Document:

Passport Potash Inc.: Exhibit 10.6 - Filed by newsfilecorp.com

MINERAL PROPERTY OPTION AGREEMENT

THIS AGREEMENT is dated for reference as of the
31st day of August, 2010

BETWEEN:

MESA URANIUM CORP., a company
duly incorporated 
pursuant to the laws of the State of Nevada, and having
its business 
office situated at 290 Gentry Way, Suite 7, Reno, Nevada
89502

(the “Optionor”)

OF THE FIRST PART

AND:

PASSPORT POTASH INC., a company
duly incorporated 
pursuant to the laws of the Province of Quebec and having
its 
business office situated at 608 – 1199 West Pender Street,

Vancouver, BC V6E 2R1

(the “Optionee”)

OF THE SECOND PART

WHEREAS:

(A) The Optionor is the recorded and beneficial owner of
certain exploration leases in the state of Arizona, as detailed in the specific
description of the exploration leases attached hereto as Schedule “A” (herein
called the “Leases”);

(B) The Optionor has agreed to grant an exclusive option to the
Optionee to acquire a 100% undivided interest in the Leases by paying certain
consideration and by incurring certain exploration Expenditures as detailed
herein;

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the Optionee’s agreement, as set out below, and valuable
consideration, the receipt and sufficiency whereof is by the Optionor hereby
acknowledged, the parties agree as follows:

PART 1

DEFINITIONS

1.1 In this Agreement, except as otherwise expressly provided
or as the context otherwise requires,

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(a) “Effective Date” means the
date upon which the TSX Venture Exchange grants to the Optionee its acceptance
respecting this Agreement subject to §4.6;

(b) “Expeditures” means all
direct or indirect costs and expenses incurred by the Optionee in respect of
prospecting and exploring the Leases (plus an allowance of 10% of such costs and
expenses for a general overhead allowance) after the date of this Agreement
pursuant to Part 4 hereof. The certificate of the Controller or other financial
officer of the Optionee, together with a statement of Expenditures in reasonable
detail shall be prima facie evidence of such Expenditures;

(c) “Force Majeure” has the
meaning set forth in Part 13;

(d) “Option” means the exclusive
right herein granted by the Optionor to the Optionee to permit the Optionee to
acquire up to an undivided 100% ownership interest in the Leases;

(e) “Option Period” means the
period from the date above written on page one to and including the earliest
of

(i) the date of exercise of the
Option, and

(ii) the termination hereof pursuant
to Part 15;

(f) “Leases” means the three (3)
exploration leases described in Schedule “A”;

(g) “Property Rights” means all
licenses, permits, easements, rights-of-way, surface or water rights and other
rights, approvals obtained by either of the parties either before or after the
date of this Agreement and necessary or desirable for the development of the
Leases, or for the purpose of placing the Leases into production or continuing
production therefrom; and

(h) “Schedule” means the
documents attached hereto as follows:

(i) Schedule “A” – Arizona State Land
Department exploration leases.

PART 2

REPRESENTATIONS, WARRANTIES AND COVENANTS OF OPTIONOR

2.1 The Optionor represents and warrants to the Optionee
that:

(a) it has been duly incorporated and
validly exists as a corporation in good standing under the laws of the State of
Arizona and is authorized to hold mineral claims in the State of Arizona, and it
is exclusively legally entitled to hold the Leases and all mineral claims
comprised therein, and all Property Rights held by it and will remain so
entitled until all interests of the Optionor in the Leases earned by the
Optionee have been duly transferred to the Optionee as contemplated hereby or
this Option has terminated,

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(b) it is, and will be at the time of
transfer to the Optionee of the Leases, the recorded holder and beneficial owner
of the Leases free and clear of all liens, charges and claims of others and no
taxes or rentals are due in respect of any thereof and to its knowledge and
belief; the Leases have been duly and validly located and recorded pursuant to
the laws of Arizona and are in good standing in the office of the Arizona State
Land department on the date hereof,

(c) there is no adverse claim or
challenge against or to the ownership of or title to the Leases, nor to the
knowledge of the Optionor is there any basis therefor, and there are no
outstanding agreements or options to acquire or purchase the Leases or any
portion thereof, and no person other than the Optionor, pursuant to the
provisions hereof, has any royalty or other interest whatsoever in production
from any of the mineral claims under the Leases,

(d) no third party consent of any kind
is required by the Optionor to enter into this Agreement and grant the Option
contemplated hereby,

(e) upon request by the Optionee, the
Optionor shall deliver or cause to be delivered to the Optionee copies of all
available maps and other documents and data in its possession respecting the
Leases,

(f) the Optionor shall assume sole
responsibility and liability for any obligations outstanding as of the date
hereof with respect to reclamation of the property comprising the Leases,

(g) the execution and delivery of this
Agreement and the agreements contemplated hereby by the Optionor will not
violate or result in the breach of the laws of any jurisdiction applicable or
pertaining thereto or of its constating documents, and

(h) this Agreement constitutes a legal,
valid and binding obligation of the Optionor.

2.2 The representations and warranties contained in §2.1 are
provided for the exclusive benefit of the Optionee, and a breach of any one or
more thereof may be waived by the Optionee in whole or in part at any time
without prejudice to its rights in respect of any other breach of the same or
any other representation or warranty; and the representations and warranties
contained in §2.1 will survive the execution hereof and continue throughout the
Option Period.

PART 3

REPRESENTATIONS AND WARRANTIES OF OPTIONEE

3.1 The Optionor represents and warrants to the Optionor
that:

(a) it has been duly incorporated and
validly exists as a corporation in good standing under the laws of Quebec and
will, through a subsidiary corporation, be authorized to hold mineral leases in
the State of Arizona;

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(b) neither the execution and delivery
of this Agreement by the Optionee nor the performance by the Optionee of its
obligations hereunder conflicts with the Optionee’s constating documents or any
agreement to which it is bound;

3.2 The representations and warranties contained in §3.1 are
provided for the exclusive benefit of the Optionor and a breach of any one or
more thereof may be waived by the Optionor in whole or in part at any time
without prejudice to its rights in respect of any other breach of the same or
any other representation or warranty; and the representations and warranties
contained in §3.1 will survive the execution hereof and continue throughout the
Option Period.

PART 4

GRANT AND EXERCISE OF OPTION

The Optionor hereby grants to the Optionee the sole and
exclusive right and option, subject to the terms of this Agreement, to earn a
100% undivided interest in the Leases free and clear of all charges and
encumbrances.

4.1 In order to exercise the Option and earn a 100% undivided
interest in the Leases free and clear of all charges and encumbrances, the
Optionee must perform the following:

(a) Issue to the Optionor 500,000
shares of the Optionee upon receipt of TSX Venture Exchange approval;

(b) Pay US$20,000 cash to the Optionor
within 90 days of the completion of the Optionee’s next financing;

(c) Meeting the minimum exploration
expenditures as required by the Arizona State Land Department which in 2010
total $19,517.80;

On completion of all terms set out in §§4.1(a), (b) and (c),
the Optionee shall have earned a 75% interest and title to the Leases shall be
transferred to the Optionee or its subsidiary, as directed by the Optionee;
and

(d) 100% of exploration expenditures
are to be paid by the Optionee; and

(e) Subject to the NSR Royalty in
favour of the Optionor described in §4.2 below, the Optionee shall have the
right to acquire the remaining 25% interest by paying US$100,000 cash, share
equivalent or work expenditure, in its sole discretion.

4.2 The Optionor shall retain a 2% NSR Royalty in the Leases
with the Optionee having the option to purchase the NSR Royalty at the price of
US$150,000 per 1% or US$300,000 for the full 2%.

