EX-10.5 8 exhibit10-5.htm EXHIBIT 10.5 - GOLD PURCHASE AGREEMENT DATED FEBRUARY 11, 2014 Klondex Mines Ltd.: Exhibit 10.5 - Filed by newsfilecorp.com

NOTE: PORTIONS OF THIS EXHIBIT INDICATED BY “[REDACTED FOR PROPRIETARY REASONS]” ARE SUBJECT TO A CONFIDENTIAL TREATMENT REQUEST FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND HAVE BEEN OMITTED FROM THIS EXHIBIT. COMPLETE, UNREDACTED COPIES OF THIS EXHIBIT HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION AS PART OF THIS COMPANY’S CONFIDENTIAL TREATMENT REQUEST.

EXECUTION VERSION

 

 

GOLD PURCHASE AGREEMENT

 

Between

 

KLONDEX MINES LTD.

- and -

FRANCO-NEVADA GLW HOLDINGS CORP.

 

 

____________________________________

February 11, 2014
____________________________________

 

 

 


TABLE OF CONTENTS

1. Definitions 1
     
2. Interpretation. 15
     
3. Purchase and Sale of Purchased Gold Ounces 16
     
4. Conditions for Payment of Purchase Price 18
     
5. Taxes 19
     
6. Reporting Obligations 20
     
7. Books and Records; Audits; Inspections 22
     
8. Maintenance of Existence and Property 22
     
9. Management of Mining Operations 23
     
10. Royalty and Stream Interests 24
     
11. Financing Matters 26
     
12. Insurance Matters 27
     
13. Security Matters 27
     
14. Events of Default 28
     
15. Effect of Event of Default 32
     
16. Representations and Warranties of the Buyer 32
     
17. Representations and Warranties of the Seller 32
     
18. Indemnities 33
     
19. Term 33
     
20. Restricted Transfer Rights of the Seller Entities 34
     
21. Transfer Rights of the Buyer 34
     
22. Governing Law 35
     
23. Notices 35
     
24. General Provisions 36

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TABLE OF CONTENTS
(continued)

SCHEDULES:

SCHEDULE A – DESCRIPTION OF MIDAS PROPERTY
 
SCHEDULE B – DESCRIPTION OF FIRE CREEK PROPERTY
 
SCHEDULE C – DESCRIPTION OF OTHER PROPERTIES
 
SCHEDULE D – MONTHLY DELIVERY REQUIREMENTS
 
SCHEDULE E – CONDITIONS FOR PAYMENT OF PURCHASE PRICE
 
SCHEDULE F – REPRESENTATIONS AND WARRANTIES OF THE BUYER
 
SCHEDULE G – REPRESENTATIONS AND WARRANTIES OF THE SELLER

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GOLD PURCHASE AGREEMENT

GOLD PURCHASE AGREEMENT dated February 11, 2014.

BETWEEN:

KLONDEX MINES LTD., a corporation existing under the laws of British Columbia (the “Seller”)

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FRANCO-NEVADA GLW HOLDINGS CORP., a corporation incorporated under the laws of Canada (the “Buyer”)

WHEREAS:

(A)

In order to finance the Acquisition of the Midas Mine by the Seller, the Seller has agreed to sell the Purchased Gold Ounces to the Buyer, on and subject to the terms and conditions set out in this Agreement.

   
(B)

Upon completion of the Acquisition, the Midas Owner, which owns and has the right to operate and mine 100% of the Midas Mine, will be an indirect, wholly-owned Subsidiary of the Seller.

   
(C)

The Fire Creek Owner, which owns and has the right to develop, operate and mine 100% of the Fire Creek Project, is an indirect, wholly-owned Subsidiary of the Seller.

   
(D)

The Seller has agreed to cause the Seller Entities to enter into the Security Agreements, for the purpose of guaranteeing and securing the Delivery Obligations of the Seller due to the Buyer under this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1.

Definitions

   

For the purposes of this Agreement (including the recitals), unless the context otherwise requires, each of the following terms shall have the meaning given to it, as set out below, and grammatical variations of such term shall have a corresponding meaning:

   

Accounts” means: (i) all “accounts” as such term is used in the applicable Personal Property Securities Legislation, and (ii) all existing and hereafter arising rights to payment of a monetary obligation, whether or not earned by performance.

   

Acquisition” means the indirect acquisition of the Midas Mine by the Seller from Newmont USA Limited through the purchase by Klondex Holdings of all of the issued and outstanding shares of capital stock of Midas Holdings pursuant to the Acquisition Agreement.

   

Acquisition Agreement” means the stock purchase agreement dated December 4, 2013 between Newmont USA Limited, Klondex Holdings and the Seller, as amended on February 10, 2014.



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Affiliate” means, with respect to any Person, any other Person which directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person. For the purposes of this definition and the definitions of “Change of Control” and “Subsidiary”, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.

Agreement” means this Gold Purchase Agreement and all attached schedules, as such may be amended, restated, modified or superseded from time to time in accordance with the terms hereof.

Annual Compliance Certificate” means a certificate signed by an authorized senior officer of the Seller certifying that as of the date of such certificate:

  (a)

all of the representations and warranties made by the Seller Entities pursuant to the Transaction Documents are true and accurate in all material respects (other than those representations and warranties which are subject to a materiality qualifier, which representations and warranties shall be true and accurate in all respects) as if made on and as of the date of such certificate;

     
  (b)

no Event of Default or Material Adverse Effect has occurred and is continuing as of the date of such certificate; and

     
  (c)

no event which with notice or lapse of time or both would become an Event of Default has occurred and is continuing as of the date of such certificate;

in each case, except as specified in such certificate, together with all material information relating to such exception, including, if applicable, any action which the Seller Entities have taken or propose to take with respect thereto.

Annual Forecast Report” means a written report in relation to a fiscal year, with respect to each of the Midas Mine and the Fire Creek Project, to be prepared by or on behalf of the Seller, including with reasonable detail a forecast, based on the current development or mine plan, as applicable, of the quantity of gold, silver and other Minerals expected to be produced during such fiscal year on a month-by-month basis and over the remaining life of the mine on a year-by-year basis, including:

  (a)

the amount and a description of planned operating and capital expenditures;

     
  (b)

types, tonnes and grade of Minerals to be mined;

     
  (c)

types, tonnes and grade of Minerals to be stockpiled; and

     
  (d)

with respect to the processing facilities, the types, tonnes and grade of Minerals to be processed; expected recoveries for gold, silver and other Minerals; and expected doré weight and gold and silver grade.

Annual Operational Report” means a written report in relation to a fiscal year with respect to each of the Midas Mine and the Fire Creek Project, to be prepared by or on behalf of the Seller, which shall include all of the information pertaining to the construction, commissioning or operations contained in annual reports prepared and provided to the board of directors of any of the Seller Entities and, to the extent not contained in such reports, will also contain, for such year:


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  (a)

types, tonnes and grade of Minerals mined;

     
  (b)

types, tonnes and grade of Minerals stockpiled;

     
  (c)

with respect to the processing facilities, the types, tonnes and grade of Minerals to be processed; recoveries for gold, silver and other Minerals; and doré weight and gold and silver grade;

     
  (d)

the number of ounces of gold and silver and the quantity of other Minerals contained in the material processed during such year, but not delivered to a purchaser by the end of such year;

     
  (e)

the number of ounces of gold and silver and the quantity of other Minerals delivered to a purchaser;

     
  (f)

the amount and a description of operating and capital expenditures;

     
  (g)

a statement setting out the mineral reserves and mineral resources (by category) prepared in accordance with National Instrument 43-101 (with the assumptions used, including cut-off grade, metal prices and metal recoveries);

     
  (h)

a review of the development or operating activities for the year and a report on any material issues or departures from that contemplated by the development or mine plan, as applicable as of the first day of the fiscal year;

     
  (i)

variances from projected operating and capital expenditures and any actual or expected adverse impact on development or production or recovery of gold, silver and other Minerals, whether as to quantity or timing, together with the details of the plans to resolve or mitigate such matters;

     
  (j)

if applicable, the percentage completion compared to the initial development plan of the major elements of construction and the anticipated date of commencement of commercial production, if it has not yet then occurred; and

     
  (k)

details of any material health or safety violations and/or material violations of any Applicable Laws (including Environmental Laws).

The Annual Operational Report shall also contain a report on any Encumbrances, other than customary liens, placed on the assets or properties of the Seller Entities with respect to liabilities or obligations greater than $1,000,000 (in the aggregate).

Applicable Law” means any law (including common law and equity), any international or other treaty, any domestic or foreign constitution or any multinational, federal, provincial, territorial, state, municipal, county or local statute, law, ordinance, code, rule, regulation, Order (including any securities laws or requirements of stock exchanges and any consent decree or administrative Order), or Authorization of a Governmental Body in any case applicable to any specified Person, property, transaction or event, or any such Person’s property or assets.


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Authorization” means any authorization, approval, consent, concession, exemption, license, lease, grant, permit, franchise, right, privilege or no-action letter from any Governmental Body having jurisdiction with respect to any specified Person, property, transaction or event, or with respect to any of such Person’s property or business and affairs (including any zoning approval, mining permit, development permit or building permit) or from any Person in connection with any easements, contractual rights or other matters.

Bankruptcy Code” means any of the Bankruptcy Reform Act, Title 11 of the United States Code, the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada) and the Winding-Up and Restructuring Act (Canada) or any similar legislation, each as amended or recodified from time to time, including (unless the context otherwise requires) any rules or regulations promulgated thereunder.

Business Day” means any day (other than a Saturday or Sunday) on which banks are open for business in Toronto, Ontario, and Elko, Nevada.

Buyer” has the meaning set out on the first page of this Agreement.

Capital Lease” means, as to any Person, (i) any lease of property by such Person as lessee to the extent the obligations of such Person thereunder are required to be classified and accounted for as capital lease obligations or finance lease obligations on a balance sheet of such Person in accordance with GAAP, or (ii) any synthetic lease, tax retention operating lease or any other lease having substantially the same economic effect as a conditional sale, title retention agreement or similar arrangement.

Change of Control” means, with respect to any Person, the consummation of any transaction, including any consolidation, amalgamation, arrangement or merger or any issue, transfer or acquisition of securities, the result of which is that any other Person or group of Persons acting jointly or in concert for purposes of such transaction directly or indirectly (A) becomes the beneficial owner of more than 50% of the voting securities of such Person, measured by voting power rather than number of securities, or (B) controls such Person.

Collateral” means all of the property and rights of the Seller Entities in and to assets, rights and property, including: (a) all Accounts, instruments, chattel paper, deposit accounts, documents, intangibles, goods (including inventory, equipment and fixtures), money, letter of credit rights, supporting obligations, claims, causes of action and other legal rights and investment property; (b) all of the Properties and Other Properties; (c) all products, proceeds, rents and profits of the foregoing; (d) all books and records of the Seller Entities related to any of the foregoing; and (e) all of the foregoing, whether now owned or existing or hereafter acquired or arising or in which any of the Seller Entities now has or hereafter acquires any rights.

Contaminant” means any solid, liquid, gas, odor, heat, sound, vibration, radiation, or combination of any of them, that does or is reasonably expected to:

  (a)

impair the quality of the Environment for any use that can be made of it;

     
  (b)

injure or damage property or plant or animal life;

     
  (c)

adversely affect the health of any individual;

     
  (d)

impair the safety of any individual;



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  (e)

render any plant or animal life unfit for use by man; or

     
  (f)

create a liability under any Environmental Law;

and includes any “contaminant” within the meaning ascribed to such term in any Environmental Law.

Deductions” means any and all refining, treatment and other charges, penalties, insurance, deductions, transportation, settlement, financing, price participation charges and/or other charges, penalties, deductions, set-offs, Taxes and expenses pertaining to and/or in respect of the Purchased Gold Ounces delivered under this Agreement (or payments in lieu thereof).

Default Amount” means the sum of:

  (a)

the amount determined by the following formula:

(A - B) x C

where

“A” is the total number of Purchased Gold Ounces (being 38,250 ounces),

“B” is the total number of ounces of Refined Gold delivered by the Seller to the Buyer pursuant to the Delivery Obligations, and

“C” is [redacted for propriety reasons], and

     
  (b)

interest on such amount at the rate of 12% per annum, calculated from the date of the notice from the Buyer to the Seller pursuant to Section 15 until the date of payment of such amount plus interest in full.

Delivery Date” means the last Business Day of each calendar month during the Delivery Period.

Delivery Obligations” means the obligation of the Seller to deliver the Purchased Gold Ounces to the Buyer under this Agreement and each and all of the Seller Entities’ related covenants and obligations under this Agreement (for greater certainty, including Monthly Delivery Requirements) and any Security Agreement to which it is a party, as applicable.

Delivery Period” means the period commencing on June 1, 2014 and ending on the Final Delivery Date.

Designated Jurisdiction” means Canada, the United Kingdom or such other location as may be agreed between the Buyer and the Seller.

Disclosure Schedule” means the disclosure schedule delivered on the date hereof by the Seller to the Buyer setting forth exceptions to, and disclosures with respect to, the representations and warranties set forth in Section 17 and Schedule G.

Effective Date” means the date on which the Buyer pays the Purchase Price to the Seller, or such Person as directed by the Seller, which, subject to the satisfaction of the conditions set out in Section 4, shall be the date on which the Acquisition is completed, or such other date as may be agreed to in writing by the Seller and the Buyer.

Encumbrance” means any mortgage, deed of trust, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, security interest, priority or other security agreement, preferential arrangement or encumbrance of any kind or nature whatsoever, including any conditional sale or other title retention agreement or the interest of a lessor under a Capital Lease or prior claims or royalties of any nature whatsoever, whether registered or recorded or unregistered or unrecorded.

Environment” means the ambient air, all layers of the atmosphere, surface water, underground water, all land (surface and underground), all living organisms and the interacting natural systems that include components of air, land, water, organic and inorganic matter and living organisms, and includes indoor and underground spaces.

Environmental Laws” means any Applicable Law relating to the Environment, occupational health or safety, industrial hygiene, product liability or any past, present or future activity, event or circumstance in respect of any Hazardous Materials (including the use, handling, transportation, production, disposal, discharge or storage thereof or the terms of any Authorization issued in connection therewith) or the environmental conditions on, under or about any real property (including soil, groundwater and indoor, underground and ambient air conditions).


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Event of Default” has the meaning set forth in Section 14.

Facility Agreement” means the senior secured facility agreement dated February 11, 2014 among the Seller, the guarantors party thereto, Royal Capital Management Inc., as security Agents', and the lenders party thereto, as amended, restated, modified, supplemented or replaced from time to time in accordance with the terms of this Agreement.

Final Delivery Date” means the date on which all of the Purchased Gold Ounces have been delivered to the Buyer in accordance with this Agreement.

Fire Creek Owner” means Klondex Gold & Silver Mining Company, a corporation existing under the laws of Nevada.

Fire Creek Project” means the Fire Creek gold project located in the State of Nevada, U.S.A., including the Fire Creek Property, the mining production, processing, recovery, sale, transportation, storage and delivery operations and related assets and other assets located on or at or used in connection with the Fire Creek Property or to mine Minerals from the Fire Creek Property, including all Minerals, Authorizations, Other Rights, tailings, fixtures, mines, facilities, equipment and inventory, existing or to be developed, constructed, and operated at or in respect of the Fire Creek Property, including infrastructure assets, tailings management facilities and other plants.

Fire Creek Property” means all right, title and interest of any of the Seller Entities to:

  (a)

patented claims, fee title and unpatented mining and millsite claims and all accessions and successions thereto, whether created privately or through government action, mineral rights and surface rights, whether owned or leased, in each case used in connection with the Fire Creek Project, including any of the foregoing described in Schedule B;

     
  (b)

all water, water rights and the permits and other evidence of authority or approval to appropriate and/or use ground or surface water in connection with the properties and rights referred to above, including the water rights described in Schedule B;

     
  (c)

all Minerals, Authorizations and Other Rights, all other property, tailings, buildings, structures, facilities and fixtures used, affixed or situated thereon, Utility Commitments and other rights or assets in each case relating to the interests referred to in (a) and (b) above; and

     
  (d)

any of the foregoing subsequently acquired.

GAAP” means generally accepted accounting principles for publicly accountable enterprises at the relevant time determined with reference to The Handbook of the Canadian Institute of Chartered Accountants, as amended from time to time, which for certainty, for financial periods beginning on or after January 1, 2011, are International Financial Reporting Standards; provided that, with respect to the Midas Entities for periods prior to completion of the Acquisition, “GAAP” means United States generally accepted accounting principles.


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Governmental Body” means the government of Canada, the United States of America or any other nation, or of any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, arbitrator or arbitrators, tribunal, central bank or other entity exercising executive, legislative, judicial or arbitral, taxing, regulatory or administrative powers or functions (including any applicable stock exchange).

Hazardous Materials” means any pollutant or Contaminant, including any hazardous, dangerous, registrable or toxic chemical, material or other substance within the meaning of any Environmental Law.

Indebtedness” of any Person means, without duplication:

  (a)

all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, bills or other similar instruments;

     
  (b)

all obligations, contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and banker’s acceptances issued for such Person’s account;

     
  (c)

all obligations under any Capital Lease of such Person;

     
  (d)

all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business);

     
  (e)

all obligations secured by (or for which the holder of such obligations has an existing right, contingent or otherwise, to be secured by) any Encumbrance upon or in property owned by such Person, even if such Person has not assumed or become liable for the payment of such obligations or such obligations are limited in recourse;

     
  (f)

all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even if the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property);

     
  (g)

all guarantees, indemnities and other obligations (contingent or otherwise) of such Person in respect of Indebtedness of another Person; and

     
  (h)

all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any equity, ownership or profit interests in such Person within ten years from the date of issuance thereof.

Intercreditor Agreement” means the priority agreement entered into between, among others, the Seller, the Buyer and Royal Capital Management Corp. on the date of this Agreement.

Klondex BC Holdco” means 0985472 BC Ltd., a corporation existing under the laws of British Columbia.

Klondex Entities” means the Seller Entities other than, prior to the completion of the Acquisition, the Midas Entities.

Klondex Holdings” means Klondex Holdings (USA) Inc., a corporation existing under the laws of Nevada.


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Loan” means the loan in the aggregate principal amount of $25,000,000 provided to the Seller pursuant to the Facility Agreement by the lenders thereunder.

Losses” means any and all damages, claims, losses, lost profits, liabilities, fines, injuries, costs, penalties and expenses (including reasonable legal fees).

Material Adverse Effect” means any change, event, occurrence, condition, circumstance, effect, fact or development that has, or could reasonably be expected to have, a material and adverse effect on:

  (a)

the operations, results of operations, business, affairs, properties, assets, liabilities and obligations (contingent or otherwise), capitalization or condition (financial or otherwise) of the Seller Entities taken as a whole;

     
  (b)

the Midas Mine (including the ability of the Seller Entities to operate the Midas Mine as currently operated and substantially in accordance with the mine plan for the Midas Mine in effect at the time of the occurrence of the Material Adverse Effect);

     
  (c)

the Fire Creek Project (including the ability of the Seller Entities to construct, develop or operate the Fire Creek Project substantially in accordance with the applicable development or mine plan for the Fire Creek Project in effect at the time of the occurrence of the Material Adverse Effect);

     
  (d)

the ability of any Seller Entity to perform its obligations under any Transaction Document to which it is a party;

     
  (e)

the legality, validity, binding effect or enforceability of any Transaction Document or the rights and remedies of the Buyer or any of its Affiliates under any of the Transaction Documents; or

     
  (f)

the validity, perfection or priority of security under any Security Agreement.

Midas Entities” means Midas Holdings and the Midas Owner.

Midas Holdings” means Newmont Midas Holdings Limited, a corporation existing under the laws of Nevada.

Midas Mine” means the Midas mine and related ore milling facility located in the State of Nevada, U.S.A., including the Midas Property, the mining production, processing, recovery, sale, transportation, storage and delivery operations and related assets and other assets located on or at or used in connection with the Midas Property or to mine Minerals from the Midas Property, including all Minerals, Authorizations, Other Rights, tailings, fixtures, mines, facilities, equipment and inventory, existing or to be developed, constructed, and operated at or in respect of the Midas Property, including infrastructure assets, tailings management facilities and other plants.

Midas Owner” means Newmont Midas Operations Inc., a corporation existing under the laws of Nevada.

Midas Property” means all right, title and interest of any of the Seller Entities to:


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  (a)

patented claims, fee title and unpatented mining and millsite claims and all accessions and successions thereto, whether created privately or through government action, mineral rights and surface rights, whether owned or leased, in each case used in connection with the Midas Mine, including any of the foregoing described in Schedule A;

     
  (b)

all water, water rights and the permits and other evidence of authority or approval to appropriate and/or use ground or surface water in connection with the properties and rights referred to above, including the water rights described in Schedule A;

     
  (c)

all Minerals, Authorizations and Other Rights, all other property, buildings, structures, facilities and fixtures used, affixed or situated thereon, Utility Commitments and other rights or assets, in each case relating to the interests referred to in (a) and (b) above; and

     
  (d)

any of the foregoing subsequently acquired.

Minerals” means any and all metals, minerals and mineral rights of every nature and kind, including metals, precious metals, base metals, gems, diamonds, industrial minerals, commercially valuable rock, aggregate, clays, and diatomaceous earth, hydrocarbons, oil, gas, and other materials in whatever form or state.

Monthly Average Gold Price” means, for any given calendar month, the monthly average of the London p.m. fix for gold as quoted in United States dollars by the London Bullion Market Association (or any successor metals exchange) for such month, calculated by dividing the sum of all such quotations during such month by the number of such quotations.

Monthly Delivery Requirements” means, for each calendar month ending during and including the last day of the Delivery Period, the applicable number of ounces of Refined Gold for such month set out in Schedule D.

Monthly Operational Report” means a written report in relation to a calendar month with respect to each of the Midas Mine and the Fire Creek Project, to be prepared by or on behalf of the Seller for each month, which shall include all of the information contained in the monthly operating reports prepared and provided to the board of directors of any of the Seller Entities and, to the extent not contained in such reports, will also contain, for such month:

  (a)

types, tonnes and grade of Minerals mined;

     
  (b)

types, tonnes and grade of Minerals stockpiled;

     
  (a)

with respect to the processing facilities, the types, tonnes and grade of processed Minerals; recoveries for gold, silver and other Minerals; and doré weight and gold and silver grade;

     
  (b)

the number of ounces of gold and silver and the quantity of other Minerals contained in the material processed during such month, but not delivered to a purchaser by the end of such month;

     
  (c)

the number of ounces of gold and silver and the quantity of other Minerals produced and delivered to a purchaser;

     
  (c)

the amount and a description of operating and capital expenditures; and



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  (d)

any material changes from the most recent production forecasts provided to the Buyer.

National Instrument 43-101” means National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (or any successor instrument, rule or policy).

Notice of Offer” has the meaning set out in Section 10(b).

Offered Interest” has the meaning set out in Section 10(b).

Other Properties” means, except to the extent constituting part of the Properties, all right, title and interest of any of the Seller Entities to:

  (a)

patented claims, fee title and unpatented mining and millsite claims and all accessions and successions thereto, whether created privately or through government action, mineral rights and surface rights, whether owned or leased, including any of the foregoing described in Schedule C;

     
  (b)

all water, water rights and the permits and other evidence of authority or approval to appropriate and/or use ground or surface water in connection with the properties and rights referred to above, including the water rights described in Schedule C;

     
  (c)

all Minerals, Authorizations and Other Rights, all other property, buildings, structures, facilities and fixtures used, affixed or situated thereon, Utility Commitments and other rights or assets, in each case relating to the interests referred to in (a) and (b) above; and

     
  (d)

any of the foregoing subsequently acquired.

Other Rights” means all licenses, approvals, authorizations, consents, rights (including surface rights, access rights and rights of way), privileges, concessions or franchises held by the Seller Entities or required to be obtained from any Person (other than a Governmental Body), for the construction, development and operation of the Midas Mine and/or Fire Creek Project, as applicable, as such construction, development and operation is contemplated by the current or then applicable development or mine plan, as the case may be.

Order” means any order, directive, decree, judgment, ruling, award, injunction, direction or request of any Governmental Body or other decision-making authority of competent jurisdiction.

 “Parties” means the parties to this Agreement and “Party” means any one of the Parties.

