Document:

Exhibit 10.1

 

George Biltz Employment Letter

 

July 15, 2013

 

Dear George,

 

I am pleased to offer you the position of Chief Strategy Officer with Axiall Corporation.  In this position you will report directly to our President and Chief Executive Officer, Paul Carrico.

 

The specific terms of the offer are:

 

Annual Base Salary:  $500,000 per year, less applicable taxes and withholdings as required by law (“Base Salary”).

 

Annual Non-Equity Incentive Awards:  Our Incentive Bonus Program (“Bonus”) operates on a calendar year basis with the payment, if any, being made once per year, usually in February or early March of the year immediately following the calendar year in which any Bonus is earned.  To be eligible for a Bonus payment, an employee must be employed as of December 31 of the calendar year in which the Bonus is earned.  The annual Bonus target for your position is 75% of Base Salary with a potential payment range of 0% to 200% of target depending on the Company’s attainment of its financial and operational goals and your attainment of certain to be agreed upon personal goals.  For 2013, you will receive a prorated share of the 2013 Bonus based on the number of days in 2013 that you are employed with the Company.  If you are employed on August 1, 2014 you will receive a retention bonus of $50,000 less applicable taxes.

 

Initial Equity Grant and Long-Term Equity Based Awards:  Effective the date you officially begin employment with the Company, you will be provided a one-time grant of Restricted Stock Units (“RSUs”) with an economic value of $1,000,000.  The number of RSUs granted to you will be calculated based upon the volume weighted average trading price of the Company’s common stock for the ten consecutive trading days prior to the grant date. This initial equity grant will vest in three equal increments on each of the first three anniversaries of your start date, provided, however, that you shall not dispose of any of the shares acquired via this initial grant until the third anniversary of your start date, and subject to the terms of the Company’s then-current Statement of Policy on Insider Trading and Company Information.  You will also be eligible for annual long-term incentive awards commencing in 2014, which the Board typically grants during the first half of each year, and which will be subject to such additional terms and conditions as determined by the Board.  The annual equity target for your position is currently $1,000,000.  Your initial grant of RSUs and any subsequent equity grants made to you will be subject to the terms and conditions set forth in the equity and performance incentive plan under which those grants are made to you, as well as the terms of the restricted stock unit agreement (or other applicable equity

 

 

agreement) entered into between you and the Company, the form of which contains one-year non-competition and non-solicitation clauses.

 

Executive Benefits:  In addition to the Other Employee Benefits listed below, you will receive all other benefits offered to other Vice Presidents.  The Company will also provide you with a leased car with a value of approximately $45,000 along with reimbursement for related costs of such car consistent with Company practices.  Participation in any Company compensation and benefit program is determined by the Leadership Development & Compensation Committee and the Board including making amendments or modifications to participation and programs from time to time.

 

Change In Control (CIC) Protection:  You will participate in the Executive Change of Control Severance Plan (“CIC Plan”).  In the event of a Change in Control, as defined in the CIC Plan, (a “CIC”), any benefits will be paid consistent with the terms of the CIC Plan.

 

Severance:   If during the first 24 months of your employment with the Company, your employment is terminated other than in connection with a CIC (i.e., if you are entitled to benefits under the CIC Plan) involuntarily by the Company for any reason other than “Cause” (as such term is defined in the CIC Plan but without regard for the fact a CIC shall not have occurred) the Company will pay to you 1 year of severance pay (1 year of your then annual Base Salary plus 1 year of your then Bonus target).  Such severance would be paid in the time and manner described in the CIC Plan for payment of severance amounts following a CIC.  In addition, as a condition to receiving such severance pay, you would be required to enter into and not revoke a customary release of claims agreement with the Company.

 

Vacation:  You will be eligible for 5 weeks of vacation annually.

 

Other Employee Benefits:  You will be eligible for all employee benefits provided to non-officer employees by Axiall including:

 

Medical, Dental and Vision Benefits

401(k) Savings Plan

Group Life Insurances, Short-term Disability and Long-term Disability

Relocation pursuant to the Axiall Relocation Plan

 

The Company reserves the right to add, modify, alter or eliminate such benefits at any time, with or without prior notice.

 

Although the terms set out in this letter describe information about our offer of employment, nothing in this or any other communication is intended to alter the at-will status of your employment or create any employment contract or guarantee beyond what is specifically stated herein.

 

If you need assistance or have questions, please contact us.

 

Sincerely,

 

 

Dean Adelman

VP, Human ResourcesPolyMet Mining Corp.: Exhibit 4.4 - Filed by newsfilecorp.com

 

 

AMENDED AND RESTATED 
SHAREHOLDER RIGHTS PLAN
AGREEMENT 

POLYMET MINING CORP. 

(the “Corporation”) 

AND 

COMPUTERSHARE INVESTOR SERVICES INC. 
(formerly
known as Pacific Corporate Trust Company) 

(the “Rights Agent”) 

 

	 
	 
	DATED AS OF JULY 9, 2013 
	(amending and restating a shareholder rights 
	plan agreement dated as of December 4, 2003 and as
      amended and restated May 25, 2007 and 
	June 17, 2008) 
	 
	 

TABLE OF CONTENTS

	ARTICLE 1
      INTERPRETATION 	2
    
	               
         1.1 	Definitions:
      	2 
	           
             1.2 	Currency: 	16

	               
         1.3 	Headings and
      References: 	16 
	           
             1.4 	Calculation of Number and Percentage of Beneficial
      Ownership of Outstanding Voting Shares: 	 16
    
	               
         1.5 	Acting Jointly
      or in Concert: 	17 
	           
             1.6 	Generally Accepted Accounting Principles: 	17

	  	  	  
	ARTICLE 2
      THE RIGHTS 	17
      
	               
         2.1 	Legend on
      Common Share Certificates: 	17 
	           
             2.2 	Initial Exercise Price; Exercise of Rights; Detachment of
      Rights: 	18

	               
         2.3 	Adjustments to
      Exercise Price; Number of Rights: 	21 
	           
             2.4 	Date on Which Exercise is Effective: 	26

	               
         2.5 	Execution,
      Authentication, Delivery and Dating of Rights Certificates: 	 26
	           
             2.6 	Registration, Transfer and Exchange: 	27

	               
         2.7 	Mutilated,
      Destroyed, Lost and Stolen Rights Certificates: 	28 
	           
             2.8 	Persons Deemed Owners: 	29

	               
         2.9 	Delivery and
      Cancellation of Certificates: 	29 
	           
             2.10 	Agreement of Rights Holders: 	29

	               
         2.11 	Rights
      Certificate Holder Not Deemed a Shareholder: 	30 
	  	  	  
	ARTICLE 3 ADJUSTMENTS TO
      THE RIGHTS 	30 
	           
             3.1 	Flip-in Event: 	30

	               
         3.2 	Exchange
      Option: 	32 
	  	  	  
	ARTICLE 4 THE RIGHTS
      AGENT 	33 
	           
             4.1 	General: 	33

	               
         4.2 	Merger or
      Amalgamation or Change of Name of Rights Agent: 	34 
	           
             4.3 	Duties of Rights Agent: 	35

	               
         4.4 	Change of
      Rights Agent: 	37 
	  	  	  
	ARTICLE 5 MISCELLANEOUS
      	37 
	           
             5.1 	Redemption and Waiver: 	37

	               
         5.2 	Expiration:
      	39 
	           
             5.3 	Issue of New Rights Certificates: 	39

	               
         5.4 	Supplements
      and Amendments: 	39 
	           
             5.5 	Fractional Rights and Fractional Common Shares: 	41

	               
         5.6 	Rights of
      Action: 	41 
	           
             5.7 	Regulatory Approvals: 	42

	               
         5.8 	Declaration as
      to Non-Canadian holders: 	42 
	           
             5.9 	Notices: 	42

	               
         5.10 	Costs of
      Enforcement: 	43

- 2 - 

	 	5.11
      	Successors:
      	43
      
	 	5.12
      	Compliance
      with Money Laundering Legislation 	44
      
	 	5.13
      	Privacy
      Laws 	44
      
	 	5.14
      	Benefits
      of this Agreement: 	44
      
	 	5.15
      	Governing
      Law: 	44
      
	 	5.16
      	Severability:
      	44
      
	 	5.17
      	Effective
      Date: 	45
      
	 	5.18
      	Confirmation:
      	45
      
	 	5.19
      	Re-confirmation;
      	45
      
	 	5.20
      	Determinations
      and Actions by the Board of Directors: 	46
      
	 	5.21
      	Counterparts:
      	46
      

	SCHEDULE
      A - FORM OF RIGHTS CERTIFICATE 

SHAREHOLDER RIGHTS PLAN AGREEMENT 

THIS AMENDED AND RESTATED AGREEMENT dated as of July 9,
2013 (amending and restating a shareholder rights plan agreement of the
Corporation dated as of December 4, 2003 and as amended and restated May 25,
2007 and June 17, 2008) 

BETWEEN: 

  
    
      
        POLYMET MINING CORP., a corporation incorporated
          pursuant to the laws of British Columbia and having its registered office at
          1003-1177 West Hastings Street, Vancouver, B.C., V6E 2K3 

        (the “Corporation”) 

      

    

  

OF THE FIRST PART 

AND: 

  
    
      
        COMPUTERSHARE INVESTOR SERVICES INC.,
          (formerly known as Pacific Corporate Trust Company) a trust company under
          the laws of British Columbia and having an office at 510 Burrard Street, 2nd
          Floor, Vancouver, B.C., V6C 3B9 

        (the “Rights Agent”) 

      

    

  

OF THE SECOND PART 

WHEREAS: 

A.         The Board of
Directors of the Corporation determined that it was in the best interests of the
Corporation to adopt a shareholder rights plan (the “Rights Plan”) to
ensure, to the extent possible, that all shareholders of the Corporation are
treated fairly in connection with any take-over bid for the Corporation. 

B.          In
order to adopt the Rights Plan, the Corporation and the Rights Agent entered
into a shareholder rights plan agreement dated as of December 4, 2003 (the
“Original Agreement”). 

C.          In
order to implement the Rights Plan, the Board of Directors: 

	 	(1) 	
      authorized and declared a distribution of one Right in
      respect of each Common Share outstanding at the Record Time;

	 	 	 
	 	(2) 	
      authorized the issuance of one Right in respect of each
      Common Share issued after the Record Time and prior to the earlier of the
      Separation Time and the Expiration Time; and

	 	 	 
	 	(3) 	
      authorized the issuance of Rights Certificates to holders
      of Rights pursuant to the terms and subject to the conditions set forth in
      the Original Agreement.

- 2 - 

D.          The
Board of Directors wished to make certain amendments to the Original Agreement,
which amendments were approved by the Board of Directors on May 25, 2007 and
were approved by the Independent Shareholders in accordance with Section 5.4 of
the Original Agreement at an Annual and Special Meeting of the Shareholders held
on June 27, 2007 (the “2007 Amended and Restated Agreement”). 

E.          The
Board of Directors wished to make certain amendments to the 2007 Amended and
Restated Agreement, which amendments were approved by the Board of Directors on
January 16, 2008 and were approved by the Independent Shareholders in accordance
with Section 5.4 of the Original Agreement at an Annual and Special Meeting of
the Shareholders held on June 17, 2008 (the “2008 Amended and Restated
Agreement”). 

F.          The
Corporation and the Rights Agent wish to amend and restate the 2008 Amended and
Restated Agreement by entering into this Agreement, which amendment and
restatement shall become effective upon the Independent Shareholders approving
the continued existence of the 2008 Amended and Restated Agreement as amended
hereby. 

G.          The
Corporation wishes to confirm its appointment of the Rights Agent to act on
behalf of the Corporation and the holders of Rights, and the Rights Agent is
willing to so act, in connection with the issuance, transfer, exchange and
replacement of Rights Certificates, the exercise of Rights and other matters
referred to in this Agreement. 

          
     NOW THEREFORE, in consideration of the
premises and respective agreements set forth herein, the parties hereto agree as
follows: 

ARTICLE 1 
INTERPRETATION 

1.1                    
Definitions: 

                          For
the purposes of this Agreement, including the recitals thereto, the following
words and terms will, unless the context otherwise requires, have the following
meanings:

	 	(a) 	
      “Acquiring Person” means any Person who is or
      becomes the Beneficial Owner of 20% or more of the outstanding Voting
      Shares, provided that the term “Acquiring Person” will not
  include:

	 	 	 	 	 
	 		(i) 	
      the Corporation or any Subsidiary of the
    Corporation;

	 	 	 	 	 
	 		(ii) 	
      any Person who becomes the Beneficial Owner of 20% or
      more of the outstanding Voting Shares as a result of one or any
      combination of:

	 	 	 	 	 
	 			(A) 	
      a Convertible Security Acquisition;

	 	 	 	 	 
	 			(B) 	
      a Voting Share Reduction;

	 	 	 	 	 
	 			(C) 	
      a Permitted Bid Acquisition;

- 3 - 

	 	(D) 	
      an Exempt Acquisition; or

	 	 	 
	 	(E) 	
      a Pro Rata Acquisition,

	 		
      provided that if a Person becomes the Beneficial Owner of
      20% or more of the outstanding Voting Shares by reason of one or any
      combination of a Convertible Security Acquisition, a Voting Share
      Reduction, a Permitted Bid Acquisition, an Exempt Acquisition or a Pro
      Rata Acquisition and thereafter such Person’s Beneficial Ownership of
      Voting Shares increases by more than 1.0% of the number of Voting Shares
      then outstanding (other than pursuant to a Convertible Security
      Acquisition, a Voting Share Reduction, a Permitted Bid Acquisition, an
      Exempt Acquisition or a Pro Rata Acquisition), then as of the date that
      such Person becomes the Beneficial Owner of such additional Voting Shares,
      such Person will become an “Acquiring Person”;

	 	 	 
	 	(iii) 	
      for a period of ten days after the Disqualification Date
      (as defined below), any Person who becomes the Beneficial Owner of 20% or
      more of the outstanding Voting Shares as a result of such Person becoming
      disqualified from relying on Section 1.1(g)(viii) solely because such
      Person or the Beneficial Owner of such Voting Shares has participated in,
      proposes or announces a current intention to make a Take-Over Bid, or is
      participating in a Take-Over Bid or any plan or proposal relating thereto
      or resulting therefrom, either alone or by acting jointly or in concert
      with any other Person. For the purposes of this definition,
      “Disqualification Date” means the first date of public announcement
      indicating that any Person has made or participated in, is making or
      participating in, or proposes to make or participate in a Take-Over Bid,
      alone or by acting jointly or in concert with any other Person;

	 	 	 
	 	(iv) 	
      an underwriter or member of a banking or selling group
      acting in such capacity that becomes the Beneficial Owner of 20% or more
      of the outstanding Voting Shares in connection with a bona fide
      distribution to the public of securities pursuant to an underwriting
      agreement with the Corporation, or

	 	 	 
	 	(v) 	
      a Person (a “Grandfathered Person”) who is the
      Beneficial Owner of 20% or more of the outstanding Voting Shares or
      Convertible Securities that, if converted or exchanged into Voting Shares,
      would constitute 20% or more of the outstanding Voting Shares, determined
      as at the close of business on the Effective Date; provided that this
      exception will not be, and will cease to be, applicable to a Grandfathered
      Person in the event that such Grandfathered Person, after the Record Time,
      becomes the Beneficial Owner of any additional Voting Shares or
      Convertible Securities that increases its Beneficial Ownership of Voting
      Shares by more than 1.0% of the number of Voting Shares outstanding from
      time to time, other than through a Convertible Security Acquisition, a
      Voting Share Reduction, a Permitted Bid Acquisition, an Exempt
Acquisition, a Pro Rata Acquisition or through the exercise of existing rights
to acquire additional Voting Shares from the Corporation where such rights were
owned by the Grandfathered Person at the Record Time. 

- 4 - 

	 	(b) 	
      “Affiliate” means, when used to indicate a
      relationship with a specified Person, a Person that, directly, or
      indirectly through one or more intermediaries or otherwise, controls, or
      is controlled by, or is under common control with, such specified
      Person.

	 	 	 	 
	 	(c) 	
      “Agreement” means this amended and restated
      shareholder rights plan agreement dated as of July 9, 2013 between the
      Corporation and the Rights Agent, as amended, modified or supplemented
      from time to time (amending and restating a shareholder rights plan
      agreement dated as of December 4, 2003 and as amended and restated May 25,
      2007 and June 17, 2008, between the Corporation and the Rights
    Agent).

	 	 	 	 
	 	(d) 	
      “Amendment Date” means the date upon which this
      Agreement amends, restates and supersedes the 2007 Amended and Restated
      Agreement in accordance with Section 5.16.

