<SEC-DOCUMENT>0000950123-11-034787.txt : 20110412
<SEC-HEADER>0000950123-11-034787.hdr.sgml : 20110412
<ACCEPTANCE-DATETIME>20110412083311
ACCESSION NUMBER:		0000950123-11-034787
CONFORMED SUBMISSION TYPE:	424B2
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20110412
DATE AS OF CHANGE:		20110412

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VISTA GOLD CORP
		CENTRAL INDEX KEY:			0000783324
		STANDARD INDUSTRIAL CLASSIFICATION:	GOLD & SILVER ORES [1040]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			B0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-158633
		FILM NUMBER:		11753826

	BUSINESS ADDRESS:	
		STREET 1:		7961 SHAFFER PKWY
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80127
		BUSINESS PHONE:		720-981-1185

	MAIL ADDRESS:	
		STREET 1:		7961 SHAFFER PKWY
		CITY:			LITTLETON
		STATE:			CO
		ZIP:			80127

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GRANGES INC
		DATE OF NAME CHANGE:	19950602

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GRANGES EXPLORATION LTD
		DATE OF NAME CHANGE:	19890619
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B2
<SEQUENCE>1
<FILENAME>d81345e424b2.htm
<DESCRIPTION>424B2
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Filed
    Pursuant to Rule&#160;424(b)(2)</FONT></B>
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-158633</FONT></B>
</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PROSPECTUS
    SUPPLEMENT</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>(To Prospectus dated April&#160;27, 2009)</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <IMG src="d81345d8134500.gif" alt=""><B><FONT style="font-family: 'Times New Roman', Times">
    </FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">VISTA GOLD CORP.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">9,000,000 Common
    Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are offering 9,000,000 of our common shares (which we refer
    to as the &#147;<B>Shares</B>&#148;) under this prospectus
    supplement and the accompanying base prospectus. The Shares are
    being offered pursuant to an underwriting agreement dated
    April&#160;12, 2011, as more fully described under the section
    entitled &#147;Underwriting&#148; on
    <FONT style="white-space: nowrap">page&#160;S-31</FONT>
    of this prospectus supplement, by and among us and GMP
    Securities L.P. and Wellington West Capital Markets Inc. (which
    we refer to collectively as the &#147;<B>Underwriters</B>&#148;).
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common shares are listed on the NYSE Amex (which we refer to
    as the &#147;<B>Amex</B>&#148;) and the Toronto Stock Exchange
    (which we refer to as the &#147;<B>TSX</B>&#148;), in each case
    under the symbol &#147;VGZ&#148;. The closing price of our
    common shares on April&#160;11, 2011 on the Amex was $3.65 and
    on the TSX was Cdn$3.51. Our principal executive offices are
    located at 7961 Shaffer Parkway, Suite&#160;5, Littleton,
    Colorado 80127, and its telephone number is
    <FONT style="white-space: nowrap">(720)&#160;981-1185.</FONT>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in the Shares involves risks that are described in
    the &#147;Risk Factors&#148; section beginning on
    <FONT style="white-space: nowrap">page&#160;S-12</FONT>
    of this prospectus supplement and the &#147;Risk Factors and
    Uncertainties&#148; section on page&#160;5 of the accompanying
    base prospectus dated April&#160;27, 2009 and the &#147;Risk
    Factors&#148; section of our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    as filed with the SEC and Canadian securities authorities which
    is incorporated by reference herein.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="60%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="11%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="18%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="8" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public Offering Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    3.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    29,700,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting Commission
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    0.165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1,485,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, Before Expenses, to us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    3.135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    28,215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have granted the Underwriters a
    <FONT style="white-space: nowrap">30-day</FONT>
    option from the Closing Date to purchase from us, at a price
    equal to the public offering price, less the underwriting
    commission, up to an additional 1,350,000 common shares (which
    we refer to as the &#147;<B>Additional Shares</B>&#148;), to
    cover over-allotments, if any (which we refer to as the
    &#147;<B>Over-Allotment Option</B>&#148;). See the section
    entitled &#147;Underwriting&#148; on
    <FONT style="white-space: nowrap">page&#160;S-31</FONT>
    of this prospectus supplement.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have also granted the Underwriters compensation options
    (which we refer to as the &#147;<B>Compensation
    Options</B>&#148;) to purchase a number of common shares equal
    to 5% of the number of Shares and Additional Shares sold under
    the offering at the public offering price for a period of
    24&#160;months following the Closing Date (as defined below).
    This prospectus supplement also registers the offer and sale of
    the Compensation Options and the common shares issuable upon the
    exercise of the Compensation Options. See the section entitled
    &#147;Underwriting&#148; on
    <FONT style="white-space: nowrap">page&#160;S-31</FONT>
    of this prospectus supplement. We will also reimburse the
    Underwriters for their reasonable fees and expenses including
    the reasonable legal fees and disbursements of legal counsel to
    the Underwriters.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Neither the United States Securities and Exchange Commission
    (which we refer to as the &#147;SEC&#148;) nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the adequacy or accuracy of this
    prospectus supplement or the accompanying base prospectus. Any
    representation to the contrary is a criminal offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters expect the Shares will be available for
    delivery in book-entry form through the facilities of The
    Depository Trust&#160;Company at closing, which is anticipated
    to be on or about April&#160;20, 2011 or such other date as may
    be agreed upon between us and the Underwriters (which we refer
    to as the &#147;<B>Closing Date</B>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Sole Bookrunner&#160;&#038; Co-Lead Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>Co-Lead Underwriter</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 12pt">Griffiths McBurney
    Corp.</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 12pt">Wellington West Capital<BR>
    Markets (U.S.A) Inc.</FONT></B><FONT style="font-size: 12pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The date of this prospectus supplement is April&#160;12,
    2011</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="D81345tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD colspan="5" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>PROSPECTUS SUPPLEMENT</B>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345101'>ABOUT THIS PROSPECTUS SUPPLEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345143'>NOTE REGARDING FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345102'>SUMMARY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345103'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-12
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345104'>CAUTIONARY NOTE&#160;TO UNITED STATES INVESTORS
    CONCERNING ESTIMATES OF RESOURCES AND RESERVES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345105'>CAUTIONARY NOTE&#160;TO ALL INVESTORS CONCERNING
    ECONOMIC ASSESSMENTS THAT INCLUDE INFERRED RESOURCES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345106'>PRESENTATION OF FINANCIAL INFORMATION AND
    EXCHANGE RATE DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345107'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-15
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345108'>CONSOLIDATED CAPITALIZATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345109'>SELECTED FINANCIAL DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345110'>DIVIDEND POLICY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345111'>DESCRIPTION OF COMMON SHARES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345112'>MARKET FOR COMMON SHARES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-18
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345113'>PRIOR SALES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345114'>MATERIAL UNITED STATES FEDERAL INCOME TAX
    CONSIDERATIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345115'>MATERIAL CANADIAN FEDERAL INCOME TAX
    CONSIDERATIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345116'>UNDERWRITING</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345117'>DOCUMENTS INCORPORATED BY REFERENCE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-35
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345118'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345119'>INTEREST OF EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-36
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345120'>WHERE TO FIND ADDITIONAL INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-37
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD colspan="5">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD colspan="5" align="center" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345121'><B>BASE PROSPECTUS</B></A>
</DIV>
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345122'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345123'>SUMMARY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345124'>RISK FACTORS AND UNCERTAINTIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345125'>DOCUMENTS INCORPORATED BY REFERENCE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345126'>UNCERTAINTY OF FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345127'>CAUTIONARY NOTE&#160;TO U.S. INVESTORS REGARDING
    RESERVE AND RESOURCE ESTIMATES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345128'>PRESENTATION OF FINANCIAL INFORMATION AND
    EXCHANGE RATE DATA</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345129'>RECENT DEVELOPMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345130'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345131'>RATIO OF EARNINGS TO FIXED CHARGES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345132'>DESCRIPTION OF COMMON SHARES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    21
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345133'>DESCRIPTION OF DEBT SECURITIES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345134'>DESCRIPTION OF WARRANTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345135'>DESCRIPTION OF SUBSCRIPTION RECEIPTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345136'>DESCRIPTION OF UNITS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    40
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345137'>PLAN OF DISTRIBUTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345138'>CERTAIN CANADIAN FEDERAL INCOME TAX
    CONSIDERATIONS FOR U.S. RESIDENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    43
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345139'>U.S. FEDERAL INCOME TAX CONSEQUENCES</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345140'>INTERESTS OF NAMED EXPERTS AND COUNSEL</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345141'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    52
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#D81345142'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345101'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This document is in two parts. The first part is this prospectus
    supplement, which describes the specific terms of the offering
    of the Shares and also adds to, updates and modifies information
    contained in the accompanying base prospectus and the documents
    incorporated by reference into this prospectus supplement and
    the accompanying base prospectus. The second part is the
    accompanying base prospectus, which gives more general
    information, some of which may not be applicable to this
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement relates to a registration statement
    on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    that we filed with the SEC, utilizing a shelf registration
    process. Under this shelf registration process, we may, from
    time to time, offer, sell and issue any of the securities or any
    combination of the securities described in the accompanying base
    prospectus in one or more offerings. You should read this
    prospectus supplement, the accompanying base prospectus, the
    documents incorporated into this prospectus supplement and the
    accompanying base prospectus and each free writing prospectus
    filed by us, if any, together with the information described
    under the sections entitled &#147;Where to Find Additional
    Information&#148; and &#147;Documents Incorporated by
    Reference&#148; in this prospectus supplement, and any
    additional information you may need to make your investment
    decision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained in or
    incorporated by reference into this prospectus supplement and
    the accompanying base prospectus and any free writing
    prospectus, if any, relating to this offering. We have not, and
    the Underwriters have not, authorized any other person to
    provide you with additional or different information. If anyone
    provides you with additional or different information, you
    should not rely on it. We are not, and the Underwriters are not,
    making an offer to sell these securities in any jurisdiction
    where the offer or sale is not permitted. You should assume that
    the information appearing in this prospectus supplement, the
    accompanying base prospectus, any free writing prospectus and
    the documents incorporated by reference herein and therein is
    accurate only as of the respective dates of such documents. Our
    business, financial condition, results of operations and
    prospects may have changed since those dates. Information in
    this prospectus supplement updates and modifies the information
    in the accompanying base prospectus and information incorporated
    by reference herein and therein. To the extent that any
    statement made in this prospectus supplement or any free writing
    prospectus (unless otherwise specifically indicated therein)
    differs from those in the accompanying base prospectus, the
    statements made in the accompanying base prospectus and the
    information incorporated by reference herein and therein are
    deemed modified or superseded by the statements made by this
    prospectus supplement or any free writing prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The registration statement that contains the accompanying base
    prospectus (SEC File
    <FONT style="white-space: nowrap">No.&#160;333-158633)</FONT>
    (including the exhibits filed with and the information
    incorporated by reference into the registration statement)
    contains additional important business and financial information
    about us and the shares of common stock that is not presented or
    delivered with this prospectus supplement. That registration
    statement, including the exhibits filed with the registration
    statement and the information incorporated by reference into the
    registration statement, can be read at the SEC&#146;s website,
    <U>www.sec.gov</U>, or at the SEC office mentioned under the
    section of this prospectus supplement entitled &#147;Where to
    Find Additional Information&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prospective investors should be aware that the acquisition of
    the Shares described herein may have tax consequences in the
    United States and Canada. Such consequences for investors who
    are resident in, or citizens of, the United States and Canada
    may not be described fully herein. Investors should read the tax
    discussion in this prospectus supplement under the captions
    &#147;Material United States Federal Income Tax
    Considerations&#148; and &#147;Material Canadian Federal Income
    Tax Consequences,&#148; and should consult their own tax advisor
    with respect to their own particular circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The enforcement by investors of civil liabilities under
    U.S.&#160;federal securities laws may be affected adversely by
    the fact that we are incorporated or organized under the laws of
    the Yukon Territory, Canada, that some of our officers and
    directors are residents of a foreign country, that some of the
    Underwriters and experts named in the registration statement,
    this prospectus supplement and the accompanying base prospectus
    are residents of a
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    foreign country, and that a substantial portion of our assets
    and the assets of said persons are located outside the United
    States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless stated otherwise or the context otherwise requires,
    references in this prospectus supplement and the accompanying
    base prospectus to the &#147;<B>Company</B>,&#148;
    &#147;<B>Vista</B>,&#148; &#147;<B>we</B>&#148; or
    &#147;<B>us</B>&#148; includes Vista Gold Corp. and each of its
    subsidiaries.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345143'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">NOTE&#160;REGARDING
    FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement, the accompanying base prospectus,
    any free writing prospectus and any documents that are
    incorporated by reference herein and therein, contain
    &#147;forward-looking statements&#148; and &#147;forward-looking
    information&#148; within the meaning of applicable securities
    laws. All statements, other than statements of historical facts,
    included in this prospectus supplement, the accompanying base
    prospectus, any free writing prospectus and documents
    incorporated herein and therein by reference and filed with the
    SEC and Canadian securities commissions that address activities,
    events or developments that we expect or anticipate will or may
    occur in the future are forward-looking statements and
    forward-looking information, including, but not limited to,
    statements pertaining to such things as those listed below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    proposed use of proceeds from our private placement completed in
    October 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    estimates of future operating and financial performance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential funding requirements and sources of capital;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the timing, performance and results of feasibility studies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans and anticipated effects of the holding of approximately
    34.2% of the issued and outstanding shares of Midas Gold Corp.,
    on a fully diluted basis;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing and receipt of required land use, environmental and other
    permits for the Concordia gold project and timing for completion
    of drilling and testing programs at the Concordia gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    results of the drilling program and other test results at the
    Concordia gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing and outcome for the amendment to our application for the
    Change of Forest Land Use Permit (which we refer to as the
    &#147;<B>CUSF</B>&#148;) for the Concordia gold project and the
    anticipated re-filing of the application with the Mexican
    Secretariat of the Environment and Natural Resources (which we
    refer to as &#147;<B>SEMARNAT</B>&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our belief that SEMARNAT&#146;s comments on our CUSF application
    are without legal merit or beyond the scope of SEMARNAT&#146;s
    legal authority;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our strategy for advancement of the permitting process for the
    Concordia gold project including the possible court challenge to
    SEMARNAT&#146;s notice;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans to purchase remaining surface land or obtain
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    required for the Concordia gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    capital and operating cost estimates for the Concordia gold
    project, and anticipated timing for the commencement of
    construction at the Concordia gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans for evaluation of the Mt. Todd gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    preliminary assessment and preliminary feasibility study results
    and plans for a definitive feasibility study at the Mt. Todd
    gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    production estimates and timing for gold production at the
    Concordia gold project and the Mt. Todd gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential for gold production at the Amayapampa gold project,
    timing and receipt of future payments in connection with the
    disposal of the Amayapampa gold project and status of legal
    proceedings in Bolivia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future gold prices;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future business strategy, competitive strengths, goals and
    expansion and growth of our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our potential status as a producer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans and estimates concerning potential project development,
    including matters such as schedules, estimated completion dates
    and estimated capital and operating costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans and proposed timetables for exploration programs and
    estimates of exploration expenditures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    estimates of mineral reserves and mineral resources;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential joint venture and partnership strategies in relation
    to our properties;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our future share and warrant prices and valuations prepared and
    about us and for marketable securities held by us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The words &#147;estimate&#148;, &#147;plan&#148;,
    &#147;anticipate&#148;, &#147;expect&#148;, &#147;intend&#148;,
    &#147;believe&#148;, &#147;will&#148;, &#147;may&#148; and
    similar expressions are intended to identify forward-looking
    statements and forward-looking information. These statements
    involve known and unknown risks, uncertainties, assumptions and
    other factors that may cause our actual results, performance or
    achievements to be materially different from any results,
    performance or achievements expressed or implied by such
    forward-looking statements and forward-looking information.
    These factors include risks such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    feasibility study results and preliminary assessment results and
    the accuracy of estimates on which they are based;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the economic viability of deposits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to obtain, renew or maintain the necessary
    authorizations and permits for our business, including our
    development plans and operating activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    delays in commencement of construction on the Concordia gold
    project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    status of our required governmental permits for the Concordia
    gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the amendment and re-filing of our CUSF application and the
    uncertainty regarding SEMARNAT&#146;s review of our amended CUSF
    application;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    uncertainty regarding potential court action against SEMARNAT in
    relation to the dismissal of our CUSF application and risks
    related to the outcome of such court action, including failure
    to receive approval of the CUSF application, uncertainty
    regarding our legal challenges to SEMARNAT&#146;s issues with
    our CUSF application and SEMARNAT&#146;s authority in reviewing
    our CUSF application;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    political factors influencing the approval of our CUSF
    application;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    possible impairment or write-down of the carrying value of the
    Concordia gold project if the CUSF is not granted;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    increased costs that affect our financial condition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a shortage of equipment and supplies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether our acquisition, exploration and development activities
    will be commercially successful;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    acquisition and integration issues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    trading price of our securities and our ability to raise funds
    in new share offerings due to future sales of our common shares
    in the public or private market and our ability to raise funds
    from the exercise of our warrants;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in the price of our securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the lack of dividend payments by us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the success of future joint ventures and partnerships relating
    to our properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our lack of recent production and limited experience in
    producing;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reclamation liabilities, including reclamation requirements at
    the Mt. Todd gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our history of losses from operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    historical production not being indicative of potential future
    production;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future water supply issues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    environmental lawsuits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    lack of adequate insurance to cover potential liabilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to retain and hire key personnel;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in the price of gold;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    inherent hazards of mining exploration, development and
    operating activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the accuracy of our calculation of mineral reserves, mineral
    resources and mineralized material and fluctuations therein
    based on metal prices, inherent vulnerability of the ore and
    recoverability of metal in the mining process;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in environmental regulations to which our exploration
    and development operations are subject;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in climate change regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    changes in corporate governance and public disclosure
    regulations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    uncertainty related to our receipt of future payments in
    connection with our disposal of the Amayapampa gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    intense competition in the mining industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our ability to raise additional capital on favorable terms, if
    at all;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    conflicts of interest of some of our directors as a result of
    their involvement with other natural resource companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential challenges to our title to our mineral properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    political and economic instability in Mexico and Indonesia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuation in foreign currency values;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    our likely status as a &#147;passive foreign investment
    company&#148; for U.S.&#160;federal tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For a more detailed discussion of such risks and other important
    factors that could cause actual results to differ materially
    from those in such forward-looking statements and
    forward-looking information please see the section entitled
    &#147;Risk Factors&#148; on
    <FONT style="white-space: nowrap">page&#160;S-12</FONT>
    of this prospectus supplement and the section entitled
    &#147;Risk Factors and Uncertainties&#148; on page&#160;5 of the
    accompanying base prospectus and the &#147;Risk Factors&#148;
    section in our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    as filed with the SEC and the Canadian securities authorities.
    Although we have attempted to identify important factors that
    could cause actual results to differ materially from those
    described in forward-looking
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-5
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    statements and forward-looking information, there may be other
    factors that cause results not to be as anticipated, estimated
    or intended. There can be no assurance that these statements
    will prove to be accurate as actual results and future events
    could differ materially from those anticipated in the
    statements. Except as required by law, we assume no obligation
    to publicly update any forward-looking statements and
    forward-looking information, whether as a result of new
    information, future events or otherwise. Investors should review
    our subsequent reports filed with the SEC and the Canadian
    securities authorities on
    <FONT style="white-space: nowrap">Forms&#160;10-K,</FONT>
    <FONT style="white-space: nowrap">10-Q</FONT> and
    <FONT style="white-space: nowrap">8-K</FONT> and any
    amendments thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">We
    qualify all forward-looking statements by these cautionary
    statements.</FONT></B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-6
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='D81345102'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>The following is a summary of the principal features of the
    offering and is not intended to be complete. It should be read
    together with the more detailed information and financial data
    and statements contained elsewhere in this prospectus
    supplement, the accompanying base prospectus, each free writing
    prospectus filed by us, if any, and the documents incorporated
    by reference herein and therein, including the section entitled
    &#147;Risk Factors</I>&#148; <I>in this prospectus supplement.
    Unless otherwise indicated, the information in this prospectus
    supplement assumes that the Underwriters will not exercise their
    Over-Allotment Option to purchase the Additional Shares.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vista Gold Corp. was originally incorporated on
    November&#160;28, 1983 under the name &#147;Granges Exploration
    Ltd.&#148;. In November 1983, Granges Exploration Ltd. acquired
    all the mining interests of Granges AB in Canada. On
    June&#160;28, 1985, Granges Exploration Ltd. and Pecos Resources
    Ltd. amalgamated under the name &#147;Granges Exploration
    Ltd.&#148; and on June&#160;9, 1989, Granges Exploration Ltd.
    changed its name to &#147;Granges Inc.&#148; On May&#160;1,
    1995, Granges Inc. and Hycroft Resources&#160;&#038; Development
    Corporation were amalgamated under the name &#147;Granges
    Inc.&#148; Effective November&#160;1, 1996, Granges Inc. and Da
    Capo Resources Ltd. amalgamated under the name &#147;Vista Gold
    Corp.&#148; Effective December&#160;17, 1997, Vista Gold Corp.
    was continued from British Columbia to the Yukon Territory,
    Canada under the <I>Business Corporations Act </I>(Yukon
    Territory). On September&#160;22, 2006, we entered into an
    Arrangement and Merger Agreement (the &#147;Arrangement
    Agreement&#148;) with Allied Nevada Gold Corp. (&#147;Allied
    Nevada&#148;), Carl Pescio and Janet Pescio (the
    &#147;Pescios&#148;), pursuant to which our Nevada-based mining
    properties and related assets were transferred to Allied Nevada
    and the Pescios&#146; interests in certain Nevada-based mining
    properties and related assets were transferred to Allied Nevada.
    Completion of the transaction occurred on May&#160;10, 2007. The
    current addresses, telephone and facsimile numbers of the
    offices of the Company are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B>Executive Office</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Registered and Records Office</B>
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="3" align="center" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 15pt">
    Suite&#160;5 - 7961 Shaffer Parkway
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    200 - 204 Lambert Street
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 15pt">
    Littleton, Colorado, USA 80127
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Whitehorse, Yukon Territory, Canada Y1A 3T2
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 15pt">
    Telephone:
    <FONT style="white-space: nowrap">(720)&#160;981-1185</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Telephone: (867) 667-7600
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 15pt">
    Facsimile:
    <FONT style="white-space: nowrap">(720)&#160;981-1186</FONT>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="left" valign="top">
    Facsimile: (867) 667-7885
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    of the Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are engaged in the evaluation, acquisition, exploration and
    advancement of gold exploration and potential development
    projects with the aim of adding value to the projects. Our
    approach to acquisitions of gold projects has generally been to
    seek projects within political jurisdictions with
    well-established mining, land ownership and tax laws, which have
    adequate drilling and geological data to support the completion
    of a third-party review of the geological data and to complete
    an estimate of the mineralized material (mineral resources under
    Canadian guidelines) and mineral reserves. In addition, we look
    for opportunities to improve the value of our gold projects
    through exploration drilling and re-engineering the operating
    assumptions underlying previous engineering work. In 2007, our
    board of directors and management reevaluated the corporate
    strategy regarding the process of the development of our more
    advanced projects. As a result of this reevaluation, we have
    begun moving our more advanced projects toward production by
    undertaking advanced engineering studies, including
    pre-feasibility and feasibility studies as appropriate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our holdings include the Concordia and Guadalupe de los Reyes
    gold projects in Mexico; the Mt. Todd gold project in Australia;
    the Long Valley gold project in California; the Awak Mas gold
    project in Indonesia; and claims located in Utah. We also own
    approximately 25% of the issued and outstanding shares of Zamora
    Gold Corp., a company exploring for gold in Ecuador, and
    approximately 34.2% of the issued and outstanding shares, on a
    fully-diluted basis, of Midas Gold Corp., a company exploring
    for gold in the Western United Sates. Additional information
    about these projects and share positions is available in our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, under the section
    heading &#147;Item&#160;2. Properties&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We do not produce gold and do not currently generate operating
    earnings. Through fiscal 2010, funding to acquire and explore
    gold properties and for our operations has been acquired through
    equity and debt financings
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    consisting of private placements of equity units consisting of
    common shares and warrants to purchase common shares, public
    offerings of our common shares and, in March 2008, a brokered
    private placement of convertible notes. We expect to continue to
    raise capital through additional equity
    <FONT style="white-space: nowrap">and/or</FONT> debt
    financings, and through the exercise of stock options and
    warrants. We anticipate raising funds for interim financing
    needs through various bridge loan or convertible debt
    alternatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Recent
    Developments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Vista
    Australia Preliminary Feasibility Study</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On January&#160;4, 2011, we announced the positive results of a
    new preliminary feasibility study for the Batman deposit at our
    Mt. Todd gold project designed to process all economic
    mineralization and store tailings in the existing tailings
    facility and the excess in a new tailings facility. Processing
    would be at a significantly higher daily rate than that used in
    the preliminary feasibility study announced in August 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Production
    Highlights<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="66%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="32%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
    <B>Reserves and Production Estimates at $1000/ounce Au</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proven and Probable Mineral Reserves (at a 0.40 g Au/tonne
    cut-off)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    149.9 million tonnes at 0.85 g
    Au/tonne<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Contained Gold
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    4,112,000 ounces
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Life of Mine Production
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    3,372,000 ounces
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Annual Production
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    239,500 ounces gold per year
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mining Rate
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    29.5 million tonnes per year
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mill Throughput Rate
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    30,000 tonnes per day
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Stripping Ratio (waste:ore)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    1.8
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Mine Life
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="top" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    14.08&#160;years
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Summary
    of Economic Results</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="65%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutterright -->
    <TD width="15%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=03 type=gutterright -->
    <TD width="16%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    <B>$1000/oz Au &#038;<BR>
    </B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    <B>$1350/oz Au &#038;<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt">
&nbsp;
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>$0.85/A$1.00</B>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt">
    <B>$1.00/A$1.00</B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Cash Operating Cost ($ per oz Au produced)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $520
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $587
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average Total Cash Production Costs ($ per oz Au produced)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $530
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $600
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Pre-Production Capital Cost:
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $589,583,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $675,957,000
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Sustaining Capital Cost:
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $260,522,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $261,183,000
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Internal Rate of Return
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="bottom" style="border-top: 1px solid #000000">
    13.9% before tax<BR>
    10.7% after tax
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    23.2% before tax<BR>
    16.6% after tax
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cumulative Cash Flow (pre-tax)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $964,514,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $1,860,112,000
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom" style="border-left: 1px solid #000000; padding-left: 2pt; border-top: 1px solid #000000">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Net Present Value at 5% discount (pre-tax)
</DIV>
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-top: 1px solid #000000">
    $385,336,000
</TD>
<TD style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-right: 1px solid #000000; padding-right: 2pt; border-top: 1px solid #000000">
    $944,470,000
</TD>
</TR>
<TR style="font-size: 1pt">
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notes:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">See the technical report entitled
    &#147;10.65 MTPY Preliminary Feasibility Study, Mt. Todd Gold
    Project, Northern Territory Australia&#148; dated
    January&#160;28, 2011 (the &#147;Preliminary Feasibility
    Study&#148;) prepared by or under the supervision of
    Mr.&#160;John Rozelle, Steven Krajewski, Edwin C. Lips, and D.
    Erik Spiller of Tetra Tech MM, Inc., Thomas Dyer of Mine
    Development Associates Inc., and Deepak Malhotra of Resource
    Development Inc., each an independent qualified person.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Preliminary Feasibility Study
    reports the estimated proven mineral reserves to be 48,961,000
    tonnes at an average grade of 0.91 grams gold per tonne with
    1,431,000 ounces contained gold and the estimated probable
    mineral reserves to be 100,914,000 tonnes at an average grade of
    0.83 grams gold per tonne with 2,681,000 ounces contained gold.
    The combined proven and probable reserve estimate is reported as
    149,875,000 tonnes at an average grade of 0.85 grams gold per
    tonne with 4,112,000 ounces contained in gold.
    </FONT></TD>
</TR>

</TABLE>
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    <BR>
    S-8
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Listing
    of Warrants on the TSX; Filing of Resale Registration
    Statement</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On March&#160;2, 2011, we announced that the 15,308,044 warrants
    issued on December&#160;15, 2010 in connection with our private
    placement of special warrants, began trading March&#160;1, 2011
    on the TSX under the symbol VGZ.WT.U. (subsequently changed to
    VGZ.WT.S on March&#160;14, 2011).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The warrants are freely tradable in Canada, except to, or for
    the account or benefit, of any U.S.&#160;person (as defined in
    Regulation&#160;S under the United States Securities Act of
    1933, as amended (which we refer to as the
    &#147;<B>U.S.&#160;Securities Act</B>&#148;)) or person in the
    United States. Neither the warrants nor the common shares
    issuable upon exercise of the warrants have been registered
    under the U.S.&#160;Securities Act, or any state securities laws
    of any state of the United States. Accordingly, the warrants and
    the common shares issuable upon exercise thereof may not be
    offered or sold in the United States or to, or for the account
    or benefit of, any U.S.&#160;person or any person in the United
    States absent registration under the U.S.&#160;Securities Act or
    an applicable exemption from such registration requirements and
    in accordance with all applicable state securities laws of any
    state of the United States. Purchasers of the warrants or the
    common shares issuable upon exercise thereof may not engage in
    hedging transactions with regard to the warrants or the common
    shares issuable upon the exercise thereof unless in compliance
    with the U.S.&#160;Securities Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On March&#160;16, 2011 we announced that on March&#160;15, 2011,
    we filed a resale registration statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    (SEC File
    <FONT style="white-space: nowrap">No.&#160;333-172826)</FONT>
    with the SEC. The registration statement registers for resale
    common shares, warrants and common shares issuable upon the
    exercise of warrants held by certain securityholders named in
    the registration statement. The selling securityholders are
    under no obligation to sell the securities. The registration
    statement also registers the issuance by us of common shares
    underlying the warrants to holders that purchase the warrants
    pursuant to the resale registration statement, if and when it
    becomes effective. We will not receive any proceeds from the
    resale of the securities, other than proceeds relating to the
    exercise of warrants, if those warrants are exercised.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We agreed to file the resale registration statement pursuant to
    the terms of our October&#160;22, 2010 private placement of
    14,666,739 special warrants. The special warrants were issued to
    the selling securityholders at a purchase price of $2.30 per
    special warrant for aggregate gross proceeds to us of
    $33,733,500. Following approval of the private placement by our
    shareholders at a special meeting held on December&#160;15,
    2010, each special warrant was automatically exercised, for no
    additional consideration, for one common share and one common
    share purchase warrant. In addition, we issued a total of
    641,305 special warrants and 630,436 compensation warrants to
    the agents and finders that provided services to us in
    connection with the private placement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Repayment
    of Notes</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On March&#160;7, 2011, we announced that we repaid the
    $23,000,000 principal amount of 10%&#160;senior secured notes
    (plus accrued interest) which matured on March&#160;4, 2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Combination
    Agreement with Midas Gold</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On, April&#160;6, 2011, we announced the completion of our
    previously announced combination involving Midas Gold, Inc., our
    wholly owned subsidiary, Vista Gold U.S.&#160;Inc. and Vista
    Gold US Inc.&#146;s wholly owned subsidiary, Idaho Gold
    Resources, LLC. As part of the combination, each of Midas Gold,
    Inc. Vista Gold U.S.&#160;Inc. and Idaho Gold Resources, LLC
    contributed their respective gold assets in the Yellow
    Pine-Stibnite District in Idaho to a new Canadian private
    company named Midas Gold Corp. In exchange for the contribution
    of its Yellow Pine assets, Vista Gold U.S.&#160;Inc. was issued
    30,402,615 common shares in the capital of Midas Gold Corp.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Concurrently with the combination, Midas Gold Corp. completed a
    private placement of 6,129,800 common shares at a purchase price
    of Cdn$2.50 to raise gross proceeds of Cdn$15,324,500. We
    purchased an additional 1,400,000 common shares of Midas Gold
    Corp. through the placement for an aggregate purchase price of
    Cdn.$3,500,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Following the combination and the private placement we and Vista
    Gold US together hold 31,802,615 common shares of Midas Gold
    Corp. representing 37.4% (basic) and 34.2% (fully diluted basis)
    of the issued and outstanding common shares of Midas Gold Corp.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-9
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>The following is a brief summary of certain terms of this
    offering and is not intended to be complete. It does not contain
    all of the information that will be important to a holder of
    Shares. For a more complete description of our common shares,
    see the section entitled &#147;Description of Common
    Shares&#148; in this prospectus supplement and the accompanying
    base prospectus.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="37%"></TD>
    <TD width="1%"></TD>
    <TD width="62%"></TD>
</TR>

<TR>
    <TD valign="top">
    <B>Issuer:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Vista Gold Corp.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Offering:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    9,000,000&#160;Shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Amount:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Cdn$29,700,000</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Price to the Public:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Cdn$3.30 per Share</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Over-Allotment Option:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    We have granted the Underwriters an Over-Allotment Option,
    exercisable in whole or in part at any time within 30&#160;days
    from the Closing Date, to purchase at the offering price up to
    1,350,000 Additional Shares (15% of the Shares issued under the
    offering) to cover over-allotments, if any.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Common
    Shares&#160;Outstanding<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>:</B> </TD>

    <TD></TD>
    <TD valign="bottom">
    Prior to the offering: 62,019,494 common shares</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    After the offering: 71,019,494 common
    shares<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></TD>

</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Underwriters Commission:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    We have agreed to pay the Underwriters a commission equal to
    Cdn$0.165 for each Share sold pursuant to the offering. We have
    also granted the Underwriters Compensation Options to purchase
    5% of the number of Shares sold under the offering (including
    any Shares sold pursuant to the Over-Allotment Option) at the
    public offering price for a period of 24&#160;months following
    the Closing Date. See the section entitled
    &#147;Underwriting&#148; in this prospectus supplement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Use of Proceeds:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    The net proceeds from the sale of the Shares in the offering are
    estimated to be approximately Cdn$27.8&#160;million
    (approximately Cdn$32.0&#160;million if the Over-Allotment
    Option is exercised in full), based on the offering price of
    Cdn$3.30 per Share and after deducting the underwriting
    commission and estimated offering expenses. We intend to use the
    net proceeds from the offering (i)&#160;to advance the Mt. Todd
    gold project in Australia, including: completing a bankable
    feasibility study, completing the environmental permitting
    process, undertaking continued exploration programs on
    Vista&#146;s exploration tenements, recruiting and hiring key
    project personnel and continuing to fulfill our obligations as
    the managers of the Mt. Todd mine site, (ii)&#160;to advance the
    Guadalupe de los Reyes gold-silver project in Mexico by
    completing the planned exploration program and conducting
    additional drilling based on the results of the 2011 program,
    (iii)&#160;to complete the current permitting process at the
    Concordia gold project in Mexico, and (iv)&#160;for corporate
    administration, and to use any remaining net proceeds of the
    offering, including the net proceeds from the exercise of the
    Over-Allotment Option, if any, and the Compensation Options, for
    acquisitions, and further development of acquired mineral </TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="37%"></TD>
    <TD width="1%"></TD>
    <TD width="62%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    properties, working capital requirements and/or for other
    general corporate purposes. See the section entitled &#147;Use
    of Proceeds&#148; in this prospectus supplement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Risk Factors:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    <B>Investing in the Shares involves risks that are described in
    the &#147;Risk Factors&#148; section beginning on
    <FONT style="white-space: nowrap">page&#160;S-12</FONT>
    of this prospectus supplement, the &#147;Risk Factors and
    Uncertainties&#148; section on page&#160;5 of the accompanying
    base prospectus and the &#147;Risk Factors&#148; section of our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    as filed with the SEC and Canadian securities authorities.</B></TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Tax Considerations:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Purchasing the Shares may have tax consequences in the United
    States and Canada. This prospectus supplement and the
    accompanying base prospectus may not describe these consequences
    fully for all investors. Investors should read the tax
    discussion in this prospectus supplement and consult with their
    tax advisor. See the sections entitled &#147;Material United
    States Federal Income Tax Considerations&#148; and
    &#147;Material Canadian Federal Income Tax Considerations&#148;
    in this prospectus supplement.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    <B>Listing Symbol:</B> </TD>
    <TD></TD>
    <TD valign="bottom">
    Our common shares are listed for trading on the Amex and the
    TSX, in each case under the symbol &#147;VGZ.&#148;</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notes:
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">These figures do not include
    options outstanding to purchase up to 2,472,619 common shares at
    a weighted average exercise price of $3.62 per share, 175,500
    common shares underlying unvested restricted stock units with a
    weighted average grant date fair value of $2.37 per share and a
    vesting date of September&#160;13, 2011, and warrants
    outstanding to purchase up to 15,938,480 common shares at a
    weighted average exercise price of $3.45.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">To the extent any such options or
    warrants are exercised, new options are issued under our equity
    incentive plans, or we otherwise issue additional common shares
    or securities exercisable for or convertible into common shares,
    there will be future dilution to new investors. As of the date
    of this prospectus supplement, there are 3,553,830 common shares
    available for issuance under our equity incentive plans.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">If the Over-Allotment Option is
    exercised in full, 72,369,494 common shares will be outstanding
    after this offering.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
</DIV><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345103'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investing in the Shares involves a high degree of risk.
    Prospective investors should carefully consider the following
    risks, as well as the other information contained in this
    prospectus supplement, the accompanying base prospectus and the
    documents incorporated by reference herein and therein before
    investing in the Shares. If any of the following risks actually
    occurs, our business could be harmed. The risks and
    uncertainties described below are not the only ones we face.
    Additional risks and uncertainties, including those of which we
    are currently unaware or those that are deemed immaterial, may
    also adversely affect our business, financial condition, cash
    flows, prospects and the price of our common shares.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a short description of the risks and
    uncertainties which are more fully described under the section
    entitled &#147;Risk Factors&#148; in our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010 as filed with the SEC
    on March&#160;14, 2011 and incorporated by reference in this
    prospectus supplement (see the section entitled &#147;Documents
    Incorporated by Reference&#148; in this prospectus supplement)
    and under the section entitled &#147;Risk Factors and
    Uncertainties&#148; in the accompanying base prospectus:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Feasibility study results and preliminary assessment results are
    based on estimates that are subject to uncertainty;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The economic viability of a mineral deposit is based on many
    factors that are subject to uncertainty;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We require certain governmental authorizations and permits for
    our business, including our development plans and operating
    activities. We could incur substantial costs or disruptions to
    our business if we cannot obtain, renew or maintain the
    necessary authorizations and permits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    There may be delays in commencement of construction on the
    Concordia gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    There may be delays in obtaining the CUSF for the Concordia gold
    project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Failure to secure permits for the Concordia gold project could
    negatively impact our mineral reserves;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Increased costs could affect our financial condition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    A shortage of equipment and supplies could adversely affect our
    ability to operate our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We cannot be certain that our acquisition, exploration and
    development activities will be commercially successful;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Acquisitions and integration issues may expose us to risks;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The issuance of additional common shares may negatively impact
    the trading price of our securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The price of our securities may fluctuate and may result in
    losses to investors;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We have never declared dividends;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Joint ventures and other partnerships in relation to our
    properties may expose us to risks;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We have no history of producing metals from our current mineral
    properties and limited recent experience with producing mines;
    there can be no assurance that we will successfully establish
    mining operations or profitably produce precious metals;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our continuing historical reclamation obligations at the Mt.
    Todd gold project and our reclamation requirements on our other
    properties could require significant additional expenditures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We have a history of losses and may incur losses in the future;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Historical production of gold at our Mt. Todd gold project may
    not be indicative of the potential for future development or
    revenue;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We cannot assure you that we will have an adequate supply of
    water to complete desired exploration or development of our
    mining properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We could be subject to environmental lawsuits;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We do not insure against all risks to which we may be subject in
    our planned operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    If we fail to hire and retain our key personnel, it may have an
    adverse effect on our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    The price of gold is subject to fluctuations, which could
    adversely affect the realizable value of our assets and
    potential future results of operations and cash flow;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Mining exploration, development and operating activities are
    inherently hazardous;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Calculations of mineral reserves and of mineral resources are
    estimates only, subject to uncertainty due to factors including
    metal prices, inherent variability of the ore, and
    recoverability of metal in the mining process;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our exploration and development operations are subject to
    environmental regulations, which could result in us incurring
    additional costs and operational delays;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Regulations and pending legislation governing issues involving
    climate change could result in increased operating costs, which
    could have a material adverse effect on our business;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our business is subject to evolving corporate governance and
    public disclosure regulations that have increased both our
    compliance costs and the risk of noncompliance, which could have
    an adverse effect on the price of our securities;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our receipt of future payments in connection with our disposal
    of the Amayapampa gold project is subject to uncertainty;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We face intense competition in the mining industry;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We may be unable to raise additional capital on favourable terms;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Some of our directors may have conflicts of interest as a result
    of their involvement with other natural resource companies;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    There may be challenges to our title to our mineral properties;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our property interests in Mexico and Indonesia are subject to
    risks from political and economic instability in those countries;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    Our financial position and results are subject to fluctuations
    in foreign currency values;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    We are likely a &#147;passive foreign investment company&#148;
    which will likely have adverse U.S.&#160;federal income tax
    consequences for U.S.&#160;shareholders;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    It may be difficult to enforce judgments or bring actions
    outside the United States against us and certain of our
    directors and officers.
</TD>
</TR>