Permitted Encumbrances” means:

  (a)

Encumbrances arising by operation of law for Taxes, assessments or governmental charges not yet due or being contested in good faith by appropriate proceedings diligently conducted and for which reserves satisfactory to the Buyer have been established and provided that the Encumbrance is released prior to any enforcement action against any property of the Seller Entities;

     
  (b)

statutory liens of mechanics, materialmen, shippers, warehousemen, carriers, and other similar Persons for services or materials arising in the ordinary course of business for which: (i) payment is not past due; or (ii) payment is due but is being contested in good faith by appropriate and lawful proceedings diligently conducted and for which reserves satisfactory to the Buyer have been established and provided that the Encumbrance is released prior to any enforcement action against any property of the Seller Entities;



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  (c)

nonconsensual liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security;

     
  (d)

Encumbrances specifically identified and listed on the Disclosure Schedules;

     
  (e)

Encumbrances granted in the Transaction Documents;

     
  (f)

Encumbrances granted pursuant to the Facility Agreement;

     
  (g)

Purchase Money Liens securing Indebtedness referred to in Section 11(c)(ii);

     
  (h)

Permitted Working Capital Security securing Indebtedness referred to in Section 11(c)(i);

     
  (i)

Encumbrances arising from the right of distress enjoyed by landlords or Encumbrances otherwise granted to landlords, in either case, to secure the payment of arrears of rent in respect of leased properties and customarily granted in the applicable jurisdiction; provided that such rent is not then overdue and the Seller Entities are then in compliance in all material respects with the terms of the lease or sublease in respect of such leased properties and provided further that any such Encumbrances are limited to property of the Seller Entities located at the premises subject to the applicable lease or sublease;

     
  (j)

zoning restrictions, easements, rights of way, survey exceptions, encroachments, covenants, licenses, reservations, leasehold interests, restrictions on the use of real property or minor irregularities incident thereto which do not (i) secure obligations for the repayment of money, or (ii) in the aggregate materially detract from the value or use of the property or assets of the Seller Entities or impair, in any material manner, the use of such property for the purposes for which such property is held or intended to be used by the Seller Entities;

     
  (k)

the paramount title of the United States as to any unpatented mining claims and millsite claims and any rights of third parties to the lands within such unpatented mining claims and millsite claims pursuant to Multiple Mineral Development Act of 1954 and the Surface Resources and Multiple Use Act of 1955 and the regulations of the Department of the Interior promulgated in accordance with the foregoing statutes;

     
  (l)

Encumbrances of a depository institution arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of setoff, or similar rights and remedies as to deposit accounts or other funds maintained with such institution, provided that (i) such deposit account is not a dedicated cash collateral account and is not subject to restrictions against access by a Seller Entity in excess of those set forth by regulations promulgated by any Governmental Body, and (ii) such deposit account is not intended by the applicable Seller Entities to provide collateral to the depository institution;

     
  (m)

Encumbrances consisting of pledges of cash or near cash assets made to secure or facilitate the provision of security for the performance of bids, trade contracts, leases, public or statutory obligations (including but not limited to environmental, reclamation or other similar obligations) or other obligations of a like nature (including surety, appeal or performance bonds), in each case incurred in the ordinary course of business (other than for Indebtedness);



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  (n)

any undetermined or inchoate lien or privilege incidental to current operations that has not been filed pursuant to law or that relates to obligations not due or delinquent;

     
  (o)

any right reserved to or vested in any Governmental Body by the terms of any Authorization held or acquired by a Person in the ordinary course of its business, or by any statutory provision, to terminate the Authorization or to require annual or other periodic payments as a condition of the continuance thereof;

     
  (p)

any Encumbrance created or assumed by a Person in favor of a public utility or Governmental Body when required by the utility or Governmental Body in connection with the operations of such Person in the ordinary course;

     
  (q)

any reservations, limitations, provisos and conditions expressed in original grants from any Governmental Body;

     
  (r)

any Encumbrance arising from court or arbitral proceedings, provided that the claims secured thereby or the amount thereof do not exceed [redacted for proprietary reasons] and are being contested at the time in good faith by proper legal proceedings, execution thereon has been stayed and the same is not, in the opinion of the Buyer, acting reasonably, expected to result in a Material Adverse Effect;

     
  (s)

deposits of cash or securities in connection with any appeal or contestation of any Encumbrance; and

     
  (t)

such other Encumbrances as may be approved in writing by the Buyer from time to time, whether or not such Encumbrances are registered against the Collateral or otherwise.

Permitted Refinancing Indebtedness” means Indebtedness of any Seller Entity the net proceeds of which are used to replace, refinance, defease or discharge the Loan (or any other Permitted Refinancing Indebtedness), in whole but not in part, provided that (i) the principal amount of such Permitted Refinancing Indebtedness does not exceed the principal amount of the Indebtedness so replaced, refinanced, defeased or discharged (plus the amount of all fees, and expenses and premiums incurred in connection therewith); (ii) such Indebtedness has a maturity date which is after the date of the Indebtedness being replaced, refinanced, defeased or discharged, and a weighted average life to maturity equal to or greater than the Indebtedness being replaced, refinanced, defeased or discharged, and (iii) such Indebtedness is either (a) unsecured or (b) secured only against the Collateral and, in the case of (b), the lenders thereunder have agreed to be bound by an intercreditor agreement with the Buyer which is at least as favourable to the Buyer (as determined by it, acting reasonably) as the Intercreditor Agreement.

Permitted Working Capital Debt” has the meaning set forth in Section 11(c).

Permitted Working Capital Security” has the meaning set forth in Section 11(c).

Person” means and includes individuals, corporations, bodies corporate, limited or general partnerships, joint stock companies, limited liability companies, joint ventures, associations, companies, trusts, banks, trust companies, Governmental Bodies or any other type of organization or entity, whether or not a legal entity.


- 13 -

Personal Property Security Legislation” means with respect to the State of Nevada, Article 9 of the Uniform Commercial Code to the extent adopted in such State from time to time, and with respect to other applicable jurisdictions, the personal property security legislation in effect therein from time to time.

Properties” means, collectively, the Midas Property and the Fire Creek Property.

Purchased Gold Ounces” has the meaning set out in Section 3(a).

Purchase Money Lien” means an Encumbrance created or incurred by a Person securing Indebtedness incurred to finance the acquisition of personal property (including the costs of installation thereof), provided that:

  (a)

such lien is created substantially simultaneously with the acquisition of such property;

     
  (b)

such lien does not at any time encumber any property other than the property financed by such Indebtedness;

     
  (c)

the amount of Indebtedness secured thereby is not increased subsequent to such acquisition; and

     
  (d)

the principal amount of Indebtedness secured by such lien at no time exceeds 100% of the original purchase price of such property and the cost of installation thereof; and

     
  (e)

for the purposes of this definition, the term “acquisition” includes a Capital Lease.

Purchase Price” means $33,763,640, being the purchase price for the Purchased Gold Ounces.

Records” means all of the Seller Entities’ present and future books, records and data of every kind or nature, including books of account, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence, statements, correspondence, memoranda, credit files, electronically stored data and other data, together with the tapes, disks, diskettes, drives and other data and software storage media and devices, file cabinets or containers in or on which the foregoing are stored (including any rights of a Seller Entity with respect to the foregoing maintained with or by any other Person).

Refined Gold” means marketable metal bearing material in the form of gold bars or coins that is refined to a minimum 995 parts per 1,000 fine gold.

ROFR Exercise Notice” has the meaning set out in Section 10(d).

Sales Taxes” means sales, transfer, turnover, VAT or value added Taxes of any nature or kind.

Security” means the Encumbrances on the Collateral created by the Security Agreements.

Security Agreements” means the guarantees and security documents listed on Schedule E hereto, together with such other agreements made in favour of the Buyer from time to time guaranteeing or securing or intending to guarantee or secure the obligations of the Seller due to the Buyer under this Agreement.


- 14 -

SEDAR” means the System for Electronic Document Analysis and Retrieval.

Seller” has the meaning set out on the first page of this Agreement.

Seller Entity” means the Seller, Klondex BC Holdco, Klondex Holdings, the Fire Creek Owner, Midas Holdings, the Midas Owner and each of their Subsidiaries.

Solvent” means, when used with respect to a Person, that:

  (a)

the fair saleable value of the assets of such Person is in excess of the total amount of the current value of its liabilities (including for purposes of this definition all liabilities (including loss reserves), whether or not reflected on a balance sheet prepared in accordance with GAAP and whether direct or indirect, fixed or contingent, secured or unsecured, disputed or undisputed);

     
  (b)

such Person is able to pay its debts or obligations in the ordinary course as they mature;

     
  (c)

such Person has capital sufficient to carry on its business; and

     
  (d)

such Person is not otherwise insolvent as defined by any Applicable Law;

and “Insolvent” shall have a correlative meaning.

Subsidiary” means with respect to any Person, any other Person which is controlled directly or indirectly by that Person.

Taxes” means all taxes of any kind or nature whatsoever including corporation taxes, capital taxes, realty taxes (including utility charges which are collectible like realty taxes), net proceeds of mines tax, privilege taxes, excise taxes, business taxes, property transfer taxes, income taxes, Sales Taxes, customs duties, payroll taxes, levies, stamp taxes, royalties, duties, and all fees, including claim fees, deductions, compulsory loans and withholdings imposed, levied, collected, withheld or assessed as of the date hereof or at any time in the future, by any Governmental Body of any jurisdiction whatsoever having power to tax, together with penalties, fines, additions to tax and interest thereon.

Term Notes” means the senior secured term notes issued by the Seller under the Facility Agreement.

Third Party Offer” has the meaning set out in Section 10(b).

Third Party Offeror” has the meaning set out in Section 10(b).

Threshold Amount” means $2,500,000.

Time of Delivery” has the meaning set forth in Section 3(e).

Transaction Documents” means, collectively, this Agreement, the Intercreditor Agreement, the Security Agreements, the Disclosure Schedule and each other agreement, document, instrument or certificate delivered for the benefit of the Buyer and its Affiliates pursuant to or otherwise in connection with any of this Agreement, the Intercreditor Agreement, the Security Agreements and the Disclosure Schedule.


- 15 -

Transfer”, when used as a verb, means to sell, grant, assign, encumber, hypothecate, pledge or otherwise dispose of or commit to dispose of, directly or indirectly, including through mergers, arrangements, amalgamations, consolidations, asset sales or spin out transactions. When used as a noun, “Transfer” means a sale, grant, assignment, pledge or disposal or the commitment to do any of the foregoing, directly or indirectly, including through mergers, arrangements, amalgamations, consolidations, asset sales or spin out transactions. “Transfer” shall not include any relocation or reconfiguration of unpatented mining claims in the ordinary course of business, or the abandonment of claims to be so relocated or reconfigured; provided, however, that in each case all modifications to the Security Agreements reasonably necessary to ensure a valid lien and encumbrance on the relocated or reconfigured unpatented mining claims are promptly executed and delivered to the Buyer in form suitable for recordation.

TSX” means the Toronto Stock Exchange.

Utility Commitment” means any water service commitments and agreements, transmission or electrical service commitments and agreements and other utility commitments and agreements including the infrastructure, rights of way and easements necessary to provide the aforementioned utility services.

2.

Interpretation.

     
(a)

Interpretation of Certain Matters. In this Agreement, unless otherwise specifically provided or unless the context otherwise requires:


  (i)

the terms “Agreement”, “this Agreement”, “the Agreement”, “hereto”, “hereof”, “herein”, “hereby”, “hereunder” and similar expressions refer to this Agreement in its entirety and not to any particular provision hereof;

     
  (ii)

references to a “Section” or “Schedule” followed by a number or letter refer to the specified Section of or Schedule to this Agreement;

     
  (iii)

references to a Party in this Agreement mean the Party or its successors or permitted assigns;

     
  (iv)

the division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement;

     
  (v)

the words “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”;

     
  (vi)

any time period within which a payment is to be made or any other action is to be taken hereunder shall be calculated excluding the day on which the period commences and including the day on which the period ends;

     
  (vii)

whenever any payment is required to be made, action is required to be taken or period of time is to expire on a day other than a Business Day, such payment shall be made, action shall be taken or period shall expire on the next following Business Day;



- 16 -

  (viii)

references to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications thereto, but only to the extent such amendments and other modifications are not prohibited by the terms of the Transaction Documents; and

     
  (ix)

references to statutes or regulations are to be construed as including all statutory and regulatory provisions consolidating, amending, supplementing, interpreting or replacing the statute or regulation referred to.


  (b)

Currency. All references in this Agreement to currency or to “$”, unless otherwise expressly indicated, shall be to United States dollars.

     
  (c)

Accounting Principles. Where the character or amount of any 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 purposes of this Agreement and any other Transaction Document, including the contents of any certificate to be delivered hereunder, such determination, consolidation or computation shall, unless the Parties otherwise agree or the context otherwise requires, be made in accordance with GAAP applied on a consistent basis.

     
  (d)

Time of Essence. Time shall be of the essence of this Agreement.


3.

Purchase and Sale of Purchased Gold Ounces

     
(a)

Purchase and Sale. On and subject to the terms and conditions of this Agreement, in consideration of the Purchase Price, the Seller agrees to sell and deliver to the Buyer, and the Buyer agrees to purchase from the Seller, 38,250 ounces of Refined Gold (the “Purchased Gold Ounces”), free and clear of any and all Encumbrances. For greater certainty, the Buyer shall not be responsible for any Deductions, all of which shall be for the account of the Seller.

     
(b)

Payment. Subject to the satisfaction of the conditions set out in Section 4(a), the Buyer shall pay the Purchase Price to the Seller (or as directed by the Seller in connection with completion of the Acquisition) on the Effective Date. The Purchase Price shall be payable in cash by wire transfer to an account to be designated by the Seller and notified to the Buyer in writing at least one Business Day prior to the Effective Date. The Seller shall use the proceeds of the Purchase Price only for the purpose of paying for the Acquisition.

     
(c)

Monthly Delivery Requirements. On each Delivery Date occurring during the Delivery Period, the Seller shall deliver to the Buyer Refined Gold in an amount equal to the applicable Monthly Delivery Requirements. The Seller’s delivery obligations are fixed and not dependent on whether mining operations are being conducted on the Properties or any other properties of the Seller Entities or the results of such operations. The Seller shall not be obliged to deliver to the Buyer Refined Gold physically mined, produced or extracted from the Properties or any other properties of the Seller Entities, provided that the Seller shall not deliver any Refined Gold to the Buyer that has been purchased directly or indirectly on a commodities exchange. For greater certainty, the Seller shall be permitted to deliver to the Buyer Refined Gold from a refinery regardless of the origin of the Refined Gold, provided that the Refined Gold does not contain any minerals subject to conflict minerals legislation (or similar legislation banning the purchase, sale, delivery or use of, or requiring verification or reporting with respect to, minerals based on their origin) and the delivery of the Refined Gold to the Buyer is otherwise made in accordance with Applicable Law.



- 17 -

  (d)

Advance Deliveries. Notwithstanding any other provisions of this Agreement, the Seller may at any time deliver to the Buyer Refined Gold in advance of the Monthly Delivery Requirements, without bonus or penalty. Such advance deliveries of Refined Gold shall be credited against the next following Monthly Delivery Requirements.

       
  (e)

Manner of Delivery. The Seller shall deliver to the Buyer all Refined Gold to be delivered pursuant to the Monthly Delivery Requirements by way of credit in metal or physical allocation to the metal account designated by the Buyer, or such other location specified by the Buyer from time to time, acting reasonably, with such details to be specified by the Buyer and notified to the Seller in writing at least 10 Business Days prior to a delivery. Delivery of Refined Gold to the Buyer shall be deemed to have been made at the time such Refined Gold is credited or physically allocated to the designated metal account of the Buyer (the “Time of Delivery”). All costs and expenses pertaining to each delivery of Refined Gold shall be borne by the Seller provided that the Buyer’s account is located in a Designated Jurisdiction and, if the Buyer pays any of such costs and expenses, the Seller shall promptly reimburse the Buyer for such payments upon receipt of satisfactory evidence of the Buyer’s payment of such costs and expenses.

       
  (f)

Passing of Title. Title to, and risk of loss of, Refined Gold shall pass from the Seller to the Buyer at the Time of Delivery. The Seller represents, warrants and covenants to the Buyer that, immediately prior to each Time of Delivery:

       
  (i)

it will be the legal and beneficial owner of the Refined Gold credited or physically allocated to the designated metal account of the Buyer;

       
  (ii)

it will have good, valid and marketable title to such Refined Gold; and

       
  (iii)

such Refined Gold will be free and clear of all Encumbrances.


  (g)

Notification and Confirmation. The Parties agree to the following notification and confirmation protocol in respect of the delivery of the Purchased Gold Ounces under this Agreement:

         
  (i)

In the case of any deliveries contemplated by Section 3(d), the Seller shall notify the Buyer in writing at least three Business Days before any delivery and credit or physical allocation to the metal account specified by the Buyer of:

         
  (A)

the number of ounces of Refined Gold to be delivered and credited or physically allocated; and

         
  (B)

the estimated Time of Delivery.

         
  (ii)

At the Time of Delivery, the Seller shall deliver to the Buyer an invoice setting out:

         
  (A)

the number of ounces of Refined Gold so credited or physically allocated; and



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  (B)

such other information regarding the Refined Gold so delivered as reasonably requested by the Buyer from time to time.


  (h)

Late Charge. If delivery of Refined Gold is not made by the applicable Delivery Date, the Buyer may give the Seller written notice of such default. Unless the Seller shall have made such delivery within five days of receipt of such notice, an additional cash sum equal to [redacted for proprietary reasons] of the value of the delinquent delivery determined based on the Monthly Average Gold Price for the month during which the Delivery Date occurred (the “late charge”) shall be payable to the Buyer, plus interest on such amount and the late charge at the rate of [redacted for proprietary reasons] per annum, which shall accrue from the day the delinquent delivery was due to the date of such delivery in full and the payment of the late charge and accrued interest in full.


4.

Conditions for Payment of Purchase Price

       
(a)

Conditions in Favour of the Buyer. The obligation of the Buyer to pay the Purchase Price to the Seller shall be subject to the following:

       
(i)

the Buyer shall have received all documents set out in Schedule E and all conditions set out in Schedule E shall have been satisfied;

       
(ii)

all of the representations and warranties made by the Seller Entities pursuant to the Transaction Documents shall be true and accurate in all respects as if made on and as of the Effective Date;

       
(iii)

no Event of Default or Material Adverse Effect shall have occurred and be continuing;

       
(iv)

no event which with notice or lapse of time or both would become an Event of Default shall have occurred and be continuing;

       
(v)

all of the conditions precedent to the completion of the Acquisition pursuant to the Acquisition Agreement (other than payment of the funds required to complete the Acquisition) shall have been satisfied or, in the case of conditions precedent in favour of the Seller, with the prior written consent of the Buyer (which shall not be unreasonably withheld), waived;

       
(vi)

all of the conditions precedent to the funding pursuant to the Facility Agreement and the Subscription Receipt Agreement dated as of January 9, 2014, between the Seller, GMP Securities L.P. and Computershare Trust Company of Canada shall have been satisfied or waived and such funding shall be available to be paid to or as directed by the Seller for the purposes of completing the Acquisition;

       
(vii)

the funds from the Purchase Price to be paid, together with the other funds referred to in clause (vi) above, will be sufficient to complete the Acquisition;

       
(viii)

the 9% Senior Unsecured Notes due January 5, 2015 issued by the Seller shall have been repaid in full (such repayment not to exceed an amount equal to 102.5% of principal plus any unpaid accrued interest); provided that, if the funds referred to in clause (vi) above are to be used to repay such notes, the funds from the Purchase Price to be paid, together with the remainder of the funds referred to in clause (vi) above after repayment of such notes, will be sufficient to complete the Acquisition; and



- 19 -

  (ix)

the Buyer shall have received a certificate signed by an authorized senior officer of the Seller confirming the matters set forth in clauses (ii) through (viii) above.


  (b)

Conditions in Favour of the Seller. The obligation of the Seller to sell and deliver the Purchased Gold Ounces to the Buyer shall be subject to the Buyer having paid the Purchase Price and the Acquisition having been completed.

     
  (c)

Obligation to Satisfy Conditions. The Seller shall use all commercially reasonable efforts and take all reasonable action as may be necessary or advisable to satisfy and fulfill all the conditions set forth in this Section 4 as soon as practicable. The Buyer shall co-operate with the Seller in exchanging such information and providing such assistance as may be reasonably required in connection with the foregoing.

     
  (d)

Waiver of Conditions. Each of the conditions set forth in Section 4(a) is for the exclusive benefit of the Buyer, and may be waived by the Buyer in writing, in its sole discretion in whole or in part.


5.

Taxes

     
(a)

Taxes Payable by Seller. Except as required by Applicable Law or expressly contemplated herein, all deliveries of the Purchased Gold Ounces and any other payment or transfer of property of any kind made under this Agreement to the Buyer shall be made free and clear and without any present or future deduction, withholding, charge or levy on account of Taxes, without setoff or counterclaim. The Seller shall be liable for all such Taxes directly or indirectly imposed on the Buyer and shall indemnify and save the Buyer harmless from any such Taxes imposed on the Buyer.

     
(b)

Gross-up. All Taxes, if any, as are required by Applicable Law to be so deducted, withheld, charged or levied by the Seller on any such delivery (or payment, as applicable), shall be paid by the Seller delivering (or paying, as applicable) to the Buyer or on its behalf, in addition to such delivery (or payment, as applicable), such additional deliveries (or payments, as applicable) as are necessary to ensure that the net delivery (or payment, as applicable) received by the Buyer (net of any such Taxes, including any Taxes required to be deducted, withheld, charged or levied on any such additional amount) equals the full delivery (or payment, as applicable) that the Buyer would have received had no such deduction, withholding, charge or levy been required.

     
(c)

Additional Taxes. Notwithstanding Sections 3(a), 5(a) and 5(b), the Buyer shall be responsible for, and the Seller shall be entitled to deduct, withhold, charge or levy, any additional Taxes in respect of deliveries of the Purchased Gold Ounces and any other payment or transfer of property of any kind made under this Agreement to the Buyer where such additional Taxes arise solely because the Buyer is not resident in Canada for purposes of the Income Tax Act (Canada) or the location of the Buyer’s specified metal account is not located in a Designated Jurisdiction. For greater certainty, such additional Taxes shall be limited to the amount by which the Taxes required to be deducted, withheld, charged or levied in respect of deliveries of the Purchased Gold Ounces and any other payment or transfer of property of any kind made under this Agreement to the Buyer because the Buyer is not resident in Canada for purposes of the Income Tax Act (Canada) or the location of the Buyer’s specified metal account is not located in a Designated Jurisdiction exceeds the Taxes that would have been deducted, withheld, charged or levied had the Buyer been resident in Canada for purposes of the Income Tax Act (Canada) or the location of the Buyer’s metal account been in a Designated Jurisdiction, as the case may be.



- 20 -

  (d)

Withholding by Buyer. To the extent required by Applicable Law, the Buyer may deduct, withhold, charge or levy, any Taxes imposed by any Governmental Authority on the Seller or any of its Affiliates, or otherwise required to be withheld, in respect of any payment made by the Buyer to the Seller or any of its Affiliates under this Agreement.

     
  (e)

Application to Guarantors. The provisions of Sections 5(a), 5(b) and 5(c) shall also apply to all deliveries and payments made by any other Seller Entity to the Buyer whether made pursuant to its guarantee obligations under the Securities Documents or otherwise.

     
  (f)

Cooperation. The Parties agree to reasonably cooperate to: (i) ensure that no more Taxes, duties or other charges are payable than is required under Applicable Law; and (ii) obtain a refund or credit of any Taxes which have been overpaid.

     
  (g)

Tax Planning. Following the execution and delivery of this Agreement, each of the Parties will co-operate reasonably with the other Party in implementing any proposed adjustments to the structure or terms of this Agreement to facilitate tax planning, provided that such adjustments have no material adverse impact on the non-proposing Party and that the costs of such adjustments shall be paid for by the proposing Party.


6.

Reporting Obligations

       
(a)

Reports. The Seller shall deliver or cause to be delivered to the Buyer:

       
(i)

within 15 days after the end of each calendar month, a Monthly Operational Report in respect of the Midas Mine and the Fire Creek Project;

       
(ii)

within 45 days after the end of each fiscal year, an Annual Operational Report, which shall be accompanied by an Annual Compliance Certificate dated the date on which such Annual Compliance Certificate is delivered to the Buyer; and

       
(iii)

at least 45 days before the beginning of each fiscal year, an Annual Forecast Report.