	 	 	 	 
	 	(e) 	
      “annual cash dividend” means cash dividends paid
      at regular intervals in any financial year of the Corporation to the
      extent that such cash dividends do not exceed, in the aggregate, the
      greatest of:

	 	 	 	 
	 		(i) 	
      200% of the aggregate amount of cash dividends declared
      payable by the Corporation on its Common Shares in its immediately
      preceding financial year;

	 	 	 	 
	 		(ii) 	
      300% of the arithmetic average of the aggregate amount of
      cash dividends declared payable by the Corporation on its Common Shares in
      its three immediately preceding financial years, and

	 	 	 	 
	 		(iii) 	
      100% of the aggregate consolidated net income of the
      Corporation, before extraordinary items, for its immediately preceding
      financial year.

	 	 	 	 
	 	(f) 	
      “Associate” means, when used to indicate a
      relationship with a specified Person:

	 	 	 	 
	 		(i) 	
      a spouse of that Person;

	 	 	 	 
	 		(ii) 	
      any Person of the same or opposite sex with whom that
      Person is living in a conjugal relationship outside marriage;

	 	 	 	 
	 		(iii) 	
      a child of that Person;

	 	 	 	 
	 		(iv) 	
      another relative of that Person if that relative has the
      same residence as that Person, or

- 5 - 

	 	(v) 	
      any relative of such spouse, child or other Person
      referred to in the immediately preceding clauses (i), (ii), (iii) or (iv)
      above, if that relative has the same residence as the specified
    Person.

	 	(g) 	
      “Beneficial Owner”: A Person shall be deemed the
      “Beneficial Owner” of, and to have “Beneficial Ownership” of, and to
      “Beneficially Own”,

	 	 	 	 
	 		(i) 	
      any securities as to which such Person or any of such
      Person’s Affiliates or Associates is the owner at law or in
  equity;

	 	 	 	 
	 		(ii) 	
      any securities as to which such Person or any of such
      Person’s Affiliates or Associates has the right to become the owner at law
      or in equity (where such right is exercisable within a period of 60 days,
      whether or not on condition or the happening of any contingency or the
      making of any payment) pursuant to any agreement, arrangement, pledge or
      understanding, whether or not in writing (other than (x) customary
      agreements with and between underwriters and/or banking group members
      and/or selling group members with respect to a public offering or private
      placement of securities and (y) pledges of securities in the ordinary
      course of business), or upon the exercise of any conversion exercise or
      exchange or purchase of a right attaching to a Convertible Security, other
      security, warrant or option (other than the Rights) to purchase a Voting
      Share; or

	 	 	 	 
	 		(iii) 	
      any securities which are Beneficially Owned within the
      meaning of Sections 1.1(g)(i) and (ii) by any other Person with whom such
      Person, or any of such Person’s Affiliates, is acting jointly or in
      concert;

provided, however, that a Person shall
not be deemed the “Beneficial Owner” of, or to have “Beneficial
Ownership” of, or to “Beneficially Own”, any security: 

	 	(iv) 	
      where such security has been agreed to be deposited or
      tendered pursuant to a Lock-up Agreement or is otherwise deposited to any
      Take-Over Bid made by such Person, made by any of such Person’s Affiliates
      or Associates or made by any other Person acting jointly or in concert
      with such Person, until such deposited or tendered security has been taken
      up or paid for, whichever shall first occur;

	 	 	 	 
	 	(v) 	
      where such Person, any of such Person’s Affiliates or
      Associates or any other Person acting jointly or in concert with such
      Person holds such security, provided that:

	 	 	 	 
	 		(A) 	
      the ordinary business of any such Person (the
      “Investment Manager”) includes the management of investment funds
      for others (which others, for greater certainty, may include or be limited
      to one or more employee benefit plans or pension plans) and such security
      is held by the Investment Manager in the ordinary course of such business
      in the performance of such Investment Manager’s duties for the account of
      any other Person (a “Client”) including non-discretionary accounts
      held on behalf of a Client by a broker or dealer appropriately registered
  under applicable law;

- 6 - 

	 	(B) 	
      such Person is (1) the manager or trustee (the “Fund
      Manager”) of a mutual fund (a “Mutual Fund”) that is registered
      or qualified to issue its securities to investors under the securities
      laws of any province of Canada or the securities laws of the United States
      and such security is held in the ordinary course of business in the
      performance of the Fund Manager’s duties with respect to the Mutual Fund,
      or (2) a Mutual Fund;

	 	 	 
	 	(C) 	
      such Person (the “Trust Company”) is licensed to
      carry on the business of a trust company under applicable laws and, as
      such, acts as trustee or administrator or in a similar capacity in
      relation to the estates of deceased or incompetent Persons (each an
      “Estate Account”) or in relation to other accounts (each an
      “Other Account”) and holds such security in the ordinary course of
      such duties for such Estate Account or for such Other Accounts;

	 	 	 
	 	(D) 	
      such Person is established by statute for purposes that
      include, and the ordinary business or activity of such Person (the
      “Statutory Body”) includes, the management of investment funds for
      employee benefit plans, pension plans, insurance plans or various public
      bodies;

	 	 	 
	 	(E) 	
      such Person (the “Administrator”) is the
      administrator or trustee of one or more pension funds or plans (a
      “Plan”), or is a Plan, registered or qualified under the laws of
      Canada or any Province thereof or the laws of the United States of America
      or any State thereof, or

	 	 	 
	 	(F) 	
      such Person (the “Crown Agent”) is a Crown agent
      or agency;

provided, in any of the above cases,
that the Investment Manager, the Fund Manager, the Mutual Fund, the Trust
Company, the Statutory Body, the Administrator, the Plan or the Crown Agent, as
the case may be, is not then making a Take-Over Bid or has not then announced an
intention to make a Take-Over Bid alone or acting jointly or in concert with any
other Person, other than an Offer to Acquire Voting Shares or other securities
(x) pursuant to a distribution by the Corporation, (y) by means of a Permitted
Bid or (z) by means of ordinary market transactions (including prearranged
trades entered into in the ordinary course of business of such Person) executed
through the facilities of a stock exchange or organized over-the-counter market;

- 7 - 

	 	(vi) 	
      where such Person is (A) a Client of the same Investment
      Manager as another Person on whose account the Investment Manager holds
      such security, (B) an Estate Account or an Other Account of the same Trust
      Company as another Person on whose account the Trust Company holds such
      security or (C) a Plan with the same Administrator as another Plan on
      whose account the Administrator holds such security;

	 	 	 
	 	(vii) 	
      where such Person is (A) a Client of an Investment
      Manager and such security is owned at law or in equity by the Investment
      Manager, (B) an Estate Account or an Other Account of a Trust Company and
      such security is owned at law or in equity by the Trust Company or (C) a
      Plan and such security is owned at law or in equity by the Administrator
      of the Plan, or

	 	 	 
	 	(viii) 	
      where such Person is a registered holder of such security
      as a result of carrying on the business of, or acting as a nominee of, a
      securities depositary.

	 	(h) 	
      “Board of Directors” means the board of directors
      from time to time of the Corporation or any duly constituted and empowered
      committee thereof.

	 	 	 	 
	 	(i) 	
      “Business Corporations Act (British
      Columbia)” means the Business Corporations Act (British
      Columbia) and the regulations thereunder, as now in effect or as the same
      may from time to time be amended, re-enacted or replaced.

	 	 	 	 
	 	(j) 	
      “Business Day” means any day other than a
      Saturday, Sunday or a day on which banking institutions in Vancouver are
      authorized or obligated by law to close.

	 	 	 	 
	 	(k) 	
      “Canadian Dollar Equivalent” means, for any amount
      which is expressed in United States dollars on any date, the Canadian
      dollar equivalent of such amount determined by reference to the
      U.S.-Canadian Exchange Rate on such date.

	 	 	 	 
	 	(l) 	
      “Canadian-U.S. Exchange Rate” means, on any date,
      the inverse of the U.S.- Canadian Exchange Rate.

	 	 	 	 
	 	(m) 	
      “close of business” means, on any given date, the
      time on such date (or, if such date is not a Business Day, the time on the
      next succeeding Business Day) at which the principal transfer office in
      Vancouver, British Columbia of the transfer agent for the Common Shares of
      the Corporation (or, after the Separation Time, the principal transfer
      office in Vancouver of the Rights Agent) closes to the public.

	 	 	 	 
	 	(n) 	
      “Closing Price” per security of any securities on
      any date of determination shall mean:

	 	 	 	 
	 		(i) 	
      the closing board lot sale price or, if such price is not
      available, the average of the closing bid and asked prices, for such
      securities on such date as reported by the stock exchange or national
      securities quotation system on which such securities are listed or
      admitted to trading (provided that, if at the date of determination such securities are
      listed or admitted to trading on more than one stock exchange or national
      securities quotation system, such price or prices shall be determined
      based on the stock exchange or quotation system on which such securities
      are then listed or admitted to trading on which the largest number of such
      securities were traded during the most recently completed calendar year
      or, if a calendar year has not been completed prior to the date of
      determination, during such shorter period as the Board of Directors acting
  in good faith determines to be appropriate); or

- 8 - 

	 	(ii) 	
      if for any reason none of such prices are available on
      such date or the securities are not listed or admitted to trading on a
      stock exchange or a national securities quotation system on such date, the
      last sale price, or in case no sale takes place on such date, the average
      of the high bid and low asked prices for each of such securities in the
      over-the-counter market;

	 		
      provided, however, that (A) if for any reason none of
      such prices are available on such date, the “Closing Price” per
      security of such securities on such date shall mean the fair value per
      security of the securities on such date as determined at the request of
      the Board of Directors by a nationally or internationally recognized
      investment dealer or investment banker; and (B) if the Closing Price so
      determined is expressed in United States dollars, such amount shall be
      converted to the Canadian Dollar Equivalent.

	 	 	 	 
	 	(o) 	
      “Common Shares” means the common shares without
      par value in the capital of the Corporation as presently constituted, as
      such shares may be subdivided, consolidated, reclassified or otherwise
      changed from time to time.

	 	 	 	 
	 	(p) 	
      “Competing Permitted Bid” means a Take-Over Bid
      that:

	 	 	 	 
	 		(i) 	
      is made after a Permitted Bid has been made and prior to
      the expiry of the Permitted Bid;

	 	 	 	 
	 		(ii) 	
      satisfies all components of the definition of a Permitted
      Bid other than the requirement in paragraph (ii)(A)(x) thereof,
  and

	 	 	 	 
	 		(iii) 	
      contains, and the take-up and payment for securities
      tendered or deposited thereunder is subject to, irrevocable and
      unqualified conditions that no Voting Shares shall be taken up or paid for
      pursuant to the Take-Over Bid prior to the Close of Business on a date
      that is no earlier than the later of (A) 35 days (or such longer minimum
      period of days that a take-over bid must remain open for acceptance under
      the Securities Act (British Columbia) after the date of the
      Take-Over Bid; and (B) the 75th day after the earliest date on which any
      other Permitted Bid that is then in existence was made.

	 	 	 	 
	 	(q) 	
      “controlled” a corporation shall be deemed to be
      “controlled” by another Person or two or more Persons
if:

- 9 - 

	 	(i) 	
      securities entitled to vote in the election of directors
      carrying more than 50% of the votes for the election of directors are
      held, directly or indirectly, by or for the benefit of the other Person or
      Persons; and

	 	 	 
	 	(ii) 	
      the votes carried by such securities are entitled, if
      exercised, to elect a majority of the Board of Directors of such
      corporation.

	 	(r) 	
      “Co-Rights Agents” means a Co-Rights Agent
      appointed pursuant to Subsection 4.1(a).

	 	 	 	 
	 	(s) 	
      “Corporation” means PolyMet Mining Corp.

	 	 	 	 
	 	(t) 	
      “Convertible Security” means a security
      convertible, exercisable or exchangeable into a Voting Share and a
      “Convertible Security Acquisition” means an acquisition by a Person
      of Voting Shares upon the exercise, conversion or exchange of a
      Convertible Security received by a Person pursuant to a Permitted Bid
      Acquisition, an Exempt Acquisition or a Pro Rata Acquisition;

	 	 	 	 
	 	(u) 	
      “Disposition Date” has the meaning ascribed
      thereto in Subsection 5.1(h).

	 	 	 	 
	 	(v) 	
      “Dividend Reinvestment Acquisition” shall mean an
      acquisition of Voting Shares pursuant to a Dividend Reinvestment
    Plan.

	 	 	 	 
	 	(w) 	
      “Dividend Reinvestment Plan” means a regular
      dividend reinvestment or other plan of the Corporation made available by
      the Corporation to holders of its securities where such plan permits the
      holder to direct that some or all of:

	 	 	 	 
	 		(i) 	
      dividends paid in respect of Common Shares;

	 	 	 	 
	 		(ii) 	
      proceeds of redemption of shares of the
    Corporation;

	 	 	 	 
	 		(iii) 	
      interest paid on evidence of indebtedness of the
      Corporation; or

	 	 	 	 
	 		(iv) 	
      optional cash payments;

	 	 	 	 
	 			
      be applied to the purchase from the Corporation of Common
      Shares.

	 	 	 	 
	 	(x) 	
      “Effective Date” means December 4, 2003.

	 	 	 	 
	 	(y) 	
      “Election to Exercise” means an election to
      exercise Rights substantially in the form attached to the Rights
      Certificate.

	 	 	 	 
	 	(z) 	
      “Exchange Act of 1934” means the Securities
      Exchange Act of 1934 (United States of America), as amended, and the rules
      and regulations thereunder, as now in effect or as the same may from time
      to time be amended, re-enacted or repealed.

- 10 - 

	 	(aa) 	
      “Exempt Acquisition” means a share acquisition in
      respect of which the Board of Directors has waived the application of
      Section 3.1 pursuant to the provisions of Sections 5.1 (a) or
  (h).

	 	 	 	 
	 	(bb) 	
      “Exercise Price” means, as of any date, the price
      at which a holder of a Right may purchase the securities issuable upon
      exercise of one whole Right which, until adjusted in accordance with the
      terms hereof, will be $50.

	 	 	 	 
	 	(cc) 	
      “Expansion Factor” shall have the meaning ascribed
      thereto in Section 2.3(a)(A).

	 	 	 	 
	 	(dd) 	
      “Expiration Time” means the close of business on
      that date which is the earlier of:

	 	 	 	 
	 		(i) 	
      the date of termination of this Agreement pursuant to
      Section 5.18,

	 	 	 	 
	 		(ii) 	
      the date of termination of the meeting of the
      shareholders of the Company called to consider the reconfirmation of this
      Agreement as provided for in Section 5.19 herein if this Agreement is not
      reconfirmed at such meeting as required by Section 5.19 herein.

	 	 	 	 
	 	(ee) 	
      “Flip-in Event” means a transaction or event in or
      pursuant to which a Person becomes an Acquiring Person.

	 	 	 	 
	 	(ff) 	
      “holder” shall have the meaning ascribed thereto
      in Section 2.8.

	 	 	 	 
	 	(gg) 	
      “Independent Shareholders” means holders of
      outstanding Voting Shares, other than:

	 	 	 	 
	 		(i) 	
      any Acquiring Person;

	 	 	 	 
	 		(ii) 	
      any Offeror;

	 	 	 	 
	 		(iii) 	
      any Affiliate or Associate of any Acquiring Person or
      Offeror;

	 	 	 	 
	 		(iv) 	
      any Person acting jointly or in concert with any
      Acquiring Person or Offeror, or with any Affiliate or Associate of any
      Acquiring Person or Offeror; and

	 	 	 	 
	 		(v) 	
      any employee benefit plan, deferred profit-sharing plan,
      stock participation plan and any other similar plan or trust for the
      benefit of employees of the Corporation unless the beneficiaries of the
      plan or trust direct the manner in which the Voting Shares are to be voted
      or direct whether the Voting Shares are to be tendered to a Take-Over
      Bid.