</TABLE>

<A name='D81345104'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    NOTE&#160;TO UNITED STATES INVESTORS CONCERNING<BR>
    ESTIMATES OF RESOURCES AND RESERVES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The terms &#147;mineral reserve,&#148; &#147;proven mineral
    reserve&#148; and &#147;probable mineral reserve&#148; are
    Canadian mining terms as defined in accordance with Canadian
    National Instrument
    <FONT style="white-space: nowrap">43-101&#151;Standards</FONT>
    of Disclosure for Mineral Projects (&#147;<B>NI
    <FONT style="white-space: nowrap">43-101</FONT></B>&#148;)
    and the Canadian Institute of Mining, Metallurgy and Petroleum
    (the &#147;<B>CIM</B>&#148;)&#151;<I>CIM Definition Standards on
    Mineral Resources and Mineral Reserves</I>, adopted by the CIM
    Council, as amended (the &#147;<B>CIM Definition
    Standards</B>&#148;). These definitions differ from the
    definitions in SEC Industry Guide 7 under the
    U.S.&#160;Securities Act. Under SEC Industry Guide 7 standards,
    a &#147;final&#148; or &#147;bankable&#148; feasibility study is
    required to report reserves, the three-year historical average
    price is used in any reserve or cash flow
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    analysis to designate reserves and the primary environmental
    analysis or report must be filed with the appropriate
    governmental authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, the terms &#147;mineral resource,&#148;
    &#147;measured mineral resource,&#148; &#147;indicated mineral
    resource&#148; and &#147;inferred mineral resource&#148; are
    defined in and required to be disclosed by NI
    <FONT style="white-space: nowrap">43-101;</FONT>
    however, these terms are not defined terms under SEC Industry
    Guide 7 and are normally not permitted to be used in reports and
    registration statements filed with the SEC. Investors are
    cautioned not to assume that any part or all of the mineral
    deposits in these categories will ever be converted into
    reserves. &#147;Inferred mineral resources&#148; have a great
    amount of uncertainty as to their existence, and great
    uncertainty as to their economic and legal feasibility. It
    cannot be assumed that all, or any part, of an inferred mineral
    resource will ever be upgraded to a higher category. Under
    Canadian rules, estimates of inferred mineral resources may not
    form the basis of feasibility or pre-feasibility studies, except
    in rare cases. Investors are cautioned not to assume that all or
    any part of an inferred mineral resource exists or is
    economically or legally mineable. Disclosure of &#147;contained
    ounces&#148; in a resource is permitted disclosure under
    Canadian regulations; however, the SEC normally only permits
    issuers to report mineralization that does not constitute
    &#147;reserves&#148; by SEC standards as in place tonnage and
    grade without reference to unit measures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Accordingly, information contained in this prospectus
    supplement, the accompanying base prospectus, any free writing
    prospectus and the documents incorporated by reference herein
    and therein contain descriptions of our mineral deposits that
    may not be comparable to similar information made public by
    U.S.&#160;companies subject to the reporting and disclosure
    requirements under United States federal securities laws and the
    rules and regulations promulgated thereunder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Further, the term &#147;mineralized material&#148; as used in
    this prospectus supplement, although permissible under SEC
    Industry Guide 7, does not indicate &#147;reserves&#148; by SEC
    standards. We cannot be certain that any part of the mineralized
    material will ever be confirmed or converted into SEC Industry
    Guide 7 compliant &#147;reserves&#148;. Investors are cautioned
    not to assume that all or any part of the mineralized material
    will ever be confirmed or converted into reserves or that
    mineralized material can be economically or legally extracted.
</DIV>

<A name='D81345105'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    NOTE&#160;TO ALL INVESTORS CONCERNING<BR>
    ECONOMIC ASSESSMENTS THAT INCLUDE INFERRED RESOURCES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Mineral resources that are not mineral reserves have no
    demonstrated economic viability. The preliminary assessments on
    the Mt. Todd, Awak Mas, Yellow Pine and Long Valley gold
    projects are preliminary in nature and include &#147;inferred
    mineral resources&#148; that are considered too speculative
    geologically to have economic considerations applied to them
    that would enable them to be categorized as mineral reserves.
    There is no certainty that the preliminary assessments at the
    Mt. Todd, Awak Mas, Yellow Pine and Long Valley gold projects
    will ever be realized.</B>
</DIV>

<A name='D81345106'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PRESENTATION
    OF FINANCIAL INFORMATION AND EXCHANGE RATE DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We present our consolidated financial statements in United
    States dollars. All references in this prospectus supplement to
    &#147;dollars,&#148; &#147;$&#148; are to United States dollars,
    all references to &#147;Cdn$&#148; are to Canadian dollars,
    unless otherwise noted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as otherwise indicated, all financial statements and
    financial data contained in, or incorporated by reference into,
    this prospectus supplement, the accompanying base prospectus and
    any free writing prospectus filed by us have been prepared in
    accordance with Canadian generally accepted accounting
    principles (&#147;<B>GAAP</B>&#148;), which differ in certain
    significant respects from U.S.&#160;GAAP. For a description of
    the material differences between Canadian GAAP and
    U.S.&#160;GAAP as they relate to our financial statements, see
    note&#160;20 to our audited consolidated financial statements as
    at December&#160;31, 2010 and 2009 and for the years ended
    December&#160;31, 2010, 2009 and 2008, contained in our annual
    report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    which is incorporated by reference into this prospectus
    supplement and the accompanying base prospectus.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth, for each period indicated, the
    exchange rates of the Canadian dollar to the U.S.&#160;dollar
    for the end of each period indicated and the high, low and
    average exchange rates for each of such periods (such rates,
    which are expressed in Canadian dollars are based on the noon
    buying rates for U.S.&#160;dollars reported by the Bank of
    Canada).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" align="center" valign="bottom">
    <B>Year Ended December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.0778
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.3000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.2969
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    0.9946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.0292
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    0.9719
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.0299
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.1420
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.0660
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    End of Period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    0.9946
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.0466
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.2246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;11, 2011, the noon buying rate reported by the
    Bank of Canada was $1.00 = Cdn$0.9547
</DIV>

<A name='D81345107'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The net proceeds from the sale of the Shares in the offering are
    estimated to be approximately Cdn$27.8&#160;million, based on an
    offering price of Cdn$3.30 per Share and after deducting the
    underwriting commissions and estimated offering expenses
    (Cdn$32.0&#160;million if the Over-Allotment Option is exercised
    in full).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We intend to use the net proceeds from the offering as follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="7%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (i)&#160;&#160;
</TD>
    <TD align="left">
    approximately Cdn$17&#160;million to advance the Mt. Todd gold
    project in Australia, including: completing a bankable
    feasibility study, completing the environmental permitting
    process, undertaking continued exploration programs on
    Vista&#146;s exploration tenements, recruiting and hiring key
    project personnel and continuing to fulfill our obligations as
    the managers of the Mt. Todd mine site;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (ii)&#160;
</TD>
    <TD align="left">
    approximately Cdn$5&#160;million to advance the Guadalupe de los
    Reyes gold-silver project in Mexico by completing the planned
    exploration program and conducting additional drilling based on
    the results of the 2011 program;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (iii)&#160;
</TD>
    <TD align="left">
    approximately Cdn$3&#160;million to complete the current
    permitting process at the Concordia gold project in Mexico;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (iv)&#160;
</TD>
    <TD align="left">
    approximately Cdn$2.8&#160;million for corporate
    administration;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (v)&#160;&#160;
</TD>
    <TD align="left">
    to use any remaining net proceeds of the offering, including the
    net proceeds from the exercise of the Over-Allotment Option, if
    any, and the Compensation Options, for acquisitions, and further
    development of acquired mineral properties, working capital
    requirements
    <FONT style="white-space: nowrap">and/or</FONT> for
    other general corporate purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The actual amount that we spend in connection with each of the
    intended uses of proceeds may vary significantly from the
    amounts specified above, and will depend on a number of factors,
    including those described in the &#147;Risk Factors&#148;
    sections beginning on
    <FONT style="white-space: nowrap">page&#160;S-12</FONT>
    of this prospectus supplement, the &#147;Risk Factors and
    Uncertainties&#148; section on page&#160;5 of the accompanying
    base prospectus and the &#147;Risk Factors&#148; section in our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    as filed with the SEC and the Canadian securities authorities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until such time as the net proceeds of the offering are used as
    described above, we intend to invest the net proceeds primarily
    in short-term Federal Deposit Insurance Corporation insured
    certificates of deposit or other substantially similar secure
    deposits. Interest earned will be retained by us and used in the
    same manner as net proceeds from the sale of the Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As we advance our business plan, we may, from time to time,
    issue additional common shares or other securities by filing one
    or more additional prospectus supplements to the accompanying
    base prospectus and through other offerings of securities.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Depending on opportunities, economic conditions and the results
    of the activities described above we may use a portion of the
    use of proceeds allocated above to invest in property
    acquisitions or complete other corporate activities designed to
    achieve our corporate goal of becoming a mid-tier producer.
    Estimated costs and the scope of activities cannot be determined
    at this time.
</DIV>

<A name='D81345108'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CONSOLIDATED
    CAPITALIZATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Since December&#160;31, 2010, we have issued 99,742 common
    shares upon the exercise of outstanding options and 200,000
    common share purchase warrants have expired. On March&#160;7,
    2011, we repaid our $23,000,000 principal amount of convertible
    notes (plus accrued interest) which matured on March&#160;4,
    2011.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth our cash and cash equivalents and
    consolidated capitalization as at December&#160;31, 2010 on an
    actual basis and as adjusted to give effect to the distribution
    of the Shares offered hereunder after deducting the
    Underwriters&#146; commission and the estimated expenses of the
    offering payable by us (assuming no exercise of the
    Over-Allotment Option) and the application of the net proceeds
    from the offering as described under the section entitled
    &#147;Use of Proceeds&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The table should be read in conjunction with our audited annual
    consolidated financial statements for the year ended
    December&#160;31, 2010, including the notes thereto, and the
    management&#146;s discussion and analysis thereof, which are
    incorporated in each case by reference in this prospectus
    supplement and the accompanying base prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="41%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="27%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>As at December&#160;31, 2010<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>after giving effect to the<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>issuance of the Shares and<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>As at December&#160;31, 2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>repayment of
    notes<SUP style="font-size: 85%; vertical-align: top">(2)</SUP></B>

</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="center" valign="bottom">
    (in thousands, except for share amounts)
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $39,838
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $45,457
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Outstanding share
    capital<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $274,829
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $303,948
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    (unlimited authorized)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    (61,919,752&#160;Shares)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    (70,919,752&#160;Shares)
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deficit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $(202,673)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $(202,673)
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total shareholder&#146;s equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $96,307
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $125,426
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" style="border-top: 3px double #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 18%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">These figures do not include
    options outstanding to purchase up to 2,588,661 common shares at
    a weighted average exercise price of $3.55 per share, 175,500
    common shares underlying unvested restricted stock units with a
    weighted average grant date fair value of $2.37 per share and a
    vesting date of September&#160;13, 2011, and warrants
    outstanding to purchase up to 16,138,480 common shares at a
    weighted average exercise price of $3.48. These figures do not
    include 99,742 common shares issued upon exercise of options
    since December&#160;31, 2010.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Includes the repayment of our
    $23,000,000 principal amount of notes (plus accrued interest)
    which matured on March&#160;4, 2011. These figures do not
    include the exercise of the Over-Allotment Option or the
    exercise of the Compensation Options.
    </FONT></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345109'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">SELECTED
    FINANCIAL DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The selected financial data in the table below have been
    selected in part, from our consolidated financial statements,
    which have been prepared in accordance with Canadian GAAP, which
    differs in certain respects from U.S.&#160;GAAP. Therefore, our
    financial data contained in or incorporated by reference into
    this prospectus supplement and the accompanying base prospectus
    may not be comparable to the financial data of United States
    companies. The selected financial data is not intended to
    replace the consolidated financial statements included in our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010 which is incorporated
    by reference herein.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>SELECTED FINANCIAL DATA<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>Year Ended December&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2007<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2010</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2009</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>(restated)(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="10" nowrap align="center" valign="bottom">
    <B>(U.S. dollars in thousands, except per share data)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>OPERATING DATA</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loss from continuing operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,646)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,231)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,359)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (7,882)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,919)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Future income tax benefit/(expense)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (711)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (320)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,051
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loss from continuing operations after income tax
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,614)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,942)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,679)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,831)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,919)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Loss from discontinued operations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (294)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (6,319)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2,252)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Net loss
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,614)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (1,942)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (9,973)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (13,150)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (4,171)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Basic and diluted loss per share
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.20)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.05)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.29)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.41)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (0.16)
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Weighted number of shares outstanding
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    47,335,571
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    37,268,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34,338,352
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32,371,609
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,142,324
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 9pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    <B>BALANCE SHEET DATA</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    39,838
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    28,408
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,266
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,686
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    48,698
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Marketable securities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,703
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,150
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,153
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    791
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Short-term investments
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other current assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,084
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    509
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    593
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    380
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,154
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 12pt">
    Current Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    42,625
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    22,012
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    27,948
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,643
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Mineral Properties
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    54,195
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    38,696
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30,407
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,052
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    31,749
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Amayapampa disposal consideration
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Plant and equipment
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,809
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,747
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    18,533
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    467
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,130
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Prepaid transaction costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,841
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other long-term receivables
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    166
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Reclamation premium costs and other assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,882
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Assets held for sale
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,813
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total Assets
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    120,442
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,573
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75,765
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,346
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    92,731
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Current liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    926
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    694
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    893
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Capital lease obligations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Asset retirement obligation and closure costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,688
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Convertible notes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,939
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    23,496
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Other long-term liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    228
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    --
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    26,093
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    24,527
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    694
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,604
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -8pt; margin-left: 8pt">
    Total Shareholders&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    96,307
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    66,480
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    51,238
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50,652
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    87,127
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Effective September&#160;30, 2008,
    we adopted the Emerging Issues Committee Abstract 172
    (&#147;<B>EIC 172</B>&#148;), &#147;Income Statement
    Presentation of a Tax Loss Carryforward Recognized Following an
    Unrealized Gain in Other Comprehensive Income.&#148; EIC 172
    provides guidance on whether the tax benefit from the
    recognition of previously unrecognized tax loss carryforwards
    consequent to the recording of unrealized gains in other
    comprehensive income, such as unrealized gains on
    <FONT style="white-space: nowrap">available-for-sale</FONT>
    financial assets, should be recognized in net income or in other
    comprehensive income. EIC 172 should be applied retrospectively,
    with restatement of prior periods from January&#160;1, 2007, the
    date of adoption of CICA Section&#160;3855, &#147;Financial
    Instruments&#160;- Recognition and Measurement.&#148; The
    adoption of EIC 172 resulted in a reclassification of
    US$1,132,000 of income tax recovery from the accumulated other
    comprehensive income balance to the accumulated
    </FONT></TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">deficit as of December&#160;31,
    2007, which included US$80,000 arising on adoption of the
    standard. It also decreased our loss for the year ended
    December&#160;31, 2007 by US$1,051,000.
    </FONT></TD>
</TR>

</TABLE>

<A name='D81345110'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DIVIDEND
    POLICY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have never declared or paid any dividends on our common
    shares. Our current intention is to retain our earnings, if any,
    to finance the growth and development of our business and we do
    not expect to pay dividends or to make any other distributions
    in the near future. Our board of directors will review this
    policy from time to time having regard to our financing
    requirements, financial condition and other factors considered
    to be relevant.
</DIV>

<A name='D81345111'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are authorized to issue an unlimited number of common shares,
    without par value, of which 62,019,494 are issued and
    outstanding as at the date of this prospectus supplement. There
    are options outstanding to purchase up to 2,472,619 common
    shares at a weighted average exercise price of $3.62 per share,
    175,000 common shares underlying unvested restricted stock units
    with a weighted average grant date fair value of $2.87 per share
    and a vesting date of September&#160;13, 2011, and warrants
    outstanding to purchase up to 15,938,480 common shares at a
    weighted average exercise price of $3.45 per share. Holders of
    common shares are entitled to one vote per common share at all
    meetings of shareholders, to receive dividends as and when
    declared by our board of directors and to receive a pro rata
    share of our assets available for distribution to the
    shareholders in the event of liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up.</FONT>
    There are no pre-emptive, conversion or redemption rights
    attached to the common shares.
</DIV>

<A name='D81345112'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">MARKET
    FOR COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common shares are listed on the Amex and the TSX in each
    case under the symbol &#147;VGZ&#148;. The majority of the
    trading of our common shares takes place on the Amex. The
    following table sets out the reported high and low sale prices
    and volume of sales traded by month for the periods indicated in
    the United States composite market, including on the Amex, and
    in the Canadian market on the TSX.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="24%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="12" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>U.S. Composite&#160;($)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Month</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Volume</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2010</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,390,935
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.47
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,801,317
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.93
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.60
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,260,450
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.71
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,918,987
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,702,861
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.03
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,810,556
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,700,974
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.63
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11,438,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13,146,564
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2011</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.39
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16,503,387
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,774,424
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    20,815,508
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April 1 to 11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.55
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,415,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;11, 2011, the closing price of our common shares
    on the Amex was $3.65 per common share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="25%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="20%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="12" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>TSX (Cdn$)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Month</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Volume</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2010</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.04
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    322,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.80
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    519,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.01
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    318,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    July
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.72
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    282,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    August
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.54
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.33
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,003,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.70
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.07
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    988,300
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.95
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.46
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    745,500
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.59
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.65
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    923,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    932,400
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2011</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.40
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,466,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.16
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.53
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    731,800
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.86
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,624,900
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April 1 to 11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    363,210
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;11, 2011, the closing price of the common shares
    on the TSX was Cdn$3.51 per common share.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    15,308,044&#160;common share purchase warrants issued on
    December&#160;15, 2010 began trading on the TSX on March&#160;1,
    2011 under the symbol VGZ.WT.U (subsequently changed to VGZ.WT.S
    on March&#160;14, 2011). The following table sets out the
    reported high and low sale prices and volume of sales traded by
    month for the periods indicated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="23%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="21%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="12" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>TSX (Cdn$)</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Month</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Volume</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><U>2011</U></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    55,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April 1 to 11
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    19,700
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;11, 2011, the closing price of the common share
    purchase warrants on the TSX was Cdn$1.30 per common share
    purchase warrant.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    S-19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345113'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PRIOR
    SALES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth, for the
    <FONT style="white-space: nowrap">12-month</FONT>
    period prior to the date of this prospectus supplement, details
    of the price at which securities have been issued by us, the
    number and type of securities issued and the date on which such
    securities were issued.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="21%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=03 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=04 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="17%">&nbsp;</TD>	<!-- colindex=05 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Issue or Exercise Price<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    <B>Description of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Date of Issue</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Type of Securities</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>No. of Securities</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Security</B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Transaction</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;8, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    9,200
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.14
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;7, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    34,169
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.14
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;6, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    6,631
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.14
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;30, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    30,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.24
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;29, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    5,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $3.22
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;28, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    10,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $1.77
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;25, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    4,742
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $3.55
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    15,308,044
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Nil<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Conversion of Special Warrants
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Common Share Purchase Warrants
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    15,308,044
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $3.50-$5.00<SUP style="font-size: 85%; vertical-align: top">(1)(2)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Conversion of Special Warrants
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Stock Options
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    30,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.53
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Grant of Stock Options
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;20, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    25,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $1.77
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Stock Options
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    75,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.90
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Grant of Stock Options
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October&#160;22, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Special Warrants
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    15,308,044<SUP style="font-size: 85%; vertical-align: top">(1)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.30
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Private Placement
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October&#160;22, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Compensation Warrants
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    630,436<SUP style="font-size: 85%; vertical-align: top">(3)</SUP>

</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.30
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Broker Compensation Warrants
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;15, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Restricted Stock Units
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    175,500
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Nil
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Grant of Restricted Stock Units
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;10, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    5,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $1.77
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Option Exercise
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May&#160;19, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    1,581,488
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Nil
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Early extinguishment of convertible notes
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May&#160;19, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Common Shares
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    321,196
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Nil
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Interest payment on extinguished convertible notes
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    May&#160;14, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    Stock Options
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    60,000
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    $2.24
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    Grant of Stock Options
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
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    <BR>
    S-20
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">On December&#160;15, 2010, the
    common share purchase warrants issued on October&#160;22, 2010
    were automatically exercised, for no additional consideration,
    for one common share and one common share purchase warrant.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(2)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Each common share purchase warrant
    is exercisable over a five-year period from the closing of the
    October&#160;22, 2010 private placement, to purchase one common
    share at a purchase price of US$3.50 during the first year,
    US$4.00 during the second year, US$4.50 during the third year
    and US$5.00 thereafter until the expiry of the common share
    purchase warrant.
    </FONT></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(3)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Subsequent to the issuance of the
    652,175 compensation warrants to agents and finders as
    consideration for their services in connection with the
    October&#160;22, 2010 private placement of special warrants,
    21,739 compensation warrants were cancelled.
    </FONT></TD>
</TR>

</TABLE>

<A name='D81345114'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a general summary of material U.S.&#160;federal
    income tax considerations applicable to a U.S.&#160;Holder (as
    defined below) arising from and relating to the acquisition,
    ownership, and disposition of Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is for general information purposes only and does
    not purport to be a complete analysis or listing of all
    potential U.S.&#160;federal income tax considerations that may
    apply to a U.S.&#160;Holder arising from and relating to the
    acquisition, ownership, and disposition of Shares. In addition,
    this summary does not take into account the individual facts and
    circumstances of any particular U.S.&#160;Holder that may affect
    the U.S.&#160;federal income tax consequences to such
    U.S.&#160;Holder, including specific tax consequences to a
    U.S.&#160;Holder under an applicable tax treaty. Accordingly,
    this summary is not intended to be, and should not be construed
    as, legal or U.S.&#160;federal income tax advice with respect to
    any U.S.&#160;Holder. This summary does not address the
    U.S.&#160;federal alternative minimum, U.S.&#160;federal estate
    and gift, U.S.&#160;state and local, or foreign tax consequences
    to U.S.&#160;Holders of the acquisition, ownership, and
    disposition of Shares. Each U.S.&#160;Holder should consult its
    own tax advisor regarding the U.S.&#160;federal,
    U.S.&#160;federal alternative minimum, U.S.&#160;federal estate
    and gift, U.S.&#160;state and local, and foreign tax
    consequences relating to the acquisition, ownership, and
    disposition of Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    No legal opinion from U.S.&#160;legal counsel or ruling from the
    Internal Revenue Service (the &#147;IRS&#148;) has been
    requested, or will be obtained, regarding the U.S.&#160;federal
    income tax consequences of the acquisition, ownership, and
    disposition of Shares. This summary is not binding on the IRS,
    and the IRS is not precluded from taking a position that is
    different from, and contrary to, the positions taken in this
    summary. In addition, because the authorities on which this
    summary is based are subject to various interpretations, the IRS
    and the U.S.&#160;courts could disagree with one or more of the
    positions taken in this summary.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Scope of
    this Summary</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">Authorities</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is based on the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;), Treasury Regulations (whether
    final, temporary, or proposed), published rulings of the IRS,
    published administrative positions of the IRS, the Convention
    Between Canada and the United States of America with Respect to
    Taxes on Income and on Capital, signed September&#160;26, 1980,
    as amended (the &#147;Canada-U.S.&#160;Tax Convention&#148;),
    and U.S.&#160;court decisions that are applicable and, in each
    case, as in effect and available, as of the date of this
    document. Any of the authorities on which this summary is based
    could be changed in a material and adverse manner at any time,
    and any such change could be applied on a retroactive or
    prospective basis which could affect the U.S.&#160;federal
    income tax considerations described in this summary. This
    summary does not discuss the potential effects, whether adverse
    or beneficial, of any proposed legislation that, if enacted,
    could be applied on a retroactive or prospective basis.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this summary, the term
    &#147;U.S.&#160;Holder&#148; means a beneficial owner of Shares
    that is for U.S.&#160;federal income tax purposes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an individual who is a citizen or resident of the U.S.;
</TD>
</TR>