  (b)

Financial Statements. Except if the Seller is a reporting issuer and such materials are filed on SEDAR prior to the dates specified below, the Seller shall deliver to the Buyer:

       
  (i)

within 45 days after the end of each of the first three fiscal quarters of each fiscal year, a copy of the Seller’s interim consolidated financial statements; and

       
  (ii)

within 90 days after the end of each fiscal year, a copy of the Seller’s audited annual consolidated financial statements.

       
  (c)

Shareholder Documents. Except if the Seller is a reporting issuer and such materials are filed on SEDAR promptly after they become available, the Seller shall promptly deliver to the Buyer a copy of each management information circular and other notices issued to its shareholders.



- 21 -

  (d)

Geological Reports. Except if the Seller is a reporting issuer and such materials are filed on SEDAR promptly after they become available, the Seller shall promptly deliver to the Buyer a copy any technical reports prepared in accordance with National Instrument 43- 101 or initial or updated mineral reserve and mineral resource estimates produced that pertain to the Properties.

     
  (e)

Claims Fee Filings and Payment Receipts. By no later than August 1st of each year, the Seller shall deliver to the Buyer documentation of acknowledgement by the United States Bureau of Land Management that the annual maintenance fees for all unpatented mining claims within the Properties have been paid, and copies of the Affidavit and Notice of Intent to Hold Claims recorded in the State of Nevada with respect to the Properties.

     
  (f)

Development and Mine Plans. The Seller shall promptly deliver to the Buyer a copy of the current development plan or mine plan, as applicable, for each of the Midas Mine and the Fire Creek Project, and a new copy thereof promptly upon any material amendment thereto.

     
  (g)

Other Notices. The Seller shall deliver to the Buyer:


  (i)

promptly after the Seller has knowledge or becomes aware thereof, notice of the occurrence of any Event of Default;

     
  (ii)

promptly after the Seller has knowledge or becomes aware thereof, written notice of all actions, suits and proceedings before any Governmental Body or arbitrator, pending or threatened, against or directly affecting any Seller Entity, the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities, including any actions, suits, claims, notices of violation, hearings, investigations or proceedings against or affecting any Seller Entity, or with respect to the ownership, use, maintenance and operation of its properties, including those relating to Environmental Laws;

     
  (iii)

promptly after the Seller has knowledge or becomes aware thereof, written notice of any other condition or event which has resulted, or that could reasonably be expected to result, in a Material Adverse Effect; and

     
  (iv)

such other statements, lists of property and accounts, budgets, forecasts, projections, reports, or other information respecting the operations, properties, business or condition (financial or otherwise) of any Seller Entity (including with respect to the Collateral) as the Buyer may from time to time reasonably request.

Each notice pursuant to clauses (i) through (iii) above shall be accompanied by a written statement by an authorized senior officer of the Seller setting forth all material information relating to the occurrence referred to therein, including any action which the Seller Entities have taken or propose to take with respect thereto.


- 22 -

7.

Books and Records; Audits; Inspections

     
(a)

Books and Records. The Seller shall, and shall cause each of the Seller Entities to, keep true, complete and accurate books and records of all material operations and activities with respect to the Properties and any other properties of the Seller Entities, and in which complete entries will be made, in accordance with GAAP applied on a consistent basis, reflecting all material financial transactions of each of the Seller Entities.

     
(b)

Audits. Upon not less than three Business Days’ notice, the Buyer and its authorized representatives shall be entitled, at its own cost and expense, to perform audits or other reviews and examinations of the books and records of the Seller Entities to confirm compliance by the Seller Entities with the terms of this Agreement and the other Transaction Documents. The Seller shall, and shall cause each of the Seller Entities to, provide the Buyer with complete access to all the Seller Entities’ books and records at the Seller Entities’ offices during usual business hours. If any such audits reveal a material breach of any provision of this Agreement or the other Transaction Documents, the Seller shall reimburse the Buyer for its costs and expenses incurred in such audit.

     
(c)

Inspections. At reasonable times and with the prior consent of the Seller (not to be unreasonably withheld or delayed), the Buyer and its authorized representatives shall have a right of access to all surface and subsurface portions of the Properties and any other properties of the Seller Entities and to any related operations of the Seller Entities for the purpose of enabling the Buyer to monitor compliance by the Seller Entities with the terms of this Agreement and the other Transaction Documents.

     
(d)

Investor Tours. Upon not less than 10 Business Days’ notice to the Seller and up to two times in any fiscal year, the Buyer shall have the right to conduct an investors tour on the Properties and any facilities associated therewith.

     
(e)

Additional Requirements. Access to the Seller Entities’ properties and associated facilities pursuant to Sections 7(c) and 7(d) shall be subject to the following: (i) any such access shall be at the sole risk and expense of the Buyer, its representatives and its invitees; (ii) any such access shall not unreasonably interfere with the Seller Entities’ activities and operations; (iii) the Buyer shall comply, and request that its representatives and invitees comply, with the policies and procedures that the Seller Entities apply to their own invitees; (iv) the Buyer shall give the Seller prompt notice of any injuries, property damage or environmental harm that may occur during such tour; and (v) the Buyer shall indemnify the Seller Entities from any Losses (excluding loss of profit and consequential or punitive damages) suffered or incurred by any Seller Entity as a consequence of injury to the Buyer, or its representatives or invitees incurred during such access, provided that the foregoing shall not apply to any Losses to the extent they arise primarily from the gross negligence or willful misconduct of any Seller Entity.


8.

Maintenance of Existence and Property

     
(a)

Maintenance of Existence. The Seller shall at all times do or cause to be done all things necessary to maintain each of the Seller Entities’ corporate or other entity existence and to obtain and, once obtained, maintain all Authorizations necessary to carry on its business and own its assets in each jurisdiction in which they carry on business or in which their assets are located.



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  (b)

Maintenance of Properties. The Seller shall at all times do or cause to be done all things necessary to maintain the Properties and any other properties of the Seller Entities in good standing, including paying or causing to be paid all Taxes owing in respect thereof, performing or causing to be performed all required assessment work thereon, paying or causing to be paid all claim, permit and license maintenances fees in respect thereof, paying or causing to be paid all rents and other payments in respect of leased properties forming a part thereof and otherwise maintaining the Properties and any other properties of the Seller Entities in accordance with Applicable Laws.

     
  (c)

Encumbrances. The Seller shall not, and shall ensure that the other Seller Entities do not, cause or allow to be registered or otherwise permit to exist any Encumbrance other than Permitted Encumbrances against any of the Collateral.

     
  (d)

Abandonment. The Seller shall not, and shall ensure that the other Seller Entities do not, abandon any patented or unpatented claims comprising part of the Properties or any other interest in the Properties unless it first complies with this Section 8(d) (provided that in the case of leased properties, the Owner shall comply with this Section 8(d) to the extent permitted under the applicable lease or sublease). If any Seller Entity wishes to abandon any of the patented or unpatented claims comprising part of the Properties or any other interest in the Properties (“Abandonment Property”), the Seller shall first give notice of such intention to the Buyer at least 90 days in advance of the proposed date of abandonment. If, not less than 10 days before the proposed date of abandonment, the Seller receives from the Buyer written notice that the Buyer wishes to acquire the Abandonment Property, the Seller shall, or shall cause the relevant Seller Entity to, without additional consideration, convey the Abandonment Property in good standing by quit claim deed, without warranty, to the Buyer or an assignee thereof, and shall thereafter have no further obligation to maintain title to the Abandonment Property. If the Buyer does not give such notice to the Seller within the prescribed period of time, the relevant Seller Entity may abandon the Abandonment Property and shall thereafter have no further obligation to maintain title to the Abandonment Property.

     
  (e)

Right of Buyer to Cure Defects. The Buyer may undertake such investigation of the title and status of the Midas Mine, Fire Creek Property and any other properties of the Seller Entities as it shall deem necessary. If that investigation should reveal defects in the title, the Seller shall forthwith proceed to cure such title defects to the satisfaction of the Buyer. If the Seller fails to do so: (i) the Buyer may proceed to cure such title defects; (ii) any costs and expenses incurred (including attorney’s fees and costs) by the Buyer shall be promptly reimbursed by the Seller; and (iii) the Buyer may lien such properties for such amounts until the Seller reimburses the Buyer in full.


9.

Management of Mining Operations

     
(a)

Performance of Mining Operations. The Seller shall ensure that all exploration, construction, development and mining operations and other activities in respect of the Properties will be performed in a commercially reasonable manner in compliance with Applicable Laws, Authorizations and Other Rights, and in accordance with good mining, processing, engineering and environmental practices prevailing in the industry. The Seller shall cause the other Seller Entities to use all commercially reasonable and lawful efforts to obtain and, once obtained, maintain all Authorizations necessary to commence and continue development and mining operations on the Properties.



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  (b)

Maintenance of Mining Rights. The Seller shall cause the other Seller Entities to use all commercially reasonable and lawful efforts to maintain and apply for and obtain any and all available renewals and extensions of the Properties, Authorizations, Other Rights and any and all other necessary rights in respect of the Midas Mine, the Fire Creek Project, and, other than as would not constitute an Event of Default, not abandon any of the Midas Mine or the Fire Creek Project (including Utility Commitments) or allow or permit any of the Properties, Authorizations, Other Rights or such other necessary rights referred to above to terminate or lapse.

     
  (c)

Compliance with Applicable Laws. The Seller shall, and shall cause the other Seller Entities to, and shall cause all operations and activities conducted at, on or in respect of the Midas Mine and the Fire Creek Project to, comply in all material respects with all Applicable Laws, all Authorizations and the terms and conditions of Other Rights.

     
  (d)

Reclamation Obligations. The Seller shall, and shall cause each other Seller Entity to, timely and fully perform, pay and observe, or cause to be performed, observed and paid, in all material respects, any and all liabilities and obligations required by any Applicable Laws, Authorizations or the terms and conditions of Other Rights or by any Governmental Body for the reclamation, restoration or closure of any facility or land used in connection with the Seller Entities’ operations or activities at, on or in respect of the Midas Mine and the Fire Creek Project or required under this Agreement. The Seller shall not, and shall ensure that the other Seller Entities do not, undertake, cause, suffer, or permit any condition or activity at, on or in the vicinity of the Properties which constitutes or results in a material violation of Environmental Laws. If any Seller Entity (i) fails to comply with Environmental Laws in any material respect or (ii) undertakes any activity giving rise to liability under Environmental Laws (except as permitted or authorized by any Authorization or by Applicable Law), the Seller shall promptly remedy and correct such failure to comply, satisfy such liability and otherwise take all necessary or desirable action to cure (whether through remediation, payment of penalties or otherwise) such non-compliance or liability and satisfy all obligations in connection therewith.


10.

Royalty and Stream Interests

     
(a)

General Prohibition. The Seller shall not, and shall not permit any other Seller Entity to, without the Buyer’s prior written consent, create, grant, convey or otherwise agree to any royalty or stream interest, or enter into any agreements that are similar to a royalty agreement or a stream agreement, in each case in respect of any mineral interests of the Seller Entities, whether owned now or hereafter acquired, except as expressly permitted by and subject to this Section 10.

     
(b)

Right of First Refusal. If any Seller Entity receives a bona fide written offer (a “Third Party Offer”) from any Person dealing at arm’s length with the Seller Entities to purchase a new or existing royalty or stream interest (the “Offered Interest”) in any mineral interests of the Seller Entities, whether owned now or hereafter acquired, for cash consideration, which such Seller Entity either wishes to accept or has accepted conditional on and subject to the Buyer’s right of first refusal pursuant to this Section 10, the Seller shall promptly give notice of the Third Party Offer (the “Notice of Offer”) to the Buyer and comply with this Section 10. The Notice of Offer must contain a copy of the Third Party Offer, disclose the identity and address of the Person making the Third Party Offer (the “Third Party Offeror”) and provide reasonably sufficient evidence to establish that the Third Party Offeror has the power and capacity, including the financial capacity, to complete the purchase of the Offered Interest. Upon the Notice of Offer being given, the Buyer will have the right to purchase all, but not less than all, of the Offered Interest at the same price and upon the same terms and conditions as are contained in the Third Party Offer.



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  (c)

Determination of Price. If the Offered Interest is being offered for sale to the Third Party Offeror together with or in conjunction with other unrelated assets of the Seller Entities, the Buyer will be entitled to purchase only the Offered Interest and the Notice of Offer must specify the Seller’s good faith estimate of the cash being offered by the Third Party Offeror for the Offered Interest. If the Buyer does not agree with the Seller’s estimate, the value of the cash being offered for the Offered Interest shall be conclusively determined by a firm of qualified mineral valuators jointly appointed (and the cost of which shall be borne equally) by the Seller and the Buyer, each acting reasonably. Such determination shall be binding upon the Seller Entities and the Buyer. All time periods referred to in this Section 10 shall be extended by the time taken to obtain such determination.

     
  (d)

Exercise and Closing. If the Buyer desires to exercise its right to purchase all of the Offered Interest as contemplated by Section 10(b), it will give notice of exercise (the “ROFR Exercise Notice”) to the Seller within 30 Business Days of having been given the Notice of Offer. The giving of the ROFR Exercise Notice shall constitute a legally binding agreement between the Buyer and the relevant Seller Entity for the sale by such Seller Entity to the Buyer of the Offered Interest in accordance with the terms set out in the Third Party Offer, which sale transaction will be completed (subject to entry into a royalty or stream agreement reflecting the Offered Interest and such other customary industry terms in form and substance satisfactory to the Buyer) on the date therein provided (or on such other date as the Buyer and such Seller Entity may agree) by delivery of the Offered Interest (including such agreement referred to above) by such Seller Entity to the Buyer with title, free and clear of all Encumbrances arising on or after the date such Seller Entity received such Third Party Offer, against payment by the Buyer to such Seller Entity of the cash consideration by bank wire transfer to the account designated by such Seller Entity. If, at the time of completion, any portion of the Offered Interest is subject to any Encumbrance arising on or after the date such Seller Entity received such Third Party Offer, the Buyer will be entitled to deduct from the purchase money to be paid to such Seller Entity the amount required to discharge such Encumbrance and will apply such amount to discharge such Encumbrance, on behalf of such Seller Entity.

     
  (e)

No Exercise. If the Buyer does not give the ROFR Exercise Notice in accordance with the provisions of Section 10(d), the right of the Buyer to purchase the Offered Interest will terminate and the Seller Entities may sell all, but not less than all, of the Offered Interest to the Third Party Offeror in accordance with the terms of the Third Party Offer at any time within 50 Business Days after the expiry of the 30 Business Day period specified in Section 10(d). If the sale of the Offered Interest is not completed within such 50 Business Day period on such terms, the rights of the Parties pursuant to this Section 10 will again take effect with respect thereto.

     
  (f)

Exceptions. The restrictions set out in this Section 10 shall not apply to: (i) any royalties or levies imposed by any Governmental Body on mineral production; (ii) any royalty interests purchased by or granted to a Seller Entity (including the purchase or buy-back of any royalty interest previously granted by a Seller Entity); (iii) any royalty interests granted by a Seller Entity pursuant to a bona fide option or joint venture agreement in respect of the Properties or other mineral interests of such Seller Entity (provided the entering into of such agreement is not prohibited by the terms of the Transaction Documents and that any such royalty interests shall be junior in priority to any royalties owned by the Buyer or any of its Affiliates on the Properties); or (iv) any royalty or stream interest granted by a Seller Entity after a Change of Control of the Seller in respect of mineral interests of the Seller Entities acquired after such Change of Control (for greater certainty, the restrictions set out in this Section 10 shall continue to apply to mineral interests of the Seller Entities owned as at the time of such Change of Control).



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  (g)

Survival. For greater certainty, this Section 10 shall, pursuant to Section 19(c), survive termination of this Agreement.


11.

Financing Matters

     
(a)

Compliance with Facility Agreement. So long as the Loan or any Permitted Refinancing Indebtedness is outstanding, the Seller shall, and shall cause each of the other Seller Entities to, comply with all of the covenants in the Facility Agreement (or any agreement governing any Permitted Refinancing Indebtedness) as in effect from time to time (as such covenants may be amended, supplemented or added to from time to time), without any waiver thereof and without regard to any amendment thereof which has the effect of making such provisions less restrictive on the Seller Entities, except as consented to from time to time by the Buyer.

     
(b)

Refinancing of Loan. The Seller will not, and will cause the other Seller Entities not to, refinance, replace, repurchase or enter into any other transaction the effect of which would be to repay the Loan and replace it with other Indebtedness, except Permitted Refinancing Indebtedness. For greater certainty, this provision will not apply to restrict repayments of the Loan in accordance with its terms if such repayment or prepayment is not effected with the proceeds of additional Indebtedness of any Seller Entity.

     
(c)

Limitation on Indebtedness. The Seller shall ensure that none of the Seller Entities shall incur any Indebtedness (other than Permitted Refinancing Indebtedness) except: (i) Indebtedness solely for ordinary course working capital purposes in an aggregate maximum amount at any time outstanding not to exceed [redacted for proprietary reasons] (“Permitted Working Capital Debt”); (ii) [redacted for proprietary reasons] and (iii) bonds, letters of credit, guarantees and other instruments or arrangements securing or guaranteeing performance of the Seller Entities’ obligations in respect of the reclamation, restoration or closure of any facility or land used in connection with the Seller Entities’ operations or activities to the extent required by Applicable Law. The Permitted Working Capital Debt may be secured against the Collateral provided that the security thereunder is expressly subordinated to the security provided under the Security Agreements pursuant to an intercreditor agreement between the Persons extending such Indebtedness and the Buyer providing for such subordination and other customary provisions, all in form and substance satisfactory to the Buyer (any such security, and the “Permitted Working Capital Security”).

     
(d)

Amendments to Facility Documents. The Seller agrees that (i) no Facility Documents (as defined in the Intercreditor Agreement) to which any Seller Entity is a party will be amended, modified, replaced or supplemented in such manner as to make the terms of such Facility Documents less favourable to any Seller Entity in any material respect (including, for greater certainty, by increasing the interest rate or fees payable thereunder, shortening the term to maturity thereof, imposing increased amortization requirements or imposing additional (or more restrictive) covenants thereunder) unless such amendment, modification, replacement or supplement is consented to by the Buyer in writing, and (ii) none of the Seller Entities shall take any action under or in connection with any of the Facility Documents that would require or result in payment by any of them of any amount in advance of any scheduled or mandatory payment, redemption or prepayment date, including purchasing the Term Notes by tender or private contract (except for refinancing the Facility Obligations (as defined in the Intercreditor Agreement) with Permitted Refinancing Indebtedness), unless such action is consented to by the Buyer in writing.



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12.

Insurance Matters

     
(a)

Maintenance of Insurance. The Seller shall, and shall cause the other Seller Entities to, maintain with reputable insurance companies insurance with respect to the Midas Mine, Fire Creek Project and any other mineral projects of the Seller Entities and the operations conducted at, on and in respect thereof against such casualties and contingencies and of such types and in such amounts as is customary in the case of similar operations in the United States of America. Without limiting the foregoing, such insurance shall include workers compensation insurance in amounts required by Applicable Laws, and commercial general liability insurance in such amounts as will, in the Buyer’s reasonable judgment, adequately protect the Seller Entities, the Buyer, and the Properties and any other mineral projects of the Seller Entities from any Losses which may reasonably be expected to arise with respect to this Agreement or the Properties or any other mineral projects of the Seller Entities and that can be covered by commercial general liability insurance.

     
(b)

Shipment of Minerals. The Seller shall, and shall cause the other Seller Entities to, ensure that each shipment of Minerals is adequately insured in such amounts and with such coverage as is customary in the mining industry, until the time that risk of loss and damage for such Minerals is transferred to the purchaser.

     
(c)

Additional Insured. The Seller shall cause the Buyer to be named a loss payee (as its interests may appear) under all property insurance policies of the Seller Entities and as additional insured under all liability insurance policies of the Seller Entities.

     
(d)

Notice of Loss or Damage. The Seller shall promptly provide the Buyer with written notice of any material loss or damage suffered to any assets or property of the Seller Entities and whether it plans to make any insurance claim.


13.

Security Matters

     
(a)

Grant of Security Interest. The Seller shall, and shall cause each of the other Seller Entities to, grant to the Buyer a continuing security interest and a first priority lien on the Collateral, including all proceeds and products thereof, subject only to the Permitted Encumbrances, as security for the due and punctual performance by the Seller of the Delivery Obligations or, in the case of any other Seller Entity, its guarantee of the Delivery Obligations of the Seller. The Buyer’s security interest and lien on the Collateral shall be further evidenced by the Security Agreements and such other security documents as the Buyer may at any time reasonably request. The Security shall be effective from the Effective Date and continue until the Delivery Obligations have been satisfied in full, provided that, notwithstanding any other provisions of this Agreement, the Security provided by the Midas Entities shall only become effective upon completion of the Acquisition and for certainty will continue until the Delivery Obligations have been satisfied in full. Upon creating or acquiring any other new Subsidiary, the Seller shall cause such Subsidiary to provide Security in favour of the Buyer, in substantially the same form as the Security Agreements.



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  (b)

Renewal. The Seller shall cause the personal property registrations relating to the Security to be properly renewed under Applicable Law no later than three months before the expiry date thereof (if any) to ensure that, except as may be otherwise provided herein, at all times until the Final Delivery Date, the Security remains in full force and effect and duly registered and perfected under Applicable Law. The Seller shall provide evidence satisfactory to the Buyer of each such re-registration and renewal on or before the date that is three months before the expiry date of the Security, failing which the Buyer shall have the right (but not the obligation) to proceed with such renewal, and the Seller shall be responsible for all costs and fees related thereto and shall reimburse the Buyer for such amounts on demand.

     
  (c)

Further Assurances. Without limiting the foregoing, the Seller shall, and shall cause each of the other Seller Entities to, from time to time, at the cost and expense of the Seller Entities, promptly execute and deliver all further instruments and documents and take all further action that may be necessary or desirable or that the Buyer may reasonably request in order to perfect and protect any pledge, assignment, or security interest granted or purported to be granted by any Transaction Document or to enable the Buyer to exercise and enforce its rights and remedies under any Transaction Documents with respect to any Collateral. The Seller Entities each irrevocably make, constitute, and appoint the Buyer (and any of the Buyer’s officers, employees, or Agents' designated by the Buyer) as its true and lawful attorney with power, upon the failure or refusal of any Seller Entity to comply with its undertakings contained in this paragraph, to sign the name of such Seller Entity on any of the above described documents or on any other similar documents that need to be executed, recorded, and/or filed in order to perfect or continue the Buyer’s perfected security interest in the Collateral.


14.

Events of Default

     

Each of the events or circumstances set out in this Section 14 shall constitute an event of default (“Event of Default”):

     
(a)

Delivery Obligations. The Seller fails to deliver all or any portion of the Purchased Gold Ounces to the Buyer in accordance with the Delivery Obligations or to make any payment to the Buyer in accordance with the provisions of this Agreement.

     
(b)

Representations and Warranties; Reports; Certificates. Any representation or warranty made, or any report or certificate furnished to the Buyer, by any Seller Entity under or in connection with the Transaction Documents proves to have been incorrect or misleading in any material respect (or in any respect where such representation or warranty is subject to a materiality qualification) when made, deemed made or furnished (as applicable), and the facts or circumstances which made such representation or warranty incorrect or misleading shall remain unrectified for a period of 30 days from the earlier of: (a) the Buyer giving notice to the Seller, and (b) the Seller becoming aware that such representation or warranty is incorrect or misleading, unless such facts or circumstances are not capable of rectification in which event the default shall occur immediately.



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  (c)

Failure to Perform Certain Covenants. Failure by any Seller Entity to perform, comply with or observe any term, covenant or agreement contained in Sections 8(a), 8(b), 8(c) and 8(d) (Maintenance of Existence and Property) (provided that, in the case of Sections 8(b) and 8(d) only, this Section 14(c) shall not apply to any such failure with respect to the Other Properties, and in which case Section 14(d) shall apply), 10 (Royalty and Stream Interests), 11 (Financing Matters), 13 (Security Matters) or 20 (Restricted Transfer Rights of the Seller Entities).

