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Anacortes Mining Corp. — AGM Information 2021
Aug 13, 2021
47725_rns_2021-08-12_795d7b4e-fe00-452f-ad3e-b4b535da1ba8.pdf
AGM Information
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FIRST�LIGHT�CAPITAL�CORP.�
NOTICE�OF�ANNUAL�GENERAL�AND�SPECIAL�MEETING�OF�SHAREHOLDERS� TO�BE�HELD�ON�SEPTEMBER�8,�2021�
AND�
INFORMATION�CIRCULAR
August�9,�2021�
This�document�requires�immediate�attention.��If�you�are�in�doubt�as�to�how�to�deal�with�the� documents�or�matters�referred�to�in�this�notice�and�information�circular,�you�should� immediately�contact�your�advisor.�
FIRST�LIGHT�CAPITAL�CORP.� Suite�1090�–�510�Burrard�Street� Vancouver,�BC��V6C�3B9� Telephone:�604.569.2209�
NOTICE�OF�ANNUAL�GENERAL�AND�SPECIAL�MEETING�
TO�THE�SHAREHOLDERS:�
NOTICE�IS�HEREBY�GIVEN�that�the�Annual�General�and�Special�meeting�(the�“ Meeting ”)�of�shareholders�of�First� Light�Capital�Corp.�(the�“ Company ”)�will�be�held�at�the�offices�of�Clark�Wilson�LLP,�900�–�885�West�Georgia�Street,� Vancouver,�BC��V6C�3H1,�on�Wednesday,�September�8,�2021,�at�the�hour�of�10:00�a.m.�(Vancouver�time)�for�the� following�purposes:�
-
(1) to�receive�the�audited�financial�statements�of�the�Company�for�the�fiscal�year�ended�December�31,�2020� and�the�accompanying�report�of�the�auditor;�
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(2) to�set�the�number�of�directors�of�the�Company�at�five�(5);�
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(3) to�elect�James�Currie,�Andrew�Carstensen,�Barry�Hildred,�Brian�Storseth�and�K.�Wayne�Livingstone�as� directors�of�the�Company,�such�election�being�effective�upon�completion�of�the�transactions�(together,� the�“ Transaction ”)�contemplated�by�the�arrangement�agreement�dated�June�16,�2021�(the�“ Arrangement� Agreement ”)�among�the�Company,�1310612�B.C.�Ltd.�(“ Finco ”),�1310620�B.C.�Ltd.�(“ Subco ”)�and�New� Oroperu�Resources�Inc.�(“ New�Oroperu ”)�and�the�amalgamation�agreement�dated�June�16,�2021,�among� the�Company,�Finco�and�Subco;�
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(4) to�confirm�that�the�Company’s�three�current�directors���James�Currie,�Neil�Currie�and�Benjamin�Curry�–� shall�continue�to�serve�as�the�directors�of�the�Company�until,�and�their�term�as�directors�shall�expire� upon,�the�earlier�of�(i)�the�completion�of�the�Transaction�and�(ii)�the�appointment�or�election�of�their� successors;�
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(5) to�appoint�Manning�Elliott�LLP�as�the�auditors�of�the�Company�for�the�fiscal�year�ending� December�31,�2021�and�to�authorize�the�directors�of�the�Company�to�fix�the�remuneration�to�be�paid�to� the�auditors�for�the�fiscal�year�ending�December�31,�2021;�
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(6) to�consider,�and�if�thought�appropriate,�to�pass�an�ordinary�resolution�to�adopt�and�approve�a�new� amended�and�restated�omnibus�equity�incentive�compensation�plan,�as�more�particularly�described�in�the� accompanying�information�circular�(the�“ Information�Circular ”);�
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(7) to�consider�and,�if�thought�appropriate,�pass,�with�or�without�variation,�an�ordinary�resolution�approving� the�consolidation�of�the�issued�and�outstanding�common�shares�in�the�capital�of�the�Company� (the�“ Shares ”)�on�the�basis�of�one�(1)�post�consolidation�Share�for�every�six�(6)�pre�consolidation�Shares,� as�more�particularly�described�in�the�Information�Circular�and�the�Arrangement�Agreement� (the�“ Consolidation ”);�
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(8) to�consider�and,�if�thought�appropriate,�pass,�with�or�without�variation,�an�ordinary�resolution�authorizing� the�Company’s�change�of�name�from�“First�Light�Capital�Corp.”�to�“Anacortes�Mining�Corporation”�or�such� other�name�as�the�directors�may,�in�their�sole�discretion�determine�(the�“ Change�of�Name ”),�and�to� authorize�the�Company�to�file�a�notice�of�alteration�with�the�British�Columbia�Corporate�Registry�to�effect� such�Change�of�Name,�which�shall�take�effect�when�the�Company’s�notice�of�articles�has�been�altered�to� reflect�the�Change�of�Name,�as�more�particularly�described�in�the�Information�Circular�and�the� Arrangement�Agreement;�and�
��2���
- (9) to�transact�such�further�or�other�business�as�may�properly�come�before�the�Meeting�and�any� adjournment�or�postponement�thereof.�
The�accompanying�Information�Circular�provides�additional�information�relating�to�the�matters�to�be�dealt�with�at�the� Meeting�and�is�supplemental�to,�and�expressly�made�a�part�of,�this�Notice�of�Annual�General�and�Special�Meeting� (this�“ Notice�of�Meeting ”).�
The�board�of�directors�of�the�Company�has�fixed�July�30,�2021�as�the�record�date�for�the�determination�of�shareholders� entitled�to�notice�of�and�to�vote�at�the�Meeting�and�at�any�adjournment�or�postponement�thereof.��Each�registered� shareholder�at�the�close�of�business�on�that�date�is�entitled�to�such�notice�and�to�vote�at�the�Meeting�in�the� circumstances�set�out�in�the�accompanying�Information�Circular.�
If�you�are�a�registered�shareholder�of�the�Company�and�unable�to�attend�the�Meeting�in�person,�please�vote�by�proxy� by�following�the�instructions�provided�in�the�form�of�proxy�at�least�48�hours�(excluding�Saturdays,�Sundays�and�holidays� recognized�in�the�Province�of�British�Columbia)�before�the�time�and�date�of�the�Meeting�or�any�adjournment�or� postponement�thereof.�
In�view�of�COVID�19,�the�Company�encourages�Shareholders�not�to�attend�the�Meeting�in�person.�No�more�than� 10�persons�will�be�permitted�to�attend�in�person�at�the�in�person�location�for�the�Meeting.�The�Company�may� take�additional�precautionary�measures�in�relation�to�the�Meeting�in�response�to�further�developments�in�the� COVID�19�outbreak.�As�always,�the�Company�encourages�Shareholders�to�vote�prior�to�the�Meeting.�
Any�person�who�intends�to�attend�the�Meeting�in�person�must�register�with�the�Company’s�corporate�secretary� at�least�72�hours�in�advance�and�receive�approval,�by�calling�Neil�Currie�at�604.569.2209�or�by�email�at� [email protected].�
If�you�are�a�non�registered�shareholder�of�the�Company�and�received�this�Notice�of�Meeting�and�accompanying� materials�through�a�broker,�a�financial�institution,�a�participant,�or�a�trustee�or�administrator�of�a�retirement�savings� plan,�retirement�income�fund,�education�savings�plan�or�other�similar�savings�or�investment�plan�registered�under�the� Income�Tax�Act �(Canada),�or�a�nominee�of�any�of�the�foregoing�that�holds�your�securities�on�your�behalf�(each,�an� “ Intermediary ”),�please�complete�and�return�the�materials�in�accordance�with�the�instructions�provided�to�you�by�your� Intermediary.�
DATED�at�Vancouver,�British�Columbia,�this�9th�day�of�August,�2021.�
By�Order�of�the�Board�of�Directors�of
FIRST�LIGHT�CAPITAL�CORP.�
“James�Currie”
James�Currie� Chief�Executive�Officer�and�Director�
PLEASE�VOTE.��YOUR�VOTE�IS�IMPORTANT.��WHETHER�OR�NOT�YOU�EXPECT�TO�ATTEND�THE�MEETING,� PLEASE�COMPLETE,�SIGN�AND�DATE�THE�ENCLOSED�FORM�OF�PROXY�AND�PROMPTLY�RETURN�IT�IN� THE�ENVELOPE�PROVIDED.�
FIRST�LIGHT�CAPITAL�CORP.�
Suite�1090�–�510�Burrard�Street� Vancouver,�BC��V6C�3B9� Telephone:�604.569.2209�
INFORMATION�CIRCULAR�
August�9,�2021
INTRODUCTION�
This�information�circular�(the�“ Information�Circular ”)�accompanies�the�notice�of�Annual�General�and�Special� meeting�of�shareholders�(the�“ Notice ”)�of�First�Light�Capital�Corp.�(the�“ Company ”)�and�is�furnished�to� shareholders�(each,�a�“ Shareholder ”)�holding�common�shares�(the�“ Shares ”)�of�the�Company�in�connection�with� the�solicitation�by�the�management�of�the�Company�of�proxies�to�be�voted�at�the�Annual�General�and�Special� meeting�(the�“ Meeting ”)�of�the�Shareholders�to�be�held�at�10:00�a.m.�on�Wednesday,�September�8,�2021�to�be� held�at�the�offices�of�Clark�Wilson�LLP,�900�–�885�West�Georgia�Street,�Vancouver,�BC��V6C�3H1,�or�at�any� adjournment�or�postponement�thereof.�
Date�and�Currency�
The�date�of�this�Information�Circular�is�August�9,�2021.��Unless�otherwise�stated,�all�amounts�herein�are�in� Canadian�dollars.�
COVID�19�
In�view�of�COVID�19,�the�Company�encourages�Shareholders�not�to�attend�the�Meeting�in�person.�No�more�than� 10�persons�will�be�permitted�to�attend�in�person�at�the�in�person�location�for�the�Meeting.�The�Company�may� take�additional�precautionary�measures�in�relation�to�the�Meeting�in�response�to�further�developments�in�the� COVID�19�outbreak.�As�always,�the�Company�encourages�Shareholders�to�vote�prior�to�the�Meeting.�
Any�person�who�intends�to�attend�the�Meeting�in�person�must�register�with�the�Company’s�corporate�secretary� at�least�72�hours�in�advance�and�receive�approval,�by�calling�Neil�Currie�at�604.569.2209�or�by�email�at� [email protected].�
PROXIES�AND�VOTING�RIGHTS�
Management�Solicitation�
The�solicitation�of�proxies�by�management�of�the�Company�will�be�conducted�by�mail�and�may�be�supplemented� by�telephone�or�other�personal�contact�to�be�made�without�special�compensation�to�any�of�the�directors,�officers� and�employees�of�the�Company.��The�Company�does�not�reimburse�Shareholders,�nominees�or�agents�for�costs� incurred�in�obtaining�from�their�principals�authorization�to�execute�forms�of�proxy,�except�that�the�Company�has� requested�brokers�and�nominees�who�hold�stock�in�their�respective�names�to�furnish�this�proxy�material�to�their� customers�who�are�NOBOs�(as�defined�below),�and�the�Company�will�reimburse�such�brokers�and�nominees�for� their�related�out�of�pocket�expenses.��No�solicitation�will�be�made�by�specifically�engaged�employees�or�soliciting� agents.��The�cost�of�solicitation�will�be�borne�by�the�Company.�
No�person�has�been�authorized�to�give�any�information�or�to�make�any�representation�other�than�as�contained�in� this�Information�Circular�in�connection�with�the�solicitation�of�proxies.�If�given�or�made,�such�information�or� representations�must�not�be�relied�upon�as�having�been�authorized�by�the�Company.��The�delivery�of�this� Information�Circular�shall�not�create,�under�any�circumstances,�any�implication�that�there�has�been�no�change�in� the�information�set�forth�herein�since�the�date�of�this�Information�Circular.��This�Information�Circular�does�not� constitute�the�solicitation�of�a�proxy�by�anyone�in�any�jurisdiction�in�which�such�solicitation�is�not�authorized,�or�in�
which�the�person�making�such�solicitation�is�not�qualified�to�do�so,�or�to�anyone�to�whom�it�is�unlawful�to�make� such�an�offer�of�solicitation.�
Appointment�of�Proxy�
Registered�Shareholders�are�entitled�to�vote�at�the�Meeting.��A�Shareholder�is�entitled�to�one�vote�for�each� common�share�that�such�Shareholder�holds�on�the�record�date�of�July�30,�2021�on�the�resolutions�to�be�voted� upon�at�the�Meeting,�and�any�other�matter�to�come�before�the�Meeting.�
The�persons�named�as�proxyholders�(the�“ Designated�Persons ”)�in�the�enclosed�form�of�proxy�are�directors�and/or� officers�of�the�Company.��
A�SHAREHOLDER�HAS�THE�RIGHT�TO�APPOINT�A�PERSON�OR�COMPANY�(WHO�NEED�NOT�BE�A�SHAREHOLDER)� OTHER�THAN�THE�DESIGNATED�PERSONS�NAMED�IN�THE�ENCLOSED�FORM�OF�PROXY�TO�ATTEND�AND�ACT�FOR� OR�ON�BEHALF�OF�THAT�SHAREHOLDER�AT�THE�MEETING.���
A�SHAREHOLDER�MAY�EXERCISE�THIS�RIGHT�BY�INSERTING�THE�NAME�OF�SUCH�OTHER�PERSON�IN�THE�BLANK� SPACE�PROVIDED�ON�THE�FORM�OF�PROXY.�SUCH�SHAREHOLDER�SHOULD�NOTIFY�THE�NOMINEE�OF�THE� APPOINTMENT,�OBTAIN�THE�NOMINEE’S�CONSENT�TO�ACT�AS�PROXY�AND�SHOULD�PROVIDE�INSTRUCTION�TO� THE�NOMINEE�ON�HOW�THE�SHAREHOLDER’S�SHARES�SHOULD�BE�VOTED.�THE�NOMINEE�SHOULD�BRING� PERSONAL�IDENTIFICATION�TO�THE�MEETING.�
The�Shareholder�may�vote�by�mail,�by�telephone�or�via�the�Internet�by�following�instructions�provided�in�the�form� of�proxy�at�least�48�hours�(excluding�Saturdays,�Sundays�and�holidays�recognized�in�the�Province�of�British� Columbia)�prior�to�the�scheduled�time�of�the�Meeting,�or�any�adjournment�or�postponement�thereof.�The� Chairman�of�the�Meeting,�in�his�sole�discretion,�may�accept�completed�forms�of�proxy�on�the�day�of�the�Meeting�or� any�adjournment�or�postponement�thereof.�
A�proxy�may�not�be�valid�unless�it�is�dated�and�signed�by�the�Shareholder�who�is�giving�it�or�by�that�Shareholder’s� attorney�in�fact�duly�authorized�by�that�Shareholder�in�writing�or,�in�the�case�of�a�corporation,�dated�and�executed� by�a�duly�authorized�officer�or�attorney�in�fact�for�the�corporation.�If�a�form�of�proxy�is�executed�by�an�attorney�in� fact�for�an�individual�Shareholder�or�joint�Shareholders,�or�by�an�officer�or�attorney�in�fact�for�a�corporate� Shareholder,�the�instrument�so�empowering�the�officer�or�attorney�in�fact,�as�the�case�may�be,�or�a�notarially� certified�copy�thereof,�must�accompany�the�form�of�proxy.�
Revocation�of�Proxies�
A�Shareholder�who�has�given�a�proxy�may�revoke�it�at�anytime�before�it�is�exercised�by�an�instrument�in�writing:� (a)�executed�by�that�Shareholder�or�by�that�Shareholder’s�attorney�in�fact�authorized�in�writing�or,�where�the� Shareholder�is�a�corporation,�by�a�duly�authorized�officer�of,�or�attorney�in�fact�for,�the�corporation;�and� (b)�delivered�either:�(i)�to�the�Company�at�the�address�set�forth�above,�at�any�time�up�to�and�including�the�last� business�day�preceding�the�day�of�the�Meeting�or,�if�adjourned�or�postponed,�any�reconvening�thereof,�(ii)�to�the� Chairman�of�the�Meeting�prior�to�the�vote�on�matters�covered�by�the�proxy�on�the�day�of�the�Meeting�or,�if� adjourned�or�postponed,�any�reconvening�thereof,�or�(iii)�in�any�other�manner�provided�by�law.�
Also,�a�proxy�will�automatically�be�revoked�by�either:�(i)�attendance�at�the�Meeting�and�participation�in�a�poll� (ballot)�by�a�Shareholder,�or�(ii)�submission�of�a�subsequent�proxy�in�accordance�with�the�foregoing�procedures.�� A�revocation�of�a�proxy�does�not�affect�any�matter�on�which�a�vote�has�been�taken�prior�to�any�such�revocation.�
Voting�of�Shares�and�Proxies�and�Exercise�of�Discretion�by�Designated�Persons�
A�Shareholder�may�indicate�the�manner�in�which�the�Designated�Persons�are�to�vote�with�respect�to�a�matter�to�be� voted�upon�at�the�Meeting�by�marking�the�appropriate�space�on�the�proxy.�� The�Shares�represented�by�a�proxy�will�be� voted�or�withheld�from�voting�in�accordance�with�the�instructions�of�the�Shareholder�on�any�ballot�that�may�be�
called�for�and�if�the�Shareholder�specifies�a�choice�with�respect�to�any�matter�to�be�acted�upon,�the�Shares�will�be� voted�accordingly.�
IF�NO�CHOICE�IS�SPECIFIED�IN�THE�PROXY�WITH�RESPECT�TO�A�MATTER�TO�BE�ACTED�UPON,�THE�PROXY� CONFERS�DISCRETIONARY�AUTHORITY�WITH�RESPECT�TO�THAT�MATTER�UPON�THE�DESIGNATED�PERSONS� NAMED�IN�THE�FORM�OF�PROXY.��IT�IS�INTENDED�THAT�THE�DESIGNATED�PERSONS�WILL�VOTE�THE�SHARES� REPRESENTED�BY�THE�PROXY�IN�FAVOUR�OF�EACH�MATTER�IDENTIFIED�IN�THE�PROXY.�
The�enclosed�form�of�proxy�confers�discretionary�authority�upon�the�persons�named�therein�with�respect�to�other� matters�which�may�properly�come�before�the�Meeting,�including�any�amendments�or�variations�to�any�matters� identified�in�the�Notice.��At�the�date�of�this�Information�Circular,�management�of�the�Company�is�not�aware�of�any� such�amendments,�variations�or�other�matters�to�come�before�the�Meeting.�
In�the�case�of�abstentions�from,�or�withholding�of,�the�voting�of�the�Shares�of�a�Shareholder�on�any�matter,�the� Shares�that�are�the�subject�of�the�abstention�or�withholding�will�be�counted�for�determination�of�a�quorum,�but� will�not�be�counted�as�affirmative�or�negative�on�the�matter�to�be�voted�upon.��
ADVICE�TO�BENEFICIAL�SHAREHOLDERS�
The�information�set�out�in�this�section�is�of�significant�importance�to�those�Shareholders�who�do�not�hold�Shares� in�their�own�name.�Shareholders�who�do�not�hold�their�Shares�in�their�own�name�(referred�to�in�this�Information� Circular�as�“Beneficial�Shareholders”)�should�note�that�only�proxies�deposited�by�Shareholders�whose�names� appear�on�the�records�of�the�Company�as�the�registered�holders�of�Shares�can�be�recognized�and�acted�upon�at� the�Meeting. �If�Shares�are�listed�in�an�account�statement�provided�by�a�broker,�then�in�almost�all�cases�those� Shares�will�not�be�registered�in�the�Beneficial�Shareholder’s�name�on�the�records�of�the�Company.��Such�Shares�will� more�likely�be�registered�under�the�names�of�the�Beneficial�Shareholder’s�broker�or�an�agent�of�that�broker.�In�the� United�States,�the�vast�majority�of�such�Shares�are�registered�under�the�name�of�Cede�&�Co.�as�nominee�for�The� Depository�Trust�Company�(which�acts�as�depositary�for�many�U.S.�brokerage�firms�and�custodian�banks),�and�in� Canada,�under�the�name�of�CDS�&�Co.�(the�registration�name�for�The�Canadian�Depository�for�Securities�Limited,� which�acts�as�nominee�for�many�Canadian�brokerage�firms).� Beneficial�Shareholders�should�ensure�that� instructions�respecting�the�voting�of�their�Shares�are�communicated�to�the�appropriate�person�well�in�advance� of�the�Meeting.