	 	 	 	 
	 	(hh) 	
      “Lock-up Agreement” means an agreement between an
      Offeror or any Affiliate or Associate of an Offeror and one or more
      holders of Voting Shares (each such holder herein referred to as a
      “Locked-up Person”) who are not Affiliates
or Associates of the Offeror and who are
not, other than by virtue of entering into such agreement, acting jointly or in
concert with the Offeror, the terms of which are publicly disclosed and a copy
of which is made available to the public (including the Corporation) not later
than the date of the Lock-up Bid (as hereinafter defined) or, if the Lock-up Bid
has been made prior to the date of the Lock-up Agreement, forthwith following
the entering into of the Lock-up Agreement and, in any event, not later than the
day immediately following the date the Lock-up Agreement was entered into,
pursuant to which each Locked-up Person agrees to deposit or tender the Voting
Shares held by such holder to a Take-over Bid (the “Lock-up Bid”) made by
the Offeror or any Affiliates or Associates of the Offeror or any other Person
acting jointly or in concert with the Offeror provided that: 

- 11 - 

	 	(i) 	
      the Lock-up Agreement permits the Locked-up Person to
      withdraw its Voting Shares from the Lock-up Agreement and the Lock-up Bid
      in order to deposit or tender the Voting Shares to another Take-over Bid
      or to support another transaction prior to the Voting Shares being taken
      up and paid for under the Lockup Bid:

	 	 	 	 
	 		(A) 	
      at a price or value per Voting Share that exceeds the
      price or value per Voting Share offered under the Lock-up Bid;
or

	 	 	 	 
	 		(B) 	
      for a number of Voting Shares that exceeds by as much as
      or more than a number (the “Specified Number”) specified in the
      Lock-up Agreement the number of Voting Shares that the Offeror has offered
      or proposes to offer to purchase under the Lock-up Bid at a price or value
      per Voting Share that is not less than the price or value per Voting Share
      offered or proposed to be offered under the Lock-up Bid, provided that the
      Specified Number is not greater than 7% of the number of Voting Shares
      offered to be purchased or proposed to be purchased under the Lock-up Bid;
      or

	 	 	 	 
	 		(C) 	
      at such price or value that exceeds by as much as or more
      than an amount (the “Specified Amount”) specified in the Lock-up
      Agreement the offering price for each Voting Share contained in or
      proposed to be contained in the Lock-up Bid, provided that the Specified
      Amount is not greater than 7% of the offering price contained in or
      proposed to be contained in the Lock-up Bid;

for greater certainty, the Lock-up
Agreement may contain a right of first refusal or require a period of delay to
give the Person who made the Lockup Bid an opportunity to match a higher price
in another Take-over Bid or transaction or other similar limitation on a
Locked-up Person’s right to withdraw Voting Shares from the agreement, so long
as the limitation does not preclude the exercise by the Locked-up Person of the
right to withdraw Voting Shares during the period of the other Take-over Bid or
transaction; and 

- 12 - 

	 	(ii) 	
      no “break-up” fees, “topping” fees, penalties, expenses
      or other amounts that exceed in aggregate the greater of:

	 	 	 	 
	 		(A) 	
      21⁄2% of the price or value of the aggregate consideration
      payable under the Lock-up Bid to a Locked-up Person; and

	 	 	 	 
	 		(B) 	
      50% of the amount by which the price or value of the
      consideration received by a Locked-up Person under another Take-over Bid
      or transaction exceeds the price or value of the consideration that the
      Locked-up Person would have received under the Lock-up
  Bid;

shall be payable by such Locked-up
Person if the Locked-up Person fails to deposit or tender Voting Shares to the
Lock-up Bid, or withdraws Voting Shares previously tendered thereto, in order to
deposit or tender such Voting Shares to another Take-over Bid or support another
transaction. 

	 	(ii) 	
      “Market Price” per security of any securities on
      any date of determination shall mean the average of the daily Closing
      Prices per security of such securities on each of the 20 consecutive
      Trading Days through and including the Trading Day immediately preceding
      such date of determination; provided, however, that if an event of a type
      analogous to any of the events described in Section 2.3 hereof shall have
      caused any Closing Price used to determine the Market Price on any Trading
      Day not to be fully comparable with the Closing Price on the Trading Day
      immediately preceding such date of determination, each such Closing Price
      so used shall be appropriately adjusted in a manner analogous to the
      applicable adjustment provided for in Section 2.3 hereof (as determined by
      the Board of Directors acting in good faith) in order to make it fully
      comparable with the Closing Price on the Trading Day immediately preceding
      such date of determination.

	 	 	 	 
	 	(jj) 	
      “Nominee” has the meaning ascribed thereto in
      Subsection 2.2(c).

	 	 	 	 
	 	(kk) 	
      “Offer to Acquire” includes:

	 	 	 	 
	 		(i) 	
      an offer to purchase or a solicitation of an offer to
      sell Voting Shares; and

	 	 	 	 
	 		(ii) 	
      an acceptance of an offer to sell Voting Shares, whether
      or not such offer to sell has been solicited;

	 	 	 	 
	 		
      or any combination thereof, and the Person accepting an
      offer to sell shall be deemed to be making an Offer to Acquire to the
      Person that made the offer to sell.

	 	 	 	 
	 	(ll) 	
      “Offeror” means a Person who has announced a
      current intention to make, or who is making, a Take-Over Bid.

	 	 	 	 
	 	(mm) 	
      “Offeror’s Securities” means the aggregate of all
      Voting Shares Beneficially Owned by the Offeror on the date of a Take-Over
      Bid by an Offeror.

- 13 - 

	 	(nn) 	
      “Permitted Bid” means a Take-Over Bid made by way
      of a take-over bid circular which also complies with the following
      additional provisions:

	 	 	 	 	 
	 		(i) 	
      the Take-Over Bid is made for all outstanding Voting
      Shares and to all holders of record of Voting Shares, other than the
      Offeror;

	 	 	 	 	 
	 		(ii) 	
      the Take-Over Bid contains, and the take-up and payment
      for securities tendered or deposited thereunder is subject to, irrevocable
      and unqualified conditions that:

	 	 	 	 	 
	 			(A) 	
      no Voting Shares shall be taken up or paid for pursuant
      to the Take-Over Bid (x) prior to the close of business on a date which is
      not less than 75 days following the date of the Take-Over Bid and (y)
      unless, at the close of business on that date, the Voting Shares deposited
      or tendered pursuant to the Take-Over Bid and not withdrawn constitute
      more than 50% of the Voting Shares outstanding which are held by
      Independent Shareholders;

	 	 	 	 	 
	 			(B) 	
      unless the Take-Over Bid is withdrawn, Voting Shares may
      be deposited pursuant to such Take-Over Bid at any time prior to the close
      of business on the date of the first take-up of or payment for Voting
      Shares;

	 	 	 	 	 
	 			(C) 	
      any Voting Shares deposited pursuant to the Take-Over Bid
      may be withdrawn until taken-up and paid for; and

	 	 	 	 	 
	 			(D) 	
      in the event that the requirement set forth in Subsection
      (A)(y) of this Subsection 1.1(mm)(ii) is satisfied, the Offeror will make
      a public announcement of that fact and the Take-Over Bid will remain open
      for deposits and tenders of Voting Shares for not less than 10 Business
      Days from the date of such public
announcement.

	 		
      For purposes of this Agreement, the term “Permitted
      Bid” shall include a Competing Permitted Bid.

	 	 	 
	 	(oo) 	
      “Permitted Bid Acquisition” means an acquisition
      of Voting Shares made pursuant to a Permitted Bid or a Competing Permitted
      Bid.

	 	 	 
	 	(pp) 	
      “Person” includes any individual, firm,
      partnership, association, trust, trustee, executor, administrator, legal
      personal representative, government, governmental body or authority,
      corporation, or other incorporated or unincorporated organization,
      syndicate or other entity.

	 	 	 
	 	(qq) 	
      “Pro-Rata Acquisition” means an acquisition by a
      Person of Voting Shares pursuant to:

	 	(i) 	
      a Dividend Reinvestment
Acquisition;

- 14 - 

	 	(ii) 	
      a stock dividend, stock split or other event in respect
      of securities of the Corporation pursuant to which such Person becomes a
      beneficial owner of Voting Shares on the same pro-rata basis as all other
      holders of securities;

	 	 	 
	 	(iii) 	
      the exercise by the Person of only those rights to
      purchase Voting Shares distributed to that Person in the course of a
      distribution to all holders of securities of the Corporation pursuant to a
      bona fide rights offering or pursuant to a prospectus; or

	 	 	 
	 	(iv) 	
      a distribution to the public of Voting Shares or
      Convertible Securities (and the conversion or exchange of such Convertible
      Securities), made pursuant to a prospectus or by way of a private
      placement, provided that the Person does not thereby acquire a greater
      percentage of such Voting Shares, or Convertible Securities, so offered
      than the Person’s percentage of Voting Shares beneficially owned
      immediately prior to such acquisition.

	 	(rr) 	
      “Record Time” means 12:01 a.m. (Vancouver time) on
      December 4, 2003.

	 	 	 
	 	(ss) 	
      “Redemption Price” has the meaning ascribed
      thereto in Section 5.1(b).

	 	 	 
	 	(tt) 	
      “Right” means a right to purchase Common Shares on
      and subject to the terms and conditions of this Agreement.

	 	 	 
	 	(uu) 	
      “Rights Agent” means Computershare Investor
      Services Inc. (formerly known as Pacific Corporate Trust Company) and any
      successor rights agent hereunder.

	 	 	 
	 	(vv) 	
      “Rights Certificate” means a certificate
      representing Rights in substantially the form of Schedule A attached
      hereto.

	 	 	 
	 	(ww) 	
      “Rights Register” shall have the meaning ascribed
      thereto in Section 2.6(a).

	 	 	 
	 	(xx) 	
      “Securities Act (Alberta)” means the
      Securities Act, SA, 1981, c.S-61, as amended, and the regulations
      thereunder; and any comparable or successor laws or regulations
      thereto;

	 	 	 
	 	(yy) 	
      “Securities Act (British
      Columbia)” means the Securities Act, R.S.B.C. 1996, c. 418, as
      amended, and the regulations thereunder, and any comparable or successor
      laws or regulations thereto;

	 	 	 
	 	(zz) 	
      “Securities Act (Ontario)”
      means the Securities Act, R.S.O. 1990, c.s.5, as amended, and the
      regulations thereunder, and any comparable or successor laws or
      regulations thereto;

	 	 	 
	 	(aaa) 	
      “Separation Time” means the close of business on
      the tenth Business Day after the earlier of:

	 	(i) 	
      the Share Acquisition Date;
and

- 15 - 

	 	(ii) 	
      the date of the commencement of or first public
      announcement of the intent of any Person (other than the Corporation or
      any Subsidiary of the Corporation) to commence a Take-Over Bid (other than
      a Permitted Bid or a Competing Permitted Bid), or such earlier or later
      time as may be determined by the Board of Directors, provided that, if any
      Take-Over Bid referred to in this clause (ii) expires, is cancelled,
      terminated or otherwise withdrawn prior to the Separation Time, such
      Take-Over Bid shall be deemed, for the purposes of this definition, never
      to have been made.

	 	(bbb) 	
      “Share Acquisition Date” means the first date of a
      public announcement or disclosure by the Corporation or an Acquiring
      Person of facts indicating that a Person has become an Acquiring Person
      (which, for purposes of this definition, shall include, without
      limitation, a report filed pursuant to Section 101 of the Securities
      Act (Ontario), Section 111 of the Securities Act (British
      Columbia) or Section 141 of the Securities Act
(Alberta)).

	 	 	 	 	 
	 	(ccc) 	
      “Subsidiary”: a corporation shall be deemed to be
      a subsidiary of another corporation if:

	 	 	 	 	 
	 		(i) 	
      it is controlled by:

	 	 	 	 	 
	 			(A) 	
      that other; or

	 	 	 	 	 
	 			(B) 	
      that other and one or more corporations, each of which is
      controlled by that other; or

	 	 	 	 	 
	 			(C) 	
      two or more corporations, each of which is controlled by
      that other; or

	 	 	 	 	 
	 		(ii) 	
      it is a Subsidiary of a corporation that is that other’s
      Subsidiary.

	 	(ddd) 	
      “Take-Over Bid” means an Offer to Acquire Voting
      Shares of any class, or Convertible Securities with respect thereto, where
      the Voting Shares subject to the Offer to Acquire, together with the
      Voting Shares into or for which the securities subject to the Offer to
      Acquire are convertible or exchangeable and the Offeror’s Securities
      constitute in the aggregate 20% or more of the outstanding Voting Shares
      at the date of the Offer to Acquire.

	 	 	 	 
	 	(eee) 	
      “Trading Day” means, when used with respect to any
      securities, a day on which the principal Canadian stock exchange on which
      such securities are listed or posted for trading is open for the
      transaction of business or, if the securities are not listed or posted for
      trading on any Canadian stock exchange, a Business Day.

	 	 	 	 
	 	(fff) 	
      “U.S. Canadian Exchange Rate” means, on any
      date:

	 	 	 	 
	 		(i) 	
      if on such date the Bank of Canada sets an average noon
      spot rate of exchange for the conversion of one United States dollar into
      Canadian dollars, such rate; and

- 16 - 

	 	(ii) 	
      in any other case, the rate for such date for the
      conversion of one United States dollar into Canadian dollars calculated in
      the manner determined by the Board of Directors from time to
  time.

	 	(ggg) 	
      “U.S. Dollar Equivalent” means, for any amount
      which is expressed in Canadian dollars on any date, the United States
      dollar equivalent of such amount determined by reference to the
      Canadian-U.S. Exchange Rate on such date.

	 	 	 
	 	(hhh) 	
      “Voting Share Reduction” means an acquisition or
      redemption by the Corporation of outstanding Voting Shares which, by
      reducing the number of Voting Shares outstanding, increases the percentage
      of Voting Shares Beneficially Owned by a Person to 20% or more of the
      Voting Shares then outstanding.

	 	 	 
	 	(iii) 	
      “Voting Shares” means the Common Shares and any
      other shares of the Corporation entitled to vote generally and at all
      times for the election of directors of the
Corporation.

1.2                    
Currency: 

                          All
sums of money which are referred to in this Agreement are expressed in lawful
money of Canada, unless otherwise specified. 

1.3                     Headings
and References: 

                          The
headings of the articles, sections and subsections of this Agreement and the
table of contents are inserted for convenience of reference only and shall not
affect the construction or interpretation of this Agreement. All references to
articles, sections, subsections and paragraphs are to articles, sections,
subsections and paragraphs of this Agreement. The words “hereto”, “herein”,
“hereof, “hereunder”, “this Agreement”, “the Rights Agreement” and. similar
expressions refer to this Agreement including the schedule attached hereto as a
whole, as the same may be amended, modified or supplemented at any time or from
time to time. 

1.4                     Calculation of Number and Percentage of Beneficial
Ownership of Outstanding Voting Shares: 

                          For
purposes of this Agreement, the percentage of Voting Shares of any class
Beneficially Owned by any Person, will be and be deemed to be the product
(expressed as a percentage) determined by the formula: 

                         
100 x A/B 

where: 

		
      A 
	
      = 
	
      the number of votes for the election of all directors
      generally attaching to the Voting Shares of the particular class
      Beneficially Owned by such Person; and 

- 17 - 

		
      B 
	
      = 
	
      the number of votes for the election of all directors
      generally attaching to all outstanding Voting Shares of the particular
      class. 

                          Where
any Person is deemed to Beneficially Own unissued Voting Shares such Voting
Shares will be deemed to be outstanding for the purpose of calculating the
percentage of Voting Shares of the particular class Beneficially Owned by such
Person. 

1.5                     Acting
Jointly or in Concert: 

                          For
the purposes of this Agreement, a Person is acting jointly or in concert with
every Person who is a party to an agreement, commitment or understanding,
whether formal or informal and whether or not in writing, with the first Person
to acquire or to offer to acquire Voting Shares or Convertible Securities in
respect thereof (other than customary agreements with and between underwriters
and banking group or selling group members with respect to a distribution of
securities or pursuant to a pledge of securities in the ordinary course of the
pledgee’s business). 

1.6                    
Generally Accepted Accounting Principles: 

                          Wherever
in this Agreement reference is made to generally accepted accounting principles,
such reference shall be deemed to be the recommendations at the relevant time of
the Canadian Institute of Chartered Accountants, or any successor institute,
applicable on a consolidated basis (unless otherwise specifically provided
herein to be applicable on an unconsolidated basis) as of the date on which a
calculation is made or required to be made in accordance with generally accepted
accounting principles. Where the character or amount of an asset or liability or
item of revenue or expense is required to be determined, or any consolidation or
other accounting computation is required to be made for the purpose of this
Agreement or any document, such determination or calculation shall, to the
extent applicable and except as otherwise specified herein or as otherwise
agreed in writing by the parties, be made in accordance with generally accepted
accounting principles applied on a consistent basis. 

