Issue share purchase warrants for flow-through common shares in a Canadian oil and gas company under the terms of this comprehensive Warrant Indenture.

Canadian exploration and mining companies are able to issue flow-through shares at a premium because investors are considered to be funding exploration and development costs and are therefore entitled to deduct these expenses from all other income.

Provisions of the Warrant Indenture include:

• Tax deductions and credits, normally available only to a corporation, are given to the holders of the flow-through shares.


• Warrants are issued on a one-for-one basis, one warrant entitling the holder to purchase one common share of the corporation.


• If the corporation's shares are subdivided or consolidated, the exercise price for the Warrants will be adjusted accordingly.


• The trustee is responsible for recording details of all warrants exercised, and accounting for all funds received for the purchase of shares.


• The indenture contains provisions for supplemental indentures.

This Canadian Warrant Indenture for Flow-Through Shares is provided in MS Word format, and is fully editable to meet your needs.