The�Company�does�not�have�access�to�names�of�all�of�Beneficial�Shareholders.�Applicable�regulatory�policy�requires� intermediaries/brokers�to�seek�voting�instructions�from�Beneficial�Shareholders�in�advance�of�Shareholders’� meetings.�Every�intermediary/broker�has�its�own�mailing�procedures�and�provides�its�own�return�instructions�to� clients,�which�should�be�carefully�followed�by�Beneficial�Shareholders�in�order�to�ensure�that�their�Shares�are� voted�at�the�Meeting.�The�form�of�proxy�supplied�to�a�Beneficial�Shareholder�by�its�broker�(or�the�agent�of�the� broker)�is�similar�to�the�form�of�proxy�provided�to�registered�Shareholders�by�the�Company.�However,�its�purpose� is�limited�to�instructing�the�registered�Shareholder�(the�broker�or�agent�of�the�broker)�how�to�vote�on�behalf�of�the� Beneficial�Shareholder.�The�majority�of�brokers�now�delegate�responsibility�for�obtaining�instructions�from�clients� to�Broadridge�Financial�Solutions,�Inc.�(“ Broadridge ”)�in�the�United�States�and�in�Canada.�Broadridge�typically� prepares�a�special�voting�instruction�form,�mails�this�form�to�the�Beneficial�Shareholders�and�asks�for�appropriate� instructions�regarding�the�voting�of�Shares�to�be�voted�at�the�Meeting.�If�Beneficial�Shareholders�receive�the�voting� instruction�forms�from�Broadridge,�they�are�requested�to�complete�and�return�the�voting�instruction�forms�to� Broadridge�by�mail�or�facsimile.�Alternatively,�Beneficial�Shareholders�can�call�a�toll�free�number�and�access� Broadridge’s�dedicated�voting�website�(each�as�noted�on�the�voting�instruction�form)�to�deliver�their�voting� instructions�and�to�vote�the�Shares�held�by�them.�Broadridge�then�tabulates�the�results�of�all�instructions�received� and�provides�appropriate�instructions�respecting�the�voting�of�Shares�to�be�represented�at�the�Meeting.� A� Beneficial�Shareholder�receiving�a�Broadridge�voting�instruction�form�cannot�use�that�form�as�a�proxy�to�vote� Shares�directly�at�the�Meeting�–�the�voting�instruction�form�must�be�returned�to�Broadridge�well�in�advance�of� the�Meeting�in�order�to�have�the�applicable�Shares�voted�at�the�Meeting.�
Although�a�Beneficial�Shareholder�may�not�be�recognized�directly�at�the�Meeting�for�the�purposes�of�voting�Shares� registered�in�the�name�of�his,�her�or�its�broker�(or�agent�of�the�broker),�a�Beneficial�Shareholder�may�attend�at�the� Meeting�as�proxyholder�for�the�registered�Shareholder�and�vote�the�Shares�in�that�capacity.�Beneficial� Shareholders�who�wish�to�attend�at�the�Meeting�and�indirectly�vote�their�Shares�as�proxyholder�for�the�registered� Shareholder�should�enter�their�own�names�in�the�blank�space�on�the�instrument�of�proxy�provided�to�them�and� return�the�same�to�their�broker�(or�the�broker’s�agent)�in�accordance�with�the�instructions�provided�by�such�broker� (or�agent),�well�in�advance�of�the�Meeting.�
Alternatively,�a�Beneficial�Shareholder�may�request�in�writing�that�his,�her�or�its�broker�send�to�the�Beneficial� Shareholder�a�legal�proxy�which�would�enable�the�Beneficial�Shareholder�to�attend�at�the�Meeting�and�vote�his,� her�or�its�Shares.��
Beneficial�Shareholders�consist�of�non�objecting�beneficial�owners�and�objecting�beneficial�owners.�A�non� objecting�beneficial�owner�is�a�beneficial�owner�of�securities�that�has�provided�instructions�to�an�intermediary� holding�the�securities�in�an�account�on�behalf�of�the�beneficial�owner�that�the�beneficial�owner�does�not�object,� for�that�account,�to�the�intermediary�disclosing�ownership�information�about�the�beneficial�owner�under�National� Instrument�54�101� Communication�with�Beneficial�Owners�of�Securities�of�a�Reporting�Issuer �of�the�Canadian� Securities�Administrators.�An�objecting�beneficial�owner�means�a�beneficial�owner�of�securities�that�has�provided� instructions�to�an�intermediary�holding�the�securities�in�an�account�on�behalf�of�the�beneficial�owner�that�the� beneficial�owner�objects,�for�that�account,�to�the�intermediary�disclosing�ownership�information�about�the� beneficial�owner�under�National�Instrument�54�101.��
The�Company�is�sending�proxy�related�materials�directly�to�non�objecting�beneficial�owners�of�the�Shares.�The� Company�will�not�pay�for�the�delivery�of�proxy�related�materials�to�objecting�beneficial�owners�of�the�Shares.�The� objecting�beneficial�owners�of�the�Shares�will�not�receive�the�materials�unless�their�intermediary�assumes�the�costs� of�delivery.�
All�references�to�Shareholders�in�this�Information�Circular�are�to�registered�Shareholders,�unless�specifically�stated� otherwise.�
VOTING�SECURITIES�AND�PRINCIPAL�HOLDERS�OF�VOTING�SECURITIES�
The�Company�is�authorized�to�issue�an�unlimited�number�of�Shares�without�par�value.�As�of�the�record�date,� determined�by�the�board�of�directors�of�the�Company�(the�“ Board ”)�to�be�the�close�of�business�on�July�30,�2021,�a� total�of�30,687,500�Shares�were�issued�and�outstanding.�Each�Share�carries�the�right�to�one�vote�at�the�Meeting.���
Only�registered�Shareholders�as�of�the�record�date�are�entitled�to�receive�notice�of,�and�to�attend�and�vote�at,�the� Meeting�or�any�adjournment�or�postponement�of�the�Meeting.�
To�the�knowledge�of�the�directors�and�executive�officers�of�the�Company,�no�person�or�company�beneficially�owns,� directly�or�indirectly,�or�exercises�control�or�direction�over,�Shares�carrying�more�than�10%�of�the�voting�rights�attached� to�the�outstanding�Shares�of�the�Company,�other�than�as�set�forth�below:�
| Nameof Shareholder |
Numberof SharesOwned |
Percentage ofOutstanding Shares(1) |
|---|---|---|
| MedalistCapitalLtd.(2) | 4,200,000 | 13.7% |
(1) Based�on�30,687,500,000�Shares�issued�and�outstanding�as�of�August�9,�2021.��
(2) Medalist�Capital�Ltd.�is�a�private�company�owned�and�controlled�by�Brandon�Keast�and�Riley�Keast.�
ELECTION�OF�DIRECTORS�
The�Board�presently�consists�of�three�directors,�being�James�Currie,�Neil�Currie�and�Benjamin�Curry�(collectively,� the�“ Current�Directors ”).�As�announced�in�a�press�release�dated�June�17,�2021�(which�can�be�reviewed�on�SEDAR),� pursuant�to�the�terms�of�an�arrangement�agreement�dated�June�16,�2021�(the�“ Arrangement�Agreement ”)�among� the�Company,�1310612�B.C.�Ltd.�(“ Finco ”),�1310620�B.C.�Ltd.�(“ Subco ”)�and�New�Oroperu�Resources�Inc.�(“ New� Oroperu ”),�and�an�amalgamation�agreement�dated�June�16,�2021�among�the�Company,�Finco�and�Subco�(the� “ Amalgamation�Agreement ”),�among�other�things,�the�Company will�acquire�all�of�the�issued�and�outstanding� common�shares�of�New�Oroperu�(the�“ New�Oroperu�Shares ”)�from�the�holders�thereof�(the�“ New�Oroperu� Shareholders ”)�by�way�of�a�share�exchange�in�which�each�New�Oroperu�shareholder�will�receive�5.815�common� shares�in�the�capital�of�the�Company�(“ Shares ”)�for�each�one�(1)�New�Oroperu�Share�held�(the�“ Transaction ”).�The� Transaction�is�expected�to�constitute�the�Company’s�Qualifying�Transaction�under�the�policies�of�the�TSX�Venture� Exchange�(the�“ TSXV ”).�
In�connection�with�the�closing�of�the�Transaction,�Neil�Currie�and�Benjamin�Curry�are�expected�to�resign�as� directors�of�the�Company.�
The�Transaction�is�further�described�in�the�Company’s�news�releases�dated�June�17,�2021�and�July�21,�2021,�which� are�available�under�the�Company’s�profile�on�SEDAR�at�www.sedar.com.�
The�Shareholders�are�required�to�elect�the�directors�of�the�Company�to�hold�office�until�the�next�annual�meeting�of� Shareholders�or�until�the�successors�of�such�directors�are�elected�or�appointed.��On�closing�of�the�Transaction,�the� Company�wishes�to�increase�the�size�of�the�Board�from�three�(3)�to�five�(5)�directors�and�to�replace�the�Current� Directors,�with�the�exception�of�Jim�Currie,�with�four�new�directors�(collectively�with�Jim�Currie,�the�“ New� Directors ”).�At�the�date�of�the�Meeting,�the�Transaction�will�not�yet�have�completed�and�there�can�be�no� assurance�at�that�time�as�to�whether�it�will�be�completed�as�contemplated�or�at�all.�Should�the�Transaction�not�be� completed,�the�Current�Directors�will�continue�to�serve�as�directors�until�their�successors�are�elected�or�appointed.�
The�Shareholders�will�be�asked�at�the�Meeting�to�consider,�and�if�thought�appropriate,�to�pass,�resolutions� (respectively,�the�“ Resolutions�Regarding�Directors ”),�the�texts�of�which�are�as�follows:��
Resolutions�Regarding�Directors�
“RESOLVED,�that:�
-
effective�upon�completion�of�the�Transaction,�the�number�of�directors�of�the�Company�be� increased�from�three�(3)�to�five�(5)�directors;�
-
effective�upon�completion�of�the�Transaction,�the�Company�elect�James�(Jim)�Currie�as�a�director�of� the�Company,�effective�upon�completion�of�the�Transaction,�for�the�ensuing�year,�to�hold�office� until�the�next�annual�general�meeting�of�the�Company�or�until�such�time�as�his�successor�is�duly� elected�or�appointed�in�accordance�with�the�Company’s�Articles,�or�until�his�earlier�death,� resignation�or�removal;�
-
effective�upon�completion�of�the�Transaction,�the�Company�elect�Andrew�Carstensen�as�a�director� of�the�Company,�effective�upon�completion�of�the�Transaction,�for�the�ensuing�year,�to�hold�office� until�the�next�annual�general�meeting�of�the�Company�or�until�such�time�as�his�successor�is�duly� elected�or�appointed�in�accordance�with�the�Company’s�Articles,�or�until�his�earlier�death,� resignation�or�removal;�
-
effective�upon�completion�of�the�Transaction,�the�Company�elect�Barry�Hildred�as�a�director�of�the� Company,�effective�upon�completion�of�the�Transaction,�for�the�ensuing�year,�to�hold�office�until� the�next�annual�general�meeting�of�the�Company�or�until�such�time�as�his�successor�is�duly�elected�
or�appointed�in�accordance�with�the�Company’s�Articles,�or�until�his�earlier�death,�resignation�or� removal;�
-
effective�upon�completion�of�the�Transaction,�the�Company�elect�Brian�Storseth�as�a�director�of�the� Company,�effective�upon�completion�of�the�Transaction,�for�the�ensuing�year,�to�hold�office�until� the�next�annual�general�meeting�of�the�Company�or�until�such�time�as�his�successor�is�duly�elected� or�appointed�in�accordance�with�the�Company’s�Articles,�or�until�his�earlier�death,�resignation�or� removal;�
-
effective�upon�completion�of�the�Transaction,�the�Company�elect�K.�Wayne�Livingstone�as�a� director�of�the�Company,�effective�upon�completion�of�the�Transaction,�for�the�ensuing�year,�to� hold�office�until�the�next�annual�general�meeting�of�the�Company�or�until�such�time�as�his� successor�is�duly�elected�or�appointed�in�accordance�with�the�Company’s�Articles,�or�until�his� earlier�death,�resignation�or�removal;�and�
-
that�the�current�directors�–�being�James�Currie,�Neil�Currie�and�Benjamin�Curry�–�are�to�continue�to� serve�as�directors�of�the�Company�until�the�completion�of�the�Transaction�or,�if�the�Transaction�is� not�completed,�until�their�successors�are�elected�or�appointed.�
Management�of�the�Company�recommends�that�Shareholders�vote�in�favour�of�the�Resolutions�Regarding� Directors�at�the�Meeting.�
The�forms�of�the�Resolutions�Regarding�Directors�set�forth�above�are�subject�to�such�amendments�as�management� may�propose�at�the�Meeting�but�which�do�not�materially�affect�the�substance�of�such�resolutions.�The�Resolution� setting�the�number�of�directors�must�be�approved�by�more�than�50%�of�the�votes�cast�by�Shareholders�present�in� person�or�represented�by�proxy�at�the�Meeting.�
Current�Directors�
The�following�table�sets�out�biographical�information�with�respect�to�each�of�the�Current�Directors:�
| Name, PlaceofResidenceand Position(s) withtheCompany |
PrincipalOccupation, BusinessorEmployment forLastFiveYears(1) |
DirectorSince | Numberof Shares Owned(1) |
|---|---|---|---|
| JamesCurrie(2) BritishColumbia,Canada ChiefExecutiveOfficer andDirector |
Mr.Currieisaregisteredprofessionalengineerwithover40yearsof seniormanagement,engineeringandoperationsexperienceinthe miningindustry.Mostrecently,heservedaschiefoperatingofficerof EquinoxGoldCorp.,where,amongstotherthings,heledthe constructionteambuildingthecompany’sAurizonaMineinBrazil.Prior tothat,Mr.Curriewasthechiefoperatingofficerofanumberofsmall tomid�sizemininganddevelopmentcompanies,includingPretium ResourcesInc.andNewGoldInc.Mr.CurrieholdsaBachelor’sdegreein miningengineeringfromQueen’sUniversityandwasthe2014 co�winnerofAMEBC’sprestigiousEAScholtzAwardforExcellencein MineDevelopmentforhisworkonNewGoldInc.’sNewAftongold mineinB.C.,whichwentintoproductionin2012. |
June9,2020 | 3,000,000(3) |
| NeilCurrie(2) BritishColumbia,Canada ChiefFinancialOfficer, CorporateSecretaryand Director |
Mr.CurriehasbeenthemanagingpartnerandfounderofCapitalEvent ManagementLtd.,aprivatecompanyofferinginvestmentconferences, fromNovember2010topresent.SinceMarch16,2019,Mr.Currie servedastheCEOandCorporateSecretaryofNorthstarClean TechnologiesInc.,takingacleantechnologycompanypublic. |
March15, 2018 |
1,980,000(4) |
| Name, PlaceofResidenceand Position(s) withtheCompany |
PrincipalOccupation, BusinessorEmployment forLastFiveYears(1) |
DirectorSince | Numberof Shares Owned(1) |
|---|---|---|---|
| BenjaminCurry(2) BritishColumbia,Canada Director |
Mr.Curryhasbeenaregisteredmortgagebrokersince2015andis currentlyanassociatewithcommercialrealestatefinancefirm,CMSI Pacific,aprivatecommercerealestatefinancefirm.Hewasaprincipal ofCoastlineCapitalCorp.,aprivatefinancialadvisoryfirm,from January2011toMay2018. |
March15, 2018 |
100,000(5) |
-
(1)� Information�has�been�furnished�by�the�respective�nominees�individually.�
-
(2)�� Member�of�the�Audit�Committee.���
-
(3)� This�number�includes�1,200,000�Shares�held�directly�and�1,800,000�Shares�held�indirectly�through�Anacortes�Management� Ltd.,�a�company�wholly�owned�by�James�Currie.�
-
(4)� These�Shares�are�held�indirectly�through�Currie�Capital�Corp.,�a�company�wholly�owned�by�Neil�Currie.���Does�not�include� an�aggregate�of�100,000�options�held�directly,�each�of�which�is�exercisable�into�one�Share�at�a�price�of�$0.10�per�Share� until�April�23,�2024.�
-
(5)� Does�not�include�an�aggregate�of�100,000�options�held�directly,�each�of�which�is�exercisable�into�one�Share�at�a�price�of� $0.10�per�Share�until�April�23,�2024.