ARTICLE 2 
THE RIGHTS 

2.1                     Legend
on Common Share Certificates: 

                          Certificates
representing the Common Shares, including without limitation Common Shares
issued upon the conversion of Convertible Securities, issued after the Record
Time but prior to the close of business on the earlier of the Separation Time
and the Expiration Time shall also evidence one Right for each Common Share
represented thereby and shall have impressed on, printed on, written on or
otherwise affixed to them the legend set forth in Section 2.1 of the 2007
Amended and Restated Agreement (which such legend shall be deemed for all
purposes to be amended to read the same as set forth below), but Common Share
certificates issued after the Amendment Date but prior to the close of business
on the earlier of the Separation Time and the Expiration Time shall have
impressed on, printed on, written on, or otherwise affixed to them the following
legend: 

- 18 - 

“Until the Separation Time (as such term is defined in the
Amended and Restated Shareholder Rights Plan Agreement referred to below), this
certificate also evidences and entitles the holder hereof to certain rights as
set forth in the amended and restated shareholder rights plan agreement (the
“Amended and Restated Shareholder Rights Plan Agreement”) dated as of July 9,
2013 between PolyMet Mining Corp. (the “Corporation”) and Computershare Investor
Services Inc., as Rights Agent, the terms of which are hereby incorporated
herein by reference and a copy of which is on file and may be inspected during
normal business hours at the principal executive office of the Corporation.
Under certain circumstances as set forth in the Amended and Restated Shareholder
Rights Plan Agreement, such Rights may be amended, redeemed or exchanged, may
expire, may lapse, may become void (if, in certain circumstances, they are
“Beneficially Owned” by a Person who is or becomes an “Acquiring Person”, as
such terms are defined in the Amended and Restated Shareholder Rights Plan
Agreement, or a transferee thereof) or may be evidenced by separate certificates
and may no longer be evidenced by this certificate. The Corporation will mail or
arrange for the mailing of a copy of the Amended and Restated Shareholder Rights
Plan Agreement to the holder of this certificate without charge as soon as
practicable after the receipt of a written request therefor.” 

                          Certificates
representing Common Shares that are issued and outstanding at the Record Time or
the Amendment Date, as the case may be, shall also evidence one Right for each
Common Share evidenced thereby, notwithstanding the absence of the foregoing
legend, until the close of business on the earlier of the Separation Time and
the Expiration Time. 

2.2                    
Initial Exercise Price; Exercise of Rights; Detachment of Rights: 

	 	(a) 	
      Exercise Terms: Subject to adjustment as herein
      set forth, each Right will entitle the holder thereof, from and after the
      Separation Time and prior to the Expiration Time, to purchase one Common
      Share for the Exercise Price. Notwithstanding any other provision of this
      Agreement, any Rights held by the Corporation or any of its Subsidiaries
      will be void.

	 	 	 	 
	 	(b) 	
      No Exercise Prior to Separation Time: Until the
      Separation Time:

	 	 	 	 
	 		(i) 	
      the Rights will not be exercisable and no Right may be
      exercised; and

	 	 	 	 
	 		(ii) 	
      each Right shall be evidenced by the certificate for the
      associated Common Share registered in the name of the holder thereof
      (which certificate shall also be deemed to represent a Rights Certificate)
      and shall be transferable only together with, and shall be transferred by
      a transfer of, such associated Common Share.

	 	 	 	 
	 	(c) 	
      Exercise After Separation Time: From and after the
      Separation Time and prior to the Expiration
Time:

	 	(i) 	
      the Rights are exercisable;
and

- 19 - 

	 	(ii) 	
      the registration and transfer of Rights will be separate
      from and independent of Common Shares.

Promptly following the Separation
Time, the Corporation will prepare and the Rights Agent will mail to each holder
of record of Common Shares as of the Separation Time (other than an Acquiring
Person and, in respect of any Rights Beneficially Owned by such Acquiring Person
which are not held of record by such Acquiring Person, the holder of such Rights
(a “Nominee”)), at such holder’s address as shown by the records of the
Corporation (the Corporation hereby agreeing to furnish copies of such records
to the Rights Agent for this purpose): 

	 	(iii) 	
      a Rights Certificate appropriately completed,
      representing the number of Rights held by such holder at the Separation
      Time and having such marks of identification or designation and such
      legends, summaries or endorsements printed thereon as the Corporation may
      deem appropriate and as are not inconsistent with the provisions of this
      Agreement, or as may be required to comply with any law, rule or
      regulation or with any rule or regulation of any self-regulatory
      organization, stock exchange or “system” on which the Rights may from time
      to time be listed or traded, or to conform to usage; and

	 	 	 
	 	(iv) 	
      a disclosure statement describing the
  Rights;

	 		
      provided that a Nominee shall be sent the materials
      provided for in (iii) and (iv) in respect of all Common Shares of the
      Corporation held of record by it which are not Beneficially Owned by an
      Acquiring Person.

	 	 	 	 
	 	(d) 	
      Manner of Exercise: Rights may be exercised, in whole or
      in part, on any Business Day after the Separation Time and prior to the
      Expiration Time by submitting to the Rights Agent:

	 	 	 	 
	 		(i) 	
      the Rights Certificate evidencing such Right;

	 	 	 	 
	 		(ii) 	
      an Election to Exercise such Rights substantially in the
      form attached to the Rights Certificate appropriately completed and
      executed by the holder or his executors or administrators or other
      personal representatives or his or their legal attorney duly appointed by
      instrument in writing in form and executed in a manner satisfactory to the
      Rights Agent; and

	 	 	 	 
	 		(iii) 	
      payment by certified cheque, banker’s draft or money
      order payable to the order of the Corporation, in a sum equal to the
      Exercise Price multiplied by the number of Rights being exercised and a
      sum sufficient to cover any transfer tax or charge which may be payable in
      respect of any transfer involved and the transfer or delivery of Rights
      Certificates or the issuance or delivery of certificates of Common Shares
      in a name other than that of the holder of the Rights being
    exercised.

- 20 - 

	 	(e) 	
      Issue of Common Shares: Upon receipt of a Rights
      Certificate, together with a completed Election to Exercise executed in
      accordance with Subsection 2.2(d)(ii) which does not indicate that such
      Right is null and void as provided by Subsection 3.1(b), and payment as
      set forth in Section 2.2(d)(iii), the Rights Agent (unless otherwise
      instructed by the Corporation in the event that the Corporation is of the
      opinion that the Rights cannot be exercised in accordance with this
      Agreement) will thereupon promptly:

	 	 	 	 
	 		(i) 	
      requisition from the transfer agent certificates
      representing the number of Common Shares to be purchased (the Corporation
      hereby irrevocably authorizing its transfer agent to comply with all such
      requisitions);

	 	 	 	 
	 		(ii) 	
      when appropriate, requisition from the Corporation the
      amount of cash to be paid in lieu of issuing fractional Common
    Shares;

	 	 	 	 
	 		(iii) 	
      after receipt of the certificates referred to in Section
      2.2(e)(i), deliver the same to or upon the order of the registered holder
      of such Rights Certificates, registered in such name or names as may be
      designated by such holder; and

	 	 	 	 
	 		(iv) 	
      when appropriate, after receipt, deliver the cash
      referred to in clause 2.2(e)(ii) to or to the order of the registered
      holder of such Rights Certificate.

	 	 	 	 
	 	(f) 	
      Partial Exercise: In case the holder of any Rights
      shall exercise less than all of the Rights evidenced by the Rights
      Certificate of such holder, a new Rights Certificate evidencing the Rights
      remaining unexercised (subject to the provisions of Subsection 5.5(a))
      will be issued by the Rights Agent to such holder or to such holder’s
      authorized assigns.

	 	 	 	 
	 	(g) 	
      Covenants: The Corporation covenants and agrees
      to:

	 	 	 	 
	 		(i) 	
      take all such action as may be necessary on its part and
      within its powers to ensure that all Common Shares delivered upon exercise
      of Rights shall, at the time of delivery of the certificates evidencing
      such Common Shares (subject to payment of the Exercise Price), be validly
      authorized, executed, issued and delivered and be fully paid and
      non-assessable;

	 	 	 	 
	 		(ii) 	
      take all such action as may be necessary and within its
      power to comply with any applicable requirements of the Business
      Corporations Act (British Columbia), the Securities Act
      (Ontario), the Securities Act (British Columbia) and the
      Securities Act (Alberta), and the securities laws or comparable
      legislation of each of the other provinces and territories of Canada, and
      any other applicable law, rule or regulation thereof, in connection with
      the issue and delivery of the Rights Certificates and the issuance of the
      Common Shares upon exercise of Rights;

- 21 - 

	 	(iii) 	
      use reasonable efforts to cause all Common Shares issued
      upon exercise of Rights to be listed upon the stock exchanges upon which
      the Common Shares were traded immediately prior to the Share Acquisition
      Date;

	 	 	 
	 	(iv) 	
      cause to be reserved and kept available out of the
      authorized and unissued Common Shares, the number of Common Shares that,
      as provided in this Agreement, will from time to time be sufficient to
      permit the exercise in full of all outstanding Rights;

	 	 	 
	 	(v) 	
      pay when due and payable, if applicable, any and all
      federal, provincial and municipal transfer taxes and charges (not
      including any income or capital taxes of the holder or exercising holder
      or any liability of the Corporation to withhold tax) which may be payable
      in respect of the original issuance or delivery of the Rights
      Certificates, or certificates for the Common Shares to be issued upon
      exercise of any Rights, provided that the Corporation shall not be
      required to pay any transfer tax or charge which may be payable in respect
      of any transfer involved in the transfer or delivery of Rights
      Certificates or the issuance or delivery of certificates for Common Shares
      in a naive other than that of the holder of the Rights being transferred
      or exercised; and

	 	 	 
	 	(vi) 	
      after the Separation Time, except as permitted by Section
      5.1, not take (or permit any subsidiary to take) any action if at the time
      such action is taken it is reasonably foreseeable that such action will
      diminish substantially or otherwise eliminate the benefits intended to be
      afforded by the Rights.

	 	(h) 	
      Authorized Capital: If the number of Common Shares
      which are not issued or reserved for issue is insufficient to permit the
      exercise in full of the Rights in accordance with this Section 2.2, then
      each Right, when such Right is aggregated with a sufficient number of
      Rights to acquire a whole number of Common Shares, will entitle the holder
      thereof, after the Separation Time, to purchase that number of Common
      Shares at the Exercise Price per Common Share equal to the quotient
      determined by dividing the difference between the number of authorized
      Common Shares and the number of Common Shares then issued or allotted or
      reserved for issuance by the Corporation, by the number of Rights then
      outstanding.

2.3                     Adjustments
to Exercise Price; Number of Rights: 

                          The
Exercise Price, the number and kind of securities subject to purchase upon
exercise of each Right and the number of Rights outstanding are subject to
adjustment from time to time as provided in this Section 2.3 and Article 3. 

	 	(a) 	
      Share Reorganization: If the Corporation shall at
      any time after the date of this Agreement:

	 	 	 	 
	 		(i) 	
      declare or pay a dividend on Common Shares payable in
      Common Shares (or other securities exchangeable for or convertible into or
      giving a right to acquire Common Shares or other securities of the
      Corporation) other than pursuant to any optional stock dividend
  program;

- 22 - 

	 	(ii) 	
      subdivide or change the then outstanding Common Shares
      into a greater number of Common Shares;

	 	 	 
	 	(iii) 	
      consolidate or change the then outstanding Common Shares
      into a smaller number of Common Shares; or

	 	 	 
	 	(iv) 	
      issue any Common Shares for other securities exchangeable
      for or convertible into or giving a right to acquire Common Shares or
      other securities of the Corporation or in respect of, in lieu of or in
      exchange for existing Common Shares, except as otherwise provided in this
      Section 2.3,

the Exercise Price and the number of
Rights outstanding, or, if the payment or effective date therefor shall occur
after the Separation Time, the securities purchasable upon exercise of Rights
shall be adjusted as of the payment or effective date in the manner set forth
below. 

If the Exercise Price and number of
Rights outstanding are to be adjusted: 

	 	(A) 	
      the Exercise Price in effect after such adjustment will
      be equal to the Exercise Price in effect immediately prior to such
      adjustment divided by the number of Common Shares (or other capital stock)
      (the “Expansion Factor”) that a holder of one Common Share
      immediately prior to such dividend, subdivision, change, consolidation or
      issuance would hold thereafter as a result thereof; and

	 	 	 
	 	(B) 	
      each Right held prior to such adjustment will become that
      number of Rights as results from the application of the Expansion
      Factor,

and the adjusted number of Rights will
be deemed to be distributed among the Common Shares with respect to which the
original Rights were associated (if they remain outstanding) and the shares
issued in respect of such dividend, subdivision, change, consolidation or
issuance, so that each such Common Share (or other capital stock) will have
exactly one Right associated with it in effect following the payment or
effective date of the event referred to in Clause 2.3(a)(i), (ii), (iii) or
(iv), as the case may be. 

For greater certainty, if the
securities purchasable upon exercise of Rights are to be adjusted, the
securities purchasable upon exercise of each Right after such adjustment will be
the securities that a holder of the securities purchasable upon exercise of one
Right immediately prior to such dividend, subdivision, change, consolidation or
issuance would hold thereafter as a result of such dividend, subdivision,
change, consolidation or issuance. 

- 23 - 

	 		
      If, after the Record Time and prior to the Expiration
      Time, the Corporation shall issue any shares of capital stock other than
      Common Shares in a transaction of a type described in Clause 2.3(a)(i) or
      (iv), shares of such capital stock shall be treated herein as nearly
      equivalent to Common Shares as may be practicable and appropriate under
      the circumstances and the Corporation and the Rights Agent agree to amend
      this Agreement in order to effect such treatment.

	 	 	 	 
	 		
      In the event the Corporation shall at any time after the
      Record Time and prior to the Separation Time issue any Common Shares
      otherwise than in a transaction referred to in this Subsection 2.3(a),
      each such Common Share so issued shall automatically have one new Right
      associated with it, which Right shall be evidenced by the certificate
      representing such associated Common Share.

	 	 	 	 
	 	(b) 	
      Rights Offering: If the Corporation shall at any time
      after the Record Time and prior to the Expiration Time fix a record date
      for the issuance of rights, options or warrants to all holders of Common
      Shares entitling them (for a period expiring within 21 calendar days after
      such record date) to subscribe for or purchase Common Shares (or
      Convertible Securities) at a price per Common Share (or, if Convertible
      Securities, having a conversion, exchange or exercise price, including the
      price required to be paid to purchase such Convertible Securities) less
      than the Market Price per Common Share on such record date, the Exercise
      Price to be in effect alter such record date shall be determined by
      multiplying the Exercise Price in effect immediately prior to such record
      date by a fraction:

	 	 	 	 
	 		(i) 	
      the numerator of which shall be the number of Common
      Shares outstanding on such record date, plus the number of Common Shares
      that the aggregate offering price of the total number of Common Shares so
      to be offered (and/or the aggregate initial conversion, exchange or
      exercise price of the Convertible Securities so to be offered, including
      the price required to be paid to purchase such Convertible Securities)
      would purchase at such Market Price per Common Share; and

	 	 	 	 
	 		(ii) 	
      the denominator of which shall be the number of Common
      Shares outstanding on such record date, plus the number of additional
      Common Shares to be offered for subscription or purchase (or into which
      the Convertible Securities so to be offered are initially convertible,
      exchangeable or exercisable).

In case such subscription price may be
paid by delivery of consideration, part or all of which may be in a form other
than cash, the value of such consideration shall be as determined in good faith
by the Board of Directors, whose determination shall be described in a statement
filed with the Rights Agent and shall be binding on the Rights Agent and the
holders of Rights. Such adjustment shall be made successively whenever such a
record date is fixed, and in the event that such rights, options or warrants are
not so issued, or if issued, are not exercised prior to the expiration thereof,
the Exercise Price shall be readjusted to the Exercise Price which would then be
in effect if such record date had not been fixed, or to the Exercise Price which would be in effect
      based upon the number of Common Shares (or Convertible Securities)
      actually issued upon the exercise of such rights, options or warrants, as
the case may be.

- 24 - 

	 		
      For purposes of this Agreement, the granting of the right
      to purchase Common Shares (whether from treasury or otherwise) pursuant to
      the Dividend Reinvestment Plan or any employee benefit stock option or
      similar plans shall be deemed not to constitute an issue of rights,
      options or warrants by the Corporation; provided, however, that, in all
      such cases, the right to purchase Common Shares is at a price per share of
      not less than 95% of the current market price per share (determined as
      provided in such plans) of the Common Shares.

	 	 	 	 
	 	(c) 	
      Special Distribution: If the Corporation shall at
      any time after the Record Time and prior to the Separation Time fix a
      record date for the making of a distribution to all holders of Common
      Shares (including any such distribution made in connection with a merger
      or amalgamation) of evidences of indebtedness, cash (other than an annual
      cash dividend or a dividend paid in Common Shares, but including any
      dividend payable in securities other than Common Shares), assets or
      rights, options or warrants (excluding those referred to in Subsection
      2.3(b)), the Exercise Price to be in effect after such record date shall
      be determined by multiplying the Exercise Price in effect immediately
      prior to such record date by a fraction:

	 	 	 	 
	 		(i) 	
      the numerator of which shall be the Market Price per
      Common Share on such record date, less the fair market value (as
      determined in good faith by the Board of Directors, whose determination
      shall be described in a statement filed with the Rights Agent and shall be
      binding on the Rights Agent and the holders of Rights), on a per share
      basis, of the portion of the cash, assets, evidences of indebtedness,
      rights, options or warrants so to be distributed; and

	 	 	 	 
	 		(ii) 	
      the denominator of which shall be such Market Price per
      Common Share.