4.3 The Optionor acknowledges that each share certificate
issued pursuant to this Part 4 shall have imprinted thereon a legend restricting
transfer in Canada for four months plus one day from the date of the issuance of the shares and a U.S.
legend confirming the Optionee is not registered in the United States.

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4.4 All issuances of shares to be made by the Optionee pursuant
to this Part 4 shall be registered in the name of Mesa Uranium Corp.

4.5 The Optionee retains the right to manage the sales of any
shares of the Optionee issued to the Optionor pursuant to §4.1. To “manage”
means to have the right to direct the resale of shares within a 30 day period of
being notified that the Optionor desires to sell shares in order to assist the
Optionor in finding a buyer for shares so that such resales will not unduly
disturb the public market for the Optionee’s shares. The right to manage
re-sales of each tranche of shares expires 12 months after the issuance of that
tranche of shares to the Optionor.

4.6 If the Effective Date has not occurred within 120 days of
the date of execution hereof, then either party may terminate this Option
Agreement without liability, by notice to the other party.

PART 5

ASSIGNMENT OF OPTION

5.1 Subject to Part 11, the Optionee may assign all or part of
its obligations under this Option Agreement during the Option Period to a third
party (the “Assignee”) with consent of the Optionor, such consent not to be
unreasonably withheld, providing also that the Assignee agrees to execute an
acknowledgement to be bound by the terms hereof insofar as the Optionor’s rights
hereunder are concerned. Such Assignee shall issue shares in its capital to
fulfill the share obligations in §4.1.

PART 6

EXERCISE OF OPTION

6.1 The Optionee may in its sole discretion at any time
accelerate the payment of the consideration and incur the Expenditures on the
Leases required by §4.1 (or §4.2) to exercise the Option and thereby earlier
acquire its interest in the Leases.

6.2 If and when the Option has been exercised, a 100% right,
title and interest in and to the Leases will vest in the Optionee free and clear
of all charges, encumbrances and claims.

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PART 7

RIGHT OF ENTRY

7.1 Throughout the Option Period, the Directors and Officers of
the Optionee and its servants, agents and independent contractors, will have the
sole and exclusive right in respect of the Leases to

(a) enter thereon,

(b) have exclusive and quiet possession
thereof,

(c) do such prospecting, exploration,
development and/or other mining work thereon and thereunder as the Optionee in
its sole discretion may determine advisable, 

(d) bring upon and erect under the
Leases buildings, plant, machinery and equipment as the Optionee may deem
advisable, and

(e) remove therefrom and dispose of
reasonable quantities of ores, mineral and metals for the purpose of obtaining
assays or making other tests.

PART 8

RECORD OF OPTION AGREEMENT

8.1 The Optionee will be entitled to record a notice of the
existence of this Option in the applicable mining recorder’s office.

PART 9

OBLIGATIONS OF OPTIONEE DURING OPTION PERIOD 

9.1 During the Option Period the Optionee will

(a) maintain in good standing those
mineral claims comprised in the Leases that are in good standing on the date
hereof by the doing and filing of the maximum available assessment work credits
under the Leases or by making of payments in lieu of the minimum requirements,
by the payment of taxes and rentals and the performance of all other actions
which may be necessary in that regard and in order to keep such mineral claims
free and clear of all liens and other charges arising from the Optionee’s
activities thereon except those at the time contested in good faith by the
Optionee,

(b) permit the directors, officers,
employees and designated consultants of the Optionor, at their own risk, access
to the mineral claims under the Leases at all reasonable times subject always to
Part 14, and providing the Optionor agrees to indemnify the Optionee against and
to save the Optionee harmless from all costs, claims, liabilities and expenses that the
Optionee may incur or suffer as a result of any injury (including injury causing
death) to any director, officer, employee or designated consultant of the
Optionor while on the mineral claims under the Leases,

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(c) deliver to the Optionor on or
before six months after each anniversary hereof, a report (including up-to-date
maps if there are any) describing the results of work done in the last completed
expenditure year, together with reasonable details of Expenditures made,

(d) do all work on the Leases in a good
and workmanlike fashion and in accordance with all applicable laws, regulations,
orders and ordinances of any governmental authority and file for all available
assessment credits, and

(e) indemnify and save the Optionor
harmless in respect of any and all costs, claims, liabilities and expenses
arising out of the Optionee’s activities on the Leases and, without limiting the
generality of the foregoing will, during the currency of this Agreement, cause
any of its independent contractors to carry not less than $1 million in third
party liability insurance in respect of their operations conducted on the Leases
on behalf of the Optionee, such insurance to be for the benefit of the Optionee
and the Optionor as their interests appear; provided that neither the Optionee
nor its independent contractors will incur any obligation thereunder in respect
of claims arising or damages suffered after termination of the Option if upon
termination of the Option any workings on or improvements to the Leases made by
the Optionee are left in a safe condition and substantially in the same
condition as existed on the date hereof.

PART 10

TERMINATION OF OPTION

10.1 If the Option is terminated otherwise than upon the
exercise thereof pursuant to Part 4, the Optionee will

(a) leave in good standing for a period
of at least one year from the termination of the Option Period those mineral
claims comprised in the Leases that are in good standing on the date hereof and
any other mineral claims comprised in the Leases that the Optionee acquires
after the date hereof, and

(b) deliver at no cost to the Optionor
within 90 days of such termination copies of all reports, maps, assay results
and other relevant technical data compiled by or in the possession of the
Optionee with respect to the Leases and not theretofore furnished to the
Optionor.

10.2 Notwithstanding termination of the Option, the Optionee
will have the right, within a period of 90 days following the end of the Option
Period, to remove from mineral claims under the Leases all buildings, plant,
equipment, machinery, tools, appliances and supplies which have been brought
upon the Leases by or on behalf of the Optionee, and any such property not removed within such 90-day period will thereafter,
only if the Optionor elects in writing, become the property of the Optionor.

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PART 11

TRANSFERS

11.1 The Optionee may at any time (and from time to time)
either during the Option Period or thereafter, sell, transfer or otherwise
dispose of all or any portion of its interest in and to the Leases and this
Agreement provided that any purchaser, grantee or transferee of any such
interest will have first delivered to the Optionor its agreement related to this
Agreement and to the Leases, containing

(a) a covenant by such transferee to
perform all the obligations of the Optionee to be performed under this Agreement
in respect of the interest to be acquired by it from the Optionee to the same
extent as if this Agreement had been originally executed by the Optionee and
such transferee as joint and several obligors making joint and several
covenants, and

(b) a provision subjecting any further
sale, transfer or other disposition of such interest in the Leases and this
Agreement or any portion thereof to the restrictions contained in this
§11.1.

11.2 No assignment by the Optionee of any interest less than
its entire interest in this Agreement and in the Leases will, as between the
Optionee and the Optionor, discharge it from any of its obligations hereunder,
but upon the transfer by the Optionee of the entire interest at the time held by
it in this Agreement (whether to one or more transferees and whether in one or
in a number of successive transfers), the Optionee will be deemed to be
discharged from all obligations hereunder save and except for the fulfilment of
contractual commitments accrued due before the date on which the Optionee will
have no further interest in this Agreement.

PART 12

SURRENDER AND ACQUISITION OF LEASE INTERESTS BEFORE
TERMINATION OF AGREEMENT

12.1 The Optionee may during the Option Period, elect to
abandon any one or more of the mineral claims comprised in the Leases by giving
notice to the Optionor of such intention.

12.2 For a period of 30 days after the date of delivery of such
notice the Optionor may elect to have any or all of the mineral claims in
respect of which such notice has been given transferred to it by delivery of a
request therefor to the Optionee, whereupon the Optionee will deliver to the
Optionor a quit claim or Bill of Sale or other appropriate Deed or assurance in
registrable form transferring such mineral claims to the Optionor if the
Optionor is not then already the registered owner of such mineral claims.