New�Directors�
The�following�table�sets�out�biographical�information�with�respect�to�each�of�the�proposed�New�Directors,�other� than�James�Currie,�as�well�as�the�number�of�Shares�expected�to�be�held�by�the�proposed�New�Directors�following� the�completion�of�the�Transaction.�None�of�the�proposed�New�Directors�currently�hold�any�Shares�and,�with�the� exception�of�James�Currie,�none�of�the�proposed�New�Directors�are�currently�directors�of�the�Company:�
| Name, PlaceofResidenceand Position(s) withtheCompany |
PrincipalOccupation, BusinessorEmployment forLastFiveYears(1) |
DirectorSince | Numberof Shares Owned(1) |
|---|---|---|---|
| AndrewCarstensen(2) Montana,UnitedStates ProposedDirector |
VPExplorationatLuminexResources ChiefGeologistatLuminaGoldCorp. |
N/A | Nil |
| BarryHildred(2)(3) Ontario,Canada ProposedDirector |
ExecutiveChairmanatAquilaResourcesInc. | N/A | Nil |
| BrianStorseth(2) Ontario,Canada ProposedDirector |
PrincipalatWellington�DupontPublicAffairs | N/A | Nil |
| K.WayneLivingstone, BritishColumbia,Canada ProposedDirector |
CEOandPresidentatNewOroperu PresidentandCEOatCarlinGoldCorporation |
N/A | Nil |
-
(1)� Information�has�been�furnished�by�the�respective�nominees�individually.�
-
(2)�� Proposed�member�of�the�Audit�Committee.���
(3) Proposed�Chair�of�the�Audit�Committee.�
Management�does�not�contemplate�that�any�of�its�nominees�will�be�unable�to�serve�as�directors.��If�any�vacancies� occur�in�the�slate�of�nominees�listed�above�before�the�Meeting,�then,�to�the�extent�permitted�by�applicable�law,� the�Designated�Persons�intend�to�exercise�discretionary�authority�to�vote�the�Shares�represented�by�proxies�for� the�election�of�any�other�persons�as�directors.�
Biographies�
The�following�are�brief�profiles�of�the�proposed�members�of�management�and�directors�of�the�New�Directors.�
James�Currie�–�President,�CEO�and�Director�
James�Currie�(“Mr.�Currie”)�is�currently�President�and�CEO�of�the�Company�(TSXV:XYZ.P)�which�is�a�capital�pool� company�focused�on�identifying�a�qualifying�transaction�in�the�mining�sector.�Most�recently,�he�was�Chief� Operating�Officer�(“COO”)�of�Equinox�Gold�Corp.,�where�he�was�responsible�for�two�operating�mines�and�a� development�project.��
Mr.�Currie�has�held�the�role�of�COO�for�a�number�of�mid�tier�gold�producers,�including�Pretivm�Resources�Inc.�and� New�Gold�Inc.�At�Pretivm,�he�led�the�early�development�of�the�Brucejack�gold�mine�which�commenced�operation�in� 2017.�At�New�Gold,�he�was�responsible�for�three�mining�operations�and�led�the�construction�and�development�of� New�Gold’s�New�Afton�gold�mine,�which�went�into�production�in�2012.��
Over�the�course�of�his�40+�year�career�in�the�mining�industry�he�has�been�a�director�on�various�boards�and�held� senior�management,�engineering�and�operation�roles�for�a�number�of�mines�and�projects.�Mr.�Currie�holds�a� Bachelor�of�Applied�Science�degree�with�honours�in�mining�engineering�from�Queen’s�University�and�is�a�registered� professional�engineer.�He�was�the�2014�co�winner�of�AME�BC’s�prestigious�EA�Scholtz�Award�for�Excellence�in�Mine� Development�for�his�work�on�New�Afton.�
Brian�Storseth�–�Director�
Brian�Storseth�(“Mr.�Storseth”)�has�over�20�years�of�experience�working�in�municipal,�provincial�and�federal� politics.�He�started�his�career�by�working�for�the�Speaker�of�the�Legislative�Assembly�of�Alberta.�He�was�then� elected�as�the�Councillor�for�the�Town�of�Barrhead�in�Alberta.�He�was�elected�to�the�House�of�Commons�in�2006� and�served�as�Member�of�Parliament�(MP)�representing�the�electoral�district�of�Westlock�St�Paul�for�10�years.��
During�his�time�in�the�House�of�Commons,�Mr.�Storseth�was�part�of�the�Standing�Committee�on�Agriculture,� Standing�Committee�on�Transportation�and�Infrastructure,�Standing�Committee�on�National�Defense,�Standing� Committee�on�Foreign�Affairs�and�International�Development,�Standing�Committee�on�Environment�and�the� Standing�Committee�on�Indigenous�Affairs.�He�was�also�the�Chair�of�the�Government�Mining�Caucus�for�over�four� years.�As�a�Member�of�Parliament,�Mr.�Storseth�worked�with�the�government�to�consult�with�industry�in� developing�Canada's�Corporate�Social�Responsibility�strategy�for�the�extractive�industries�sector�in�2013.��
Since�leaving�politics,�Mr.�Storseth�has�served�on�several�non�profit�and�publicly�traded�Boards.�He�also�serves�on� the�Boards�of�several�charitable�organizations,�including�Progress�for�Mental�Health�and�the�Canada�Lebanon� Foundation.�Mr.�Storseth�is�also�the�founder�of�the�Westlock�Women's�Hope�Resource�Centre.�He�is�one�of�the� founders�of�Reshore�Canada,�an�initiative�designed�to�advocate�for�the�return�of�critical�supply�chains�and� manufacturing�to�Canada�and�North�America.�
Barry�Hildred�–�Director�
Barry�Hildred�(“Mr.�Hildred”)�is�a�senior�executive�and�successful�entrepreneur�with�varied�business�leadership� experience�and�is�currently�Executive�Chairman�of�Aquila�Resources�Inc.�Mr.�Hildred�was�founder�of�The�Equicom� Group,�a�company�specializing�in�strategic�financial�and�investor�relations�services�for�Canadian�public�companies.� In�2007,�The�Equicom�Group�was�acquired�by�the�TMX�Group,�owner�and�operator�of�the�Toronto�Stock�Exchange� and�TSX�Venture�Exchange.�Mr.�Hildred�also�serves�on�the�Board�of�Directors�of�the�Children’s�Aid�Foundation�of� Canada�where�he�is�Past�Chair.�
Andy�Carstensen�–�Director�
Andrew�Carstensen�(Mr.�Carstensen”)�is�a�professional�geologist�who�has�over�43�years�of�experience�in�mineral� exploration�within�both�major�mining�and�junior�exploration�sectors.��Mr.�Carstensen�is�currently�VP�of�Exploration� at�Luminex�Resources�Corp.�and�Chief�Geologist�for�Lumina�Gold�Corp�as�well�as�a�member�of�the�Board�at�Sun� Summit�Minerals.�He�previously�held�senior�positions�with�other�Lumina�Group�Companies�including�Anfield�Nickel� Corp.,�Anfield�Gold�Corp.,�Lumina�Copper�Corp.,�and�was�technical�advisor�to�a�private�copper�silver�exploration� venture�in�Poland�(Miedzi�Copper).��Prior�to�his�association�with�the�Lumina�Group,�Mr.�Carstensen�held�senior� management�roles�at�Geologix�Exploration�Inc.�and�Manhattan�Minerals�Corp.�Earlier�in�his�career,�Mr.�Carstensen� held�geological�positions�with�Western�Gold�Exploration,�Noranda�and�Newmont�Exploration�of�Canada�Limited.�� Mr.�Carstensen�holds�BA�and�MS�degrees�in�Geology�from�the�University�of�Montana�and�is�a�Certified�Professional� Geologist�with�AIPG.�
K.�Wayne�Livingstone�–�Director�
Wayne�Livingstone�(“Mr.�Livingstone”)�graduated�with�degrees�in�Geology�from�Carleton�University,�BSc.�(Hons.)� and�University�of�British�Columbia,�MSc.��Over�his�career�Mr.�Livingstone�has�explored�for�copper�porphyries�in� North�America�and�epithermal�gold�deposits�in�North�and�South�America.��Mr.�Livingstone�served�as�a�director�and� geologist�of�Hycroft�Resources�and�Development�Corporation�during�its�exploration�and�development�of�a�1�million� ounce�gold�heap�leach�operation�in�Nevada.��Mr.�Livingstone�currently�serves�as�a�Director�of�Constantine�Metal� Resources�Ltd.�(TSXV),�whose�technical�team�drilled�the�discovery�holes�in�its�massive�sulphide,�Cu,�Zn,�Au,�Ag,� Palmer�deposit�in�Alaska.��Constantine’s�assembled�gold�assets�were�subsequently�spun�out�into�a�new�public� company,�HighGold�Mining�Inc.�Mr.�Livingstone�has�served�as�a�Director,�President�and�Chief�Executive�Officer�of� New�Oroperu�since�1994.��
Management�recommends�the�election�of�each�of�the�nominees�listed�above�as�a�director�of�the�Company.