	 	 	 	 
	 		
      Such adjustments shall be made successively whenever such
      a record date is fixed, and in the event that such a distribution is not
      so made, the Exercise Price shall be adjusted to be the Exercise Price
      which would have been in effect if such record date had not been
    fixed.

	 	 	 	 
	 	(d) 	
      Minimum Adjustments: Notwithstanding anything
      herein to the contrary, no adjustment in the Exercise Price shall be
      required unless such adjustment would require an increase or decrease of
      at least one per cent in the Exercise Price; provided, however, that any
      adjustments which by reason of this Subsection 2.3(d) are not required to
      be made shall be carried forward and taken into account in many subsequent
      adjustment. All calculations under Section 2.3 shall be made to the
      nearest cent or to the nearest tenthousandth of a share. Notwithstanding
      the first sentence of this Subsection 2.3(d), any adjustment required by
      Section 2.3 shall be made no later than the earlier
of:

- 25 - 

	 	(i) 	
      three years from the date of the transaction which gives
      rise to such adjustment; or

	 	 	 
	 	(ii) 	
      the Expiration Time.

	 	(e) 	
      Discretionary Adjustment: If the Corporation shall
      at any time after the Record Time and prior to the Expiration Time issue
      any shares of capital stock (other than Common Shares), or Convertible
      Securities, in a transaction referred to in Clause 2.3(a)(i) or (iv), if
      the Board of Directors acting in good faith determines that the
      adjustments contemplated by Subsections 2.3(a), (b) and (c) in connection
      with such transaction will not appropriately protect the interests of the
      holders of Rights, the Board of Directors may determine what other
      adjustments to the Exercise Price, number of Rights and/or securities
      purchasable upon exercise of Rights would be appropriate and,
      notwithstanding Subsections 2.3(a), (b)and (c), such adjustments, rather
      than the adjustments contemplated by Subsections 2.3(a), (b)and (c), shall
      be made. The Corporation and the Rights Agent shall have authority without
      the approval of the holders of the Common Shares or the holders of Rights
      to amend this Agreement as appropriate to provide for such
    adjustments.

	 	 	 
	 	(f) 	
      Benefit of Adjustments: Each Right originally
      issued by the Corporation subsequent to any adjustment made to the
      Exercise Price hereunder shall evidence the right to purchase, at the
      adjusted Exercise Price, the number of Common Shares purchasable from time
      to time hereunder upon exercise of a Right immediately prior to such
      issue, all subject to further adjustment as provided herein.

	 	 	 
	 	(g) 	
      No Change of Certificates: Irrespective of any
      adjustment or change in the Exercise Price or the number of Common Shares
      issuable upon the exercise of the Rights, the Rights Certificates
      theretofore and thereafter issued may continue to express the Exercise
      Price per Common Share and the number of Common Shares which were
      expressed in the initial Rights Certificates issued hereunder.

	 	 	 
	 	(h) 	
      Timing of Issuance: In any case in which this
      Section 2.3 shall require that an adjustment in the Exercise Price be made
      effective as of a record date for a specified event, the Corporation may
      elect to defer until the occurrence of such event the issuance to the
      holder of any Right exercised after such record date the number of Common
      Shares and other securities of the Corporation, if any, issuable upon such
      exercise over and above the number of Common Shares and other securities
      of the Corporation, if any, issuable upon such exercise on the basis of
      the Exercise Price in effect prior to such adjustment;

	 	 	 
	 	(i) 	
      Adjustments Regarding Tax: Notwithstanding
      anything contained in this Section 2.3 to the contrary, the Corporation
      shall be entitled to make such reductions in the Exercise Price, in
      addition to those adjustments expressly required by this Section 2.3, as
      and to the extent that in their good faith judgment the Board of Directors
      shall determine to be advisable, in order that
any:

- 26 - 

	 	(i) 	
      consolidation or subdivision of Common Shares;

	 	 	 
	 	(ii) 	
      issuance (wholly or in part for cash) of Common Shares or
      Convertible Securities;

	 	 	 
	 	(iii) 	
      stock dividends; or

	 	 	 
	 	(iv) 	
      issuance of rights, options or warrants referred to in
      this Section 2.3,

	 		
      hereafter made by the Corporation to holders of its
      Common Shares, shall not be taxable to such shareholders.

	 	 	 	 
	 	(j) 	
      Whenever an adjustment is made pursuant to this Section
      2.3, the Corporation shall:

	 	 	 	 
	 		(i) 	
      promptly prepare a certificate setting forth such
      adjustment and a brief statement of the facts accounting for such an
      adjustment; and

	 	 	 	 
	 		(ii) 	
      promptly file with the Rights Agent and with each
      transfer agent for the Common Shares a copy of such certificate and mail a
      brief summary thereof to each holder of Rights who requests a copy with
      the Rights Agent may rely on such certificate without verification or
      liability.

Failure to file such certificate or to
cause such notice to be given as aforesaid, or any defect therein, shall not
affect the validity of any such adjustment or change. 

2.4         
            Date on Which
Exercise is Effective: 

                      
    Each Person in whose name any certificate for Common
Shares or other securities, if applicable, is issued upon the exercise of Rights
shall for all purposes be deemed to have become the holder of record of the
Common Shares or other securities, if applicable, represented thereon, and such
certificate shall be dated the date upon which the Rights Certificate evidencing
such Rights was duly surrendered in accordance with Subsection 2.2(d) (together
with a duly completed Election to Exercise) and payment of the Exercise Price
for such Rights (and any applicable transfer taxes and other governmental
charges payable by the exercising holder hereunder) was made; provided, however,
that if the date of such surrender and payment is a date upon which the transfer
books of the Common Shares of the Corporation are closed, such Person shall be
deemed to have become the holder of record of such Common Shares on, and such
certificate shall be dated, the next succeeding Business Day on which the
transfer books of the Common Shares are open. 

2.5                      Execution,
Authentication, Delivery and Dating of Rights Certificates: 

	 	(a) 	
      Execution: The Rights Certificates shall be
      executed on behalf of the Corporation, under its corporate seal reproduced
      thereon, by any one of its Chairman, President, Chief Executive Officer or
      a Vice-President or Secretary. The signature of any of these officers on
      the Rights Certificates may be manual or
facsimile.

- 27 - 

	 	(b) 	
      Valid Signatures: Rights Certificates bearing the
      manual or facsimile signatures of individuals who were at any time the
      proper officers of the Corporation shall bind the Corporation,
      notwithstanding that such individuals or any of them have ceased to hold
      such offices prior to the countersignature and delivery of such Rights
      Certificates.

	 	 	 
	 	(c) 	
      Delivery: Promptly after the Corporation learns of
      the Separation Time, the Corporation shall notify the Rights Agent of such
      Separation Time and shall deliver Rights Certificates executed by the
      Corporation to the Rights Agent for countersignature, and the Rights Agent
      shall countersign (manually or by facsimile signature in a manner
      satisfactory to the Corporation) and send such Rights Certificates to the
      holders of the Rights pursuant to Subsection 2.2(c) hereof. No Rights
      Certificate shall be valid for any purpose until countersigned by the
      Rights Agent in the manner described above.

	 	 	 
	 	(d) 	
      Date: Each Rights Certificate shall be dated the
      date of countersignature thereof.

2.6                    
Registration, Transfer and Exchange: 

	 	(a) 	
      Maintaining of Register: The Corporation shall
      cause to be kept a register (the “Rights Register”) in which,
      subject to such reasonable regulations as it may prescribe, the
      Corporation shall provide for the registration and transfer of Rights. The
      Rights Agent is hereby appointed registrar for the Rights (“Rights
      Registrar”) for the purpose of maintaining the Rights Register for the
      Corporation and registering Rights and transfers of Rights as herein
      provided and the Rights Agent hereby accepts such appointment. If the
      Rights Agent shall cease to be the Rights Registrar, the Rights Agent
      shall have the right to examine such register at all reasonable times.
      After the Separation Time and prior to the Expiration Time, upon surrender
      for registration of transfer or exchange of any Rights Certificate, and
      subject to the provisions of Subsection 2.6(c) below, the Corporation
      shall execute, and the Rights Agent shall countersign and deliver, in the
      name of the holder or the designated transferee or transferees, as
      requested pursuant to the holder’s instructions, one or more new Rights
      Certificates evidencing the same aggregate number of Rights as did the
      Rights Certificate so surrendered.

	 	 	 
	 	(b) 	
      Effect of Transfer or Exchange: All Rights issued
      upon any registration of a transfer or exchange of Rights Certificates
      shall be valid obligations of the Corporation, and such Rights shall be
      entitled to the same benefits under this Agreement as the Rights
      surrendered upon such registration of transfer or exchange.

	 	 	 
	 	(c) 	
      Transfer or Exchange of Rights: Every Rights
      Certificate surrendered for registration of transfer or exchange shall
      have the form of assignment thereon completed and executed, or be
      accompanied by a written instrument of transfer in form satisfactory to
      the Corporation or the Rights Agent, as the case may be, executed by the
      holder thereof or the attorney of such holder duly authorized
  in writing. As a condition to the issue of any new Rights
      Certificate under this Section 2.6, the Corporation may require the
      payment of an amount sufficient to cover any tax or other governmental
      charge that may be imposed in relation thereto and other expenses,
      including the reasonable fees and expenses of its Rights Agent, connected
  therewith.

- 28 - 

	 	(d) 	
      No Transfer or Exchange After Termination: The
      Corporation shall not be required to register the transfer or exchange of
      any Rights after the Rights have been terminated under Section 5.1(e)
      hereof.

2.7                    
Mutilated, Destroyed, Lost and Stolen Rights Certificates: 

	 	(a) 	
      Mutilation: If there shall be delivered to the
      Corporation and the Rights Agent prior to the Expiration Time, evidence to
      their satisfaction of the mutilation or defacing of any Rights
      Certificate, the Corporation shall execute and the Rights Agent shall
      countersign and deliver a new Rights Certificate upon surrender and
      cancellation of the mutilated or defaced Rights Certificate.

	 	 	 	 
	 	(b) 	
      Destruction, Loss: If there shall be delivered to
      the Corporation and the Rights Agent prior to the Expiration
  Time:

	 	 	 	 
	 		(i) 	
      evidence to their satisfaction of the destruction, loss
      or theft of any Rights Certificate; and

	 	 	 	 
	 		(ii) 	
      such security or indemnity as may be required by them to
      save each of them and their respective agents harmless, then, in the
      absence of notice to the Corporation or the Rights Agent that such Rights
      Certificate has been acquired by a bona fide purchaser, the Corporation
      shall execute and the Rights Agent shall countersign and deliver, in lieu
      of any such destroyed, lost or stolen Rights Certificate, a new Rights
      Certificate evidencing the same number of Rights as did the Rights
      Certificate so destroyed, lost or stolen.

	 	 	 	 
	 	(c) 	
      Taxes: As a condition to the issue of any new
      Rights Certificate under this Section 2.7, the Corporation may require the
      payment of an amount sufficient to cover any tax or other governmental
      charge that may be imposed in relation thereto and any other expenses,
      including the reasonable fees and expenses of the Rights Agent, connected
      therewith.

	 	 	 	 
	 	(d) 	
      Original Obligation: Every new Rights Certificate
      issued pursuant to this Section 2.7 in lieu of any mutilated, destroyed,
      lost or stolen Rights Certificate shall evidence an original additional
      contractual obligation of the Corporation, whether or not the mutilated,
      destroyed, lost or stolen Rights Certificate shall be at any time
      enforceable by anyone, and shall be entitled to all the benefits of this
      Agreement equally and proportionately with any and all other Rights issued
      hereunder.

- 29 - 

2.8                    
Persons Deemed Owners: 

                          The
Corporation, the Rights Agent and any agent of the Corporation or the Rights
Agent may deem and treat the Person in whose name such Rights Certificate (or,
prior to the Separation Time, the associated Common Share certificate) is
registered as the absolute owner thereof and of the Rights evidenced thereby for
all purposes whatsoever. As used in this Agreement, unless the context otherwise
requires, the term “holder” of any Right shall mean the registered holder of
such Right (or, prior to the Separation Time of the associated Common Share).

2.9                     Delivery
and Cancellation of Certificates: 

                          All
Rights Certificates surrendered upon exercise or for redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Rights
Agent, be delivered to the Rights Agent and, in any case, shall be promptly
cancelled by the Rights Agent. The Corporation may at any time deliver to the
Rights Agent for cancellation any Rights Certificates previously countersigned
and delivered hereunder which the Corporation may have acquired in any manner
whatsoever, and all Rights Certificates so delivered shall be promptly cancelled
by the Rights Agent. No Rights Certificates shall be countersigned in lieu of or
in exchange for any Rights Certificates cancelled as provided in this Section
2.9, except as expressly permitted by this Agreement. The Rights Agent shall
destroy all cancelled Rights Certificates and deliver a certificate of
destruction to the Corporation. 

2.10                  
Agreement of Rights Holders: 

                          Every
holder of Rights by accepting the same consents and agrees with the Corporation
and the Rights Agent and with every other holder of Rights that: 

	 	(a) 	
      such holder is bound by and subject to the provisions of
      this Agreement, as amended from time to time in accordance with the terms
      hereof, in respect of all Rights held;

	 	 	 
	 	(b) 	
      prior to the Separation Time, each Right shall be
      transferable only together with, and shall be transferred by a transfer
      of, the associated Common Share certificate representing such
  Right;

	 	 	 
	 	(c) 	
      after the Separation Time, the Rights Certificates shall
      be transferable only on the Rights Register as provided herein;

	 	 	 
	 	(d) 	
      prior to due presentment of a Rights Certificate (or,
      prior to the Separation Time, the certificate evidencing the associated
      Common Shares certificate) for registration of transfer, the Corporation,
      the Rights Agent and any agent of the Corporation or the Rights Agent may
      deem and treat the Person in whose name the Rights Certificate (or, prior
      to the Separation Time, the certificate evidencing the associated Common
      Shares certificate) is registered as the absolute owner thereof and of the
      Rights evidenced thereby (notwithstanding any notations of ownership or
      writing on such Rights Certificate or the certificate evidencing the
      associated Common Shares made by anyone other than the Corporation or
      the Rights Agent) for all purposes whatsoever, and neither
      the Corporation nor the Rights Agent shall be affected by any notice to
  the contrary;

- 30 - 

	 	(e) 	
      such holder has waived all rights to receive any
      fractional Right or any fractional Common Share or other securities upon
      exercise of a Right (except as provided herein); and

	 	 	 
	 	(f) 	
      subject to the provisions of Section 5.4, without the
      approval of any holder of Rights or Voting Shares and upon the sole
      authority of the Board of Directors, acting in good faith, this Agreement
      may be supplemented or amended from time to time to cure any ambiguity or
      to correct or supplement any provision contained herein which may be
      inconsistent with the intent of this Agreement or is otherwise defective,
      as provided herein.

	 	 	 
	 	(g) 	
      Notwithstanding anything in this Agreement to the
      contrary, neither the Corporation nor the Rights Agent shall have any
      liability to any holder of a Right or to any other Person as a result of
      its inability to perform any of its obligations under this Agreement by
      reason of any preliminary or permanent injunction or other order, decree
      or ruling issued by a court of competent jurisdiction or by a government,
      regulatory or administrative agency or commission, or any statute, rule,
      regulation or executive order promulgated or enacted by any governmental
      authority, providing or otherwise restraining performance of such
      obligation.

2.11                   Rights
Certificate Holder Not Deemed a Shareholder: 

                          No
holder, as such, of any Rights or Rights Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose whatsoever the holder of any
Common Share or any other share or security of the Corporation which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall
anything contained herein or in any Rights Certificate be construed or deemed or
confer upon the holder of any Right or Rights Certificate, as such, any right,
title, benefit or privilege of a holder of Common Shares or any other shares or
securities of the Corporation or any right to vote at any meeting of
shareholders of the Corporation whether for the election of directors or
otherwise or upon any matter submitted to the holders of Common Shares or any
other shares of the Corporation at any meeting thereof, or to give or withhold
consent to any action of the Corporation, or to receive notice of any meeting or
other action affecting any holder of Common Shares or any other shares of the
Corporation except as expressly provided herein, or to receive dividends,
distributions or subscription rights, or otherwise, until the Rights or Rights
evidenced by the Rights Certificates shall have been duly exercised in
accordance with the terms and the provisions hereof. 