</TABLE>
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    <BR>
    S-21
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a corporation (or other entity taxable as a corporation for
    U.S.&#160;federal income tax purposes) organized under the laws
    of the U.S., any state thereof or the District of Columbia;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an estate whose income is subject to U.S.&#160;federal income
    taxation regardless of its source;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a trust that (1)&#160;is subject to the primary supervision of a
    court within the U.S.&#160;and the control of one or more
    U.S.&#160;persons for all substantial decisions or (2)&#160;has
    a valid election in effect under applicable Treasury regulations
    to be treated as a U.S.&#160;person.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this summary, a
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;Holder&#148;</FONT>
    is a beneficial owner of Shares that is not a U.S.&#160;Holder.
    This summary does not address the U.S.&#160;federal income tax
    consequences to
    <FONT style="white-space: nowrap">non-U.S.&#160;Holders</FONT>
    arising from and relating to the acquisition, ownership, and
    disposition of Shares. Accordingly, a
    <FONT style="white-space: nowrap">non-U.S.&#160;Holder</FONT>
    should consult its own tax advisor regarding the
    U.S.&#160;federal, U.S.&#160;federal alternative minimum,
    U.S.&#160;federal estate and gift, U.S.&#160;state and local,
    and foreign tax consequences (including the potential
    application of and operation of any income tax treaties)
    relating to the acquisition, ownership, and disposition of
    Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders Subject to Special U.S. Federal Income Tax
    Rules&#160;Not Addressed</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary does not address the U.S.&#160;federal income tax
    considerations applicable to U.S.&#160;Holders that are subject
    to special provisions under the Code, including the following
    U.S.&#160;Holders: (a)&#160;U.S.&#160;Holders that are
    tax-exempt organizations, qualified retirement plans, individual
    retirement accounts, or other tax-deferred accounts;
    (b)&#160;U.S.&#160;Holders that are financial institutions,
    underwriters, insurance companies, real estate investment
    trusts, or regulated investment companies;
    (c)&#160;U.S.&#160;Holders that are dealers in securities or
    currencies or U.S.&#160;Holders that are traders in securities
    that elect to apply a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    accounting method; (d)&#160;U.S.&#160;Holders that have a
    &#147;functional currency&#148; other than the U.S.&#160;dollar;
    (e)&#160;U.S.&#160;Holders that own Shares as part of a
    straddle, hedging transaction, conversion transaction,
    constructive sale, or other arrangement involving more than one
    position; (f)&#160;U.S.&#160;Holders that acquired Shares in
    connection with the exercise of employee stock options or
    otherwise as compensation for services;
    (g)&#160;U.S.&#160;Holders that hold Shares other than as a
    capital asset within the meaning of Section&#160;1221 of the
    Code (generally, property held for investment purposes);
    (h)&#160;partnerships and other pass-through entities (and
    investors in such partnerships and entities); or
    (j)&#160;U.S.&#160;Holders that own or have owned (directly,
    indirectly, or by attribution) 10% or more of the total combined
    voting power of the outstanding shares of the Company. This
    summary also does not address the U.S.&#160;federal income tax
    considerations applicable to U.S.&#160;Holders who are
    (a)&#160;U.S.&#160;expatriates or former long-term residents of
    the U.S., (b)&#160;persons that have been, are, or will be a
    resident or deemed to be a resident in Canada for purposes of
    the Tax Act; (c)&#160;persons that use or hold, will use or
    hold, or that are or will be deemed to use or hold Shares in
    connection with carrying on a business in Canada;
    (d)&#160;persons whose Shares constitute &#147;taxable Canadian
    property&#148; under the Tax Act; or (e)&#160;persons that have
    a permanent establishment in Canada for the purposes of the
    Canada-U.S.&#160;Tax Convention. U.S.&#160;Holders that are
    subject to special provisions under the Code, including
    U.S.&#160;Holders described immediately above, should consult
    their own tax advisor regarding the U.S.&#160;federal,
    U.S.&#160;federal alternative minimum, U.S.&#160;federal estate
    and gift, U.S.&#160;state and local, and foreign tax
    consequences relating to the acquisition, ownership, and
    disposition of Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If an entity that is classified as a partnership for
    U.S.&#160;federal income tax purposes holds Shares, the
    U.S.&#160;federal income tax consequences to such partnership
    and the partners of such partnership generally will depend on
    the activities of the partnership and the status of such
    partners. Partners of entities that are classified as
    partnerships for U.S.&#160;federal income tax purposes should
    consult their own tax advisor regarding the U.S.&#160;federal
    income tax consequences arising from and relating to the
    acquisition, ownership, and disposition of Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Passive
    Foreign Investment Company Rules</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is considered a &#147;passive foreign investment
    company&#148; under the meaning of Section&#160;1297 of the Code
    (a &#147;PFIC&#148;) at any time during a
    U.S.&#160;Holder&#146;s holding period, the following sections
    will generally describe the U.S.&#160;federal income tax
    consequences to the U.S.&#160;Holder of the acquisition,
    ownership, and disposition of Shares.
</DIV>
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    <BR>
    S-22
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">PFIC
    Status of the Company</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company generally will be a PFIC if, for a tax year,
    (a)&#160;75% or more of the gross income of the Company for such
    tax year is passive income (the &#147;income test&#148;) or
    (b)&#160;50% or more of the value of the Company&#146;s assets
    either produce passive income or are held for the production of
    passive income, based on the quarterly average of the fair
    market value of such assets (the &#147;assets test&#148;).
    &#147;Gross income&#148; generally includes all sales revenues
    less the cost of goods sold, and &#147;passive income&#148;
    generally includes, for example, dividends, interest, certain
    rents and royalties, certain gains from the sale of stock and
    securities, and certain gains from commodities transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Active business gains arising from the sale of commodities
    generally are excluded from passive income if substantially all
    of a foreign corporation&#146;s commodities are (a)&#160;stock
    in trade of such foreign corporation or other property of a kind
    which would properly be included in inventory of such foreign
    corporation, or property held by such foreign corporation
    primarily for sale to customers in the ordinary course of
    business, (b)&#160;property used in the trade or business of
    such foreign corporation that would be subject to the allowance
    for depreciation under Section&#160;167 of the Code, or
    (c)&#160;supplies of a type regularly used or consumed by such
    foreign corporation in the ordinary course of its trade or
    business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of the PFIC income test and asset test described
    above, if the Company owns, directly or indirectly, 25% or more
    of the total value of the outstanding shares of another
    corporation, the Company will be treated as if it (a)&#160;held
    a proportionate share of the assets of such other corporation
    and (b)&#160;received directly a proportionate share of the
    income of such other corporation. In addition, for purposes of
    the PFIC income test and asset test described above,
    &#147;passive income&#148; does not include any interest,
    dividends, rents, or royalties that are received or accrued by
    the Company from a &#147;related person&#148; (as defined in
    Section&#160;954(d)(3) of the Code), to the extent such items
    are properly allocable to the income of such related person that
    is not passive income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, under certain attribution rules, if the Company is
    a PFIC, U.S.&#160;Holders will be deemed to own their
    proportionate share of any subsidiary of the Company which is
    also a PFIC (a &#147;Subsidiary PFIC&#148;), and will be subject
    to U.S.&#160;federal income tax on their proportionate share of
    (i)&#160;a distribution on the shares of a Subsidiary PFIC and
    (ii)&#160;a disposition or deemed disposition of shares of a
    Subsidiary PFIC, both as if such U.S.&#160;Holders directly held
    the shares of such Subsidiary PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company believes it was classified as a PFIC during the
    taxable year ended December&#160;31, 2010, and based on current
    business plans and financial projections, the Company believes
    there is a significant likelihood that it will be a PFIC during
    the current taxable year. The determination of whether a
    corporation was, or will be, a PFIC for a tax year depends, in
    part, on the application of complex U.S.&#160;federal income tax
    rules, which are subject to differing interpretations. In
    addition, whether a corporation will be a PFIC for any tax year
    depends on the assets and income of such corporation over the
    course of each such tax year and, as a result, cannot be
    predicted with certainty as of the date of this document.
    Accordingly, there can be no assurance that the IRS will not
    challenge any determination made by the Company (or a Subsidiary
    PFIC) concerning its PFIC status. Each U.S.&#160;Holder should
    consult its own tax advisor regarding the PFIC status of the
    Company and each Subsidiary PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <U>Default PFIC Rules&#160;Under Section&#160;1291 of the
    Code</U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is a PFIC, the U.S.&#160;federal income tax
    consequences to a U.S.&#160;Holder of the acquisition,
    ownership, and disposition of Shares will depend on whether such
    U.S.&#160;Holder makes an election to treat the Company and each
    Subsidiary PFIC, if any, as a &#147;qualified electing
    fund&#148; or &#147;QEF&#148; under Section&#160;1295 of the
    Code (a &#147;QEF Election&#148;) or a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    election under Section&#160;1296 of the Code (a
    <FONT style="white-space: nowrap">&#147;Mark-to-Market</FONT>
    Election&#148;). A U.S.&#160;Holder that does not make either a
    QEF Election or a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will be referred to in this summary as a
    &#147;Non-Electing U.S.&#160;Holder.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Non-Electing U.S.&#160;Holder will be subject to the rules of
    Section&#160;1291 of the Code with respect to (a)&#160;any gain
    recognized on the sale or other taxable disposition of Shares
    and (b)&#160;any excess distribution received on the Shares. A
    distribution generally will be an &#147;excess
    distribution&#148; to the extent that such distribution
    (together with
</DIV>
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    <BR>
    S-23
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    all other distributions received in the current tax year)
    exceeds 125% of the average distributions received during the
    three preceding tax years (or during a U.S.&#160;Holder&#146;s
    holding period for the Shares, if shorter).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under Section&#160;1291 of the Code, any gain recognized on the
    sale or other taxable disposition of Shares, and any
    &#147;excess distribution&#148; received on Shares, must be
    ratably allocated to each day in a Non-Electing
    U.S.&#160;Holder&#146;s holding period for the respective
    Shares. The amount of any such gain or excess distribution
    allocated to the tax year of disposition or distribution of the
    excess distribution and to years before the entity became a
    PFIC, if any, would be taxed as ordinary income. The amounts
    allocated to any other tax year would be subject to
    U.S.&#160;federal income tax at the highest tax rate applicable
    to ordinary income in each such year, and an interest charge
    would be imposed on the tax liability for each such year,
    calculated as if such tax liability had been due in each such
    year. A Non-Electing U.S.&#160;Holder that is not a corporation
    must treat any such interest paid as &#147;personal
    interest,&#148; which is not deductible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is a PFIC for any tax year during which a
    Non-Electing U.S.&#160;Holder holds Shares, the Company will
    continue to be treated as a PFIC with respect to such
    Non-Electing U.S.&#160;Holder, regardless of whether the Company
    ceases to be a PFIC in one or more subsequent tax years. A
    Non-Electing U.S.&#160;Holder may terminate this deemed PFIC
    status by electing to recognize gain (which will be taxed under
    the rules of Section&#160;1291 of the Code discussed above) as
    if such Shares were sold on the last day of the last tax year
    for which the Company was a PFIC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">QEF
    Election</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a timely and effective QEF
    Election for the first tax year in which its holding period of
    its Shares begins, generally, will not be subject to the rules
    of Section&#160;1291 of the Code discussed above with respect to
    its Shares. However, a U.S.&#160;Holder that makes such a QEF
    Election will be subject to U.S.&#160;federal income tax on such
    U.S.&#160;Holder&#146;s pro rata share of (a)&#160;the net
    capital gain of the Company, which will be taxed as long-term
    capital gain to such U.S.&#160;Holder, and (b)&#160;and the
    ordinary earnings of the Company, which will be taxed as
    ordinary income to such U.S.&#160;Holder. Generally, &#147;net
    capital gain&#148; is the excess of (a)&#160;net long-term
    capital gain over (b)&#160;net short-term capital loss, and
    &#147;ordinary earnings&#148; are the excess of
    (a)&#160;&#147;earnings and profits&#148; over (b)&#160;net
    capital gain. A U.S.&#160;Holder that makes a QEF Election will
    be subject to U.S.&#160;federal income tax on such amounts for
    each tax year in which the Company is a PFIC, regardless of
    whether such amounts are actually distributed to such
    U.S.&#160;Holder by the Company. However, for any tax year in
    which the Company is a PFIC and has no net income or gain,
    U.S.&#160;Holders that have made a QEF Election would not have
    any income inclusions as a result of the QEF Election. If a
    U.S.&#160;Holder that made a QEF Election has an income
    inclusion, such a U.S.&#160;Holder may, subject to certain
    limitations, elect to defer payment of current U.S.&#160;federal
    income tax on such amounts, subject to an interest charge. If
    such U.S.&#160;Holder is not a corporation, any such interest
    paid will be treated as &#147;personal interest,&#148; which is
    not deductible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a QEF Election generally
    (a)&#160;may receive a tax-free distribution from the Company to
    the extent that such distribution represents &#147;earnings and
    profits&#148; of the Company that were previously included in
    income by the U.S.&#160;Holder because of such QEF Election and
    (b)&#160;will adjust such U.S.&#160;Holder&#146;s tax basis in
    the Shares to reflect the amount included in income or allowed
    as a tax-free distribution because of such QEF Election. In
    addition, a U.S.&#160;Holder that makes a QEF Election generally
    will recognize capital gain or loss on the sale or other taxable
    disposition of Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The procedure for making a QEF Election, and the
    U.S.&#160;federal income tax consequences of making a QEF
    Election, will depend on whether such QEF Election is timely. A
    QEF Election will be treated as &#147;timely&#148; if such QEF
    Election is made for the first year in the
    U.S.&#160;Holder&#146;s holding period for the Shares in which
    the Company was a PFIC. A U.S.&#160;Holder may make a timely QEF
    Election by filing the appropriate QEF Election documents at the
    time such U.S.&#160;Holder files a U.S.&#160;federal income tax
    return for such year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A QEF Election will apply to the tax year for which such QEF
    Election is made and to all subsequent tax years, unless such
    QEF Election is invalidated or terminated or the IRS consents to
    revocation of such QEF Election. If a U.S.&#160;Holder makes a
    QEF Election and, in a subsequent tax year, the Company ceases
    to be a PFIC, the QEF
</DIV>
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    <BR>
    S-24
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Election will remain in effect (although it will not be
    applicable) during those tax years in which the Company is not a
    PFIC. Accordingly, if the Company becomes a PFIC in another
    subsequent tax year, the QEF Election will be effective and the
    U.S.&#160;Holder will be subject to the QEF rules described
    above during any subsequent tax year in which the Company
    qualifies as a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    U.S.&#160;Holders should be aware that there can be no
    assurances that we will satisfy record keeping requirements that
    apply to a QEF, or that we will supply U.S.&#160;Holders with
    information that such U.S.&#160;Holders require to report under
    the QEF rules, in event that we are a PFIC and a
    U.S.&#160;Holder wishes to make a QEF Election. Thus,
    U.S.&#160;Holders may not be able to make a QEF Election with
    respect to their Shares. Further, because the Company may own
    shares in one or more subsidiary PFICs at any time,
    U.S.&#160;Holders will continue to be subject to the rules
    discussed above with respect to the taxation of gains and excess
    distributions with respect to any Subsidiary PFICs for which the
    U.S.&#160;Holders do not obtain the required information. Each
    U.S.&#160;Holder should consult its own tax advisor, regarding
    the availability of, and procedure for making, a QEF Election.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder may make a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election only if the Shares are marketable stock. The Shares
    generally will be &#147;marketable stock&#148; if the Shares are
    regularly traded on (a)&#160;a national securities exchange that
    is registered with the Securities and Exchange Commission,
    (b)&#160;the national market system established pursuant to
    section&#160;11A of the Securities and Exchange Act of 1934, or
    (c)&#160;a foreign securities exchange that is regulated or
    supervised by a governmental authority of the country in which
    the market is located, provided that (i)&#160;such foreign
    exchange has trading volume, listing, financial disclosure, and
    other requirements and the laws of the country in which such
    foreign exchange is located, together with the rules of such
    foreign exchange, ensure that such requirements are actually
    enforced and (ii)&#160;the rules of such foreign exchange ensure
    active trading of listed stocks. If such stock is traded on such
    a qualified exchange or other market, such stock generally will
    be &#147;regularly traded&#148; for any calendar year during
    which such stock is traded, other than in de minimis quantities,
    on at least 15&#160;days during each calendar quarter.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election with respect to its Shares generally will not be
    subject to the rules of Section&#160;1291 of the Code discussed
    above with respect to such Shares. However, if a
    U.S.&#160;Holder does not make a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election beginning in the first tax year of such
    U.S.&#160;Holder&#146;s holding period for the Shares and such
    U.S.&#160;Holder has not made a timely QEF Election, the rules
    of Section&#160;1291 of the Code discussed above will apply to
    certain dispositions of, and distributions on, the Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will include in ordinary income, for each tax year in
    which the Company is a PFIC, an amount equal to the excess, if
    any, of (a)&#160;the fair market value of the Shares, as of the
    close of such tax year over (b)&#160;such
    U.S.&#160;Holder&#146;s tax basis in such Shares. A
    U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will be allowed a deduction in an amount equal to the
    excess, if any, of (a)&#160;such U.S.&#160;Holder&#146;s
    adjusted tax basis in the Shares, over (b)&#160;the fair market
    value of such Shares (but only to the extent of the net amount
    of previously included income as a result of the
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election for prior tax years).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election generally also will adjust such U.S.&#160;Holder&#146;s
    tax basis in the Shares to reflect the amount included in gross
    income or allowed as a deduction because of such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election. In addition, with respect to a U.S.&#160;Holder that
    makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election, any gain such U.S.&#160;Holder recognizes upon the
    sale or other disposition of Shares generally will be treated as
    ordinary income and any loss generally will be treated as
    ordinary loss (but, with respect to losses, only to the extent
    of the net amount previously included in income as a result of
    the
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election, with any excess losses generally treated as capital
    losses).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election applies to the tax year in which such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election is made and to each subsequent tax year, unless the
    Shares cease to be &#147;marketable stock&#148; or the IRS
    consents to revocation of such election. Each U.S.&#160;Holder
    should consult its own tax advisor regarding the availability
    of, and procedure for making, a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election.
</DIV>
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    <BR>
    S-25
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Although a U.S.&#160;Holder may be eligible to make a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election with respect to the Shares, no such election may be
    made with respect to the stock of any Subsidiary PFIC that a
    U.S.&#160;Holder is treated as owning, because such stock is not
    marketable. Hence, the
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will not be effective to eliminate the interest charge
    described above with respect to deemed dispositions of
    Subsidiary PFIC stock or distributions from a Subsidiary PFIC.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">Other
    PFIC Rules</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under Section&#160;1291(f) of the Code, the IRS has issued
    proposed Treasury Regulations that, subject to certain
    exceptions, would cause a U.S.&#160;Holder that had not made a
    timely QEF Election to recognize gain (but not loss) upon
    certain transfers of Shares that would otherwise be tax-deferred
    (e.g., gifts and exchanges pursuant to corporate
    reorganizations). However, the specific U.S.&#160;federal income
    tax consequences to a U.S.&#160;Holder may vary based on the
    manner in which Shares are transferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain additional adverse rules will apply with respect to a
    U.S.&#160;Holder if the Company is a PFIC, regardless of whether
    such U.S.&#160;Holder makes a QEF Election. For example under
    Section&#160;1298(b)(6) of the Code, a U.S.&#160;Holder that
    uses Shares as security for a loan will, except as may be
    provided in Treasury Regulations, be treated as having made a
    taxable disposition of such Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Special rules also apply to the amount of foreign tax credit
    that a U.S.&#160;Holder may claim on a distribution from a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to such special rules, foreign taxes paid with respect
    to any distribution in respect of stock in a PFIC are generally
    eligible for the foreign tax credit. The rules relating to
    distributions by a PFIC and their eligibility for the foreign
    tax credit are complicated, and a U.S.&#160;Holder should
    consult with their own tax advisor regarding the availability of
    the foreign tax credit with respect to distributions by a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, a U.S.&#160;Holder who acquires Shares from a
    decedent generally will not be eligible to receive a &#147;step
    up&#148; in tax basis of such Shares to fair market value unless
    the Company is a QEF with respect to such decedent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The PFIC rules are complex, and each U.S.&#160;Holder should
    consult its own tax advisor regarding the PFIC rules and how the
    PFIC rules may affect the U.S.&#160;federal income tax
    consequences of the acquisition, ownership, and disposition of
    Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Income Tax Consequences of the Acquisition, Ownership,
    and Disposition of Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is subject to the rules described above
    under the heading &#147;Passive Foreign Investment Company
    Rules.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">General
    Taxation of Distributions</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the PFIC rules discussed above, a U.S.&#160;Holder
    that receives a distribution, including a constructive
    distribution, with respect to a Common Share will be required to
    include the amount of such distribution in gross income as a
    dividend (without reduction for any Canadian income tax withheld
    from such distribution) to the extent of the current or
    accumulated &#147;earnings and profits&#148; of the Company, as
    computed for U.S.&#160;federal income tax purposes. A dividend
    generally will be taxed to a U.S.&#160;Holder at ordinary income
    tax rates. To the extent that a distribution exceeds the current
    and accumulated &#147;earnings and profits&#148; of the Company,
    such distribution will be treated first as a tax-free return of
    capital to the extent of a U.S.&#160;Holder&#146;s tax basis in
    the Shares and thereafter as gain from the sale or exchange of
    such Shares. (See &#147;Sale or Other Taxable Disposition of
    Shares&#148; below). However, the Company may not maintain the
    calculations of earnings and profits in accordance with
    U.S.&#160;federal income tax principles, and each
    U.S.&#160;Holder should therefore assume that any distribution
    by the Company with respect to the Shares will constitute
    ordinary dividend income. Dividends received on Shares generally
    will not be eligible for the &#147;dividends received
    deduction&#148;. In addition, the Company does not anticipate
    that its distributions will be eligible for the preferential tax
    rates applicable to long-term capital gains. The dividend
</DIV>
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    <BR>
    S-26
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    rules are complex, and each U.S.&#160;Holder should consult its
    own tax advisor regarding the application of such rules.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">Sale or
    Other Taxable Disposition of Shares</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the PFIC rules discussed above, upon the sale or
    other taxable disposition of Shares, a U.S.&#160;Holder
    generally will recognize capital gain or loss in an amount equal
    to the difference between the amount of cash plus the fair
    market value of any property received and such
    U.S.&#160;Holder&#146;s tax basis in such Shares sold or
    otherwise disposed of. Subject to the PFIC rules discussed
    above, gain or loss recognized on such sale or other disposition
    generally will be long-term capital gain or loss if, at the time
    of the sale or other disposition, the Shares have been held for
    more than one year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Preferential tax rates apply to long-term capital gain of a
    U.S.&#160;Holder that is an individual, estate, or trust. There
    are currently no preferential tax rates for long-term capital
    gain of a U.S.&#160;Holder that is a corporation. Deductions for
    capital losses are subject to significant limitations under the
    Code.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">Receipt
    of Foreign Currency</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The amount of any distribution paid to a U.S.&#160;Holder in
    foreign currency, or on the sale, exchange or other taxable
    disposition of Shares, generally will be equal to the
    U.S.&#160;dollar value of such foreign currency based on the
    exchange rate applicable on the date of receipt (regardless of
    whether such foreign currency is converted into
    U.S.&#160;dollars at that time). If the foreign currency
    received is not converted into U.S.&#160;dollars on the date of
    receipt, a U.S.&#160;Holder will have a basis in the foreign
    currency equal to its U.S.&#160;dollar value on the date of
    receipt. Any U.S.&#160;Holder who receives payment in foreign
    currency and engages in a subsequent conversion or other
    disposition of the foreign currency may have a foreign currency
    exchange gain or loss that would be treated as ordinary income
    or loss, and generally will be U.S.&#160;source income or loss
    for foreign tax credit purposes. Each U.S.&#160;Holder should
    consult its own U.S.&#160;tax advisor regarding the
    U.S.&#160;federal income tax consequences of receiving, owning,
    and disposing of foreign currency.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <U><FONT style="font-family: 'Times New Roman', Times">Foreign
    Tax Credit</FONT></U>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to the PFIC rules discussed above, a U.S.&#160;Holder
    that pays (whether directly or through withholding) Canadian
    income tax with respect to dividends paid on the Shares
    generally will be entitled, at the election of such
    U.S.&#160;Holder, to receive either a deduction or a credit for
    such Canadian income tax paid. Generally, a credit will reduce a
    U.S.&#160;Holder&#146;s U.S.&#160;federal income tax liability
    on a
    <FONT style="white-space: nowrap">dollar-for-dollar</FONT>
    basis, whereas a deduction will reduce a U.S.&#160;Holder&#146;s
    income subject to U.S.&#160;federal income tax. This election is
    made on a
    <FONT style="white-space: nowrap">year-by-year</FONT>
    basis and applies to all foreign taxes paid (whether directly or
    through withholding) by a U.S.&#160;Holder during a year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Complex limitations apply to the foreign tax credit, including
    the general limitation that the credit cannot exceed the
    proportionate share of a U.S.&#160;Holder&#146;s
    U.S.&#160;federal income tax liability that such
    U.S.&#160;Holder&#146;s &#147;foreign source&#148; taxable
    income bears to such U.S.&#160;Holder&#146;s worldwide taxable
    income. In applying this limitation, a U.S.&#160;Holder&#146;s
    various items of income and deduction must be classified, under
    complex rules, as either &#147;foreign source&#148; or
    &#147;U.S.&#160;source.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, dividends paid by a foreign corporation should be
    treated as foreign source for this purpose, and gains recognized
    on the sale of stock of a foreign corporation by a
    U.S.&#160;Holder should be treated as U.S.&#160;source for this
    purpose, except as otherwise provided in an applicable income
    tax treaty, and if an election is properly made under the Code.
    However, the amount of a distribution with respect to the Shares
    that is treated as a &#147;dividend&#148; may be lower for
    U.S.&#160;federal income tax purposes than it is for Canadian
    federal income tax purposes, resulting in a reduced foreign tax
    credit allowance to a U.S.&#160;Holder. In addition, this
    limitation is calculated separately with respect to specific
    categories of income. The foreign tax credit rules are complex,
    and each U.S.&#160;Holder should consult its own tax advisor
    regarding the foreign tax credit rules.
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Backup
    Withholding and Information Reporting</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under U.S.&#160;federal income tax law and Treasury regulations,
    certain categories of U.S.&#160;Holders must file information
    returns with respect to their investment in, or involvement in,
    a foreign corporation. For example, recently enacted legislation
    generally imposes new U.S.&#160;return disclosure obligations
    (and related penalties) on individuals who are U.S.&#160;Holders
    that hold certain specified foreign financial assets in excess
    of $50,000. The definition of specified foreign financial assets
    includes not only financial accounts maintained in foreign
    financial institutions, but also, unless held in accounts
    maintained by a financial institution, any stock or security
    issued by a
    <FONT style="white-space: nowrap">non-U.S.&#160;person,</FONT>
    any financial instrument or contract held for investment that
    has an issuer or counterparty other than a U.S.&#160;person and
    any interest in a foreign entity. Penalties for failure to file
    certain of these information returns are substantial.
    U.S.&#160;Holders should consult with their own tax advisors
    regarding the requirements of filing information returns, and,
    if applicable,
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    and QEF Elections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Payments made within the U.S.&#160;or by a U.S.&#160;payor or
    U.S.&#160;middleman, of dividends on, and proceeds arising from
    the sale or other taxable disposition of, Shares generally may
    be subject to information reporting and backup withholding tax,
    currently at the rate of 28% (and, under present law, increasing
    to 31% for payments made after December&#160;31, 2012), if a
    U.S.&#160;Holder (a)&#160;fails to furnish such
    U.S.&#160;Holder&#146;s correct U.S.&#160;taxpayer
    identification number (generally on
    <FONT style="white-space: nowrap">Form&#160;W-9),</FONT>
    (b)&#160;furnishes an incorrect U.S.&#160;taxpayer
    identification number, (c)&#160;is notified by the IRS that such
    U.S.&#160;Holder has previously failed to properly report items
    subject to backup withholding tax, or (d)&#160;fails to certify,
    under penalty of perjury, that such U.S.&#160;Holder has
    furnished its correct U.S.&#160;taxpayer identification number
    and that the IRS has not notified such U.S.&#160;Holder that it
    is subject to backup withholding tax. However, certain exempt
    persons, such as corporations, generally are excluded from these
    information reporting and backup withholding rules. Any amounts
    withheld under the U.S.&#160;backup withholding tax rules will
    be allowed as a credit against a U.S.&#160;Holder&#146;s
    U.S.&#160;federal income tax liability, if any, or will be
    refunded, if such U.S.&#160;Holder furnishes required
    information to the IRS in a timely manner. Each U.S.&#160;Holder
    should consult its own tax advisor regarding the information
    reporting and backup withholding rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THE ABOVE SUMMARY IS NOT INTENDED TO CONSTITUTE A COMPLETE
    ANALYSIS OF ALL TAX CONSIDERATIONS APPLICABLE TO
    U.S.&#160;HOLDERS WITH RESPECT TO THE ACQUISITION, OWNERSHIP,
    AND DISPOSITION OF SHARES. U.S.&#160;HOLDERS ARE URGED TO
    CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX CONSIDERATIONS
    APPLICABLE TO THEM IN THEIR OWN PARTICULAR CIRCUMSTANCES</B>
</DIV>

<A name='D81345115'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    CANADIAN FEDERAL INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a summary of the principal Canadian federal
    income tax considerations generally applicable to a holder who
    acquires Shares through this offering and who, at all material
    times for the purposes of the <I>Income Tax Act </I>(Canada)
    (the &#147;<B>Tax Act</B>&#148;), beneficially owns the Shares,
    deals at arm&#146;s length and is not &#147;affiliated&#148; or
    &#147;connected&#148; with the Company and, for the purposes of
    the Tax Act and the Canada-United States Tax Convention (1980)
    (the &#147;<B>Convention</B>&#148;), is a resident solely of
    either Canada or the United States (a &#147;<B>Holder</B>&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is based on the current provisions of the Tax Act
    and the regulations thereunder (the
    &#147;<B>Regulations</B>&#148;), all specific proposals (the
    &#147;<B>Proposed Amendments</B>&#148;) to amend the Tax Act or
    the Regulations publicly announced by or on behalf of the
    Minister of Finance (Canada) before the date hereof, the current
    provisions of the Convention, and counsel&#146;s understanding
    of the current published administrative and assessing policies
    of the Canada Revenue Agency (the &#147;<B>CRA</B>&#148;). It is
    assumed that the Proposed Amendments will be enacted as
    currently proposed, and that there will be no other material
    change to any applicable law or policy, although no assurance
    can be given in these respects. This summary does not otherwise
    take into account or anticipate any change in any other
    applicable law, whether by legislative, governmental or judicial
    decision or action, and does not take into account the tax laws
    of any province or territory of Canada or of any jurisdiction
    outside of Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to certain exceptions that are not discussed in this
    summary, all amounts must be determined for the purposes of the
    Tax Act in Canadian dollars based on the daily noon rate as
    quoted by the Bank of Canada for the
</DIV>
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    <BR>
    S-28
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    applicable day (or, if there is no such rate quoted for the
    applicably day, the closest preceding day for which such a rate
    is quoted) or such other rate of exchange that is acceptable to
    the CRA. Holders who determine or wish to determine amounts for
    the purposes of the Tax Act in a currency other than the
    Canadian dollar should consult their own tax advisers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary further assumes that no Share will at any material
    time derive any value, directly or indirectly, from real
    property situated in Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary does not address the deductibility of interest by a
    Holder who borrows money to acquire Shares nor any credits to
    which a Holder may be entitled under the Tax Act by reason of
    taxes paid in respect of the Shares to any country other than
    Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THIS SUMMARY IS OF A GENERAL NATURE ONLY, IS NOT EXHAUSTIVE
    OF ALL POSSIBLE CANADIAN FEDERAL INCOME TAX CONSIDERATIONS, AND
    IS NOT INTENDED TO BE AND SHOULD NOT BE CONSTRUED AS LEGAL OR
    TAX ADVICE TO ANY PARTICULAR HOLDER. ACCORDINGLY, HOLDERS SHOULD
    CONSULT THEIR OWN TAX ADVISERS WITH RESPECT TO THEIR PARTICULAR
    CIRCUMSTANCES.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Holders
    Resident in Canada</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following section of this summary applies solely to Holders,
    each of whom, at all relevant times for the purposes of the Tax
    Act, is or is deemed to be resident solely in Canada and holds
    all Shares as capital property, (each a &#147;<B>Canadian
    Holder</B>&#148;). A Share generally will be considered to be
    capital property of a Canadian Holder unless the Canadian Holder
    holds it in the course of carrying on a business of trading or
    dealing in securities, or acquired it in one or more
    transactions which was an adventure in the nature of trade. A
    Canadian Holder whose Shares might not otherwise qualify as
    capital property may be entitled to elect irrevocably under
    subsection 39(4) of the Tax Act that every Share, and every
    other &#147;Canadian security&#148; (as defined in the Tax Act),
    owned by the Canadian Holder in the taxation year of the
    election or any subsequent taxation year be deemed to be capital
    property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is not applicable to a Canadian Holder
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    that is a &#147;financial institution&#148; or a &#147;specified
    financial institution&#148; for the purposes of the Tax Act,
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    that is a partnership or a trust,
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to whom the functional currency rules in subsection 261(4) of
    the Tax Act apply,&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an interest in which is, or for whom a Share would be, a
    &#147;tax shelter investment&#148; for the purposes of the Tax
    Act.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Such Canadian Holders should consult their own tax advisers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each Canadian Holder who receives or is deemed under the Tax Act
    to receive a taxable dividend on the Canadian Holder&#146;s
    Shares in a taxation year will be required to include the amount
    of the taxable dividend in income for the year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The dividend, if the Canadian Holder is an individual, will be
    subject to the
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax credit rules applicable to taxable dividends
    received from taxable Canadian corporations, including the
    enhanced
    <FONT style="white-space: nowrap">gross-up</FONT> and
    dividend tax credit rules to the extent that the Company
    designates the dividend to be an &#147;eligible dividend&#148;
    in accordance with the Tax Act. The dividend may result in a
    Canadian Holder being liable for alternative minimum tax under
    the Tax Act. Canadian Holders who are individuals (including
    certain trusts) should consult their advisers in this regard.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Canadian Holder that is a corporation generally will be
    entitled to deduct the amount of the dividend in computing its
    taxable income under Part&#160;I of the Tax Act for the taxation
    year of receipt. The corporation, if it is a &#147;private
    corporation&#148; or a &#147;subject corporation&#148; for the
    purposes of Part&#160;IV of the Tax Act, generally will be
    subject to
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    refundable tax on the dividend, which tax generally will be
    refunded to the corporation at a rate of Cdn$1.00 for every
    Cdn$3.00 of taxable dividends that it pays if and while it is a
    private corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Gains and Losses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Canadian Holder who disposes or is deemed to dispose of a
    Share in a taxation year generally will realize a capital gain
    (or capital loss) in the year equal to the amount by which the
    proceeds of disposition, net of reasonable costs of disposition,
    are greater (or less) than the adjusted cost base to the
    Canadian Holder of the Share. The Canadian Holder will be
    required to include one half of any capital gain (a
    &#147;<B>taxable capital gain</B>&#148;) so realized in income
    for the year, and may deduct one half of any capital loss (an
    &#147;<B>allowable capital loss</B>&#148;) so realized against
    taxable capital gains for the year and, to the extent not so
    deductible, against taxable capital gains realized in any of the
    three preceding taxation years or any subsequent taxation year,
    subject to detailed provisions of the Tax Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The amount of any capital loss realized on the disposition or
    deemed (under the Tax Act) disposition of a Share by a Canadian
    Holder that is a corporation may, in certain circumstances, be
    reduced by the amount of any dividends that it received or is
    deemed under the Tax Act to have received on the Share. Similar
    rules may apply if the corporation is a member of a partnership
    or beneficiary of a trust that owns Shares, or a member or
    beneficiary of a partnership or trust that is a member of a
    partnership or a beneficiary of a trust that owns Shares.
    Canadian Holders to whom these rules might apply should consult
    their own tax advisers in this regard.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A capital gain realized by a Canadian Holder who is an
    individual may result in the Canadian Holder being liable for
    alternative minimum tax under the Tax Act. Canadian Holders who
    are individuals (including certain trusts) should consult their
    own tax advisers in this regard.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Canadian Holder that is a &#147;Canadian-controlled private
    corporation&#148; as defined in the Tax Act throughout the
    relevant taxation year may be liable to pay an additional
    refundable tax of
    6<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    in respect of its &#147;aggregate investment income&#148;, which
    is defined in the Tax Act so as to include any taxable capital
    gain realized on a disposition of Shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Holders
    Resident in the United States</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following portion of this summary is generally applicable
    solely to Holders, each of whom at all material times for the
    purposes of the Tax Act and the Convention, is not and never has
    been a resident or deemed resident of Canada, is a resident
    solely of the United States and entitled to full benefits under
    the Convention, holds all Shares as capital property, does not
    and is not deemed to use or hold any Share in connection with a
    business carried on in Canada, and does not and is not deemed to
    carry on an insurance business in Canada and elsewhere (each an
    &#147;<B>American Holder</B>&#148;). A Share will be considered
    to be capital property of a American Holder unless the American
    Holder holds it in the course of carrying on a business of
    trading or dealing in securities, or acquired it in one or more
    transactions which was an adventure in the nature of trade.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Dividends</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An American Holder on whose Shares the Company pays or credits,
    or is deemed under the Tax Act to pay or credit, a dividend
    generally will be subject to Canadian withholding tax at the
    rate of 15% or, if the American Holder is a company that
    beneficially owns at least 10% of the voting stock of the
    Company, 5% of the gross amount of the dividend. The Company
    will be required to withhold the requisite amount of tax from
    the dividend and remit it to the CRA for the American
    Holder&#146;s account.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-30
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Capital
    Gains and Losses</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An American Holder who disposes or is deemed under the Tax Act
    to dispose of a Share should not thereby incur any liability for
    Canadian federal income tax in respect of any capital gain
    thereby arising.
</DIV>

<A name='D81345116'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We, GMP Securities L.P. and Wellington West Capital Markets
    Inc., whom we refer to collectively as the Underwriters, and
    each as an Underwriter, have entered into an underwriting
    agreement with respect to the Shares being offered by us.
    Subject to the terms and conditions of the underwriting
    agreement, each Underwriter has agreed to severally (and not
    jointly or jointly and severally) purchase from us, the
    following number of Shares on the closing of the offering at an
    offering price less the underwriting discount set forth on the
    cover page of this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="83%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="13%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Number of Shares</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Griffiths McBurney Corp, an agent affiliate of GMP Securities
    L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wellington West Capital Markets (USA) Inc., an agent affiliate
    of Wellington West Capital Markets Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <B>Total</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>100</B>
</TD>
<TD nowrap align="left" valign="bottom">
    <B>%</B>
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters have severally agreed to purchase all of the
    Shares sold under the underwriting agreement if any of the
    Shares are purchased, other than Additional Shares covered by
    the Over-Allotment Option. The underwriting agreement provides
    that the Underwriters&#146; obligation to purchase Shares
    depends on the satisfaction of the conditions contained in the
    underwriting agreement including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the representations and warranties made by us to the
    Underwriters are true;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    there is no material change in our business;&#160;and
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    we deliver customary closing documents to the Underwriters.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Additionally, the obligations of the Underwriters under the
    underwriting agreement may be terminated at the Underwriters
    discretion upon the occurrence of certain stated events.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The public offering price on the cover page of this prospectus
    supplement was determined based upon arm&#146;s length
    negotiations between us and the Underwriters.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The offering is being made concurrently in the United States and
    in all the provinces and territories of Canada, excluding
    Quebec. Offers may also be made on a private placement basis
    where permitted by applicable law. The Shares will be offered in
    the United States and Canada through the Underwriters either
    directly or through their respective United States or Canadian
    broker-dealer affiliates or agents, as applicable. No securities
    will be offered or sold in any jurisdiction except by or through
    brokers or dealers duly registered under the applicable
    securities laws of that jurisdiction, or in circumstances where
    an exemption from such registered dealer requirements is
    available. Subject to applicable law, the Underwriters may offer
    the Shares outside of the United States and Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters are offering the Shares, subject to prior sale,
    if, as and when issued to and accepted by them, subject to
    approval of certain legal matters, including the conditions
    contained in the Underwriting Agreement, such as receipt by the
    Underwriters of officers&#146; certificates and legal opinions.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-31
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The offering price of the Shares for all investors in this
    offering will be payable in Canadian dollars, unless the
    Underwriters otherwise agree. All of the proceeds of this
    offering will be paid to us by the Underwriters in Canadian
    dollars based on the Canadian dollar offering price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subscriptions for the Shares will be received subject to
    rejection or allotment in whole or in part and the right is
    reserved to close the subscription books at any time without
    notice. It is anticipated that we will arrange for an instant
    deposit of the Shares to or for the account of the purchaser
    through the book-entry facilities of DTC on the Closing Date. No
    certificate evidencing the Shares will be issued to the
    purchaser, except in limited circumstances, and registration
    will be made in the depositary services of DTC. The purchaser
    will receive only a customer confirmation from the placement
    agent or other registered dealer who is a DTC participant and
    from or through whom a beneficial interest in the Shares is
    purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We expect to deliver the Shares on or about April&#160;20, 2011,
    which would be the 6th&#160;business day after the date of this
    prospectus supplement, as agreed to by us and the Underwriters.
    Pursuant to
    <FONT style="white-space: nowrap">Rule&#160;15c6-1</FONT>
    under the United States Securities Exchange Act of 1934, as
    amended, trades in the secondary market generally are required
    to settle in three business days, unless the parties to any such
    trade expressly agree otherwise. Accordingly, purchasers who
    wish to trade Shares prior to the delivery date may be required
    to specify an alternate settlement cycle at the time of trade to
    prevent a failed settlement. Investors who wish to trade Shares
    prior to the delivery date should consult their own advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Underwriters propose to offer the Shares initially at the
    price specified on the cover of this prospectus supplement.
    After the Underwriters have made a reasonable effort to sell all
    of the Shares at the price specified on the cover page, the
    price may be decreased and may be further changed from time to
    time to an amount not greater than that set out on the cover
    page, and the compensation realized by the Underwriters will be
    decreased by the amount that the aggregate price paid by
    purchasers for the Shares is less than the gross proceeds paid
    by the Underwriters to us.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Over-Allotment
    Option</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have granted to the Underwriters the Over-Allotment Option,
    exercisable in whole or in part, in the sole discretion of the
    Underwriters, for a period of 30&#160;days from the Closing
    Date, to purchase up to 1,350,000 Additional Shares at the
    offering price of Cdn$3.30 per Additional Share, to cover
    over-allotments, if any, and for market stabilization purposes.
    A person who acquires common shares issuable upon exercise of
    the Over-Allotment Option acquires such shares under this
    prospectus supplement regardless of whether the over-allotment
    position is ultimately filled through the exercise of the
    Over-Allotment Option or secondary market purchases. This
    prospectus supplement, and the accompanying base prospectus,
    qualify the distribution of the Over-Allotment Option and the
    distribution of the Additional Shares issuable upon exercise of
    the Over-Allotment Option.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Underwriters&#146;
    Compensation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed to pay a cash commission to the Underwriters in
    the amount equal to 5% (Cdn$0.165 per Share sold) of the gross
    proceeds of the sale of the Shares, including gross proceeds
    realized on the sale of Additional Shares issuable upon exercise
    of the Over-Allotment Option, if any, in consideration for
    services rendered. The aggregate commission payable to the
    Underwriters upon closing of the offering will be between
    Cdn$1,485,000 and Cdn$1,707,750, depending upon the extent to
    which the Over-Allotment Option is exercised, if at all.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table shows the per Share and total underwriting
    commissions to be paid to the Underwriters by us. The
    information assumes either no exercise or full exercise by the
    Underwriters of their Over-Allotment Option to purchase
    Additional Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Share</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Without Option</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>With Option</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public Offering Price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    3.30
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    29,700,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    34,155,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Underwriting commissions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    0.165
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1,485,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1,707,750
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Proceeds, before expenses, to us
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    3.135
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    28,215,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    32,447,250
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the cash commission payable by us to the
    Underwriters, we have also granted the Underwriters Compensation
    Options to purchase a number of common shares equal to 5% of the
    number of Shares and Additional Shares sold under the offering
    at the public offering price for a period of 24&#160;months
    following the Closing Date. This prospectus supplement registers
    the offer and sale of the Compensation Options and the common
    shares issuable upon the exercise of the Compensation Options.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will also reimburse the Underwriters for their reasonable
    fees and expenses including the reasonable legal fees and
    disbursements of legal counsel to the Underwriters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">No Sales
    of Similar Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed not to, directly or indirectly, without the prior
    written consent of the Underwriters, such consent not to be
    unreasonably withheld, issue, sell, agree or offer to issue or
    sell or otherwise lend, transfer, or otherwise dispose of any
    common shares (or any securities exchangeable, convertible or
    exercisable into common shares) or enter into any swap or other
    arrangement that transfers to another person, in whole or in
    part, any of the economic consequences of ownership of common
    shares, whether any such transaction is settled by delivery of
    common shares or other securities, in cash or otherwise, or
    announce an intention to do any of the foregoing, for a period
    of 90&#160;days following the Closing Date, except in
    conjunction with (i)&#160;the grant or exercise of stock options
    and other similar issuances pursuant to the share incentive plan
    of the Company and other share compensation arrangements;
    (ii)&#160;warrants or other currently outstanding instruments or
    contractual commitment on the date hereof; and (iii)&#160;the
    issuance of securities in connection with property or share
    acquisitions in the normal course of business in the aggregate
    amount of not more than 10% of the number of currently
    outstanding common shares.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Price
    Stabilization and Short Positions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until the distribution of the Shares is completed, SEC rules may
    limit the Underwriters from bidding for and purchasing on our
    common shares. However, the Underwriters may engage in
    transactions that stabilize, maintain or otherwise affect the
    market price of our common shares, such as bids or purchases to
    peg, fix or maintain that price in accordance with
    Regulation&#160;M under the U.S.&#160;Exchange Act of 1934, as
    amended.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Pursuant to rules and policy statements of certain Canadian
    provincial and territorial securities regulatory authorities,
    the Underwriters may not, at any time during the period ending
    on the date the selling process for the Shares ends and all
    stabilization arrangements relating to our common shares are
    terminated, bid for or purchase our common shares for their own
    account or for accounts over which they exercise control or
    direction. The foregoing restrictions are subject to certain
    exceptions, on the condition that the bid or purchase is not
    engaged in for the purpose of creating actual or apparent active
    trading in, or raising the price of, our common shares. These
    exceptions include bids or purchases permitted under the
    Universal Market Integrity Rules for Canadian Marketplaces
    administered by the Investment Industry Regulatory Organization
    of Canada relating to market stabilization and passive market
    making activities and a bid or purchase made for and on behalf
    of a customer where the order was not solicited during the
    period of distribution. Subject to the foregoing, in connection
    with this offering, the Underwriters may over-allot or effect
    transactions that stabilize or maintain the market price of our
    common shares at levels which might not prevail on the open
    market. Such transactions, if commenced, may be discontinued at
    any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Underwriters create a short position in our common shares
    in connection with this offering, i.e., if they sell more Shares
    than are listed on the cover of this prospectus supplement, the
    Underwriters may reduce that short
</DIV>
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    <BR>
    S-33
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    position by purchasing common shares in the open market. The
    Underwriters may also elect to reduce any short position by
    exercising all or part of the Over-Allotment Option described
    above. Purchases of common shares to stabilize the price or to
    reduce a short position may cause the price of the common shares
    to be higher than it might otherwise be in the absence of such
    purchases. No representation is made as to the magnitude or
    effect of any such stabilization or other activities. The
    Underwriters are not required to engage in these activities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnity
    and Contribution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed to indemnify the Underwriters, and certain
    related parties, insofar as any losses, claims, damages,
    liabilities, costs and expenses arise out of, or are based on,
    directly or indirectly, the transactions contemplated in the
    Underwriting Agreement, provided however that we shall not be
    required to indemnify any such person for any losses, claims,
    damages, liabilities, costs and expenses which have resulted
    from fraud or fraudulent misrepresentation of such persons.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Stock
    Exchange Listing</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The outstanding common shares are listed on the TSX and Amex. We
    intend to apply to have the Shares and Additional Shares listed
    on the TSX and Amex. Listing will be subject to us fulfilling
    all of the listing requirements of the TSX and Amex.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    prospective investors in the European Economic Area</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In relation to each member state of the European Economic Area
    (each, a &#147;relevant member state&#148;) that has implemented
    the Prospectus Directive (as defined below), with effect from
    and including the date on which the Prospectus Directive is
    implemented in that relevant member state (the &#147;relevant
    implementation date&#148;), an offer of Shares described in this
    prospectus may not be made to the public in that relevant member
    state prior to the publication of a prospectus in relation to
    the Shares that has been approved by the competent authority in
    that relevant member state or, where appropriate, approved in
    another relevant member state and notified to the competent
    authority in that relevant member state, all in accordance with
    the Prospectus Directive, except that, with effect from and
    including the relevant implementation date, an offer of Shares
    may be offered to the public in that relevant member state at
    any time:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to any legal entity that is authorized or regulated to operate
    in the financial markets or, if not so authorized or regulated,
    whose corporate purpose is solely to invest in securities;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to any legal entity that has two or more of (1)&#160;an average
    of at least 250&#160;employees during the last financial year,
    (2)&#160;a total balance sheet of more than &#128;43,000,000 and
    (3)&#160;an annual net turnover of more than &#128;50,000,000,
    as shown in its last annual or consolidated accounts;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to fewer than 100 natural or legal persons (other than qualified
    investors as defined below) subject to obtaining the prior
    consent of the representatives for any such offer;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in any other circumstances that do not require the publication
    of a prospectus pursuant to Article&#160;3 of the Prospectus
    Directive.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each purchaser of Shares described in this prospectus located
    within a relevant member state will be deemed to have
    represented, acknowledged and agreed that it is a
    &#147;qualified investor&#148; within the meaning of
    Article&#160;2(1)(e) of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this provision, the expression an &#147;offer to
    the public&#148; in any relevant member state means the
    communication in any form and by any means of sufficient
    information on the terms of the offer and the securities to be
    offered so as to enable an investor to decide to purchase or
    subscribe the securities, as the expression may be varied in
    that member state by any measure implementing the Prospectus
    Directive in that member state, and the expression
    &#147;Prospectus Directive&#148; means Directive 2003/71/EC and
    includes any relevant implementing measure in each relevant
    member state.
</DIV>
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    <BR>
    S-34
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have not authorized and do not authorize the making of any
    offer of the Shares through any financial intermediary on our
    behalf, other than offers made by the Underwriters with a view
    to the final placement of the common shares as contemplated in
    this prospectus. Accordingly, no purchaser of the Shares, other
    than the Underwriters, is authorized to make any further offer
    of the Shares on our behalf or on behalf of the Underwriters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    prospective investors in the United Kingdom</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus is only being distributed to, and is only
    directed at, persons in the United Kingdom that are qualified
    investors within the meaning of Article&#160;2(1)(e) of the
    Prospectus Directive that are also (i)&#160;investment
    professionals falling within Article&#160;19(5) of the Financial
    Services and Markets Act 2000 (Financial Promotion) Order 2005
    (the Order) or (ii)&#160;high net worth entities, and other
    persons to whom it may lawfully be communicated, falling within
    Article&#160;49(2)(a) to (d)&#160;of the Order (each such person
    being referred to as a relevant person). This prospectus and its
    contents are confidential and should not be distributed,
    published or reproduced (in whole or in part) or disclosed by
    recipients to any other persons in the United Kingdom. Any
    person in the United Kingdom that is not a relevant person
    should not act or rely on this prospectus or any of its contents.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Notice to
    prospective investors in France</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Neither this prospectus nor any other offering material relating
    to the Shares has been submitted to the clearance procedures of
    the <I>Autorit&#233; des March&#233;s Financiers </I>or of the
    competent authority of another member state of the European
    Economic Area and notified to the <I>Autorit&#233; des
    March&#233;s Financiers</I>. The Shares have not been offered or
    sold and will not be offered or sold, directly or indirectly, to
    the public in France. Neither this prospectus nor any other
    offering material relating to the Shares has been or will be:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    released, issued, distributed or caused to be released, issued
    or distributed to the public in France;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    used in connection with any offer for subscription or sale of
    the Shares to the public in France.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Such offers, sales and distributions will be made in France only:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="3%"></TD>
    <TD width="89%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to qualified investors <I>(investisseurs qualifi&#233;s)
    </I>and/or to a restricted circle of investors <I>(cercle
    restreint d&#146;investisseurs), </I>in each case investing for
    their own account, all as defined in, and in accordance with,
    <FONT style="white-space: nowrap">articles&#160;L.411-2,</FONT>
    D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the
    <I>French Code mon&#233;taire et financier</I>;
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to investment services providers authorized to engage in
    portfolio management on behalf of third parties;&#160;or
</TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    in a transaction that, in accordance with
    <FONT style="white-space: nowrap">Article&#160;L.411-2-II-1&#176;-or-2&#176;-or</FONT>
    3&#176; of the <I>French Code mon&#233;taire et financier
    </I>and
    <FONT style="white-space: nowrap">Article&#160;211-2</FONT>
    of the General Regulations <I>(R&#232;glement G&#233;n&#233;ral)
    </I>of the <I>Autorit&#233; des March&#233;s Financiers,
    </I>does not constitute a public offer (appel public &#224;
    l&#146;&#233;pargne).
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Shares may be resold directly or indirectly, only in
    compliance with
    <FONT style="white-space: nowrap">Articles&#160;L.411-1,</FONT>
    L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the <I>French
    Code mon&#233;taire et financier</I>.
</DIV>