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12.3 Any claims so transferred, if in good standing at the date
hereof or if the Optionee causes the same to be placed in good standing after
the date hereof, will be in good standing for at least six months from the date
of transfer. If the Optionor fails to make request for the transfer of any
mineral claims as aforesaid within such 30-day period, the Optionee may then
abandon such mineral claim without further notice to the Optionor. Upon any such
transfer or abandonment the mineral claims so transferred or abandoned will for
all purposes of this Agreement cease to form part of the Leases.

PART 13

FORCE MAJEURE

13.1 If the Optionee is at any time either during the Option
Period prevented or delayed in complying with the work requirement provisions of
this Agreement in Part 4 by reason of strikes, walk-outs, labour shortages,
power shortages, fuel shortages, fires, wars, acts of God, governmental
regulations restricting normal operations, shipping delays or any other reason
or reasons beyond the control of the Optionee (and for greater certainty
excluding factors related to a lack of funding), the time limited for the
performance by the Optionee of its obligations hereunder will be extended by a
period of time equal in length to the period of each such prevention or delay,
provided however that nothing herein will discharge the Optionee from its
obligation to timely pay the cash and share consideration under §4.1.

13.2 The Optionee will within seven days give notice to the
Optionor of each event of force majeure under §13.1 and upon cessation of such
event will furnish the Optionor with notice to that effect together with
particulars of the number of days by which the obligations of the Optionee
hereunder have been extended by virtue of such event of force majeure and all
preceding events of force majeure.

PART 14

CONFIDENTIAL INFORMATION

14.1 No information furnished by the Optionee to the Optionor
hereunder in respect of the activities carried out on the Leases by the
Optionee, will be published by the Optionor without the written consent of the
Optionee, but such consent in respect of the reporting of factual data will not
be unreasonably withheld, and will not be withheld in respect of information
required to be publicly disclosed pursuant to applicable securities or
corporation laws.

PART 15

DEFAULT AND TERMINATION

15.1 If at any time during the Option Period the Optionee fails
to perform any obligation hereunder or any representation or warranty given by
it proves to be untrue, then the Optionor may terminate this Agreement
providing

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(a) it first gives to the Optionee a
notice of default containing particulars of the obligation which the Optionee
has not performed, or the warranty breached, and

(b) if it is reasonably possible to
cure the default, the Optionee does not, within 30 days after delivery of such
notice of default, cure such default by appropriate payment or performance if
such default reasonably requires more than 30 days.

15.2 If the Optionee fails to comply with the provisions of
§15.1 or §4.6 the Optionor may thereafter terminate this Agreement, and the
provisions of Part 10 will then be applicable.

15.3 The Optionee may at any time terminate this Option by
giving notice of termination to the Optionor and shall thereupon be relieved of
any further obligations in connection herewith but shall remain liable for
obligations which have accrued to the date of notice.

PART 16

NOTICES

16.1 Each notice, demand or other communication required or
permitted to be given under this Agreement will be in writing and will be sent
by personal delivery, fax or prepaid registered mail to the addresses of the
parties written on page 1.

16.2 The date of receipt of such notice, demand or other
communication will be the date of delivery or fax thereof if delivered or faxed
during business hours, or, if given by registered mail as aforesaid, will be
deemed conclusively to be the third day after the same will have been so mailed
except in the case of interruption of postal services for any reason whatever,
in which case the date of receipt will be the date on which the notice, demand
or other communication is actually received by the addressee.

16.3 Either party may at any time and from time to time notify
the other party in writing of a change of address and the new address to which
notice will be given to it thereafter until further change.

PART 17

GENERAL

17.1 This Agreement will supersede and replace any other
agreement or arrangement, whether oral or written, heretofore existing between
the parties in respect of the subject matter of this Agreement.

17.2 No consent or waiver expressed or implied by either party
in respect of any breach or default by the other in the performance of such
other of its obligations hereunder will be deemed or construed to be a consent
to or a waiver of any other breach or default.

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17.3 The parties will promptly execute or cause to be executed
all documents, deeds, conveyances and other instruments of further assurance
which may be reasonably necessary or advisable to carry out fully the intent of
this Agreement or to record wherever appropriate the respective interests from
time to time of the parties in the Leases.

17.4 This Agreement will enure to the benefit of and be binding
upon the parties and their respective successors and permitted assigns.

17.5 This Agreement will be construed in accordance with the
laws of the Province of British Columbia and the laws of Canada applicable
therein. This agreement is to be construed as an option only and nothing herein
shall obligate the Optionee to do anything or pay any amount except where
expressly herein provided.

17.6 All sums of money referred to herein are expressed in U.S.
currency.

17.7 The headings appearing in this Agreement are for general
information and reference only and this Agreement will not be construed by
reference to such headings.

17.8 In interpreting this Agreement and the schedule hereto
attached, where the context so requires, the singular will include the plural,
and the masculine will include the feminine, the neuter, and vice versa.

17.9 Nothing herein will constitute or be taken to constitute
the Parties as partners or create any fiduciary relationship between them
provided, however, that this qualification will not limit the express duty of
each Party to act toward the other Party at all times in good faith with respect
to all their obligations under this Agreement.

17.10 No modification, alteration or waiver of the terms herein
contained will be binding unless the same is in writing, dated subsequently
hereto, and fully executed by the Parties.

END OF PAGE

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17.11 This Agreement may be executed in counterpart and by
facsimile.

17.12 Time is of the essence hereof.

IN WITNESS WHEREOF this Option Agreement has been
executed on behalf of the Optionor and the Optionee by their duly authorized
officers on the ____ day of August, 2010.

The Optionee

PASSPORT POTASH INC.

	Per: 	 /s/ Stephen B. Butrenchuk 	 
	 	 Authorized
      Signatory 	 
	  	  	 
	Per: 	 /s/ L. Shaffer 	 
	 	Authorized
      Signatory  	 

The Optionor

MESA URANIUM CORP.

	Per: 	 /s/ Foster Wilson 	 
	  	Authorized Signatory 	 

SCHEDULE A

Arizona State Land Department Exploration Leases held by Mesa
Uranium Corp.

	 	1. 	
      16.0-N-24.0-E-20, lease #08-113273, 640.000
  Acres;

	 	 	 
	 	2. 	
      16.0-N-24.0-E-30, lease #08-113270, 671.780
  Acres;

	 	 	 
	 	3. 	
      16.0-N-24.0-E-32, lease #08-113274, 640.000
  Acres;Passport Potash Inc.: Exhibit 10.7 - Filed by newsfilecorp.com

OPTION OF ARIZONA EXPLORATION LEASES

THIS AGREEMENT made as of the 12th day of November,
2010.

BETWEEN:

AMERICAN POTASH LLC, a company
duly incorporated and pursuant 
to the laws of the State of Nevada and having
its business office situated at 
290 Gentry Way, Suite 7, Reno, Nevada 89502,

(herein “American Potash”) 
Of The
First Part

AND:

PASSPORT POTASH INC., a company
duly incorporated pursuant 
to the laws of the Province of Quebec and having
its business office situated 
at 608 — 1199 West Pender Street, Vancouver, BC
V6E 2R1

(herein “Passport”) 
Of The Second
Part, 

AND:

SWEETWATER RIVER RESOURCES LLC,
a corporation duly 
organized under the laws of Wyoming, of 220 Highway 10,
Jelm, 
Wyoming 82063

(herein the “Sweetwater” or the
“Optionor”) 
Of the Third Part, 

WHEREAS:

	A. 	
      American Potash previously entered into an option
      agreement with Sweetwater, as agent for John Glasscock and Kent Ausburn,
      to acquire exploration permits together with all permits and other rights
      issued pursuant to the applications to allow for the exploration of potash
      prospects in Arizona and Utah (the “Sweetwater Option
  Agreement”).

