or
                into which the securities offered pursuant to the Rights Offering
                may be
                exchanged or converted, as the case may be,
                by

            

    

     

    
      	 	
              (II)

            	
              the
                Current Market Price of the Common Shares as of the record date for
                the
                Rights Offering; and

            

    

     

    
      	 	
              (ii)

            	
              the
                denominator of which shall be the aggregate of the number of Common
                Shares
                outstanding on such record date and the number of Common Shares offered
                pursuant to the Rights Offering (including in the case of the issue
                or
                distribution of securities exchangeable for or convertible into Common
                Shares the number of Common Shares for or into which such securities
                may
                be exchanged or converted).

            

    

     

    If
      by the
      terms of the rights, options, or warrants referred to in this section 8(c),
      there is more than one purchase, conversion or exchange price per Common Share,
      the aggregate price of the total number of additional Common Shares offered
      for
      subscription or purchase, or the aggregate conversion or exchange price of
      the
      convertible or exchangeable securities so offered, shall be calculated for
      purposes of the adjustment on the basis of the lowest purchase, conversion
      or
      exchange price per Common Share, as the case may be. Any Common Shares owned
      by
      or held for the account of the Corporation shall be deemed not to be outstanding
      for the purpose of any such calculation. To the extent that any adjustment
      in
      the Exercise Price occurs pursuant to this section 8(c) as a result of the
      fixing by the Corporation of a record date for the issue or distribution of
      rights, options or warrants referred to in this section 8(c), the Exercise
      Price
      shall be readjusted immediately after the expiry of any relevant exchange,
      conversion or exercise right to the Exercise Price which would then be in effect
      based upon the number of Common Shares actually issued and remaining issuable
      after such expiry and shall be further readjusted in such manner upon the expiry
      of any further such right.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    If
      the
      Holder has exercised this Warrant Certificate in accordance herewith during
      the
      period beginning after the record date for a Rights Offering and ending on
      the
      last day of the Rights Period thereunder, the Holder will, in addition to the
      Common Shares to which it is otherwise entitled upon such exercise, be entitled
      to that number of additional Common Shares equal to the difference, if any,
      between (x) the result obtained when the Exercise Price in effect immediately
      prior to the end of such Rights Offering pursuant to this subsection is
      multiplied by the number of Common Shares received upon the exercise of this
      Warrant Certificate during such period, and the resulting product is divided
      by
      the Exercise Price as adjusted for such Rights Offering pursuant to this
      subsection provided that the provisions of section 9 herein will be applicable
      to any fractional interest in a Common Share to which such Holder might
      otherwise be entitled and (y) the number of Common Shares received upon the
      exercise of this Warrant Certificate during such period. Such additional Common
      Shares will be deemed to have been issued to the Holder immediately following
      the end of the Rights Period and a certificate for such additional Common Shares
      will be delivered to such Holder within ten (10) business days following the
      end
      of the Rights Period.

    
       

      
        	 	
                (d)

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

              

      

    

     

    
      
        	 	
                (i)

              	
                shares
                  of the Corporation of any class other than Common
                  Shares;

              

      

    

     

    
      	 	
              (ii)

            	
              rights,
                options or warrants to acquire Common Shares or securities exchangeable
                for or convertible into Common Shares (other than rights, options
                or
                warrants pursuant to which holders of Common Shares are entitled,
                during a
                period expiring not more than 45 days after the record date for such
                issue, to subscribe for or purchase Common Shares at a price per
                share (or
                in the case of securities exchangeable for or convertible into Common
                Shares at an exchange or conversion price per share at the date of
                issue
                of such securities) of at least 95% of the Current Market Price of
                the
                Common Shares on such record date);

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      
        	 	
                (iii)

              	
                evidences
                  of indebtedness of the Corporation;
                  or

              

      

    

     

    
      	 	
              (iv)

            	
              any
                property or assets of the Corporation (for greater certainty, excluding
                a
                cash dividend);

            

    

     

    and
      if
      such issue or distribution does not constitute a Common Share Reorganization
      or
      a Rights Offering (any of such non-excluded events being herein called a
      "Special
      Distribution"),
      the
      Exercise Price shall be adjusted effective immediately after the record date
      for
      the Special Distribution to the amount determined by multiplying the Exercise
      Price in effect on the record date for the Special Distribution by a
      fraction:

    
       

      
        	 	
                (A)

              	
                the
                  numerator of which shall be the difference
                  between