Orders�
To�the�best�of�management’s�knowledge,�no�proposed�director�of�the�Company�is,�or�within�the�ten�(10)�years� before�the�date�of�this�Information�Circular�has�been,�a�director,�chief�executive�officer�or�chief�financial�officer�of� any�company�that:�
-
(a) was�subject�to�a�cease�trade�order,�an�order�similar�to�a�cease�trade�order,�or�an�order�that� denied�the�relevant�company�access�to�any�exemption�under�securities�legislation,�that�was�in� effect�for�a�period�of�more�than�30�consecutive�days�that�was�issued�while�the�proposed�director� was�acting�in�the�capacity�as�director,�chief�executive�officer�or�chief�financial�officer;�or�
-
(b) was�subject�to�a�cease�trade�order,�an�order�similar�to�a�cease�trade�order,�or�an�order�that� denied�the�relevant�company�access�to�any�exemption�under�securities�legislation,�that�was�in� effect�for�a�period�of�more�than�30�consecutive�days�that�was�issued�after�the�proposed�director� ceased�to�be�a�director,�chief�executive�officer�or�chief�financial�officer�and�which�resulted�from� an�event�that�occurred�while�that�person�was�acting�in�the�capacity�as�director,�chief�executive� officer�or�chief�financial�officer.�
Bankruptcies�
To�the�best�of�management’s�knowledge,�no�proposed�director�of�the�Company�is,�or�within�ten�(10)�years�before� the�date�of�this�Information�Circular,�has�been,�a�director�or�an�executive�officer�of�any�company�that,�while�the� person�was�acting�in�that�capacity,�or�within�a�year�of�that�person�ceasing�to�act�in�the�capacity,�became�bankrupt,� made�a�proposal�under�any�legislation�relating�to�bankruptcy�or�insolvency,�or�was�subject�to�or�instituted�any� proceedings,�arrangement�or�compromise�with�creditors,�or�had�a�receiver,�receiver�manager�or�trustee�appointed� to�hold�its�assets�or�made�a�proposal�under�any�legislation�relating�to�bankruptcies�or�insolvency.�
Penalties�and�Sanctions�
To�the�best�of�management’s�knowledge,�no�proposed�director�of�the�Company�has�been�subject�to:�(a)�any� penalties�or�sanctions�imposed�by�a�court�relating�to�securities�legislation�or�by�a�securities�regulatory�authority�or� has�entered�into�a�settlement�agreement�with�a�securities�regulatory�authority;�or�(b)�any�other�penalties�or� sanctions�imposed�by�a�court�or�regulatory�body�that�would�likely�be�considered�important�to�a�reasonable� securityholder�in�deciding�whether�to�vote�for�a�proposed�director.�
STATEMENT�OF�EXECUTIVE�COMPENSATION�
General�
For�the�purpose�of�this�Statement�of�Executive�Compensation:�
“ compensation�securities ”�includes�stock�options,�convertible�securities,�exchangeable�securities�and�similar� instruments�including�stock�appreciation�rights,�deferred�share�units�and�restricted�stock�units�granted�or�issued�by� the�Company�or�one�of�its�subsidiaries�(if�any)�for�services�provided�or�to�be�provided,�directly�or�indirectly�to�the� Company�or�any�of�its�subsidiaries�(if�any);�
“ NEO ”�or�“ named�executive�officer ”�means:�
-
(a)� each�individual�who�served�as�chief�executive�officer�(“ CEO ”)�of�the�Company,�or�who�performed� functions�similar�to�a�CEO,�during�any�part�of�the�most�recently�completed�financial�year,�
-
(b)� each�individual�who�served�as�chief�financial�officer�(“ CFO ”)�of�the�Company,�or�who�performed� functions�similar�to�a�CFO,�during�any�part�of�the�most�recently�completed�financial�year,��
-
(c)� the�most�highly�compensated�executive�officer�of�the�Company�or�any�of�its�subsidiaries�(if�any)� other�than�individuals�identified�in�paragraphs�(a)�and�(b)�at�the�end�of�the�most�recently� completed�financial�year�whose�total�compensation�was�more�than�$150,000,�as�determined�in� accordance�with�subsection�1.3(5)�of�Form�51�102F6V,�for�that�financial�year,�and�
-
(d)� each�individual�who�would�be�an�NEO�under�paragraph�(c)�but�for�the�fact�that�the�individual�was� neither�an�executive�officer�of�the�Company�or�its�subsidiaries�(if�any),�nor�acting�in�a�similar� capacity,�at�the�end�of�that�financial�year;�
“ plan ”�includes�any�plan,�contract,�authorization�or�arrangement,�whether�or�not�set�out�in�any�formal�document,� where�cash,�compensation�securities�or�any�other�property�may�be�received,�whether�for�one�or�more�persons;� and�
“ underlying�securities ”�means�any�securities�issuable�on�conversion,�exchange�or�exercise�of�compensation� securities.
Director�and�Named�Executive�Officer�Compensation,�Excluding�Compensation�Securities�
The�following�table�sets�forth�all�direct�and�indirect�compensation�paid,�payable,�awarded,�granted,�given�or� otherwise�provided,�directly�or�indirectly,�by�the�Company�or�any�subsidiary�thereof�to�each�NEO�and�each�director� of�the�Company,�in�any�capacity,�including,�for�greater�certainty,�all�plan�and�non�plan�compensation,�direct�and� indirect�pay,�remuneration,�economic�or�financial�award,�reward,�benefit,�gift�or�perquisite�paid,�payable,� awarded,�granted,�given�or�otherwise�provided�to�the�NEO�or�director�for�services�provided�and�for�services�to�be� provided,�directly�or�indirectly,�to�the�Company�or�any�subsidiary�thereof�for�each�of�the�two�most�recently� completed�financial�years,�other�than�stock�options�and�other�compensation�securities:��
| Name and Position |
Year | Salary, Consulting Fee, Retaineror Commission($) |
Bonus ($) |
Committee orMeeting Fees ($) |
Valueof Perquisites(1) ($) |
ValueofAll Other Compensation ($) |
Total Compensation ($) |
|---|---|---|---|---|---|---|---|
| JamesCurrie(2) CEOandDirector |
2020 2019 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
| NeilCurrie(3) CFO,Corporate Secretaryand Director |
2020 2019 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
| BenjaminCurry(4) Director |
2020 2019 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
| BraydenSutton(5) FormerDirector |
2020 2019 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
-
(1) “Perquisites”�include�perquisites�provided�to�an�NEO�or�director�that�are�not�generally�available�to�all�employees�and�that,� in�aggregate,�are:�(a)�$15,000,�if�the�NEO�or�director’s�total�salary�for�the�financial�year�is�$150,000�or�less,�(b)�10%�of�the� NEO�or�director’s�salary�for�the�financial�year�if�the�NEO�or�director’s�total�salary�for�the�financial�year�is�greater�than� $150,000�but�less�than�$500,000,�or�(c)�$50,000�if�the�NEO�or�director’s�total�salary�for�the�financial�year�is�$500,000�or� greater.�
-
(2)� James�Currie�has�been�the�CEO�and�a�director�of�the�Company�since�June�9,�2020.���
-
(3)� Neil�Currie�has�been�the�CFO,�Corporate�Secretary�and�a�director�of�the�Company�since�March�15,�2018.�Mr.�Currie�was�the� CEO�from�March�15,�2018�to�June�9,�2020.��
-
(4)� Benjamin�Curry�has�been�a�director�of�the�company�since�March�15,�2018.
-
(5)� Brayden�Sutton�was�a�director�of�the�Company�from�March�15,�2018�to�June�9,�2020.
Stock�Options�and�Other�Compensation�Securities�
The�Company�did�not�grant�or�issue�any�compensation�securities�to�any�director�or�NEO�in�the�financial�year�ended� December�31,�2020.� As�at�December�31,�2020:�
-
(a) James�Currie,�who�is�now�the�CEO�and�a�director�of�the�Company�but�held�no�positions�with�the�Company� on�December�31,�2020,�did�not�own�any�compensation�securities;�
-
(b) Neil�Currie,�the�CFO,�Corporate�Secretary�and�a�director�of�the�Company�and�who�was�the�CEO�of�the� Company�on�December�31,�2020,�owned�an�aggregate�of�100,000�compensation�securities,�comprised� solely�of�stock�options,�each�of�which�is�exercisable�into�one�Share�at�an�exercisable�at�a�price�of�$0.10�per� Share�until�April�23,�2024;��
-
(c) Benjamin�Curry,�a�director�of�the�Company,�owned�an�aggregate�of�100,000�compensation�securities,� comprised�solely�of�stock�options,�each�of�which�is�exercisable�into�one�Share�at�an�exercisable�at�a�price� of�$0.10�per�Share�until�April�23,�2024;�and�
-
(d) Brayden�Sutton,�who�was�a�director�of�the�Company�until�June�9,�2020,�owned�an�aggregate�of�100,000� compensation�securities,�comprised�solely�of�stock�options,�each�of�which�is�exercisable�into�one�Share�at� an�exercisable�at�a�price�of�$0.10�per�Share�until�April�23,�2024.��Mr.�Sutton�resigned�from�the�Board� effective�June�9,�2020.�
Exercise�of�Compensation�Securities�by�Directors�and�NEOs�
No�compensation�securities�were�exercised�by�an�NEO�or�director�of�the�Company�during�the�year�ended� December�31,�2020.�
Stock�Option�Plans�and�Other�Incentive�Plans�
The�board�of�directors�of�the�Company�initially�adopted�a�10%�rolling�stock�option�plan�(the�“ Plan ”)�on�October�16,� 2018,�which�was�most�recently�approved�by�the�shareholders�of�the�Company�on�November�24,�2020.��This�Plan� allows�the�Company�to�issue�such�number�of�options�as,�in�the�aggregate,�is�equal�to�up�to�10%�of�the�number�of� Shares�issued�by�the�Company�in�its�initial�public�offering.��The�following�is�a�brief�description�of�the�key�provisions� of�the�Plan,�which�is�qualified�in�its�entirety�by�the�full�text�of�the�Plan�and�subject�to�TSXV�Policy�2.4,� Capital�Pool� Companies .�A�copy�of�the�Plan�is�available�at�www.sedar.com.�As�of�the�date�of�this�Information�Circular,�there�are� 300,000�stock�options�(each,�an�“ Option ”)�outstanding�under�the�Plan.�
The�Plan�provides�that,�unless�authorized�by�the�shareholders,�the�Plan,�together�with�all�of�the�Company’s�other� previously�established�or�proposed�stock�options,�stock�option�plans,�employee�stock�purchase�plans�or�any�other� compensation�or�incentive�mechanisms�involving�the�issuance�or�potential�issuance�of�Shares,�may�not�result,�at� any�time,�in:�
-
the�number�of�Shares�reserved�for�issuance�pursuant�to�stock�options�exceeding�400,000�Shares�at�any� time�prior�to�the�completion�by�the�Company�of�a�Qualifying�Transaction�or�10%�of�the�outstanding� Shares�following�the�completion�by�the�Company�of�a�Qualifying�Transaction;�
-
the�issuance�to�Insiders,�within�a�one�year�period,�of�a�number�of�Shares�exceeding�400,000�Shares�at�any� time�prior�to�the�completion�by�the�Company�of�a�Qualifying�Transaction�or�10%�of�the�outstanding� Shares�following�the�completion�by�the�Company�of�a�Qualifying�Transaction;�
-
the�issuance�to�any�one�Insider�and�such�Insider's�associates,�within�a�one�year�period,�of�a�number�of� Shares�exceeding�200,000�Shares�at�any�time�prior�to�the�completion�by�the�Company�of�a�Qualifying� Transaction�or�5%�of�the�outstanding�Shares�following�the�completion�by�the�Company�of�a�Qualifying� Transaction;�or�
-
the�issuance�to�consultants�of�a�number�of�Shares�exceeding�80,000�Shares�at�any�time�prior�to�the� completion�by�the�Company�of�a�Qualifying�Transaction�or�2%�of�the�outstanding�Shares�following�the� completion�by�the�Company�of�a�Qualifying�Transaction.�
Options�may�be�exercised�the�greater�of�12�months�after�the�completion�of�the�Qualifying�Transaction�and�90�days�� following�cessation�of�the�optionee’s�position�with�the�Company,�provided�that�if�the�cessation�of�office,� directorship,�or�technical�consulting�arrangement�was�by�reason�of�death,�the�Option�may�be�exercised�within�a� maximum�period�of�one�year�after�such�death,�subject�to�the�expiry�date�of�such�Option.��The�exercise�price�of�any� Option�cannot�be�less�than�the�greater�of�the�offering�share�price�at�the�Company’s�initial�public�offering�and�the� Discounted�Market�Price�(as�defined�in�the�policies�of�the�TSXV).��Any�Shares�acquired�pursuant�to�the�exercise�of� Options�prior�to�the�completion�of�the�Qualifying�Transaction,�must�be�deposited�in�escrow�and�will�be�subject�to� escrow�until�the�final�exchange�bulletin�is�issued.