	 	 
	B. 	
      Pursuant to the Sweetwater Option Agreement, American
      Potash and the Optionor have both incurred expenses pertaining to
      properties located in Arizona (the “Arizona Expenses”).

	 	 
	C. 	
      Five permits have been approved in Arizona (the “Arizona
      Permits” or “Arizona Properties”) which are more particularly described in
      Schedule “A” attached hereto and forming part of this
  Agreement.

1

	D. 	
      American Potash and the Optionor have mutually agreed to
      amend the Sweetwater Option Agreement to remove the Arizona Permits and
      Arizona Properties.

	 	 
	D. 	
      The Optionor has agreed to grant an option to Passport to
      acquire 100% of its right, title and interest in the Arizona Permits in
      consideration of the terms and conditions hereinafter agreed
  to.

NOW THEREFORE THIS AGREEMENT WITNESSES that in
consideration of the sum of $1.00 now paid by Passport to each of American
Potash and Sweetwater (the receipt and sufficiency of which is hereby
acknowledged), the parties agree as follows: 

1.0 DEFINITIONS

“Acceptance Date” means the date of receipt of
the Exchange acceptance of this Option Agreement.

“Environmental Law’ means all requirements of the
common law or of environmental, health or safety statutes, regulations, rules,
ordinances, policies, orders, approvals, notices, licenses, permits or
directives of any federal, territorial, provincial or local judicial, regulatory
or administrative agency, board or governmental authority including, but not
limited to those relating to:

	 	(i) 	
      noise;

	 	 	 
	 	(ii) 	
      pollution or protection of the air, surface water, ground
      water or land;

	 	 	 
	 	(iii) 	
      solid, gaseous or liquid waste generation, handling,
      treatment, storage, disposal or transportation;

	 	 	 
	 	(iv) 	
      exposure to hazardous or toxic substances; or

	 	 	 
	 	(v) 	
      the closure, decommissioning, dismantling or abandonment
      of any facilities, mines or workings and the reclamation or restoration of
      any lands.

“Option Consideration” means 500,000 shares of
Passport and $90,000. 

“Exchange” means the TSX Venture Exchange.

“Execution Date” means the date this Agreement is
signed by all parties hereto. 

“Optionor” means Sweetwater.

“Properties” means the Arizona Permits and
Arizona Properties and all successor or replacement titles and all other
instruments or rights or tenure related thereto and shall include any potash
mineral interests acquired within the Area of Common Interest.

2

Royalty” means a 2% royalty retained by
Sweetwater as more particularly defined in Schedule “B” attached to and forming
part of this Option Agreement.

“Sweetwater” means Sweetwater River Resources
LLC.

2.0 RECITALS

2. The above recitals are true and correct and form part of
this Agreement.

3.0 OPTION, CONSIDERATION AND ROYALTY

3.1 The Optionor hereby grants an option to Passport to acquire
100% of the Optionor’s right, title and interest in the Properties, subject to
the Royalty, in consideration of payment of the Option Consideration to both the
Optionor and American Potash as follows:

	 	(a) 	
      500,000 shares of Passport (the “Passport Shares”) on the
      earlier of December 15, 2010 or within five business days of the
      Acceptance Date. The Passport Shares shall bear the Exchange legend
      restricting transfer for a period of four months and one day.

	 	 	 
	 	(b) 	
      Three cash payments of $30,000.00 each within 12, 18 and
      24 months of the Acceptance Date.

3.2 Passport has the right, but not the obligation, to make the
cash payments and issue the Passport Shares pursuant to this Option
Agreement.

3.3 The allocation of the Option Consideration and the Royalty
disclosed in 4.1 to the Optionor and American Potash will be according to each
of their respective percentage of the total expenses incurred by both of them on
the Arizona Permits as follows.

	American Potash % 	= 	expenses incurred by American Potash on the
      Arizona Permits 
	 	 	 
			
      divided by the aggregate expenses incurred by both
      American Potash and the Optionor on the Arizona Permits 

	 	 	 
	Optionor % 	= 	expenses incurred by Optionor on the Arizona
      Permits 
	 	 	 
			
      divided by the aggregate expenses incurred by both
      American Potash and the Optionor on the Arizona Permits

3.4 Within ten business days of the Execution Date, American
Potash and the Optionor will send to Passport a joint notice of allocation of
the Option Consideration to each of American Potash and the Optionor.

3

4.0 ROYALTY

4.1 If at any time Passport shall acquire mining permits in
respect of and commence production on the Arizona Permits or any property
acquired within the Area of Common Interest as hereinafter defined, Sweetwater
and American Potash shall be entitled to a 2% Royalty in respect of any potash
produced on the Arizona Permits and Area of Common Interest.

4.2 The Royalty shall run with and form part of the Arizona
Permits and Area of Common Interest and shall not be merely contractual in
nature and Passport shall have the right to record or register (if such right
exists) the Royalty against Passport’s interest in the Arizona Permits and Area
of Common Interest.

4.3 Passport shall have the right at any time to buy one-half
of the Royalty for $150,000 USD and shall have the right to purchase the
remaining one-half of the Royalty for $150,000 USD.

5.0 EXERCISE OF OPTION

5.1 Passport may in its sole discretion at any time accelerate
the payment of the cash and shares required by Section 3 herein to exercise the
Option and thereby earlier acquire its interest in the Arizona Permits.

5.2 In the event the Option granted herein has been exercised
by the payment of the Option Consideration pursuant to Section 3 herein, and
this Agreement fully complied with, a 100% right, title and interest in and to
the Arizona Permits will vest in Passport free and clear of all charges,
encumbrances and claims, save and except the Royalty, and without any further
act by Passport. The Optionor will take all steps necessary to transfer the
registered ownership of the Permits to Passport along with such other documents
as counsel for Passport may reasonably require to effect such transfer.

6.0 CONDITIONS PRECEDENT TO CLOSING

6.1 This Option Agreement must be filed with the Exchange to
obtain Exchange acceptance within five business days of the Execution Date.

6.2 If Exchange Acceptance has not been obtained by December
15, 2010 this Agreement shall terminate without further notice unless extended
by mutual agreement of the parties herein.

7.0 RECORD OF SWEETWATER OPTION AGREEMENT

7.1 Passport will be entitled (if possible) to record a notice
of the existence of this Option Agreement in the applicable Arizona recorder’s
office.

4

OPERATIONS DURING THE OPTION 

8.1 Passport’s Rights

     Subject to the other terms of
this Agreement, during the Option Period, Passport and its employees, agents,
directors, officers and independent contractors shall have the following
rights:

	 	(a) 	
      the sole and exclusive right to enter upon the Properties
      to carry on exploration and related operations thereon;

	 	 	 
	 	(b) 	
      the right to remove from the Properties such reasonable
      amounts of ore and minerals as Passport may deem necessary for the
      purposes of making assays and tests;

	 	 	 
	 	(c) 	
      the right to erect buildings and other improvements and
      install such machinery and equipment on the Properties as Passport deems
      advisable or necessary in connection with the activities contemplated by
      this Section 8.1;

	 	 	 
	 	(d) 	
      the right of access to all of Sweetwater’s data and
      information concerning the Properties including mining records and drill
      cores; and

	 	 	 
	 	(e) 	
      the right to review and copy data relevant to the
      Properties in Sweetwater’s possession; provided that the confidentiality
      provisions of Section 13 shall apply with respect to such
  data.