              

      

    

     

    
      	 	
              (I)

            	
              the
                product of the number of Common Shares outstanding on such record
                date and
                the Current Market Price of the Common Shares on such record date,
                and

            

    

     

    
      	 	
              (II)

            	
              the
                fair value, as determined by the directors of the Corporation, to
                the
                holders of the Common Shares of the shares, rights, options, warrants,
                evidences of indebtedness or property or assets to be issued or
                distributed in the Special Distribution,
                and

            

    

     

    
      	 	
              (B)

            	
              the
                denominator of which shall be the product obtained by multiplying
                the
                number of Common Shares outstanding on such record date by the Current
                Market Price of the Common Shares on such record
                date.

            

    

     

    Any
      Common Shares owned by or held for the account of the Corporation shall be
      deemed not to be outstanding for the purpose of such calculation. To the extent
      that any adjustment in the Exercise Price occurs pursuant to this section 8(d)
      as a result of the fixing by the Corporation of a record date for the issue
      or
      distribution of rights, options or warrants to acquire Common Shares or
      securities exchangeable for or convertible into Common Shares referred to in
      this section 8(d), the Exercise Price shall be readjusted immediately after
      the
      expiry of any relevant exercise, exchange or conversion right to the amount
      which would then be in effect if the fair market value had been determined
      on
      the basis of the number of Common Shares issued and remaining issuable
      immediately after such expiry, and shall be further readjusted in such manner
      upon the expiry of any further such right.

    
       

      
        	 	
                (e)

              	
                If
                  and whenever at any time after the date hereof and prior to the
                  Expiry
                  Time there is a capital reorganization of the Corporation or a
                  reclassification or other change in the Common Shares (other than
                  a Common
                  Share Reorganization) or a consolidation or merger or amalgamation
                  of the
                  Corporation with or into any other corporation or other entity
                  (other than
                  a consolidation, merger or amalgamation which does not result in
                  any
                  reclassification of the outstanding Common Shares or a change of
                  the
                  Common Shares into other securities), or a transfer of all or
                  substantially all of the Corporation's undertaking and assets to
                  another
                  corporation or other entity in which the holders of Common Shares
                  are
                  entitled to receive shares, other securities or other property
                  (any of
                  such events being called a "Capital
                  Reorganization"),
                  after the effective date of the Capital Reorganization the Holder
                  shall be
                  entitled to receive, and shall accept, for the same aggregate
                  consideration, upon exercise of the Warrants, in lieu of the number
                  of
                  Common Shares to which the Holder was theretofore entitled upon
                  the
                  exercise of the Warrants, the kind and aggregate number of Common
                  Shares
                  and other securities or property resulting from the Capital Reorganization
                  which the Holder would have been entitled to receive as a result
                  of the
                  Capital Reorganization if, on the effective date thereof, the Holder
                  has
                  been the registered holder of the number of Common Shares to which
                  the
                  Holder was theretofore entitled to purchase or receive upon the
                  exercise
                  of the Warrants. If necessary, as a result of any Capital Reorganization,
                  appropriate adjustments shall be made in the application of the
                  provisions
                  of this Warrant Certificate with respect to the rights and interest
                  thereafter of the Holder to the end that the provisions of this
                  Warrant
                  Certificate shall thereafter correspondingly be made applicable
                  as nearly
                  as may reasonably be possible in relation to any shares or other
                  securities or property thereafter deliverable upon the exercise
                  of this
                  Warrant Certificate.

              

      

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                (f)

              	
                If
                  and whenever at any time after the date hereof and prior to the
                  Expiry
                  Time, any of the events set out in sections 8(a), (b), (c), (d)
                  or (e)
                  herein shall occur and the occurrence of such event results in
                  an
                  adjustment of the Exercise Price pursuant to the provisions of
                  this
                  section 8, then the number of Common Shares purchasable pursuant
                  to this
                  Warrant shall be adjusted contemporaneously with the adjustment
                  of the
                  Exercise Price by multiplying the number of Common Shares then
                  otherwise
                  purchasable on the exercise thereof by a fraction, the numerator
                  of which
                  shall be the Exercise Price in effect immediately prior to the
                  adjustment
                  and the denominator of which shall be the Exercise Price resulting
                  from
                  such adjustment.