         
  (d)

Failure to Perform Other Covenants. Any Seller Entity fails to perform, comply with or observe any term, covenant or agreement contained in any Transaction Document (other than those referred to above in Sections 14(a) to (c) above) and any such failure shall remain unremedied or unresolved for a period of 30 days from the earlier of: (a) the Buyer giving notice to the Seller, and (b) the Seller becoming aware of the failure to comply, unless such failure is not capable of remedy in which event the default shall occur immediately.

         
  (e)

Insolvency. (i) Any Seller Entity becomes Insolvent, or suffers or consents to or applies for the appointment of a receiver, trustee, custodian or liquidator of itself or any of its property, or is generally unable to or fails to pay its debts as they become due, or makes a general assignment for the benefit of creditors; (ii) any Seller Entity files a voluntary petition in bankruptcy, or seeks to effect a plan or other arrangement with creditors or any other relief under any Bankruptcy Code, or under any Applicable Law granting relief to debtors, whether now or hereafter in effect; (iii) any involuntary petition or proceeding pursuant to any Bankruptcy Code or any other Applicable Law relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against any Seller Entity and is not dismissed, stayed or vacated within 30 days thereafter; (iv) any Seller Entity files an answer admitting the jurisdiction of the court and the material allegations of any involuntary petition; (v) any Seller Entity is adjudicated bankrupt, or an order for relief is entered by any court of competent jurisdiction under any Bankruptcy Code or any other Applicable Law relating to bankruptcy, reorganization or other relief for debtors; (vi) any Seller Entity voluntarily ceases to conduct its business in the ordinary course or materially changes the nature of the business it carries on; or (vii) any Seller Entity takes any action authorizing or in furtherance of any of the foregoing.

         
  (f)

Liquidation. Any Seller Entity liquidates, winds up or dissolves (or suffers any liquidation, wind-up or dissolution), suspends its operations other than in the ordinary course of business, or takes any action authorizing or in furtherance of any of the foregoing.

         
  (g)

Cross Default. Any Seller Entity:

         
  (i)

fails:

         
  (A)

to make any payment of any principal, interest or premium in connection with the Loan or any other Indebtedness having an aggregate principal amount of more than the Threshold Amount (or its equivalent in another currency) when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue after the applicable notice or grace period, if any, specified in the agreement or instrument relating to such Indebtedness as of the date of such failure; or



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  (B)

to perform or observe any term, covenant or condition on its part to be performed or observed under any agreement or instrument relating to the Loan or any other Indebtedness having an aggregate principal amount of more than the Threshold Amount (or its equivalent in another currency), when required to be performed or observed, or any other event shall occur or condition shall exist under any such agreement or instrument, and such failure, event or condition shall continue after the later of 10 days from written notice of such failure, event or condition by the applicable counterparty or the Buyer or the applicable, notice or grace period, if any, specified in such agreement or instrument, if the effect of such failure, event or condition is to accelerate, or to permit the acceleration of, the maturity of such Indebtedness; or


  (ii)

is subject to a declaration that any Indebtedness referred to in Section 14(g)(i) is due and payable, or required to be prepaid (other than by a regularly scheduled required repayment), prior to the stated maturity thereof;

     
  (iii)

is subject to any facility or commitment available to it under the Facility Agreement or any other Indebtedness in an aggregate amount at any one time of not less than the Threshold Amount (or its equivalent in any other currency) being withdrawn, suspended or cancelled by reason of any default (however described) of any Seller Entity; or

     
  (iv)

fails to perform or observe any term, covenant or condition on its part to be performed or observed under any agreement or instrument relating to Indebtedness referred to in Section 14(g)(i) which would result in a Material Adverse Effect.


  (h)

Creditors’ Process. Either:

       
  (i)

a final Order for the payment of money in excess of the Threshold Amount (or its equivalent in another currency) which is not fully covered by third-party insurance is rendered against any Seller Entity; or

       
  (ii)

any non-monetary judgment or Order is rendered against any Seller Entity which would constitute a Material Adverse Effect,

and in each case there shall be any period of 30 days during which such judgment or Order continues unsatisfied or during which a stay of enforcement of such judgment or Order, by reason of a pending appeal or otherwise, shall not be in effect.


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  (i)

Security Agreements.

         
  (i)

Any Seller Entity:

         
  (A)

contests in any manner the validity or enforceability of any of the Security Agreements; or

         
  (B)

denies that it has any further liability or obligation under any of the Security Agreements.


  (ii)

Any of the Security Agreements:

       
  (A)

for any reason, except to the extent permitted by the terms thereof, ceases to create a valid Encumbrance or the Encumbrance created thereby fails to rank in priority in the manner contemplated in the Security Agreements and the Intercreditor Agreement (other than by a direct act or omission of the Buyer), subject only to Permitted Encumbrances, in any of the Collateral purported to be covered thereby; or

       
  (B)

after delivery for any reason is revoked or invalidated, or otherwise ceases to be in full force and effect in any material respect.


  (j)

Unlawfulness. It is or becomes unlawful for any Seller Entity to perform any of its obligations under the Transaction Documents to which it is a party or any of the Security created or expressed to be created by the Transaction Documents ceases to be effective at any time at which such Security is intended to be effective.

     
  (k)

Repudiation. Any Seller Entity repudiates or rescinds any Transaction Document or purports to or evidences an intention to repudiate or rescind any Transaction Document.

     
  (l)

Authorizations. If any Authorization or Other Right is suspended, cancelled, revoked, forfeited, surrendered, refused renewal or terminated (whether in whole or in part) or otherwise is not, or ceases to be, in full force and effect, and the absence thereof would have a Material Adverse Effect.

     
  (m)

Major Damage. Any Seller Entity suffers material loss of or damage to its business, assets or operations (including any related infrastructure) which would have a Material Adverse Effect.

     
  (n)

Abandonment. Any material portion of the Midas Mine, the Fire Creek Project or the Collateral is lost, forfeited or abandoned and which would have a Material Adverse Effect.

     
  (o)

Expropriation. Any Governmental Body condemns, expropriates, seizes or appropriates any property which relates to or forms part of the Midas Mine, the Fire Creek Project or the Collateral and which would result in a Material Adverse Effect.

     
  (p)

Proceedings. There is any action, suit or proceeding against or affecting any Seller Entity before any court or by or before any Governmental Body which, if successful, could reasonably be expected to have a Material Adverse Effect, unless the action, suit, or proceeding is contested diligently and in good faith and, in circumstances where a lower court or tribunal has rendered a decision adverse to it, any Seller Entity, as applicable, is appealing such decision, and has provided a reserve in respect thereof satisfactory to the Buyer.



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  (q)

Change of Control. There shall occur a Change of Control of any of the Seller Entities, unless such Change of Control occurs pursuant to a Transfer consented to by the Buyer in accordance with Section 20, or the Seller shall become obligated to offer to purchase all of the Term Notes then outstanding as a result of a Change of Control (as defined in the Facility Agreement).

     
  (r)

Material Adverse Effect. Any event or circumstance occurs that has a Material Adverse Effect.


15.

Effect of Event of Default

     

Upon each occurrence of an Event of Default, and for so long as such Event of Default is continuing:

     
(a)

upon written notice to the Seller, and in addition to and not in substitution for any other remedies available to it hereunder or at law or in equity, the Buyer shall have the right to terminate the Seller’s obligation to deliver any further Purchased Gold Ounces (which shall not be less than all of the Purchased Gold Ounces not then delivered) if it so elects, and upon such election, the Default Amount shall become immediately due and payable by the Seller (it being acknowledged by the Seller that the Default Amount is intended to be a genuine pre-estimate of liquidated damages that would be suffered by the Buyer upon the occurrence of an Event of Default);

     
(b)

the Buyer shall be entitled to enforce its security under the Transaction Documents; and

     
(c)

the Buyer shall be entitled to such other rights and remedies as are available to it at law.


16.

Representations and Warranties of the Buyer

   

The Buyer, acknowledging that the Seller is entering into this Agreement in reliance thereon, hereby makes the representations and warranties to the Seller as set out in Schedule F.

   
17.

Representations and Warranties of the Seller

   

The Seller, acknowledging that the Buyer is entering into this Agreement in reliance thereon, hereby makes the representations and warranties to the Buyer: (i) as set out in Schedule G; and (ii) as set out in Article IV of the Acquisition Agreement, in each case to the extent relating to the Midas Entities or their properties and assets, as if such representations and warranties were set forth in this Agreement. The representations and warranties in Schedule G shall be deemed to be repeated by the Seller: (a) as of the Effective Date; and (b) as of the date of each Annual Compliance Certificate, except to the extent that on or prior to such date the Seller shall have advised the Buyer in writing of a variation in any such representation or warranty and the Buyer has approved such variation.



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18.

Indemnities

     

The Seller agrees to indemnify and save the Buyer, and its Affiliates and the directors, officers, employees and Agents' of the foregoing harmless from and against any and all Losses suffered or incurred by any of them as a result of, in respect of, or arising as a consequence of the Buyer entering into the Transaction Documents and the matters contemplated therein, including:

     
(a)

any breach or inaccuracy of any representation or warranty of the Seller Entities contained in this Agreement or the other Transaction Documents, including the representations and warranties set forth in Schedules G hereto, or in any document, instrument or agreement delivered pursuant hereto or thereto;

     
(b)

any breach, including breach due to non-performance, by the Seller Entities of any covenant or agreement to be performed by any of the Seller Entities contained in this Agreement or the other Transaction Documents or in any document, instrument or agreement delivered pursuant hereto or thereto;

     
(c)

the development or operation of the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities;

     
(d)

the failure of any of the Seller Entities to comply with any Applicable Law, including any Applicable Law relating to environmental matters and reclamation obligations, with respect to the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities;

     
(e)

the physical environmental condition of the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities and matters of health and safety related thereto or any action or claim brought with respect thereto (including conditions arising before the date of this Agreement); and

     
(f)

any actual or threatened withdrawal by any Governmental Body of any Authorization under Environmental Laws which is necessary for the construction or operation of the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities, or any actual or threatened challenge by any Person to any Authorization under Environmental Laws which is necessary for the development or operation of the Midas Mine, the Fire Creek Project or any other mineral project of the Seller Entities,


provided that the foregoing shall not apply to any Losses to the extent they arise primarily from the gross negligence or willful misconduct of such indemnified persons. For greater certainty, this Section 18 shall, pursuant to Section 19(c), survive termination of this Agreement.

     
19.

Term

     
(a)

Term. The term of this Agreement shall commence on the date of this Agreement and, unless terminated earlier pursuant to Section 19(b), shall terminate on the Final Delivery Date.

     
(b)

Termination. The Buyer shall have the right to terminate this Agreement upon written notice of termination to the other parties at or after 12:01 a.m. (Toronto time) on February 12, 2014, if the Acquisition has not yet been completed, whereupon the Seller shall immediately return the Purchase Price in full to the Buyer, without interest or setoff or counterclaim, and thereafter no Party shall have any further obligation to the other Parties under this Agreement (other than in connection with any antecedent breach).



- 34 -

  (c)

Survival. Notwithstanding the termination of this Agreement pursuant to Section 19(a) or (b), Sections 1 (to the extent applicable to other surviving provisions), 2, 5, 7 (in respect of periods ending on or prior to the Final Delivery Date), 10, 18, 22, 23 and 24 shall survive indefinitely.


20.

Restricted Transfer Rights of the Seller Entities

       
(a)

Prohibited Transfers. The following Transfers are prohibited, in each case unless the Buyer gives its prior written consent to such Transfer (which consent may be withheld for any reason):

       
(i)

the Seller may not Transfer, in whole or in part, its rights and obligations under this Agreement, the Collateral or its shares of Klondex BC Holdco;

       
(ii)

Klondex BC Holdco may not Transfer, in whole or in part, its rights and obligations under this Agreement, the Collateral or its shares of Klondex Holdings;

       
(iii)

Klondex Holdings may not Transfer, in whole or in part, its rights and obligations under this Agreement, the Collateral, its shares of the Fire Creek Owner or, after completion of the Acquisition, its shares of Midas Holdings;

       
(iv)

Midas Holdings may not Transfer, in whole or in part, its rights and obligations under this Agreement, the Collateral or its shares of the Midas Owner;

       
(v)

the Midas Owner may not Transfer, in whole or in part, its rights and obligations under this Agreement or the Collateral; and

       
(vi)

the Fire Creek Owner may not Transfer, in whole or in part, its rights and obligations under this Agreement or the Collateral.


  (b)

Transfers of Interests in Seller. Notwithstanding any other provision of this Agreement, neither (i) an amalgamation, merger or consolidation of the Seller with or into another body corporate, including by way of a plan of arrangement, nor (ii) a transfer of shares of the Seller, including a transfer of all of the shares pursuant to a takeover bid and subsequent acquisition transaction (including a compulsory acquisition) or a plan of arrangement, is a Transfer to which this Section 20 applies; provided, however, that in the case of clause (i) any successor entity to the Seller shall have acknowledged in writing to the Buyer that it is bound by this Agreement.

     
  (c)

Effect of Prohibited Transfer. Any Transfer made in violation of this Section 20 shall be null and void and of no force or effect whatsoever.


21.

Transfer Rights of the Buyer

     
(a)

Transfers. The Buyer shall have the right to Transfer or encumber, in whole or in part, its rights and obligations under this Agreement to any Person, without the consent of any Seller Entity, upon the delivery of notice of such Transfer to the Seller. In such a case, provided that such Person has agreed to be bound by such Transferred obligations under this Agreement, the Buyer, shall be released from such Transferred obligations under this Agreement.



- 35 -

  (b)

Encumbrances. Notwithstanding anything in this Agreement, the Buyer shall have the right to Transfer by way of Encumbrance, in whole or in part, its rights and obligations under this Agreement to one or more lenders providing financing to the Buyer or any of its Affiliates without notice to, or the consent of, any Seller Entity. If such transferee enforces such Encumbrance, it will provide notice to the Seller and upon delivery of such notice, which notice shall confirm that such transferee agrees to be bound by such Transferred obligations under this Agreement, such transferee shall become a party to this Agreement with all of the rights and obligations of the Buyer.


22.

Governing Law

   

This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein. Each of the Parties irrevocably submits to the non-exclusive jurisdiction of the courts of the Province of Ontario.

   
23.

Notices

   

Any notice or other communication required or permitted to be given hereunder shall be in writing and shall be sent or delivered to the respective Parties at their respective addresses, facsimile numbers or e-mail addresses set forth below (or at or to such other address, facsimile, number or e-mail address as shall be designated by any Party in a written notice to the other Parties):

If to the Seller:

Klondex Mines Ltd.
Suite 600-595 Howe Street
Vancouver BC V6C 2T5

Attention:        Paul Huet
Fax Number:     604.662.3904
Email:                phuet@klondexmines.com

with a copy (which shall not constitute notice) to:

Bennett Jones LLP
3400 One First Canadian Place
PO Box 130
Toronto ON M5X 1A4

Attention:        Abbas Ali Khan
Facsimile:         416.863.1716
Email:                alikhana@bennettjones.com


- 36 -

If to the Buyer:

Franco-Nevada GLW Holdings Corp.
c/o Franco-Nevada Corporation
199 Bay Street, Suite 2000
P.O. Box 285
Commerce Court Postal Station
Toronto, Ontario
Canada M5L 1G9

Attention:        Chief Legal Officer
Fax Number:    (416) 306-6330
Email:                hong@franco-nevada.com

Any notice and communications shall be effective:

  (a)

if delivered by hand, sent by certified or registered mail or sent by an overnight courier service, when received; and, provided that if such date is a day other than a Business Day, where the recipient Party is located, then such notice shall be deemed to have been given and received on the first Business Day, where the recipient Party is located, following the date of such delivery; and

     
  (b)

if sent by facsimile or e-mail transmission and successfully transmitted before 5:00 p.m. on a Business Day, where the recipient Party is located, then on that Business Day, and if transmitted after 5:00 p.m. on that day or on a day that is not a Business Day, then on the first Business Day, where the recipient Party is located, following the date of transmission.


24.

General Provisions

     
(a)

Further Assurances. Each Party shall execute all such further instruments and documents and shall take all such further actions as may be necessary to effect the transactions contemplated herein, in each case at the cost and expense of the Party requesting such further instrument, document or action, unless expressly indicated otherwise.

     
(b)

Obligations of Seller Entities. The Seller agrees to take all action necessary to cause each and every other Seller Entity to observe, comply with and perform its covenants and obligations in this Agreement. To the extent that any covenants or obligations in this Agreement are stated to be covenants or obligations of the Seller Entities or any of them, and a Seller Entity is not a party to this Agreement (including any Person that becomes a Seller Entity after the date of this Agreement), the Seller shall take all action necessary to cause such non-party Seller Entity to observe, comply with and perform such covenants or obligations, including causing such non-party Seller Entity to agree in writing in favour of the Buyer to be bound by this Agreement.

     
(c)

Confidentiality. The Buyer shall not, without the express written consent of the Seller, which consent shall not be unreasonably withheld, disclose any data or information concerning the operations of the Seller Entities obtained in connection with the Transaction Documents which is not already in the public domain (the “Confidential Information”); provided, however, the Buyer may disclose Confidential Information without the consent of the Seller: (i) if required by Applicable Law or requested by a Government Body having jurisdiction over the Buyer or its Affiliates; (ii) to the Buyer’s Affiliates and to any representatives, consultants or advisers of the Buyer or its Affiliates for the purpose of providing services to the Buyer or its Affiliates; and (iii) to any Person to whom the Buyer, in good faith, anticipates Transferring an interest in this Agreement as contemplated by Section 21(a) or 21(b) and such Person’s Affiliates and the representatives, consultants and advisers of such Person or its Affiliates. In the case of disclosure pursuant to clause (ii) or (iii), the Buyer shall be responsible to ensure that the recipient of the Confidential Information does not disclose the Confidential Information to the same extent as if it were bound by the same non-disclosure obligations of the Buyer hereunder. Notwithstanding the foregoing, the Buyer shall not be restricted from disclosing the terms of this Agreement and deliveries of Refined Gold hereunder. For greater certainty, the Buyer shall be entitled to disclose publicly data or information concerning the operations of the Seller Entities, without the consent of the Seller, once such information has been publicly disclosed by any of the Seller Entities.



- 37 -

  (d)

No Partnership. Nothing herein shall be construed to create, expressly or by implication, a joint venture, agency relationship, fiduciary relationship, mining partnership, commercial partnership or other partnership relationship between the Parties.

     
  (e)

Severability. If any provision of this Agreement is wholly or partially invalid, this Agreement shall be interpreted as if the invalid provision had not been a part hereof so that the invalidity shall not affect the validity of the remainder of this Agreement which shall be construed as if this Agreement had been executed without the invalid portion.

     
  (f)

Rate of Interest. The Parties do not intend that the purchase of the Purchased Gold Ounces be in the nature of a loan, but, if it were so characterized by an arbitrator, court or tribunal of competent jurisdiction, the Parties agree that the return to the Buyer, whether for interest, fees or otherwise, not exceed the maximum amount permitted by Applicable Law. Accordingly, if such arbitrator, court or tribunal should rule that: (i) the purchase of the Purchase Gold Ounces is of the nature of or is deemed to be a loan; and (ii) a portion of the total return to the Buyer is of the nature of or is deemed to be interest, and the portion of the total return, for deemed interest, fees or otherwise would, but for this provision, exceed the amount of return permitted under Applicable Law, then the delivery schedule for the aggregate quantity of Refined Gold remaining deliverable shall automatically be extended such that the amount of return does not exceed the maximum amount permitted under Applicable Law, and this Agreement shall not be terminated solely as a result of such violation.

     
  (g)

Entire Agreement. This Agreement and the other Transaction Documents constitute the entire agreement among the Parties pertaining to the subject matter hereof and thereof and supersede all prior agreements, negotiations, discussions and understandings, written or oral, among the Parties. The Seller and the Buyer agree that the confirmation letter dated December 5, 2013 between the Seller and the Buyer is hereby terminated with effect from the date of this Agreement.

     
  (h)

Amendments. This Agreement may not be changed, amended or modified in any manner, except pursuant to an instrument in writing signed on behalf of each of the Parties.



- 38 -

  (i)

Waiver. The failure by any Party to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision unless such waiver is acknowledged in writing, nor shall such failure affect the validity of this Agreement or any part thereof or the right of a Party to enforce each and every provision. No waiver of a breach of this Agreement shall be held to be a waiver of any other or subsequent breach.

     
  (j)

Specific Performance. Each of the Parties acknowledges that any breach of this Agreement may cause the other Parties irreparable harm for which damages are not an adequate remedy. The Parties agree that, in the event of any such breach, in addition to other remedies at law or in equity that a Party may have, a Party shall be entitled to seek specific performance.

     
  (k)

No Beneficiaries. This Agreement is intended for the benefit of the Parties and their respective successors and permitted assigns and, except for the indemnified Persons referred to in Section 18, is not for the benefit of, nor may any provision in this Agreement be enforced by, any other Person. With respect to any indemnified Person who is not a party to this Agreement, the Buyer shall obtain and hold the rights and benefits of Section 18 in trust for and on behalf of such indemnified Person.

     
  (l)

Costs and Expenses. Each of the Parties shall be responsible for paying all costs and expenses incurred by them, respectively, in connection with the negotiation and preparation of this Agreement and the related Transaction Documents.

     
  (m)

Counterparts. This Agreement may be executed in one or more counterparts and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier or electronic format shall be effective as delivery of a manually executed counterpart of this Agreement.

[Signature page follows.]


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

KLONDEX MINES LTD.

 

  By: (signed) Paul Huet
    Paul Huet
    President and Chief Executive Officer

 

FRANCO-NEVADA GLW HOLDINGS CORP.

 

  By: (signed) David Harquail
    David Harquail
    President and Chief Executive Officer


SCHEDULE A

DESCRIPTION OF MIDAS PROPERTY

Title to Properties

(i)

Fee Properties

The real property and property rights, situated in Elko County, Nevada, which is more particularly described as:

Township 38 North, Range 46 East, MDM, APN 004-250-0003
             approx. 40.9 acres owned by Newmont USA Limited
Section 2: NW4NW4

Township 39 North, Range 46 East, MDM, APN 004-260-03
            Surface and mineral estate (approximately 840 acres)
Section 9: E2NE4
Section 10: W2NW4, SW4
Section 22: E2N W4, SE4
Section 27: NE4, NE4NW4
Section 28: W2NW4
         Surface estate only (approximately 1.019 acres, commonly referred to as the Buckingham Lands)
Section 9: W2NE4, E2NW4
Section 15: E2W2, W2E2
Section 22: NE4
Section 28: W2SE4, E2SW4
Section 33: NE4
Section 34: SW4NW4, Lot 1

Midas Town site Lots

Lot No. Block No. Assessor's Parcel No.
6-7 I (Gold Circle)
03-523-03-2
8 03-523-02-4
11-12 Q (Gold Circle) 03-526-01-9
1 S (Gold Circle)
03-521-05-1
2 03-521-04-4
1 W (Gold Circle)
03-513-03-3
3-16 03-513-01-7

Patented Mining Claims

1



Patent Name M.S. No. Patent No. Assessor Parcel No.
Elko Prince Annex Fraction 4034







314565







0PM- 314-056







Elko Prince No. 1
Elko Prince No. 2
Elko Prince No. 4 Fraction
Todd Fraction
Hanks Fraction
Little Willie Fraction
Merle
June Bell
June Belle Fraction
   Water Witch No. 1 (E. Portion) 4192 567990
004-26C-004
   Water Witch No. 2 (E. Portion) 004-26C-008
Water Witch No. 3 0PM-567-099

Water Witch No. 4
Water Witch Fraction
Water Witch No. 1 (Parcel 1) 004-26C-001
Water Witch No. 1 (Parcel 2) 004-26C-002
Water Witch No. 1 (Parcel 3) 004-26C-003
Water Witch No. 2 (Parcel 4) 004-26C-005
Water Witch No. 2 (Parcel 5) 004-26C-006
Water Witch No. 2 (Parcel 6) 004-26C-007
Ripsaw No. 2 3991 298366 0PM-298-036
Gold Crown 3738 256016 0PM-256-001
Oversight Fraction (Portion)
Banner 0PM-560-016
Gift No. 1
Oversight Fraction (Portion) 0PM-060-016
Gift No. 2
Rabbit's Foot 0PM-256-006
Banner Fraction
Wedge 0PM-668-021
Old Judge No. 1 4327 668211
Sleeping Beauty 4666 1054830
0PM-373-058







Poor Man
Orphan Boy
Pan Handle
Pan Handle No. 2
Red Top
Orphan Boy No. 2
Little Dot
Sunset Fraction  4667 1037358
Hardscrabble No. 1 4356 827131 0PM-827-013

Hardscrabble No. 2
Hardscrabble Fraction

2



(ii)

Unpatented Mining Claims



Claim Name
Book & Page or
Document No.