<A name='D81345117'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DOCUMENTS
    INCORPORATED BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement is deemed, as of the date hereof, to
    be incorporated by reference into the accompanying base
    prospectus solely for the purpose of offering the Shares. Other
    documents are incorporated, or are deemed to be incorporated, by
    reference into the accompanying base prospectus, and reference
    should be made to the accompanying base prospectus for full
    particulars thereof.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following documents which have been filed by us with
    securities commissions or similar authorities in Canada and with
    the SEC, are also specifically incorporated by reference into,
    and form an integral part of the accompanying base prospectus,
    as supplemented by this prospectus supplement (excluding, unless
    otherwise
</DIV>
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    <BR>
    S-35
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    provided therein or herein, information furnished pursuant to
    Item&#160;2.02 and Item&#160;7.01 of any Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K).</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;
</TD>
    <TD align="left">
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    for the year ended December&#160;31, 2010, which report contains
    our audited consolidated financial statements and the notes
    thereto as at December&#160;31, 2010 and 2009 and for the three
    years ended December&#160;31, 2010, together with the
    auditor&#146;s report thereon, as filed on March&#160;14, 2011;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;
</TD>
    <TD align="left">
    our Proxy Statement on Schedule&#160;14A, dated March&#160;23,
    2011, in connection with our May&#160;6, 2011 annual general
    meeting of shareholders, including the information specifically
    incorporated by reference into our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2010, as filed on
    March&#160;30, 2011;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;
</TD>
    <TD align="left">
    the description of our common shares contained in our
    registration statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on January&#160;4, 1988, including any amendment or report
    filed for purposes of updating such description;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (d)&#160;
</TD>
    <TD align="left">
    all other documents filed by us with the SEC under
    Sections&#160;13(a), 13(c), 14 or 15(d) of the Exchange Act,
    after the date of this prospectus supplement but before the end
    of the offering of the securities made by this Prospectus.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You may obtain copies of any of these documents by contacting us
    at the address and telephone number indicated below or by
    contacting the SEC as described below. You may request a copy of
    these documents, and any exhibits that have specifically been
    incorporated by reference as an exhibit in this prospectus
    supplement, at no cost, by writing or telephoning to:
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vista Gold Corp.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    7961 Shaffer Parkway, Suite&#160;5
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Littleton, Colorado 80127
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Attention: Gregory G. Marlier, Chief Financial Officer
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">(720)&#160;981-1185</FONT>
</DIV>

<A name='D81345118'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The validity of the Shares offered hereby will be passed upon
    for us by Macdonald and Company. As of the date of this
    prospectus supplement, the partners and associates of Macdonald
    and Company beneficially own less than 1% of our outstanding
    common shares. Certain legal matters relating to the Shares
    offered pursuant to this prospectus supplement will be passed
    upon for us by Borden Ladner Gervais LLP, with respect to
    Canadian legal matters, and Dorsey&#160;&#038; Whitney LLP, with
    respect to U.S.&#160;legal matters, and are subject to the
    approval for the Underwriters by Fraser Milner Casgrain LLP,
    with respect to Canadian legal matters, and by Skadden, Arps,
    Slate, Meagher&#160;&#038; Flom LLP, with respect to
    U.S.&#160;legal matters. As of the date of this prospectus
    supplement, the partners and associates of each of Borden Ladner
    Gervais LLP and Fraser Milner Casgrain LLP, collectively,
    beneficially own less than 1% of the outstanding shares of the
    Company.
</DIV>

<A name='D81345119'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INTEREST
    OF EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Information relating to our mineral properties in this
    prospectus supplement and the documents incorporated by
    reference herein has been derived from reports, statements or
    opinions prepared or certified by Terry Braun, SRK Consulting
    (US), Inc.; David A. Kidd, Golder Associates Inc.; William J.
    Crowl, Gustavson Associates, LLC; Richard J. Lambert, P.E., John
    W. Rozelle, P.G., Tetra Tech MM, Inc.; Leonel Lopez, C.P.G.;
    Barton G. Stone, Pincock, Allen&#160;&#038; Holt; Thomas Dyer;
    and Neil B. Prenn, P.E., Mine Development Associates Inc., and
    this information has been included in reliance on such
    persons&#146; and companies&#146; expertise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    None of Terry Braun, SRK Consulting (US), Inc., David A. Kidd,
    Golder Associates Inc., William J. Crowl, Gustavson Associates,
    LLC, Richard J. Lambert, P.E., John W. Rozelle, P.G., Tetra Tech
    MM, Inc., Leonel Lopez, C.P.G., Barton G. Stone, Pincock,
    Allen&#160;&#038; Holt, Thomas Dyer, Neil B. Prenn, P.E., and
    Mine Development Associates Inc., each being persons and
    companies who have prepared or certified the preparation of
    reports,
</DIV>
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    <BR>
    S-36
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    statements or opinions relating to our mineral properties, or
    any director, officer, employee or partner thereof, as
    applicable, received or has received a direct or indirect
    interest in our property or the property of any of our
    associates or affiliates. As at the date hereof, the
    aforementioned persons, companies and persons at the companies
    specified above who participated in the preparation of such
    reports, statements or opinions, as a group, beneficially own,
    directly or indirectly, less than 1% of our outstanding common
    shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The financial statements and management&#146;s assessment of the
    effectiveness of internal control over financial reporting
    (which is included in Management&#146;s Report on Internal
    Control over Financial Reporting) incorporated in this
    prospectus supplement by reference to the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010 have been so
    incorporated in reliance on the report of PricewaterhouseCoopers
    LLP, an independent registered public accounting firm, given on
    the authority of said firm as experts in auditing and accounting.
</DIV>

<A name='D81345120'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE TO
    FIND ADDITIONAL INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. You may read and copy
    materials we have filed with the SEC at the SEC&#146;s public
    reference room at 100&#160;F&#160;Street, N.E., Washington, DC
    20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on the operation of its public reference
    room. Our SEC filings also are available to the public on the
    SEC&#146;s Internet site at <I>www.sec.gov</I>. In addition, we
    maintain a website that contains information about us, including
    our SEC filings, at <I>www.vistagold.com</I>. The information
    contained on our website does not constitute a part of this
    prospectus supplement, the accompanying base prospectus, the
    Canadian Prospectus or any other report or documents we file
    with or furnish to the SEC or with the securities regulatory
    authorities in Canada.
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-37
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="d81345d8134500.gif" alt="(VISTA GOLD LOGO)">
</DIV>



<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 18pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">VISTA
    GOLD CORP.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 14pt; font-family: Arial, Helvetica; color: #000000; background: transparent">


</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 108pt; border-right: 1px solid #000000; padding-right: 108pt; border-bottom: 1px solid #000000; padding-bottom: 108pt; border-left: 1px solid #000000; padding-left: 108pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt">$200,000,000</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Common Shares</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Debt Securities</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Warrants</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Subscription Receipts</B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Units</B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vista Gold Corp. may offer and sell, from time to time, up to
    $200,000,000 aggregate initial offering price of the
    Company&#146;s common shares, without par value (&#147;Common
    Shares&#148;), debt securities (&#147;Debt Securities&#148;),
    warrants to purchase Common Shares or Debt Securities
    (&#147;Warrants&#148;), subscription receipts for Common Shares,
    Debt Securities, Warrants or any combination thereof
    (&#147;Subscription Receipts&#148;), or any combination thereof
    (&#147;Units&#148;) (collectively, the Common Shares, Debt
    Securities, Warrants, Subscription Receipts, and Units are
    referred to as the &#147;Securities&#148;) in one or more
    transactions under this prospectus (the &#147;Prospectus&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This Prospectus provides you with a general description of the
    Securities that the Company may offer. Each time the Company
    offers Securities, it will provide you with a prospectus
    supplement (the &#147;Prospectus Supplement&#148;) that
    describes specific information about the particular Securities
    being offered and may add, update or change information
    contained in this Prospectus. You should read both this
    Prospectus and the Prospectus Supplement, together with any
    additional information which is incorporated by reference into
    this Prospectus. <B>This Prospectus may not be used to offer or
    sell securities without the Prospectus Supplement which includes
    a description of the method and terms of that offering.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may sell the Securities on a continuous or delayed
    basis to or through underwriters, dealers or agents or directly
    to purchasers. The Prospectus Supplement, which the Company will
    provide to you each time it offers Securities, will set forth
    the names of any underwriters, dealers or agents involved in the
    sale of the Securities, and any applicable fee, commission or
    discount arrangements with them. For additional information on
    the methods of sale, you should refer to the section entitled
    &#147;Plan of Distribution&#148; in this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Common Shares are traded on the NYSE Amex and on the Toronto
    Stock Exchange under the symbol &#147;VGZ&#148;. On
    April&#160;24, 2009, the last reported sale price of the Common
    Shares on the NYSE Amex was $2.34 per share and on the Toronto
    Stock Exchange was Cdn$2.80 per share. <B>There is currently no
    market through which the Securities, other than the Common
    Shares, may be sold and purchasers may not be able to resell the
    Securities purchased under this Prospectus. This may affect the
    pricing of the Securities, other than the Common Shares, in the
    secondary market, the transparency and availability of trading
    prices, the liquidity of these Securities and the extent of
    issuer regulation. </B>See &#147;Risk Factors and
    Uncertainties&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in the Securities involves risks. See &#147;Risk
    Factors and Uncertainties&#148; on page&#160;5.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>These Securities have not been approved or disapproved by the
    U.S.&#160;Securities and Exchange Commission (&#147;SEC&#148;)
    or any state securities commission nor has the SEC or any state
    securities commission passed upon the accuracy or adequacy of
    this Prospectus. Any representation to the contrary is a
    criminal offense.</B>
</DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times; border-top: 1px solid #000000; padding-top: 3pt; border-right: 1px solid #000000; padding-right: 3pt; border-bottom: 1px solid #000000; padding-bottom: 3pt; border-left: 1px solid #000000; padding-left: 3pt; ">THE
    DATE OF THIS PROSPECTUS IS APRIL 27, 2009.</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
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</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="D81345tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="96%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345122'><B>ABOUT THIS PROSPECTUS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>1</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345123'><B>SUMMARY</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>2</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345124'><B>RISK FACTORS AND UNCERTAINTIES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>5</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345125'><B>DOCUMENTS INCORPORATED BY REFERNCE</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>16</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345126'><B>UNCERTAINTY OF FORWARD-LOOKING
    STATEMENTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>17</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345127'><B>CAUTIONARY NOTE&#160;TO U.S. INVESTORS
    REGARDING RESERVE AND RESOURCE ESTIMATES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>20</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345128'><B>PRESENTATION OF FINANCIAL INFORMATION AND
    EXCHANGE RATE DATA</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>20</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345129'><B>RECENT DEVELOPMENTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345130'><B>USE OF PROCEEDS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345131'><B>RATIO OF EARNINGS TO FIXED CHARGES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345132'><B>DESCRIPTION OF COMMON SHARES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>21</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345133'><B>DESCRIPTION OF DEBT SECURITIES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>22</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345134'><B>DESCRIPTION OF WARRANTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>34</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345135'><B>DESCRIPTION OF SUBSCRIPTION RECEIPTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>37</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345136'><B>DESCRIPTION OF UNITS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>40</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345137'><B>PLAN OF DISTRIBUTION</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>42</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345138'><B>CERTAIN CANADIAN FEDERAL INCOME TAX
    CONSIDERATIONS FOR U.S. RESIDENTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>43</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345139'><B>U.S. FEDERAL INCOME TAX CONSEQUENCES</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>45</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345140'><B>INTERESTS OF NAMED EXPERTS AND COUNSEL</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>52</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345141'><B>EXPERTS</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>52</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    <A HREF='#D81345142'><B>WHERE YOU CAN FIND MORE INFORMATION</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B>53</B>
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<A name='D81345122'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This Prospectus is a part of a registration statement that the
    Company filed with the SEC utilizing a &#147;shelf&#148;
    registration process. Under this shelf registration process, the
    Company may sell any combination of the Securities described in
    this Prospectus in one or more offerings up to a total dollar
    amount of initial aggregate offering price of $200,000,000. This
    Prospectus provides you with a general description of the
    Securities that we may offer. The specific terms of the
    Securities in respect of which this Prospectus is being
    delivered will be set forth in a Prospectus Supplement and may
    include, where applicable: (i)&#160;in the case of Common
    Shares, the number of Common Shares offered, the offering price
    and any other specific terms of the offering; (ii)&#160;in the
    case of Debt Securities, the specific designation, aggregate
    principal amount, currency or the currency unit for which such
    Debt Securities may be purchased, maturity, interest provisions,
    authorized denominations, offering price, covenants, events of
    default, any redemption terms, any sinking fund provisions, any
    exchange or conversion terms, whether payment on the Debt
    Securities will be senior or subordinated to the Company&#146;s
    other liabilities and obligations and any other specific terms;
    (iii)&#160;in the case of Warrants, the designation, number and
    terms of the Common Shares or Debt Securities purchasable upon
    exercise of the Warrants, any procedures that will result in the
    adjustment of those numbers, the exercise price, dates and
    periods of exercise, and the currency or the currency unit in
    which the exercise price must be paid and any other specific
    terms; (iv)&#160;in the case of Subscription Receipts, the
    designation, number and terms of the Common Shares, Warrants or
    Debt Securities receivable upon satisfaction of certain release
    conditions, any procedures that will result in the adjustment of
    those numbers, any additional payments to be made to holders of
    Subscription Receipts upon satisfaction of the release
    conditions, the terms of the release conditions, terms governing
    the escrow of all or a portion of the gross proceeds from the
    sale of the Subscription Receipts, terms for the refund of all
    or a portion of the purchase price for Subscription Receipts in
    the event the release conditions are not met and any other
    specific terms; and (v)&#160;in the case of Units, the
    designation, number and terms of the Common Shares, Warrants,
    Debt Securities or Subscription Receipts comprising the Units. A
    Prospectus Supplement may include specific variable terms
    pertaining to the Securities that are not within the
    alternatives and parameters set forth in this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with any offering of the Securities (unless
    otherwise specified in a Prospectus Supplement), the
    underwriters or agents may over-allot or effect transactions
    which stabilize or maintain the market price of the Securities
    offered at a higher level than that which might exist in the
    open market. Such transactions, if commenced, may be interrupted
    or discontinued at any time. See &#147;Plan of
    Distribution&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Please carefully read both this Prospectus and any Prospectus
    Supplement together with the documents incorporated herein by
    reference under &#147;Documents Incorporated by Reference&#148;
    and the additional information described below under &#147;Where
    You Can Find More Information.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Owning securities may subject you to tax consequences both in
    Canada and the United States. This Prospectus or any applicable
    Prospectus Supplement may not describe these tax consequences
    fully. You should read the tax discussion in any Prospectus
    Supplement with respect to a particular offering and consult
    your own tax advisor with respect to your own particular
    circumstances.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    References in this Prospectus to &#147;$&#148; are to United
    States dollars. Canadian dollars are indicated by the symbol
    &#147;Cdn$&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained in this
    Prospectus. The Company has not authorized anyone to provide you
    with information different from that contained in this
    Prospectus. The distribution or possession of this Prospectus in
    or from certain jurisdictions may be restricted by law. This
    Prospectus is not an offer to sell these Securities and is not
    soliciting an offer to buy these Securities in any jurisdiction
    where the offer or sale is not permitted or where the person
    making the offer or sale is not qualified to do so or to any
    person to whom it is not permitted to make such offer or sale.
    The information contained in this Prospectus is accurate only as
    of the date of this Prospectus, regardless of the time of
    delivery of this Prospectus or of any sale of the Securities.
    The Company&#146;s business, financial condition, results of
    operations and prospects may have changed since that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In this Prospectus and in any Prospectus Supplement, unless the
    context otherwise requires, references to &#147;Vista&#148; and
    the &#147;Company&#148; refer to Vista Gold Corp., either alone
    or together with its subsidiaries.
</DIV>
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    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">