              

      

    

     

    
      
        	 	
                (g)

              	
                If
                  the Corporation takes any action affecting its Common Shares to
                  which the
                  foregoing provisions of this section 8, in the opinion of the board
                  of
                  directors of the Corporation, acting in good faith, are not strictly
                  applicable, or if strictly applicable would not fairly adjust the
                  rights
                  of the Holder against dilution in accordance with the intent and
                  purposes
                  hereof, or would otherwise materially affect the rights of the
                  Holder
                  hereunder, then the Corporation shall, subject to the approval
                  of the TSX
                  (or such other stock exchange or quotation system on which the
                  Common
                  Shares are then listed and posted (or quoted) for trading, as applicable),
                  execute and deliver to the Holder an amendment hereto providing
                  for an
                  adjustment in the application of such provisions so as to adjust
                  such
                  rights as aforesaid in such manner as the board of directors of
                  the
                  Corporation may determine to be equitable in the circumstances,
                  acting in
                  good faith. The failure of the taking of action by the board of
                  directors
                  of the Corporation to so provide for any adjustment on or prior
                  to the
                  effective date of any action or occurrence giving rise to such
                  state of
                  facts will be conclusive evidence that the board of directors has
                  determined that it is equitable to make no adjustment in the
                  circumstances.

              

      

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    9. The
      following rules and procedures shall be applicable to the adjustments made
      pursuant to section 8 herein:

     

    
      	 	
              (a)

            	
              any
                Common Shares owned or held by or for the account of the Corporation
                shall
                be deemed not be to outstanding except that, for the purposes of
                section 8
                herein, any Common Shares owned by a pension plan or profit sharing
                plan
                for employees of the Corporation or any of its subsidiaries shall
                not be
                considered to be owned or held by or for the account of the
                Corporation;

            

    

     

    
      	 	
              (b)

            	
              no
                adjustment in the Exercise Price or the number of Common Shares
                purchasable pursuant to this Warrant shall be required unless a change
                of
                at least 1% of the prevailing Exercise Price or the number of Common
                Shares purchasable pursuant to this Warrant would result, provided,
                however, that any adjustment which, except for the provisions of
                this
                section 9(b), would otherwise have been required to be made, shall
                be
                carried forward and taken into account in any subsequent
                adjustment;

            

    

     

    
      	 	
              (c)

            	
              the
                adjustments provided for in section 8 herein are cumulative and shall
                apply to successive subdivisions, consolidations, dividends, distributions
                and other events resulting in any adjustment under the provisions
                of such
                item;

            

    

     

    
      	 	
              (d)

            	
              in
                the absence of a resolution of the board of directors of the Corporation
                fixing a record date for any dividend or distribution referred to
                in
                section 8(a)(iii) herein, the Corporation shall be deemed to have
                fixed as
                the record date therefor the date on which such dividend or distribution
                is effected;

            

    

     

    
      	 	
              (e)

            	
              if
                the Corporation sets a record date to take any action and thereafter
                and
                before the taking of such action abandons its plan to take such action,
                then no adjustment to the Exercise Price will be required by reason
                of the
                setting of such record date;

            

    

     

    
      	 	
              (f)

            	
              as
                a condition precedent to the taking of any action which would require
                any
                adjustment to the Warrants evidenced hereby, including the Exercise
                Price,
                the Corporation must take any corporate action which may be necessary
                in
                order that the Corporation shall have unissued and reserved in its
                authorized capital and may validly and legally issue as fully paid
                and
                non-assessable all of the shares or other securities which the Holder
                is
                entitled to receive on the full exercise thereof in accordance with
                the
                provisions hereof;

            

    

     

    
      	 	
              (g)

            	
              forthwith,
                but no later than fourteen (14) days, after any adjustment to the
                Exercise
                Price or the number of Common Shares purchasable pursuant to the
                Warrants,
                the Corporation shall provide to the Holder a certificate of an officer
                of
                the Corporation certifying as to the amount of such adjustment and,
                in
                reasonable detail, describing the event requiring and the manner
                of
                computing or determining such
                adjustment;

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    
      	 	
              (h)

            	
              any
                question that at any time or from time to time arises with respect
                to the
                amount of any adjustment to the Exercise Price or other adjustment
                pursuant to section 8 herein shall be conclusively determined by
                a firm of
                independent chartered accountants (who may be the Corporation's auditors)
                and shall be binding upon the Corporation and the
                Holder;

            

    

     

    
      	 	
              (i)