8.2 Passport’s Duties

     Subject to the other terms of
this Agreement, during the Option Period, Passport shall be responsible for the
following duties and shall:

	 	(a) 	
      cause to be done all things that may be required to keep
      the Properties in good standing under all the applicable laws;

	 	 	 
	 	(b) 	
      conduct all exploration and other operations in, on and
      under the Properties in a good and workmanlike manner in accordance with
      good mining and engineering practices and in compliance with all
      applicable laws, regulations and orders;

	 	 	 
	 	(c) 	
      in the event that the Option is not exercised, leave the
      Properties in a safe condition with all openings safeguarded in accordance
      with the applicable mining laws and regulations and Environmental Laws;
      and

	 	 	 
	 	(d) 	
      pay all taxes of any kind or character assessed against
      the Properties.

5

8.3 Relinquishment of Properties

At any time during the Option Period, Passport may relinquish
to the Optionor all or any portion of the Properties, by giving Sweetwater 30
days written notice of its intention to do so specifying in such notice the part
of the Properties intended to be so relinquished. In the event that any portion
of the Properties are relinquished by Passport, Passport will release and convey
to Sweetwater all of Passport’s interest in such portion.

8.4 Assessment Work

Passport shall file, where necessary, in whole or in part,
evidence of assessment work as the same may become available from exploration
and other operations conducted on the Properties (as reduced or increased
pursuant to this Agreement) during the Option Period.

REPRESENTATIONS AND WARRANTIES

9.1 Sweetwater jointly and severally represents and warrants to
Passport that:

	 	(a) 	
      it has been duly incorporated and validly exists as a
      corporation in good standing under the laws of the State of Wyoming and is
      authorized to hold mineral claims in the State of Arizona;

	 	 	 
	 	(b) 	
      Sweetwater is the sole recorded owner of a 100% undivided
      interest in the the Arizona Permits which are accurately described in
      Schedule “A”.

	 	 	 
	 	(c) 	
      all requisite corporate acts and proceedings as may be
      applicable have been done and taken by it with respect to entering into
      this Agreement and it has the right to enter into this Option Agreement
      and to perform the obligation hereunder;

	 	 	 
	 	(d) 	
      the execution and delivery of this Option Agreement and
      the agreements contemplated hereby by Sweetwater will not violate or
      result in the breach of the laws of any jurisdiction applicable or
      pertaining thereto or of its constating documents, and

	 	 	 
	 	(e) 	
      this Option Agreement constitutes a legal, valid and
      binding obligation of Sweetwater.

	 	 	 
	 	(f) 	
      the Properties (including all ores, concentrates,
      minerals, metals or products in, on or under the Properties or which may
      be removed or extricated therefrom) are free and clear of any and all
      Encumbrances, agreements, obligations, adverse claims (including, without
      limitation, any order or judgment relating to such claim or any legal
      proceedings in process, pending or threatened which might result in any
      such order or judgment), royalties, profit interests or other payments in
      the nature of a rent or royalty, or other interests of whatsoever nature
      or kind, recorded or unrecorded, excepting those imposed by the applicable
      state or federal laws;

6

	 	(g) 	
      Sweetwater has not received from any governmental
      instrumentality any notice of, or communication relating to, any actual or
      alleged Environmental Claims, and to its Knowledge there are no
      outstanding work orders or actions required to be taken relating to
      environmental matters respecting the Properties or any operations carried
      out thereon;

	 	 	 
	 	(h) 	
      there are no claims, actions, suits or proceedings
      (whether or not purportedly on behalf of Sweetwater) (including
      Environmental Claims) pending, or to its Knowledge threatened, against or
      adversely affecting, or which could adversely affect, the Properties or
      before or by any federal, state, municipal or other governmental
      authority, department, court, commission, board, bureau, agency or
      instrumentality, domestic or foreign, whether or not insured, and which
      might involve the possibility of any Encumbrance or any other right of any
      other Person against the Properties;

	 	 	 
	 	(i) 	
      to its Knowledge, conditions on and relating to the
      Properties respecting all past and current operations thereon are in
      compliance with all applicable federal, state and municipal laws including
      all Environmental Laws;

	 	 	 
	 	(j) 	
      to its Knowledge, there have been no material spills,
      discharges, leaks, emissions, ejections, escapes, dumpings or other
      releases of any kind of any toxic or hazardous substances in, on or under
      the Properties or the environment surrounding it and there is no presence
      of polychlorinated biphenyl in, on or under the Properties;

	 	 	 
	 	(k) 	
      to its Knowledge, the Properties are free and clear of
      all unprotected open mine shafts, mine openings or workings, open pits,
      rock stockpiles, mine tailings, or waste materials;

	 	 	 
	 	(l) 	
      Sweetwater has not granted to any Person other than
      Passport access to or the right to enter upon and explore or investigate
      the mineral potential of the Properties;

	 	 	 
	 	(m) 	
      Sweetwater has and will continue to make available to
      Passport all material information in its possession or control relating to
      work done on or with respect to the Properties;

	 	 	 
	 	(n) 	
      there are no consents of any third parties required to be
      obtained by Sweetwater respecting the transactions contemplated by this
      Agreement;

	 	 	 
	 	(o) 	
      the operation of the Properties are not subject to any
      written or verbal operating, management, maintenance or other agreements,
      and Passport shall not be bound to assume any such contract;

	 	 	 
	 	(p) 	
      Sweetwater has not, and no Person on behalf of Sweetwater
      has, carried out any work or other activities in, on or under the
      Properties;

7

	 	(q) 	
      Sweetwater is acquiring the securities referred to in
      Section 3 solely for its own account for the purposes of investment and
      not with a view to or for sale in connection with a “distribution” (as
      such term is defined in applicable securities laws); Sweetwater does not
      have a present intention to sell any of such securities, nor a present
      arrangement (whether or not legally binding) or intention to effect any
      distribution of any of such securities to or through any Person or entity;
      provided, however, that by making the representations herein, Sweetwater
      does not agree to hold such securities for any minimum or other specific
      term and reserves the right to dispose of such securities at any time in
      accordance with applicable securities laws applicable to such disposition;
      Sweetwater acknowledges that it (i) has such knowledge and experience in
      financial and business matters such that it is capable of evaluating the
      merits and risks of its investment in Passport; and (ii) is able to bear
      the financial risks associated with an investment in the securities,
      including a total loss of such investment; and

	 	 	 
	 	(r) 	
      Sweetwater understands that (i) the securities referred
      to in Section 3 are being offered and acquired in reliance upon an
      exemption from prospectus and registration requirements; and (ii) such
      securities are and will be subject to a “restricted period” pursuant to
      Section 2.5(2)3(a) of Canadian Securities Administrators National
      Instrument 45-102 Resale of Securities.

9.2 Passport represents and warrants to the Optionor that

	 	(a) 	
      it has been duly incorporated and validly exists as a
      corporation in good standing under the laws of Quebec and will, through a
      subsidiary corporation, be authorized to hold mineral leases in the States
      of Arizona;

	 	 	 
	 	(b) 	
      all requisite corporate acts and proceedings as may be
      applicable have been done and taken by it with respect to entering into
      this Agreement and it has the right to enter into this Assignment
      Agreement and to perform the obligation hereunder;

	 	 	 
	 	(c) 	
      neither the execution and delivery of this Agreement by
      Passport nor the performance by Passport of its obligations hereunder
      conflicts with Passport’s constating documents or any agreement to which
      it is bound; and

	 	 	 
	 	(d) 	
      this Option Agreement constitutes a legal, valid and
      binding obligation of Passport;

	 	 	 
	 	(e) 	
      it will observe, perform and fulfill all Environmental
      and other laws applicable to the activities of Passport contemplated by
      this Agreement;

	 	 	 
	 	(f) 	
      it will make available to Sweetwater all material
      information in its possession or control relating to work done or with
      respect to the Properties;

	 	 	 
	 	(g) 	
      the securities to be issued by Passport hereunder will be
      duly authorized by all necessary corporate action and, when issued in
      accordance with the terms hereof, will be validly issued, fully paid and
      non-assessable and free and clear of all liens, Encumbrances and rights of refusal of any kind and in
      respect of the common shares, Sweetwater shall be entitled to all rights
      accorded to a holder of common shares in the capital of
Passport;

8

	 	(h) 	
      Passport will comply with all applicable securities laws
      in British Columbia in connection with the issuance and sale of its
      securities hereunder; and

	 	 	 
	 	(i) 	
      all statutory requirements for the valid consummation by
      Passport of the transactions contemplated by this Agreement, including,
      without limitation, the issuance of the securities to be issued to
      Sweetwater hereunder, will be fulfilled; and all authorizations, consents
      and approvals of all governmental entities and other persons, including
      all Regulatory Approvals, required to be obtained in order to permit
      consummation of the transactions contemplated by this Agreement,
      including, without limitation, the issuance of such securities, will be
      obtained prior to the issuance of the securities.