    <A name='D81345123'><B><FONT style="font-family: 'Times New Roman', Times">SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vista Gold Corp. was originally incorporated on
    November&#160;28, 1983 under the name &#147;Granges Exploration
    Ltd.&#148;. In November 1983, Granges Exploration Ltd. acquired
    all the mining interests of Granges AB in Canada. On
    June&#160;28, 1985, Granges Exploration Ltd. and Pecos Resources
    Ltd. amalgamated under the name &#147;Granges Exploration
    Ltd.&#148; and on June&#160;9, 1989, Granges Exploration Ltd.
    changed its name to &#147;Granges Inc.&#148; On May&#160;1,
    1995, Granges Inc. and Hycroft Resources&#160;&#038; Development
    Corporation were amalgamated under the name &#147;Granges
    Inc.&#148; Effective November&#160;1, 1996, Granges Inc. and Da
    Capo Resources Ltd. amalgamated under the name &#147;Vista Gold
    Corp.&#148; Effective December&#160;17, 1997, Vista Gold Corp.
    was continued from British Columbia to the Yukon Territory,
    Canada under the <I>Business Corporations Act </I>(Yukon
    Territory). On September&#160;22, 2006, the Company entered into
    an Arrangement and Merger Agreement (the &#147;Arrangement
    Agreement&#148;) with Allied Nevada Gold Corp. (&#147;Allied
    Nevada&#148;), Carl Pescio and Janet Pescio (the
    &#147;Pescios&#148;), pursuant to which the Company&#146;s
    Nevada-based mining properties and related assets were
    transferred to Allied Nevada and the Pescios&#146; interests in
    certain Nevada-based mining properties and related assets were
    transferred to Allied Nevada. Completion of the transaction
    occurred on May&#160;10, 2007. The current addresses, telephone
    and facsimile numbers of the offices of the Company are:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
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    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="48%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Executive Office</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 9pt">Registered and Records
    Office</FONT></B>
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="center" valign="top">
    Suite&#160;5&#160;- 7961 Shaffer Parkway<BR>
    Littleton, Colorado, USA 80127<BR>
    Telephone:
    <FONT style="white-space: nowrap">(720)&#160;981-1185</FONT><BR>
    Facsimile:
    <FONT style="white-space: nowrap">(720)&#160;981-1186</FONT>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    200 - 204 Lambert Street<BR>
    Whitehorse, Yukon Territory, Canada Y1A 3T2<BR>
    Telephone: (867) 667-7600<BR>
    Facsimile: (867) 667-7885
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Business
    of the Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is currently engaged in the evaluation, acquisition,
    exploration and advancement of gold exploration and potential
    development projects. Historically, the Company&#146;s approach
    to acquisitions of gold projects has generally been to seek
    projects within political jurisdictions with well established
    mining, land ownership and tax laws, which have adequate
    drilling and geological data to support the completion of a
    third-party review of the geological data and to complete an
    estimate of mineral resources
    <FONT style="white-space: nowrap">and/or</FONT>
    mineral reserves. In addition, the Company looks for
    opportunities to improve the value of its gold projects
    including through exploration drilling and re-engineering the
    operating assumptions underlying previous engineering work.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Beginning in 2007, the Company&#146;s Board of Directors and
    management decided to take on a new direction regarding the
    Company&#146;s more advanced gold projects. The Company plans to
    move its more advanced projects forward through advanced and
    pre-feasibility studies, so production decisions can be made on
    those projects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Currently, the Company&#146;s holdings include the Paredones
    Amarillos gold project in Mexico; the Mt. Todd gold project in
    Australia; the Guadalupe de los Reyes gold project in Mexico;
    the Yellow Pine gold project in Idaho; the Awak Mas gold project
    in Indonesia; the Long Valley gold project in California; and
    mining claims in Colorado and Utah. The Company also owns
    approximately 25% of the shares of Zamora Gold Corp., a company
    exploring for gold in Ecuador. Additional information about
    these projects is available in the Company&#146;s amendment
    number one to its Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K/A</FONT>
    for the year ended December&#160;31, 2008, filed on
    <FONT style="white-space: nowrap">Form&#160;10-K/A</FONT>
    under &#147;Item&#160;2. Properties&#148;. In April 2008, the
    Company sold its Amayapampa gold project in Bolivia to Republic
    Gold Limited, an Australian mining company (see
    &#147;Significant Developments in 2008&#151;Sale of Amayapampa
    Gold Project, Bolivia&#148; in the Company&#146;s Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company does not produce gold and does not currently
    generate operating earnings. Through fiscal 2008 and fiscal 2009
    to date, funding to acquire and explore gold properties and to
    operate the Company has been principally acquired through equity
    and debt financings (consisting of private placements of equity
    units consisting of Common Shares and warrants to purchase
    Common Shares, public offerings of Common Shares
</DIV>
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    <BR>
    2
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    and, in March 2008, a brokered private placement of senior
    secured convertible notes (the &#147;Notes&#148;)) and the sale
    of securities held by the Company (consisting of the sale of
    shares of Allied Nevada Gold Corp. held by the Company). The
    Company expects to continue to raise capital through additional
    equity
    <FONT style="white-space: nowrap">and/or</FONT> debt
    financings, and through the exercise of stock options and
    warrants. The Company anticipates raising funds for interim
    financing needs through various bridge loan or convertible debt
    alternatives.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Securities Offered under this Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer the Common Shares, Debt Securities,
    Warrants, Subscription Receipts, or Units with a total value of
    up to $200,000,000&#160;million from time to time under this
    Prospectus, together with any applicable Prospectus Supplement
    and related free writing prospectus, at prices and on terms to
    be determined by market conditions at the time of offering. This
    Prospectus provides you with a general description of the
    Securities the Company may offer. Each time the Company offers
    Securities, it will provide a Prospectus Supplement that will
    describe the specific amounts, prices and other important terms
    of the Securities, including, to the extent applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    designation or classification;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    aggregate principal amount or aggregate offering price;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    maturity, if applicable;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    original issue discount, if any;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    rates and times of payment of interest or dividends, if any;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    redemption, conversion, exchange or sinking fund terms, if any;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    conversion or exchange prices or rates, if any, and, if
    applicable, any provisions for changes to or adjustments in the
    conversion or exchange prices or rates and in the securities or
    other property receivable upon conversion or exchange;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    ranking;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    restrictive covenants, if any;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    voting or other rights, if any;&#160;and
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    important United States federal income tax considerations.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Prospectus Supplement and any related free writing prospectus
    that the Company may authorize to be provided to you may also
    add, update or change information contained in this Prospectus
    or in documents the Company has incorporated by reference.
    However, no Prospectus Supplement or free writing prospectus
    will offer a security that is not registered and described in
    this Prospectus at the time of the effectiveness of the
    registration statement of which this Prospectus is a part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may sell the Securities on a continuous or delayed
    basis to or through underwriters, dealers or agents or directly
    to purchasers. The Prospectus Supplement, which the Company will
    provide to you each time it offers Securities, will set forth
    the names of any underwriters, dealers or agents involved in the
    sale of the Securities, and any applicable fee, commission or
    discount arrangements with them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Common
    Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer Common Shares. Holders of Common Shares
    are entitled to one vote per Common Share on all matters that
    require shareholder approval. Holders of our Common Shares are
    entitled to dividends when and if declared by the Board of
    Directors of the Company. Our Common Shares are described in
    greater detail in this Prospectus under &#147;Description of
    Common Shares.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer debt securities from time to time, in one
    or more series, as either senior or subordinated debt or as
    senior or subordinated convertible debt. The debt securities
    will be issued under one or more documents called indentures,
    which are contracts between the Company and a trustee for the
    holders of the debt securities. In this Prospectus, the Company
    has summarized certain general features of the debt securities
    under &#147;Description of Debt Securities.&#148; The Company
    urges you, however, to read any Prospectus Supplement and any
</DIV>
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    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    free writing prospectus that the Company may authorize to be
    provided to you related to the series of debt securities being
    offered, as well as the complete indentures that contain the
    terms of the debt securities. A form of indenture has been filed
    as an exhibit to the registration statement of which this
    Prospectus is a part, and supplemental indentures and forms of
    debt securities containing the terms of debt securities being
    offered will be filed as exhibits to the registration statement
    of which this Prospectus is a part, or incorporated by reference
    from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Warrants</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer Warrants for the purchase of Common Shares
    or Debt Securities, in one or more series, from time to time.
    The Company may issue Warrants independently or together with
    Common Shares, Debt Securities, or Subscription Receipts, and
    the Warrants may be attached to or separate from such securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Warrants will be evidenced by warrant certificates and may
    be issued under one or more warrant indentures, which are
    contracts between the Company and a warrant trustee for the
    holders of the Warrants. In this prospectus, the Company has
    summarized certain general features of the Warrants under
    &#147;Description of Warrants.&#148; The Company urges you,
    however, to read any Prospectus Supplement and any free writing
    prospectus that the Company may authorize to be provided to you
    related to the series of Warrants being offered, as well as the
    complete warrant indentures and warrant certificates that
    contain the terms of the Warrants. Specific warrant indentures
    will contain additional important terms and provisions and will
    be filed as exhibits to the registration statement of which this
    Prospectus is a part, or incorporated by reference from a
    current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Subscription
    Receipts</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Subscription Receipts, which will entitle
    holders to receive upon satisfaction of certain release
    conditions and for no additional consideration, Common Shares,
    Debt Securities, Warrants or any combination thereof.
    Subscription Receipts will be issued pursuant to one or more
    subscription receipt agreements, each to be entered into between
    the Company and an escrow agent, which will establish the terms
    and conditions of the Subscription Receipts. Each escrow agent
    will be a financial institution organized under the laws of
    Canada or a province thereof and authorized to carry on business
    as a trustee. A copy of the form of subscription receipt
    agreement will be filed as an exhibit to the registration
    statement of which this Prospectus is a part, or will be
    incorporated by reference from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Units</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer Units consisting of Common Shares, Debt
    Securities, Warrants
    <FONT style="white-space: nowrap">and/or</FONT>
    Subscription Receipts to purchase any of such securities in one
    or more series. In this Prospectus, we have summarized certain
    general features of the Units under &#147;Description of
    Units.&#148; The Company urges you, however, to read any
    Prospectus Supplement and any free writing prospectus that the
    Company may authorize to be provided to you related to the
    series of Units being offered. The Company may evidence each
    series of units by unit certificates that the Company will issue
    under a separate unit agreement with a unit agent. The Company
    will file as exhibits to the registration statement of which
    this Prospectus is a part, or will incorporate by reference from
    a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC, the unit agreements that
    describe the terms of the series of Units the Company is
    offering before the issuance of the related series of Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Ratio of
    Earnings to Fixed Charges</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s ratio of earnings to fixed charges for the
    year ended December&#160;31, 2008 is less than
    <FONT style="white-space: nowrap">one-to-one.</FONT>
    See &#147;Ratio of Earnings to Fixed Charges&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>THIS PROSPECTUS MAY NOT BE USED TO OFFER OR SELL ANY
    SECURITIES UNLESS ACCOMPANIED BY A PROSPECTUS SUPPLEMENT.</B>
</DIV>
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    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<A name='D81345124'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS AND UNCERTAINTIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Investing in the Securities involves a high degree of risk.
    Prospective investors in a particular offering of Securities
    should carefully consider the following risks, as well as the
    other information contained in this Prospectus, any applicable
    Prospectus Supplement, and the documents incorporated by
    reference herein before investing in the Securities. If any of
    the following risks actually occurs, the Company&#146;s business
    could be materially harmed. The risks and uncertainties
    described below are not the only ones the Company faces.
    Additional risks and uncertainties, including those of which the
    Company is currently unaware or that the Company deems
    immaterial, may also adversely affect the Company&#146;s
    business.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company is a &#147;passive foreign investment
    company&#148; for U.S.&#160;tax purposes, which can have a
    materially adverse effect on a U.S.&#160;shareholder&#146;s
    economic return on investment in the Company&#146;s Common
    Shares.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For U.S.&#160;federal income tax purposes, the Company was
    classified as a passive foreign investment company
    (&#147;PFIC&#148;) under section&#160;1297 of the
    U.S.&#160;Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;) for its taxable year ended December&#160;31,
    2008, and likely will be a PFIC in subsequent taxable years
    until it has significant operating income. Classification of a
    corporation as a PFIC is a tax attribute which may have a
    material adverse effect on a U.S.&#160;shareholder&#146;s
    economic return. Whether, and to what extent, there will be a
    material adverse effect depends to a very large extent on
    whether a U.S.&#160;shareholder makes certain elections in
    timely fashion. These elections are discussed in the
    Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, under
    &#147;Part&#160;II&#151;Item&#160;5. Market for
    Registrant&#146;s Common Equity, Related Stockholder Matters and
    Issuer Purchases of Equity Securities&#151;Certain
    U.S.&#160;Federal Income Tax Considerations&#148;. Each
    U.S.&#160;investor in the Company&#146;s Common Shares is urged
    to review that discussion and consult an independent
    U.S.&#160;tax adviser, because the PFIC rules are complex.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Feasibility study results and preliminary assessment
    results are based on estimates that are subject to
    uncertainty.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Feasibility studies are used to determine the economic viability
    of a deposit, as are pre-feasibility studies and preliminary
    assessments. Feasibility studies are the most detailed and
    reflect a higher level of confidence in the reported capital and
    operating costs. Generally accepted levels of confidence are
    plus or minus 15% for feasibility studies, plus or minus
    <FONT style="white-space: nowrap">25-30%</FONT> for
    pre-feasibility studies and plus or minus
    <FONT style="white-space: nowrap">35-40%</FONT> for
    preliminary assessments. These levels reflect the levels of
    confidence that exist at the time the study is completed. While
    these studies are based on the best information available to the
    Company for the level of study, the Company cannot be certain
    that actual costs will not significantly exceed the estimated
    cost. While the Company incorporates what it believes is an
    appropriate contingency factor in cost estimates to account for
    this uncertainty, there can be no assurance that the contingency
    factor is adequate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The economic viability of a deposit is based on many
    factors that are subject to uncertainty.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Many factors are involved in the determination of the economic
    viability of a deposit, including the achievement of
    satisfactory mineral reserve estimates, the level of estimated
    metallurgical recoveries, capital and operating cost estimates
    and estimates of future gold prices. Resource estimates are
    based on the assay results of many intervals from many drill
    holes and the interpolation of those results between holes.
    There is no certainty that metallurgical recoveries obtained in
    bench scale or pilot plant scale tests will be achieved in
    commercial operations. Capital and operating cost estimates are
    based upon many factors, including anticipated tonnage and
    grades of ore to be mined and processed, the configuration of
    the orebody, ground and mining conditions, expected recovery
    rates of the gold from the ore and anticipated environmental and
    regulatory compliance costs. Each of these factors involves
    uncertainties and as a result, the Company cannot give any
    assurance that its development or exploration projects will
    become operating mines. Further, it may take many years from the
    initial phase of drilling before production is possible and,
    during that time, the economic feasibility of exploiting a
    discovery may change as the result of changing commodity and
    supply costs. If a mine is developed, actual operating results
    may differ from those anticipated in a feasibility study.
</DIV>
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    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>There may be delays in commencement of construction on the
    Paredones Amarillos gold project.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Delays in commencement of construction could result from delays
    in receiving the required governmental permits including the
    Change of Land Use Permit (&#147;CUSF&#148;) and the Temporary
    Occupation Permit (&#147;TOP&#148;) (for the life of the
    project), or from factors such as availability and performance
    of engineering and construction contractors, suppliers and
    consultants, availability of required equipment and receipt of
    required governmental approvals. Any delay in the performance of
    any one or more of the contractors, suppliers, consultants or
    other persons on which we depend, or lack of availability of
    required equipment, or delay or failure to receive required
    governmental approvals, could delay or prevent commencement of
    construction on the Paredones Amarillos gold project. There can
    be no assurance whether or when construction at the Paredones
    Amarillos gold project will commence or that the necessary
    personnel, equipment or supplies will be available to the
    Company if and when construction is commenced. If the Company is
    unable to acquire permits to mine the property, then it will
    have no reserves under SEC Industry Guide 7.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The final status of the Company&#146;s required
    governmental permits for the Paredones Amarillos gold project
    could negatively impact its mineral reserves.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has not yet received its required governmental
    permits for the Paredones Amarillos gold project. We decided to
    apply for a new CUSF and have presented an application for a TOP
    for the use of the federal land which overlies the Paredones
    Amarillos deposit. The TOP is a necessary pre-requisite for the
    CUSF application. The Company has not yet received the TOP,
    which was expected by the end of 2008. Communications that the
    Company&#146;s advisors have had with the office of the General
    Director of Mines of the Ministry of Economy (the department
    responsible for awarding the TOP) indicate that the approval
    process is proceeding normally, but at a slower pace than
    expected. However, there are many variables and uncertainties
    involved throughout the TOP and CUSF approval process and
    approval is not guaranteed. If the Company is unable to secure a
    TOP and CUSF, Mexican law will prohibit it from mining the
    Paredones Amarillos gold project and, accordingly, the Company
    will have no reserves at Paredones Amarillos under SEC Industry
    Guide 7.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Increased costs could affect the Company&#146;s financial
    condition.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company anticipates that costs at its projects including the
    Paredones Amarillos gold project, Mt. Todd gold project and its
    Awak Mas gold project as well as other properties that it may
    explore or develop, will frequently be subject to variation from
    one year to the next due to a number of factors, such as
    changing ore grade, metallurgy and revisions to mine plans in
    response to the physical shape and location of the ore body. In
    addition, costs are affected by the price of commodities such as
    fuel and electricity. Such commodities are, at times, subject to
    volatile price movements, including increases that could make
    production at certain operations less profitable. A material
    increase in costs at any significant location could have a
    significant effect on the Company&#146;s profitability.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>A shortage of equipment and supplies could adversely
    affect the Company&#146;s ability to operate its
    business.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is dependent on various supplies and equipment to
    carry out its mining exploration and development operations. The
    shortage of such supplies, equipment and parts could have a
    material adverse effect on the Company&#146;s ability to carry
    out its operations and therefore limit or increase the cost of
    production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>We cannot be certain that the Company&#146;s acquisition,
    exploration and development activities will be commercially
    successful.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company currently has no properties that produce gold in
    commercial quantities. Substantial expenditures are required to
    acquire existing gold properties, to establish mineral reserves
    through drilling and analysis, to develop metallurgical
    processes to extract metal from the ore and, in the case of new
    properties, to develop the mining and processing facilities and
    infrastructure at any site chosen for mining. The Company cannot
    be assured that any mineral reserves or mineral resources
    acquired or discovered will be in sufficient quantities to
    justify commercial operations or that the funds required for
    development can be obtained on a timely basis.
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The price of gold is subject to fluctuations, which could
    adversely affect the realizable value of the Company&#146;s
    assets and potential future results of operations and cash
    flow.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s principal assets are mineral reserves and
    mineral resources. The Company intends to attempt to acquire
    additional properties containing mineral reserves and mineral
    resources. The price that the Company pays to acquire these
    properties will be, in large part, influenced by the price of
    gold at the time of the acquisition. The Company&#146;s
    potential future revenues are expected to be, in large part,
    derived from the mining and sale of gold from these properties
    or from the outright sale or joint venture of some of these
    properties. The value of these mineral reserves and mineral
    resources, and the value of any potential gold production
    therefrom, will vary in proportion to variations in gold prices.
    The price of gold has fluctuated widely, and is affected by
    numerous factors beyond the Company&#146;s control including,
    but not limited to, international, economic and political
    trends, expectations of inflation, currency exchange
    fluctuations, central bank activities, interest rates, global or
    regional consumption patterns and speculative activities. The
    effect of these factors on the price of gold, and therefore the
    economic viability of any of the Company&#146;s projects, cannot
    accurately be predicted. Any drop in the price of gold would
    adversely affect the Company&#146;s asset values, cash flows,
    potential revenues and profits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Mining exploration, development and operating activities
    are inherently hazardous.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mineral exploration involves many risks that even a combination
    of experience, knowledge and careful evaluation may not be able
    to overcome. Operations in which the Company has direct or
    indirect interests will be subject to all the hazards and risks
    normally incidental to exploration, development and production
    of gold and other metals, any of which could result in work
    stoppages, damage to property and possible environmental damage.
    The nature of these risks is such that liabilities might exceed
    any liability insurance policy limits. It is also possible that
    the liabilities and hazards might not be insurable, or, the
    Company could elect not to be insured against such liabilities
    due to high premium costs or other reasons, in which event, the
    Company could incur significant costs that could have a material
    adverse effect on its financial condition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Calculations of mineral reserves and of mineral resources
    are estimates only, subject to uncertainty due to factors
    including metal prices, inherent variability of the ore, and
    recoverability of metal in the mining process.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There is a degree of uncertainty attributable to the calculation
    of reserves and corresponding grades dedicated to future
    production. Until mineral reserves are actually mined and
    processed, the quantity of ore and grades must be considered as
    estimates only. In addition, the quantity of mineral reserves
    and ore may vary depending on metal prices. Estimates of mineral
    resources are subject to uncertainty as well. The estimating of
    mineral reserves and mineral resources is a subjective process
    and the accuracy of such estimates is a function of the quantity
    and quality of available data and the assumptions used and
    judgments made in interpreting engineering and geological
    information. There is significant uncertainty in any mineral
    reserve or mineral resource estimate, and the actual deposits
    encountered and the economic viability of mining a deposit may
    differ materially from the Company&#146;s estimates. Estimated
    mineral reserves or mineral resources may have to be
    recalculated based on changes in metal prices, further
    exploration or development activity or actual production
    experience. This could materially and adversely affect estimates
    of the volume or grade of mineralization, estimated recovery
    rates or other important factors that influence estimates of
    mineral reserves or mineral resources. Any material change in
    the quantity of mineral reserves, mineralization, grade or
    stripping ratio may affect the economic viability of the
    Company&#146;s properties. In addition, there can be no
    assurance that gold recoveries or other metal recoveries in
    small-scale laboratory tests will be duplicated in larger scale
    tests under
    <FONT style="white-space: nowrap">on-site</FONT>
    conditions or during production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company&#146;s exploration and development operations
    are subject to environmental regulations, which could result in
    the Company incurring additional costs and operational
    delays.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All phases of the Company&#146;s operations are subject to
    environmental regulation. Environmental legislation is evolving
    in some countries or jurisdictions in a manner which will
    require stricter standards and enforcement, increased fines and
    penalties for non-compliance, more stringent environmental
    assessments of proposed projects and a heightened degree of
    responsibility for companies and their officers, directors and
    employees.
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There is no assurance that future changes in environmental
    regulation, if any, will not adversely affect the Company&#146;s
    projects. The Company is currently subject to U.S.&#160;federal
    and state government environmental regulations with respect to
    its properties in Idaho and California in the United States. The
    Company is also currently subject to environmental regulations
    with respect to its properties in Mexico, Australia and
    Indonesia.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The U.S.&#160;Bureau of Land Management requires that mining
    operations on lands subject to its regulation obtain an approved
    plan of operations subject to environmental impact evaluation
    under the <I>National Environmental Policy Act</I>. Any
    significant modifications to the plan of operations may require
    the completion of an environmental assessment or Environmental
    Impact Statement (&#147;EIS&#148;) prior to approval. Mining
    companies must post a bond or other surety to guarantee the cost
    of post-mining reclamation. These requirements could add
    significant additional cost and delays to any mining project the
    Company undertakes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the U.S.&#160;<I>Resource Conservation and Recovery
    Act</I>, mining companies may incur costs for generating,
    transporting, treating, storing, or disposing of hazardous
    waste, as well as for closure and post-closure maintenance once
    they have completed mining activities on a property. The
    Company&#146;s mining operations may produce air emissions,
    including fugitive dust and other air pollutants, from
    stationary equipment, storage facilities, and the use of mobile
    sources such as trucks and heavy construction equipment which
    are subject to review, monitoring
    <FONT style="white-space: nowrap">and/or</FONT>
    control requirements under the <I>Federal Clean Air Act </I>and
    state air quality laws. Permitting rules may impose limitations
    on the Company&#146;s production levels or create additional
    capital expenditures in order to comply with the rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The U.S.&#160;<I>Comprehensive Environmental Response
    Compensation and Liability Act of 1980</I>, as amended
    (&#147;CERCLA&#148;), imposes strict, joint and several
    liability on parties associated with releases or threats of
    releases of hazardous substances. Those liable groups include,
    among others, the current owners and operators of facilities
    which release hazardous substances into the environment and past
    owners and operators of properties who owned such properties at
    the time the disposal of the hazardous substances occurred. This
    liability could include the cost of removal or remediation of
    the release and damages for injury to the surrounding property.
    The Company cannot predict the potential for future CERCLA
    liability with respect to its U.S.&#160;properties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Idaho
    Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Permitting a mining operation, such as Yellow Pine, located on
    patented mining claims within a National Forest in Idaho would
    require obtaining various federal, state and local permits under
    the coordination of the Idaho joint review process. Mining
    projects require the establishment and presentation of
    environmental baseline conditions for air, water, vegetation,
    wildlife, cultural, historical, geological, geotechnical,
    geochemical, soil and socioeconomic parameters. An EIS would be
    required for any mining activities proposed on public lands.
    Permits would also be required for storm-water discharge;
    wetland disturbance (dredge and fill); surface mining; cyanide
    use, transport and storage; air quality; dam safety (for water
    storage
    <FONT style="white-space: nowrap">and/or</FONT>
    tailing storage); septic and sewage; water rights appropriation;
    and possibly others. In addition, compliance must be
    demonstrated with the <I>Endangered Species Act </I>and the
    <I>National Historical Preservation Act</I> consultation
    process. Possible county zoning and building permits and
    authorization may be required. Baseline environmental conditions
    are the basis by which direct and indirect project-related
    impacts are evaluated and by which potential mitigation measures
    are proposed. If the Company&#146;s project is found to
    significantly adversely impact any of these baseline conditions,
    it could incur significant costs to correct the adverse impact,
    or might have to delay the start of production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">California
    Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A new mining operation in California, such as the Long Valley
    gold project, which is on federal unpatented mining claims
    within a National Forest, requires various federal, state and
    local permits. Mining projects require the establishment and
    presentation of environmental baseline conditions for air,
    water, vegetation, wildlife, cultural, historical, geological,
    geotechnical, geochemical, soil, and socioeconomic parameters.
    An EIS would
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    be required for any mining activities proposed on public lands.
    Also required would be a Plan of Operations/Reclamation Plan,
    and permits for waste-water discharge; a county mining plan and
    reclamation plan; a county mining operations permit; special use
    permits from the U.S.&#160;Forest Service; and possibly others.
    In addition, compliance must be demonstrated with the Endangered
    Species Act and the National Historical Preservation Act
    consultation process. Possible county zoning and building
    permits and authorization may be required. Baseline
    environmental conditions are the basis by which direct and
    indirect project-related impacts are evaluated and by which
    potential mitigation measures are proposed. If the
    Company&#146;s project is found to significantly adversely
    impact any of these baseline conditions, it could incur
    significant costs to correct the adverse impact, or delay the
    start of production. In addition, on December&#160;12, 2002,
    California adopted a &#147;backfilling law&#148; requiring
    open-pit surface mining operations for metallic minerals to
    back-fill the mines. While the Company has determined that the
    geometry of our Long Valley gold project would lend itself to
    compliance with this law, future adverse changes to this law
    could have a corresponding adverse impact on the Company&#146;s
    financial performance and results of operations, for example, by
    requiring changes to operating constraints, technical criteria,
    fees or surety requirements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Mexico
    Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is required under Mexican laws and regulations to
    acquire permits and other authorizations before the Paredones
    Amarillos or Guadalupe de los Reyes gold projects can be
    developed and mined. Since the passage of Mexico&#146;s 1988
    General Law on Ecological Equilibrium and Environmental
    Protection, a sophisticated system for environmental regulation
    has evolved. In addition, the North American Free Trade
    Agreement requirements for regulatory standards in Mexico
    equivalent to those of the United States and Canada have
    obligated the Mexican government to continue further development
    of environmental regulation. Most regulatory programs are
    implemented by various divisions of the Secretariat of
    Environment and Natural Resources of Mexico
    (&#147;SEMARNAT&#148;). While the Company believes that it has
    or will be able to obtain on a timely basis the necessary
    permits to place the Paredones Amarillos gold project into
    production, there can be no assurance that the Company will be
    able to acquire updates to necessary permits or authorizations
    on a timely basis. See discussions of Paredones Amarillos permit
    status in the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, under
    &#147;Part&#160;II&#151;Item&#160;7. Management&#146;s
    Discussion and Analysis of Financial Condition and Results of
    Operations&#151;Other&#148;. Likewise, there can be no assurance
    that the Company will be able to acquire the necessary permits
    or authorizations on a timely basis to place the Guadalupe de
    los Reyes gold project into production. Delays in acquiring any
    permit, authorization or updates could increase the development
    cost of the Paredones Amarillos gold project or the Guadalupe de
    los Reyes gold project, or delay the start of production. The
    most significant environmental permitting requirements, as they
    relate to the Paredones Amarillos and the Guadalupe de los Reyes
    gold projects are developing reports on environmental impacts;
    regulation and permitting of discharges to air, water and land;
    new source performance standards for specific air and water
    pollutant emitting sources; solid and hazardous waste management
    regulations; developing risk assessment reports; developing
    evacuation plans; and monitoring inventories of hazardous
    materials. If the Paredones Amarillos or the Guadalupe de los
    Reyes gold projects are found to not be in compliance with any
    of these requirements, the Company could incur significant
    compliance costs, or might have to delay the start of production.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Australia
    Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Mineral projects in the Northern Territory are subject to
    Northern Territory laws and regulations regarding environmental
    matters and the discharge of hazardous wastes and materials. As
    with all mining projects, the Mt.&#160;Todd gold project would
    be expected to have a variety of environmental impacts should
    development proceed. The Company is required under Australian
    laws and regulations (federal, state and territorial) to acquire
    permits and other authorizations before the Mt. Todd gold
    project can be developed and mined. In Australia, environmental
    legislation plays a significant role in the mining industry.
    Various environmental documents such as the EIS over the Mt.
    Todd gold project, covering studies on, inter alia, air, water,
    pollution, hazardous and toxic wastes, reclamation of mining
    area, etc. must be prepared and submitted to the Mining and
    Petroleum
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Authorizations and Evaluation Division of the Department of
    Regional Development, Primary Industry, Fisheries and Resources
    of the Northern Territory government for approval.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The preparations of the EIS and related documents and other
    relevant environmental licenses would involve incurrence of time
    and costs and there is no assurance that those
    approvals/licenses can be obtained in a timely manner. The
    Northern Territory government also has administrative discretion
    not to approve the EIS documents or grant the required
    environmental licenses (including any renewal or extensions of
    such documents). The Company has entered into an agreement with
    the Northern Territory relating to environmental and
    rehabilitation issues. The Company must also comply with
    Aboriginal heritage legislation requirements which require
    heritage survey work to be undertaken prior to the commencement
    of mining operations. All these conditions may result in the
    occurrence of significant production costs and delay the
    production activity of the Mt. Todd gold project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These conditions could frustrate investors seeking certainty in
    their investments and, as a result, the Company may incur costs
    and time to manage any issues which may arise and that could
    possibly affect the overall mining activity of the Mt. Todd gold
    project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Indonesia
    Laws</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are required under Indonesian laws and regulations to acquire
    permits and other authorizations before the Company&#146;s
    current Indonesian mining project, the Awak Mas gold project,
    can be developed and mined. In Indonesia, environmental
    legislation plays a significant role in the mining industry.
    Various environmental documents such as the analysis of
    environmental impact (&#147;AMDAL&#148;) concerning the Awak Mas
    gold project, covering studies on, inter alia, air, water, land,
    pollution, hazardous and toxic wastes and reclamation of mining
    area, must be prepared and submitted to the Ministry of
    Environment for approval. In addition, the Company is also
    required to submit periodical environmental reports to the
    relevant environmental government agencies pursuant to the AMDAL
    and other required environmental licenses (e.g. license for
    tailing waste).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The preparation of AMDAL documents and other relevant
    environmental license documents involves incurrence of time and
    costs and there is no assurance that those approvals/licenses
    can be obtained in a timely manner. The Indonesian government
    also has administrative discretion not to approve AMDAL
    documents or grant the required environmental licenses
    (including any renewal or extensions of such documents). All
    these conditions may delay the production activity of the Awak
    Mas gold project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Failure to meet all of the requirements with respect to the
    above environmental documents, licensing and report submissions
    could cause the Company to be subject to administrative and
    criminal sanctions as well as fines. In extreme cases, the
    administrative sanctions can also be imposed in the form of
    revocation of the Company&#146;s business license and the
    contract of work that it has with the Indonesian government.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As well, from time to time the implementation of the regional
    autonomy law in Indonesia can cause uncertainty as to the
    existence and applicability of national and regional regulations
    (including in the environmental sector). Often regional
    regulations are in conflict with higher regulations that apply
    nationally. As a result the Company may incur costs and time to
    manage any issues which may arise and that could possibly affect
    the overall mining activity of the Awak Mas gold project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company&#146;s receipt of future payments in
    connection with its disposal of the Amayapampa gold project is
    subject to uncertainty.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In April 2008, the Company announced the disposal of its
    wholly-owned subsidiary Vista Gold (Antigua) Corp. (&#147;Vista
    Gold Antigua&#148;) to Republic Gold Corp.
    (&#147;Republic&#148;). Vista Gold Antigua indirectly held the
    Company&#146;s interest in the Amayapampa gold project in
    Bolivia. For further details, see the Company&#146;s Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, and in particular
    &#147;Part&#160;I&#151;Financial Information&#151;Item&#160;2.
    Management&#146;s Discussion and Analysis of Financial Condition
    and Results of Operations&#151;Other&#151;Disposal of Amayapampa
    gold project&#148;. Under the terms of the transaction, Republic
    has agreed to pay the Company $3.0&#160;million in three
    payments of $1.0&#160;million. The first of these payments is
    due and payable upon the start of commercial production (as
    defined in the purchase and sale agreement) at Amayapampa
    followed by
</DIV>
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    $1.0&#160;million payments on each of the first and second
    anniversaries of the start of commercial production. In
    addition, Republic has agreed to pay the Company a net smelter
    return royalty on the gold produced by or on behalf of Republic
    from the Amayapampa gold project in varying percentages
    depending on the price of gold per ounce. The Amayapampa gold
    project is not currently in production and the Company cannot
    assure that it will ever become a producing mine or, if
    production is commenced at the mine, the timing and amounts for
    any such production. Further, having disposed of the Amayapampa
    gold project, the Company will have no control over the
    development of this project. Depending on whether and when
    production commences at Amayapampa and levels of production
    achieved, receipt by the Company of the future payments
    contemplated by the purchase and sale agreement for the
    Amayapampa gold project is subject to uncertainty. Finally a
    number of legal proceedings have been initiated in Bolivia with
    respect to the ownership interests in the mining concessions
    comprising the Amayapampa gold project. Although the Company is
    not a party to these proceedings, if these challenges are
    successful, then the Company may lose its royalty and payment
    stream described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Leverage as a result of the Company&#146;s outstanding
    convertible notes may harm its financial condition and results
    of operations.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On March&#160;7, 2008, the Company announced the closing of a
    private placement in which it issued $30&#160;million in
    aggregate principal amount of the Notes. The Notes were
    convertible into Common Shares of the Company at the option of
    the holder at a conversion price of $6.00 per share, subject to
    adjustment in certain circumstances, including if the
    Company&#146;s Common Shares are trading on the Amex at less
    than $5.00 on March&#160;4, 2009, or the Company issues Common
    Shares, or securities convertible into Common Shares, at a price
    of less than $6.00 during the term of the Notes, subject to a
    minimum conversion price of $4.80. Pursuant to the terms of the
    Notes, on March&#160;4, 2009, the conversion price of the Notes
    was automatically adjusted from $6.00 per share to $4.80 per
    share. As a result of the adjustment, 6.25&#160;million Common
    Shares are issuable upon conversion of the Notes. Prior to the
    adjustment, 5&#160;million Common Shares were issuable upon the
    conversion of the Notes. Upon conversion of the Notes, existing
    shareholders will suffer immediate dilution of their capital
    interest in the Company. Further, the market price of the Common
    Shares could decline as a result of the conversion of the Notes
    and the sale into the market of the Common Shares underlying the
    Notes. These factors could make it more difficult for the
    Company to raise funds through future offerings of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Notes bear interest at a rate of 10% per annum (calculated
    and payable semi-annually in arrears) and will mature on
    March&#160;4, 2011. The Company&#146;s obligations under the
    Notes are guaranteed by its Mexican subsidiary, Minera Paredones
    Amarillos S.A. de C.V., and the guarantee is secured by the
    personal property and real property associated with the
    Paredones Amarillos gold project.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s level and the terms of its indebtedness will
    have several important effects on its future operations,
    including, without limitation that it:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    will require the Company to dedicate a portion of its cash flow
    from operations, if any, to the payment of principal and
    interest on the Company&#146;s outstanding indebtedness, thereby
    reducing the funds available to it for operations and any future
    business opportunities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    could increase the Company&#146;s vulnerability to adverse
    changes in general economic and industry conditions, as well as
    to competitive pressure;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    depending on the levels of its outstanding debt, could limit the
    Company&#146;s ability to obtain additional financing for
    working capital, capital expenditures, general corporate and
    other purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s ability to make payments of principal and
    interest on its indebtedness depends upon the Company&#146;s
    future ability to generate funds, including through operating
    cash flows, which will be subject to the potential development
    of certain of its properties into producing mines, metal prices,
    prevailing economic conditions, industry cycles and financial,
    business and other factors affecting its operations, many of
    which are beyond the Company&#146;s control. If the Company
    cannot raise sufficient funds or its cash flows were to prove
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    inadequate to meet its debt service and other obligations in the
    future, the Company may be required, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to obtain additional financing in the debt or equity markets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to refinance or restructure all or a portion of its
    indebtedness;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to sell selected assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company cannot assure you that such measures will be
    sufficient to enable the Company to service its debt. In
    addition, any such financing, refinancing or sale of assets
    might not be available on economically favorable terms or at
    all. If the Company does not generate sufficient cash flow from
    operation, and additional financings, borrowings or
    refinancings, or proceeds of asset sales are not available to
    it, the Company may not have sufficient cash to enable it to
    meet its obligations, including payments on the Notes. See
    &#147;&#151;Recent market events and conditions&#148; and
    &#147;&#151;General economic conditions&#148;.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company faces intense competition in the mining
    industry.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The mining industry is intensely competitive in all of its
    phases. As a result of this competition, some of which is with
    large established mining companies with substantial capabilities
    and with greater financial and technical resources than the
    Company&#146;s, the Company may be unable to acquire additional
    attractive mining claims or financing on terms it considers
    acceptable. The Company also competes with other mining
    companies in the recruitment and retention of qualified
    managerial and technical employees. If the Company is unable to
    successfully compete for qualified employees, its exploration
    and development programs may be slowed down or suspended. The
    Company competes with other gold companies for capital. If it is
    unable to raise sufficient capital, the Company&#146;s
    exploration and development programs may be jeopardized or it
    may not be able to acquire, develop or operate gold projects.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company may be unable to raise additional capital on
    favorable terms.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The exploration and development of the Company&#146;s
    properties, specifically the construction of mining facilities
    and commencement of mining operations, require substantial
    additional financing. Significant capital investment is required
    to achieve commercial production from each of the Company&#146;s
    properties. The Company will have to raise additional funds from
    external sources in order to maintain and advance its existing
    property positions and to acquire new gold projects. There can
    be no assurance that additional financing will be available at
    all or on acceptable terms and, if additional financing is not
    available, the Company may have to substantially reduce or cease
    its operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Some of the Company&#146;s directors may have conflicts of
    interest as a result of their involvement with other natural
    resource companies.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Some of the Company&#146;s directors are directors or officers
    of other natural resource or mining-related companies. C. Thomas
    Ogryzlo is the President, Chief Executive Officer and a director
    of Polaris Geothermal Inc. and is a director of Baja Mining
    Corp. Michael B. Richings, who is also the Company&#146;s
    Executive Chairman and Chief Executive Officer, is a director of
    Allied Nevada Gold Corp., which holds interests in mining
    properties. John&#160;Clark is a director of Alberta Clipper
    Energy Inc. (a Canadian oil and gas exploration and production
    company) and Chief Financial Officer and a director of Polaris
    Geothermal Inc. W. Durand Eppler is director of Allied Nevada
    Gold Corp. and Augusta Resource Corporation. Tracy Stevenson is
    the non-executive chairman of Quaterra Resources Inc. These
    associations may give rise to conflicts of interest from time to
    time. In the event that any such conflict of interest arises, a
    director who has such a conflict is required to disclose the
    conflict at a meeting of the directors of the company in
    question and to abstain from voting for or against approval of
    any matter in which such director may have a conflict. In
    appropriate cases, the company in question will establish a
    special committee of independent directors to review a matter in
    which several directors, or management, may have a conflict. In
    accordance with the laws of the Yukon Territory, the directors
    of all Yukon Territory
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    companies are required to act honestly, in good faith and in the
    best interests of a company for which they serve as a director.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>There may be challenges to the Company&#146;s title in its
    mineral properties.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There may be challenges to the title to the mineral properties
    in which the Company holds a material interest. If there are
    title defects with respect to any of its properties, the Company
    might be required to compensate other persons or perhaps reduce
    its interest in the affected property. Also, in any such case,
    the investigation and resolution of title issues would divert
    management&#146;s time from ongoing exploration and development
    programs.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company&#146;s property interests in Mexico and
    Indonesia are subject to risks from political and economic
    instability in those countries.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has property interests in Mexico and Indonesia which
    may be affected by risks associated with political or economic
    instability in those countries. The risks include, but are not
    limited to: military repression, extreme fluctuations in
    currency exchange rates, labor instability or militancy, mineral
    title irregularities and high rates of inflation. In addition,
    changes in mining or investment policies or shifts in political
    attitude in Mexico or Indonesia may adversely affect the
    Company&#146;s business. The Company may be affected in varying
    degrees by government regulation with respect to restrictions on
    production, price controls, export controls, income taxes,
    expropriation of property, maintenance of claims, environmental
    legislation, land use, land claims of local people, water use
    and mine safety. The effect of these factors cannot be
    accurately predicted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>The Company&#146;s financial position and results are
    subject to fluctuations in foreign currency values.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Company has mining exploration and evaluation
    operations in North and South America and in Australia and
    Indonesia, the Company is subject to foreign currency
    fluctuations, which may materially affect its financial position
    and results. The Company does not engage in currency hedging to
    offset any risk of currency fluctuations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company measures and reports its financial results in
    U.S.&#160;dollars. The Company has mining projects in Mexico,
    Australia and Indonesia, and it is looking for other projects
    elsewhere in the world. Economic conditions and monetary
    policies in these countries can result in severe currency
    fluctuations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Currently all of the Company&#146;s material transactions in
    Mexico, Australia and Indonesia are denominated in
    U.S.&#160;dollars. However, if the Company were to begin
    commercial operations in any of these or other countries, it is
    possible that material transactions incurred in the local
    currency, such as engagement of local contractors for major
    projects, will be settled at a U.S.&#160;dollar value that is
    different from the U.S.&#160;dollar value of the transaction at
    the time it was incurred. This could have the effect of
    undermining profits from operations in that country.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Future sales of Securities, including Common Shares, in
    the public or private markets could adversely affect the trading
    price of the Common Shares and the Company&#146;s ability to
    raise funds in new share offerings.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Future sales of substantial amounts of Securities (including the
    Common Shares) or securities exchangeable, convertible or
    exercisable for Securities in the public or private markets, or
    the perception that such sales could occur, could adversely
    affect prevailing trading prices of the Company&#146;s Common
    Shares and could impair its ability to raise capital through
    future offerings of equity or equity-related securities. In
    March 2008, the Company announced the closing of a private
    placement in which it issued $30&#160;million in aggregate
    principal amount of the Notes. (See &#147;Leverage as a result
    of the Company&#146;s outstanding convertible notes may harm its
    financial condition and results of operations&#148; above). The
    Notes are convertible into Common Shares at the option of the
    holder at a conversion price of $6.00 per share, subject to
    adjustment in certain circumstances, including if the
    Company&#146;s Common Shares are trading on the Amex at less
    than $5.00 on March&#160;4, 2009, or it issues Common Shares, or
    securities convertible into Common Shares, at a price of less
    than $6.00 during the term of the Notes, subject to a minimum
    conversion price of $4.80. Pursuant to the terms of the Notes,
    on March&#160;4, 2009, the conversion price of the Notes was
    automatically adjusted from $6.00 per share to $4.80 per share.
    As a result of the adjustment, 6.25&#160;million Common Shares
    are issuable upon conversion of the Notes.
</DIV>
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the adjustment, 5&#160;million Common Shares were
    issuable upon the conversion of the Notes. Shareholders would
    suffer dilution upon the conversion of the Notes into the
    Company&#146;s Common Shares. For example, if all
    $30&#160;million of outstanding Notes were converted at the
    minimum conversion price of $4.80, this would result in the
    issuance of an additional 6,250,000 Common Shares, or 15.3% of
    the Company&#146;s issued and outstanding Common Shares as of
    the date of this prospectus assuming conversion of the Notes. No
    prediction can be made as to the effect, if any, that future
    sales of Securities (including Common Shares) or securities
    exchangeable, convertible or exercisable for Securities or the
    availability of Common Shares for future sale, will have on the
    trading price of the Company&#146;s Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Market for the Securities.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There is currently no market through which the Securities, other
    than the Common Shares, may be sold and purchasers may not be
    able to resell the Securities purchased under this Prospectus
    and unless otherwise specified in a Prospectus Supplement, the
    Debt Securities, Warrants, Subscription Receipts and Units will
    not be listed on any securities or stock exchange or any
    automated dealer quotation system. This may affect the pricing
    of the Securities, other than the Common Shares, in the
    secondary market, the transparency and availability of trading
    prices, the liquidity of these securities and the extent of
    issuer regulation. There can be no assurance that an active
    trading market for the Securities, other than the Common Shares,
    will develop or, if developed, that any such market will be
    sustained.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>It may be difficult to enforce judgments or bring actions
    outside the United States against the Company and certain of its
    directors and officers.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is a Canadian corporation and certain of its
    directors and officers are neither citizens nor residents of the
    United States. A substantial part of the assets of several of
    these persons, and of the Company, are located outside the
    United States. As a result, it may be difficult or impossible
    for an investor:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to enforce in courts outside the United States judgments
    obtained in United States courts based upon the civil liability
    provisions of United States federal securities laws against
    these persons and the Company;&#160;or
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    to bring in courts outside the United States an original action
    to enforce liabilities based upon United States federal
    securities laws against these persons and the Company.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Recent market events and conditions.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In 2007 and into 2008, the U.S.&#160;credit markets began to
    experience serious disruption due to a deterioration in
    residential property values, defaults and delinquencies in the
    residential mortgage market (particularly,
    <FONT style="white-space: nowrap">sub-prime</FONT>
    and non-prime mortgages) and a decline in the credit quality of
    mortgage backed securities. These problems led to a slow-down in
    residential housing market transactions, declining housing
    prices, delinquencies in non-mortgage consumer credit and a
    general decline in consumer confidence. These conditions
    continued and worsened in 2008, causing a loss of confidence in
    the broader U.S.&#160;and global credit and financial markets
    and resulting in the collapse of, and government intervention
    in, major banks, financial institutions and insurers and
    creating a climate of greater volatility, less liquidity,
    widening of credit spreads, a lack of price transparency,
    increased credit losses and tighter credit conditions.
    Notwithstanding various actions by the U.S.&#160;and foreign
    governments, concerns about the general condition of the capital
    markets, financial instruments, banks, investment banks,
    insurers and other financial institutions caused the broader
    credit markets to further deteriorate and stock markets to
    decline substantially. In addition, general economic indicators
    have deteriorated, including declining consumer sentiment,
    increased unemployment and declining economic growth and
    uncertainty about corporate earnings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These unprecedented disruptions in the current credit and
    financial markets have had a significant material adverse impact
    on a number of financial institutions and have limited access to
    capital and credit for many companies. These disruptions could,
    among other things, make it more difficult for the Company to
    obtain, or increase its cost of obtaining, capital and financing
    for its operations. The Company&#146;s access to additional
    capital may not be available on terms acceptable to it or at all.
</DIV>
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    <BR>
    14
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>General economic conditions.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The recent unprecedented events in global financial markets have
    had a profound impact on the global economy. Many industries,
    including the gold mining industry, are impacted by these market
    conditions. Some of the key impacts of the current financial
    market turmoil include contraction in credit markets resulting
    in a widening of credit risk, devaluations and high volatility
    in global equity, commodity, foreign exchange and precious metal
    markets, and a lack of market liquidity. A continued or worsened
    slowdown in the financial markets or other economic conditions,
    including but not limited to, consumer spending, employment
    rates, business conditions, inflation, fuel and energy costs,
    consumer debt levels, lack of available credit, the state of the
    financial markets, interest rates, and tax rates may adversely
    affect the Company&#146;s growth and profitability. Specifically:
</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the global credit/liquidity crisis could impact the cost and
    availability of financing and the Company&#146;s overall
    liquidity;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the volatility of gold prices may impact the Company&#146;s
    revenues, profits and cash flow;
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    volatile energy prices, commodity and consumables prices and
    currency exchange rates impact potential production
    costs;&#160;and
</TD>
</TR>





<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the devaluation and volatility of global stock markets impacts
    the valuation of the Company&#146;s equity securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These factors could have a material adverse effect on the
    Company&#146;s financial condition and results of operations.
</DIV>
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    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345125'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DOCUMENTS
    INCORPORATED BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC allows the Company to &#147;incorporate by
    reference&#148; information it files with the SEC. This means
    that the Company can disclose important information to you by
    referring you to those documents. Any information the Company
    references in this manner is considered part of this Prospectus.
    Information the Company files with the SEC after the date of
    this Prospectus will automatically update and, to the extent
    inconsistent, supersede the information contained in this
    Prospectus. Copies of the documents incorporated by reference in
    this Prospectus may be obtained on written or oral request
    without charge from the Secretary of the Company at 1200
    Waterfront Centre, 200 Burrard Street, Vancouver, British
    Columbia, V7X 1T2 (telephone:
    <FONT style="white-space: nowrap">(604)&#160;687-5744).</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We incorporate by reference the documents listed below and
    future filings we make with the SEC pursuant to
    Sections&#160;13(a), 13(c), 14 or 15(d) of the Securities
    Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;)
    (excluding, unless otherwise provided therein or herein,
    information furnished pursuant to Item&#160;2.02 and
    Item&#160;7.01 on any Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K)</FONT>
    after the date of the initial filing of this registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;S-3</FONT>
    to which this Prospectus relates until the termination of the
    offering under this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="8%"></TD>
    <TD width="7%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (a)&#160;&#160;
</TD>
    <TD align="left">
    the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    of the Company, for the year ended December&#160;31, 2008, which
    report contains the audited consolidated financial statements of
    the Company and the notes thereto as at December&#160;31, 2008
    and 2007 and for the three years ended December&#160;31, 2008,
    2007, and 2006, together with the auditors&#146; report thereon,
    as filed on March&#160;13, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (b)&#160;&#160;
</TD>
    <TD align="left">
    amendment number one to the Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K/A,</FONT>
    for the fiscal year ended December&#160;31, 2008, as filed on
    April&#160;16, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (c)&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s Proxy Statement on Schedule&#160;14A, dated
    March&#160;30, 2009, in connection with the Company&#146;s
    May&#160;4, 2009 annual general meeting of shareholders,
    including the information specifically incorporated by reference
    into our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2008, as filed on
    April&#160;2, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (d)&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed January&#160;13, 2009, January&#160;27, 2009,
    March&#160;17, 2009, April&#160;6, 2009 and April&#160;20, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (e)&#160;&#160;
</TD>
    <TD align="left">
    the description of the Company&#146;s common stock contained in
    its registration statement on
    <FONT style="white-space: nowrap">Form&#160;8-A</FONT>
    filed on January&#160;4, 1988, including any amendment or report
    filed for purposes of updating such description;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    (f)&#160;&#160;
</TD>
    <TD align="left">
    all other documents filed by us with the SEC under
    Sections&#160;13(a), 13(c), 14 or 15(d) of the Exchange Act,
    after the date of this Prospectus but before the end of the
    offering of the securities made by this Prospectus.
</TD>
</TR>

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345126'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">UNCERTAINTY
    OF FORWARD-LOOKING STATEMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This Prospectus and the documents that are incorporated by
    reference in this Prospectus contain &#147;forward-looking
    statements&#148; within the meaning of the Private Securities
    Litigation Reform Act of 1995 that are intended to be covered by
    the safe harbor created by such legislation. All statements,
    other than statements of historical facts, included in this
    Prospectus, and documents incorporated herein by reference and
    filed with the SEC that address activities, events or
    developments that the Company expects or anticipates will or may
    occur in the future are forward-looking statements, including,
    but not limited to, such things as those listed below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    estimates of future operating and financial performance;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential funding requirements and sources of capital;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing, performance and results of feasibility studies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing and receipt of required land use, environmental and other
    permits for the Paredones Amarillos gold project and timing for
    starting and completion of drilling and testing programs at the
    Paredones Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans to confirm the validity of the Change of Land Use Permit
    for the Paredones Amarillos gold project and timing and outcome
    for confirmation of the status of this permit and timing and
    outcome for the alternative application for an interim Change of
    Land Use Permit for the drilling program and a new Change of
    Land Use Permit for the Paredones Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    timing and outcome for the application for the Temporary
    Occupation Permit for mining activities at the Paredones
    Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans to purchase remaining surface land or obtain
    <FONT style="white-space: nowrap">rights-of-way</FONT>
    required by the Paredones Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    capital and operating cost estimates for the Paredones Amarillos
    gold project, and anticipated timing of commencement of
    construction at the Paredones Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans for evaluation of the Mt. Todd gold project, including
    estimates of silver, copper and gold resources;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    preliminary assessment results and plans for a pre-feasibility
    study at the Mt. Todd gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    results of drilling programs and prospects for exploration and
    conversion of resources at the Mt. Todd gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential for gold production at the Amayapampa gold project,
    timing and receipt of future payments in connection with the
    disposal of the Amayapampa gold project and status of legal
    proceedings in Bolivia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    ongoing debt service requirements for the Company&#146;s
    outstanding $30&#160;million aggregate principal amount of the
    Notes and potential redemption or conversion of the Notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future gold prices;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future business strategy, competitive strengths, goals and
    expansion and growth of our business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s potential status as a producer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans and estimates concerning potential project development
    including matters such as schedules, estimated completion dates
    and estimated capital and operating costs;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    plans and proposed timetables for exploration programs and
    estimates of exploration expenditures;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    estimates of mineral reserves and mineral resources;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    future share price and valuation for the Company and for
    marketable securities held by the Company.
</TD>
</TR>

</TABLE>
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    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The words &#147;estimate&#148;, &#147;plan&#148;,
    &#147;anticipate&#148;, &#147;expect&#148;, &#147;intend&#148;,
    &#147;believe&#148;, &#147;will&#148;, &#147;may&#148; and
    similar expressions are intended to identify forward-looking
    statements. These statements involve known and unknown risks,
    uncertainties, assumptions and other factors which may cause the
    Company&#146;s actual results, performance or achievements to be
    materially different from any results, performance or
    achievements expressed or implied by such forward-looking
    statements. These factors include risks such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s likely status as a &#147;passive foreign
    investment company&#148; for U.S.&#160;federal tax purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    feasibility study results and preliminary assessment results and
    the estimates on which they are based;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    economic viability of a deposit;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    delays in commencement of construction on the Paredones
    Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    status of the Company&#146;s required governmental permits for
    the Paredones Amarillos gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    increased costs that affect the Company&#146;s financial
    condition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a shortage of equipment and supplies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company&#146;s acquisition, exploration and
    development activities will be commercially successful;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuations in the price of gold;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    inherent hazards of mining exploration, development and
    operating activities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    calculation of reserves and mineralized material and the
    fluctuations thereto based on metal prices, inherent
    vulnerability of the ore and recoverability of metal in the
    mining process;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    environmental regulations to which the Company&#146;s
    exploration and development operations are subject;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s receipt of future payments in connection with
    our disposal of the Amayapampa gold project;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    leverage as a result of the Notes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    intense competition in the mining industry;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company&#146;s potential inability to raise additional
    capital on favorable terms, if at all;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    conflicts of interest of some of our directors as a result of
    their involvement with other natural resource companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    potential challenges to our title of our mineral properties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    political and economic instability in Mexico, Bolivia and
    Indonesia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    fluctuation in foreign currency values;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    trading price of our Common Shares and our ability to raise
    funds in new share offerings due to future sales of our Common
    Shares in the public or private market;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    difficulty in bringing actions or enforcing judgments against us
    and certain of our directors or officers outside of the Untied
    States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    recent market events and conditions;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    general economic conditions.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For a more detailed discussion of such risks and other important
    factors that could cause actual results to differ materially
    from those in such forward-looking statements please see
    &#147;Risk Factors and Uncertainties&#148; in this Prospectus.
    Although we have attempted to identify important factors that
    could cause actual results to differ materially from those
    described in forward-looking statements, there may be other
    factors that cause results not to be as anticipated, estimated
    or intended. There can be no assurance that these statements
    will prove to be accurate as actual results and future events
    could differ materially from those anticipated in the
    statements. Except as required by law, we assume no obligation
    to publicly update any forward-looking statements, whether as a
    result of new information, future events or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>We qualify all the forward-looking statements contained in
    this Prospectus by the foregoing cautionary statements.</B>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345127'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">CAUTIONARY
    NOTE&#160;TO U.S. INVESTORS REGARDING RESERVE AND RESOURCE
    ESTIMATES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The terms &#147;mineral reserve&#148;, &#147;proven mineral
    reserve&#148; and &#147;probable mineral reserve&#148; are
    Canadian mining terms as defined in accordance with Canadian
    National Instrument
    <FONT style="white-space: nowrap">43-101&#151;Standards</FONT>
    of Disclosure for Mineral Projects (&#147;NI
    <FONT style="white-space: nowrap">43-101&#148;)</FONT>
    and the Canadian Institute of Mining, Metallurgy and Petroleum
    (the &#147;CIM&#148;)&#151;<I>CIM Definition Standards on
    Mineral Resources and Mineral Reserves</I>, adopted by the CIM
    Council, as amended. These definitions differ from the
    definitions in the SEC Industry Guide 7 under the Securities
    Act. Under SEC Industry Guide 7 standards, a &#147;final&#148;
    or &#147;bankable&#148; feasibility study is required to report
    reserves, the three-year historical average price is used in any
    reserve or cash flow analysis to designate reserves and the
    primary environmental analysis or report must be filed with the
    appropriate governmental authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, the terms &#147;mineral resource&#148;,
    &#147;measured mineral resource&#148;, &#147;indicated mineral
    resource&#148; and &#147;inferred mineral resource&#148; are
    defined in and required to be disclosed by NI
    <FONT style="white-space: nowrap">43-101;</FONT>
    however, these terms are not defined terms under SEC Industry
    Guide 7 and are normally not permitted to be used in reports and
    registration statements filed with the SEC. Investors are
    cautioned not to assume that any part or all of mineral deposits
    in these categories will ever be converted into reserves.
    &#147;Inferred mineral resources&#148; have a great amount of
    uncertainty as to their existence, and great uncertainty as to
    their economic and legal feasibility. It cannot be assumed that
    all, or any part, of an inferred mineral resource will ever be
    upgraded to a higher category. Under Canadian rules, estimates
    of inferred mineral resources may not form the basis of
    feasibility or pre-feasibility studies, except in rare cases.
    Investors are cautioned not to assume that all or any part of an
    inferred mineral resource exists or is economically or legally
    mineable. Disclosure of &#147;contained ounces&#148; in a
    resource is permitted disclosure under Canadian regulations;
    however, the SEC normally only permits issuers to report
    mineralization that does not constitute &#147;reserves&#148; by
    SEC standards as in place tonnage and grade without reference to
    unit measures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Accordingly, information contained in this Prospectus and the
    documents incorporated by reference herein and any Prospectus
    Supplement contain descriptions of our mineral deposits that may
    not be comparable to similar information made public by
    U.S.&#160;companies subject to the reporting and disclosure
    requirements under the United States federal securities laws and
    the rules and regulations thereunder.
</DIV>