            	
              any
                adjustment to the Exercise Price under the terms of this Warrant
                Certificate shall be subject to the prior approval of the TSX (or
                such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as applicable);
                and

            

    

     

    
      	 	
              (j)

            	
              in
                case the Corporation, after the date of issue of this Warrant Certificate,
                takes any action affecting the Common Shares, other than an action
                described in section 8 herein, which in the opinion of the directors
                of
                the Corporation would materially affect the rights of the Holder,
                the
                Exercise Price will be adjusted in such manner, if any, and at such
                time,
                by action by the directors of the Corporation but subject in all
                cases to
                any necessary regulatory approval, including approval of the TSX
                (or such
                other stock exchange or quotation system on which the Common Shares
                are
                then listed and posted (or quoted) for trading, as applicable). Failure
                of
                the taking of action by the directors of the Corporation so as to
                provide
                for an adjustment on or prior to the effective date of any action
                by the
                Corporation affecting the Common Shares will be conclusive evidence
                that
                the board of directors of the Corporation has determined that it
                is
                equitable to make no adjustment in the
                circumstances.

            

    

     

    10. On
      the
      happening of each and every such event set out in section 8 herein, the
      applicable provisions of this Warrant Certificate, including the Exercise Price,
      shall, ipso
      facto,
      be
      deemed to be amended accordingly and the Corporation shall take all necessary
      action so as to comply with such provisions as so amended.

     

    11. The
      Corporation shall not be required to deliver certificates for Common Shares
      while the share transfer books of the Corporation are properly closed, having
      regard to the provisions of sections 8 and 9 herein, prior to any meeting of
      shareholders or for the payment of dividends or for any other purpose and in
      the
      event of the surrender of any Warrant in accordance with the provisions hereof
      and the making of any subscription and payment for the Common Shares called
      for
      thereby during any such period, delivery of certificates for Common Shares
      may
      be postponed for not more than five (5) business days after the date of the
      re-opening of said share transfer books; provided, however, that any such
      postponement of delivery of certificates shall be without prejudice to the
      right
      of the Holder so surrendering the same and making payment during such period
      to
      receive after the share transfer books shall have been re-opened such
      certificates for the Common Shares called for, as the same may be adjusted
      pursuant to sections 8 and 9 herein as a result of the completion of the event
      in respect of which the transfer books were closed.

     

    12. Subject
      as hereinafter provided, all or any of the rights conferred upon the Holder
      by
      the terms hereof may be enforced by the Holder by appropriate legal proceedings.
      No recourse under or upon any obligation, covenant or agreement contained herein
      shall be had against any shareholder or officer of the Corporation either
      directly or through the Corporation, it being expressly agreed and declared
      that
      the obligations under the Warrants are solely corporate obligations and that
      no
      personal liability whatever shall attach to or be incurred by the shareholders
      or officers of the Corporation or any of them in respect thereof, any and all
      rights and claims against every such shareholder, officer or director being
      hereby expressly waived as a condition of and as a consideration for the issue
      of the Warrants.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    13. The
      Holder may subscribe for and purchase any lesser number of Common Shares than
      the number of Common Shares expressed in any Warrant Certificate. In the case
      of
      any subscription for a lesser number of Common Shares than expressed in any
      Warrant Certificate, the Holder hereof shall be entitled to receive, at no
      cost
      to the Holder, a new Warrant Certificate in respect of the balance of Warrants
      not then exercised. Such new Warrant Certificate shall be mailed to the Holder
      by the Corporation or, at its direction, the transfer agent of the Corporation,
      contemporaneously with the mailing of the certificate or certificates
      representing the Common Shares issued pursuant to section 5 herein.

     

    14. If
      any
      Warrant Certificate becomes stolen, lost, mutilated or destroyed, the
      Corporation shall, on such terms as it may in its discretion impose, acting
      reasonably, issue and sign a new Warrant Certificate of like denomination,
      tenor
      and date as the Warrant Certificate so stolen, lost, mutilated or destroyed
      for
      delivery to the Holder.