9.3 The representations and warranties hereinbefore set out are
conditions on which the Parties have relied in entering into this Agreement and
shall survive the acquisition of any interest in the Properties by Passport and
the termination of this Agreement. Sweetwater will indemnify and save Passport
harmless, and Passport shall indemnify and save Sweetwater harmless, from all
loss, damage, costs, actions and suits arising out of or in connection with any
breach of any representation, warranty, covenant, agreement or condition made by
it and contained in this Agreement. It is acknowledged and agreed that no Party
shall be liable for special, consequential or punitive damages or lost profits
under this Section 9. For greater certainty, the Parties confirm that nothing in
this Subsection derogates from or limits in any way the indemnity provisions
contained in other Sections of this Agreement, including without limitation
Section 3.

NON-EXERCISE OR DEFAULT

10.1 If at any time during the Option period Passport fails to
perform any obligation hereunder or any representation or warranty given by it
proves to be untrue, then the Optionor may terminate this Option Agreement,
providing it first gives to Passport a notice of default containing particulars
of the obligation which Passport has not performed, or the warranty breached,
and if it is reasonably possible to cure the default, Passport does not, within
30 days after delivery of such notice of default, cure such default by
appropriate payment or performance if such default reasonably requires more than
30 days.

10.2 If Passport fails to comply with the provisions of section
10.1 the Optionor may thereafter terminate this Agreement, and the provisions of
part 13 will then be applicable.

10.3 Passport may at any time terminate this Option Agreement
by giving notice of termination to the Optionor and shall thereupon be relieved
of any further obligations in connection herewith but shall remain liable for
obligations which have accrued to the date of notice.

9

TERMINATION

11.1 On the termination of this Agreement:

	 	(a) 	
      the Properties shall be free of all Encumbrances created
      by or through Passport;

	 	 	 
	 	(b) 	
      all plant, machinery, equipment and supplies owned by
      Passport and brought and placed upon the Properties shall remain
      Passport’s exclusive property and, if this Agreement terminates without
      Passport exercising any part of the Option, shall be removed by at a
      Passport any time or times within six months following the termination of
      this Agreement; provided that if Passport has not removed all such plant,
      machinery, equipment or supplies within the six-month period, then such
      plant, machinery, equipment and supplies not so removed shall thereafter,
      at the option of Sweetwater, (i) become the property of Sweetwater; or
      (ii) within a further six months be removed by Sweetwater at Passport ‘s
      expense. All plant, machinery, equipment and supplies, until it becomes
      Sweetwater’s property or is removed from the Properties, shall be the sole
      responsibility of Passport and Sweetwater shall have no liability with
      regard thereto;

	 	 	 
	 	(c) 	
      Passport shall forthwith deliver to Sweetwater all data
      and factual and interpretative information generated by Passport through
      its exploration activities on or with respect to the Properties;

	 	 	 
	 	(d) 	
      Passport shall forthwith assign to Sweetwater its
      interest in any mineral dispositions, mining leases and other mineral
      interests comprising the Properties, at no cost to Sweetwater, subject to
      all Encumbrances, agreements, obligations, royalties, profit interests or
      other payments in the nature of a rent or royalty, and other interests of
      whatsoever nature or kind payable pursuant to statutory obligation and/or
      pursuant to the title instruments for the Properties, or which Sweetwater
      has approved;

	 	 	 
	 	(e) 	
      Passport shall be solely liable for all costs and
      expenses incurred by Passport as a result of its activities on the
      Properties during the Option Period up to the date of termination of this
      Agreement; and

	 	 	 
	 	(f) 	
      Passport shall as promptly as reasonably possible perform
      all remaining reclamation, rehabilitation and remediation work required by
      law, including Environmental Law.

The provisions of this section and Article 13 shall survive the
termination of this Agreement.

10

INDEMNITIES

12.1 Passport’s Indemnities

12.1.1 Passport shall indemnify Sweetwater’s officers and
directors from all liability, however arising, in respect of all debts, claims,
liabilities, costs and obligations of every kind and nature, including damage to
the Properties and personal injury, arising out of activities by or on behalf of
Passport on or with respect to the Properties during the Option Period,
including without limitation:

	 	(a) 	
      the conduct by or on behalf of Passport of activities in,
      on, under or with respect to the Properties;

	 	 	 	 
	 	(b) 	
      the environmental protection, clean-up, remediation, and
      reclamation of the Properties with respect to activities conducted by or
      on behalf of Passport including, but not limited to, the obligations and
      liabilities arising out of or related to:

	 	 	 	 
	 		(i) 	
      the disturbance or contamination of land, water (above or
      below surface) or the environment by exploration, mining, processing or
      waste disposal activities;

	 	 	 	 
	 		(ii) 	
      any failure to comply with all past, current or future
      governmental or regulatory authorizations, licenses, permits, and orders
      and all non-governmental prohibitions, covenants, contracts and
      indemnities; and

	 	 	 	 
	 		(iii) 	
      any act or omission causing or resulting in the spill,
      discharge, leak, emission, ejection, escape, dumping or release of
      hazardous or toxic substances, materials, or wastes as defined in any
      federal, state, or local law or regulation in connection with or emanating
      from the Properties; and

	 	 	 	 
	 	(c) 	
      any other actions or failure to act by or on behalf of
      Passport with respect to the Properties.

12.2 Notwithstanding Section 12.1, this indemnity shall not
apply to any activities carried out on the Properties by Sweetwater should
Sweetwater conduct such activities on behalf of Passport while acting as a
contractor for any work to be carried out on the Properties or otherwise.

12.3 Sweetwater’s Indemnities

     Sweetwater shall indemnify
Passport and its officers, employees, directors and shareholders from all
liability, however arising, in respect of all debts, claims, liabilities, costs
and obligations of every kind and nature, including damage to the Properties and
personal injury, arising out of activities by or on behalf of Sweetwater (but
not by or on behalf of third parties) on or with respect to the Properties,
arising before the Effective Date, including without limitation:

11

	 	(a) 	
      the conduct of activities by or on behalf of Sweetwater
      in, on, under or with respect to the Properties; and

	 	 	 	 
	 	(b) 	
      the environmental protection, clean-up, remediation, and
      reclamation of the Properties with respect to activities conducted by or
      on behalf of Sweetwater including, but not limited to, the obligations and
      liabilities arising out of or related to:

	 	 	 	 
	 		(i) 	
      the disturbance or contamination of land, water (above or
      below surface) or the environment by exploration, mining, processing or
      waste disposal activities;

	 	 	 	 
	 		(ii) 	
      any failure to comply with all past, current or future
      governmental or regulatory authorizations, licenses, permits, and orders
      and all non-governmental prohibitions, covenants, contracts and
      indemnities; and

	 	 	 	 
	 		(iii) 	
      any act or omission causing or resulting in the spill,
      discharge, leak, emission, ejection, escape, dumping or release of
      hazardous or toxic substances, materials, or wastes as defined in any
      federal, provincial, or local law or regulation in connection with or
      emanating from the Properties.