As�at�December�31,�2020,�there�were�300,000�Options�outstanding�under�the�Plan.�
The�terms�of�the�Plan,�including�the�number�of�Shares�that�can�be�reserved�for�issuance�upon�exercise�of�Options,� minimum�exercise�pricing,�and�other�terms,�were�subject�to�the�requirements�of�TSXV�Policy�2.4,� Capital�Pool� Companies ,�as�in�effect�through�December�31,�2020�(the� “Old�CPC�Policy” ).��Effective�January�1,�2021,�the�TSXV� adopted�a�revised�Policy�2.4,� Capital�Pool�Companies �(the� “New�CPC�Policy” ),�which�permits�Capital�Pool� Companies�to,�among�other�things,�adopt�a�stock�option�plan�with�more�liberal�terms,�including�an�expansion�to� the�number�of�shares�that�can�be�reserved�for�issuance�upon�the�exercise�of�options�prior�to�completion�of�its� Qualifying�Transaction,�the�exercise�price�for�those�options,�and�other�terms.��Certain�Capital�Pool�Companies�that� had�adopted�a�stock�option�plan�under�the�Old�CPC�Policy�are�permitted�to�amend�their�stock�option�plans�to�take� advantage�of�the�more�liberal�provisions�in�the�New�CPC�Policy�if�the�amendment�is�approved�by�a�disinterested� majority�of�the�issuer’s�shareholders�and�accepted�by�the�TSXV.��Effective�February�12,�2021,�the�Company’s� shareholders�approved�the�amendment�of�the�Plan�to�permit�the�Company�to�increase�the�number�of�shares�that�
can�be�reserved�prior�to�completion�of�the�Qualifying�Transaction�from�ten�percent�(10%)�of�the�number�of�shares� sold�in�the�Company’s�initial�public�offering�to�ten�percent�(10%)�of�the�issued�and�outstanding�shares�of�the� Company�at�the�date�an�option�is�granted.��The�shareholders�also�approved�other�changes�to�the�Plan,�including� changes�to�the�minimum�permitted�exercise�price�and�changes�to�the�number�of�options�that�can�be�granted�to� any�one�officer,�director�or�consultant.��Effective�February�25,�2021,�TSXV�accepted�the�Company’s�application�for� approval�to�amend�the�Plan�and�authorized�the�Company�to�amend�the�Plan,�subject�to�TSXV�approval�of�the� amended�Plan.��The�Company�has�not�yet�submitted�an�amended�Plan�for�TSXV�approval.��
The�Company�does�not�have�any�other�incentive�plans�other�than�its�Plan.�At�the�Meeting,�the�Company�will�ask� the�shareholders�to�consider,�and�if�thought�fit,�approve�by�way�of�an�ordinary�resolution,�the�amendment�and� restatement�of�the�Plan�as�an�omnibus�equity�incentive�plan�(the�“ Omnibus�Plan ”).�See�“ Particulars�of�Matters�to� be�Acted�Upon�–�Approval�of�Omnibus�Plan ”�below.�
External�Management�Companies�
The�Company�has�not�engaged�the�services�of�an�external�management�company�to�provide�executive� management�services�to�the�Company,�directly�or�indirectly.
Employment,�Consulting�and�Management�Agreements��
The�Company�is�not�party�to�any�formal,�written�employment,�consulting�or�management�agreements�with�any� NEO�or�director.��
Termination�and�Change�of�Control�Benefits�
There�is�no�contract,�agreement,�plan�or�arrangement�between�the�Company�and�its�NEOs�that�provides�for� payments�to�NEOs�at,�following,�or�in�connection�with�any�termination�(whether�voluntary,�involuntary�or� constructive),�resignation�or�retirement,�or�as�a�result�of�a�change�in�control�of�the�Company�or�a�change�in�a� NEO’s�responsibilities.�
Oversight�and�Description�of�Director�and�NEO�Compensation��
As�the�Company�is�currently�a�capital�pool�company,�it�does�not�have�a�formal�or�informal�compensation�program.�� Except�as�set�out�below�or�otherwise�disclosed�in�this�Information�Circular,�prior�to�completion�of�a�Qualifying� Transaction�(as�defined�in�the�policies�of�the�TSXV,�no�payment�of�any�kind�has�been�made,�or�will�be�made,� directly�or�indirectly,�by�the�Company�to�a�non�arm’s�length�party�to�the�Company�or�a�non�arm’s�length�party�to� the�Qualifying�Transaction,�or�to�any�person�engaged�in�investor�relations�activities�in�respect�of�the�securities�of� the�Company�or�any�resulting�issuer�by�any�means,�including:�
-
(a)�� remuneration,�which�includes�but�is�not�limited�to:�
-
(i)�� salaries;�
-
(ii)�� consulting�fees;�
-
(iii)�� management�contract�fees�or�directors’�fees;�
-
(iv)�� finder’s�fees;�
-
(v)�� loans,�advances,�bonuses;�and�
-
(b)�� deposits�and�similar�payments.�
Although�the�Company�may�reimburse�non�arm’s�length�parties�for�the�Company’s�reasonable�allocation�of�rent,� secretarial�services�and�other�general�administrative�expenses,�at�fair�market�value�(“ Permitted�Reimbursement ”),� there�have�been�no�such�Permitted�Reimbursements�since�incorporation.�No�Permitted�Reimbursement�may�be� made�for�any�payment�made�to�lease�or�buy�a�vehicle.�The�directors�and�officers�of�the�Company�will�also�be� granted�the�directors’�and�officers’�options.��
Following�completion�of�the�Qualifying�Transaction,�it�is�anticipated�that�the�Company�shall�pay�compensation�to� its�officers.�However,�no�payment�other�than�the�Permitted�Reimbursements�will�be�made�by�the�Company�or�by� any�party�on�behalf�of�the�Company,�after�completion�of�the�Qualifying�Transaction,�if�the�payment�relates�to� services�rendered�or�obligations�incurred�or�in�connection�with�the�Qualifying�Transaction.���
Pension�Plan�Benefits�
The�Company�does�not�have�any�pension,�defined�benefit,�defined�contribution�or�deferred�compensation�plans�in� place.�
SECURITIES�AUTHORIZED�FOR�ISSUANCE�UNDER�EQUITY�COMPENSATION�PLANS
The�following�table�sets�forth�details�of�the�Plan,�being�the�Company’s�only�equity�compensation�plan,�as�of� December�31,�2020.
| PlanCategory | Numberofsharestobe issueduponexerciseof outstandingoptions(1) |
Weighted�average exercisepriceof outstandingoptions |
Numberofsecuritiesremainingavailable forfutureissuanceunderequity compensationplans(excludingsecurities reflectedincolumn(a))(2) |
|---|---|---|---|
| Equitycompensationplans approvedbyshareholders |
300,000 | $0.10 | 100,000 |
| Equitycompensationplansnot approvedbyshareholders |
Nil | N/A | Nil |
| Total | 300,000 | $0.10 | 100,000 |
(1)�� The�Company�does�not�have�any�warrants�or�rights�outstanding�under�any�equity�compensation�plans.�
(2) The�Plan�is�a�rolling�stock�option�plan�under�which�the�Company�can�issue�such�number�of�options�as�is�equal�to�10%�of�the� number�of�Shares�issued�in�the�Company’s�initial�public�offering�until�completion�of�the�Qualifying�Transaction.��As�the� Company�issued�4,000,000�Shares�in�its�initial�public�offering,�the�Company�may�issue�up�to�a�maximum�of�400,000�options� to�acquire�Shares�until�completion�of�its�Qualifying�Transaction.