ARTICLE 3 
ADJUSTMENTS TO THE RIGHTS 

3.1                     Flip-in
Event: 

	 	(a) 	
      Flip-In: Subject to the provisions of Sections
      3.1(b), 3.2 and Section 5.1, if prior to the Expiration Time a Flip-in
      Event shall occur, each Right shall constitute, effective at the close of
      business on the tenth Trading Day after the
Share Acquisition Date, the right to purchase from the
      Corporation, upon exercise thereof in accordance with the terms hereof,
      that number of Common Shares as have an aggregate Market Price on the date
      of consummation or occurrence of such Flip-in Event equal to twice the
      Exercise Price for an amount in cash equal to the Exercise Price (such
      right to be appropriately adjusted in a manner analogous to the applicable
      adjustment provided for in Section 2.3 hereof in the event that, after
      such date of consummation or occurrence, an event of a type analogous to
      any of the events described in Section 2.3 hereof shall have
  occurred).

- 31 - 

	 	(b) 	
      Certain Rights Void: Notwithstanding anything in
      this Agreement to the contrary, upon the occurrence of any Flip-in Event,
      any Rights that are or were Beneficially Owned on or after the earlier of
      the Separation Time and the Share Acquisition Date by:

	 	 	 	 
	 		(i) 	
      an Acquiring Person (or any Affiliate or Associate of an
      Acquiring Person or any Person acting jointly or in concert with an
      Acquiring Person or any Affiliate or Associate of an Acquiring Person);
      or

	 	 	 	 
	 		(ii) 	
      a transferee of Rights, directly or indirectly, of an
      Acquiring Person (or any Affiliate or Associate of an Acquiring Person or
      any Person acting jointly or in concert with an Acquiring Person or an
      Affiliate or Associate of an Acquiring Person), where such transferee
      becomes a transferee concurrently with or subsequent to the Acquiring
      Person becoming such in a transfer that the Board of Directors has
      determined is part of a plan, arrangement or scheme of an Acquiring Person
      (or any affiliate or associate of an Acquiring Person or any Person acting
      jointly or in concert with an Acquiring Person or any affiliate or
      associate of an Acquiring Person), that has the purpose or effect of
      avoiding Section 3.1(b)(i),

	 		
      shall become null and void without any further action and
      any holder of such Rights, including transferees, shall thereafter have no
      right to exercise such Rights under any provision of this Agreement and
      further shall thereafter not have any other rights whatsoever with respect
      to such Rights, whether under any provision of this Agreement or
      otherwise.

	 	 	 
	 	(c) 	
      Compliance with Laws: From and after the
      Separation Time, the Corporation shall do all acts and things as shall be
      necessary and within its power to ensure compliance with the provisions of
      this Section 3.1, including without limitation, all such acts and things
      that may be required to satisfy the requirements of the Securities Act
      (British Columbia) and the securities laws or comparable legislation
      of each of the Provinces of Canada in respect of the issue of Common
      Shares on the exercise of Rights in accordance with this
  Agreement.

	 	 	 
	 	(d) 	
      Legend: Any Rights Certificate that represents
      Rights Beneficially Owned by a Person described in either Section
      3.1(b)(i) or (ii) or transferred to any Nominee of any such Person, and
      any Rights Certificate issued upon the transfer,
exchange or replacement of any other Rights
Certificate referred to in this sentence shall contain and be deemed to contain
the following legend: 

- 32 - 

The Rights represented by this Rights Certificate were
issued to a Person who was an Acquiring Person or an Affiliate or an Associate
of an Acquiring Person (as such terms are defined in the Shareholder Rights
Agreement) or a Person who was acting jointly or in concert with an Acquiring
Person or an Affiliate or Associate of an Acquiring Person. This Rights
Certificate and the Rights represented hereby shall become void in the
circumstances specified in Subsection 3.1(b) of the Amended and Restated
Shareholder Rights Plan Agreement.

provided, however, that the Rights
Agent shall not be under any responsibility to ascertain the existence of facts
that would require the imposition of such legend but shall be required to impose
such legend only if instructed to do so by the Corporation or if a holder fails
to certify upon transfer or exchange in the space provided on the Rights
Certificate that such holder is not a Person described in such legend. 

3.2                    
Exchange Option: 

	 	(a) 	
      Optional Exchange: In the event that the Board of
      Directors acting in good faith shall determine that conditions exist which
      would eliminate or otherwise materially diminish in any respect the
      benefits intended to be afforded to the holders of Rights pursuant to this
      Agreement, the Board of Directors may at its option and without seeking
      the approval of holders of Common Shares or Rights at any time after a
      Flip-in Event has occurred, authorize the Corporation to issue and deliver
      in respect of each Right which is not void pursuant to Section 3.1(b)
      either:

	 	 	 	 
	 		(i) 	
      in return for the Exercise Price and Right, cash, debt,
      equity or other securities or other property or assets (or a combination
      thereof) having a value equal to twice the Exercise Price; or

	 	 	 	 
	 		(ii) 	
      in return for the Right and without further charge,
      subject to any amounts that may be required to be paid under applicable
      law, cash, debt, equity or other securities or other property or assets
      (or a combination thereof), having a value equal to the Exercise
    Price;

in full and final settlement of all
rights attaching to the Rights; provided that the value of any such debt, equity
or other securities or other property or assets shall be determined by the Board
of Directors who may rely for that purpose on the advice of a nationally
recognized Canadian firm of investment dealers or investment bankers selected by
the Board of Directors. To the extent that the Board of Directors determines in
good faith that any action need be taken pursuant to this Section 3.2, the Board of Directors may
      suspend the exercisability of the Rights for a period up to 60 days
      following the date of the occurrence of the relevant Flip-in Event in
      order to determine the appropriate form and value of cash, debt, equity or
      other securities or other property or assets (or a combination thereof to
      be issued or delivered on such exchange for Rights. In the event of any
      such suspension, the Corporation shall notify the Rights Agent and issue
      as promptly as practicable a public announcement stating that the
exercisability of the Rights has been temporarily suspended.

- 33 - 

	 	(b) 	
      Termination of Right to Exercise: If the Board of
      Directors authorizes and directs the exchange of cash, debt, equity or
      other securities or other property or assets (or a combination thereof)
      for Rights pursuant to Subsection 3.2(a) hereof, then without any further
      action or notice the right to exercise the Rights will terminate and the
      only right thereafter of a holder of Rights shall be to receive such cash,
      debt, equity or other securities or other property or assets (or a
      combination thereof) in accordance with the determination of the Board of
      Directors made pursuant to Section 3.2(a). Within 10 Business Days of the
      Board of Directors authorizing and directing any such exchange, the
      Corporation shall give notice of such exchange to the holders of such
      Rights in accordance with Section 5.9. Each such notice of exchange shall
      state the method by which the exchange of cash, debt, equity or other
      securities or other property or assets (or a combination thereof) for
      Rights will be effected.

	 	 	 
	 	(c) 	
      Additional Securities: If there shall not be
      sufficient securities authorized but unissued to permit the exchange in
      full of Rights pursuant to this Section 3.2, the Corporation will take all
      such action as may be necessary to authorize additional securities for
      issuance upon the exchange of Rights provided however, that the
      Corporation shall not be required to issue fractions of securities or to
      distribute certificates evidencing fractional securities. In lieu of
      issuing such fractional securities, subject to Section 5.5(b), there shall
      be paid to the registered holders of Rights to whom such fractional
      securities would otherwise be issuable, an amount in cash equal to the
      same fraction of the market price of a whole such
  security.

ARTICLE 4 
THE RIGHTS AGENT 

4.1                    
General: 

	 	(a) 	
      Appointment of Rights Agent: The Corporation
      hereby appoints the Rights Agent to act as agent for the Corporation and
      the holders of Rights in accordance with the terms and conditions hereof
      and the Rights Agent hereby accepts such appointment. The Corporation may
      from time to time appoint one or more Co- Rights Agents as it may deem
      necessary or desirable. In such event, the respective duties of the Rights
      Agent and any Co-Rights Agent shall be as the Corporation may determine.
      The Corporation agrees to pay to the Rights Agent reasonable compensation
      for all services rendered by it hereunder and, from time to time on demand
      of the Rights Agent, its reasonable expenses and counsel fees and
    other disbursements incurred in the administration and
      execution of this Agreement and the exercise and performance of its duties
      hereunder. The Corporation also agrees to indemnify the Rights Agent for,
      and to hold it harmless against, any loss, liability or expense, incurred
      without gross negligence, bad faith or wilful misconduct on the part of
      the Rights Agent, for anything done or omitted by the Rights Agent in
      connection with the acceptance and performance of this Agreement,
      including the costs and expenses of defending against any claim of
      liability, which right to indemnification shall survive the termination of
  this Agreement.

- 34 - 

	 	(b) 	
      Protection of Rights Agent: The Rights Agent shall
      be protected from, and shall incur no liability for or in respect of, any
      action taken, suffered or omitted by it in connection with its performance
      of this Agreement in reliance upon any certificate for Common Shares, or
      any Rights Certificate, certificate for other securities of the
      Corporation, instrument of assignment or transfer, power of attorney,
      endorsement, affidavit, letter, notice, direction, consent, certificate,
      statement or other paper or document believed by it to be genuine and to
      be signed, executed and, where necessary, verified or acknowledged, by the
      proper Person or Persons.

	 	 	 
	 	(c) 	
      Inform Rights Agent: The Corporation will inform
      the Rights Agent in a reasonably timely manner of events which may
      materially affect the administration of this Agreement by the Rights Agent
      and, at any time upon written request, will provide to the Rights Agent an
      incumbency certificate certifying the then current officers of the
      Corporation.

4.2                     Merger
or Amalgamation or Change of Name of Rights Agent: 

	 	(a) 	
      Merger: Any corporation into which the Rights
      Agent or any successor Rights Agent may be merged or amalgamated with or
      into, or any corporation succeeding to the shareholder services business
      of the Rights Agent or any successor Rights Agent, shall be the successor
      to the Rights Agent under this Agreement without the execution or filing
      of any paper or any further act on the part of any of the parties hereto,
      provided that such corporation would be eligible for appointment as a
      successor Rights Agent under the provisions of Section 4.4 hereof. In case
      at the time such successor Rights Agent succeeds to the agency created by
      this Agreement any of the Rights Certificates have been countersigned but
      not delivered, any such successor Rights Agent may adopt the
      countersignature of the predecessor Rights Agent and deliver such Rights
      Certificates so countersigned, and in case at that time any of the Rights
      Certificates have not been countersigned, any successor Rights Agent may
      countersign such Rights Certificates either in the name of the predecessor
      Rights Agent or in the name of the successor Rights Agent, and in all such
      cases such Rights Certificates shall have the full force and effect
      provided in the Rights Certificates and in this
  Agreement.

- 35 - 

	 	(b) 	
      Change of Name: In case at any time the name of
      the Rights Agent is changed and at such time any of the Rights
      Certificates shall have been countersigned but not delivered, the Rights
      Agent may adopt the countersignature under its prior name and deliver
      Rights Certificates so countersigned, and in case at that time any of the
      Rights Certificates shall not have been countersigned, the Rights Agent
      may countersign such Rights Certificates either in its prior name or in
      its changed name and in all such cases such Rights Certificates shall have
      the full force provided in the Rights Certificates and in this
      Agreement.

4.3                    
Duties of Rights Agent: 

                          The
Rights Agent undertakes the duties and obligations imposed by this Agreement
upon the following terms and conditions, by all of which the Corporation and the
holders of Rights Certificates, by their acceptance thereof, shall be bound:

	 	(a) 	
      Legal Counsel: The Rights Agent, at the expense of
      the Company may consult with legal counsel (who may be legal counsel for
      the Corporation), and the opinion of such counsel shall be full and
      complete authorization and protection to the Rights Agent as to any action
      taken or omitted to be taken by it in good faith and in accordance with
      such opinion.

	 	 	 
	 	(b) 	
      Satisfactory Proof: Whenever in the performance of
      its duties under this Agreement the Rights Agent deems it necessary or
      desirable that any fact or matter be proved or established by the
      Corporation prior to taking or suffering any action or omitting to take
      any action hereunder, such fact or matter (unless other evidence in
      respect thereof be herein specifically prescribed) may be deemed to be
      conclusively proved and established by a certificate signed by a person
      believed by the Rights Agent to be the Chairman, the President, the Chief
      Executive Officer or any Vice-President and by the Chief Financial
      Officer, the Treasurer, any Assistant Treasurer, the Secretary or any
      Assistant Secretary of the Corporation and delivered to the Rights Agent
      and such certificate shall be full authorization to the Rights Agent for
      any action taken, omitted or suffered in good faith by it under the
      provisions of this Agreement in reliance upon such certificate.

	 	 	 
	 	(c) 	
      Bad Faith: The Rights Agent shall be liable
      hereunder only for its own gross negligence, bad faith or wilful
      misconduct.

	 	 	 
	 	(d) 	
      Recitals: The Rights Agent shall not be liable for
      or by reason of any of the statements of fact or recitals contained in
      this Agreement or in the certificates representing Common Shares or the
      Rights Certificates (except its countersignature thereof) or be required
      to verify the same, but all such statements and recitals are and will be
      deemed to have been made only by the Corporation.

	 	 	 
	 	(e) 	
      No Responsibility: The Rights Agent shall not be
      under any responsibility in respect of the validity of this Agreement or
      the execution and delivery hereof (except the authorization, execution and
      delivery hereof by the Rights Agent) or in respect of the validity or execution of any
      certificate representing Common Shares or Rights Certificate (except its
      countersignature thereof), nor will it be responsible for any breach by
      the Corporation of any covenant or condition contained in this Agreement
      or in any Rights Certificate, any change in the exercisability of the
      Rights (including the Rights becoming void pursuant to Section 2.11 or
      Subsection 3.2(b) hereof) or any adjustment required under the provisions
      of Section 2.3 hereof or for the manner, method or amount of any such
      adjustment or the ascertaining of the existence of facts that would
      require any such adjustment (except with respect to the exercise of Rights
      after receipt of the certificate contemplated by Section 2.3 hereof
      describing any such adjustment) nor will it by any act hereunder be deemed
      to make any representation or warranty as to the authorization or
      reservation of any Common Shares to be issued pursuant to this Agreement
      or any Rights or as to whether any Common Shares shall, when issued, be
      duly and validly authorized, executed, issued and delivered and be fully
  paid and non-assessable.

- 36 - 

	 	(f) 	
      Performance By Corporation: The Corporation agrees
      that it will perform, execute, acknowledge and deliver or cause to be
      performed, executed, acknowledged and delivered all such further and other
      acts, instruments and assurances as may reasonably be required by the
      Rights Agent for the carrying out or performing by the Rights Agent of the
      provisions of this Agreement.

	 	 	 
	 	(g) 	
      Persons To Give Instructions: The Rights Agent is
      hereby authorized to rely upon and directed to accept instructions with
      respect to the performance of its duties hereunder from any person
      believed by the Rights Agent to be the Chairman, the President, the Chief
      Executive Officer, any Vice-President, the Secretary, any Assistant
      Secretary, the Chief Financial Officer, the Treasurer or any Assistant
      Treasurer of the Corporation and to apply to such persons for advice or
      instructions in connection with its duties, and it shall not be liable for
      any action taken, omitted or suffered by it in good faith in accordance
      with the instructions of any such person.

	 	 	 
	 	(h) 	
      Ability To Deal: The Rights Agent and any
      shareholder, director, officer or employee of the Rights Agent may buy,
      sell or deal in Common Shares, Rights or other securities of the
      Corporation or become pecuniarily interested in any transaction in which
      the Corporation may be interested, or contract with or lend money to the
      Corporation or otherwise act as fully and freely as though it were not
      Rights Agent under this Agreement. Nothing herein shall preclude the
      Rights Agent from acting in any other capacity for the Corporation or for
      any other legal entity.

	 	 	 
	 	(i) 	
      No Liability: The Rights Agent may execute and
      exercise any of the rights or powers hereby vested in it or perform any
      duty hereunder either itself or by or through its attorneys or agents, and
      the Rights Agent shall not be answerable or accountable for any act,
      default, neglect or misconduct of any such attorneys or agents or for any
      loss to the Corporation resulting from any such act,
  omission, default, neglect or misconduct,
provided reasonable care was exercised in the selection and continued employment
thereof. 