     

    15. The
      Holder may transfer the Warrants represented hereby by:

     

    
      	 	
              (a)

            	
              duly
                completing and executing the transfer form attached as Schedule "B"
                ("Transfer
                Form");
                and

            

    

     

    
      	 	
              (b)

            	
              surrendering
                this Warrant Certificate and the completed Transfer Form, together
                with
                such other documents as the Corporation may reasonably request, to
                the
                Corporation at the address set forth on the Transfer Form or such
                other
                office as may be specified by the Corporation, in a written notice
                to the
                Holder, from time to time,

            

    

     

    provided
      that all such transfers shall be effected in accordance with all applicable
      securities laws, and provided that, after such transfer, the term "Holder"
      shall
      mean and include any transferee or assignee of the current or any future Holder.
      If only part of the Warrants evidenced hereby is transferred, the Corporation
      will deliver to the Holder and the transferee replacement Warrant Certificates
      substantially in the form of this Warrant Certificate.

     

    16. Neither
      the Warrants represented by this Warrant Certificate nor the Common Shares
      issuable upon exercise hereof have been or will be registered under the United
      States Securities Act of 1933, as amended (the "1933
      Act")
      nor
      under the laws of any state of the United States. Subject to certain limited
      exceptions, (i) Warrants may not be exercised within the United States and
      (ii)
      no Common Shares issuable upon exercise of Warrants will be delivered to any
      address in the United States. The Holder acknowledges that a legend to that
      effect may be placed on any certificates representing the Common Shares issued
      on exercise of the rights represented by this Warrant Certificate. Terms used
      in
      this paragraph have the meanings given to them in Regulation S under the 1933
      Act.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    17. Any
      certificate representing Common Shares issued upon the exercise of this Warrant
      prior to the date which is four months and one day after the date hereof will
      bear the following legends:

     

    "UNLESS
      PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
      TRADE THE SECURITY BEFORE MARCH 1, 2007."

     

    and

     

    "THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO STOCK
      EXCHANGE ("TSX"); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH THE
      FACILITIES OF TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY
      ANY
      CERTIFICATE REPRESENTING SUCH SECURITIES IS NOT “GOOD DELIVERY” IN SETTLEMENT OF
      TRANSACTIONS ON TSX."

     

    provided
      that at any time subsequent to the date which is four months after the date
      hereof any certificate representing such Common Shares may be exchanged for
      a
      certificate bearing no such legends. The Corporation hereby covenants and agrees
      that it will use the best efforts thereof to deliver or to cause to be delivered
      a certificate or certificates representing such Common Shares bearing no such
      legends within five business days after receipt of the legended
      certificate.

     

    18. The
      Corporation will maintain a register of holders of Warrants at its principal
      office. The Corporation may deem and treat the registered holder of any Warrant
      Certificate as the absolute owner of the Warrants represented thereby for all
      purposes, and the Corporation shall not be affected by any notice or knowledge
      to the contrary except where the Corporation is required to take notice by
      statute or by order of a court of competent jurisdiction. A Holder shall be
      entitled to the rights evidenced by such Warrant free from all equities or
      rights of set-off or counterclaim between the Corporation and the original
      or
      any intermediate holder thereof and all persons may act accordingly and the
      receipt by any such Holder of the Common Shares purchasable pursuant to such
      Warrant shall be a good discharge to the Corporation for the same and the
      Corporation shall not be bound to inquire into the title of any such Holder
      except where the Corporation is required to take notice by statute or by order
      of a court of competent jurisdiction.

     

    19. The
      Corporation shall notify the Holder forthwith of any change of the Corporation’s
      address.

     

    20. The
      registered holders of Warrants shall have the power from time to time by an
      extraordinary resolution (as hereinafter defined):

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (a)

            	
              to
                sanction any modification, abrogation, alteration or compromise of
                the
                rights of the registered holders of Warrants against the Corporation
                which
                shall be agreed to by the Corporation;
                and/or

            

    

     

    
      	 	
              (b)

            	
              to
                assent to any modification of or change in or omission from the provisions
                contained herein or in any instrument ancillary or supplemental hereto
                which shall be agreed to by the Corporation;
                and/or

            

    

     

    
      	 	
              (c)

            	
              to
                restrain any registered holder of a Warrant from taking or instituting
                any
                suit or proceedings against the Corporation for the enforcement of
                any of
                the covenants on the part of the Corporation conferred upon the registered
                holders of Warrants by the terms of the
                Warrants.

            

    

     

    Any
      such
      extraordinary resolution as aforesaid shall be binding upon all the registered
      holders of Warrants whether or not assenting in writing to any such
      extraordinary resolution, and each registered holder of any of the Warrants
      shall be bound to give effect thereto accordingly. Such extraordinary resolution
      shall, where applicable, be binding on the Corporation which shall give effect
      thereto accordingly.