BLM Serial No.
ACME 41 89 27590
ACME NO. 1 41 279 27591
ACME NO. 2 42 165 27592
ACME NO. 3 42 166 27593
DOT LODE 43 483 27594
DOT LODE #2 135 551 27596
DOT LODE NO. 4 100 523 27597
MARTY 366 156 218384
DOT LODE #1 472 575 321676
MIDAS 110 838 347 687827
MIDAS NO. 13 838 332 687851
MIDAS 14 838 333 687852
MIDAS 15 838 334 687853
MIDAS 16 838 335 687854
MIDAS 30 838 306 687857
MIDAS 33 838 462 687860
MIDAS NO. 34 838 463 687861
MIDAS 35 838 309 687862
MIDAS 36 838 310 687863
MIDAS 37 838 311 687864
MIDAS 38 838 312 687865
MIDAS 39 838 313 687866
MIDAS 40 838 314 687867
MIDAS 41 838 315 687868
MIDAS 81 838 345 687871
MIDAS 94 838 318 687872
MIDAS 96 838 464 687874
MIDAS 114 838 351 687876
MIDAS 115 838 352 687877
MIDAS 118 838 355 687878
MIDAS 119 838 356 687879
MIDAS 121 838 358 687880
MIDAS 122 838 359 687881
MIDAS 123 838 360 687882
MIDAS 124 838 361 687883
MIDAS 125 838 362 687884
MIDAS 126 838 363 687885
MIDAS 127 838 364 687886
MIDAS 128 838 365 687887

3




Claim Name
Book & Page or
Document No.

BLM Serial No.
MIDAS 129 838 366 687888
MIDAS 130 838 367 687889
MIDAS NO.131 838 466 687890
MIDAS NO.132 838 467 687891
MIDAS NO.133 838 468 687892
MIDAS NO.134 838 469 687893
MIDAS 135 838 470 687894
MIDAS 136 838 471 687895
MIDAS NO.137 838 472 687896
MIDAS 138 838 473 687897
MIDAS 139 838 474 687898
MIDAS 140 838 475 687899
MIDAS 141 838 476 687900
MIDAS 142 838 477 687901
MIDAS 143 838 478 687902
MIDAS 144 838 479 687903
MIDAS 146 838 481 687905
MIDAS 147 838 482 687906
MIDAS 148 838 483 687907
MIDAS 149 838 484 687908
MIDAS 150 838 485 687909
MIDAS 151 838 486 687910
MIDAS 152 838 487 687911
MIDAS 153 838 488 687912
MIDAS 154 838 814 687913
MIDAS 1R 840 886 692622
MIDAS 2R 840 887 692623
MIDAS 3R 840 888 692624
MIDAS 4R 840 889 692625
MIDAS 5R 840 890 692626
MIDAS 6R 840 891 692627
MIDAS 7R 840 892 692628
MIDAS 8R 840 893 692629
MIDAS 9R 840 894 692630
MIDAS 10R 840 895 692631
MIDAS NO.11R 840 896 692632
MIDAS 12R 840 897 692633
MIDAS 17R 840 898 692634
MIDAS 18R 840 899 692635
MIDAS 19R 840 900 692636
MIDAS 20R 840 901 692637

4




Claim Name
Book & Page or
Document No.

BLM Serial No.
MIDAS 21R 840 902 692638
MIDAS 22R 840 903 692639
MIDAS 23R 840 904 692640
MIDAS 25R 840 905 692641
MIDAS 27R 840 907 692643
MIDAS 28R 840 908 692644
MIDAS 109R 840 909 692645
MIDAS 111R 840 910 692646
MIDAS NO.112R 840 911 692647
MIDAS NO.113R 840 912 692648
MIDAS 116R 840 913 692649
MIDAS 117R 840 914 692650
MIDAS 155 853 939 699982
MIDAS 156 853 940 699983
MIDAS 157 853 941 699984
MIDAS 158 853 942 699985
MIDAS # 165 878 163 709778
MIDAS # 166 878 164 709779
MIDAS # 167 878 165 709780
MIDAS # 168 878 166 709781
MIDAS # 169 878 167 709782
MIDAS # 170 878 168 709783
MIDAS # 171 878 169 709784
MIDAS # 172 878 170 709785
MIDAS # 173 878 171 709786
MIDAS # 174 878 172 709787
AMSTERDAM # 1 879 937 710875
AMSTERDAM # 2 879 938 710876
AMSTERDAM # 3 879 939 710877
AMSTERDAM # 4 879 940 710878
AMSTERDAM # 5 879 941 710879
AMSTERDAM # 6 879 942 710880
AMSTERDAM # 7 879 943 710881
AMSTERDAM # 8 879 944 710882
AMSTERDAM # 9 879 945 710883
AMSTERDAM # 10 879 946 710884
AMSTERDAM # 11 879 947 710885
AMSTERDAM # 12 879 948 710886
AMSTERDAM # 13 879 949 710887
AMSTERDAM # 14 879 950 710888
AMSTERDAM # 15 879 951 710889

5




Claim Name
Book & Page or
Document No.

BLM Serial No.
AMSTERDAM # 16 879 952 710890
AMSTERDAM # 17 879 953 710891
AMSTERDAM # 18 879 954 710892
AMSTERDAM # 19 879 955 710893
AMSTERDAM # 20 879 956 710894
AMSTERDAM # 21 879 957 710895
AMSTERDAM # 22 879 958 710896
AMSTERDAM # 23 879 959 710897
AMSTERDAM # 24 879 960 710898
AMSTERDAM # 25 879 961 710899
AMSTERDAM # 26 879 962 710900
AMSTERDAM # 27 879 963 710901
AMSTERDAM # 28 879 964 710902
AMSTERDAM # 29 879 965 710903
AMSTERDAM # 30 879 966 710904
AMSTERDAM # 31 879 967 710905
AMSTERDAM # 32 879 968 710906
AMSTERDAM # 33 879 969 710907
AMSTERDAM # 34 879 970 710908
AMSTERDAM # 35 879 971 710909
AMSTERDAM # 36 879 972 710910
AMSTERDAM # 37 879 973 710911
AMSTERDAM # 38 879 974 710912
AMSTERDAM # 39 879 975 710913
AMSTERDAM # 40 879 976 710914
AMSTERDAM # 41 879 977 710915
AMSTERDAM # 42 879 978 710916
AMSTERDAM # 43 879 979 710917
AMSTERDAM # 44 879 980 710918
AMSTERDAM # 45 879 981 710919
AMSTERDAM # 46 879 982 710920
AMSTERDAM # 47 879 983 710921
AMSTERDAM # 48 879 984 710922
AMSTERDAM # 49 879 985 710923
AMSTERDAM # 50 879 986 710924
AMSTERDAM # 51 879 987 710925
AMSTERDAM # 52 879 988 710926
AMSTERDAM # 53 879 989 710927
AMSTERDAM # 54 879 990 710928
AMSTERDAM # 55 879 991 710929
AMSTERDAM # 56 879 992 710930

6




Claim Name
Book & Page or
Document No.

BLM Serial No.
AMSTERDAM # 57 879 993 710931
AMSTERDAM # 58 879 994 710932
AMSTERDAM # 59 879 995 710933
AMSTERDAM # 60 879 996 710934
AMSTERDAM # 61 880 1 710935
AMSTERDAM # 62 880 2 710936
AMSTERDAM # 63 880 3 710937
AMSTERDAM # 64 880 4 710938
AMSTERDAM # 65 880 5 710939
AMSTERDAM # 66 880 6 710940
AMSTERDAM # 67 880 7 710941
AMSTERDAM # 68 880 8 710942
AMSTERDAM # 69 880 9 710943
AMSTERDAM # 70 880 10 710944
AMSTERDAM # 71 880 11 710945
AMSTERDAM # 72 880 12 710946
AMSTERDAM # 73 880 13 710947
AMSTERDAM # 74 880 14 710948
AMSTERDAM # 75 880 15 710949
AMSTERDAM # 76 880 16 710950
AMSTERDAM # 77 880 17 710951
AMSTERDAM # 78 880 18 710952
AMSTERDAM # 79 880 19 710953
AMSTERDAM # 80 880 20 710954
AMSTERDAM # 81 880 21 710955
AMSTERDAM # 82 880 22 710956
AMSTERDAM # 83 880 23 710957
AMSTERDAM # 84 880 24 710958
AMSTERDAM # 85 880 25 710959
AMSTERDAM # 86 880 26 710960
AMSTERDAM # 87 880 27 710961
AMSTERDAM # 88 880 28 710962
AMSTERDAM # 89 880 29 710963
AMSTERDAM # 90 880 30 710964
AMSTERDAM # 91 880 31 710965
AMSTERDAM # 92 880 32 710966
AMSTERDAM # 93 880 33 710967
AMSTERDAM # 94 880 34 710968
AMSTERDAM # 95 880 35 710969
AMSTERDAM # 96 880 36 710970
MIDAS # 181 881 86 712502

7




Claim Name
Book & Page or
Document No.

BLM Serial No.
MIDAS # 182 881 87 712503
MIDAS # 183 881 88 712504
MIDAS # 184 881 89 712505
MIDAS # 185 881 90 712506
MIDAS # 186 881 91 712507
MIDAS # 187 881 92 712508
MIDAS # 188 881 93 712509
MIDAS # 191 881 96 712512
MIDAS # 192 881 97 712513
MIDAS # 193 881 98 712514
MIDAS # 194 881 99 712515
MIDAS # 195 881 100 712516
MIDAS # 196 881 101 712517
MIDAS # 197 881 102 712518
MIDAS # 198 881 103 712519
MIDAS # 199 881 104 712520
MIDAS # 200 881 105 712521
MIDAS # 201 881 106 712522
MIDAS # 202 881 107 712523
MIDAS # 203 881 108 712524
MIDAS # 204 881 109 712525
MIDAS # 205 881 110 712526
MIDAS # 206 881 111 712527
MIDAS # 207 881 112 712528
MIDAS # 208 881 113 712529
MIDAS # 209 881 114 712530
MIDAS # 210 881 115 712531
MIDAS # 211 881 116 712532
MIDAS # 212 881 117 712533
MIDAS # 213 881 118 712534
MIDAS # 214 881 119 712535
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Claim Name
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22




Claim Name
Book & Page or
Document No.

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23




Claim Name
Book & Page or
Document No.

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24




Claim Name
Book & Page or
Document No.

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Claim Name
Book & Page or
Document No.

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Claim Name
Book & Page or
Document No.

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27




Claim Name
Book & Page or
Document No.

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28




Claim Name
Book & Page or
Document No.

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Claim Name
Book & Page or
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30




Claim Name
Book & Page or
Document No.

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31




Claim Name
Book & Page or
Document No.

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32




Claim Name
Book & Page or
Document No.

BLM Serial No.
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33




Claim Name
Book & Page or
Document No.

BLM Serial No.
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34




Claim Name
Book & Page or
Document No.

BLM Serial No.
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35




Claim Name

Book & Page or
Document No.

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MDS 29   537872 905345
MDS 30   537873 905346
MDS 31   537874 905347
MDS 32   537875 905348
MDS 33   537876 905349
MDS 34   537877 905350
MDS 35   537878 905351
MDS 36   537879 905352
MDS 37   537880 905353
MDS 38   537881 905354
MDS 39   537882 905355
MDS 40   537883 905356
MDS 41   537884 905357
MDS 42   537885 905358
MDS 43   537886 905359

36




Claim Name
Book & Page or
Document No.

BLM Serial No.
MDS 44   537887 905360
MDS 45   537888 905361
MDS 46   537889 905362
MDS 47   537890 905363
MDS 48   537891 905364
MDS 49   537892 905365
CAT 1   559184 933598
CAT 2   559185 933599
CAT 3   559186 933600
CAT 4   559187 933601
CAT 5   559188 933602
CAT 6   559189 933603
CAT 7   559190 933604
CAT 8   559191 933605
CAT 9   559192 933606
CAT 10   559193 933607
CAT 11   559194 933608
CAT 12   559195 933609
CAT 13   559196 933610
CAT 14   559197 933611
CAT 15   559198 933612
CAT 16   559199 933613
CAT 17   559200 933614
CAT 18   559201 933615
CAT 19   559202 933616
CAT 20   559203 933617
CAT 21   559204 933618
CAT 22   559205 933619
CAT 23   559206 933620
CAT 24   559207 933621
CAT 25   559208 933622
CAT 26   559209 933623
CAT 27   559210 933624
CAT 28   559211 933625
CAT 29   559212 933626
CAT 30   559213 933627
CAT 31   559214 933628
CAT 32   559215 933629
CAT 33   559216 933630
CAT 34   559217 933631
CAT 35   559218 933632

37




Claim Name
Book & Page or
Document No.

BLM Serial No.
CAT 36   559219 933633
CAT 37   559220 933634
CAT 38   559221 933635
CAT 39   559222 933636
CAT 40   559223 933637
CAT 41   559224 933638
CAT 42   559225 933639
CAT 43   559226 933640
CAT 44   559227 933641
CAT 45   559228 933642
CAT 46   559229 933643
CAT 47   559230 933644
CAT 48   559231 933645
CAT 49   559232 933646
CAT 50   559233 933647
CAT 51   559234 933648
CAT 52   559235 933649
CAT 53   559236 933650
CAT 54   559237 933651
CAT 55   559238 933652
CAT 56   559239 933653
CAT 57   559240 933654
CAT 58   559241 933655

(iii)

Leasehold Interests – Fee Property

BARRICK GOLD EXPLORATION INC. – Mining Sublease and Option dated April 2, 2007, by and between Barrick Gold Exploration Inc. and Newmont USA Limited, recorded as a memorandum as Document No. 571656 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on April 20, 2007, covering 50% mineral interest in 1,984.5 acres in portions of Sections 3, 9-12, 15-16, 20-21, 29, T39N-R46E; Sections 6, 7, 18, T39N-R47E; Sections 35-36, T40N-R46E, Elko County, Nevada and 100% mineral interest in 1,169.7 acres in portions of Sections 13, 23-26, 28, 29, 33, T39N-R46E; Sections 7, 18, T39N, R47E, Elko County, Nevada.

OXY USA INC. - Mining Lease and Agreement dated April 18, 2005, by and between Transamerica Minerals Company, a California corporation, as Owner (predecessor-in-interest to Oxy USA Inc.), and Newmont USA Limited, a Delaware corporation, recorded as a memorandum as Document No. 534181 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, and amended on December 21, 2006, covering 50% mineral interest in 3,560 acres in Sections 2, 9-12, 15-16, 20-21, 29, T39N, R46E; Sections 7, 18, T39N, R47E; Sections 17, 19, 21-22, 26-29, 33-36, T40N, R46E, Elko County, Nevada.

FRAZIER CREEK EXPLORATION CO. INC. - Lease of Estar, Redar and Laura Unpatented Lode Mining Claims and Sublease of Domenichelli Lease, dated July 1, 2000, by and between Frazer Creek Exploration Company, Inc., a Nevada corporation, and Franco-Nevada Mining Corporation, Inc., a Nevada corporation (predecessor-in-interest to Newmont Midas Operations Inc.), recorded as a memorandum as Document No. 467521 in Book 1, Pages 5290-5317 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on February 28, 2001. The Lease affects unpatented lode mining claims and agreements pertaining to lands situated in Sections 12 and 13, Township 39 North, Range 46 East, and in Sections 7, 18 and 19, Township 39 North, Range 47 East, MDM, Elko County, Nevada, covering 28 acres of fee land in Sections 12, 13, T39N, R46E, and Secs. 7, 18, 19, T39N, R47E, MDM, Elko County, Nevada.

38


DOMENICHELLI, RAMERIZ, WILLIAMS and FRAZER CREEK EXPLORATION CO. -Mining Lease dated August 1, 1990, by and between William and Rose Domenichelli, John Kenneth Domenichelli, William Melvin Domenichelli, Barbara Jean Rameriz and Ruth Ann Williams, as lessors, and Frazer Creek Exploration Company, Inc. a Nevada corporation, as lessee, recorded in short form version as Document No. 297863 in Book 735 at Pages 508-514 of the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, covering 28 acres of fee land in the E/2 NE/4 of Section 13, T39N, R46E, MDM, Elko County, Nevada.

Leasehold Interests – Unpatented mining claims

1.      Mining Lease by and between Clark Powell and his Associates and Romarco Nevada Inc., a Nevada corporation (predecessor-in-interest to Newmont Midas Operations Inc.), dated October 30, 1995. The Mining Lease affects the following unpatented lode mining claims situated in Sections 21 and 28, Township 39 North, Range 46 East, MDM, Elko County, Nevada:

    Recording Information  
  Claim Name Book Page BLM Serial Number
  King Midas 1095 890 105502
  King Midas No. 2 1095 891 105503
  Dixie 1095 892 105504
  Dixie No. 1 1095 893 105505
  Dixie No. 2 1095 894 105506
  Dixie No. 3 1095 895 105507
  H-2 1095 896 105509

2.       Lease of Estar, Redar and Laura Unpatented Lode Mining Claims and Sublease of Domenichelli Lease, dated July 1, 2000, by and between Frazer Creek Exploration Company, Inc., a Nevada corporation, and Franco-Nevada Mining Corporation, Inc., a Nevada corporation (predecessor-in-interest to Newmont Midas Operations Inc.), recorded as a memorandum as Document No. 467521 in Book 1, Pages 5290-5317 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on February 28, 2001. The Lease affects unpatented lode mining claims and agreements pertaining to lands situated in Sections 12 and 13, Township 39 North, Range 46 East, and in Sections 7, 18 and 19, Township 39 North, Range 47 East, MDM, Elko County, Nevada, covering the following unpatented lode mining claims and agreements pertaining to lands situated in Sections 12 and 13, Township 39 North, Range 46 East, and in Sections 7, 18 and 19, Township 39 North, Range 47 East, MDM, Elko County, Nevada:

39



  Recording Information  
Claim Name Book Page BLM Serial Number
Laura 6 510 423 354642
Laura 20 510 435 354655
REDAR 1 875 938 708819
REDAR 2 875 939 708820
REDAR 3 875 940 708821
REDAR 4 875 941 708822
REDAR 5 875 942 708823
ESTAR 1 875 943 708824
ESTAR 2 875 944 708825
ESTAR 3 875 945 708826
ESTAR 4 875 946 708827
ESTAR 5 875 947 708828
ESTAR 6 875 948 708829
ESTAR 7 912 400 722747
ESTAR 8 912 401 722748
ESTAR 9 912 402 722749
ESTAR 10 912 403 722750
ESTAR 11 912 404 722751
ESTAR 12 912 405 722752
ESTAR 13 912 406 722753
ESTAR 14 912 407 722754
ESTAR 15 912 408 722755
ESTAR 16 912 409 722756
ESTAR 17 912 410 722757
ESTAR 18 912 411 722758
ESTAR 19 912 412 722759

(iv)

Property Leases

1.      Mining Lease by and between Clark Powell and his Associates and Romarco Nevada, Inc., a Nevada corporation (predecessor-in-interest to Newmont Midas Operations Inc.), dated October 30, 1995. The Mining Lease affects the following unpatented lode mining claims situated in Sections 21 and 28, Township 39 North, Range 46 East, MDM, Elko County, Nevada:

    Recording Information  
  Claim Name Book Page BLM Serial Number
  King Midas 1095 890 105502
  King Midas No. 2 1095 891 105503
  Dixie 1095 892 105504
  Dixie No. 1 1095 893 105505
  Dixie No. 2 1095 894 105506
  Dixie No. 3 1095 895 105507
  H-2 1095 896 105509

2.      Lease of Estar, Redar and Laura Unpatented Lode Mining Claims and Sublease of Domenichelli Lease, dated July 1, 2000, by and between Frazer Creek Exploration Company, Inc., a Nevada corporation, and Franco-Nevada Mining Corporation, Inc., a Nevada corporation (predecessor-in-interest to Newmont Midas Operations Inc.), recorded as a memorandum as Document No. 467521 in Book 1, Pages 5290-5317 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on February 28, 2001. The Lease affects unpatented lode mining claims and agreements pertaining to lands situated in Sections 12 and 13, Township 39 North, Range 46 East, and in Sections 7, 18 and 19, Township 39 North, Range 47 East, MDM, Elko County, Nevada.

40


3.      Mining Lease dated August 1, 1990, by and between William and Rose Domenichelli, John Kenneth Domenichelli, William Melvin Domenichelli, Barbara Jean Rameriz and Ruth Ann Williams, as lessors, and Frazer Creek Exploration Company, Inc. a Nevada corporation, as lessee, recorded in short form version as Document No. 297863 in Book 735 at Pages 508-514 of the Official Records of the Elko County Recorder’s Office, Elko County, Nevada.

4.       Agreement Transferring Property Interests and Terminating Mining Lease With Option to Joint Venture, Quitclaim Deed and Grant of Royalty, dated August 11, 2000, by and between Frazer Creek Exploration Company, Inc., and Nevada corporation and Homestake Mining Company of California, a California corporation, recorded as Document No. 462327 in Book 0 at Pages 23222-23233 of the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, and on September 18, 2000. The terms of which the Laura 6 and 20 unpatented lode mining claims are subject to a two percent (2%) net smelter returns royalty and portions of the REDAR 3, 4 and 5, and ESTAR 1, 7, 8, 11, 18 and 19 unpatented lode mining claims are subject to a one percent (1%) net smelter returns royalty.

5.       Mining Lease and Agreement dated April 18, 2005, by and between Transamerica Minerals Company, a California corporation, as Owner (predecessor-in-interest to Oxy USA Inc.), and Newmont USA Limited, a Delaware corporation, recorded as a memorandum as Document No. 534181 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, and amended on December 21, 2006.

6.       Mining Sublease and Option dated April 2, 2007, by and between Barrick Gold Exploration Inc. and Newmont USA Limited, recorded as a memorandum as Document No. 571656 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on April 20, 2007.

7.       Land Lease Agreement dated March 26, 2012 by and between Newmont Midas Operations Inc., a Nevada corporation, as Lessor, and Southwestco Wireless LP, d/b/a Verizon Wireless, by Southwestco Wireless Inc., its managing partner, as Lessee, recorded as a memorandum as Document No. 654417 in the Official Records of the Elko County Recorder’s Office, Elko County, Nevada, on April 19, 2012.

Water Rights

All Water Rights and Certificates issued from Nevada Division of Water Resources have been issued to Newmont Midas Operations Inc.

Water Right Application number 60669 filed November 22, 1994, Certificate 16675 granted July 12, 2006.

Water Right Application number 61888 filed February 5, 1996, Certificate 18308 granted October 20, 2011.

Water Right Application number 62114 filed February 5, 1996, Certificate 15681 granted January 30, 2001.

Water Right Application number 62582 filed November 12, 1996, Proof of Beneficial Use due May 9, 2014.

Water Right Application number 65219 filed June 18, 1999, Certificate 18309 granted October 20, 2011.

41


Water Right Application number 65220 filed June 18, 1999, Certificate 18310 granted October 20, 2011.

Water Right Application number 65221 filed June 18, 1999, Certificate 18311 granted October 20, 2011.

Water Right Application number 68206 filed Nov 19, 2001, Certificate 18312 granted October 20, 2011.

Water Right Application number 75666 filed May 3, 2007, Proof of Beneficial Use due December 28, 2013.

Water Right Application number 76113 filed August 3, 2007, Proof of Beneficial Use due October 24, 2013.

Water Right Application number 76226 filed September 6, 2007, Proof of Beneficial Use due October 30, 2013.

Water Right Application number 76227 filed September 6, 2007, Proof of Beneficial Use due October 30, 2013.

Water Right Application number 76228 filed September 6, 2007, Proof of Beneficial Use due October 30, 2013.

Water Right Application number 79734E filed March 25, 2010, Proof of Completion filed May 6, 2011.

Water Right Application number 83248T; this is a temporary permit that will expire on December 2, 2015.

