Nevada Silver : Scheme Implementation Agreement

EXECUTION VERSION

Scheme Implementation Agreement

Dated December 31, 2020

NBS Capital Inc. ("NBS")

Electric Metals (USA) Limited ("EML") (ACN 635 062 850)

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	TABLE OF CONTENTS
1.	DEFINITIONS AND INTERPRETATION.............................................................	7
1.1	Definitions.................................................................................................................	7
1.2	General Interpretation...........................................................................................	18
1.3	Inconsistent agreements ......................................................................................	19
2.	AGREEMENT TO PROPOSE AND IMPLEMENT SCHEME ........................	19
2.1	Agreement Effective Date ....................................................................................	19
2.2	EML to propose Scheme .....................................................................................	19
2.3	NBS .........................................................................................................................	19
2.4	Agreement to implement Scheme ......................................................................	19
3.	CONDITIONS PRECEDENT...............................................................................	19
3.1	Conditions Precedent ...........................................................................................	19
3.2	Reasonable endeavours ......................................................................................	22
3.3	Waiver of Conditions Precedent .........................................................................	23
3.4	Notices in relation to Conditions Precedent ......................................................	23
3.5	Consultation on failure of Condition Precedent ................................................	24
3.6	Failure to agree .....................................................................................................	24
4.	OUTLINE OF SCHEME .......................................................................................	25
4.1	Scheme...................................................................................................................	25
4.2	Scheme Consideration .........................................................................................	25
4.3	Share Consolidation .............................................................................................	25
4.4	Issue of NBS Shares ............................................................................................	25
5.	IMPLEMENTATION..............................................................................................	27
5.1	General obligations ...............................................................................................	27
5.2	EML's obligations ..................................................................................................	28
5.3	NBS's obligations ..................................................................................................	31
5.4	Scheme Booklet responsibility statement .........................................................	33
5.5	Verification..............................................................................................................	33
5.6	Conduct of Court proceeding ..............................................................................	33
5.7	Appeal process ......................................................................................................	33
5.8	No partnership or joint venture............................................................................	34
6.	BOARD RECOMMENDATION ...........................................................................	34
6.1	Best endeavours EML ..........................................................................................	34
6.2	Best endeavours NBS ..........................................................................................	34
7.	DIRECTORS AND EMPLOYEES.......................................................................	35
7.1	Release of EML and EML directors and officers..............................................	35
7.2	Release of NBS and NBS directors and officers..............................................	35

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7.3	Benefit for NBS Indemnified Parties...................................................................	35
7.4	Benefit for EML Indemnified Parties...................................................................	35
7.5	Directors .................................................................................................................	35
8.	CONDUCT OF BUSINESS .................................................................................	36
8.1	Overview.................................................................................................................	36
8.2	Specific obligations ...............................................................................................	36
8.3	Prohibited actions..................................................................................................	37
8.4	Exceptions to conduct of business provisions ..................................................	38
9.	EXCLUSIVITY .......................................................................................................	38
9.1	No existing discussions ........................................................................................	38
9.2	No-shop ..................................................................................................................	38
9.3	No-talk.....................................................................................................................	39
9.4	Due diligence information ....................................................................................	39
9.5	Exceptions ..............................................................................................................	39
9.6	Further Exception ..................................................................................................	40
9.7	Notice of Unsolicited Approach ...........................................................................	40
10.	REIMBURSEMENT FEE .....................................................................................	40
10.1	EML Payment of Reimbursement Fee...............................................................	40
10.2	NBS Payment of Reimbursement Fee...............................................................	41
10.3	No amount payable if Scheme becomes Effective ..........................................	42
10.4	Timing of payment.................................................................................................	42
10.5	Nature of payment.................................................................................................	43
10.6	Reduction in amount payable..............................................................................	43
10.7	Limitation of liability...............................................................................................	44
10.8	Compliance with law .............................................................................................	44
11.	REPRESENTATIONS AND WARRANTIES.....................................................	44
11.1	NBS's representations and warranties ..............................................................	44
11.2	EML's representations and warranties ..............................................................	47
11.3	NBS indemnity .......................................................................................................	53
11.4	EML's indemnity ....................................................................................................	53
11.5	No other warranties or reliance ...........................................................................	53
12.	TERMINATION......................................................................................................	53
12.1	Termination events ...............................................................................................	53
12.2	Termination ............................................................................................................	54
12.3	Effect of Termination.............................................................................................	54
12.4	Damages ................................................................................................................	54
13.	PUBLIC ANNOUNCEMENTS .............................................................................	54

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13.1	Required disclosure ..............................................................................................	54
13.2	Other announcements ..........................................................................................	55
13.3	Statements on termination ...................................................................................	55
14.	CONFIDENTIAL INFORMATION .......................................................................	55
14.1	Confidential Information .......................................................................................	55
15.	NOTICES AND OTHER COMMUNICATIONS.................................................	55
15.1	Form ........................................................................................................................	55
15.2	Delivery ...................................................................................................................	56
15.3	When effective .......................................................................................................	56
15.4	When taken to be received ..................................................................................	56
15.5	Receipt outside business hours ..........................................................................	56
16.	GST .........................................................................................................................	57
16.1	Definitions and interpretation...............................................................................	57
16.2	GST exclusive........................................................................................................	57
16.3	Payment of GST ....................................................................................................	57
16.4	Adjustment events.................................................................................................	57
16.5	Reimbursements ...................................................................................................	58
17.	COSTS....................................................................................................................	58
17.1	Costs .......................................................................................................................	58
18.	GENERAL ..............................................................................................................	58
18.1	Variation and waiver .............................................................................................	58
18.2	Consents, approvals or waivers..........................................................................	58
18.3	Discretion in exercising rights .............................................................................	58
18.4	Partial exercising of rights....................................................................................	58
18.5	Conflict of interest .................................................................................................	58
18.6	Remedies cumulative ...........................................................................................	59
18.7	Indemnities and reimbursement obligations .....................................................	59
18.8	Inconsistent law .....................................................................................................	59
18.9	Supervening law ....................................................................................................	59
18.10	Counterparts ..........................................................................................................	59
18.11	Entire agreement...................................................................................................	59
18.12	Further steps ..........................................................................................................	60
18.13	No liability for loss .................................................................................................	60
18.14	Severability.............................................................................................................	60
18.15	Rules of construction ............................................................................................	60
18.16	Assignment.............................................................................................................	60
18.17	Enforceability .........................................................................................................	60

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18.18	No representation or reliance ..............................................................................	61
19.	GOVERNING LAW ...............................................................................................	61
19.1	Governing law and jurisdiction ............................................................................	61
19.2	Serving documents ...............................................................................................	61
SCHEDULE 1 TIMETABLE .................................................................................................	63