CONFIDENTIAL INFORMATION

13.1 Covenant

     All matters concerning the
execution, contents and performance of the Agreement and the Properties,
including all information obtained in connection with the performance of this
Agreement, will be the exclusive property of the Parties hereto and shall be
treated as and kept confidential by the Parties and except as otherwise provided
in this Section 13, will not be disclosed to any third party or the public
without the prior written consent of the other Parties, such consent not to be
unreasonably withheld.

13.2 Disclosure to Satisfy Regulatory Requirements

     If any Party or an Affiliate, by
reason of any legal requirement or requirement of any regulatory body having
jurisdiction over a Party, must disclose any matter concerning the execution or
content of this Agreement or the Properties, then the affected Party shall,
prior to making any disclosure, forward the text of the disclosure to each other
Party. Each other Party shall be given a reasonable opportunity to make
reasonable suggestions for changes therein. The disclosing Party shall consider
said suggestions and, to the extent practicable, advise each other Party prior
to the disclosure if said suggestions are not to be the incorporated into the
disclosure.

12

13.3 Disclosure of Exploration Results, Etc.

Sweetwater and Passport may disclose exploration results,
program decisions, license and permit grants, technical reports, scoping,
pre-feasibility and feasibility studies and other such information derived from
Passport’s work on the Properties.

13.4 Disclosure to other Parties

        Any Party or an Affiliate may disclose confidential information
to:

	 	(a) 	
      public or private financing agencies or
    institutions;

	 	 	 
	 	(b) 	
      consultants, contractors or subcontractors which the
      Parties may engage; or

	 	 	 
	 	(c) 	
      third parties to which a Party contemplates the permitted
      transfer, assignment, sale, Encumbrance or other disposition of all or
      part of its interest herein and in the Properties;

provided that in any such case only such confidential
information as such recipient shall have a legitimate business need to know
shall be disclosed and further provided that the recipient shall first enter
into a written agreement with the Party disclosing the information to protect
the confidentiality of such information, such written agreement to be in form
and substance satisfactory to each other Party.

13.5 Free Utilization

     Notwithstanding the generality of
the foregoing, each Party shall be free except within the Area of Common
Interest to utilize information or knowledge obtained pursuant to the Agreement
in connection with the conduct by such Party for exploration or mining
operations for its own benefit and account or for the benefit and account of any
partnership, joint venture or corporation of which it is a partner or
member.

AREA OF COMMON INTEREST

14.1 The area of common interest shall be deemed to comprise
that area which is included within 50 miles of the outermost boundary of each of
the Arizona permits as at the date of execution of this Option Agreement.

14.2 If at any time during the subsistence of this Agreement,
Sweetwater, Kent Ausburn or John Glasscock stakes, applies for or otherwise
acquires, directly or indirectly, any right to or interest in any application,
mining claim, licence, lease, grant, concession, permit, patent, state leases
and known potash licence areas or other mineral property located wholly or
partly within the Area of Common Interest referred to in Section 14.1 (a “New
Interest”), Sweetwater, Kent Ausburn or John Glasscock, as applicable, shall
forthwith give written notice to Passport of the New Interest, the total direct
cost thereof and all details in the possession of that Party with respect to the
details of the acquisition, the nature of the property and the known
mineralization.

13

14.3 Passport may, within 30 days of receipt of any notice
delivered pursuant to Section 14.2, elect, by notice to Sweetwater, to require
that the New Interest be included in and thereafter form part of the Properties
for all purposes of this Agreement.

14.4 If Passport elects to include the New Interest in the
Properties pursuant to Section 14.3, Passport shall reimburse Sweetwater, Kent
Ausburn or John Glasscock, as applicable, for the direct cost of acquisition of
the New Interest.

14.5 If Passport does not elect to include the New Interest in
the Properties within that period of 30 days, the New Interest shall not form
part of the Properties and Sweetwater, Kent Ausburn or John Glasscock as the
case may be shall be solely entitled thereto.

14.6 Nothing in this Article shall preclude Passport from
acquiring any interests of any nature within the Area of Common Interest on its
own behalf.

TRANSFERS

15.1 Passport may at any time (and from time to time) during
the period of this Option Agreement, assign, sell, transfer or otherwise dispose
of all or any portion of its interest in and to the Arizona Permits and this
Option Agreement provided that any purchaser, grantee or transferee of any such
interest (‘third party”) will have first delivered to American Potash and the
Optionor, its agreement related to this Option Agreement containing a covenant
by such third party to perform all the obligations of Passport to be performed
under this Agreement in respect of the interest to be acquired by it from
Passport to the same extent as if this Agreement had been originally executed by
the third party as joint and several obligors making joint and several
covenants. Any such sale, twister or disposition shall require the consent of
American Potash and Sweetwater which will not be unreasonably withheld.

15.2 No assignment by Passport of any interest less than its
entire interest in this Agreement will, as between Sweetwater and Passport,
discharge Passport from any of its obligations hereunder, but upon the transfer
by Passport of the entire interest at the time held by it in this Agreement
(whether to one or more transferees and whether in one or in a number of
successive transfers), Passport will be deemed to be discharged from all
obligations hereunder save and except for the fulfillment of contractual
commitments accrued due before the date on which Passport will have no further
interest in this Agreement.

14

RULE AGAINST PERPETUITIES

16.1 If any right, power or interest held by or to be acquired
by any party in the Properties under this Agreement would violate the rule
against perpetuities, then such right, power or interest shall terminate at the
expiration of 50 years after the date of this Agreement.

NOTICE

17.1 Each notice, demand or other communication required or
permitted to be given under this Agreement shall be in writing and shall be
delivered or faxed to such party at the address for such party specified above.
The date of receipt of such notice, demand or other communication shall be the
date of delivery thereof if delivered or, if given by facsimile shall be deemed
conclusively to be the next business day. Either party may at any time or from
time to time notify the other in writing of a change of address and the new
address to which notice shall be given to it thereafter until further
change.

	If to Sweetwater and Kent Ausburn. 
	220 Highway 10, Jelm, Wyoming 82063 
	Attention: Kent Ausburn 
	Tel: (360) 393-4190 
	Fax: (360_ 393-4190 
	  
	With a copy to John Glasscock 
	Tel: (307) 745-0564 
	Fax: (307) 
	  
	If to American Potash LLC. 
	Attention: Rudy de Jonge 
	Tel: (604) 685-6375 
	Fax: (604) 535-8692 
	  
	If to Passport Potash Inc. 
	Attention: Steve Butrenchuk 
	Tel: (604) 687-0300 
	Fax: 

15

FORCE MAJEURE

18.1 Force majeure is not applicable to this Option Agreement
as it does not apply to the obligations to make the three cash payments of
$30,000 each and to issue the 500,000 Passport Shares pursuant to Section 3
herein.

GENERAL

19.1 (a) This Option Agreement shall supersede and replace any
other agreement or arrangement, whether oral or written, heretofore existing
between the parties in respect of the subject matter of this Agreement;

(b) No consent or waiver expressed or implied by either party
in respect of any breach or default by the other in the performance by such
other of its obligations hereunder shall be deemed or construed to be a consent
to or a waiver of any other breach or default;

(d) The parties shall promptly execute or cause to be executed
all documents, deeds, conveyances and other instruments of further assurance and
do such further and other acts which may be reasonably necessary or advisable to
carry out fully the intent of this Agreement or to record wherever appropriate
the respective interest from time to time of the parties in the Property,

(e) This Agreement including all Schedules together with the
agreements and documents to be delivered pursuant hereto are the full expression
of the Parties’ intentions and rights and the entire agreement between them
pertaining to the subject matter hereof and supersede all prior agreements,
understandings, negotiations and discussions whether oral or written of the
Parties. There are no representations, warranties or other agreements between
the Parties in connection with the subject matter hereof. No amendment or
termination of this Agreement shall be binding unless executed in writing by the
Party to be bound thereby. No waiver of any other provisions of this Agreement
shall be deemed to or shall constitute a waiver of any other provisions nor
shall such waiver constitute a continuing waiver unless otherwise expressly
provided.