42


43


SCHEDULE B

DESCRIPTION OF FIRE CREEK PROPERTY

Title to Properties

484 Unpatented Lode Mining Claims Owned by Klondex Gold & Silver Mining Company

Located in Sections 2, 10, 14, 16, 20, 22, 24, 26, 28, 30, 31, 32, 34 and 36, T30N R47E; and Section 36, T31N R47E; MDM, Lander County, Nevada

BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC429292 WOOD TICK # 2   7/18/1987 144804;295;528
NMC429294 WOOD TICK # 4   7/18/1987 144806;295;530
NMC429296 WOOD TICK # 6   7/18/1987 144808;295;532
NMC429298 WOOD TICK # 8   7/18/1987 144810;295;534
NMC429300 WOOD TICK # 10   7/18/1987 144812;295;536
NMC429302 WOOD TICK # 12   7/18/1987 144814;295;538
NMC429304 WOOD TICK # 14   7/18/1987 144816;295;540
NMC429306 WOOD TICK # 16   7/18/1987 144818;295;542
NMC429308 WOOD TICK # 18   7/18/1987 144820;295;544
NMC429310 WOOD TICK # 20   7/18/1987 144822;295;546
NMC429312 WOOD TICK # 22   7/18/1987 144824;295;548
NMC429314 WOOD TICK # 24   7/19/1987 144826;295;550
NMC429316 WOOD TICK # 26   7/19/1987 144828;295;552
NMC429318 WOOD TICK # 28   7/18/1987 144830;295;554
NMC429320 WOOD TICK # 30   7/18/1987 144832;295;556
NMC429322 WOOD TICK # 32   7/19/1987 144834;295;558
NMC429324 WOOD TICK # 34   7/19/1987 144836;295;560
NMC429326 WOOD TICK # 36   7/19/1987 144838;295;562
NMC429328 WOOD TICK # 38   7/21/1987 144840;295;564
NMC429330 WOOD TICK # 40   7/21/1987 144842;295;566
NMC429332 WOOD TICK # 42   7/21/1987 144844;295;568
NMC429334 WOOD TICK # 44   7/21/1987 144846;295;570
NMC429336 WOOD TICK # 46   7/21/1987 144848;295;572
NMC429338 WOOD TICK # 48   7/21/1987 144850;295;574
NMC429340 WOOD TICK # 50   7/21/1987 144852;295;576
NMC429342 WOOD TICK # 52   7/21/1987 144854;295;578
         
NMC588642 G 1   1/23/1990 163499
NMC588643 G 2   1/23/1990 163500
NMC588644 G 3   1/23/1990 163501
NMC588645 G 4   1/23/1990 163502
NMC588646 G 5   1/23/1990 163503
NMC588647 G 6   1/23/1990 163504
NMC588648 G 7   1/23/1990 163505
NMC588649 G 8   1/23/1990 163506
NMC588650 G 9   1/23/1990 163507
NMC588651 G 10   1/23/1990 163508
NMC588652 G 11   1/23/1990 163509

1



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC588653 G 12   1/23/1990 163510
NMC588654 G 13   1/23/1990 163511
NMC588655 G 14   1/23/1990 163512
NMC588656 G 15   1/23/1990 163513
NMC588657 G 16   1/23/1990 163514
         
NMC636760 DEB # 2   12/13/1991 171442;403/94
NMC636762 DEB # 4   12/13/1991 171444;403/94
         
NMC642589 REVENGE 2   12/16/1991 172707
NMC642591 REVENGE 4   12/17/1991 172709
NMC642593 REVENGE 6   12/17/1991 172711
NMC642595 REVENGE 8   1/26/1992 172713
NMC642597 REVENGE 10   12/18/1991 172715
NMC642599 REVENGE 12   12/18/1991 172717
NMC642601 REVENGE 14   12/18/1991 172719
NMC642603 REVENGE 16   2/6/1992 172721
NMC642605 REVENGE 18   2/6/1992 172723
NMC642607 REVENGE 20   12/16/1991 172725
NMC642609 REVENGE 22   1/9/1992 172727
NMC642611 REVENGE 24   2/13/1992 172729
NMC642613 REVENGE 26   2/13/1992 172731
NMC642615 REVENGE 28   1/26/1992 172733
         
NMC654400 K 1   6/25/1992 176394
NMC654401 K 2   6/25/1992 176395
NMC654402 K 3   6/25/1992 176396
NMC654403 K 4   6/25/1992 176397
NMC654404 K 5   6/25/1992 176398
NMC654405 K 6   6/25/1992 176399
NMC654406 K 7   6/25/1992 176400
NMC654407 K 8   6/25/1992 176401
NMC654408 K 9   6/25/1992 176402
NMC654409 K 10   6/25/1992 176403
NMC654410 K 11   6/25/1992 176404
NMC654411 K 12   6/25/1992 176405
NMC654412 K 13   6/25/1992 176406
NMC654413 K 14   6/25/1992 176407
NMC654414 K 15   6/25/1992 176408
NMC654415 K 16   6/25/1992 176409
NMC654416 K 17   6/25/1992 176410
  Amended   8/17/1992 177514
NMC654417 K 18   6/25/1992 176411
  Amended   8/14/1992 177515
NMC654418 K 19   6/25/1992 176412
NMC654419 K 20   6/25/1992 176413
  Amended   8/14/1992 177516
NMC654420 K 21   6/26/1992 176414
NMC654421 K 22   6/26/1992 176415

2



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
  Amended   8/17/1992 177517
NMC654422 K 23   6/26/1992 176416
NMC654423 K 24   6/26/1992 176417
  Amended   8/17/1992 177518
NMC654424 K 25   6/26/1992 176418
  Amended   8/17/1992 177519
NMC654425 K 26   6/26/1992 176419
  Amended   8/17/1992 177520
NMC654426 K 27   6/26/1992 176420
  Amended   8/17/1992 177521
         
NMC677352 ALAN 1   2/15/1993 183752;392;688
NMC677353 ALAN 2   2/15/1993 183753
NMC677354 ALAN 3   2/15/1993 183754
NMC677355 ALAN 4   2/15/1993 183755
NMC677356 ALAN 5   2/15/1993 183756
NMC677357 ALAN 6   2/15/1993 183757
NMC677358 ALAN 7   2/15/1993 183758
NMC677359 ALAN 8   2/15/1993 183759
NMC677360 ALAN 9   2/15/1993 183760
NMC677361 ALAN 10   2/15/1993 183761
NMC677362 ALAN 11   2/15/1993 183762
NMC677363 ALAN 12   2/15/1993 183763
NMC677364 ALAN 13   2/15/1993 183764
NMC677365 ALAN 14   2/15/1993 183765;392;701
         
NMC689348 N 2   11/17/1993 187015;403;45
NMC689350 N 4   11/17/1993 187017
NMC689352 N 6   11/17/1993 187019
NMC689354 N 8   11/17/1993 187021
NMC689356 N 10   11/17/1993 187023
NMC689358 N 12   11/17/1993 187025
NMC689360 N 14   11/17/1993 187027
NMC689362 N 16   11/17/1993 187029
NMC689364 N 18   11/17/1993 187031
NMC689366 N 20   11/18/1993 187033
NMC689368 N 22   11/18/1993 187035
NMC689370 N 24   11/18/1993 187037
NMC689372 N 26   11/18/1993 187039
NMC689374 N 28   11/18/1993 187041
NMC689376 N 30   11/18/1993 187043;403;73
         
NMC689380 TL 2   11/8/1993 187048;403;78
NMC689382 TL 4   11/8/1993 187050
NMC689384 TL 6   11/8/1993 187052
NMC689386 TL 8   11/10/1993 187054
NMC689388 TL 10   11/10/1993 187056
NMC689390 TL 12   11/10/1993 187058
NMC689392 TL 14   11/10/1993 187060

3



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC689394 TL 16   11/10/1993 187062
NMC689396 TL 18   11/10/1993 187064;40394
         
NMC703411 TL 20   6/21/1994 190187;409;652
NMC703413 TL 22   6/21/1994 190189;409;654
NMC703415 TL 24   6/21/1994 190191;409;656
NMC703417 TL 26   6/21/1994 190193;409;658
         
NMC725845 FCRA 1   9/28/1995 195570;422;371
NMC725846 FCRA 2   9/28/1995 195571;422;372
NMC725847 FCRA 3   9/28/1995 195572;422;373
NMC725848 FCRA 4   9/28/1995 195573;422;374
NMC725849 FCRA 5   9/28/1995 195574;422;375
NMC725850 FCRA 6   9/28/1995 195575;422;376
NMC725851 FCRA 7   9/28/1995 195576;422;377
NMC725852 FCRA 8   9/28/1995 195577;422;378
NMC725853 FCRA 9   9/28/1995 195578;422;379
NMC725854 FCRA 10   9/28/1995 195579;422;380
NMC725855 FCRA 11   9/28/1995 195580;422;381
NMC725856 FCRA 12   9/28/1995 195581;422;382
NMC725857 FCRA 13   9/28/1995 195582;422;383
NMC725858 FCRA 14   9/28/1995 195583;422;384
NMC725859 FCRA 15   9/28/1995 195584;422;385
NMC725860 FCRA 16   9/28/1995 195585;422;386
NMC725861 FCRA 17   9/28/1995 195586;422;387
NMC725862 FCRA 18   9/28/1995 195587;422;388
NMC725863 FCRA 19   9/28/1995 195588;422;389
NMC725864 FCRA 20   9/28/1995 195589;422;390
         
NMC810915 T 1   10/13/1999 213996;470;446
NMC810916 T 2   10/13/1999 213997;470;447
NMC810917 T 3   10/13/1999 213998;470;448
NMC810918 T 4   10/13/1999 213999;470;449
NMC810919 T 5   10/13/1999 214000;470;450
NMC810920 T 6   10/13/1999 214001;470;451
NMC810921 T 7   10/13/1999 214002;470;452
NMC810922 T 8   10/13/1999 214003;470;453
NMC810923 T 9   10/13/1999 214004;470;454
NMC810924 T 10   10/13/1999 214005;470;455
         
NMC858199 T 11   9/24/2003 229498
NMC858200 T 12   9/24/2003 229499
NMC858201 T 13   9/24/2003 229500
NMC858202 T 14   9/24/2003 229501
NMC858203 T 15   9/24/2003 229502
NMC858204 T 16   9/24/2003 229503
NMC858205 T 17   9/24/2003 229504
NMC858206 T 18   9/24/2003 229505
NMC858207 T 19   9/23/2003 229506

4



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC858208 T 20   9/23/2003 229507
NMC858209 T 21   9/23/2003 229508
NMC858210 T 22   9/23/2003 229509
NMC858211 T 23   9/23/2003 229510
NMC858212 T 24   9/23/2003 229511
NMC858213 T 25   9/23/2003 229512
NMC858214 T 26   9/23/2003 229513
NMC858215 T 27   9/24/2003 229514
NMC858216 T 28   9/24/2003 229515
NMC858217 T 29   9/24/2003 229516
NMC858218 T 30   9/24/2003 229517
NMC858219 T 31   9/24/2003 229518
NMC858220 T 32   9/24/2003 229519
NMC858221 T 33   9/24/2003 229520
NMC858222 T 34   9/24/2003 229521
NMC858223 T 35   9/24/2003 229522
NMC858224 T 36   9/24/2003 229523
         
NMC858225 HONDO 1   9/20/2003 229421
NMC858226 HONDO 3   9/20/2003 229422
NMC858227 HONDO 5   9/20/2003 229423
NMC858228 HONDO 7   9/20/2003 229424
NMC858229 HONDO 9   9/20/2003 229425
NMC858230 HONDO 11   9/20/2003 229426
NMC858231 HONDO 13   9/20/2003 229427
NMC858232 HONDO 15   9/20/2003 229428
NMC858233 HONDO 18   9/20/2003 229429
NMC858234 HONDO 20   9/20/2003 229430
NMC858235 HONDO 22   9/20/2003 229431
NMC858236 HONDO 24   9/20/2003 229432
NMC858237 HONDO 26   9/20/2003 229433
NMC858238 HONDO 28   9/20/2003 229434
NMC858239 HONDO 30   9/20/2003 229435
NMC858240 HONDO 32   9/20/2003 229436
NMC858241 HONDO 157   9/20/2003 229437
NMC858242 HONDO 158   9/20/2003 229438
         
NMC858243 DEB 1   9/22/2003 229477
NMC858244 DEB 3   9/22/2003 229478
NMC858245 DEB 5   9/22/2003 229479
         
NMC858246 REVENGE 1   9/22/2003 229480
NMC858247 REVENGE 3   9/23/2003 229481
NMC858248 REVENGE 5   9/23/2003 229482
NMC858249 REVENGE 7   9/23/2003 229483
NMC858250 REVENGE 9   9/23/2003 229484
NMC858251 REVENGE 11   9/22/2003 229485
NMC858252 REVENGE 13   9/22/2003 229486
NMC858253 REVENGE 15   9/22/2003 229487

5



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC858254 REVENGE 17   9/22/2003 229488
NMC858255 REVENGE 19   9/22/2003 229489
NMC858256 REVENGE 21   9/22/2003 229490
NMC858257 REVENGE 23   9/22/2003 229491
NMC858258 REVENGE 25   9/22/2003 229492
NMC858259 REVENGE 27   9/22/2003 229493
NMC858260 REVENGE 29   9/23/2003 229494
NMC858261 REVENGE 30   9/23/2003 229495
NMC858262 REVENGE 31   9/23/2003 229496
         
NMC858263 FC 1   9/21/2003 229440
NMC858264 FC 2   9/21/2003 229441
NMC858265 FC 3   9/21/2003 229442
NMC858266 FC 4   9/21/2003 229443
NMC858267 FC 5   9/21/2003 229444
NMC858268 FC 6   9/21/2003 229445
NMC858269 FC 7   9/21/2003 229446
NMC858270 FC 8   9/21/2003 229447
NMC858271 FC 9   9/21/2003 229448
NMC858272 FC 10   9/21/2003 229449
NMC858273 FC 11   9/21/2003 229450
NMC858274 FC 12   9/21/2003 229451
NMC858275 FC 13   9/21/2003 229452
NMC858276 FC 14   9/21/2003 229453
NMC858277 FC 15   9/21/2003 229454
NMC858278 FC 16   9/21/2003 229455
NMC858279 FC 17   9/21/2003 229456
NMC858280 FC 18   9/21/2003 229457
         
NMC858281 WHAT IF 29   9/21/2003 229458
NMC858282 WHAT IF 30   9/21/2003 229459
NMC858283 WHAT IF 31   9/21/2003 229460
NMC858284 WHAT IF 32   9/21/2003 229461
NMC858285 WHAT IF 33   9/21/2003 229462
NMC858286 WHAT IF 34   9/21/2003 229463
NMC858287 WHAT IF 35   9/21/2003 229464
NMC858288 WHAT IF 36   9/21/2003 229465
NMC858289 WHAT IF 37   9/21/2003 229466
         
NMC858290 FC 38   9/21/2003 229467
NMC858291 FC 39   9/21/2003 229468
NMC858292 FC 40   9/21/2003 229469
NMC858293 FC 41   9/21/2003 229470
NMC858294 FC 42   9/21/2003 229471
NMC858295 FC 43   9/21/2003 229472
NMC858296 FC 44   9/21/2003 229473
NMC858297 FC 45   9/21/2003 229474
NMC858298 FC 46   9/21/2003 229475

6



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC858346 T 38   10/5/2003 229833
NMC858347 T 39   10/5/2003 229834
NMC858348 T 40   10/5/2003 229835
NMC858349 T 41   10/5/2003 229836
NMC858350 T 42   10/5/2003 229837
NMC858351 T 43   10/5/2003 229838
NMC858352 T 44   10/5/2003 229839
NMC858353 T 45   10/5/2003 229840
NMC858354 T 46   10/5/2003 229841
NMC858355 T 47   10/5/2003 229842
NMC858356 T 48   10/5/2003 229843
NMC858357 T 49   10/5/2003 229844
NMC858358 T 50   10/5/2003 229845
NMC858359 T 51   10/5/2003 229846
NMC858360 T 52   10/5/2003 229847
NMC858361 T 53   10/5/2003 229848
NMC858362 T 54   10/5/2003 229849
NMC858363 T 55   10/5/2003 229850
NMC858364 T 56   10/5/2003 229851
NMC858365 T 57   10/5/2003 229852
NMC858366 T 58   10/5/2003 229853
NMC858367 T 59   10/5/2003 229854
NMC858368 T 60   10/5/2003 229855
NMC858369 T 61   10/6/2003 229856
NMC858370 T 62   10/6/2003 229857
NMC858371 T 63   10/6/2003 229858
NMC858372 T 64   10/6/2003 229859
NMC858373 T 65   10/6/2003 229860
NMC858374 T 66   10/6/2003 229861
NMC858375 T 67   10/6/2003 229862
NMC858376 T 68   10/6/2003 229863
NMC858377 T 69   10/6/2003 229864
NMC858378 T 70   10/6/2003 229865
NMC858379 T 71   10/6/2003 229866
NMC858380 T 72   10/6/2003 229867
         
NMC883199 FCXX 1   11/24/2004 234689
NMC883200 FCXX 2   11/24/2004 234690
NMC883201 FCXX 3   11/24/2004 234691
NMC883202 FCXX 4   11/24/2004 234692
NMC883203 FCXX 5   11/24/2004 234693
NMC883204 FCXX 6   11/24/2004 234694
NMC883205 FCXX 7   11/24/2004 234695
NMC883206 FCXX 8   11/24/2004 234696
NMC883207 FCXX 9   11/24/2004 234697
NMC883208 FCXX 10   11/24/2004 234698
NMC883209 FCXX 11   11/24/2004 234699
NMC883210 FCXX 12   11/24/2004 234700
NMC883211 FCXX 13   11/24/2004 234701

7



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC883212 FCXX 14   11/24/2004 234702
NMC883213 FCXX 15   11/24/2004 234703
NMC883214 FCXX 16   11/24/2004 234704
NMC883215 FCXX 17   11/24/2004 234705
NMC883216 FCXX 18   11/24/2004 234706
NMC883217 FCXX 19   11/24/2004 234707
NMC883218 FCXX 20   11/24/2004 234708
NMC883219 FCXX 21   11/24/2004 234709
NMC883220 FCXX 22   11/24/2004 234710
NMC883221 FCXX 23   11/24/2004 234711
NMC883222 FCXX 24   11/24/2004 234712
NMC883223 FCXX 25   11/24/2004 234713
NMC883224 FCXX 26   11/24/2004 234714
NMC883225 FCXX 27   11/24/2004 234715
NMC883226 FCXX 28   11/24/2004 234716
NMC883227 FCXX 29   11/24/2004 234717
NMC883228 FCXX 30   11/24/2004 234718
NMC883229 FCXX 31   11/24/2004 234719
NMC883230 FCXX 32   11/24/2004 234720
NMC883231 FCXX 33   11/24/2004 234721
NMC883232 FCXX 34   11/24/2004 234722
NMC883233 FCXX 35   11/24/2004 234723
NMC883234 FCXX 36   11/24/2004 234724
NMC883235 FCXX 37   11/24/2004 234725
NMC883236 FCXX 38   11/24/2004 234726
NMC883237 FCXX 39   11/24/2004 234727
NMC883238 FCXX 40   11/24/2004 234728
         
NMC941456 CH 1   9/19/2006 245941
NMC941457 CH 2   9/19/2006 245942
NMC941458 CH 3   9/19/2006 245943
NMC941459 CH 4   9/19/2006 245944
NMC941460 CH 5   9/19/2006 245945
NMC941461 CH 6   9/19/2006 245946
NMC941462 CH 7   9/19/2006 245947
NMC941463 CH 8   9/19/2006 245948
NMC941464 CH 9   9/19/2006 245949
NMC941465 CH 10   9/19/2006 245950
NMC941466 CH 11   9/19/2006 245951
NMC941467 CH 12   9/19/2006 245952
NMC941468 CH 13   9/19/2006 245953
NMC941469 CH 14   9/19/2006 245954
NMC941470 CH 15   9/19/2006 245955
NMC941471 CH 16   9/19/2006 245956
NMC941472 CH 17   9/19/2006 245957
NMC941473 CH 18   9/19/2006 245958
         
NMC941474 HONDO 2   10/4/2006 245960
NMC941475 HONDO 4   10/4/2006 245961

8



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC941476 HONDO 6   10/4/2006 245962
NMC941477 HONDO 8   10/4/2006 245963
NMC941478 HONDO 10   10/4/2006 245964
NMC941479 HONDO 12   10/4/2006 245965
NMC941480 HONDO 14   10/4/2006 245966
NMC941481 HONDO 16   10/4/2006 245967
NMC941482 HONDO 17   10/4/2006 245968
NMC941483 HONDO 19   10/4/2006 245969
NMC941484 HONDO 21   10/4/2006 245970
NMC941485 HONDO 23   10/4/2006 245971
NMC941486 HONDO 25   10/4/2006 245972
NMC941487 HONDO 27   10/4/2006 245973
NMC941488 HONDO 29   10/4/2006 245974
NMC941489 HONDO 31   10/4/2006 245975
NMC941490 HONDO 155   10/4/2006 245976
NMC941491 HONDO 156   10/4/2006 245977
         
NMC941492 N 1   9/11/2006 245979
NMC941493 N 3   9/11/2006 245980
NMC941494 N 5   9/12/2006 245981
NMC941495 N 7   9/12/2006 245982
NMC941496 N 9   9/12/2006 245983
NMC941497 N 11   9/11/2006 245984
NMC941498 N 13   9/11/2006 245985
NMC941499 N 15   9/12/2006 245986
NMC941500 N 17   9/12/2006 245987
NMC941501 N 19   9/11/2006 245988
NMC941502 N 21   9/11/2006 245989
NMC941503 N 23   9/11/2006 245990
NMC941504 N 25   9/11/2006 245991
NMC941505 N 27   9/11/2006 245992
NMC941506 N 29   9/12/2006 245993
NMC941507 N 31   9/12/2006 245994
         
NMC941508 TL 1   9/13/2006 245996
NMC941509 TL 3   9/13/2006 245997
NMC941510 TL 5   9/13/2006 245998
NMC941511 TL 7   9/13/2006 245999
NMC941512 TL 9   9/13/2006 246000
NMC941513 TL 11   9/13/2006 246001
NMC941514 TL 13   9/13/2006 246002
NMC941515 TL 15   9/13/2006 246003
NMC941516 TL 17   9/13/2006 246004
NMC941517 TL 19   9/14/2006 246005
NMC941518 TL 21   9/14/2006 246006
NMC941519 TL 23   9/14/2006 246007
NMC941520 TL 25   9/14/2006 246008
NMC941521 TL 27   9/14/2006 246009
NMC941522 TL 28   9/14/2006 246010

9



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC941523 TL 29   9/14/2006 246011
NMC941524 TL 30   9/14/2006 246012
NMC941525 TL 31   9/14/2006 246013
         
NMC941526 TWE 1   10/10/2006 246015
NMC941527 TWE 2   10/10/2006 246016
NMC941528 TWE 3   10/10/2006 246017
NMC941529 TWE 4   10/10/2006 246018
NMC941530 TWE 5   10/10/2006 246019
NMC941531 TWE 6   10/10/2006 246020
NMC941532 TWE 7   10/10/2006 246021
NMC941533 TWE 8   10/10/2006 246022
NMC941534 TWE 9   10/10/2006 246023
NMC941535 TWE 10   10/10/2006 246024
NMC941536 TWE 11   10/10/2006 246025
NMC941537 TWE 12   10/10/2006 246026
NMC941538 TWE 13   10/10/2006 246027
NMC941539 TWE 14   10/10/2006 246028
NMC941540 TWE 15   10/10/2006 246029
NMC941541 TWE 16   10/10/2006 246030
NMC941542 TWE 17   10/10/2006 246031
NMC941543 TWE 18   10/10/2006 246032
NMC941544 TWE 19   9/20/2006 246033
NMC941545 TWE 20   9/20/2006 246034
NMC941546 TWE 21   9/20/2006 246035
NMC941547 TWE 22   9/20/2006 246036
NMC941548 TWE 23   9/20/2006 246037
NMC941549 TWE 24   9/20/2006 246038
NMC941550 TWE 25   9/20/2006 246039
NMC941551 TWE 26   9/20/2006 246040
NMC941552 TWE 27   9/20/2006 246041
NMC941553 TWE 28   9/20/2006 246042
NMC941554 TWE 29   9/20/2006 246043
NMC941555 TWE 30   9/20/2006 246044
NMC941556 TWE 31   9/20/2006 246045
NMC941557 TWE 32   9/20/2006 246046
NMC941558 TWE 33   9/20/2006 246047
NMC941559 TWE 34   9/20/2006 246048
NMC941560 TWE 35   9/20/2006 246049
NMC941561 TWE 36   9/20/2006 246050
         