     

    The
      Corporation shall forthwith upon receipt of an extraordinary resolution provide
      notice to all registered holders of Warrants of the date and text of such
      resolution. The registered holders of Warrants assenting to an extraordinary
      resolution agree to provide the Corporation forthwith with a copy of any
      extraordinary resolution passed.

     

    The
      expression "extraordinary resolution" when used herein shall mean a resolution
      assented to in writing, in one or more counterparts, by the registered holders
      of Warrants calling in the aggregate for not less than seventy-five per cent
      (75%) of the aggregate number of Common Shares called for by all of the Warrants
      which are, at the applicable time, outstanding.

     

    21. All
      notices to be sent hereunder shall be deemed to be validly given to the
      registered holders of the Warrants if delivered personally or if sent by
      registered letter through the post addressed to such holders at their post
      office addresses appearing in the register of Warrant holders caused to be
      maintained by the Corporation, and such notice shall be deemed to have been
      given, if delivered personally when so delivered, and if sent by post on the
      fifth business day next following the post thereof.

     

    22. If
      for
      any reason, other than the failure or default of the Holder, the Corporation
      is
      unable to issue and deliver the Common Shares or other securities as
      contemplated herein to the Holder upon the proper exercise by the Holder of
      the
      right to purchase any of the Common Shares purchasable upon exercise of the
      Warrants represented hereby, the Corporation may pay, at its option and in
      complete satisfaction of its obligations and the rights of the Holder hereunder,
      to the Holder, in cash, an amount equal to the difference between the Exercise
      Price and the Current Market Price of such Common Shares or other securities
      on
      the date of exercise by the Holder, and upon such payment the Corporation shall
      have no liability or other obligation to the Holder relating to or in respect
      of
      the Warrants or this Warrant Certificate.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    23. This
      Warrant Certificate shall be governed by the laws of the Province of Ontario
      and
      the federal laws of Canada applicable herein.

     

    24. All
      Warrants shall rank pari
      passu,
      whatever may be the actual date of issue of the same.

     

    25. This
      Warrant Certificate shall enure to the benefit of and shall be binding upon
      the
      Holder and the Corporation and their respective successors and
      assigns.

     

    26. All
      references herein to monetary amounts are references to lawful money of Canada,
      unless otherwise specified herein.

     

    27. Any
      notice, document or other communication required or permitted by this
      Compensation Warrant Certificate to be given by the Holder or the Corporation
      shall be in writing and is sufficiently given if delivered personally, or if
      delivered or if transmitted by any form of recorded telecommunication tested
      prior to transmission, to such person addressed as follows:

     

    
      	 	
              (a)

            	
              if
                to the Holder:

            

    

     

    to
      the
      address on the face page hereof

     

    
      	 	
              (b)

            	
              if
                to the Corporation:

            

    

     

    Apollo
      Gold Corporation

    5655
      S.
      Yosemite Street, Suite 200

    Greenwood
      Village, Colorado, 80111-3220

     

    Attention: Chief
      Financial Officer

     

    Telephone
      No.: (720)
      886-9656

     

    
      
        Facsimile
          No.: (720)
          482-0957 

      

    

     

    Notice
      so
      delivered shall be deemed to have been given on the Business Day that it is
      received. Notices transmitted by a form of recorded telecommunication shall
      be
      deemed given on the day of transmission. The Holder or the Corporation may
      from
      time to time notify the other in the manner provided herein of any change of
      address or facsimile number which thereafter, until changed by like notice,
      shall be the address or facsimile number of such person for all purposes
      hereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF
      the
      Corporation has caused this Warrant Certificate to be signed by its duly
      authorized officer.

     

    DATED
      as
      of the 30th
      day of
      October, 2006.

     

    
      	 	 	 
	 	APOLLO
              GOLD CORPORATION
	 
 	 
 	 
 
	 	Per:	 
	 	
              

              Authorized
                Signatory

            
	 	 

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    Schedule
      "A"

     

    SUBSCRIPTION
      FORM

     

    TO
      BE COMPLETED IF WARRANTS ARE TO BE EXERCISED:

     

    
      	 	
              TO:

            	
              APOLLO
                GOLD CORPORATION

            

      	 	 	5655 S. Yosemite Street, Suite
              200

      	 	 	Greenwood Village, Colorado,
              80111-3220

      	 	 	 

    

    

    The
      undersigned hereby subscribes for  
      Common
      Shares of Apollo
      Gold Corporation
      according to the terms and conditions set forth in the annexed Warrant
      Certificate (or such number of other securities or property to which such
      Warrant Certificate entitles the undersigned to acquire under the terms and
      conditions set forth in such Warrant Certificate).