- 37 - 

4.4                    
Change of Rights Agent: 

                          The
Rights Agent may resign and be discharged from its duties under this Agreement
upon 60 days’ notice (or such lesser notice as is acceptable to the Corporation)
in writing delivered or mailed to the Corporation and to each transfer agent of
Common Shares by registered mail. The Corporation may remove the Rights Agent
upon 60 days’ notice in writing, mailed or delivered to the Rights Agent and to
each transfer agent of Common Shares by registered mail. If the Rights Agent
should resign or be removed or otherwise become incapable of acting, the
Corporation shall appoint a successor to the Rights Agent. If the Corporation
fails to make such appointment within a period of 60 days after such removal or
after it has been notified in writing of such resignation or incapacity by the
resigning or incapacitated Rights Agent or by the holder of any Rights (which
holder shall, with such notice, submit the Rights Certificate of such holder for
inspection by the Corporation), then the holder of any Rights may apply to any
court of competent jurisdiction for the appointment of a new Rights Agent. Any
successor Rights Agent, whether appointed by the Corporation or by such a court,
shall be a trust company incorporated under the laws of Canada or a province
thereof authorized to carry on the business of a trust company as principal or
through an agent in the Provinces of Ontario and British Columbia. After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights
Agent without further act or deed; provided that the predecessor Rights Agent,
upon payment of its account and expenses, shall deliver and transfer to the
successor Rights Agent any property at the time held by it hereunder, and
execute and deliver any further assurance, conveyance, act or deed necessary for
the purpose. Not later than the effective date of any such appointment, the
Corporation shall file notice thereof in writing with the predecessor Rights
Agent and the transfer agent of the Common Shares, and mail a notice thereof in
writing to the holders of the Rights. Failure to give any notice provided for in
this Section 4.4, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the appointment
of the successor Rights Agent, as the case may be. 

ARTICLE 5 
MISCELLANEOUS 

5.1                     Redemption
and Waiver: 

	 	(a) 	
      The Board of Directors acting in good faith may, until
      the occurrence of a Flip-in Event, upon prior written notice delivered to
      the Rights Agent, determine to waive the application of Section 3.1 to
      such particular Flip-in Event (which for greater certainty shall not
      include the circumstances described in Subsection 5.1(h)); provided that
      if the Board of Directors waives the application of Section 3.1 to a
      particular Flip-in Event pursuant to this Subsection 5.1(a), the Board of
      Directors shall be deemed to have waived the application of Section 3.1 to
      any other Flip-in Event which may arise in respect of any Take-Over Bid
      then in effect or made prior to the public announcement of the completion
      or termination of the transaction in respect of which the Board of Directors
  waived the application of Section 3.1.

- 38 - 

	 	(b) 	
      The Board of Directors acting in good faith may, at its
      option, at any time prior to the provisions of Section 3.1 becoming
      applicable as a result of the occurrence of a Flip-in Event, elect to
      redeem all but not less than all of the outstanding Rights at a redemption
      price of $0.0001 per Right appropriately adjusted in a manner analogous to
      the applicable adjustment provided for in Section 2.3 if an event of the
      type analogous to any of the events described in Section 2.3 shall have
      occurred (such redemption price being herein referred to as the
      “Redemption Price”). The redemption of the Rights by the Board of
      Directors may be made effective at such time, on such basis and with such
      conditions as the Board of Directors in its sole discretion may
      establish.

	 	 	 
	 	(c) 	
      In the event that prior to the occurrence of a Flip-in
      Event a Person acquires, pursuant to a Permitted Bid or a Competing
      Permitted Bid, not less than 90% of the outstanding Common Shares other
      than Common Shares Beneficially Owned at the date of the Permitted Bid or
      the Competing Permitted Bid by such Person, then the Board of Directors of
      the Corporation shall immediately upon the consummation of such
      acquisition without further formality be deemed to have elected to redeem
      the Rights at the Redemption Price.

	 	 	 
	 	(d) 	
      Where a Take-Over Bid that is not a Permitted Bid
      Acquisition is withdrawn or otherwise terminated after the Separation Time
      has occurred and prior to the occurrence of a Flip-in Event, the Board of
      Directors may elect to redeem all the outstanding Rights at the Redemption
      Price.

	 	 	 
	 	(e) 	
      If the Board of Directors is deemed under Subsection
      5.1(c) to have elected, or elects under either of Subsection 5.1(b) or
      (d), to redeem the Rights, the right to exercise the Rights will
      thereupon, without further action and without notice, terminate and the
      only right thereafter of the holders of Rights shall be to receive the
      Redemption Price.

	 	 	 
	 	(f) 	
      Within 10 days after the Board of Directors is deemed
      under Subsection 5.1(c) to have elected, or elects under Subsection 5.1(b)
      or (d), to redeem the Rights, the Corporation shall give notice of
      redemption to the holders of the then outstanding Rights by mailing such
      notice to each such holder at his last address as it appears upon the
      registry books of the Rights Agent or, prior to the Separation Time, on
      the registry books of the transfer agent for the Common Shares. Any notice
      which is mailed in the manner herein provided shall be deemed given,
      whether or not the holder receives the notice. Each such notice of
      redemption will state the method by which the payment of the Redemption
      Price will be made.

	 	 	 
	 	(g) 	
      Upon the Rights being redeemed pursuant to Subsection
      5.1(d), all the provisions of this Agreement shall continue to apply as if
      the Separation Time had not occurred and Rights Certificates representing
      the number of Rights held by each holder of record of Common Shares as of
      the Separation Time had not been mailed to each such holder and for all purposes of this
      Agreement the Separation Time shall be deemed not to have
  occurred.

- 39 - 

	 	(h) 	
      The Board of Directors may waive the application of
      Section 3.1 in respect of the occurrence of any Flip-in Event if the Board
      of Directors has determined within ten Trading Days following a Share
      Acquisition Date that a Person became an Acquiring Person by inadvertence
      and without any intention to become, or knowledge that it would become, an
      Acquiring Person under this Agreement and, in the event that such a waiver
      is granted by the Board of Directors, such Share Acquisition Date shall be
      deemed not to have occurred. Any such waiver pursuant to this Subsection
      5.1(b) must be on the condition that such Person, within 10 days after the
      foregoing determination by the Board of Directors or such later date as
      the Board of Directors may determine (the “Disposition Date”), has
      reduced its Beneficial Ownership of Voting Shares such that the Person is
      no longer an Acquiring Person. If the Person remains an Acquiring Person
      at the close of business on the Disposition Date, the Disposition Date
      shall be deemed to be the date of occurrence of a further Share
      Acquisition Date and Section 3.1 shall apply
thereto.

5.2                    
Expiration: 

                          No
Person shall have any rights pursuant to this Agreement or any Right after the
Expiration Time, except as provided in Section 4.1 hereof. 

5.3                    
Issue of New Rights Certificates: 

                          Notwithstanding
any of the provisions of this Agreement or of the Rights to the contrary, the
Corporation may, at its option, issue new Rights Certificates evidencing Rights
in such form as may be approved by the Board of Directors to reflect any
adjustment or change in the number or kind of securities purchasable upon
exercise of Rights made in accordance with the provisions of this Agreement.

5.4                    
Supplements and Amendments: 

	 	(a) 	
      The Corporation may make amendments to this Agreement to
      correct any clerical or typographical error or which are required to
      maintain the validity of this Agreement as a result of any change in any
      applicable legislation or regulations thereunder. The Corporation may,
      prior to the date of the shareholders’ meeting referred to in Section
      5.18, supplement or amend this Agreement without the approval of any
      holders of Rights or Voting Shares in order to make any changes which the
      Board of Directors acting in good faith may deem necessary or desirable.
      Notwithstanding anything in this Section 5.4 to the contrary, no such
      supplement or amendment shall be made to the provisions of Article 4
      except with the written concurrence of the Rights Agent to such supplement
      or amendment.

	 	 	 
	 	(b) 	
      Subject to the Section 5.4(a), the Corporation may, with
      the prior consent of the holders of Voting Shares obtained as set forth
      below, at any time prior to the Separation Time, amend, vary or rescind any of the
      provisions of this Agreement and the Rights (whether or not such action
      would materially adversely affect the interests of the holders of Rights
      generally). Such consent shall be deemed to have been given if the action
      requiring such approval is authorized by the affirmative vote of a
      majority of the votes cast by Independent Shareholders present or
      represented at and entitled to be voted at a meeting of the holders of
      Voting Shares duly called and held in compliance with applicable laws and
  the constating documents of the Corporation.

- 40 - 

	 	(c) 	
      The Corporation may, with the prior consent of the
      holders of Rights, at any time on or after the Share Acquisition Date,
      vary or delete any of the provisions of this Agreement and the Rights
      (whether or not such action would materially adversely affect the
      interests of the holders of Rights generally), provided that no such
      amendment, variation or deletion shall be made to the provisions of
      Article 4 except with the written concurrence of the Rights Agent thereto.
      Such consent shall be deemed to have been given if such amendment,
      variation or deletion is authorized by the affirmative votes of the
      holders of Rights present or represented at and entitled to be voted at a
      meeting of the holders and representing 50% plus one of the votes cast in
      respect thereof.

	 	 	 
	 	(d) 	
      Any approval of the holders of Rights shall be deemed to
      have been given if the action requiring such approval is authorized by the
      affirmative votes of the holders of Rights present or represented at and
      entitled to be voted at a meeting of the holders of Rights and
      representing a majority of the votes cast in respect thereof. For the
      purposes hereof, each outstanding Right (other than Rights which are void
      pursuant to the provisions hereof) shall be entitled to one vote, and the
      procedures for the calling, holding and conduct of the meeting shall be
      those, as nearly as may be, which are provided in the Corporation’s
      constating documents and the Business Corporations Act (British
      Columbia) with respect to meetings of shareholders of the
    Corporation.

	 	 	 
	 	(e) 	
      Any amendments made by the Corporation to this Agreement
      pursuant to Subsection 5.4(a) which are required to maintain the validity
      of this Agreement as a result of any change in any applicable legislation
      or regulation thereunder shall:

	 	(i) 	
      if made before the Separation Time, be submitted to the
      shareholders of the Corporation at the next meeting of shareholders and
      the shareholders may, by the majority referred to in Subsection 5.4(b),
      confirm or reject such amendment;

	 	 	 
	 	(ii) 	
      if made after the Separation Time, be submitted to the
      holders of Rights at a meeting to be called for on a date not later than
      immediately following the next meeting of shareholders of the Corporation
      and the holders of Rights may, by resolution passed by the majority
      referred to in Subsection 5.4(c), confirm or reject such
  amendment.

- 41 - 

Any such amendment shall be effective
from the date of the resolution of the Board of Directors adopting such
amendment, until it is confirmed or rejected or until it ceases to be effective
(as described in the next sentence) and, where such amendment is confirmed, it
continues in effect in the form so confirmed. If such amendment is rejected by
the shareholders or the holders of Rights or is not submitted to the
shareholders or holders of Rights as required, then such amendment shall cease
to be effective from and after the termination of the meeting at which it was
rejected or to which it should have been but was not submitted or from and after
the date of the meeting of holders of Rights that should have been but was not
held, and no subsequent resolution of the Board of Directors to amend this
Agreement to substantially the same effect shall be effective until confirmed by
the shareholders or holders of Rights as the case may be. 

5.5                    
Fractional Rights and Fractional Common Shares: 

	 	(a) 	
      No Fractional Rights: The Corporation shall not be
      required to issue fractions of Rights or to distribute Right Certificates
      which evidence fractional Rights. After the Separation Time, in lieu of
      issuing fractional Rights the Corporation shall pay to the holders of
      record of the Right Certificates, at the time such fractional Rights would
      otherwise be issuable, an amount in cash equal to the same fraction of the
      Market Price of one whole Right that the fraction of a Right that would
      otherwise be issuable is of one whole Right.

	 	 	 
	 	(b) 	
      No Fractional Common Shares: The Corporation shall
      not be required to issue fractions of Common Shares upon exercise of the
      Rights or to distribute certificates which evidence fractional Common
      Shares. In lieu of issuing fractional Common Shares, the Corporation shall
      pay to the holders of record of Right Certificates at the time such Rights
      are exercised as herein provided, an amount in cash equal to the same
      fraction of the Market Price of one Common Share that the fraction of a
      Common Share that would otherwise be issuable upon the exercise of such
      Right is of a whole Common Share.

5.6                    
Rights of Action: 

                          Subject
to the terms of this Agreement, rights of action in respect of this Agreement,
other than rights of action vested solely in the Rights Agent, are vested in the
respective holders of the Rights, and any holder of any Rights, without the
consent of the Rights Agent or of the holder of any other Rights may, on such
holder’s own behalf and for such holder’s own benefit and the benefit of other
holders of Rights, enforce, and may institute and maintain any suit, action or
proceeding against the Corporation to enforce, or otherwise act in respect of,
such holder’s right to exercise the Rights of such holder in the manner provided
in the Rights Certificate of such holder and in this Agreement. Without limiting
the foregoing or any remedies available to the holders of Rights, it is
specifically acknowledged that the holders of Rights would not have an adequate
remedy at law for any breach of this Agreement and shall be entitled to specific
performance of the obligations under, and injunctive relief against actual or
threatened violations of the obligations of any Person subject to, this
Agreement. 

- 42 - 

5.7                     Regulatory
Approvals: 

                          Any
obligation of the Corporation or action or event contemplated by this Agreement
shall be subject to the receipt of any requisite approval or consent from any
governmental or regulatory authority, and without limiting the generality of the
foregoing, necessary approvals of the TSX Venture Exchange and other exchanges
will be obtained, such as to the issuance of Common Shares upon the exercise of
Rights under Section 2.2(d) and the issuance of convertible debt, equity or
other securities or other property or assets under section 3.2. Notwithstanding
anything to the contrary in this Agreement, no supplement or amendment to this
Agreement or to the terms of the Rights may be made without the prior consent of
the TSX Venture Exchange. 

5.8                     Declaration
as to Non-Canadian holders: 

                          If
in the opinion of the Board of Directors (who may rely upon the advice of
counsel) any action or event contemplated by this Agreement would require
compliance by the Corporation with the securities laws or comparable legislation
of a jurisdiction outside Canada, the Board of Directors acting in good faith
shall take such actions as it may deem appropriate to ensure such compliance. In
no event shall the Corporation or the Rights Agent be required to issue or
deliver Rights, or securities issuable on exercise of Rights to persons who are
citizens, residents or nationals of any jurisdiction other than Canada, in which
such issue or delivery would be unlawful without registration of the relevant
persons or securities for such purposes. 

5.9                    
Notices: 

	 	(a) 	
      Notices or demands authorized or required by this
      Agreement to be given or made by the Rights Agent or by the holder of any
      Rights to or on the Corporation shall be sufficiently given or made if
      delivered, sent by registered mail, postage prepaid (until another address
      is filed in writing with the Rights Agent), or sent by facsimile or other
      form of recorded electronic communication, charges prepaid and confirmed
      in writing, as follows:

POLYMET MINING CORP.
1003-1177 West
Hastings Street 
Vancouver, B.C., V6E 2K3 

Attention: William
Murray
Telecopier No.: (604) 669-4705 

With a copy to: 

FARRIS, VAUGHAN, WILLS & MURPHY
LLP 
25th Floor, 700 West Georgia Street 
Vancouver, B.C., V7Y 1B3 

Attention: Mitchell H. Gropper, Q.C.

Telecopier No.: (604) 661-9349 

- 43 - 

	 	(b) 	
      Notices or demands authorized or required by this
      Agreement to be given or made by the Corporation or by the holder of any
      Rights to or on the Rights Agent shall be sufficiently given or made if
      delivered, sent by registered mail, postage prepaid (until another address
      is filed in writing with the Corporation), or sent by facsimile or other
      form of recorded electronic communication, charges prepaid and confirmed
      in writing, as follows:

Computershare Investor Services
Inc.
510 Burrard Street, 3rd Floor 
Vancouver, B.C., V6C 3B9 

Attention: Manager, Client
Services
Telecopier No.: (604) 661-9401 

	 	(c) 	
      Notices or demands authorized or required by this
      Agreement to be given or made by the Corporation or the Rights Agent to or
      on the holder of any Rights shall be sufficiently given or made if
      delivered or sent by registered mail, postage prepaid, addressed to such
      holder as it appears upon the register of the Rights Agent or, prior to
      the Separation Time, on the register of the Corporation for its Common
      Shares. Any notice which is mailed or sent in the manner herein provided
      shall be deemed given, whether or not the holder receives the
    notice.

	 	 	 
	 	(d) 	
      Any notice given or made in accordance with this Section
      5.9 shall be deemed to have been given and to have been received on the
      day of delivery, if so delivered, on the third Business Day (excluding
      each day during which there exists any general interruption of postal
      service due to strike, lockout or other cause) following the mailing
      thereof, if so mailed, and on the day of telegraphing, telecopying or
      sending of the same by other means of recorded electronic communication
      (provided such sending is during the normal business hours of the
      addressee on a Business Day and if not, on the first Business Day
      thereafter). Each of the Corporation and the Rights Agent may from time to
      time change its address for notice to the other given in the manner
      aforesaid.