A�copy�of�the�Plan�is�available�at�www.sedar.com.�A�copy�of�the�Plan�is�also�available�for�review�at�the�office�of� Clark�Wilson�LLP,�the�registered�offices�of�the�Company,�at�Suite�800�–�885�West�Georgia�Street,�Vancouver,�BC,� V6C�3H1,�during�normal�business�hours�up�to�and�including�the�date�of�the�Meeting.�
At�the�Meeting,�the�Company�will�ask�the�shareholders�to�consider,�and�if�thought�fit,�approve�by�way�of�an� ordinary�resolution,�the�amendment�and�restatement�of�the�Plan�as�the�Omnibus�Plan.�See�“ Particulars�of�Matters� to�be�Acted�Upon�–�Approval�of�Omnibus�Plan ”�below.�
APPOINTMENT�OF�AUDITOR�
At�the�Meeting,�Shareholders�will�be�asked�to�pass�an�ordinary�resolution�to�appoint�Manning�Elliott�LLP�as�auditor� of�the�Company�for�the�fiscal�year�ending�December�31,�2021,�and�to�authorize�the�directors�of�the�Company�to�fix� the�remuneration�to�be�to�be�paid�to�the�auditor�for�the�fiscal�year�ending�December�31,�2021.�An�ordinary� resolution�needs�to�be�passed�by�a�simple�majority�of�the�votes�cast�by�the�Shareholders�present�in�person�or�
represented�by�proxy�and�entitled�to�vote�at�the�Meeting.��Manning�Elliott�LLP�was�appointed�as�the�auditor�of�the� Company�on�October�16,�2018.�
Management�recommends�that�Shareholders�vote�for�the�appointment�of�Manning�Elliott�LLP�as�the�Company’s� auditor�for�the�Company’s�fiscal�year�ending�December�31,�2021�and�the�authorization�of�the�directors�of�the� Company�to�fix�the�remuneration�to�be�paid�to�the�auditor�for�the�fiscal�year�ending�December�31,�2021.�
AUDIT�COMMITTEE�DISCLOSURE
Under�National�Instrument�52�110� Audit�Committees �(“ NI�52�110 ”),�a�reporting�issuer�is�required�to�provide� disclosure�annually�with�respect�to�its�audit�committee,�including�the�text�of�its�audit�committee�charter,� information�regarding�composition�of�the�audit�committee,�and�information�regarding�fees�paid�to�its�external� auditor.�The�Company�provides�the�following�disclosure�with�respect�to�its�audit�committee�(the� “Audit� Committee” ):�
The�Audit�Committee�Charter�
The�full�text�of�the�audit�committee�charter�(the�“ Charter ”)�is�attached�as�Schedule�“A”�to�this�Information� Circular.�
Composition�of�the�Audit�Committee�
The�Company’s�Audit�Committee�is�comprised�of�three�directors�consisting�of�James�Currie,�Neil�Currie�and� Benjamin�Curry.��As�defined�in�NI�52�110,�each�of�Mr.�James�Currie,�the�Company’s�CEO�and�Mr.�Neil�Currie,�the� Company’s�CFO�and�Corporate�Secretary,�are�not�“independent”,�as�each�of�them�is�an�executive�officer�of�the� Company.��Mr.�Benjamin�Curry�is�independent.��All�of�the�Audit�Committee�members�are�“financially�literate”,�as� defined�in�NI�52�110,�as�all�have�the�industry�experience�necessary�to�understand�and�analyze�financial�statements� of�the�Company,�as�well�as�the�understanding�of�internal�controls�and�procedures�necessary�for�financial�reporting.�
Following�completion�of�the�Transaction,�the�Company’s�Audit�Committee�is�expected�to�be�comprised�of�three� directors,�consisting�of�Barry�Hildred,�Brian�Storseth�and�Andy�Carstensen.�As�defined�in�NI�52�110,�each�proposed� member�of�the�Audit�Committee�is�“independent.”�All�of�the�proposed�Audit�Committee�members�are�“financially� literate”,�as�defined�in�NI�52�110,�as�all�have�the�industry�experience�necessary�to�understand�and�analyze�financial� statements�of�the�Company,�as�well�as�an�understanding�of�internal�controls�and�procedures�necessary�for� financial�reporting.�
The�Audit�Committee�is�responsible�for�review�of�both�interim�and�annual�financial�statements�for�the�Company.�� For�the�purposes�of�performing�their�duties,�the�members�of�the�Audit�Committee�have�the�right,�at�all�times,�to� inspect�all�the�books�and�financial�records�of�the�Company�and�any�subsidiaries�and�to�discuss�with�management� and�the�external�auditors�of�the�Company�any�accounts,�records�and�matters�relating�to�the�financial�statements�of� the�Company.��The�Audit�Committee�members�meet�periodically�with�management�and�annually�with�the�external� auditors.�
Relevant�Education�and�Experience��
Each�proposed�Audit�Committee�member�possesses�education�and�experience�that�is�relevant�to�the��performance� of�his�responsibilities�as�an�Audit�Committee�member�and�that�provides�each�proposed�member�with:�(i)�an� understanding�of�the�accounting�principles�used�by�the�Resulting�Issuer�to�prepare�its�financial�statements;�(ii)�the� ability�to�assess�the�general�application�of�such�accounting�principles�in�connection�with�the�accounting�for� estimates,�accruals�and�provisions,�(iii)�experience�preparing,�auditing,�analyzing�or�evaluating�financial�statements� that�present�a�breadth�and�level�of�complexity�of�accounting�issues�that�are�generally�comparable�to�the�breadth� and�complexity�of�issues�that�can�reasonably�be�expected�to�be�raised�by�the�Resulting�Issuer’s�financial� statements,�or�experience�actively�supervising�one�or�more�individuals�engaged�in�such�activities;�and�(iv)�an� understanding�of�internal�controls�and�procedures�for�financial�reporting.�For�a�description�of�such�relevant�
education�and�experience,�see�the�respective�biographies�of�each�of�Messrs.�Hildred,�Storseth�and�Carstensen� above�under�the�heading�“ Election�of�Directors�–�Biographies .”�
Audit�Committee�Oversight�
Since�the�commencement�of�the�Company’s�most�recently�completed�financial�year,�the�Board�has�not�failed�to� adopt�a�recommendation�of�the�Audit�Committee�to�nominate�or�compensate�an�external�auditor.�
Reliance�on�Certain�Exemptions�
Since�the�commencement�of�the�Company's�most�recently�completed�financial�year,�the�Company�has�not�relied� on�the�exemptions�in�Sections�2.4,�6.1.1(4),�6.1.1(5)�or�Part�8�of�NI�52�110.���Section�2.4� (De�Minimis�Non�audit� Services) �provides�an�exemption�from�the�requirement�that�the�Audit�Committee�must�pre�approve�all�non�audit� services�to�be�provided�by�the�auditor,�where�the�total�amount�of�fees�related�to�the�non�audit�services�are�not� expected�to�exceed�5%�of�the�total�fees�payable�to�the�auditor�in�the�financial�year�in�which�the�non�audit�services� were�provided.�Sections�6.1.1(4)�( Circumstance�Affecting�the�Business�or�Operations�of�the�Venture�Issuer ),�6.1.1(5)� ( Events�Outside�Control�of�Member )�and�6.1.1(6)�( Death,�Incapacity�or�Resignation )�provide�exemptions�from�the� requirement�that�a�majority�of�the�members�of�the�Company's�Audit�Committee�must�not�be�executive�officers,� employees�or�control�persons�of�the�Company�or�of�an�affiliate�of�the�Company.�Part�8� (Exemptions)� permits�a� company�to�apply�to�a�securities�regulatory�authority�or�regulator�for�an�exemption�from�the�requirements�of� National�Instrument�52�110�in�whole�or�in�part.�
Pre�Approval�Policies�and�Procedures�
Formal�policies�and�procedures�for�the�engagement�of�non�audit�services�have�yet�to�be�formulated�and�adopted.� Subject�to�the�requirements�of�NI�52�110,�the�engagement�of�non�audit�services�is�considered�by,�as�applicable,� the�Board�and�the�Audit�Committee,�on�a�case�by�case�basis.�
External�Auditor�Service�Fees�
In�the�following�table,�“audit�fees”�are�fees�billed�by�the�Company’s�external�auditor�for�services�provided�in� auditing�the�Company’s�annual�financial�statements�for�the�subject�year.�“Audit�related�fees”�are�fees�not�included� in�audit�fees�that�are�billed�by�the�auditor�for�assurance�and�related�services�that�are�reasonably�related�to�the� performance�of�the�audit�review�of�the�Company’s�financial�statements.�“Tax�fees”�are�fees�billed�by�the�auditor� for�professional�services�rendered�for�tax�compliance,�tax�advice�and�tax�planning.��“All�other�fees”�are�fees�billed� by�the�auditor�for�products�and�services�not�included�in�the�foregoing�categories.�
The�aggregate�fees�billed�by�the�Company’s�external�auditor�in�the�last�two�fiscal�years,�by�category,�are�as�follows:�
| YearEndedDecember31 | AuditFees | AuditRelatedFees | TaxFees | AllOtherFees |
|---|---|---|---|---|
| 2020 | $10,000 | Nil | $1,750 | $15,825 |
| 2019 | $6,000 | Nil | $5,250 | $15,000 |
Exemption�
The�Company�is�relying�on�the�exemption�provided�by�section�6.1�of�National�Instrument�52�110�which�provides� that�the�Company,�as�a�venture�issuer,�is�not�required�to�comply�with�Part�3�( Composition�of�the�Audit�Committee )� and�Part�5�( Reporting�Obligations )�of�National�Instrument�52�110.�
INDEBTEDNESS�OF�DIRECTORS�AND�EXECUTIVE�OFFICERS�
No�current�or�former�director,�executive�officer,�proposed�nominee�for�election�to�the�Board,�or�associate�of�such� persons�is,�or�at�any�time�since�the�beginning�of�the�Company’s�most�recently�completed�financial�year�has�been,� indebted�to�the�Company�or�any�of�its�subsidiaries.�
No�indebtedness�of�current�or�former�director,�executive�officer,�proposed�nominee�for�election�to�the�Board,�or� associate�of�such�person�is,�or�at�any�time�since�the�beginning�of�the�most�recently�completed�financial�year�has� been,�the�subject�of�a�guarantee,�support�agreement,�letter�of�credit�or�other�similar�arrangement�or� understanding�provided�by�the�Company�or�any�of�its�subsidiaries.�
INTEREST�OF�INFORMED�PERSONS�IN�MATERIAL�TRANSACTIONS�
Except�as�otherwise�disclosed�herein,�no:�(a)�director,�proposed�director�or�executive�officer�of�the�Company;� (b)�person�or�company�who�beneficially�owns,�directly�or�indirectly,�Shares�or�who�exercises�control�or�direction�of� Shares,�or�a�combination�of�both,�carrying�more�than�ten�percent�of�the�voting�rights�attached�to�the�Shares� outstanding�(an�“ Insider ”);�(c)�director�or�executive�officer�of�an�Insider;�or�(d)�associate�or�affiliate�of�any�of�the� directors,�executive�officers�or�Insiders,�has�had�any�material�interest,�direct�or�indirect,�in�any�transaction�since� the�commencement�of�the�Company’s�most�recently�completed�financial�year�or�in�any�proposed�transaction� which�has�materially�affected�or�would�materially�affect�the�Company,�except�with�an�interest�arising�from�the� ownership�of�Shares�where�such�person�or�company�will�receive�no�extra�or�special�benefit�or�advantage�not� shared�on�a�pro�rata�basis�by�all�holders�of�the�same�class�of�Shares.�
MANAGEMENT�CONTRACTS�
There�were�no�management�functions�of�the�Company,�which�were,�to�any�substantial�degree,�performed�by�a� person�other�than�the�directors�or�executive�officers�of�the�Company,�except�as�otherwise�described�in�this� Information�Circular.���
CORPORATE�GOVERNANCE�
Pursuant�to�National�Instrument�58�101� Disclosure�of�Corporate�Governance�Practices ,�the�Company�is�required�to� disclose�its�corporate�governance�practices�as�follows:�
General�
National�Instrument�58�101� Disclosure�of Corporate�Governance�Practices� (“ NI�58�101 ”),�as�adopted�by�the� Canadian�Securities�Administrators,�prescribes�certain�disclosure�by�the�Company�of�its�corporate�governance� practices.�This�disclosure�is�presented�below.�
Board�of�Directors�
The�Board�facilitates�its�exercise�of�independent�supervision�over�the�Company’s�management�through�meetings� of�the�Board.���
Mr.�James�Currie,�the�Company’s�CEO�and�Mr.�Neil�Currie,�the�Company’s�CFO�and�Corporate�Secretary,�are�not� considered�to�be�independent�as�they�are�officers�of�the�Company.�Mr.�Benjamin�Curry�is�considered�to�be� independent�in�that�he�is�independent�and�free�from�any�interest�and�any�business�or�other�relationship�which� could�or�could�reasonably�be�perceived�to�materially�interfere�with�the�respective�director’s�ability�to�act�with�the� best�interests�of�the�Company,�other�than�the�interests�and�relationships�arising�from�being�Shareholders.�
Directorships���
The�following�table�sets�out�information�regarding�other�directorships�presently�held�by�directors�of�the�Company� with�other�reporting�issuers�(or�the�equivalent)�in�Canada�or�any�foreign�jurisdiction:��
| NameofDirector | NamesofOtherReportingIssuers | SecuritiesExchange |
|---|---|---|
| JamesCurrie | SouthernEmpireResourcesCorp. | TSX�V |
| NorthstarCleanTechnologiesInc. | TSX�V | |
| BadgerCapitalCorp. | TSX�V | |
| NeilCurrie | ValdyInvestmentsLtd. | TSX�V |
| NorthstarCleanTechnologiesInc. | TSX�V | |
| BadgerCapitalCorp. | TSX�V | |
| BenjaminCurry | BadgerCapitalCorp. | TSX�V |
| DesertStarResourcesLtd. | TSX�V |
The�following�table�sets�out�information�regarding�other�directorships�presently�held�by�the�Proposed�New� Directors:��
| NameofDirector | NamesofOtherReportingIssuers | SecuritiesExchange |
|---|---|---|
| AndrewCarstensen | SunSummitMineralsCorp. | TSX�V |
| BarryHildred | AquilaResourcesInc. | TSX |
| GreenLightMetalsInc. | N/A | |
| BrianStorseth | ParcelPalLogisticsInc. | CSE |
| ReliqHealthTechnologiesInc. | TSX�V;OTCBB | |
| K.WayneLivingStone | CarlinGoldCorporation | TSX�V |
| ConstantineMetalResourcesLtd. | TSX�V | |
| KodiakCopperCorp. | TSX�V | |
| NewOroperuResourcesInc. | TSX�V;US�Other | |
| NorthernSuperiorResourcesInc. | TSX�V |
Orientation�and�Continuing�Education�
The�Board�briefs�all�new�directors�with�respect�to�the�policies�of�the�Board�and�other�relevant�corporate�and� business�information.�The�Board�does�not�provide�any�continuing�education.�
Ethical�Business�Conduct�
The�Board�has�not�adopted�a�written�ethical�business�code�of�conduct�for�directors,�officers�and�employees.� However,�the�Board�believes�that�the�fiduciary�duties�placed�on�individual�directors�by�the�Company’s�governing� corporate�legislation�and�the�common�law,�and�the�restrictions�placed�by�applicable�corporate�legislation�on�an� individual�director’s�participation�in�decisions�of�the�Board�in�which�the�director�has�an�interest,�have�been�
sufficient�to�ensure�that�the�Board�operates�independently�of�management�and�in�the�best�interests�of�the� Company.