    

      
        	
                Address
                  for Delivery of Common Shares:

              	                
                
	 	              
                
	 	                
                
	 	 	 
	 	
                Attention:

              	                                
                

      

    

        

    Exercise
      Price

    Tendered
      (Cdn.$1.00 per

    Common
      Share until October 30, 2007 and Cdn.$1.15 per

    Common
      Share until October 30, 2008

    or
      as
      adjusted)    $                                                                              
           

     

    Dated
      at
         
      ,
      this
            
       day
      of          
      ,
      200 
       .

     

    
      	 	
              )

              )

              )

              )

              )
                

              )

              )

              )

            	               
              
	
              Witness:

               

            	
              Holder's
                Name

                                      
                

            
	
              Authorized
                Signature

                             
                

            
	
              Title
                (if applicable)

            

    

     

    Signature
      guaranteed1:

     

    
      	
              
              

            

    

    1.
      If the
      Common Shares are to be registered in a name other than the name of the
      registered Warrant Holder, the signature of the Warrant Holder must be medallion
      guaranteed by a bank, trust company or a member of a stock exchange in
      Canada.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    Schedule
      "B"

     

    WARRANT
      TRANSFER FORM

     

    FOR
      VALUE
      RECEIVED, subject to receipt of prior written approval of APOLLO GOLD
      CORPORATION (the "Company"),
      the
      undersigned (the "Transferor")
      hereby
      sells, assigns and transfers unto
      (name)              
      (the
      "Transferee")
      of
      (residential
      address)                             
Warrants
      of the Company registered in the name of theundersigned represented by the
      within certificate, and irrevocably appoints the Company as the attorney of
      the
      undersigned to transfer the said securities on the register of transfers for
      the
      said Warrants, with full power of substitution.

     

    
      	
              NOTICE:

            	
              The
                signature of this assignment must correspond with the name as written
                upon
                the face of the certificate, in every particular, without alteration
                or
                enlargement or any change whatever, and must be guaranteed by a bank,
                trust company or a member of a recognized stock exchange. The guarantor
                must affix a stamp bearing the actual words "Signature
                Guaranteed".

            

    

     

    DATED
      this    
       day
      of       
      ,
      20       
      .

     

     

    
      	                      
              	 	         
                              
              
	Signature Guaranteed	 	(Signature of transferring
              Warrantholder)
	 	 	 
	 	 	    
                          
                              
              
	 	 	Name (please print)
	 	 	 
	 	 	            
                   
	 	 	Address
	 	 	 
	 	 	                   
                      

    

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TRANSFEREE
      ACKNOWLEDGMENT

     

    In
      connection with this transfer (check one):

     

    
      	
              
                o

              

            	
              The
                undersigned transferee hereby certifies that (i) it was not offered
                the
                Warrants while in the United States and did not execute this certificate
                while within the United States; (ii) it is not acquiring any of the
                Warrants represented by this Warrant Certificate by or on behalf
                of any
                person within the United States; and (iii) it has in all other respects
                complied with the terms of Regulation S of United States Securities
                Act of
                1933, as amended (the "1933
                Act"),
                or any successor rule or regulation of the United States Securities
                and
                Exchange Commission as presently in
                effect.

            

    

     

    
      	
              o

            	
              The
                undersigned transferee is delivering a written opinion of U.S. Counsel
                acceptable to the Company to the effect that this transfer of Warrants
                has
                been registered under the 1933 Act or is exempt from registration
                thereunder.

            

    

    
 

    
      
        	              
                         	 	                         
                
	(Signature of Transferee)	 	 
	 	 	 
	                        
                	 	                   
                          
                                
                
	Date	 	Name of Transferee (please
                print)
	 	 	 

      

    

     

    The
      Warrants and the common shares issuable upon exercise of the Warrants shall
      only
      be transferable in accordance with applicable laws. The Warrants may only be
      exercised in the manner required by the certificate representing the Warrants
      and the Warrant Exercise Form attached thereto. Any common shares acquired
      pursuant to this Warrant shall be subject to applicable hold periods and any
      certificate representing such common shares will bear restrictive
      legends.

     

     

    
      
        
        

      

      b2

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