(f) The Table of Contents to this Agreement, Articles,
Sections, Subsections and Headings contained herein are included solely for
convenience and are not intended to be full or accurate descriptions of the
content thereof and shall not be considered part of this Agreement. “Article”,
“Section”, “Subsection” or “Schedule” means and refers respectively to the
specified Article, Section, Subsection or Schedule of this Agreement. “Hereof,
“hereto” and “hereunder” and similar expressions mean and refer to this
Agreement and not to any particular Article, Section or Subsection.

(g) This Agreement shall enure to the benefit of and be binding
upon the parties and their respective successors and permitted assigns;

(e) This Agreement shall be governed by and construed in
accordance with the laws of the State of Arizona and the federal laws of the
United States applicable therein and shall be treated in all respects as an
Arizona contract and the reference to such laws shall not, by conflict of laws
rules or otherwise require the application of the laws of any
jurisdiction except to the extent that any property or asset affected by this
Agreement is subject to the laws of the jurisdiction where such property or
asset is situate in which case the laws of the local jurisdiction shall govern
to the extent necessary. Each party hereby irrevocably and unconditionally
submits to the non-exclusive jurisdiction of the Federal Court for the State of
Arizona and all courts competent to hear appeals therefrom;

16

(f) Time shall be of the essence in this Agreement;

(g) Wherever the neuter and singular is used in this Agreement
it shall be deemed to include the plural, masculine and feminine, as the case
may be;

(h) Any reference in this Agreement to currency shall be deemed
to be Canadian dollars;

(i) This Agreement is subject to the acceptance of the
Exchange;

(j) upon request by Passport, Sweetwater shall deliver or cause
to be delivered to Passport copies of all available maps and other documents and
data in its possession respecting the Permits,

(k) This Agreement may be executed in two or more counterparts,
and delivered electronically or by fax, each of which will be deemed to be an
original, and all of which will constitute one agreement, effective as of the
reference date given above.

IN WITNESS WHEREOF the parties hereto have executed this
Agreement as at the day and year first above written.

	The signature of American Potash LLC. 	 ) 	The signature of 	) 
	was affixed hereto 	 ) 	Sweetwater River Resources LLC 	) 
	by its authorized signatory) 	 ) 	was affixed hereto by 	) 
	  	 ) 	its authorized signatory) 	) 
	  	 ) 		) 
	/s/ Rudy de Jonge 	 ) 	/s/ John W. Glasscock 	) 
	Rudy de Jonge - 	 ) 	John Glasscock 	) 
	Chief Executive Officer 	 ) 	Chief Executive Officer 	) 
	  	 	  	  
	The signature of Passport Potash Inc. 	 ) 		  
	was affixed hereto 	 ) 		  
	by its authorized signatory 	 ) 		  
	/s/ Stephen B. Butrenchuk 	 ) 		  
	Steve Butrenchuk - Chief Executive Officer 	 ) 		  
	  	 	  	  
	/s/ Joshua Bleak 	 	  	  
	Josua Bleak - Director 	 	  	  

17

SCHEDULE A

ARIZONA PERMITS

Arizona State Land Department Exploration Leases held by
American Potash LLC

	
      1. 
	
      16.0-N-24.0-E-36, lease #08-113361, 640.000
  Acres;

	
       
	 
	
      2. 
	
      16.0-N-24.0-E-34, lease #08-113362, 640.000
  Acres;

	
       
	 
	
      3. 
	
      16.0-N-24.0-E-28, lease #08-113365, 640.000
  Acres;

	
       
	 
	
      4. 
	
      16.0-N-24.0-E-24, lease #08-113366, 640.000
  Acres;

	
       
	 
	
      5. 
	
      16.0-N-24.0-E-22, lease #08-113367, 640.000
  Acres;

18

Schedule “B”

Royalty Provisions

1.0 OBLIGATION

1.1 If Sweetwater becomes entitled to a Royalty pursuant to
Article 4 of the Option Agreement, Passport shall calculate the Royalty and the
sums to be disbursed to Sweetwater as at the end of each calendar quarter.

1.2 Passport shall, within 60 days of the end of each calendar
quarter, in respect of which any Royalty is payable:

	 	(a) 	
      pay or cause to be paid to Sweetwater that Royalty to
      which Sweetwater is entitled hereunder by courier at the address provided
      Passport; and

	 	 	 	 
	 	(b) 	
      deliver to Sweetwater a statement indicating:

	 	 	 	 
	 		(i) 	
      the gross amounts received from the
  purchaser(s);

	 	 	 	 
	 		(ii) 	
      the deductions therefrom in accordance with this
      Schedule; and

	 	 	 	 
	 		(iii) 	
      the amount of the Royalty to which Sweetwater is
      entitled, supported by such reasonable information as will enable
      Sweetwater to verify the gross amount payable by the
  purchaser(s).

2.0 ROYALTY CALCULATION

2.1 The Royalty payable for a calendar quarter shall be equal
to 2% of the net amount determined by deducting the Deductible Amounts
from the aggregate of all amounts actually received by Passport from the sale of
potash during such quarter.

2.2 “Deductible Amounts” means all costs or expenses
paid or incurred by or for the account of Passport during the quarter in
question with respect to:

	 	(a) 	
      any insurance, handling or transportation costs incurred
      in any delivery of the potash for purchase, including customs
    duties;

	 	 	 
	 	(b) 	
      any deduction, charge or penalty charged or deducted by
      the purchaser(s) relating to the chemical composition or physical
      attributes of the potash;

	 	 	 
	 	(c) 	
      any discount given to a purchaser or any chargebacks
      required by a purchase agreement; and

	 	 	 
	 	(d) 	
      applicable taxes.

3.0 NON ARMS LENGTH SALES

3.1 Where any potash is sold to, or treated in, a facility
owned or controlled Passport, the pricing for that sale or treatment will be
established by Passport on an arm’s length basis so as to be fairly competitive with pricing then available on
world markets for product of like quantity and quality.

19

4.0 ADJUSTMENTS AND VERIFICATION

4.1 Payment of any Royalty by Passport shall not prejudice the
right of Sweetwater to adjust any statement supporting the payment; provided,
however, that all statements presented to Sweetwater by Passport for any quarter
shall conclusively be presumed to be true and correct upon the expiration of 12
months following the end of the quarter to which the statement relates, unless
within that 12 month period Sweetwater gives notice to Passport making claim on
Passport for an adjustment to the statement which will be reflected in
subsequent payment of the Royalty.

4.2 Passport shall not adjust any statement in favour of itself
after the expiration of 12 months following the end of the quarter to which the
statement relates.

4.3 Sweetwater shall, upon 30 days’ notice in advance to
Passport, have the right to request that Passport have its independent external
auditors provide their audit certificate for the statement or adjusted
statement, as it may relate to the calculation of the Royalty.

4.4 The cost of the audit certificate shall be solely for
Sweetwater’s account unless the audit certificate discloses material error in
the calculation of Royalty, in which case Passport shall reimburse Sweetwater
the cost of the audit certificate. Without limiting the generality of the
foregoing, a discrepancy of 3% percent in the calculation of the Royalty shall
be deemed to be material.

20

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