NMC941562 WT 1   10/31/2006 246052
NMC941563 WT 3   10/31/2006 246053
NMC941564 WT 5   10/31/2006 246054
NMC941565 WT 7   10/31/2006 246055
NMC941566 WT 9   10/31/2006 246056
NMC941567 WT 11   10/31/2006 246057
NMC941568 WT 13   10/31/2006 246058
NMC941569 WT 15   10/31/2006 246059

10



BLM Serial # Claim Name & #   Loc Date DOC; Book; Page
NMC941570 WT 17   10/31/2006 246060
NMC941571 WT 19   11/7/2006 246061
NMC941572 WT 21   11/7/2006 246062
NMC941573 WT 23   11/7/2006 246063
NMC941574 WT 25   11/7/2006 246064
NMC941575 WT 27   11/7/2006 246065
NMC941576 WT 29   10/31/2006 246066
NMC941577 WT 31   10/31/2006 246067
NMC941578 WT 33   10/31/2006 246068
NMC941579 WT 35   10/31/2006 246069
NMC941580 WT 37   11/1/2006 246070
NMC941581 WT 39   11/1/2006 246071
NMC941582 WT 41   11/1/2006 246072
NMC941583 WT 43   11/112006 246073
NMC941584 WT 45   11/1/2006 246074
NMC941585 WT 47   11/1/2006 246075
NMC941586 WT 49   11/1/2006 246076
NMC941587 WT 51   11/1/2006 246077
NMC941588 WT 53   11/1/2006 246078
NMC941589 WT 54   11/1/2006 246079
NMC941590 WT 55   11/1/2006 246080
NMC941591 WT 56   11/8/2006 246081
NMC941592 WT 57   11/8/2006 246082
NMC941593 WT 58   11/8/2006 246083
NMC941594 WT 59   11/8/2006 246084
NMC941595 WT 60   11/8/2006 246085
NMC941596 WT 61   11/8/2006 246086
NMC941597 WT 62   11/8/2006 246087
NMC941598 WT 63   11/8/2006 246088
NMC941599 WT 64   11/8/2006 246089
NMC941600 WT 65   11/8/2006 246090
NMC941601 WT 66   11/8/2006 246091
NMC941602 WT 67   11/8/2006 246092
NMC941603 WT 68   11/8/2006 246093
NMC941604 WT 69   11/8/2006 246094
NMC941605 WT 70   11/8/2006 246095
NMC941606 WT 71   11/8/2006 246096
NMC941607 WT 72   11/8/2006 246097
Total 484 Claims        

11


Summary of Fire Creek Exploration Project Fee Holdings

APN Legal Description Royalty Acres
Section 9 T30N R47E MDB&M    
007-110-01 NW1/4 N/A 160
007-110-13 E1/2 NE 1/4 NE1/4, SE1/4 NE1/4, SE1/4 SW1/4 NE1/4 N/A 70
       
Section 15 T30N R47E MDB&M    
007-140-01 N1/2 NW1/4 N/A 80
007-140-03 SW1/4 NW1/4 N/A 40
007-140-05 SW1/4 NE1/4 N/A 40
007-140-12 SE1/4 SW1/4 N/A 40
007-140-14 Lots 1 & 2, also described as S1/2 SE1/4 N/A 65.39
007-140-15 SE1/4 NE1/4 SW1/4 N/A 10
007-140-19 S1/2 NW1/4 NE1/4 N/A 20
007-140-20 N1/2 NW1/4 NE1/4 N/A 20
007-140-21 NW1/4 NE1/4 SW1/4 N/A 10
007-140-22 NE1/4 NE1/4 SW1/4 N/A 10
007-140-23 SW1/4 NE1/4 SW1/4 N/A 10
007-140-25 NW1/4 NE1/4 NE1/4 N/A 10
       
Section 23 T30N R47E MDB&M    
007-160-06 E1/2 SE1/4 NE1/4 N/A 20
007-160-08 N1/2 NE1/4 SE1/4 N/A 20
007-160-09 SE1/4 NE1/4 SE1/4 N/A 10
007-160-16 N1/2 SE1/4 NW1/4 5% NSR 20
007-160-17 N1/2 NW1/4 SW1/4 N/A 20
007-160-18 NW1/4 NW1/4 N/A 40
007-160-19 NE1/4 NW1/4 N/A 40
007-160-20 NE1/4 SW1/4 NW1/4 N/A 10
007-160-21 S1/2 SE1/4 NW1/4 N/A 20
007-160-22 NE1/4 NE/1/4 SW1/4 N/A 10
007-160-25 W1/2 SW1/4 NW1/4, NE1/4 SW1/4 NW1/4 5% NSR 30
007-160-26 NW1/4 NE1/4 SW1/4 N/A 10
007-160-27 NW1/4, SW1/4 SE1/4, SE1/4 NW1/4 SE1/4 N/A 20
007-160-28 SW1/4 NE1/4 SE1/4 NW1/4 SE1/4 SE1/4 N/A 20
       
Section 21 T30N R47E MDB&M    
007-610-01 NW1/4 N/A 160
       
Section 33 T30N R47E MDB&M    
007-640-06 S1/2 NW1/4 N/A 80
                                 29 Fee Parcels   1095.39

12


Summary of Fire Creek Exploration Project Leased Fee Holdings

APN Description Lessor Royalty Expiration Acres
Section 15 T30N R47E MDB&M        
007-140-04 SE1/4 NW1/4 Third Party Lessor 4% NSR (2) 40
007-140-06 SE1/4 NE1/4 Third Party Lessor 4% NSR (2) 40
007-140-10 NE1/4 SE1/4, E1/2 NW1/4 SE1/4 Third Party Lessor 2.5% NSR (2) 60
007-140-07 N2NW4SW4 Third Party Lessor 3.0% NSR & 0.5% wheelage royalty(1) 31-Jul-33 20
007-140-09 W2NW4SE4 Third Party Lessor 3.0% NSR & 0.5% wheelage royalty(1) 31-Jul-33 20
Section 19 T30N R47E MDB&M        
007-160-04 SW4NE4 Third Party Lessor 3.0% NSR & 0.5% wheelage royalty(1) 31-Jul-33 40
007-160-24 NE4NW4SE4 Third Party Lessor 3.0% NSR & 0.5% wheelage royalty(1) 31-Jul-33 10
Section 19 T30N R47E MDB&M        
007-060-69 Parcel 1 of the Sharp Hospital Map recorded in the Office of the Lander County Recorder in Book 375, Official Records, Page 170 Third Party Lessor 3.0% NSR & 0.5% wheelage royalty(1) 31-Jul-33 9.28
8 Leased Fee Parcels       239.28

Water Rights

All Water Rights and Certificates issued from Nevada Division of Water Resources have been issued to Klondex Gold & Silver Mining Company, unless otherwise noted.

Water Right Application number 74990-T filed November 2, 2006, Corrected Application filed December 27, 2006; this is a temporary permit and will revert back to 28637 on expiration.

Water Right Application number 77002 filed April 30, 2008, Approval of State Engineer granted November 16, 2009, Proof of Beneficial Use due November 16, 2014.

Water Right Application number 28637 filed August 28, 1974, Certificate 10558 granted January 28, 1983. This permit was issued to L. E. Gilbert.

Water Right Application number 77003 filed April 30, 2008, Approval of State Engineer granted November 16, 2009, Proof of Beneficial Use due November 16, 2014.

Water Right Application number 75129 filed November 28, 2006 with a new priority date of September 17, 2009, Certificate 18863 granted September 26, 2012.

13


14


15


SCHEDULE C

OTHER PROPERTIES

Reef Project, Churchill County, Nevada

8 Unpatented Lode Mining Claims Owned by Klondex Gold & Silver Mining Company Located in Sections 24 and 25, T15N R34E, MDM, Churchill County, Nevada:

BLM Serial # Claim Name #   Loc Date County Doc Legal Desc MTRS
NMC361070 REEF 1   1/17/1986 217903 21 0150N 0340E 024
  amended   2/14/2000 327888  
NMC361071 REEF 2   1/17/1986 217904 21 0150N 0340E 024
  amended   2/14/2000 327889  
NMC361072 REEF 3   1/17/1986 217905 21 0150N 0340E 024
  amended   2/14/2000 327890  
NMC529603 REEF 4   09/01/1988 240992 21 0150N 0340E 024
  amended   2/14/2000 327891  
NMC694084 REEF 5   01/12/1994 279925 21 0150N 0340E 024
  amended   2/14/2000 327892  
NMC694085 REEF 6   01/12/1994 279926 21 0150N 0340E 024
  amended   2/14/2000 327893  
NMC694086 REEF 7   01/12/1994 279927 21 0150N 0340E 024
  amended   2/14/2000 327894  
NMC694087 REEF 8   01/12/1994 279928 21 0150N 0340E 024
  amended   2/14/2000 327895  
Total 8 Unpatented Lode Claims Reef Project    

Hot Springs Point Property, Eureka County, Nevada

81 Unpatented Lode Mining Claims Owned by Klondex Gold & Silver Mining Company

Located in Section 6, T29N R49E; and Sections 12 and 14, T29N R48E, MDM, Eureka County, Nevada:

BLM Serial # Claim Name #   Loc Date County Doc. Legal Desc MTRS
NMC689398 HS 2   10/23/1993 149491 21 0290N 0480E 012
NMC689400 HS 4   10/23/1993 149493 21 0290N 0480E 012
NMC689402 HS 6   10/23/1993 149495 21 0290N 0480E 012
NMC689404 HS 8   10/23/1993 149497 21 0290N 0480E 012
NMC689406 HS 10   10/23/1993 149499 21 0290N 0480E 012
NMC689408 HS 12   10/23/1993 149501 21 0290N 0480E 012
NMC689410 HS 14   10/23/1993 149503 21 0290N 0480E 012
NMC689412 HS 16   10/23/1993 149505 21 0290N 0480E 012
NMC689414 HS 18   10/23/1993 149507 21 0290N 0480E 012
NMC689416 HS 20   10/23/1993 149509 21 0290N 0480E 012
NMC689418 HS 22   10/23/1993 149511 21 0290N 0480E 012

1



BLM Serial # Claim Name #   Loc Date County Doc. Legal Desc MTRS
NMC689420 HS 24   10/23/1993 149513 21 0290N 0480E 012
NMC689422 HS 26   10/24/1993 149515 21 0290N 0490E 006
NMC689424 HS 28   10/24/1993 149517 21 0290N 0490E 006
NMC689426 HS 30   10/24/1993 149519 21 0290N 0490E 006
NMC689428 HS 32   10/24/1993 149521 21 0290N 0490E 006
NMC689430 HS 34   10/24/1993 149523 21 0290N 0490E 006
NMC689432 HS 36   10/24/1993 149525 21 0290N 0490E 006
NMC689434 HS 38   10/24/1993 149527 21 0290N 0490E 006
NMC689436 HS 40   10/24/1993 149529 21 0290N 0490E 006
NMC689438 HS 42   10/24/1993 149531 21 0290N 0490E 006
NMC689440 HS 44   10/24/1993 149533 21 0290N 0490E 006
NMC689442 HS 46   10/24/1993 149535 21 0290N 0490E 006
NMC689444 HS 48   10/28/1993 149537 21 0290N 0480E 014
NMC689446 HS 50   10/28/1993 149539 21 0290N 0480E 014
  amended   12/14/1993 149767  
NMC689448 HS 52   10/29/1993 149541 21 0290N 0480E 014
  amended   12/14/1993 149769  
NMC689450 HS 54   10/29/1993 149543 21 0290N 0480E 014
  amended   12/14/1993 149771  
NMC689452 HS 56   10/29/1993 149545 21 0290N 0480E 014
  amended   12/14/1993 149773  
NMC689454 HS 58   10/29/1993 149547 21 0290N 0480E 014
  amended   12/14/1993 149775  
NMC689456 HS 60   10/29/1993 149549 21 0290N 0480E 014
  amended   12/14/1993 149777  
NMC689458 HS 62   10/29/1993 149551 21 0290N 0480E 014
  amended   12/14/1993 149779  
NMC689460 HS 64   10/29/1993 149553 21 0290N 0480E 014
  amended   12/14/1993 149781  
NMC689462 HS 66   10/23/1993 149555 21 0290N 0480E 012
           
NMC692193 HS 68   12/07/1993 149958 21 0290N 0480E 014
NMC692195 HS 70   12/07/1993 149960 21 0290N 0480E 014
NMC692197 HS 72   12/07/1993 149962 21 0290N 0480E 014
NMC692199 HS 74   12/07/1993 149964 21 0290N 0480E 014
NMC692201 HS 76   12/07/1993 149966 21 0290N 0480E 014
NMC692203 HS 78   12/07/1993 149968 21 0290N 0480E 014
NMC1015124 HS 1   09/03/2009 214290 21 0290N 0480E 012
  amended   11/18/2009 214696  
NMC1015125 HS 3   09/03/2009 214289 21 0290N 0480E 012
  amended   11/18/2009 214697  
NMC1015126 HS 5   09/03/2009 214288 21 0290N 0480E 012
  amended   11/18/2009 214698  
NMC1015127 HS 7   09/03/2009 214287 21 0290N 0480E 012

2



BLM Serial # Claim Name #   Loc Date County Doc. Legal Desc MTRS
  amended   11/18/2009 214699  
NMC1015128 HS 9   09/03/2009 214286 21 0290N 0480E 012
  amended   11/18/2009 214700  
NMC1015129 HS 11   09/03/2009 214285 21 0290N 0480E 012
  amended   11/18/2009 214701  
NMC1015130 HS 13   09/03/2009 214284 21 0290N 0480E 012
  amended   11/18/2009 214702  
NMC1015131 HS 15   09/03/2009 214283 21 0290N 0480E 012
  amended   11/18/2009 214703  
NMC1015132 HS 17   09/03/2009 214282 21 0290N 0480E 012
  amended   11/18/2009 214704  
NMC1015133 HS 19   09/03/2009 214281 21 0290N 0480E 012
  amended   11/18/2009 214705  
NMC1015134 HS 21   09/03/2009 214280 21 0290N 0480E 012
  amended   11/18/2009 214706  
NMC1015135 HS 23   09/03/2009 214279 21 0290N 0480E 012
  amended   11/18/2009 214707  
NMC1015136 HS 25   09/03/2009 214278 21 0290N 0480E 012
  amended   11/18/2009 214708  
NMC1015137 HS 27   09/03/2009 214277 21 0290N 0490E 006
  amended   11/18/2009 214709  
NMC1015138 HS 29   09/03/2009 214276 21 0290N 0490E 006
  amended   11/18/2009 214710  
NMC1015139 HS 31   09/03/2009 214275 21 0290N 0490E 006
  amended   11/18/2009 214711  
NMC1015140 HS 33   09/03/2009 214274 21 0290N 0490E 006
  amended   11/18/2009 214712  
NMC1015141 HS 35   09/03/2009 214273 21 0290N 0490E 006
  amended   11/18/2009 214713  
NMC1015142 HS 37   09/03/2009 214272 21 0290N 0490E 006
  amended   11/18/2009 214714  
NMC1015143 HS 39   09/03/2009 214271 21 0290N 0490E 006
  amended   11/18/2009 214715  
NMC1015144 HS 41   09/03/2009 214270 21 0290N 0490E 006
  amended   11/18/2009 214716  
NMC1015145 HS 43   09/03/2009 214269 21 0290N 0490E 006
  amended   11/18/2009 214717  
NMC1015146 HS 45   09/03/2009 214268 21 0290N 0490E 006
  amended   11/18/2009 214718  
NMC1015147 HS 47   09/03/2009 214267 21 0290N 0490E 006
  amended   11/18/2009 214719  
NMC1015148 HS 49   09/03/2009 214248 21 0290N 0480E 014
  amended   11/18/2009 214720  
NMC1015149 HS 51   09/03/2009 214249 21 0290N 0480E 014

3



BLM Serial # Claim Name #   Loc Date County Doc. Legal Desc MTRS
  amended   11/18/2009 214721  
NMC1015150 HS 53   09/03/2009 214250 21 0290N 0480E 014
  amended   11/18/2009 214722  
NMC1015151 HS 55   09/03/2009 214251 21 0290N 0480E 014
  amended   11/18/2009 214723  
NMC1015152 HS 57   09/03/2009 214252 21 0290N 0480E 014
  amended   11/18/2009 214724  
NMC1015153 HS 59   09/03/2009 214253 21 0290N 0480E 014
  amended   11/18/2009 214725  
NMC1015154 HS 61   09/03/2009 214254 21 0290N 0480E 014
  amended   11/18/2009 214726  
NMC1015155 HS 63   09/03/2009 214255 21 0290N 0480E 014
  amended   11/18/2009 214727  
NMC1015156 HS 65   09/03/2009 214256 21 0290N 0480E 014
  amended   11/18/2009 214728  
NMC1015157 HS 67   11/24/2009 214257 21 0290N 0480E 014
  amended   11/18/2009 214729  
NMC1015158 HS 69   11/24/2009 214258 21 0290N 0480E 014
  amended   11/18/2009 214730  
NMC1015159 HS 71   11/24/2009 214259 21 0290N 0480E 014
  amended   11/18/2009 214731  
NMC1015160 HS 73   11/24/2009 214260 21 0290N 0480E 014
  amended   11/18/2009 214732  
NMC1015161 HS 75   11/24/2009 214261 21 0290N 0480E 014
  amended   11/18/2009 214733  
NMC1015162 HS 77   11/24/2009 214262 21 0290N 0480E 014
  amended   11/18/2009 214734  
NMC1015163 HS 79   11/24/2009 214263 21 0290N 0480E 014
  amended   11/18/2009 214735  
NMC1015164 HS 81   11/24/2009 214264 21 0290N 0480E 014
  amended   11/18/2009 214736  
NMC1015165 HS 83   11/24/2009 214265 21 0290N 0480E 014
  amended   11/18/2009 214737  
Total 81 Claims Hot Springs Point Project        

Maggie Creek Project, Elko County, Nevada


48 Unpatented Lode Claims Owned by:
Klondex Gold & Silver Mining Company - 2/3 Apparent Interest;
Minex Resources Inc - 1/3 Apparent Interest
Located in Sections 8, 16, and 20, T34N R52E, MDM, Elko County, Nevada:

4



BLM Serial # Claim Name # Loc Date County Doc;Bk;Pg Legal Desc MTRS
NMC165759 LOR # 51 07/09/1980 137310;328;539 21 0340N 0520E 020
NMC165760 LOR # 52 07/09/1980 137311;328;540 21 0340N 0520E 020
NMC165763 LOR # 55 07/09/1980 137314;328;543 21 0340N 0520E 020
NMC165764 LOR # 56 07/09/1980 137315;328;544 21 0340N 0520E 020
NMC165767 LOR # 59 07/09/1980 137318;328;547 21 0340N 0520E 020
NMC165768 LOR # 60 07/09/1980 137319;328;548 21 0340N 0520E 020
NMC165771 LOR # 63 07/09/1980 137322;328;551 21 0340N 0520E 020
NMC165772 LOR # 64 07/09/1980 137323;328;552 21 0340N 0520E 020
NMC165775 LOR # 67 07/09/1980 137326;328;555 21 0340N 0520E 020
NMC165776 LOR # 68 07/10/1980 137327;328;556 21 0340N 0520E 020
NMC165778 LOR # 70 07/10/1980 137329;328;558 21 0340N 0520E 020
NMC165780 LOR # 72 07/09/1980 137331;328;560 21 0340N 0520E 020
NMC165782 LOR # 74 07/09/1980 137333;328;562 21 0340N 0520E 020
NMC165784 LOR # 76 07/09/1980 137335;328;564 21 0340N 0520E 020
NMC165786 LOR # 78 7/14/1980 137337;328;566 21 0340N 0520E 020
         
NMC165788 GH # 80 7/14/1980 137339;328;568 21 0340N 0520E 016
NMC165790 GH # 82 7/14/1980 137341;328;570 21 0340N 0520E 016
NMC165792 GH # 84 7/15/1980 137343;328;572 21 0340N 0520E 016
NMC165794 GH # 86 7/15/1980 137345;328;574 21 0340N 0520E 016
NMC165796 GH # 88 7/16/1980 137347;328;576 21 0340N 0520E 016
NMC165798 GH # 90 7/15/1980 137349;328;578 21 0340N 0520E 016
NMC165800 GH # 92 7/15/1980 137351;328;580 21 0340N 0520E 016
NMC165802 GH # 94 7/15/1980 137353;328;582 21 0340N 0520E 016
NMC165804 GH # 96 7/16/1980 137355;328;584 21 0340N 0520E 016
NMC165806 GH # 98 7/16/1980 137357;328;586 21 0340N 0520E 016
NMC165808 GH #100 7/15/1980 137359;328;588 21 0340N 0520E 016
NMC165810 GH #102 07/08/1980 137393;328;622 21 0340N 0520E 016
NMC165812 GH #104 07/08/1980 137395;328;624 21 0340N 0520E 016
NMC165814 GH #106 07/08/1980 137397;328;626 21 0340N 0520E 016
NMC165816 GH #108 07/08/1980 137399;328;628 21 0340N 0520E 016
         
NMC165818 RG #110 7/23/1980 137360;328;589 21 0340N 0520E 008
NMC165820 RG #112 7/23/1980 137362;328;591 21 0340N 0520E 008
NMC165822 RG #114 7/23/1980 137364;328;593 21 0340N 0520E 008
NMC165824 RG #116 7/23/1980 137366;328;595 21 0340N 0520E 008
NMC165828 RG #120 7/23/1980 137369;328;598 21 0340N 0520E 008
NMC165830 RG #122 7/23/1980 137371;328;600 21 0340N 0520E 008
NMC165832 RG #124 7/23/1980 137373;328;602 21 0340N 0520E 008
NMC165833 RG #125 7/23/1980 137374;328;603 21 0340N 0520E 008
NMC165836 RG #128 7/17/1980 137376;328;605 21 0340N 0520E 008
NMC165838 RG #130 7/17/1980 137378;328;607 21 0340N 0520E 008
NMC165840 RG #132 7/17/1980 137380;328;609 21 0340N 0520E 008
NMC165842 RG #134 7/17/1980 137382;328;611 21 0340N 0520E 008

5



BLM Serial # Claim Name # Loc Date County Doc;Bk;Pg Legal Desc MTRS
NMC165845 RG #138 7/17/1980 137385;328;614 21 0340N 0520E 008
NMC165846 RG #139 7/17/1980 137386;328;615 21 0340N 0520E 008
NMC165847 RG #140 7/17/1980 137387;328;616 21 0340N 0520E 008
NMC165849 RG #142 7/17/1980 137389;328;618 21 0340N 0520E 008
NMC165850 RG #143 7/17/1980 137390;328;619 21 0340N 0520E 008
NMC165851 RG #144 7/17/1980 137391;328;620 21 0340N 0520E 008
Total 48 Claims Maggie Creek Project    

Other

APN Description Acres
002-038-03

Lot 11, Block 22 of Crescent Valley Ranch & Farms Unit No. 1, as per map included in the Office of the County Recorder of Eureka County, Nevada, as File No. 134081; EXCEPTING THEREFROM all petroleum, oil, natural gas and products derived therefrom, within or underlying said land or that may be produced therefrom, and all rights thereto, as reserved by Southern Pacific Land Company in Deed to H.J. Buchanau and Elsa Buchenau, recorded September 24, 1951, in Book 24 at Page 168, Eureka County, Nevada

0.690
002-038-04

Lot 10, Block 22 of Crescent Valley Ranch & Farms Unit No. 1, as per map included in the Office of the County Recorder of Eureka County, Nevada, as File No. 34081 on April 6, 1959

0.690

6


SCHEDULE D

MONTHLY DELIVERY REQUIREMENTS

This Schedule sets out, for each calendar month, the applicable ounces of Refined Gold to be delivered to the Buyer on each Delivery Date pursuant to Monthly Delivery Requirements.

