$850,000 November 12, 2009
FOR VALUE RECEIVED , the undersigned, Bontan Corporation, Inc ., an Ontario corporation (“Maker”),
having an address of 47 Avenue Road, Suite 200, promises to pay to the order of Castle Rock Resources, II
LLc , a Colorado limited liability company (“Payee”), with an address of 7705 Buffalo Trail, Castle Rock, CO,
80108 the sum of EIGHT HUNDRED FIFTY THOUSAND DOLLARS ($850,000) (the “Principal Sum”),
together with interest on the unpaid Principal Sum at a rate of 10% per annum , compounded annually. The
entire unpaid Principal Sum together with any and all accrued and unpaid interest hereunder shall be due and
payable on or before November 12, 2010 (“Maturity”).
All interest hereunder shall be calculated on the basis of a 365-day year, actual days elapsed.
This Note may be prepaid, either in whole or in part, at any time without premium or penalty and without the
consent of Payee.
Maker shall make all payments due under the terms of this Note to Payee at the above address or at such other
place as may be designated to Maker in writing by Payee.
As an inducement for Payee to loan the Maker the Principal Sum, the Maker agrees to convey to the Payee a
Warrant for 1,000,000 common shares, an exercise price of $.35 per share in the form attached hereto Schedule
A. All Shares issuable hereunder shall, prior to such issuance, be registered by the Company pursuant to an
effective registration statement (the “Registration Statement”) filed with the United States Securities and Exchange
Commission (the “SEC”). No later than sixty (60) days following the Date of Issuance, the Company shall file a
Registration Statement with the SEC covering the maximum number of Shares issuable hereunder. To the extent
that any Shares issuable hereunder are not otherwise covered by an effective Registration Statement, the
Company agrees that