5.10                 
Costs of Enforcement: 

                          The
Corporation agrees that if the Corporation or any other Person the securities of
which are purchasable upon exercise of Rights, fails to fulfil any of its
obligations pursuant to this Agreement, then the Corporation or such Person
shall reimburse the holder of any Rights for the costs and expenses (including
legal fees) incurred by such holder in actions to enforce his rights pursuant to
any Rights or this Agreement. 

5.11                  
Successors: 

                          All
of the covenants and provisions of this Agreement by or for the benefit of the
Corporation or the Rights Agent shall bind their respective successors and
assigns and shall inure to the benefit of their respective successors and
permitted assigns hereunder. 

- 44 - 

5.12                   Compliance
with Money Laundering Legislation 

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

5.13                  
Privacy Laws 

                          The
corporation and the Rights Agent acknowledge that federal and/or provincial
legislation that addresses the protection of individuals’ personal information
(collectively, “Privacy Laws”) applies to obligations and activities
under this Agreement. Despite any other provision of this Agreement, neither
party shall take or direct any action that would contravene, or cause the other
party to contravene, applicable Privacy Laws. The Corporation shall, prior to
transferring or causing to be transferred personal information to the Rights
Agent, obtain and retain required consents of the relevant individuals to the
collection, use and disclosure of their personal information, or shall have
determined that such consents either have previously been given upon which the
parties can rely or are not required under the Privacy Laws. The Rights Agent
shall use commercially reasonable efforts to ensure that its services hereunder
comply with Privacy Laws. 

5.14                   Benefits
of this Agreement: 

                          Nothing
in this Agreement shall be construed to give to any Person other than the
Corporation, the Rights Agent and the holders of Rights any legal or equitable
right, remedy or claim under this Agreement and this Agreement shall be for the
sole and exclusive benefit of the Corporation, the Rights Agent and the holders
of Rights. 

5.15                  
Governing Law: 

                          This
Agreement and each Right issued hereunder shall be deemed to be a contract made
under the laws of British Columbia and for all purposes shall be governed by and
construed in accordance with such laws. 

5.16                  
Severability: 

                          If
any term or provision hereof or the application thereof in any circumstance
shall, in any jurisdiction and to any extent, be invalid or unenforceable, such
term or provision shall be ineffective as to such jurisdiction to the extent of
such invalidity or unenforceability without invalidating or rendering
unenforceable the remaining terms and provisions hereof or the application of such term or provision in circumstances other
than those as to which it is held invalid or unenforceable. 

- 45 - 

5.17                  
Effective Date: 

                          This
Agreement is effective and in full force and effect in accordance with its terms
from and after the Effective Date, subject to confirmation pursuant to section
5.18. 

5.18                  
Confirmation: 

                          This
Agreement is effective and in full force and effect from and after the Effective
Date. If a majority of greater than 50% of the votes cast by the Independent
Shareholders who vote in respect of a resolution to ratify and approve the
continued existence of the 2008 Amended and Restated Agreement and the amendment
and restatement thereof as provided herein at the annual meeting of shareholders
of the Corporation to be held in 2013 are voted in favour of such resolution,
this Agreement shall upon such approval of such resolution amend, restate and
supersede the 2008 Amended and Restated Agreement and shall be deemed to be
effective from and after the Effective Date. If such resolution is not then so
approved by the aforesaid Independent Shareholders, this Agreement shall have no
force or effect, provided that termination shall not occur if a Flip-in Event
has occurred (other than a Flip-in Event which has been waived pursuant to
Section 5.1(a) or (h) hereof) prior to the date upon which this Agreement would
otherwise terminate pursuant to this Section 5.18. For greater certainty, if
this Agreement is not confirmed at such meeting by a majority of the votes cast
by holders of Voting Shares who vote in respect of the confirmation of this
Agreement, this Agreement and all outstanding Rights shall terminate and be void
and of no further force and effect on and from the close of business on the date
of termination of such meeting.

5.19                  
Re-confirmation; 

                          This
Agreement must be reconfirmed by a resolution passed by a majority of greater
than 50% of the votes cast by the Independent Shareholders in each case present
in person or voting by proxy at a meeting of those shareholders of the
Corporation who vote in respect of such reconfirmation at every third annual
meeting following the Effective Date. If the Agreement is not so reconfirmed or
is not presented for reconfirmation at such meetings of holders of Shares, the
Agreement and all outstanding Rights shall terminate and be void and of no
further force and effect on and from the date of termination of the annual
meeting; provided that termination shall not occur if a Flip-in Event has
occurred (other than a Flip-in Event which has been waived pursuant to Section
5.1(a) or (h) hereof), prior to the date upon which this Agreement would
otherwise terminate pursuant to this Section 5.19. 

- 46 - 

5.20                   Determinations
and Actions by the Board of Directors: 

                          All
actions, calculations, interpretations and determinations (including all
omissions with respect to the foregoing) which are done or made by the Board of
Directors pursuant to this Agreement, in good faith, (i) may be relied on by the
Rights Agent, and (ii) shall not subject the Board of Directors to any liability
to the holders of the Rights or to any other parties. 

5.21                  
Counterparts: 

                          This
Agreement may be executed in any number of counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute one and the same instrument. 

- 47 - 

                          IN
WITNESS WHEREOF the parties hereto have caused this Agreement to be duly
executed. 

POLYMET MINING CORP. 

	 	By: 	“Douglas Newby” 
	 	 	Name: Douglas Newby
    
	 	  	Title: Chief Financial Officer
  

COMPUTERSHARE INVESTOR SERVICES
INC. 

	 	By: 	“Jenny Karim” 
	 	  	Name: 
	 	  	Authorized Signatory 
	 	  	  
	 	By: 	“June Glover” 
	 	  	Name: 
	 	  	Authorized Signatory
  

	SCHEDULE A TO THE AMENDED AND RESTATED 
	SHAREHOLDER RIGHTS PLAN AGREEMENT 
	DATED AS OF JULY 9, 2013 
	(amending and restating a shareholder rights 
	plan agreement dated as of December 4, 2003 and as
      amended and restated May 25, 2007 and 
	June 17, 2008) BETWEEN POLYMET MINING CORP. AND
  
	COMPUTERSHARE
      INVESTOR SERVICES INC. 

[Form of Rights Certificate] 

	Certificate No. ______________	__________________Rights 

THE RIGHTS ARE SUBJECT TO REDEMPTION OR MANDATORY EXCHANGE, AT
THE OPTION OF POLYMET MINING CORP., ON THE TERMS SET FORTH IN THE AMENDED
AND RESTATED SHAREHOLDER RIGHTS PLAN AGREEMENT. RIGHTS BENEFICIALLY OWNED BY
ACQUIRING PERSONS (AS SUCH TERMS ARE DEFINED IN THE SHAREHOLDER RIGHTS
AGREEMENT) OR CERTAIN TRANSFEREES THEREOF ARE VOID. 

Rights Certificate 

                          This
certifies that____________ , or registered assigns, is the holder of record of the number of
Rights set forth above, each one of which entitles the holder of record thereof,
subject to the terms, provisions and conditions of the Amended and Restated
Shareholder Rights Plan Agreement (the “Amended and Restated Shareholder
Rights Plan Agreement”), dated as of July 9, 2013 (amending and restating a
shareholder rights plan agreement dated as of December 4, 2003 and as amended
and restated May 25, 2007 and June 17, 2008), between POLYMET MINING CORP. (the
“Corporation”), a corporation incorporated under the Company Act (British
Columbia), and COMPUTERSHARE INVESTOR SERVICES INC., a trust company
incorporated under the laws of British Columbia, as Rights Agent under the
Amended and Restated Shareholder Rights Plan Agreement, to purchase from the
Corporation at any time after the Separation Time and prior to the Expiration
Time (as such terns are defined in the Amended and Restated Shareholder Rights
Plan Agreement), one common share of the Corporation (a “Common Share”)
(subject to adjustment as provided in the Amended and Restated Shareholder
Rights Plan Agreement) at the Exercise Price referred to below, upon
presentation and surrender of this Rights Certificate with a completed and
executed Form of Election to Exercise at the principal office of the Rights
Agent in Vancouver, Canada. The Exercise Price shall initially be $50 (Cdn.) per
Common Share and shall be subject to adjustment in certain events as provided in
the Amended and Restated Shareholder Rights Plan Agreement. 

                          In
certain circumstances described in the Amended and Restated Shareholder Rights
Plan Agreement, the Rights evidenced hereby may entitle the holder of record
thereof to purchase shares of an entity other than the Corporation or to
purchase or receive in exchange for such Rights assets, securities or shares of
the Corporation other than Common Shares or more or less than one Common Share, or some combination of the
foregoing, all as provided in the Amended and Restated Shareholder Rights Plan
Agreement. 

- 2 - 

                          This
Rights Certificate is subject to all of the terms, provisions and conditions of
the Amended and Restated Shareholder Rights Plan Agreement which terms,
provisions and conditions are hereby incorporated herein by reference and made a
part hereof and to which reference is hereby made for a full description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Rights Agent, the Corporation and the holders of the Rights Certificates. A
copy of the Amended and Restated Shareholder Rights Plan Agreement is on file at
the principal executive office of the Corporation and is available upon written
request. 

                          This
Rights Certificate, with or without other Rights Certificates, upon surrender at
the offices of the Rights Agent designated for such purpose, may be exchanged
for another Rights Certificate or Rights Certificates of like tenor and date
evidencing the aggregate number of Rights equal to the aggregate number of
Rights evidenced by the Rights Certificate or Rights Certificates so
surrendered. If this Rights Certificate shall be exercised in part, the holder
of record shall be entitled to receive, upon surrender hereof, another Rights
Certificate or Rights Certificates for the number of whole Rights not exercised.

                          Subject
to the provision of the Amended and Restated Shareholder Rights Plan Agreement,
the Rights evidenced by this Certificate may be redeemed by the Corporation at a
redemption price of $0.0001 per Right, subject to adjustment in certain events,
under certain circumstances at the option of the Corporation. 

                          Subject
to the provisions of the Amended and Restated Shareholder Rights Plan Agreement,
the Rights evidenced by this Certificate may be terminated or amended by the
Corporation at its option without the consent of holders of Rights. 

                          No
fractional Common Shares will be issued upon the exercise of any Right or Rights
evidenced hereby nor will Rights Certificates be issued for less than one whole
Right. After the Separation Time, in lieu of issuing factional Rights a cash
payment will be made as provided in the Amended and Restated Shareholder Rights
Plan Agreement. 

                          No
holder of this Rights Certificate, as such, shall be entitled to vote or receive
dividends or be deemed for any purpose the holder of Common Shares or of any
other securities which may at any time be issuable on the exercise hereof, nor
shall anything contained in the Amended and Restated Shareholder Rights Plan
Agreement or herein be construed to confer upon the holder hereof, as such, any
of the rights of a shareholder of the Corporation or any right to vote for the
election of directors or upon any matter submitted to shareholders of the
Corporation at any meeting, to give or withhold consent to any corporate action,
to receive notice of meetings or other actions affecting shareholders of the
Corporation (except as provided in the Amended and Restated Shareholder Rights
Plan Agreement), to receive dividends or subscription rights or otherwise, until
the Rights evidenced by this Rights Certificate shall have been exercised as
provided in the Amended and Restated Shareholder Rights Plan Agreement. 

                          This
Rights Certificate shall not be valid or obligatory for any purpose until it
shall have been countersigned by the Rights Agent. 

- 3 - 

                         
WITNESS the facsimile signature of the proper officers of the
Corporation. 

	 	 	POLYMET MINING CORP.

	 	 	  
	 	By:	 
	 	 	Name: 
	 	 	Authorized Signatory
  

Countersigned by and on behalf of the Rights
Agent,
COMPUTERSHARE INVESTOR SERVICES INC. 

	By:	 	 
	 	Name: 	 
	 	Authorized Signatory 	 

[Form of Reverse Side of Rights Certificate] 

POLYMET MINING CORP. - FORM OF ASSIGNMENT 

(To be executed by the holder of record if such
holder
desires to transfer the Rights.) 

FOR VALUE RECEIVED ____________________________________________
hereby sells, assigns and transfers unto
____________________________________________
____________________________________________

 

(Please
  print name and address of transferee)

this Rights Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint
__________________________________as attorney, to transfer the within Rights
Certificate on the books of the Corporation with full power of substitution.

Dated: ____________________________ [month, day,
year] 

	Signature Guaranteed: 	 
	 	Signature 
	 	(Signature must correspond to name as
      written upon 
	 	the face of this Rights Certificate in every
      particular, 
	 	without alteration or enlargement or any
      change 
	 	whatsoever.) 

                          The
signature of the person executing this form must be guaranteed by a Canadian
chartered bank or eligible guarantor institution with membership in an approved
signature guarantee medallion program. 

CERTIFICATION 
(To be completed if true) 

                          The
undersigned hereby represents, warrants and certifies, for the benefit of all
holders of Rights and Common Shares, that the Rights evidenced by this Rights
Certificate are not, and, to the knowledge of the undersigned, have never been,
Beneficially Owned by an Acquiring Person or an Affiliate or Associate of an
Acquiring Person or any Person acting jointly or in concert with an Acquiring
Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Amended and Restated Shareholder Rights Plan Agreement). 

	Signature Guaranteed: 	 
	 	Signature 
	 	(Signature must correspond to name as
      written upon 
	 	the face of this Rights Certificate in every
      particular, 
	 	without alteration or enlargement or any
      change 
	 	whatsoever.) 

NOTICE 

In the event the certification set forth above is not
completed in connection with a purported assignment, the Corporation will deem
the Beneficial Owner of the Rights evidenced by this Rights Certificate to be an
Acquiring Person or an Affiliate or Associate of an Acquiring Person or any
Person acting jointly or in concert with an Acquiring Person or an Affiliate or
Associate of an Acquiring Person (as defined in the Amended and Restated
Shareholder Rights Plan Agreement) and accordingly will deem the Rights
evidenced by this Rights Certificate to be void and not transferable or
exercisable. 

FORM OF ELECTION TO EXERCISE 

(To be executed if the holder desires to exercise the Rights
Certificate) 

	TO: 	Computershare Investor Services Inc 
	 	510 Burrard Street, 2nd Floor  
	 	Vancouver, B.C., V6C
  3B9  

The undersigned hereby irrevocably elects to exercise
______________________________________ whole Rights represented by the attached
Rights Certificate to purchase the Common Shares issuable upon the exercise of
such Rights and requests that certificates for such Common Shares be issued in
the name of: 

	Address: 
	 
	 
	 
	 
	Social Insurance or Other Taxpayer Identification Number:
    
	 

If such number of Rights shall not be all the whole Rights
evidenced by this Rights Certificate, a new Rights Certificate for the balance
of such whole Rights shall be registered in the name of and delivered to: 

	Full Address, including postal code: 
	 
	 
	 
	 
	Social Insurance or Other Taxpayer Identification Number:
    
	 
	 
	 
	Dated: _____________________[month, day, year]
  

	Signature Guaranteed: 	 
	 	Signature 
	 	(Signature must correspond to name as
      written upon 
	 	the face of this Rights Certificate in every
      particular, 
	 	without alteration or enlargement or any
      change 
	 	whatsoever.) 

                          The
signature of the person executing this form must be guaranteed by a Canadian
chartered bank or eligible guarantor institution with membership in an approved
signature guarantee medallion program. 

- 2 - 

CERTIFICATION 
(To be completed if true) 

                   The
undersigned hereby represents, warrants and certifies for the benefit of all
holders of Rights and Common Shares, that the Rights evidenced by this Right
Certificate are not, and, to the knowledge of the undersigned, have never been,
Beneficially Owned by an Acquiring Person or an Affiliate or Associate of an
Acquiring Person or any Person acting jointly or in concert with an Acquiring
Person or an Affiliate or Associate of an Acquiring Person (as such terms are
defined in the Amended and Restated Shareholder Rights Plan Agreement). 

	 	 
	 	Signature 

NOTICE 

                   In
the event the certification set forth above is not completed in connection with
a purported assignment, the Corporation will deem the Beneficial Owner of the
Rights evidenced by this Rights Certificate to be an Acquiring Person or an
Affiliate or Associate of an Acquiring Person or any Person acting jointly or in
concert with an Acquiring Person or an Affiliate or Associate of an Acquiring
Person (as defined in the Shareholder Rights Agreement) and accordingly will
deem the Rights evidenced by this Rights Certificate to be void and not
transferable or exercisable.

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