2014   2015   2016
Month Ounces   Month Ounces   Month Ounces
January nil   January 625.0   January 666.7
February nil   February 625.0   February 666.7
March nil   March 625.0   March 666.7
April nil   April 625.0   April 666.7
May nil   May 625.0   May 666.7
June 964.5   June 625.0   June 666.7
July 964.5   July 625.0   July 666.7
August 964.5   August 625.0   August 666.7
September 964.5   September 625.0   September 666.7
October 964.5   October 625.0   October 666.7
November 964.5   November 625.0   November 666.7
December 963.0   December 625.0   December 666.3
Total: 6,750.0   Total: 7,500.0   Total: 8,000.0
               
               
               
2017   2018      
Month Ounces   Month Ounces      
January 666.7   January 666.7      
February 666.7   February 666.7      
March 666.7   March 666.7      
April 666.7   April 666.7      
May 666.7   May 666.7      
June 666.7   June 666.7      
July 666.7   July 666.7      
August 666.7   August 666.7      
September 666.7   September 666.7      
October 666.7   October 666.7      
November 666.7   November 666.7      
December 666.3   December 666.3      
Total: 8,000.0   Total: 8,000.0      


SCHEDULE E

CONDITIONS FOR PAYMENT OF PURCHASE PRICE

The Buyer’s obligation to pay the Purchase Price is subject to the satisfaction of the following conditions (unless waived by the Buyer in writing):

1.

Transaction Documents

   

An original, duly executed by each relevant party, of each of the Transaction Documents, as follows:


  (a)

this Agreement;

     
  (b)

Intercreditor Agreement;

     
  (c)

Guarantee by each of the Seller Entities other than the Seller (which shall be an absolute, unconditional, unlimited and primary guarantee of the Delivery Obligations and other obligations of the Seller under this Agreement);

     
  (d)

General Security Agreement between the Buyer and each of the Seller Entities;

     
  (e)

Securities Pledge Agreement between the Buyer and each of the Seller Entities (as applicable) pledging all of its shares owned by it of the other Seller Entities in favour of the Buyer;

     
  (f)

Deeds of Trust between the Fire Creek Owner, as trustor, and Stewart Title Company, as trustee, in favour of the Buyer, as beneficiary in respect of the Fire Creek Property and Other Properties;

     
  (g)

Deed of Trust between the Midas Owner, as trustor, and Stewart Title Company, as trustee, in favour of the Buyer, as beneficiary in respect of the Midas Property;

     
  (h)

Blocked Account Agreement between the Buyer, as the secured party, the Seller, as the Debtor and Bank of Montreal;

     
  (i)

Blocked Account Agreement between the Buyer, as the secured party, the Seller, as the Debtor and Bank of Montreal:

     
  (j)

Deposit Account Control Agreement between the Buyer, as the secured party, the Seller, as the Debtor and Bank of America N.A.; and

     
  (k)

Deposit Account Control Agreement between the Buyer, as the secured party, the Seller, as the Debtor and Bank of America N.A.

(the documents referred to in paragraphs (d) to (k) are collectively referred to as the “Security Agreements”).



2.

Perfection of Security

   

Each of the relevant Seller Entities has completed to the satisfaction of the Buyer all perfection formalities for the Security, including:


  (a)

all filings, stampings, registrations, recordings and notifications in connection with the Security Agreements; and

     
  (b)

the giving of notices of pledge, assignment or charge, as applicable in relation to the security created under the Security Agreements to each of the parties to the contractual arrangements and accounts which are the subject of the Security Agreements.


3.

Third Party Notices and Consents

   

The Seller Entities shall have obtained written consent from or provided written notice to, as applicable, the necessary parties and otherwise complied with the terms of the following agreements in connection with the completion of the transactions contemplated by the Transaction Documents:


  (a)

Lease agreement effective July 1, 2000 by and between Fraser Creek Exploration Company, Inc. and Franco-Nevada Mining Corporation (third-party consent); and

     
  (b)

Amended and Restated Gold Supply Agreement between Klondex Gold & Silver Mining Company and Waterton Global Value, L.P. dated as of March 31, 2011, as amended and restated as of October 4, 2011 (third party notice).


4.

Discharge of Encumbrances

   

The Seller has provided to the Buyer releases, discharges and postponements (in registrable form where appropriate) in respect of Encumbrances affecting any of the Properties which are not Permitted Encumbrances.

   
5.

Development and Mine Plans

   

The Seller has provided to the Buyer a copy of the development plan or mine plan, as applicable, for the Midas Mine and the Fire Creek Project.

   
6.

Legal Opinions

   

The Seller has provided to the Buyer favourable legal opinions and, in the case of fee lands, title insurance, in form, substance and detail satisfactory to the Buyer, pertaining to the Seller Entities’ title to the Properties and the validity and perfection of the Security.

   
7.

Other Documents

   

Such other documents as the Buyer may reasonably request.



SCHEDULE F

REPRESENTATIONS AND WARRANTIES OF THE BUYER

1.

Organization and Powers. The Buyer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to execute and deliver, and perform its obligations under, the Transaction Documents to which it is a party.

     
2.

Authorization; No Conflict. The execution and delivery by the Buyer of, the performance of its obligations under, and the consummation of the transactions contemplated by the Transaction Documents to which it is a party have been duly authorized by all necessary action of the Buyer, and do not and will not:

     
(a)

violate the terms of its constating documents; or

     
(b)

conflict with, result in a breach of, or constitute a default or an event creating rights of acceleration, termination, modification or cancellation or a loss of rights under (with or without the giving notice or lapse of time or both), any written or oral contract, agreement, license, concession, indenture, mortgage, debenture, note or other instrument to which it is a party, subject or otherwise bound (including with respect to its assets) except in each case as would not have a material adverse effect on its ability to perform its obligations under the Transaction Documents; or

     
(c)

violate in any material respect any Applicable Law to which it is subject or otherwise bound (including with respect to its assets).

     
3.

Execution; Binding Obligation. Each Transaction Document to which the Buyer is a party has been duly and validly executed and delivered by the Buyer. Each of the Transaction Documents to which the Buyer is a party constitutes, or when delivered under this Agreement will constitute, a legal, valid and binding obligation of the Buyer, enforceable against it in accordance with its terms, except to the extent enforcement may be affected by Applicable Laws and regulations relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies.

     
4.

Consents. The Buyer is not required to give any notice to, make any filing with or obtain any authorization, consent, Order or approval of any Person in connection with the execution and delivery of any Transaction Document or the consummation of the transactions contemplated herein and therein, except, in each case, as would not have a material adverse effect on its ability to perform its obligations under the Transaction Documents.



SCHEDULE G

REPRESENTATIONS AND WARRANTIES OF THE SELLER

No specific representation or warranty shall limit the generality or applicability of a more general representation or warranty. The representations and warranties of the Seller set out in this Schedule below are made subject to and modified by the exceptions and qualifications (if any) noted in the correspondingly numbered section of the Disclosure Schedule. No disclosure in any particular section of the Disclosure Schedule (including the listing of a document or item in any Disclosure Schedule or the inclusion of a copy thereof in such Disclosure Schedule) shall be adequate to disclose an exception or qualification to a representation or warranty in any other sections of this Agreement or in any other section of the Disclosure Schedule unless the applicability of such disclosure to the other representations and warranties is clear and obvious on its face. Each section of the Disclosure Schedule shall be numbered to correspond to the paragraph of this Schedule G to which such section relates.

1.

Organization and Powers. Each Klondex Entity is:

     
(a)

duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, and has all requisite power and authority to execute and deliver, and perform its obligations under, the Transaction Documents to which it is a party;

     
(b)

qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the nature and location of its assets requires such qualification or licensing except where such failure to qualify or be licensed or in good standing would not have a Material Adverse Effect; and

     
(c)

has all requisite power and authority to own and lease its assets and carry on its business.

     
2.

Authorization; No Conflict. The execution and delivery by each Klondex Entity of, the performance of its obligations under, and the consummation of the transactions contemplated by the Transaction Documents to which it is a party have been duly authorized by all necessary corporate or other action of such Klondex Entity and do not and will not:

     
(a)

violate the terms of the constating documents of such Klondex Entity;

     
(b)

conflict with, result in a breach of, or constitute a default or an event creating rights of acceleration, termination, modification or cancellation or a loss of rights under (with or without the giving notice or lapse of time or both), any written or oral contract, agreement, license, concession, indenture, mortgage, debenture, note or other instrument to which such Klondex Entity is a party, subject or otherwise bound (including with respect to its assets) in each case except as would not have a Material Adverse Effect;

     
(c)

violate in any material respect any Applicable Law to which such Klondex Entity is subject or otherwise bound (including with respect to its assets); or

     
(d)

except as contemplated by this Agreement, result in, or require, the creation or imposition of any Encumbrance upon or with respect to any of the assets or properties of such Klondex Entity.



- 4 -

3.

Solvency. Each Klondex Entity is Solvent and no Klondex Entity will be rendered Insolvent by the execution and delivery of any of the Transaction Documents to which such Klondex Entity is a party.

   
4.

Execution; Binding Obligation. Each Transaction Document to which a Klondex Entity is a party has been duly and validly executed and delivered by such Klondex Entity. Each of the Transaction Documents to which each Klondex Entity is a party constitutes, or when delivered under or in connection with this Agreement will constitute, legal, valid and binding obligation of such Klondex Entity, enforceable against such Klondex Entity in accordance with its terms, except to the extent enforcement may be affected by Applicable Laws and regulations relating to bankruptcy, reorganization, insolvency and creditors’ rights and by the availability of injunctive relief, specific performance and other equitable remedies.

   
5.

Consents. Except as set out in section 3 of Schedule E of this Agreement, no Klondex Entity is required to give any notice to, make any filing with or obtain any authorization, consent, Order or approval of any Person in connection with the execution, delivery or performance of its obligations under any Transaction Document or the consummation of the transactions contemplated herein and therein, except for recordings or filings in connection with the perfection of the Encumbrances on the Collateral in favor of the Buyer.

   
6.

No Defaults. No event has occurred or circumstance exists that (with or without the giving of notice or lapse of time or both) has contravened, conflicted with or resulted in, or may contravene, conflict with or result in, a violation or breach of, or give any Klondex Entity or any other Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or to cancel, terminate or modify, any contract, lease, license, concession, Authorization, agreement, indenture, mortgage, debenture, note, instrument, or Order to which it is a party or by which it or its properties and assets may be bound, and, to the knowledge of the Seller, each other Person that is party thereto is in compliance in all material respects with the terms and requirements thereof, in each case, except as would not have a Material Adverse Effect.

   
7.

Litigation. Except as set out in Schedule G.7 of the Disclosure Schedule, there are no material actions, suits, investigations, claims or proceedings pending or, to the best of the Seller’s knowledge, threatened in writing against or directly affecting any Klondex Entity by or before any Governmental Body.

   
8.

Financial Statements; Projections. All annual and interim consolidated financial statements of the Seller filed on SEDAR since January 1, 2012 are complete and correct and fairly present, in all material respects, the financial condition and results of operations of the Klondex Entities as at the times and for the periods covered by such statements, in each case in accordance with GAAP, subject, in the case of any unaudited financial statements, to normal year-end adjustments and any absence of notes. All other consolidated or other financial statements of each Klondex Entity delivered to the Buyer are complete and correct and fairly present, in all material respects, the financial condition and results of operations of such Klondex Entity as at the times and for the periods covered by such statements, in each case in accordance with GAAP, subject, in the case of any unaudited financial statements, to normal year-end adjustments and any absence of notes. Since January 1, 2012, there has been no Material Adverse Effect. All financial projections and forecasts delivered to the Buyer represent the Seller’s reasonable estimates and assumptions as to future performance, which the Seller believes to be fair and reasonable as of the time made in the light of current and reasonably foreseeable business conditions.



- 5 -

9.

Liabilities. No Klondex Entity has any material liabilities or obligations of any nature whatsoever, whether direct or indirect, matured or unmatured, known or unknown, fixed, absolute, accrued, contingent or otherwise, that are not reflected in the consolidated financial statements referred to in the first sentence of Section 8 above or in the notes thereto, other than liabilities arising in the ordinary course of business since September 30, 2013.

   
10.

Taxes. Except as disclosed in Schedule G. 10 of the Disclosure Schedule (i) each Klondex Entity has filed or caused to be filed on a timely basis all federal (United States or Canada), state, provincial and material local tax returns that were required to be filed by or with respect to it pursuant to Applicable Law, (ii) all tax returns filed by such Klondex Entity are complete and correct and comply with Applicable Law in all material respects, (iii) each Klondex Entity has paid, or made provisions for the payment of, all material Taxes that have been or could have become due for all periods covered by any tax return or otherwise, (iv) each Klondex Entity has withheld or collected and paid to the proper Governmental Body or other Person all material Taxes required to be withheld, collected or paid by it, (v) no claim has been made by any Governmental Body in a jurisdiction where any Klondex Entity does not file tax returns that such Klondex Entity is or could be subject to taxation by that jurisdiction, (vi) to the knowledge of the Seller, no tax return of any Klondex Entity is under audit by any Governmental Body, and (vii) no proceedings are pending or, to the knowledge of any Klondex Entity, threatened by or before any Governmental Body with respect to material Taxes of any Klondex Entity.

   
11.

Insurance. The properties, assets and operations of each Klondex Entity are insured with reputable insurance companies (not Affiliates of any Klondex Entity), in such amounts, with such deductibles and covering such risks as is customarily carried by companies engaged in similar businesses and owning similar properties in the localities where such Klondex Entity operates.

   
12.

Title to Collateral; Liens. Subject to Permitted Encumbrances and as set out in Schedule G.12 of the Disclosure Schedule, the Klondex Entities (i) have valid and subsisting leasehold title to all leases of real property included within the Fire Creek Property, and, following completion of the Acquisition, the Midas Property, or Collateral (including the Other Properties), (ii) have valid possessory and record title to all unpatented mining claims and millsite claims included within such Properties or Collateral (including the Other Properties), except for such claims that are leased to a Klondex Entity and are covered under part (i) of this paragraph, (iii) have good and marketable title to such other real property interests included within such Properties or Collateral (including the Other Properties) and not otherwise included under parts (i) and (ii) of this paragraph, and (iv) have good and valid title to or hold a valid leasehold interest in such properties and assets, which are not real property interests, and are included within the Collateral. There are no Encumbrances upon or with respect to any of the properties and assets included in such Properties or Collateral, except for Permitted Encumbrances. Without limiting the foregoing:


  (a)

no Person other than the Klondex Entities has any rights to participate in or operate the Fire Creek Property and the Fire Creek Project, and, following completion of the Acquisition, the Midas Property and the Midas Mine;

     
  (b)

the Fire Creek Property and the Midas Property comprise all of the real property, mineral and surface interests held by the Klondex Entities in respect of the Fire Creek Project and, following completion of the Acquisition, the Midas Mine, respectively;

     
  (c)

the Fire Creek Property and, following completion of the Acquisition, the Midas Property constitute all real property, mineral, surface interests and ancillary rights necessary for, as applicable, the construction, development and mining operations of the Fire Creek Project and the Midas Mine, respectively, as currently operated and substantially in accordance with the current or then applicable development or mine plan;



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  (d)

except as set out in Schedule G.12 of the Disclosure Schedule, none of the Fire Creek Property or, following completion of the Acquisition, the Midas Property or any Minerals produced therefrom are subject to an option, right of first refusal or right, title, interest, reservation, claim, rent, royalty, or payment in the nature of rent or royalty, or right capable of becoming an agreement, option, right of first refusal or right, title, interest, reservation, claim, rent, royalty, or payment in the nature of rent or royalty;

     
  (e)

none of the Permitted Encumbrances would have a Material Adverse Effect or otherwise materially adversely affect the ability of any Klondex Entity to enjoy the anticipated benefits of the Fire Creek Property or, following completion of the Acquisition, the Midas Property; and

     
  (f)

the Other Properties comprise all of the real property, mineral and surface interests held by the Klondex Entities other than the Fire Creek Property and as disclosed in Schedule G.12 of the Disclosure Schedule and, following completion of the Acquisition, the Midas Property.


13.

Maintenance of Property. All mining claim maintenance fees, recording fees, Taxes and all other amounts have been paid when due and payable and all other actions and all other obligations as are required to maintain the Fire Creek Property, any other properties of the Klondex Entities and, following completion of the Acquisition, the Midas Property have been taken and complied with in all material respects.

   
14.

Authorizations. The Klondex Entities have obtained or been issued all Authorizations (including environmental Authorizations and Utility Commitments) and Other Rights necessary for (i) the construction, development and mining operations of the Fire Creek Project, any other mineral project of the Klondex Entities and, following completion of the Acquisition, the Midas Mine, and (ii) the commencement and ongoing operation of commercial production transactions, other than, in each case, such Authorizations (including environmental Authorizations and Utility Commitments) and Other Rights (A) that are not necessary on the date this representation and warranty is made or deemed made for the conduct of development activities as such activities are currently being conducted, but that are expected to be obtained, in the ordinary course of business, by the time they are necessary for the conduct of development activities and the eventual commencement and ongoing commercial production, as applicable, or (B) the failure of which to be obtained would not be material to the development of the Fire Creek Project, any other mineral project of the Klondex Entities or, following completion of the Acquisition, the Midas Mine or the commencement and ongoing operation of commercial production (including commercial production transactions). There are no facts or circumstances that might reasonably be expected to adversely affect the issuance or obtaining of any such material Authorizations (including environmental Authorizations and Utility Commitments) or Other Rights.

   
15.

Compliance with Applicable Laws. Each Klondex Entity, the Fire Creek Project, any other mineral project of the Klondex Entities and, following completion of the Acquisition, the Midas Mine, is and has been in compliance in all material respects with all Applicable Laws. Without limiting the generality of the foregoing, except as set out in Schedule G.15 of the Disclosure Schedule, each Klondex Entity, the Fire Creek Project, any other mineral project of the Klondex Entities and, following completion of the Acquisition, the Midas Mine, is and has been in compliance in all material respects with all applicable Environmental Laws, and there are no actions, suits, claims, notices of violation, hearings, investigations or proceedings pending or, to the best of the Seller’s knowledge, threatened against or affecting any Klondex Entity with respect to the ownership, use, maintenance and operation of the Fire Creek Project, any other mineral project of the Klondex Entities or, following completion of the Acquisition, the Midas Mine, or the property or assets of any Klondex Entity, relating to any applicable Environmental Laws, where any adverse determination with respect thereto or liability imposed therein could have a Material Adverse Effect.



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16.

Subsidiaries; Other Ventures. Klondex BC Holdco is a direct, wholly-owned Subsidiary of Klondex, Klondex Holdings is a direct, wholly-owned Subsidiary of Klondex BC Holdco and the Fire Creek Owner is a direct, wholly-owned Subsidiary of Klondex Holdings, and, following completion of the Acquisition, Midas Holdings will be a direct, wholly-owned Subsidiary of Klondex Holdings and the Midas Owner will be a direct, wholly-owned Subsidiary of Midas Holdings. None of the Seller Entities has any other Subsidiaries or any other equity interest in any Person. No Seller Entity is engaged in any joint purchasing arrangement, joint venture, partnership or other joint enterprise with any other Person.

   
17.

Certain Indebtedness. Schedule G.17 of the Disclosure Schedule identifies as of the date hereof all Indebtedness of each Klondex Entity.

   
18.

Chief Executive Office and Other Locations. Each Klondex Entity’s chief executive office and principal place of business is set forth in Schedule G.18 of the Disclosure Schedule. Each Klondex Entity’s material Records are located at its chief executive office, and the only other offices and/or locations where it keeps the Collateral (except for inventory which is in transit) or conducts any of its business are set forth in Schedule G.18 of the Disclosure Schedule.

   
19.

No Subordination. There is no agreement, indenture, contract or instrument to which any Klondex Entity is a party or by which it or any of its properties or assets may be bound that requires the subordination in right of payment of any of the obligations of the Klondex Entity under the Transaction Documents to any other obligation of it.

   
20.

Labour Matters. There is no strike, lock-out or other work stoppage or labour dispute occurring or, to the knowledge of the Seller, threatened that would have a Material Adverse Effect.

   
21.

Employee Benefit Plans. Except as set forth in Schedule G.21 of the Disclosure Schedule, no Klondex Entity nor any of their respective Affiliates sponsors, maintains or contributes to, or at any time during the last six years has sponsored, maintained or contributed to (or been obligated to sponsor, maintain or contribute to) any Employee Benefit Plan (as defined below) that is (or was) subject to the laws of the United States of America. Each Employee Benefit Plan mandated by a Governmental Body (other than the United States of America or a constituent state thereof) or subject to the laws of a jurisdiction outside of the United States of America (“Foreign Company Plan”) that is intended to qualify for special tax treatment meets all of the requirements for such treatment and has obtained all necessary approvals of all relevant Governmental Bodies. No Foreign Company Plan has any unfunded liabilities, determined in accordance with GAAP, that have not been fully accrued on the Seller’s financial statements or that will not be fully offset by insurance. All Foreign Company Plans are registered where required by, and are in good standing under, all Applicable Laws. For purposes of this Section 21, “Employee Benefit Plan” means any employee benefit plan, program, policy or arrangement sponsored, maintained or contributed to by a Klondex Entity or any of their respective Affiliates or with respect to which the Seller, any Klondex Entity or any of their respective Affiliates has any liability or obligation.



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22.

Intellectual Property. Each Klondex Entity owns, licenses or otherwise has the right to use all material licenses, Authorizations, patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, copyright applications, franchises, authorizations and other intellectual property rights that are necessary for the operation of its business, without infringement upon or conflict with the rights of any other Person with respect thereto. No slogan or other advertising device, product, process, method, substance, part or other material now employed, or now contemplated to be employed, by any Klondex Entity infringes upon or conflicts with any rights owned by any other Person. No claim or litigation regarding any of the foregoing is pending or, to its knowledge, threatened.

   
23.

Mineral Reserves and Resources. The most recent estimated measured, indicated and inferred mineral resources and proven and probable mineral reserves, if any, and technical reports disclosed in the Seller Securities Documents (as defined below) for the Fire Creek Project, any other mineral project of the Klondex Entities and, following completion of the Acquisition, the Midas Mine, have been prepared and disclosed in accordance with accepted mining industry practices and in accordance with the requirements prescribed by National Instrument 43-101 and the companion policy thereto (as in effect on the date of publication of the relevant report or information); the Seller has no knowledge that the mineral resources or mineral reserves (or any other material aspect of any technical reports) as disclosed in the Seller Securities Documents are inaccurate in any material respect; there are no outstanding unresolved comments of any securities commission or other securities regulatory authority in each province and territory of Canada in which the Seller is a reporting issuer (the “Securities Regulatory Authorities”) in respect of the technical disclosure made in the Seller Securities Documents; and, to the knowledge of the Seller, there has been no material reduction in the aggregate amount of estimated mineral resources and reserves, if any, of the Klondex Entities, from the amounts last disclosed publicly by the Seller in the Seller Securities Documents.

   
24.

Regulatory Compliance. The Seller has filed, on a timely basis, all required reports, schedules, financial statements, forms, registrations, certifications and other documents together with any amendments required to be made with respect thereto with the Securities Regulatory Authorities and the TSX since January 1, 2012 (together with the exhibits and other information incorporated therein, the “Seller Securities Documents”) with the TSX and the Securities Regulatory Authorities and paid all fees and assessments due and payable in connection therewith; as of their respective dates of filing (or, if amended or superseded by a filing prior to the date hereof, as of the date of such filing), the Seller Securities Documents complied in all material respects with the requirements of Applicable Laws and none of the Seller Securities Documents contained any untrue statement of a material fact or omits any material fact required to be stated therein or necessary to make the statements made therein, in the light of the circumstances under which they are made, not misleading; the Seller has not filed any confidential material change reports which continue to be confidential.

   
25.

Brokers and Finders. No Klondex Entity has employed any broker or finder or incurred any liability for any brokerage fee, commission, finders’ fee or any other similar payment in connection with the transactions contemplated by this Agreement that could give rise to any claim against the Buyer for brokerage fees, commissions, finders’ fees or any other similar payments.

   
26.

Disclosure. All information relating to the business, assets, liabilities, properties or financial condition of the Seller Entities provided to the Buyer or any of its representatives or advisors, or



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26.

Disclosure. All information relating to the business, assets, liabilities, properties or financial condition of the Seller Entities provided to the Buyer or any of its representatives or advisors, or made available to the Buyer or any its representatives or advisors, is true, accurate and complete in all material respects.