MINBOS RESOURCES LIMITED - Capital/Financing Update 2010

TERMS AND CONDITIONS OF BROKER OPTIONS

The Broker Options entitle the holder to subscribe for Shares on the following terms and conditions:

(a) Each Broker Option gives the Optionholder the right to subscribe for one Share. To obtain the right given by each Broker Option, the Optionholder must exercise the Broker Options in accordance with the terms and conditions of the Broker Options.
(b) The Broker Options will expire at 5:00 pm (WST) on 3 years from the date of issue (Expiry Date). Any Broker Option not exercised before the Expiry Date will automatically lapse on the Expiry Date.
(c) The amount payable upon exercise of each Broker Option will be $0.20 (Exercise Price).
(d) The Broker Options held by each Optionholder may be exercised in whole or in part, and if exercised in part, multiples of 1,000 must be exercised on each occasion.
(e) An Optionholder may exercise their Broker Options by lodging with the Company, before the Expiry Date:
(i) a written notice of exercise of Broker Options specifying the number of Broker Options being exercised; and
(ii) a cheque or electronic funds transfer for the Exercise Price for the number of Broker Options being exercised;

(f) An Exercise Notice is only effective when the Company has received the full amount of the Exercise Price in cleared funds.
(g) Within 10 Business Days of receipt of the Exercise Notice accompanied by the Exercise Price, the Company will allot the number of Shares required under these terms and conditions in respect of the number of Broker Options specified in the Exercise Notice.
(h) The Broker Options are freely transferable.
(i) All Shares allotted upon the exercise of Broker Options will upon allotment rank pari passu in all respects with other Shares.
(j) The Company will not apply for quotation of the Broker Options on ASX.
(k) If at any time the issued capital of the Company is reconstructed, all rights of an Optionholder are to be changed in a manner consistent with the Corporations Act at the time of the reconstruction.
(l) There are no participating rights or entitlements inherent in the Broker Options and Optionholders will not be entitled to participate in new issues of capital offered to Shareholders during the currency of the Broker Options. However, the Company will ensure that for the purposes of determining entitlements to any such issue, the record date will be at least 6 Business Days after the issue is announced. This will give Optionholders the opportunity to exercise their Broker

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Options prior to the date for determining entitlements to participate in any such issue.

(m) A Broker Option does not confer the right to a change in exercise price or a change in the number of underlying securities over which the Broker Option can be exercised.

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