NEITHER THIS WARRANT NOR THE WARRANT SHARES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”) OR ANY OTHER APPLICABLE SECURITIES LAWS IN RELIANCE UPON AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
OTHER SECURITIES LAWS. NEITHER THIS WARRANT NOR THE SHARES OF WARRANT
STOCK ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD, PLEDGED, TRANSFERRED,
ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION WHICH IS
EXEMPT FROM REGISTRATION UNDER THE PROVISIONS OF THE SECURITIES ACT.
CHANCELLOR GROUP, INC.
Common Stock Purchase Warrant
(Expiring on December 31, 2014)
This is to certify that, for value received and subject to the conditions herein set forth, Koala Pictures Proprietary
Ltd. (the "Warrantholder") is entitled to purchase, at a price per share of Two Cents ($0.025) per share, One
Million (1,000,000) shares of common stock, par value $0.001 per share (the "Common Stock"), of Chancellor
Group Inc., a Nevada corporation (the "Company"), subject to adjustment as provided below (such shares
purchasable upon exercise of this Warrant are herein called the "Warrant Stock"). The amount per share
specified above, as adjusted from time to time pursuant to the provisions hereinafter set forth, is herein called the
"Purchase Price." This Warrant will be immediately exercisable and may be exercised anytime after its
issuance. In the event of a exercise of this Warrant, the Warrantholder shall surrender this Warrant to the
Company with payment of the Purchase Price, together with a notice of exercise (the date of such surrender
being herein referred to as the “Date of Exercise”), in which event the Company shall issue to the Warrantholder
the number of shares of Warrant Stock.
1. By acceptance of this Warrant, the Warrantholder agrees, for itself and all subsequent holders, that