<A name='D81345128'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">PRESENTATION
    OF FINANCIAL INFORMATION AND EXCHANGE RATE DATA</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as otherwise indicated, all financial statements and
    financial data contained in, or incorporated by reference into,
    this Prospectus have been prepared in accordance with Canadian
    generally accepted accounting principles (&#147;GAAP&#148;),
    which differ in certain significant respects from
    U.S.&#160;GAAP. For a description of the material differences
    between Canadian GAAP and U.S.&#160;GAAP as they relate to the
    Company&#146;s financial statements, see note&#160;19 to the
    Company&#146;s audited consolidated financial statements for the
    years ended December&#160;31, 2008 and 2007, contained in the
    Company&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    which is incorporated by reference into this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth, for each period indicated, the
    exchange rates of the Canadian dollar to the U.S.&#160;dollar
    for the end of each period indicated and the high, low and
    average (based on the exchange rate on the last day of each
    month during such period) exchange rates for each of such
    periods (such rates, which are expressed in Canadian dollars are
    based on the noon buying rates for U.S.&#160;dollars reported by
    the Bank of Canada).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="24%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="9%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="7%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Three Months<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Ended<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>March&#160;31,<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="11" align="center" valign="bottom">
    <B>Year Ended December&#160;31,</B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2009</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2008</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2007</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-size: 10pt">2006</FONT></B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    High
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.2707
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.2372
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.1792
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    Cdn$
</TD>
<TD nowrap align="right" valign="bottom">
    1.1671
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Low
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2364
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9798
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9499
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1028
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Average
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2558
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0716
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.0666
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1308
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    End of Period
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2602
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.2246
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    0.9881
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1.1653
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;27, 2009, the noon buying rate reported by the
    Bank of Canada was $1.00 = Cdn$1.2107.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345129'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RECENT
    DEVELOPMENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Filing of
    Canadian Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On April&#160;17, 2009, the Company filed a base shelf short
    form prospectus with the securities regulatory authorities in
    the provinces of British Columbia, Alberta, Saskatchewan,
    Manitoba, Ontario, Nova Scotia, New Brunswick, Prince Edward
    Island and Newfoundland and Labrador and in the Yukon Territory,
    the Northwest Territories and Nunavut, which upon final receipt,
    will permit the Company to offer and sell the Securities for
    gross proceeds of $200,000,000. On April&#160;27, 2009, the
    Company filed the final base shelf short form prospectus in
    Canada. The Securities that may be sold in the provinces and
    territories of Canada named above, together with the Securities
    to be sold in the United States pursuant to this Prospectus, is
    not expected to exceed $200,000,000.
</DIV>

<A name='D81345130'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise indicated in the applicable Prospectus
    Supplement, the net proceeds from the sale of Securities will be
    used by the Company for development of existing or acquired
    mineral properties, and may also be used for acquisitions,
    working capital requirements, to repay indebtedness outstanding
    from time to time or for other general corporate purposes. The
    Company may, from time to time, issue Common Shares or other
    securities otherwise than through the offering of Securities
    pursuant to this Prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<A name='D81345131'>
<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">RATIO OF
    EARNINGS TO FIXED CHARGES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s ratio of earnings to fixed charges is as
    follows for the period indicated: (the deficiency figures and
    coverage ratio have been calculated based on amounts reported
    under Canadian GAAP)
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 01 -->
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=01 type=lead -->
    <TD width="22%" align="right">&nbsp;</TD>	<!-- colindex=01 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=01 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="15%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>FISCAL YEAR ENDED DECEMBER&#160;31</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A(1
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    N/A
</TD>
<TD nowrap align="left" valign="bottom">
    (1)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    (2.77
</TD>
<TD nowrap align="left" valign="bottom">
    )
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="line-height: 12pt">
<TD colspan="19">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="19" align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="19" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent"><!-- TABLE 06 -->

<TR>
    <TD width="9%"></TD>
    <TD width="1%"></TD>
    <TD width="90%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">The Company did not have any fixed
    charges during the fiscal years ended December&#160;31, 2004
    through 2007.
    </FONT></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s interest expense requirements amounted to
    approximately $2.48&#160;million for the year ended
    December&#160;31, 2008. The Company&#146;s net loss before
    interest expense and income tax for the year ended
    December&#160;31, 2008 was approximately $6.88&#160;million,
    resulting in an interest coverage deficiency of approximately
    $9.36&#160;million and a negative ratio of earnings to fixed
    charges of (2.77). Although the Company has a negative ratio of
    earnings to fixed charges for the year ended December&#160;31,
    2008, the Company had approximately $13.2&#160;million in cash
    and cash equivalents as at December&#160;31, 2008. As of the
    date of this Prospectus, the Company has approximately
    $20.0&#160;million in cash and cash equivalents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has computed the ratio of fixed charges by dividing
    earnings by fixed charges. For this purpose,
    &#147;earnings&#148; consist of income/(loss) from operations
    before income tax, minority interest adjustments and changes in
    accounting principles and fixed charges, and &#147;fixed
    charges&#148; consists of the interest portion of rental expense
    and interest incurred. Please refer to Exhibit&#160;12 filed
    with the registration statement of which this Prospectus forms a
    part for additional information regarding the ratio of earnings
    to cover fixed charges.
</DIV>

<A name='D81345132'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF COMMON SHARES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company is authorized to issue an unlimited number of Common
    Shares, without par value, of which 34,475,829 are issued and
    outstanding as at the date of this Prospectus. There are options
    outstanding to purchase up to 2,205,779 Common Shares at prices
    ranging from $1.69 to $7.45. There are 200,000 broker warrants
    outstanding to purchase up to 200,000 Common Shares at a price
    of $6.00 per Common Share. Holders of Common Shares are entitled
    to one vote per Common Share at all meetings of shareholders, to
    receive dividends
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    as and when declared by the board of directors of the Company
    and to receive a <I>pro rata </I>share of the assets of the
    Company available for distribution to the shareholders in the
    event of the liquidation, dissolution or
    <FONT style="white-space: nowrap">winding-up</FONT>
    of the Company. There are no pre-emptive, conversion or
    redemption rights attached to the Common Shares.
</DIV>

<A name='D81345133'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF DEBT SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In this description of Debt Securities section only,
    &#147;Vista&#148; or the &#147;Company&#148; refer to Vista Gold
    Corp. but not to its subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Debt Securities in one or more series
    under an indenture (the &#147;Indenture&#148;), to be entered
    into among the Company, Computershare Trust&#160;Company of
    Canada, as Canadian trustee, and Computershare
    Trust&#160;Company N.A., as U.S.&#160;trustee. The Indenture
    will be subject to and governed by the United States
    Trust&#160;Indenture Act of 1939, as amended (the
    &#147;Trust&#160;Indenture Act&#148;) and the <I>Business
    Corporation Act </I>(Yukon Territory). A copy of the form of the
    Indenture will be filed with the SEC as an exhibit to the
    registration statement of which this Prospectus forms a part and
    will be filed on SEDAR. The following description sets forth
    certain general terms and provisions of the Debt Securities and
    is not intended to be complete. For a more complete description,
    prospective investors should refer to the Indenture and the
    terms of the Debt Securities. If Debt Securities are issued, the
    Company will describe in the applicable Prospectus Supplement
    the particular terms and provisions of any series of the Debt
    Securities and a description of how the general terms and
    provisions described below may apply to that series of the Debt
    Securities. Prospective investors should rely on information in
    the applicable Prospectus Supplement and not on the following
    information to the extent that the information in such
    Prospectus Supplement is different from the following
    information. The Company will file as exhibits to the
    registration statement of which this Prospectus is a part, or
    will incorporate by reference from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC, any supplemental indenture
    describing the terms and conditions of Debt Securities the
    Company is offering before the issuance of such Debt Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue debt securities and incur additional
    indebtedness other than through the offering of Debt Securities
    pursuant to this Prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Indenture will not limit the aggregate principal amount of
    Debt Securities that the Company may issue under the Indenture
    and will not limit the amount of other indebtedness that the
    Company may incur. The Indenture will provide that the Company
    may issue Debt Securities from time to time in one or more
    series and may be denominated and payable in U.S.&#160;dollars,
    Canadian dollars or any foreign currency. Unless otherwise
    indicated in the applicable Prospectus Supplement, the Debt
    Securities will be unsecured obligations of the Company. The
    Indenture will also permit the Company to increase the principal
    amount of any series of the Debt Securities previously issued
    and to issue that increased principal amount.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The applicable Prospectus Supplement for any series of Debt
    Securities that the Company offers will describe the specific
    terms of the Debt Securities and may include, but is not limited
    to, any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the title of the Debt Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the aggregate principal amount of the Debt Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the percentage of principal amount at which the Debt Securities
    will be issued;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether payment on the Debt Securities will be senior or
    subordinated to the Company&#146;s other liabilities or
    obligations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether payment of the Debt Securities will be guaranteed by any
    other person;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date or dates, or the methods by which such dates will be
    determined or extended, on which the Company may issue the Debt
    Securities and the date or dates, or the methods by which such
    dates will be determined or extended, on which the Company will
    pay the principal and any premium on the Debt
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    Securities and the portion (if less than the principal amount)
    of Debt Securities to be payable upon a declaration of
    acceleration of maturity;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Debt Securities will bear interest, the interest
    rate (whether fixed or variable) or the method of determining
    the interest rate, the date from which interest will accrue, the
    dates on which the Company will pay interest and the record
    dates for interest payments, or the methods by which such dates
    will be determined or extended;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the place or places the Company will pay principal, premium, if
    any, and interest and the place or places where Debt Securities
    can be presented for registration of transfer or exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether and under what circumstances the Company will be
    required to pay any additional amounts for withholding or
    deduction for Canadian taxes with respect to the Debt
    Securities, and whether and on what terms the Company will have
    the option to redeem the Debt Securities rather than pay the
    additional amounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will be obligated to redeem or repurchase
    the Debt Securities pursuant to any sinking or purchase fund or
    other provisions, or at the option of a holder and the terms and
    conditions of such redemption;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company may redeem the Debt Securities prior to
    maturity and the terms and conditions of any such redemption;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the denominations in which the Company will issue any registered
    Debt Securities, if other than denominations of US$1,000 and any
    multiple of US$l,000 and, if other than denominations of
    US$5,000, the denominations in which any unregistered debt
    security shall be issuable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will make payments on the Debt Securities in
    a currency or currency unit other than U.S.&#160;dollars or by
    delivery of the Company&#146;s common shares or other property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether payments on the Debt Securities will be payable with
    reference to any index, formula or other method;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Debt Securities as global
    securities and, if so, the identity of the depositary for the
    global securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Debt Securities as
    unregistered securities, registered securities or both;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any changes or additions to events of default or covenants
    whether or not such events of default or covenants are
    consistent with the events of default or covenants in the
    Indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the applicability of, and any changes or additions to, the
    provisions for defeasance described under &#147;Defeasance&#148;
    below;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the holders of any series of Debt Securities have
    special rights if specified events occur;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the terms, if any, for any conversion or exchange of the Debt
    Securities for any other securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    provisions as to modification, amendment or variation of any
    rights or terms attaching to the Debt Securities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any other terms, conditions, rights and preferences (or
    limitations on such rights and preferences) including covenants
    and events of default which apply solely to a particular series
    of the Debt Securities being offered which do not apply
    generally to other Debt Securities, or any covenants or events
    of default generally applicable to the Debt Securities which do
    not apply to a particular series of the Debt Securities.
</TD>
</TR>

</TABLE>
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    <BR>
    23
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless stated otherwise in the applicable Prospectus Supplement,
    no holder of Debt Securities will have the right to require the
    Company to repurchase the Debt Securities and there will be no
    increase in the interest rate if the Company becomes involved in
    a highly leveraged transaction or the Company has a change of
    control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Debt Securities bearing no interest or
    interest at a rate below the prevailing market rate at the time
    of issuance, and offer and sell the Debt Securities at a
    discount below their stated principal amount. The Company may
    also sell any of the Debt Securities for a foreign currency or
    currency unit, and payments on the Debt Securities may be
    payable in a foreign currency or currency unit. In any of these
    cases, the Company will describe certain Canadian federal and
    U.S.&#160;federal income tax consequences and other special
    considerations in the applicable Prospectus Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Debt Securities with terms different from
    those of Debt Securities previously issued and, without the
    consent of the holders thereof, the Company may reopen a
    previous issue of a series of Debt Securities and issue
    additional Debt Securities of such series (unless the reopening
    was restricted when such series was created).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Ranking
    and Other Indebtedness</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise indicated in an applicable Prospectus
    Supplement, the Debt Securities will be unsecured obligations
    and will rank equally with all of the Company&#146;s other
    unsecured and other subordinated debt from time to time
    outstanding and equally with other Debt Securities issued under
    the Indenture. The Indenture will provide that the Debt
    Securities will be subordinated to and junior in right of
    payment to all present and future Senior Indebtedness.
    &#147;Senior Indebtedness&#148; will be defined in the Indenture
    as: (a)&#160;all indebtedness of the Company in respect of
    borrowed money, other than: (i)&#160;indebtedness evidenced by
    the Debt Securities; and (ii)&#160;indebtedness which, by the
    terms of the instrument creating or evidencing it, is expressed
    to rank in right of payment equally with or subordinate to the
    indebtedness evidenced by the Debt Securities; (b)&#160;all
    obligations of the Company for the reimbursement of amounts paid
    pursuant to any letter of credit, banker&#146;s acceptance or
    similar credit transaction; and (c)&#160;all obligations of the
    type referred to in paragraphs (a)&#160;through (b)&#160;above
    of other persons for the payment of which the Company is
    responsible or liable as obligor, guarantor or otherwise. For
    greater certainty, &#147;Senior Indebtedness&#148; will include
    all indebtedness of the Company for borrowed money which is
    outstanding as at the date of the Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company&#146;s Board of Directors may establish the extent
    and manner, if any, to which payment on or in respect of a
    series of Debt Securities will be senior or will be subordinated
    to the prior payment of the Company&#146;s other liabilities and
    obligations, other than Senior Indebtedness, and whether the
    payment of principal, premium, if any, and interest, if any,
    will be guaranteed by any other person and the nature and
    priority of any security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities in Global Form</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">The
    Depositary and Book-Entry</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise specified in the applicable Prospectus
    Supplement, a series of the Debt Securities may be issued in
    whole or in part in global form as a &#147;global security&#148;
    and will be registered in the name of or issued in bearer form
    and be deposited with a depositary, or its nominee, each of
    which will be identified in the applicable Prospectus Supplement
    relating to that series. Unless and until exchanged, in whole or
    in part, for the Debt Securities in definitive registered form,
    a global security may not be transferred except as a whole by
    the depositary for such global security to a nominee of the
    depositary, by a nominee of the depositary to the depositary or
    another nominee of the depositary or by the depositary or any
    such nominee to a successor of the depositary or a nominee of
    the successor.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The specific terms of the depositary arrangement with respect to
    any portion of a particular series of the Debt Securities to be
    represented by a global security will be described in the
    applicable Prospectus Supplement relating to such series. The
    Company anticipates that the provisions described in this
    section will apply to all depositary arrangements.
</DIV>
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    <BR>
    24
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Upon the issuance of a global security, the depositary therefor
    or its nominee will credit, on its book entry and registration
    system, the respective principal amounts of the Debt Securities
    represented by the global security to the accounts of such
    persons, designated as &#147;participants&#148;, having accounts
    with such depositary or its nominee. Such accounts shall be
    designated by the underwriters, dealers or agents participating
    in the distribution of the Debt Securities or by the Company if
    such Debt Securities are offered and sold directly by the
    Company. Ownership of beneficial interests in a global security
    will be limited to participants or persons that may hold
    beneficial interests through participants. Ownership of
    beneficial interests in a global security will be shown on, and
    the transfer of that ownership will be effected only through,
    records maintained by the depositary therefor or its nominee
    (with respect to interests of participants) or by participants
    or persons that hold through participants (with respect to
    interests of persons other than participants). The laws of some
    states in the United States may require that certain purchasers
    of securities take physical delivery of such securities in
    definitive form.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    So long as the depositary for a global security or its nominee
    is the registered owner of the global security or holder of a
    global security in bearer form, such depositary or such nominee,
    as the case may be, will be considered the sole owner or holder
    of the Debt Securities represented by the global security for
    all purposes under the Indenture. Except as provided below,
    owners of beneficial interests in a global security will not be
    entitled to have a series of the Debt Securities represented by
    the global security registered in their names, will not receive
    or be entitled to receive physical delivery of such series of
    the Debt Securities in definitive form and will not be
    considered the owners or holders thereof under the Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any payments of principal, premium, if any, and interest, if
    any, on global securities registered in the name of a depositary
    or securities registrar will be made to the depositary or its
    nominee, as the case may be, as the registered owner of the
    global security representing such Debt Securities. None of the
    Company, any trustee or any paying agent for the Debt Securities
    represented by the global securities will have any
    responsibility or liability for any aspect of the records
    relating to or payments made on account of beneficial ownership
    interests of the global security or for maintaining, supervising
    or reviewing any records relating to such beneficial ownership
    interests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company expects that the depositary for a global security or
    its nominee, upon receipt of any payment of principal, premium,
    if any, or interest, if any, will credit participants&#146;
    accounts with payments in amounts proportionate to their
    respective beneficial interests in the principal amount of the
    global security as shown on the records of such depositary or
    its nominee. The Company also expects that payments by
    participants to owners of beneficial interests in a global
    security held through such participants will be governed by
    standing instructions and customary practices, as is now the
    case with securities held for the accounts of customers
    registered in &#147;street name&#148;, and will be the
    responsibility of such participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Discontinuance
    of Depositary&#146;s Services</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If a depositary for a global security representing a particular
    series of the Debt Securities is at any time unwilling or unable
    to continue as depositary or, if at any time the depositary for
    such series shall no longer be registered or in good standing
    under the Exchange Act, and a successor depositary is not
    appointed by us within 90&#160;days, the Company will issue such
    series of the Debt Securities in definitive form in exchange for
    a global security representing such series of the Debt
    Securities. If an event of default under the Indenture has
    occurred and is continuing, Debt Securities in definitive form
    will be printed and delivered upon written request by the holder
    to the appropriate trustee. In addition, the Company may at any
    time and in the Company&#146;s sole discretion determine not to
    have a series of the Debt Securities represented by a global
    security and, in such event, will issue a series of the Debt
    Securities in definitive form in exchange for all of the global
    securities representing that series of Debt Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Securities in Definitive Form</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A series of the Debt Securities may be issued in definitive
    form, solely as registered securities, solely as unregistered
    securities or as both registered securities and unregistered
    securities. Registered securities will be issuable in
    denominations of US$1,000 and integral multiples of US$1,000 and
    unregistered securities will be
</DIV>
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    <BR>
    25
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    issuable in denominations of US$5,000 and integral multiples of
    US$5,000 or, in each case, in such other denominations as may be
    set out in the terms of the Debt Securities of any particular
    series. Unless otherwise indicated in the applicable Prospectus
    Supplement, unregistered securities will have interest coupons
    attached.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise indicated in the applicable Prospectus
    Supplement, payment of principal, premium, if any, and interest,
    if any, on the Debt Securities (other than global securities)
    will be made at the office or agency designated by the Company,
    or at the Company&#146;s option the Company can pay principal,
    interest, if any, and premium, if any, by cheque mailed or
    delivered to the address of the person entitled at the address
    appearing in the security register of the trustee or electronic
    funds wire or other transmission to an account of persons who
    meet certain thresholds set out in the Indenture who are
    entitled to receive payments by wire transfer. Unless otherwise
    indicated in the applicable Prospectus Supplement, payment of
    interest, if any, will be made to the persons in whose name the
    Debt Securities are registered at the close of business on the
    day or days specified by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    At the option of the holder of Debt Securities, registered
    securities of any series will be exchangeable for other
    registered securities of the same series, of any authorized
    denomination and of a like aggregate principal amount. If, but
    only if, provided in an applicable Prospectus Supplement,
    unregistered securities (with all unmatured coupons, except as
    provided below, and all matured coupons in default) of any
    series may be exchanged for registered securities of the same
    series, of any authorized denominations and of a like aggregate
    principal amount and tenor. In such event, unregistered
    securities surrendered in a permitted exchange for registered
    securities between a regular record date or a special record
    date and the relevant date for payment of interest shall be
    surrendered without the coupon relating to such date for payment
    of interest, and interest will not be payable on such date for
    payment of interest in respect of the registered security issued
    in exchange for such unregistered security, but will be payable
    only to the holder of such coupon when due in accordance with
    the terms of the Indenture. Unless otherwise specified in an
    applicable Prospectus Supplement, unregistered securities will
    not be issued in exchange for registered securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The applicable Prospectus Supplement may indicate the places to
    register a transfer of the Debt Securities in definitive form.
    Service charges may be payable by the holder for any
    registration of transfer or exchange of the Debt Securities in
    definitive form, and the Company may, in certain instances,
    require a sum sufficient to cover any tax or other governmental
    charges payable in connection with these transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company shall not be required to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    issue, register the transfer of or exchange any series of the
    Debt Securities in definitive form during a period beginning at
    the opening of 15 business days before any selection of
    securities of that series of the Debt Securities to be redeemed
    and ending on the relevant date of notice of such redemption, as
    provided in the Indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    register the transfer of or exchange any registered security in
    definitive form, or portion thereof, called for redemption,
    except the unredeemed portion of any registered security being
    redeemed in part;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    exchange any unregistered security called for redemption except
    to the extent that such unregistered security may be exchanged
    for a registered security of that series and like tenor;
    provided that such registered security will be simultaneously
    surrendered for redemption with written instructions for payment
    consistent with the provisions of the Indenture;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    issue, register the transfer of or exchange any of the Debt
    Securities in definitive form which have been surrendered for
    repayment at the option of the holder, except the portion, if
    any, of such Debt Securities not to be so repaid.
</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Merger,
    Amalgamation or Consolidation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Indenture will provide that the Company may not amalgamate
    or consolidate with, merge into or enter into any statutory
    arrangement with any other person or, directly or indirectly,
    convey, transfer or lease all or substantially all of the
    Company&#146;s properties and assets to another person, unless
    among other items:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the resulting, surviving or transferee person is organized and
    existing under the laws of Canada, or any province or territory
    thereof, the United States, any state thereof or the District of
    Columbia, or, if the amalgamation, merger, consolidation,
    statutory arrangement or other transaction would not impair the
    rights of holders, any other country;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the resulting, surviving or transferee person, if other than the
    Company, assumes all of the Company&#146;s obligations under the
    Debt Securities and the Indenture;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    immediately after the transaction, no default or event of
    default under the Indenture shall have happened and be
    continuing.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When such a successor person assumes the Company&#146;s
    obligations in such circumstances, subject to certain
    exceptions, the Company shall be discharged from all obligations
    and covenants under the Debt Securities and the Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Additional
    Amounts</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise specified in the applicable Prospectus
    Supplement, all payments made by or on behalf of the Company
    under or with respect to the Debt Securities of any series will
    be made free and clear of and without withholding or deduction
    for or on account of any present or future tax, duty, levy,
    impost, assessment or other government charge (including
    penalties, interest and other liabilities related thereto)
    imposed or levied by or on behalf of the Government of Canada or
    of any province or territory thereof or by any authority or
    agency therein or thereof having power to tax (&#147;Canadian
    Taxes&#148;), unless the Company is required to withhold or
    deduct Canadian Taxes by law or by the interpretation or
    administration thereof by the relevant government authority or
    agency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is so required to withhold or deduct any amount
    for or on account of Canadian Taxes from any payment made under
    or with respect to the Debt Securities, the Company will pay,
    unless otherwise specified, as additional interest such
    additional amounts, (the &#147;Additional Amounts&#148;), as may
    be necessary so that the net amount received by a holder of the
    Debt Securities after such withholding or deduction will not be
    less than the amount such holder of the Debt Securities would
    have received if such Canadian Taxes had not been withheld or
    deducted (a similar payment will also be made to holders of the
    Debt Securities, other than excluded holders (as defined
    herein), that are exempt from withholding but required to pay
    tax under Part&#160;XIII of the <I>Income Tax Act </I>(Canada)
    (the &#147;Tax Act&#148;), directly on amounts otherwise subject
    to withholding); provided, however, that no additional amounts
    will be payable with respect to a payment made to a holder (an
    &#147;excluded holder&#148;) if the Holder of the Debt
    Securities or the beneficial owner of some or all of the payment
    to the Holder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

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    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
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    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    does not deal at arm&#146;s length with the Company (for
    purposes of the Tax Act) at the time of the making of such
    payment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is subject to such Canadian Taxes by reason of the Debt
    Securities holder&#146;s failure to comply with any
    certification, identification, information, documentation or
    other reporting requirement if compliance is required by law,
    regulation, administrative practice or an applicable treaty as a
    precondition to exemption from, or a reduction in the rate of
    deduction or withholding of, such Canadian Taxes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is subject to such Canadian Taxes by reason of the Debt
    Securities holder being a resident, domicile or national of, or
    engaged in business or maintaining a permanent establishment or
    other physical presence in or otherwise having some connection
    with Canada or any province or territory thereof otherwise than
    by the mere holding of the Debt Securities or the receipt of
    payments thereunder;&#160;or
</TD>
</TR>

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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    is subject to such Canadian Taxes because it is not entitled to
    the benefit of an otherwise applicable tax treaty by reason of
    the legal nature of such holder of the Debt Securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will make such withholding or deduction and remit
    the full amount deducted or withheld to the relevant authority
    as and when required in accordance with applicable law. The
    Company will pay all taxes, interest and other liabilities which
    arise by virtue of any failure of the Company to withhold,
    deduct and remit to the relevant authority on a timely basis the
    full amounts required in accordance with applicable law. The
    Company will furnish to the holder of the Debt Securities,
    within 60&#160;days after the date the payment of any Canadian
    Taxes is due pursuant to applicable law, certified copies of tax
    receipts evidencing such payment by the Company.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The foregoing obligations shall survive any termination,
    defeasance or discharge of the Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If and to the extent specified in the applicable Prospectus
    Supplement, the Debt Securities of a series will be subject to
    redemption at any time, in whole but not in part, at a
    redemption price equal to the principal amount thereof together
    with accrued and unpaid interest to the date fixed for
    redemption, upon the giving of a notice, if (1)&#160;the Company
    determines that (a)&#160;as a result of any change in or
    amendment to the laws (or any regulations or rulings promulgated
    thereunder) of Canada or of any political subdivision or taxing
    authority thereof or therein affecting taxation, or any change
    in position regarding application or interpretation of such
    laws, regulations or rulings (including a holding by a court of
    competent jurisdiction), which change or amendment is announced
    or becomes effective on or after a date specified in the
    applicable Prospectus Supplement if any date is so specified,
    the Company has or will become obligated to pay, on the next
    succeeding date on which interest is due, Additional Amounts
    with respect to any Debt Security of such series or (b)&#160;on
    or after a date specified in the applicable Prospectus
    Supplement, any action has been taken by any taxing authority
    of, or any decision has been rendered by a court of competent
    jurisdiction in, Canada or any political subdivision or taxing
    authority thereof or therein, including any of those actions
    specified in (a)&#160;above, whether or not such action was
    taken or decision was rendered with respect to the Company, or
    any change, amendment, application or interpretation shall be
    proposed, which, in any such case, in the opinion of counsel to
    the Company, will result in the Company&#146;s becoming
    obligated to pay, on the next succeeding date on which interest
    is due, Additional Amounts with respect to any Debt Security of
    such series and (2)&#160;in any such case, the Company, in its
    business judgment, determines that such obligation cannot be
    avoided by the use of reasonable measures available to it;
    provided however, that (i)&#160;no such notice of redemption may
    be given earlier than 90&#160;days prior to the earliest date on
    which the Company would be obligated to pay such Additional
    Amounts were a payment in respect of the Debt Securities then
    due, and (ii)&#160;at the time such notice of redemption is
    given, such obligation to pay such Additional Amounts remains in
    effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event that the Company elects to redeem the Debt
    Securities of such series pursuant to the provisions set forth
    in the preceding paragraph, the Company shall deliver to the
    trustees a certificate, signed by an authorized officer, stating
    that the Company is entitled to redeem the Debt Securities of
    such series pursuant to their terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Provision
    of Financial Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will file with the trustees, within 20&#160;days
    after it files or furnishes them with the SEC, copies of the
    Company&#146;s annual reports and of the information, documents
    and other reports (or copies of such portions of any of the
    foregoing as the SEC may by rules and regulations prescribe)
    which the Company is required to file or furnish with the SEC
    pursuant to Section&#160;13 or 15(d) of the Exchange Act.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Notwithstanding that the Company may not remain subject to the
    reporting requirements of Section&#160;13 or 15(d) of the
    Exchange Act or otherwise report on an annual and quarterly
    basis on forms provided for such annual and
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    quarterly reporting pursuant to rules and regulations
    promulgated by the SEC, the Company will continue to provide the
    trustees:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    within 20&#160;days after the time periods required for the
    filing or furnishing of such forms by the SEC, annual reports on
    <FONT style="white-space: nowrap">Form&#160;40-F</FONT>
    or 20-F or any successor form;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    within 20&#160;days after the time periods required for the
    filing of such forms by the SEC, reports on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    (or any successor form), which, regardless of applicable
    requirements shall, at a minimum, contain such information
    required to be provided in quarterly reports under the laws of
    Canada or any province thereof to security holders of a
    corporation with securities listed on the Toronto Stock
    Exchange, whether or not the Company has any of the Debt
    Securities listed on such exchange. Each of such reports, to the
    extent permitted by the rules and regulations of the SEC, will
    be prepared in accordance with Canadian disclosure requirements
    and generally accepted accounting principles provided, however,
    that the Company shall not be obligated to file or furnish such
    reports with the SEC if the SEC does not permit such filings.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Events of
    Default</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise specified in the applicable Prospectus
    Supplement relating to a particular series of Debt Securities,
    the following is a summary of events which will, with respect to
    any series of the Debt Securities, constitute an event of
    default under the Indenture with respect to the Debt Securities
    of that series:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company fails to pay principal of, or any premium on, or any
    Additional Amounts in respect of, any Debt Security of that
    series when it is due and payable;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company fails to pay interest (including Additional Amounts)
    payable on any Debt Security of that series when it becomes due
    and payable, and such default continues for 30&#160;days;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company fails to make any required sinking fund or analogous
    payment for that series of Debt Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company fails to observe or perform any of its covenants or
    agreements in the Indenture that affect or are applicable to the
    Debt Securities of that series for 90&#160;days after written
    notice to the Company by the trustees or to the Company and the
    trustees by holders of at least 25% in aggregate principal
    amount of the outstanding Debt Securities of that series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a default (as defined in any indenture or instrument under which
    the Company or one of the Company&#146;s subsidiaries has at the
    date of the Indenture or will thereafter have outstanding any
    indebtedness) has occurred and is continuing, or the Company or
    any of its subsidiaries has failed to pay principal amounts with
    respect to such indebtedness at maturity and such event of
    default or failure to pay has resulted in such indebtedness
    under such indenture or instrument being declared due, payable
    or otherwise being accelerated, in either event so that an
    amount in excess of the greater of $15,000,000 and 2% of the
    Company&#146;s shareholders&#146; equity will be or become due,
    payable and accelerated upon such declaration or prior to the
    date on which the same would otherwise have become due, payable
    and accelerated (the &#147;Accelerated Indebtedness&#148;), and
    such acceleration will not be rescinded or annulled, or such
    event of default or failure to pay under such indenture or
    instrument will not be remedied or cured, whether by payment or
    otherwise, or waived by the holders of such Accelerated
    Indebtedness, then (i)&#160;if the Accelerated Indebtedness will
    be as a result of an event of default which is not related to
    the failure to pay principal or interest on the terms, at the
    times, and on the conditions set out in any such indenture or
    instrument, it will not be considered an event of default for
    the purposes of the indenture governing the Debt Securities
    until 30&#160;days after such indebtedness has been accelerated,
    or (ii)&#160;if the Accelerated Indebtedness will occur as a
    result of such failure to pay principal or interest or as a
    result of an event of default which is related to the failure to
    pay principal or interest on the terms, at the times, and on the
    conditions set out in any such indenture or instrument, then
    (A)&#160;if such Accelerated Indebtedness is, by its terms,
    non-recourse to the Company or its subsidiaries, it will be
    considered an event of default for
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    purposes of the Indenture governing the Debt Securities; or
    (B)&#160;if such Accelerated Indebtedness is recourse to the
    Company or its subsidiaries, any requirement in connection with
    such failure to pay or event of default for the giving of notice
    or the lapse of time or the happening of any further condition,
    event or act under such indenture or instrument in connection
    with such failure to pay or event of default will be applicable
    together with an additional seven days before being considered
    an event of default for the purposes of the Indenture;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    certain events involving the Company&#146;s bankruptcy,
    insolvency or reorganization;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any other event of default provided for in that series of Debt
    Securities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A default under one series of Debt Securities will not
    necessarily be a default under another series. A trustee may
    withhold notice to the holders of the Debt Securities of any
    default, except in the payment of principal or premium, if any,
    or interest, if any, if in good faith it considers it in the
    interests of the holders to do so and so advises the Company in
    writing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If an event of default (except for events involving the
    Company&#146;s bankruptcy, insolvency or reorganization) for any
    series of Debt Securities occurs and continues, a trustee or the
    holders of at least 25% in aggregate principal amount of the
    Debt Securities of that series may require the Company to repay
    immediately:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the entire principal and interest of the Debt Securities of the
    series;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if the Debt Securities are discounted securities, that portion
    of the principal as is described in the applicable Prospectus
    Supplement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If an event of default relates to events involving the
    Company&#146;s bankruptcy, insolvency or reorganization, the
    principal of all Debt Securities will become immediately due and
    payable without any action by the trustee or any holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to certain conditions, the holders of a majority of the
    aggregate principal amount of the Debt Securities of the
    affected series can rescind and annul an accelerated payment
    requirement. If Debt Securities are discounted securities, the
    applicable Prospectus Supplement will contain provisions
    relating to the acceleration of maturity of a portion of the
    principal amount of the discounted securities upon the
    occurrence or continuance of an event of default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Other than its duties in case of a default, a trustee is not
    obligated to exercise any of the rights or powers that it will
    have under the Indenture at the request or direction of any
    holders, unless the holders offer the trustee reasonable
    security or indemnity. If they provide this reasonable security
    or indemnity, the holders of a majority in aggregate principal
    amount of any series of Debt Securities may, subject to certain
    limitations, direct the time, method and place of conducting any
    proceeding for any remedy available to a trustee, or exercising
    any trust or power conferred upon a trustee, for any series of
    Debt Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will be required to furnish to the trustees a
    statement annually as to its compliance with all conditions and
    covenants under the Indenture and, if the Company is not in
    compliance, the Company must specify any defaults. The Company
    will also be required to notify the trustees as soon as
    practicable upon becoming aware of any event of default.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    No holder of a Debt Security of any series will have any right
    to institute any proceeding with respect to the Indenture, or
    for the appointment of a receiver or a trustee, or for any other
    remedy, unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the holder has previously given to the trustees written notice
    of a continuing event of default with respect to the Debt
    Securities of the affected series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the holders of at least 25% in principal amount of the
    outstanding Debt Securities of the series affected by an event
    of default have made a written request, and the holders have
    offered reasonable indemnity, to the trustees to institute a
    proceeding as trustees;&#160;and
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the trustees have failed to institute a proceeding, and have not
    received from the holders of a majority in aggregate principal
    amount of the outstanding Debt Securities of the series affected
    by an event of default a direction inconsistent with the
    request, within 60&#160;days after receipt of the holders&#146;
    notice, request and offer of indemnity.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    However, such above-mentioned limitations do not apply to a suit
    instituted by the holder of a Debt Security for the enforcement
    of payment of the principal of or any premium, if any, or
    interest on such Debt Security on or after the applicable due
    date specified in such Debt Security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Defeasance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    When the Company uses the term &#147;defeasance&#148;, it means
    discharge from its obligations with respect to any Debt
    Securities of or within a series under the Indenture. Unless
    otherwise specified in the applicable Prospectus Supplement, if
    the Company deposits with a trustee cash, government securities
    or a combination thereof sufficient to pay the principal,
    interest, if any, premium, if any, and any other sums due to the
    stated maturity date or a redemption date of the Debt Securities
    of a series, then at the Company&#146;s option:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company will be discharged from the obligations with respect
    to the Debt Securities of that series;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company will no longer be under any obligation to comply
    with certain restrictive covenants under the Indenture and
    certain events of default will no longer apply to the Company.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If this happens, the holders of the Debt Securities of the
    affected series will not be entitled to the benefits of the
    Indenture except for registration of transfer and exchange of
    Debt Securities and the replacement of lost, stolen, destroyed
    or mutilated Debt Securities. These holders may look only to the
    deposited fund for payment on their Debt Securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To exercise the defeasance option, the Company must deliver to
    the trustees:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an opinion of counsel in the United States to the effect that
    the holders of the outstanding Debt Securities of the affected
    series will not recognize gain or loss for U.S.&#160;federal
    income tax purposes as a result of a defeasance and will be
    subject to U.S.&#160;federal income tax on the same amounts, in
    the same manner and at the same times as would have been the
    case if the defeasance had not occurred;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    an opinion of counsel in Canada or a ruling from the Canada
    Revenue Agency to the effect that the holders of the outstanding
    Debt Securities of the affected series will not recognize
    income, gain or loss for Canadian federal, provincial or
    territorial income or other tax purposes as a result of a
    defeasance and will be subject to Canadian federal, provincial
    or territorial income tax and other tax on the same amounts, in
    the same manner and at the same times as would have been the
    case had the defeasance not occurred;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    a certificate of one of the Company&#146;s officers and an
    opinion of counsel, each stating that all conditions precedent
    provided for relating to defeasance have been complied with.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is to be discharged from its obligations with
    respect to the Debt Securities, and not just from the
    Company&#146;s covenants, the U.S.&#160;opinion must be based
    upon a ruling from or published by the United States Internal
    Revenue Service or a change in law to that effect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the delivery of the opinions described above, the
    following conditions must be met before the Company may exercise
    its defeasance option:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    no event of default or event that, with the passing of time or
    the giving of notice, or both, shall constitute an event of
    default shall have occurred and be continuing for the Debt
    Securities of the affected series;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the Company is not an &#147;insolvent person&#148; within the
    meaning of applicable bankruptcy and insolvency
    legislation;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    other customary conditions precedent are satisfied.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Modification
    and Waiver</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Modifications and amendments of the Indenture may be made by the
    Company and the trustees pursuant to one or more Supplemental
    Indentures (a &#147;Supplemental Indenture&#148;) with the
    consent of the holders of a majority in aggregate principal
    amount of the outstanding Debt Securities of each series
    affected by the modification. However, without the consent of
    each holder affected, no such modification may:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    change the stated maturity of the principal of, premium, if any,
    or any instalment of interest, if any, on any Debt Security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reduce the principal, premium, if any, or rate of interest, if
    any, or change any obligation of the Company to pay any
    Additional Amounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reduce the amount of principal of a debt security payable upon
    acceleration of its maturity or the amount provable in
    bankruptcy;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    change the place or currency of any payment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    affect the holder&#146;s right to require the Company to
    repurchase the Debt Securities at the holder&#146;s option;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    impair the right of the holders to institute a suit to enforce
    their rights to payment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    adversely affect any conversion or exchange right related to a
    series of Debt Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reduce the percentage of Debt Securities required to modify the
    Indenture or to waive compliance with certain provisions of the
    Indenture;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    reduce the percentage in principal amount of outstanding Debt
    Securities necessary to take certain actions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The holders of a majority in principal amount of outstanding
    Debt Securities of any series may on behalf of the holders of
    all Debt Securities of that series waive, insofar as only that
    series is concerned, past defaults under the Indenture and
    compliance by the Company with certain restrictive provisions of
    the Indenture. However, these holders may not waive a default in
    any payment of principal, premium, if any, or interest on any
    Debt Security or compliance with a provision that cannot be
    modified without the consent of each holder affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may modify the Indenture pursuant to a Supplemental
    Indenture without the consent of any holders to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    evidence its successor under the Indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    add covenants or surrender any right or power for the benefit of
    holders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    add events of default;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    provide for unregistered securities to become registered
    securities under the Indenture and make other such changes to
    unregistered securities that in each case do not materially and
    adversely affect the interests of holders of outstanding Debt
    Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    establish the forms of the Debt Securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    appoint a successor trustee under the Indenture;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    add provisions to permit or facilitate the defeasance and
    discharge of the Debt Securities as long as there is no material
    adverse effect on the holders;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    cure any ambiguity, correct or supplement any defective or
    inconsistent provision or make any other provisions in each case
    that would not materially and adversely affect the interests of
    holders of outstanding Debt Securities, if any;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="3%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    comply with any applicable laws of the United States and Canada
    in order to effect and maintain the qualification of the
    Indenture under such laws to the extent they do not conflict
    with the applicable laws of the United States;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    change or eliminate any provisions of the Indenture where such
    change takes effect when there are no Debt Securities
    outstanding under the Indenture.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Governing
    Law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Indenture and the Debt Securities will be governed by and
    construed in accordance with the laws of the State of New York,
    except that discharge by the Canadian trustee of any of its
    rights, powers, duties or responsibilities hereunder shall be
    construed in accordance with the laws of the Province of British
    Columbia and the federal laws of Canada applicable thereto.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">The
    Trustees</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any trustee under the Indenture or its affiliates may provide
    other services to the Company in the ordinary course of their
    business. If the trustee or any affiliate acquires any
    conflicting interest and a default occurs with respect to the
    Debt Securities, the trustee must eliminate the conflict or
    resign.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Resignation
    and Removal of Trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A trustee may resign or be removed with respect to one or more
    series of the Debt Securities and a successor trustee may be
    appointed to act with respect to such series.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Consent
    to Service</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with the Indenture, the Company will irrevocably
    designate and appoint CT Corporation System, 111 8th Avenue,
    13th Floor, New York, New York 10011, as its authorized agent
    upon which process may be served in any suit or proceeding
    arising out of or relating to the Indenture or the Debt
    Securities that may be instituted in any U.S.&#160;federal or
    New York State court located in The Borough of Manhattan, in the
    City of New&#160;York, or brought by the trustees (whether in
    their individual capacity or in their capacity as trustees under
    the Indenture), and will irrevocably submit to the non-exclusive
    jurisdiction of such courts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Enforceability
    of Judgments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Since all or substantially all of the Company&#146;s assets, as
    well as the assets of most of the directors of the Company, are
    outside the United States, any judgment obtained in the United
    States against the Company or certain of its directors,
    including judgments with respect to the payment of principal on
    the Debt Securities, may not be collectible within the United
    States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has been advised that the laws of the Province of
    British Columbia and the federal laws of Canada applicable
    therein would permit an action to be brought against the Company
    in the Supreme Court of British Columbia on any final and
    conclusive monetary (or, in appropriate circumstances,
    non-monetary) judgment <I>in personam </I>of any federal or
    state court located in the State of New York, with respect to
    the enforcement of the Indenture and the Debt Securities, which
    was subsisting and unsatisfied, and which was not impeachable as
    void or voidable under New York law if: (1)&#160;the New York
    court rendering that judgment had jurisdiction over the Company
    under&#160;&#149;&#160;law; (2)&#160;there was a real and
    substantial connection between the parties, the cause of action
    and New York, or the Company had attorned to the jurisdiction of
    the New York court (and submission by the Company in the
    Indenture to the jurisdiction of the New York court will be such
    an attornment), (3)&#160;the judgment was not obtained by fraud
    or in a manner contrary to natural justice and the enforcement
    thereof would not be inconsistent with public policy, as those
    terms are understood under the laws of British Columbia and the
    federal laws of Canada applicable therein, or contrary to any
    order made by the Attorney General of Canada under the
    <I>Foreign Extraterritorial Measures Act (Canada) </I>or the
    Competition Tribunal under the <I>Competition Act (Canada)</I>;
    (4)&#160;the enforcement of that judgment would not be contrary
    to the British Columbia laws of general application limiting the
    enforcement of creditors&#146; rights, including bankruptcy,
    reorganization,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">winding-up,</FONT>
    moratorium and similar laws, and would not constitute, directly
    or indirectly, the enforcement of foreign laws which the British
    Columbia court would characterize as revenue, expropriatory or
    penal; (5)&#160;that judgment did not contain a manifest error
    on its face; (6)&#160;the action to enforce that judgment was
    commenced within the appropriate British Columbia limitation
    period; (7)&#160;interest payable on the Debt Securities was not
    characterized by the British Columbia court as interest payable
    at a criminal rate within the meaning of s. 347 of the
    <I>Criminal Code </I>(Canada); and (8)&#160;that judgment did
    not conflict with another final and conclusive judgment in the
    same cause of action; except that the British Columbia court
    might stay the action to enforce the New York judgment if an
    appeal of the New York judgment was pending or time for an
    appeal had not expired; and except that the British Columbia
    court would give judgment only in Canadian dollars.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company has been advised that there is doubt as to the
    enforceability in Canada, by a court in original actions or
    actions to enforce judgments of U.S.&#160;courts, of civil
    liabilities predicated solely upon U.S.&#160;federal securities
    laws.
</DIV>

<A name='D81345134'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF WARRANTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following description, together with the additional
    information the Company may include in any applicable Prospectus
    Supplements and free writing prospectuses, summarizes the
    material terms and provisions of the Warrants that the Company
    may offer under this Prospectus, which may consist of Warrants
    to purchase Common Shares or Debt Securities and may be issued
    in one or more series. Warrants may be offered independently or
    together with Common Shares, Debt Securities or Subscription
    Receipts offered by any Prospectus Supplement, and may be
    attached to or separate from those Securities. While the terms
    the Company has summarized below will apply generally to any
    Warrants that it may offer under this Prospectus, the Company
    will describe the particular terms of any series of Warrants
    that it may offer in more detail in the applicable Prospectus
    Supplement and any applicable free writing prospectus. The terms
    of any Warrants offered under a Prospectus Supplement may differ
    from the terms described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Warrants will be issued under and governed by the terms of one
    or more warrant indentures (each a &#147;Warrant
    Indenture&#148;) between the Company and a warrant trustee (the
    &#147;Warrant Trustee&#148;) that the Company will name in the
    relevant Prospectus Supplement. Each Warrant Trustee will be a
    financial institution organized under the laws of Canada or any
    province thereof and authorized to carry on business as a
    trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary of some of the provisions of the Warrants is not
    complete. The statements made in this Prospectus relating to any
    Warrant Indenture and Warrants to be issued under this
    Prospectus are summaries of certain anticipated provisions
    thereof and do not purport to be complete and are subject to,
    and are qualified in their entirety by reference to, all
    provisions of the applicable Warrant Indenture. Prospective
    investors should refer to the Warrant Indenture relating to the
    specific Warrants being offered for the complete terms of the
    Warrants. The Company will file as exhibits to the registration
    statement of which this Prospectus is a part, or will
    incorporate by reference from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC, any Warrant Indenture
    describing the terms and conditions of Warrants the Company is
    offering before the issuance of such Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The applicable Prospectus Supplement relating to any Warrants
    offered by the Company will describe the particular terms of
    those Warrants and include specific terms relating to the
    offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Equity
    Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The particular terms of each issue of equity warrants
    (&#147;Equity Warrants&#148;) will be described in the
    applicable Prospectus Supplement. This description will include,
    where applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and aggregate number of Equity Warrants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the price at which the Equity Warrants will be offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the currency or currencies in which the Equity Warrants will be
    offered;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    34
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date on which the right to exercise the Equity Warrants will
    commence and the date on which the right will expire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the number of Common Shares that may be purchased upon exercise
    of each Equity Warrant and the price at which and currency or
    currencies in which the Common Shares may be purchased upon
    exercise of each Equity Warrant;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and terms of any Securities with which the
    Equity Warrants will be offered, if any, and the number of the
    Equity Warrants that will be offered with each Security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date or dates, if any, on or after which the Equity Warrants
    and the other Securities with which the Equity Warrants will be
    offered will be transferable separately;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Equity Warrants will be subject to redemption and,
    if so, the terms of such redemption provisions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Equity Warrants as global
    securities and, if so, the identity of the depositary of the
    global securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Equity Warrants will be listed on any exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    material United States and Canadian federal income tax
    consequences of owning the Equity Warrants;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any other material terms or conditions of the Equity Warrants.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Debt
    Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The particular terms of each issue of debt warrants (&#147;Debt
    Warrants&#148;) will be described in the related Prospectus
    Supplement. This description will include, where applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and aggregate number of Debt Warrants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the price at which the Debt Warrants will be offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the currency or currencies in which the Debt Warrants will be
    offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date on which the right to exercise the Debt Warrants will
    commence and the date on which the right will expire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the principal amount of Debt Securities that may be purchased
    upon exercise of each Debt Warrant and the price at which and
    currency or currencies in which that principal amount of Debt
    Securities may be purchased upon exercise of each Debt Warrant;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and terms of any Securities with which the Debt
    Warrants will be offered, if any, and the number of the Debt
    Warrants that will be offered with each Security;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the date or dates, if any, on or after which the Debt Warrants
    and the other Securities with which the Debt Warrants will be
    offered will be transferable separately;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the terms and provisions of the Debt Securities issuable upon
    the exercise of the Debt Warrants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the minimum or maximum amount of Debt Warrants that may be
    exercised at any one time;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Debt Warrants will be subject to redemption, and, if
    so, the terms of such redemption provisions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Debt Warrants as global
    securities and, if so, the identity of the depositary of the
    global securities;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    35
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="5%"></TD>
    <TD width="3%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Debt Warrants will be listed on any exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    material United States and Canadian federal income tax
    consequences of owning the Debt Warrants;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any other material terms or conditions of the Debt Warrants.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Rights of
    Holders Prior to Exercise</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to the exercise of their Warrants, holders of Warrants
    will not have any of the rights of holders of the Common Shares
    or Debt Securities issuable upon exercise of the Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Exercise
    of Warrants</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each Warrant will entitle the holder to purchase the Securities
    that the Company specifies in the applicable Prospectus
    Supplement at the exercise price that the Company describes
    therein. Unless the Company otherwise specifies in the
    applicable Prospectus Supplement, holders of the Warrants may
    exercise the Warrants at any time up to the specified time on
    the expiration date that the Company sets forth in the
    applicable Prospectus Supplement. After the close of business on
    the expiration date, unexercised warrants will become void.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Holders of the Warrants may exercise the Warrants by delivering
    the Warrant Certificate representing the Warrants to be
    exercised together with specified information, and paying the
    required amount to the Warrant Trustee in immediately available
    funds, as provided in the applicable Prospectus Supplement. The
    Company will set forth on the Warrant Certificate and in the
    applicable Prospectus Supplement the information that the holder
    of the Warrant will be required to deliver to the Warrant
    Trustee.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Upon receipt of the required payment and the Warrant Certificate
    properly completed and duly executed at the corporate trust
    office of the Warrant Trustee or any other office indicated in
    the applicable Prospectus Supplement, the Company will issue and
    deliver the securities purchasable upon such exercise. If fewer
    than all of the Warrants represented by the Warrant Certificate
    are exercised, then the Company will issue a new Warrant
    Certificate for the remaining amount of Warrants. If the Company
    so indicates in the applicable Prospectus Supplement, holders of
    the Warrants may surrender securities as all or part of the
    exercise price for Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Dilution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Warrant Indenture will specify that upon the subdivision,
    consolidation, reclassification or other material change of the
    Common Shares or Debt Securities or any other reorganization,
    amalgamation, merger or sale of all or substantially all of the
    Company&#146;s assets, the Warrants will thereafter evidence the
    right of the holder to receive the securities, property or cash
    deliverable in exchange for or on the conversion of or in
    respect of the Common Shares or Debt Securities to which the
    holder of a Common Share or Debt Security would have been
    entitled immediately after such event. Similarly, any
    distribution to all or substantially all of the holders of
    Common Shares of rights, options, warrants, evidences of
    indebtedness or assets will result in an adjustment in the
    number of Common Shares to be issued to holders of Equity
    Warrants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Global
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Warrants in whole or in part in the form
    of one or more global securities, which will be registered in
    the name of and be deposited with a depositary, or its nominee,
    each of which will be identified in the applicable Prospectus
    Supplement. The global securities may be in temporary or
    permanent form. The applicable Prospectus Supplement will
    describe the terms of any depositary arrangement and the rights
    and limitations of owners of beneficial interests in any global
    security. The applicable Prospectus Supplement will describe the
    exchange, registration and transfer rights relating to any
    global security.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    36
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Modifications</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Warrant Indenture will provide for modifications and
    alterations to the Warrants issued thereunder by way of a
    resolution of holders of Warrants at a meeting of such holders
    or a consent in writing from such holders. The number of holders
    of Warrants required to pass such a resolution or execute such a
    written consent will be specified in the Warrant Indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may amend any Warrant Indenture and the Warrants,
    without the consent of the holders of the Warrants, to cure any
    ambiguity, to cure, correct or supplement any defective or
    inconsistent provision, or in any other manner that will not
    materially and adversely affect the interests of holders of
    outstanding Warrants.
</DIV>

<A name='D81345135'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF SUBSCRIPTION RECEIPTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Subscription Receipts, which will entitle
    holders to receive upon satisfaction of certain release
    conditions and for no additional consideration, Common Shares,
    Debt Securities, Warrants or any combination thereof.
    Subscription Receipts will be issued pursuant to one or more
    subscription receipt agreements (each, a &#147;Subscription
    Receipt Agreement&#148;), each to be entered into between the
    Company and an escrow agent (the &#147;Escrow Agent&#148;),
    which will establish the terms and conditions of the
    Subscription Receipts. Each Escrow Agent will be a financial
    institution organized under the laws of Canada or a province
    thereof and authorized to carry on business as a trustee. The
    Company will file as exhibits to the registration statement of
    which this Prospectus is a part, or will incorporate by
    reference from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC, any Subscription Receipt
    Agreement describing the terms and conditions of Subscription
    Receipts the Company is offering before the issuance of such
    Subscription Receipts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following description sets forth certain general terms and
    provisions of Subscription Receipts and is not intended to be
    complete. The statements made in this Prospectus relating to any
    Subscription Receipt Agreement and Subscription Receipts to be
    issued thereunder are summaries of certain anticipated
    provisions thereof and are subject to, and are qualified in
    their entirety by reference to, all provisions of the applicable
    Subscription Receipt Agreement and the Prospectus Supplement
    describing such Subscription Receipt Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Prospectus Supplement relating to any Subscription Receipts
    the Company offers will describe the Subscription Receipts and
    include specific terms relating to their offering. All such
    terms will comply with the requirements of the Toronto Stock
    Exchange and NYSE Amex relating to Subscription Receipts. If
    underwriters or agents are used in the sale of Subscription
    Receipts, one or more of such underwriters or agents may also be
    parties to the Subscription Receipt Agreement governing the
    Subscription Receipts sold to or through such underwriters or
    agents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Prospectus Supplement and the Subscription Receipt Agreement
    for any Subscription Receipts the Company offers will describe
    the specific terms of the Subscription Receipts and may include,
    but are not limited to, any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and aggregate number of Subscription Receipts
    offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the price at which the Subscription Receipts will be offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the currency or currencies in which the Subscription Receipts
    will be offered;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation, number and terms of the Common Shares, Debt
    Securities, Warrants or combination thereof to be received by
    holders of Subscription Receipts upon satisfaction of the
    release conditions, and the procedures that will result in the
    adjustment of those numbers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the conditions (the &#147;Release Conditions&#148;) that must be
    met in order for holders of Subscription Receipts to receive for
    no additional consideration Common Shares, Debt Securities,
    Warrants or a combination thereof;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    37
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="4%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the procedures for the issuance and delivery of Common Shares,
    Debt Securities, Warrants or a combination thereof to holders of
    Subscription Receipts upon satisfaction of the Release
    Conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether any payments will be made to holders of Subscription
    Receipts upon delivery of the Common Shares, Debt Securities,
    Warrants or a combination thereof upon satisfaction of the
    Release Conditions (<I>e.g.</I>, an amount equal to dividends
    declared on Common Shares by the Company to holders of record
    during the period from the date of issuance of the Subscription
    Receipts to the date of issuance of any Common Shares pursuant
    to the terms of the Subscription Receipt Agreement, or an amount
    equal to interest payable by the Company in respect of Debt
    Securities during the period from the date of issuance of the
    Subscription Receipts to the date of issuance of the Debt
    Securities pursuant to the terms of the Subscription Receipt
    Agreement);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the terms and conditions under which the Escrow Agent will hold
    all or a portion of the gross proceeds from the sale of
    Subscription Receipts, together with interest and income earned
    thereon (collectively, the &#147;Escrowed Funds&#148;), pending
    satisfaction of the Release Conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the terms and conditions pursuant to which the Escrow Agent will
    hold Common Shares, Debt Securities, Warrants or a combination
    thereof pending satisfaction of the Release Conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the terms and conditions under which the Escrow Agent will
    release all or a portion of the Escrowed Funds to the Company
    upon satisfaction of the Release Conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    if the Subscription Receipts are sold to or through underwriters
    or agents, the terms and conditions under which the Escrow Agent
    will release a portion of the Escrowed Funds to such
    underwriters or agents in payment of all or a portion of their
    fees or commission in connection with the sale of the
    Subscription Receipts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    procedures for the refund by the Escrow Agent to holders of
    Subscription Receipts of all or a portion of the subscription
    price for their Subscription Receipts, plus any <I>pro rata
    </I>entitlement to interest earned or income generated on such
    amount, if the Release Conditions are not satisfied;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any contractual right of rescission to be granted to initial
    purchasers of Subscription Receipts in the event this
    Prospectus, the Prospectus Supplement under which Subscription
    Receipts are issued or any amendment hereto or thereto contains
    a misrepresentation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any entitlement of the Company to purchase the Subscription
    Receipts in the open market by private agreement or otherwise;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Subscription Receipts as
    global securities and, if so, the identity of the depositary for
    the global securities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Company will issue the Subscription Receipts as
    bearer securities, registered securities or both;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    provisions as to modification, amendment or variation of the
    Subscription Receipt Agreement or any rights or terms attaching
    to the Subscription Receipts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the identity of the Escrow Agent;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    whether the Subscription Receipts will be listed on any exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    material United States and Canadian federal tax consequences of
    owning the Subscription Receipts;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any other terms of the Subscription Receipts.
</TD>
</TR>

</TABLE>
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    <BR>
    38
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The holders of Subscription Receipts will not be shareholders
    of the Company. Holders of Subscription Receipts are entitled
    only to receive Common Shares, Debt Securities, Warrants or a
    combination thereof on exchange of their Subscription Receipts,
    plus any cash payments provided for under the Subscription
    Receipt Agreement, if the Release Conditions are satisfied. If
    the Release Conditions are not satisfied, the holders of
    Subscription Receipts shall be entitled to a refund of all or a
    portion of the subscription price therefor and all or a portion
    of the <I>pro rata </I>share of interest earned or income
    generated thereon, as provided in the Subscription Receipt
    Agreement.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Escrow</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Escrowed Funds will be held in escrow by the Escrow Agent,
    and such Escrowed Funds will be released to the Company (and, if
    the Subscription Receipts are sold to or through underwriters or
    agents, a portion of the Escrowed Funds may be released to such
    underwriters or agents in payment of all or a portion of their
    fees in connection with the sale of the Subscription Receipts)
    at the time and under the terms specified by the Subscription
    Receipt Agreement. If the Release Conditions are not satisfied,
    holders of Subscription Receipts will receive a refund of all or
    a portion of the subscription price for their Subscription
    Receipts plus their <I>pro rata </I>entitlement to interest
    earned or income generated on such amount, in accordance with
    the terms of the Subscription Receipt Agreement. Common Shares,
    Debt Securities or Warrants may be held in escrow by the Escrow
    Agent, and will be released to the holders of Subscription
    Receipts following satisfaction of the Release Conditions at the
    time and under the terms specified in the Subscription Receipt
    Agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Anti-Dilution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Subscription Receipt Agreement will specify that upon the
    subdivision, consolidation, reclassification or other material
    change of the Common Shares, Debt Securities or Warrants or any
    other reorganization, amalgamation, merger or sale of all or
    substantially all of the Company&#146;s assets, the Subscription
    Receipts will thereafter evidence the right of the holder to
    receive the securities, property or cash deliverable in exchange
    for or on the conversion of or in respect of the Common Shares,
    Debt Securities or Warrants to which the holder of a Common
    Share, Debt Security or Warrant would have been entitled
    immediately after such event. Similarly, any distribution to all
    or substantially all of the holders of Common Shares of rights,
    options, warrants, evidences of indebtedness or assets will
    result in an adjustment in the number of Common Shares to be
    issued to holders of Subscription Receipts whose Subscription
    Receipts entitle the holders thereof to receive Common Shares.
    Alternatively, such securities, evidences of indebtedness or
    assets may, at the option of the Company, be issued to the
    Escrow Agent and delivered to holders of Subscription Receipts
    on exercise thereof. The Subscription Receipt Agreement will
    also provide that if other actions of the Company affect the
    Common Shares, Debt Securities or Warrants, which, in the
    reasonable opinion of the directors of the Company, would
    materially affect the rights of the holders of Subscription
    Receipts
    <FONT style="white-space: nowrap">and/or</FONT> the
    rights attached to the Subscription Receipts, the number of
    Common Shares, Debt Securities or Warrants which are to be
    received pursuant to the Subscription Receipts shall be adjusted
    in such manner, if any, and at such time as the directors of the
    Company may in their discretion reasonably determine to be
    equitable to the holders of Subscription Receipts in such
    circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Rescission</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Subscription Receipt Agreement will also provide that any
    misrepresentation in this Prospectus, the Prospectus Supplement
    under which the Subscription Receipts are offered, or any
    amendment thereto, will entitle each initial purchaser of
    Subscription Receipts to a contractual right of rescission
    following the issuance of the Common Shares, Debt Securities or
    Warrants to such purchaser entitling such purchaser to receive
    the amount paid for the Subscription Receipts upon surrender of
    the Common Shares, Debt Securities or Warrants, provided that
    such remedy for rescission is exercised in the time stipulated
    in the Subscription Receipt Agreement. This right of rescission
    does not extend to holders of Subscription Receipts who acquire
    such Subscription Receipts from an initial purchaser, on the
    open market or otherwise, or to initial purchasers who acquire
    Subscription Receipts in the United States.
</DIV>
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    <BR>
    39
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Global
    Securities</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Subscription Receipts in whole or in part
    in the form of one or more global securities, which will be
    registered in the name of and be deposited with a depositary, or
    its nominee, each of which will be identified in the applicable
    Prospectus Supplement. The global securities may be in temporary
    or permanent form. The applicable Prospectus Supplement will
    describe the terms of any depositary arrangement and the rights
    and limitations of owners of beneficial interests in any global
    security. The applicable Prospectus Supplement also will
    describe the exchange, registration and transfer rights relating
    to any global security.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Modifications</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Subscription Receipt Agreement will provide for
    modifications and alterations to the Subscription Receipts
    issued thereunder by way of a resolution of holders of
    Subscription Receipts at a meeting of such holders or a consent
    in writing from such holders. The number of holders of
    Subscriptions Receipts required to pass such a resolution or
    execute such a written consent will be specified in the
    Subscription Receipt Agreement.
</DIV>

<A name='D81345136'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following description, together with the additional
    information the Company may include in any applicable Prospectus
    Supplements, summarizes the material terms and provisions of the
    Units that the Company may offer under this Prospectus. While
    the terms the Company has summarized below will apply generally
    to any Units that the Company may offer under this Prospectus,
    the Company will describe the particular terms of any series of
    Units in more detail in the applicable Prospectus Supplement.
    The terms of any Units offered under a Prospectus Supplement may
    differ from the terms described below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will file as exhibits to the registration statement
    of which this Prospectus is a part, or will incorporate by
    reference from a current report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    that the Company files with the SEC, the form of unit agreement
    (&#147;Unit Agreement&#148;) between the Company and a unit
    agent (&#147;Unit Agent&#148;) that describes the terms and
    conditions of the series of Units the Company is offering, and
    any supplemental agreements, before the issuance of the related
    series of Units. The following summaries of material terms and
    provisions of the Units are subject to, and qualified in their
    entirety by reference to, all the provisions of the Unit
    Agreement and any supplemental agreements applicable to a
    particular series of Units. The Company urges you to read the
    applicable Prospectus Supplements related to the particular
    series of Units that the Company sells under this Prospectus, as
    well as the complete Unit Agreement and any supplemental
    agreements that contain the terms of the Units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue units comprising one or more of Common
    Shares, Debt Securities, Warrants and Subscription Receipts in
    any combination. Each Unit will be issued so that the holder of
    the Unit is also the holder of each security included in the
    Unit. Thus, the holder of a Unit will have the rights and
    obligations of a holder of each included security. The Unit
    Agreement under which a Unit is issued may provide that the
    securities included in the Unit may not be held or transferred
    separately, at any time or at any time before a specified date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company will describe in the applicable Prospectus
    Supplement the terms of the series of Units, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="12%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    the designation and terms of the Units and of the securities
    comprising the Units, including whether and under what
    circumstances those securities may be held or transferred
    separately;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any provisions of the governing Unit Agreement that differ from
    those described below;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;&#160;
</TD>
    <TD align="left">
    any provisions for the issuance, payment, settlement, transfer
    or exchange of the Units or of the securities comprising the
    Units.
</TD>
</TR>

</TABLE>
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    <BR>
    40
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The provisions described in this section, as well as those
    described under &#147;Description of Common Shares,&#148;
    &#147;Description of Debt Securities,&#148; &#147;Description of
    Warrants,&#148; and &#147;Description of Subscription
    Rights&#148; will apply to each Unit and to any Common Share,
    Debt Security, Warrant or Subscription Receipt included in each
    Unit, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    in Series</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may issue Units in such amounts and in numerous
    distinct series as the Company determines.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Enforceability
    of Rights by Holders of Units</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each Unit Agent will act solely as our agent under the
    applicable Unit Agreement and will not assume any obligation or
    relationship of agency or trust with any holder of any Unit. A
    single bank or trust company may act as Unit Agent for more than
    one series of Units. A Unit Agent will have no duty or
    responsibility in case of any default by the Company under the
    applicable Unit Agreement or Unit, including any duty or
    responsibility to initiate any proceedings at law or otherwise,
    or to make any demand upon the Company. Any holder of a Unit
    may, without the consent of the related Unit Agent or the holder
    of any other Unit, enforce by appropriate legal action its
    rights as holder under any security included in the Unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company, the Unit Agents, and any of their agents may treat
    the registered holder of any Unit Certificate as an absolute
    owner of the Units evidenced by that certificate for any purpose
    and as the person entitled to exercise the rights attaching to
    the Units so requested, despite any notice to the contrary.
</DIV>
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    <BR>
    41
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<A name='D81345137'>
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    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company may offer and sell the Securities, separately or
    together: (a)&#160;to one or more underwriters or dealers;
    (b)&#160;through one or more agents; or (c)&#160;directly to one
    or more other purchasers. The Securities offered pursuant to any
    Prospectus Supplement may be sold from time to time in one or
    more transactions at: (i)&#160;a fixed price or prices, which
    may be changed from time to time; (ii)&#160;market prices
    prevailing at the time of sale; (iii)&#160;prices related to
    such prevailing market prices; or (iv)&#160;other negotiated
    prices. The Company may only offer and sell the Securities
    pursuant to a Prospectus Supplement during the
    <FONT style="white-space: nowrap">25-month</FONT>
    period that this Prospectus, including any amendments hereto,
    remains effective. The Prospectus Supplement for any of the
    Securities being offered thereby will set forth the terms of the
    offering of such Securities, including the type of Security
    being offered, the name or names of any underwriters, dealers or
    agents, the purchase price of such Securities, the proceeds to
    the Company from such sale, any underwriting commissions or
    discounts and other items constituting underwriters&#146;
    compensation and any discounts or concessions allowed or
    re-allowed or paid to dealers. Only underwriters so named in the
    Prospectus Supplement are deemed to be underwriters in
    connection with the Securities offered thereby.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">By
    Underwriters</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If underwriters are used in the sale, the Securities will be
    acquired by the underwriters for their own account and may be
    resold from time to time in one or more transactions, including
    negotiated transactions, at a fixed public offering price or at
    varying prices determined at the time of sale. Unless otherwise
    set forth in the Prospectus Supplement relating thereto, the
    obligations of underwriters to purchase the Securities will be
    subject to certain conditions, but the underwriters will be
    obligated to purchase all of the Securities offered by the
    Prospectus Supplement if any of such Securities are purchased.
    The Company may offer the Securities to the public through
    underwriting syndicates represented by managing underwriters or
    by underwriters without a syndicate. The Company may agree to
    pay the underwriters a fee or commission for various services
    relating to the offering of any Securities. Any such fee or
    commission will be paid out of the general corporate funds of
    the Company. The Company may use underwriters with whom it has a
    material relationship. The Company will describe in the
    Prospectus Supplement, naming the underwriter, the nature of any
    such relationship.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">By
    Dealers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If dealers are used, and if so specified in the applicable
    Prospectus Supplement, the Company will sell such Securities to
    the dealers as principals. The dealers may then resell such
    Securities to the public at varying prices to be determined by
    such dealers at the time of resale. Any public offering price
    and any discounts or concessions allowed or re-allowed or paid
    to dealers may be changed from time to time. The Company will
    set forth the names of the dealers and the terms of the
    transaction in the applicable Prospectus Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">By
    Agents</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Securities may also be sold through agents designated by the
    Company. Any agent involved will be named, and any fees or
    commissions payable by the Company to such agent will be set
    forth, in the applicable Prospectus Supplement. Any such fees or
    commissions will be paid out of the general corporate funds of
    the Company. Unless otherwise indicated in the Prospectus
    Supplement, any agent will be acting on a best efforts basis for
    the period of its appointment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Direct
    Sales</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Securities may also be sold directly by the Company at such
    prices and upon such terms as agreed to by the Company and the
    purchaser. In this case, no underwriters, dealers or agents
    would be involved in the offering.
</DIV>
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    <B><FONT style="font-family: 'Times New Roman', Times">General
    Information</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Underwriters, dealers and agents that participate in the
    distribution of the Securities offered by this Prospectus may be
    deemed underwriters under the Securities Act, and any discounts
    or commissions they receive from us and any profit on their
    resale of the securities may be treated as underwriting
    discounts and commissions under the Securities Act.
</DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    With respect to the sale of Securities under this Prospectus and
    any Prospectus Supplement, the maximum commission or discount to
    be received by any member of the Financial Industry Regulatory
    Authority, Inc. or independent broker or dealer will not be
    greater than eight percent (8%).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Underwriters, dealers or agents who participate in the
    distribution of Securities may be entitled under agreements to
    be entered into with the Company to indemnification by the
    Company against certain liabilities, including liabilities under
    Canadian provincial and territorial and United States securities
    legislation, or to contribution with respect to payments which
    such underwriters, dealers or agents may be required to make in
    respect thereof. Such underwriters, dealers or agents may be
    customers of, engage in transactions with, or perform services
    for, the Company in the ordinary course of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may enter into derivative transactions with third parties, or
    sell securities not covered by this Prospectus to third parties
    in privately negotiated transactions. If the applicable
    Prospectus Supplement indicates, in connection with those
    derivatives, the third parties may sell securities covered by
    this Prospectus and the applicable Prospectus Supplement,
    including in short sale transactions. If so, the third parties
    may use securities pledged by us or borrowed from us or others
    to settle those sales or to close out any related open
    borrowings of stock, and may use securities received from us in
    settlement of those derivatives to close out any related open
    borrowings of stock. The third parties in such sale transactions
    will be identified in the applicable Prospectus Supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    One or more firms, referred to as &#147;remarketing firms,&#148;
    may also offer or sell the Securities, if the Prospectus
    Supplement so indicates, in connection with a remarketing
    arrangement upon their purchase. Remarketing firms will act as
    principals for their own accounts or as agents for us. These
    remarketing firms will offer or sell the Securities in
    accordance with the terms of the Securities. The Prospectus
    Supplement will identify any remarketing firm and the terms of
    its agreement, if any, with us and will describe the remarketing
    firm&#146;s compensation. Remarketing firms may be deemed to be
    underwriters in connection with the Securities they remarket.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with any offering of Securities, underwriters may
    over-allot or effect transactions which stabilize or maintain
    the market price of the Securities offered at a level above that
    which might otherwise prevail in the open market. Such
    transactions may be commenced, interrupted or discontinued at
    any time.
</DIV>

<A name='D81345138'>
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    <B><FONT style="font-family: 'Times New Roman', Times">CERTAIN
    CANADIAN FEDERAL INCOME TAX CONSIDERATIONS FOR U.S.
    RESIDENTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following summarizes certain Canadian federal income tax
    consequences generally applicable under the <I>Income Tax Act
    </I>(Canada) and the regulations enacted thereunder
    (collectively, the &#147;Canadian Tax Act&#148;) and the
    <I>Canada-United States Income Tax Convention (1980) </I>(the
    &#147;Convention&#148;) to the holding and disposition of Common
    Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Comment is restricted to holders of Common Shares each of whom,
    at all material times for the purposes of the Canadian Tax Act
    and the Convention, (i)&#160;is resident solely in the United
    States and is not resident in Canada, (ii)&#160;holds all Common
    Shares solely as capital property, (iii)&#160;deals at
    arm&#146;s length with and is not affiliated with the Company,
    and (iv)&#160;does not use or hold and is not deemed to use or
    hold, any Common Shares in a business carried on in Canada, and
    none of whose Common Shares constitute &#147;taxable Canadian
    property&#148; as defined in the Canadian Tax Act (each such
    individual, a &#147;U.S.&#160;Resident&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, a person will be considered to hold a Common Share as
    capital property provided that the person acquired the shares as
    a long-term investment, is not a trader or dealer in securities,
    did not acquire, hold or
</DIV>
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    dispose of the share in a transaction considered to be an
    adventure or concern in the nature of trade (<I>i.e.
    </I>speculation), and does not hold the Common Share as
    inventory in the course of carrying on a business. Special
    rules, which are not discussed below, may apply to a
    U.S.&#160;Resident who is an insurer that carries on business in
    Canada and elsewhere.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Generally, a non-resident person&#146;s Common Shares will not
    constitute &#147;taxable Canadian property&#148; at a particular
    time provided that (i)&#160;the Common Shares are listed on a
    &#147;designated stock exchange&#148; (which currently includes
    the Toronto Stock Exchange) at that time, and (ii)&#160;neither
    the person nor one or more other persons with whom the first
    person does not deal at arm&#146;s length alone or in any
    combination held, directly or indirectly, 25% or more of the
    issued shares of any class in the capital stock of the Company
    at any time in the 60&#160;months preceding the particular time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain entities that are fiscally transparent for United States
    federal income tax purposes (including limited liability
    companies) do not qualify as residents of the United States
    under the provisions of the Convention, according to the
    published policy of the Canada Revenue Agency (the
    &#147;CRA&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is based on the current provisions of the Canadian
    Tax Act and the Convention in effect on the date hereof, all
    specific proposals to amend the Canadian Tax Act and Convention
    publicly announced by or on behalf of the Minister of Finance
    (Canada) on or before the date hereof (the &#147;Tax
    Proposals&#148;), and the current published administrative and
    assessing policies of the CRA. It is assumed that all such
    amendments will be enacted as currently proposed, and that there
    will be no other material change to any applicable law or
    administrative practice, although no assurance can be given in
    these respects. Except as otherwise expressly provided, this
    summary does not take into account any provincial, territorial
    or foreign tax considerations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 6%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>This summary is of a general nature only, is not
    exhaustive of all possible Canadian federal income tax
    considerations, and is not and is not to be construed as legal
    or tax advice to any particular holder or prospective holder of
    Common Shares. Each holder or prospective holder of Common
    Shares is urged to consult his, her or its own tax advisors for
    advice with respect to the holder or prospective holder&#146;s
    particular circumstances. The discussion below is qualified
    accordingly.</I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary does not address any Canadian federal income tax
    considerations in respect of the transactions pursuant to the
    Arrangement by which shareholders of the Company exchanged their
    old common shares and received, subject to applicable
    withholding taxes, (i)&#160;new Common Shares of the Company and
    (ii)&#160;common shares of Allied Nevada. Holders of Common
    Shares are referred to the Management Information and Proxy
    Circular of the Company dated October&#160;11, 2006 for a
    summary of the tax consequences related to these transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Resident who disposes of a Common Share will not
    thereby incur any liability for Canadian federal income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Taxation
    of Dividends on Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Resident who is or is deemed to be paid or credited
    a dividend on the U.S.&#160;Resident&#146;s Common Shares will
    be subject to Canadian withholding tax equal to 15% or, if the
    U.S.&#160;Resident is a company that holds 10% or more of the
    voting stock of the Company, 5%, of the gross amount of the
    dividend. A U.S.&#160;Resident that is a qualifying religious,
    scientific, literary, educational or charitable tax-exempt
    organization or a qualifying trust, company, organization or
    arrangement operated exclusively to administer or provide
    pension, retirement or employee benefits and is exempt from tax
    in the United States may be exempt under the Convention from
    Canadian withholding tax provided specific administrative
    procedures are complied with.
</DIV>
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<A name='D81345139'>
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<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    FEDERAL INCOME TAX CONSEQUENCES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following is a summary of the anticipated material
    U.S.&#160;federal income tax consequences to a U.S.&#160;Holder
    (as defined below) arising from and relating to the acquisition,
    ownership, and disposition of the Company&#146;s Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is for general information purposes only and does
    not purport to be a complete analysis or listing of all
    potential U.S.&#160;federal income tax consequences that may
    apply to a U.S.&#160;Holder as a result of the acquisition,
    ownership, and disposition of Common Shares. In addition, this
    summary does not take into account the individual facts and
    circumstances of any particular U.S.&#160;Holder that may affect
    the U.S.&#160;federal income tax consequences of the
    acquisition, ownership, and disposition of Common Shares.
    Accordingly, this summary is not intended to be, and should not
    be construed as, legal or U.S.&#160;federal income tax advice
    with respect to any U.S.&#160;Holder. Each U.S.&#160;Holder
    should consult its own financial advisor, legal counsel, or
    accountant regarding the U.S.&#160;federal, U.S.&#160;state and
    local, and foreign tax consequences of the acquisition,
    ownership, and disposition of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Scope of
    this Disclosure</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Authorities</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary is based on the Internal Revenue Code of 1986, as
    amended (the &#147;Code&#148;), Treasury Regulations (whether
    final, temporary, or proposed), published rulings of the
    Internal Revenue Service (&#147;IRS&#148;), published
    administrative positions of the IRS, the Convention Between
    Canada and the United States of America with Respect to Taxes on
    Income and on Capital, signed September&#160;26, 1980, as
    amended (the &#147;Canada-U.S.&#160;Tax Convention&#148;), and
    U.S.&#160;court decisions that are applicable and, in each case,
    as in effect and available, as of the date of this Prospectus.
    Any of the authorities on which this summary is based could be
    changed in a material and adverse manner at any time, and any
    such change could be applied on a retroactive basis. This
    summary does not discuss the potential effects, whether adverse
    or beneficial, of any proposed legislation that, if enacted,
    could be applied on a retroactive basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this summary, a &#147;U.S.&#160;Holder&#148; is
    a beneficial owner of Common Shares that, for U.S.&#160;federal
    income tax purposes, is (a)&#160;an individual who is a citizen
    or resident of the U.S., (b)&#160;a corporation, or any other
    entity classified as a corporation for U.S.&#160;federal income
    tax purposes, that is created or organized in or under the laws
    of the U.S.&#160;or any state in the U.S., including the
    District of Columbia, (c)&#160;an estate if the income of such
    estate is subject to U.S.&#160;federal income tax regardless of
    the source of such income, or (d)&#160;a trust if (i)&#160;such
    trust has validly elected to be treated as a U.S.&#160;person
    for U.S.&#160;federal income tax purposes or (ii)&#160;a
    U.S.&#160;court is able to exercise primary supervision over the
    administration of such trust and one or more U.S.&#160;persons
    have the authority to control all substantial decisions of such
    trust.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this summary, a
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;Holder&#148;</FONT>
    is a beneficial owner of Common Shares other than a
    U.S.&#160;Holder. This summary does not address the
    U.S.&#160;federal income tax consequences of the acquisition,
    ownership, and disposition of Common Shares to
    <FONT style="white-space: nowrap">non-U.S.&#160;Holders.</FONT>
    Accordingly, a
    <FONT style="white-space: nowrap">non-U.S.&#160;Holder</FONT>
    should consult its own financial advisor, legal counsel, or
    accountant regarding the U.S.&#160;federal, U.S.&#160;state and
    local, and foreign tax consequences (including the potential
    application of and operation of any tax treaties) of the
    acquisition, ownership, and disposition of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">U.S.
    Holders Subject to Special U.S. Federal Income Tax
    Rules&#160;Not Addressed</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary does not address the U.S.&#160;federal income tax
    consequences of the acquisition, ownership, and disposition of
    Common Shares to U.S.&#160;Holders that are subject to special
    provisions under the Code, including the following
    U.S.&#160;Holders: (a)&#160;U.S.&#160;Holders that are
    tax-exempt organizations, qualified retirement plans, individual
    retirement accounts, or other tax-deferred accounts;
    (b)&#160;U.S.&#160;Holders that are financial institutions,
</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    insurance companies, real estate investment trusts, or regulated
    investment companies; (c)&#160;U.S.&#160;Holders that are
    dealers in securities or currencies or U.S.&#160;Holders that
    are traders in securities that elect to apply a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    accounting method; (d)&#160;U.S.&#160;Holders that have a
    &#147;functional currency&#148; other than the U.S.&#160;dollar;
    (e)&#160;U.S.&#160;Holders that are liable for the alternative
    minimum tax under the Code; (f)&#160;U.S.&#160;Holders that own
    Common Shares as part of a straddle, hedging transaction,
    conversion transaction, constructive sale, or other arrangement
    involving more than one position; (g)&#160;U.S.&#160;Holders
    that acquired Common Shares in connection with the exercise of
    employee stock options or otherwise as compensation for
    services; (h)&#160;U.S.&#160;Holders that hold Common Shares
    other than as a capital asset within the meaning of
    Section&#160;1221 of the Code; or (i)&#160;U.S.&#160;Holders
    that own, directly or indirectly, 10% or more, by voting power
    or value, of our outstanding shares. U.S.&#160;Holders that are
    subject to special provisions under the Code, including
    U.S.&#160;Holders described immediately above, should consult
    their own financial advisor, legal counsel or accountant
    regarding the U.S.&#160;federal, U.S.&#160;state and local, and
    foreign tax consequences of the acquisition, ownership, and
    disposition of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If an entity that is classified as partnership (or
    &#147;pass-through&#148; entity) for U.S.&#160;federal income
    tax purposes holds Common Shares, the U.S.&#160;federal income
    tax consequences to such partnership (or
    &#147;pass-through&#148; entity) and the partners of such
    partnership (or owners of such &#147;pass-through&#148; entity)
    generally will depend on the activities of the partnership (or
    &#147;pass-through&#148; entity) and the status of such partners
    (or owners). Partners of entities that are classified as
    partnerships (or owners of &#147;pass-through&#148; entities)
    for U.S.&#160;federal income tax purposes should consult their
    own financial advisor, legal counsel or accountant regarding the
    U.S.&#160;federal income tax consequences of the acquisition,
    ownership, and disposition of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Tax
    Consequences Other than U.S. Federal Income Tax Consequences Not
    Addressed</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This summary does not address the U.S.&#160;state and local,
    U.S.&#160;federal estate and gift, or foreign tax consequences
    to U.S.&#160;Holders of the acquisition, ownership, and
    disposition of Common Shares. Each U.S.&#160;Holder should
    consult its own financial advisor, legal counsel, or accountant
    regarding the U.S.&#160;state and local, U.S.&#160;federal
    estate and gift, and foreign tax consequences of the
    acquisition, ownership, and disposition of Common Shares. (See
    &#147;Certain Canadian Federal Income Tax Considerations for
    U.S.&#160;Residents&#148; above).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">U.S.
    Federal Income Tax Consequences of the Acquisition, Ownership,
    and Disposition of Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    on Common Shares</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">General
    Taxation of Distributions</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that receives a distribution, including a
    constructive distribution, with respect to the Common Shares
    will be required to include the amount of such distribution in
    gross income as a dividend (without reduction for any Canadian
    income tax withheld from such distribution) to the extent of our
    current or accumulated &#147;earnings and profits&#148;. To the
    extent that a distribution exceeds our current and accumulated
    &#147;earnings and profits&#148;, such distribution will be
    treated (a)&#160;first, as a tax-free return of capital to the
    extent of a U.S.&#160;Holder&#146;s tax basis in the Common
    Shares and, (b)&#160;thereafter, as gain from the sale or
    exchange of such Common Shares. (See more detailed discussion at
    &#147;Disposition of Common Shares&#148; below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Reduced
    Tax Rates for Certain Dividends</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For taxable years beginning before January&#160;1, 2011, a
    dividend paid by the Company generally will be taxed at the
    preferential tax rates applicable to long-term capital gains if
    (a)&#160;we are a &#147;qualified foreign corporation&#148; (as
    defined below), (b)&#160;the U.S.&#160;Holder receiving such
    dividend is an individual, estate, or trust, and (c)&#160;such
    dividend is paid on Common Shares that have been held by such
    U.S.&#160;Holder for at least 61&#160;days during the
    <FONT style="white-space: nowrap">121-day</FONT>
    period beginning 60&#160;days before the &#147;ex-dividend
    date&#148; (<I>i.e.</I>, the first date that a purchaser of such
    Common Shares will not be entitled to receive such dividend).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company generally will be a &#147;qualified foreign
    corporation&#148; under Section&#160;1(h)(11) of the Code (a
    &#147;QFC&#148;) if (a)&#160;the Company is eligible for the
    benefits of the Canada-U.S.&#160;Tax Convention, or (b)&#160;the
    Common Shares are
</DIV>
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    readily tradable on an established securities market in the
    U.S.&#160;However, even if the Company satisfies one or more of
    such requirements, we will not be treated as a QFC if the
    Company is a &#147;passive foreign investment company&#148; (or
    &#147;PFIC&#148;, as defined below) for the taxable year during
    which the Company pays a dividend or for the preceding taxable
    year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As discussed below, the Company believes that it was a PFIC for
    the taxable year ended December&#160;31, 2008. Whether the
    Company will be a PFIC for the taxable year ending
    December&#160;31, 2009 depends on its assets and income over the
    course of such taxable year and, as a result, cannot be
    predicted with certainty as of the date of this Prospectus. (See
    more detailed discussion at &#147;Additional Rules that May
    Apply to U.S.&#160;Holders&#148; below). There can be no
    assurance that the IRS will not challenge the determination made
    by the Company concerning its PFIC status. Accordingly, there
    can be no assurances that the Company will be a QFC for the
    current or any future taxable year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is not a QFC, a dividend paid by the Company to a
    U.S.&#160;Holder, including a U.S.&#160;Holder that is an
    individual, estate, or trust, generally will be taxed at
    ordinary income tax rates (and not at the preferential tax rates
    applicable to long-term capital gains). The dividend rules are
    complex, and each U.S.&#160;Holder should consult its own
    financial advisor, legal counsel, or accountant regarding the
    dividend rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Distributions
    Paid in Foreign Currency</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The amount of a distribution paid to a U.S.&#160;Holder in
    foreign currency generally will be equal to the U.S.&#160;dollar
    value of such distribution based on the exchange rate applicable
    on the date of receipt. A U.S.&#160;Holder that does not convert
    foreign currency received as a distribution into
    U.S.&#160;dollars on the date of receipt generally will have a
    tax basis in such foreign currency equal to the U.S.&#160;dollar
    value of such foreign currency on the date of receipt. Such a
    U.S.&#160;Holder generally will recognize ordinary income or
    loss on the subsequent sale or other taxable disposition of such
    foreign currency (including an exchange for U.S.&#160;dollars).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Dividends
    Received Deduction</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dividends paid on the Common Shares generally will not be
    eligible for the &#147;dividends received deduction.&#148; The
    availability of the dividends received deduction is subject to
    complex limitations that are beyond the scope of this
    discussion, and a U.S.&#160;Holder that is a corporation should
    consult its own financial advisor, legal counsel, or accountant
    regarding the dividends received deduction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Disposition
    of Common Shares</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder will recognize gain or loss on the sale or
    other taxable disposition of Common Shares in an amount equal to
    the difference, if any, between (a)&#160;the amount of cash plus
    the fair market value of any property received and (b)&#160;such
    U.S.&#160;Holder&#146;s tax basis in the Common Shares sold or
    otherwise disposed of. Subject to the passive foreign investment
    company rules discussed below, any such gain or loss generally
    will be capital gain or loss, which will be long-term capital
    gain or loss if the Common Shares are held for more than one
    year. Gain or loss recognized by a U.S.&#160;Holder on the sale
    or other taxable disposition of Common Shares generally will be
    treated as &#147;U.S.&#160;source&#148; for purposes of applying
    the U.S.&#160;foreign tax credit rules, unless the gain is
    subject to tax in Canada and resourced as foreign source gain
    under the provisions of the Canada-U.S.&#160;Tax Convention and
    such U.S.&#160;Holder makes an election under the Code to treat
    such gain as foreign source. (See more detailed discussion at
    &#147;Foreign Tax Credit&#148; below).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Preferential tax rates apply to long-term capital gains of a
    U.S.&#160;Holder that is an individual, estate, or trust. There
    are currently no preferential tax rates for long-term capital
    gains of a U.S.&#160;Holder that is a corporation. Deductions
    for capital losses and net capital losses are subject to complex
    limitations. For a U.S.&#160;Holder that is an individual,
    estate, or trust, capital losses may be used to offset capital
    gains and up to US$3,000 of ordinary income. An unused capital
    loss of a U.S.&#160;Holder that is an individual, estate, or
    trust generally may be carried forward to subsequent taxable
    years, until such net capital loss is exhausted. For a
    U.S.&#160;Holder that is a corporation, capital losses may be
    used to offset capital gains, and an unused capital loss
    generally may be carried back three years and carried forward
    five years from the year in which such net capital loss is
    recognized.
</DIV>
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    <BR>
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<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Foreign
    Tax Credit</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder who pays (whether directly or through
    withholding) Canadian income tax with respect to dividends paid
    on the Common Shares generally will be entitled, at the election
    of such U.S.&#160;Holder, to receive either a deduction or a
    credit for such Canadian income tax paid. Generally, a credit
    will reduce a U.S.&#160;Holder&#146;s U.S.&#160;federal income
    tax liability on a
    <FONT style="white-space: nowrap">dollar-for-dollar</FONT>
    basis, whereas a deduction will reduce a U.S.&#160;Holder&#146;s
    income subject to U.S.&#160;federal income tax. This election is
    made on a
    <FONT style="white-space: nowrap">year-by-year</FONT>
    basis and applies to all foreign taxes paid (whether directly or
    through withholding) by a U.S.&#160;Holder during a year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Complex limitations apply to the foreign tax credit, including
    the general limitation that the credit cannot exceed the
    proportionate share of a U.S.&#160;Holder&#146;s
    U.S.&#160;federal income tax liability that such
    U.S.&#160;Holder&#146;s &#147;foreign source&#148; taxable
    income bears to such U.S.&#160;Holder&#146;s worldwide taxable
    income. In applying this limitation, a U.S.&#160;Holder&#146;s
    various items of income and deduction must be classified, under
    complex rules, as either &#147;foreign source&#148; or
    &#147;U.S.&#160;source.&#148; In addition, this limitation is
    calculated separately with respect to specific categories of
    income. Dividends paid by us generally will constitute
    &#147;foreign source&#148; income and generally will be
    categorized as &#147;passive income.&#148; The foreign tax
    credit rules are complex, and each U.S.&#160;Holder should
    consult its own financial advisor, legal counsel, or accountant
    regarding the foreign tax credit rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Information
    Reporting; Backup Withholding Tax</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Payments made within the U.S., or by a U.S.&#160;payor or
    U.S.&#160;middleman, of dividends on, and proceeds arising from
    certain sales or other taxable dispositions of, Common Shares
    generally will be subject to information reporting and backup
    withholding tax, at the rate of 28%, if a U.S.&#160;Holder
    (a)&#160;fails to furnish such U.S.&#160;Holder&#146;s correct
    U.S.&#160;taxpayer identification number (generally on
    <FONT style="white-space: nowrap">Form&#160;W-9),</FONT>
    (b)&#160;furnishes an incorrect U.S.&#160;taxpayer
    identification number, (c)&#160;is notified by the IRS that such
    U.S.&#160;Holder has previously failed to properly report items
    subject to backup withholding tax, or (d)&#160;fails to certify,
    under penalty of perjury, that such U.S.&#160;Holder has
    furnished its correct U.S.&#160;taxpayer identification number
    and that the IRS has not notified such U.S.&#160;Holder that it
    is subject to backup withholding tax. However, U.S.&#160;Holders
    that are corporations generally are excluded from these
    information reporting and backup withholding tax rules. Any
    amounts withheld under the U.S.&#160;backup withholding tax
    rules will be allowed as a credit against a
    U.S.&#160;Holder&#146;s U.S.&#160;federal income tax liability,
    if any, or will be refunded, if such U.S.&#160;Holder furnishes
    required information to the IRS. Each U.S.&#160;Holder should
    consult its own financial advisor, legal counsel, or accountant
    regarding the information reporting and backup withholding tax
    rules.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Additional
    Rules that May Apply to U.S. Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is a &#147;controlled foreign corporation,&#148;
    or a &#147;passive foreign investment company&#148; (each as
    defined below), the preceding sections of this summary may not
    describe the U.S.&#160;federal income tax consequences to
    U.S.&#160;Holders of the acquisition, ownership, and disposition
    of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Controlled
    Foreign Corporation</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company generally will be a &#147;controlled foreign
    corporation&#148; under Section&#160;957 of the Code (a
    &#147;CFC&#148;) if more than 50% of the total voting power or
    the total value of its outstanding shares are owned, directly or
    indirectly, by citizens or residents of the U.S., domestic
    partnerships, domestic corporations, domestic estates, or
    domestic trusts (each as defined in Section&#160;7701(a)(30) of
    the Code), each of which own, directly or indirectly, 10% or
    more of the total voting power of our outstanding shares (a
    &#147;10% Shareholder&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the Company is a CFC, a 10% Shareholder generally will be
    subject to current U.S.&#160;federal income tax with respect to
    (a)&#160;such 10% Shareholder&#146;s pro rata share of the
    &#147;subpart F income&#148; (as defined in Section&#160;952 of
    the Code) of the Company and (b)&#160;such 10%
    Shareholder&#146;s pro rata share of our earnings invested in
    &#147;United States property&#148; (as defined in
    Section&#160;956 of the Code). In addition, under
    Section&#160;1248 of the Code, any gain recognized on the sale
    or other taxable disposition of Common Shares by a
    U.S.&#160;Holder that was a 10% Shareholder at any time during
    the five-year period ending with such sale or other taxable
    disposition generally will be treated as a dividend to the
    extent of the &#147;earnings and profits&#148; of the Company
    that are attributable to
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    such Common Shares. If the Company is both a CFC and a PFIC (as
    defined below), we generally will be treated as a CFC (and not
    as a PFIC) with respect to any 10% Shareholder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We do not believe that we have previously been, or currently are
    a CFC. However, there can be no assurance that we will not be a
    CFC for the current or any future taxable year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Passive
    Foreign Investment Company</FONT></I></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We generally will be a PFIC under Section&#160;1297 of the Code
    if, for a taxable year, (a)&#160;75% or more of our gross income
    for such taxable year is passive income or (b)&#160;50% or more
    of the assets held by us either produce passive income or are
    held for the production of passive income, based on the fair
    market value of such assets (or on the adjusted tax basis of
    such assets, if we are not publicly traded and either is a
    &#147;controlled foreign corporation&#148; or makes an
    election). &#147;Passive income&#148; includes, for example,
    dividends, interest, certain rents and royalties, certain gains
    from the sale of stock and securities, and certain gains from
    commodities transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of the PFIC income test and asset test described
    above, if we own, directly or indirectly, 25% or more of the
    total value of the outstanding shares of another foreign
    corporation, we will be treated as if it (a)&#160;held a
    proportionate share of the assets of such other foreign
    corporation and (b)&#160;received directly a proportionate share
    of the income of such other foreign corporation. In addition,
    for purposes of the PFIC income test and asset test described
    above, &#147;passive income&#148; does not include any interest,
    dividends, rents, or royalties that are received or accrued by
    us from a &#147;related person&#148; (as defined in
    Section&#160;954(d)(3) of the Code), to the extent such items
    are properly allocable to the income of such related person that
    is not passive income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe that we were a PFIC for the taxable year ended
    December&#160;31, 2008. Whether we will be a PFIC for the
    taxable year ending December&#160;31, 2009 depends on our assets
    and income over the course of the taxable year ending
    December&#160;31, 2009 and, as a result, cannot be predicted
    with certainty as of the date of this Prospectus. In addition,
    there can be no assurance that the IRS will not challenge our
    determination concerning our PFIC status or that we will not be
    a PFIC for the current or any future taxable year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Default
    PFIC Rules&#160;Under Section&#160;1291 of the Code</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we are a PFIC, the U.S.&#160;federal income tax consequences
    to a U.S.&#160;Holder of the acquisition, ownership, and
    disposition of Common Shares will depend on whether such
    U.S.&#160;Holder makes an election to treat the Company as a
    &#147;qualified electing fund&#148; or &#147;QEF&#148; under
    Section&#160;1295 of the Code (a &#147;QEF Election&#148;) or a
    <FONT style="white-space: nowrap">mark-to-market</FONT>
    election under Section&#160;1296 of the Code (a
    <FONT style="white-space: nowrap">&#147;Mark-to-Market</FONT>
    Election&#148;). A U.S.&#160;Holder that does not make either a
    QEF Election or a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will be referred to in this summary as a
    &#147;Non-Electing U.S.&#160;Holder.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Non-Electing U.S.&#160;Holder will be subject to the rules of
    Section&#160;1291 of the Code with respect to (a)&#160;any gain
    recognized on the sale or other taxable disposition of Common
    Shares and (b)&#160;any excess distribution paid on the Common
    Shares. A distribution generally will be an &#147;excess
    distribution&#148; to the extent that such distribution
    (together with all other distributions received in the current
    taxable year) exceeds 125% of the average distributions received
    during the three preceding taxable years (or during a
    U.S.&#160;Holder&#146;s holding period for the Common Shares, if
    shorter).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under Section&#160;1291 of the Code, any gain recognized on the
    sale or other taxable disposition of Common Shares, and any
    excess distribution paid on the Common Shares, must be rateably
    allocated to each day in a Non-Electing U.S.&#160;Holder&#146;s
    holding period for the Common Shares. The amount of any such
    gain or excess distribution allocated to prior years of such
    Non-Electing U.S.&#160;Holder&#146;s holding period for the
    Common Shares (other than years prior to the first taxable year
    of the Company during such Non-Electing U.S.&#160;Holder&#146;s
    holding period and beginning after December&#160;31, 1986 for
    which we was not a PFIC) will be subject to U.S.&#160;federal
    income tax at the highest tax applicable to ordinary income in
    each such prior year. A Non-Electing U.S.&#160;Holder will be
    required to pay interest on the resulting tax liability for each
    such prior year, calculated as if such tax liability had been
    due in each such prior year. Such a Non-Electing
    U.S.&#160;Holder that is not a corporation must treat any such
    interest paid as &#147;personal interest,&#148; which is not
    deductible. The amount of any such gain or excess distribution
    allocated to
</DIV>
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    <BR>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the current year of such Non-Electing U.S.&#160;Holder&#146;s
    holding period for the Common Shares will be treated as ordinary
    income in the current year, and no interest charge will be
    incurred with respect to the resulting tax liability for the
    current year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we are a PFIC for any taxable year during which a
    Non-Electing U.S.&#160;Holder holds Common Shares, we will
    continue to be treated as a PFIC with respect to such
    Non-Electing U.S.&#160;Holder, regardless of whether we cease to
    be a PFIC in one or more subsequent years. A Non-Electing
    U.S.&#160;Holder may terminate this deemed PFIC status by
    electing to recognize gain (which will be taxed under the rules
    of Section&#160;1291 of the Code discussed above) as if such
    Common Shares were sold on the last day of the last taxable year
    for which the Company was a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">QEF
    Election</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a QEF Election generally will not
    be subject to the rules of Section&#160;1291 of the Code
    discussed above. However, a U.S.&#160;Holder that makes a QEF
    Election will be subject to U.S.&#160;federal income tax on such
    U.S.&#160;Holder&#146;s pro rata share of (a)&#160;the net
    capital gain of the Company, which will be taxed as long-term
    capital gain to such U.S.&#160;Holder, and (b)&#160;and the
    ordinary earnings of the Company, which will be taxed as
    ordinary income to such U.S.&#160;Holder. Generally, &#147;net
    capital gain&#148; is the excess of (a)&#160;net long-term
    capital gain over (b)&#160;net short-term capital loss, and
    &#147;ordinary earnings&#148; are the excess of
    (a)&#160;&#147;earnings and profits&#148; over (b)&#160;net
    capital gain. A U.S.&#160;Holder that makes a QEF Election will
    be subject to U.S.&#160;federal income tax on such amounts for
    each taxable year in which we are a PFIC, regardless of whether
    such amounts are actually distributed to such U.S.&#160;Holder
    by us. However, a U.S.&#160;Holder that makes a QEF Election
    may, subject to certain limitations, elect to defer payment of
    current U.S.&#160;federal income tax on such amounts, subject to
    an interest charge. If such U.S.&#160;Holder is not a
    corporation, any such interest paid will be treated as
    &#147;personal interest,&#148; which is not deductible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a QEF Election generally also
    (a)&#160;may receive a tax-free distribution from us to the
    extent that such distribution represents &#147;earnings and
    profits&#148; of the Company that were previously included in
    income by the U.S.&#160;Holder because of such QEF Election and
    (b)&#160;will adjust such U.S.&#160;Holder&#146;s tax basis in
    the Common Shares to reflect the amount included in income or
    allowed as a tax-free distribution because of such QEF Election.
    In addition, a U.S.&#160;Holder that makes a QEF Election
    generally will recognize capital gain or loss on the sale or
    other taxable disposition of Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The procedure for making a QEF Election, and the
    U.S.&#160;federal income tax consequences of making a QEF
    Election, will depend on whether such QEF Election is timely. A
    QEF Election will be treated as &#147;timely&#148; if such QEF
    Election is made for the first year in the
    U.S.&#160;Holder&#146;s holding period for the Common Shares in
    which we were a PFIC. A U.S.&#160;Holder may make a timely QEF
    Election by filing the appropriate QEF Election documents at the
    time such U.S.&#160;Holder files a U.S.&#160;federal income tax
    return for such first year. However, if we were a PFIC in a
    prior year, then in addition to filing the QEF Election
    documents, a U.S.&#160;Holder must elect to recognize (a)&#160;a
    gain (which will be taxed under the rules of Section&#160;1291
    of the Code discussed above) as if the Common Shares were sold
    on the qualification date or (b)&#160;if we were also a CFC,
    such U.S.&#160;Holder&#146;s pro rata share of the post-1986
    &#147;earnings and profits&#148; of the Company as of the
    qualification date. The &#147;qualification date&#148; is the
    first day of the first taxable year in which we were a QEF with
    respect to such U.S.&#160;Holder. The election to recognize such
    gain or &#147;earnings and profits&#148; can only be made if
    such U.S.&#160;Holder&#146;s holding period for the Common
    Shares includes the qualification date. By electing to recognize
    such gain or &#147;earnings and profits,&#148; such
    U.S.&#160;Holder will be deemed to have made a timely QEF
    Election. In addition, under very limited circumstances, a
    U.S.&#160;Holder may make a retroactive QEF Election if such
    U.S.&#160;Holder failed to file the QEF Election documents in a
    timely manner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A QEF Election will apply to the taxable year for which such QEF
    Election is made and to all subsequent taxable years, unless
    such QEF Election is invalidated or terminated or the IRS
    consents to revocation of such QEF Election. If a
    U.S.&#160;Holder makes a QEF Election and, in a subsequent
    taxable year, we cease to be a PFIC, the QEF Election will
    remain in effect (although it will not be applicable) during
    those taxable years in which we are not a PFIC. Accordingly, if
    we become a PFIC in another subsequent taxable year, the QEF
    Election will be effective and the U.S.&#160;Holder will be
    subject to the QEF rules described above during any such
    subsequent taxable year in which we qualify as a PFIC. In
    addition, the QEF Election will remain in effect (although it
    will
</DIV>
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    50
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    not be applicable) with respect to a U.S.&#160;Holder even after
    such U.S.&#160;Holder disposes of all of such
    U.S.&#160;Holder&#146;s direct and indirect interest in the
    Common Shares. Accordingly, if such U.S.&#160;Holder reacquires
    an interest in the Company, such U.S.&#160;Holder will be
    subject to the QEF rules described above for each taxable year
    in which we are a PFIC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each U.S.&#160;Holder should consult its own financial advisor,
    legal counsel, or accountant regarding the availability of, and
    procedure for making, a QEF Election. U.S.&#160;Holders should
    be aware that there can be no assurance that we will satisfy
    record keeping requirements that apply to a QEF, or that we will
    supply U.S.&#160;Holders with information that such
    U.S.&#160;Holders require to report under the QEF rules, in
    event that we are a PFIC and a U.S.&#160;Holder wishes to make a
    QEF Election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times"><FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder may make a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election only if the Common Shares are marketable stock. The
    Common Shares generally will be &#147;marketable stock&#148; if
    the Common Shares are regularly traded on (a)&#160;a national
    securities exchange that is registered with the Securities and
    Exchange Commission, (b)&#160;the national market system
    established pursuant to section&#160;11A of the Exchange Act, or
    (c)&#160;a foreign securities exchange that is regulated or
    supervised by a governmental authority of the country in which
    the market is located, provided that (i)&#160;such foreign
    exchange has trading volume, listing, financial disclosure, and
    other requirements and the laws of the country in which such
    foreign exchange is located, together with the rules of such
    foreign exchange, ensure that such requirements are actually
    enforced and (ii)&#160;the rules of such foreign exchange ensure
    active trading of listed stocks.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election generally will not be subject to the rules of
    Section&#160;1291 of the Code discussed above. However, if a
    U.S.&#160;Holder makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election after the beginning of such U.S.&#160;Holder&#146;s
    holding period for the Common Shares and such U.S.&#160;Holder
    has not made a timely QEF Election, the rules of
    Section&#160;1291 of the Code discussed above will apply to
    certain dispositions of, and distributions on, the Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will include in ordinary income, for each taxable year
    in which we are a PFIC, an amount equal to the excess, if any,
    of (a)&#160;the fair market value of the Common Shares as of the
    close of such taxable year over (b)&#160;such
    U.S.&#160;Holder&#146;s tax basis in such Common Shares. A
    U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will be allowed a deduction in an amount equal to the
    lesser of (a)&#160;the excess, if any, of (i)&#160;such
    U.S.&#160;Holder&#146;s adjusted tax basis in the Common Shares
    over (ii)&#160;the fair market value of such Common Shares as of
    the close of such taxable year or (b)&#160;the excess, if any,
    of (i)&#160;the amount included in ordinary income because of
    such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election for prior taxable years over (ii)&#160;the amount
    allowed as a deduction because of such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election for prior taxable years.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election generally also will adjust such U.S.&#160;Holder&#146;s
    tax basis in the Common Shares to reflect the amount included in
    gross income or allowed as a deduction because of such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election. In addition, upon a sale or other taxable disposition
    of Common Shares, a U.S.&#160;Holder that makes a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election will recognize ordinary income or loss (not to exceed
    the excess, if any, of (a)&#160;the amount included in ordinary
    income because of such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election for prior taxable years over (b)&#160;the amount
    allowed as a deduction because of such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election for prior taxable years).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election applies to the taxable year in which such
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election is made and to each subsequent taxable year, unless the
    Common Shares cease to be &#147;marketable stock&#148; or the
    IRS consents to revocation of such election. Each
    U.S.&#160;Holder should consult its own financial advisor, legal
    counsel, or accountant regarding the availability of, and
    procedure for making, a
    <FONT style="white-space: nowrap">Mark-to-Market</FONT>
    Election.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <I><FONT style="font-family: 'Times New Roman', Times">Other
    PFIC Rules</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under Section&#160;1291(f) of the Code, the IRS has issued
    proposed Treasury Regulations that, subject to certain
    exceptions, would cause a U.S.&#160;Holder that had not made a
    timely QEF Election to recognize gain (but not loss) upon
    certain transfers of Common Shares that would otherwise be
    tax-deferred (<I>e.g.</I>, gifts and exchanges
</DIV>
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<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    51
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    pursuant to corporate reorganizations). However, the specific
    U.S.&#160;federal income tax consequences to a U.S.&#160;Holder
    may vary based on the manner in which Common Shares are
    transferred.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain additional adverse rules will apply with respect to a
    U.S.&#160;Holder if we are a PFIC, regardless of whether such
    U.S.&#160;Holder makes a QEF Election. For example under
    Section&#160;1298(b)(6) of the Code, a U.S.&#160;Holder that
    uses Common Shares as security for a loan will, except as may be
    provided in Treasury Regulations, be treated as having made a
    taxable disposition of such Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The PFIC rules are complex, and each U.S.&#160;Holder should
    consult its own financial advisor, legal counsel, or accountant
    regarding the PFIC rules and how the PFIC rules may affect the
    U.S.&#160;federal income tax consequences of the acquisition,
    ownership, and disposition of Common Shares
</DIV>

<A name='D81345140'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">INTERESTS
    OF NAMED EXPERTS AND COUNSEL</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    None.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">TRANSFER
    AGENT AND REGISTRAR</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our registrar and transfer agent for our common shares is
    Computershare Investor Services Inc. at its principal offices in
    Vancouver and Toronto, Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    MATTERS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The law firms of Macdonald&#160;&#038; Company, Borden Ladner
    Gervais LLP and Dorsey&#160;&#038; Whitney LLP, have acted as
    the Company&#146;s counsel by providing opinions on the validity
    of the securities offered in this Prospectus and applicable
    Prospectus Supplements and counsel named in the applicable
    Prospectus Supplement will pass upon legal matters for any
    underwriters, dealers or agents. Certain legal matters related
    to the Securities offered by this Prospectus will be passed upon
    on the Company&#146;s behalf by Borden Ladner Gervais LLP, with
    respect to matters of Canadian law, and Dorsey&#160;&#038;
    Whitney LLP, with respect to matters of United States law.
</DIV>

<A name='D81345141'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Information relating to the Company&#146;s mineral properties in
    this Prospectus and the documents incorporated by reference
    herein has been derived from reports, statements or opinions
    prepared or certified by SRK Consulting (US), Inc., Golder
    Associates Inc., Gustavson Associates, LLC, Resource Development
    Inc., MWH Australia Pty Ltd., MWH Americas, Inc., Tetra Tech MM,
    Inc., Pincock, Allen&#160;&#038; Holt, Mine Development
    Associates Inc., and this information has been included in
    reliance on such companies expertise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    None of SRK Consulting (US), Inc., Golder Associates Inc.,
    Gustavson Associates, LLC, Resource Development Inc., MWH
    Australia Pty Ltd., MWH Americas, Inc., Tetra Tech MM, Inc.,
    Pincock, Allen&#160;&#038; Holt, Mine Development Associates
    Inc., each being companies who have prepared or certified the
    preparation of reports, statements or opinions relating to the
    Company&#146;s mineral properties, or any director, officer,
    employee or partner thereof, as applicable, received or has
    received a direct or indirect interest in the property of the
    Company or of any associate or affiliate of the Company. As at
    the date hereof, the aforementioned persons, companies and
    persons at the companies specified above who participated in the
    preparation of such reports, statements or opinions, as a group,
    beneficially own, directly or indirectly, less than 1% of the
    Company&#146;s outstanding Common Shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our consolidated financial statements as of December&#160;31,
    2008 and 2007, and for the years ended December&#160;31, 2008,
    2007, and 2006, have been incorporated by reference herein in
    reliance upon the report of PricewaterhouseCoopers, LLP
    independent registered public accounting firm, given upon the
    authority of that firm as experts in accounting and auditing.
</DIV>
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    <BR>
    52
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<A name='D81345142'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Company files annual, quarterly and current reports, proxy
    statements and other information with the SEC. Our SEC filings
    are available to the public over the Internet at the SEC&#146;s
    web site at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This Prospectus is part of a registration statement and, as
    permitted by SEC rules, does not contain all of the information
    included in the registration statement. Whenever a reference is
    made in this Prospectus to any of our contracts or other
    documents, the reference may not be complete and, for a copy of
    the contract or document, you should refer to the exhibits that
    are part of the registration statement. You may call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for more information on the public reference rooms and their
    copy charges. You may also read and copy any document we file
    with the SEC at the SEC&#146;s public reference rooms at:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: 'Times New Roman', Times">100&#160;F&#160;Street,
    N.E. <BR>
    Room&#160;1580 <BR>
    Washington,&#160;D.C. 20549
    </FONT>
</DIV>
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    <BR>
    53
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#D81345tocpage">Table of Contents</A></H5><P>

<DIV style="width: 86%; margin-left: 7%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="d81345d8134500.gif" alt="(VISTA GOLD LOGO)">
</DIV>

<DIV style="margin-top: 20pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
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&nbsp;
</DIV>
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&nbsp;
</DIV>
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&nbsp;
</DIV>
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&nbsp;
</DIV>
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&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
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&nbsp;
</DIV>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 48%; border-bottom: 1pt solid #000000"></CENTER>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>PROSPECTUS SUPPLEMENT</B>
</DIV>

<CENTER style="font-size: 1pt; width: 48%; border-bottom: 1pt solid #000000"></CENTER>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
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&nbsp;
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&nbsp;
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&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
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&nbsp;
</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
&nbsp;
</DIV>
<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
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<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Sole Bookrunner&#160;&#038; Co-Lead Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="top">
    <B>Co-Lead Underwriter</B>
</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B><FONT style="font-size: 14pt">Griffiths McBurney
    Corp.</FONT></B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="top">
    <B><FONT style="font-size: 14pt">Wellington West Capital<BR>
    Markets (U.S.A) Inc.</FONT></B><FONT style="font-size: 14pt">
    </FONT>
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
<DIV style="margin-top: 6pt; font-size: 1pt">
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>April&#160;12, 2011</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