Nomination�of�Directors�
The�Company�does�not�have�a�formal�process�or�committee�for�proposing�new�nominees�for�election�to�the�Board.�� The�nominees�proposed�are�generally�the�result�of�recruitment�efforts�by�the�members�of�the�Board,�including� both�formal�and�informal�discussions�among�the�members�of�the�Board.�
Compensation
The�Board�has�not�created�or�appointed�a�compensation�committee�given�the�Company’s�current�size�and�stage�of� development.�All�tasks�related�to�developing�and�monitoring�the�Company’s�approach�to�the�compensation�of�the� Company’s�NEOs�and�directors�are�performed�by�the�members�of�the�Board.�The�compensation�of�the�NEOs,� directors�and�the�Company’s�employees�or�consultants,�if�any,�is�reviewed,�recommended�and�approved�by�the� Board�without�reference�to�any�specific�formula�or�criteria.�
Other�Board�Committees�
The�Board�has�no�committees�other�than�the�Audit�Committee.�
Assessments�
The�Board�regularly�monitors�the�adequacy�and�effectiveness�of�information�given�to�directors,�communications� between�the�Board�and�management,�and�the�strategic�direction�and�processes�of�the�Board�and�its�committees.�
INTEREST�OF�CERTAIN�PERSONS�OR�COMPANIES�IN�MATTERS�TO�BE�ACTED�UPON�
Except�as�disclosed�elsewhere�in�this�Information�Circular,�no�director�or�executive�officer�of�the�Company�who� was�a�director�or�executive�officer�since�the�beginning�of�the�Company’s�last�financial�year,�no�proposed�nominee� for�election�as�a�director�of�the�Company,�nor�any�associate�or�affiliates�of�any�such�directors,�officers�or�nominees,� has�any�material�interest,�direct�or�indirect,�by�way�of�beneficial�ownership�of�Shares�or�other�securities�in�the� Company�or�otherwise,�in�any�matter�to�be�acted�upon�at�the�Meeting,�other�than�the�election�of�directors�and�the� grant�of�options�which�may�be�granted�to�such�persons�upon�the�approval�of�the�Plan,�as�further�discussed�below.�
Directors,�executive�officers,�proposed�nominees�for�election�as�director�of�the�Company�may�be�interested�in�the� approval�of�the�Company’s�Plan,�pursuant�to�which�they�may�be�granted�stock�options.�See�“Particulars�of�Matters� to�be�Acted�Upon�–�Approval�of�Stock�Option�Plan”,�below,�for�more�information.�
THE�TRANSACTION�
Description�of�Transaction�
New�Oroperu�is�a�company�existing�under�the�laws�of�British�Columbia,�and�the�New�Oroperu�Shares�are�listed�for� trading�on�the�TSXV�under�the�symbol�“ORO”.�The�principal�business�of�New�Oroperu�is�the�operation,�exploration� and�development�of�mineral�properties.�New�Oroperu’s�material�property�consists�of�the�Tres�Cruces�project,� which�is�located�in�north�central�Peru�about�100�kilometers�east�of�the�city�of�Trujilo.�New�Oropeu�holds�a�100%� interest�in�the�Tres�Cruces�mineral�concessions�through�its�wholly�owned�subsidiary,�Aurifera�Tres�Cruces�S.A.��The� combined�entity�following�the�Transaction�(the�“ Resulting�Issuer ”)�will�carry�on�the�business�of�New�Oroperu.�
On�June�16,�2021,�the�Company,�Finco,�Subco�and�New�Oroperu�entered�into�the�Arrangement�Agreement,� pursuant�to�which�the�Company�will�acquire�all�of�the�issued�and�outstanding�New�Oroperu�Shares�from�the�New� Oroperu�Shareholders�by�way�of�a�share�exchange�in�which�each�New�Oroperu�Shareholder�will�receive�5.815� Shares�for�each�one�(1)�New�Oroperu�Share�held�(the�“ Share�Exchange�Ratio ”).��A�portion�of�the�New�Oroperu�
outstanding�options�(“ New�Oroperu�Options ”)�will�vest�immediately�prior�to�closing�and�shall�be�transferred�to� New�Oroperu�for�cancellation�at�closing�for�an�amount�equal�to�the�New�Oroperu�Option�Repurchase�Amount�(as� defined�in�the�Arrangement�Agreement).��All�remaining�New�Oroperu�Options�will�be�exchanged�for�equivalent� Company�options�(“ First�Light�Options ”)�based�on�the�Share�Exchange�Ratio�(as�defined�in�the�Arrangement� Agreement).��The�outstanding�warrants�to�purchase�New�Oroperu�Shares�(the�“ New�Oroperu�Warrants ”)�will�be� adjusted�to�become�exercisable�for�Shares�based�on�the�Share�Exchange�Ratio.��Upon�completion�of�the� Transaction,�New�Oroperu�will�become�a�wholly�owned�subsidiary�of�the�Company�and�the�Resulting�Issuer�will� continue�the�business�of�New�Oroperu.�
Immediately�following�completion�of�the�Transaction,�the�Company�intends�to�complete�the�Consolidation.�See� “ Particulars�of�Matters�to�be�Acted�Upon�–�Approval�of�Share�Consolidation .”�
The�disposition�of�the�New�Oroperu�Shares�and�the�New�Oroperu�Options,�and�the�adjustment�of�the�New� Oroperu�Warrants,�shall�be�effected�pursuant�to�a�court�approved�plan�of�arrangement�under�the� Business� Corporation�Act �(British�Columbia)�(the�“ BCBCA ”).��In�addition,�the�Arrangement�Agreement�contemplates�that�the� Company�will�raise�at�least�$17,500,000�in�a�subscription�receipt�financing�(the� “Concurrent�Financing” ),�change�its� name�to�Anacortes�Mining�Corp.,�increase�the�number�of�directors�on�its�Board�from�three�(3)�to�five�(5),�elect�five� (5)�nominees�(one�(1)�to�be�nominated�by�New�Oroperu�and�four�(4)�by�First�Light,�all�of�whom�have�been� nominated�for�election�as�described�in�this�Circular)�effective�at�the�closing�and,�following�the�closing�and�the� issuance�of�all�Shares�to�the�New�Oroperu�Shareholders�and�Shares�in�the�Concurrent�Financing,�effect�the� Consolidation.�
Completion�of�the�Transaction�is�subject�to�the�satisfaction�of�certain�closing�conditions�as�set�out�in�the� Arrangement�Agreement,�including�the�Escrow�Release�Conditions,�and�may�be�subject�to�further�conditions� imposed�by�the�TSXV.�
Following�completion�of�the�Transaction,�the�Resulting�Issuer�intends�to�qualify�as�a�Tier�1�Mining�Issuer�listed�on� the�TSXV.�
PARTICULARS�OF�MATTERS�TO�BE�ACTED�UPON�
Approval�of�Omnibus�Plan�
At�the�Meeting,�disinterested�Shareholders�will�be�asked�to�consider�and,�if�deemed�appropriate,�to�pass�an� ordinary�resolution�in�the�form�set�out�below�(the�“ Omnibus�Plan�Resolutio n”),�approving�the�adoption�of�the� Omnibus�Plan�to�replace�the�Company’s�existing�Plan.�The�full�text�of�the�Omnibus�Plan�is�attached�as�Schedule�“B”� to�this�Information�Circular.�
The�purpose�of�the�Omnibus�Plan�is�to�attract�and�retain�Employees,�Directors�and�Consultants�(each�as�defined�in� the�policies�of�the�TSXV)�and�to�motivate�them�to�advance�the�interests�of�the�Company�by�affording�them�the� opportunity�to�acquire�an�equity�interest�in�the�Company�through�awards�granted�under�the�Omnibus�Plan.�The� Omnibus�Plan�is�intended�to�provide�more�flexibility�in�the�types�of�awards�granted�by�the�Resulting�Issuer� following�completion�of�the�Transaction.�
The�primary�difference�between�the�Omnibus�Plan�and�the�Plan�is�the�Omnibus�Plan�will�provide�for�the�ability�of� the�Company�to�grant�equity�awards�in�addition�to�Options,�namely�restricted�share�units�and�performance�share� units.��
As�of�the�date�hereof,�there�are�300,000�Options�outstanding�under�the�Plan,�which�will�be�governed�by�the� Omnibus�Plan�following�its�adoption.�
If�the�Omnibus�Plan�Resolution�is�not�approved,�or�if�the�Transaction�does�not�complete,�the�Plan�will�continue�in� full�force�and�effect.�
The�Board�recommends�the�adoption�of�the�Omnibus�Plan�Resolution�and�has�approved�the�adoption�of�the� Omnibus�Plan�to�replace�the�Plan�to�take�effect�as�of�the�closing�of�the�Transaction,�subject�to�Shareholder�and� TSXV�approvals.�� Unless�otherwise�indicated,�the�persons�designated�as�proxyholders�in�the�accompanying�form� of�proxy�will�vote�the�Shares�represented�by�such�form�of�proxy,�properly�executed,�FOR�the�Omnibus�Plan� Resolution.
At�the�Meeting,�disinterested�Shareholders�will�be�asked�to�approve�the�following�Omnibus�Plan�Resolution�as�an� ordinary�resolution,�which�must�be�approved�by�at�least�a�majority�of�the�votes�cast�by�Shareholders�represented� in�person�or�by�proxy�at�the�Meeting�who�vote�in�respect�of�the�Plan�Resolution�(excluding�any�votes�cast�by� Shareholders�that�would�be�eligible�for�a�grant�under�the�Omnibus�Plan):���
“ BE�IT�HEREBY�RESOLVED�THAT ,�as�as�an�ordinary�resolution�of�the�shareholders�of�the� Company:�
-
1.� Subject�to�the�approval�of�the�TSXV,�the�adoption�of�the�Company’s�Omnibus� Plan�as�described�in�this�Information�Circular,�in�the�form�attached�as�Schedule� “B”�to�this�Information�Circular,�is�hereby�authorized,�ratified,�confirmed�and� approved;�
-
2.�� The�board�of�directors�of�the�Company�is�hereby�authorized�in�its�absolute� discretion�to�administer�the�Omnibus�Plan�and�to�amend�or�modify�the� Omnibus�Plan�as�the�board�of�directors�may�deem�to�be�in�the�best�interest�of� the�Company,�and�may�make�such�additional�amendments�as�may�be�required� or�desired�by�the�board�of�directors�in�order�to�conform�to�the�policies�or�other� requirements�of�the�TSXV;�and�
-
3.� Any�one�director�or�officer�of�the�Company�be�and�is�hereby�authorized�and� directed�to�do�all�such�acts�and�things�and�to�execute�and�deliver,�under�the� corporate�seal�of�the�Company�or�otherwise,�all�such�deeds,�documents,� instruments�and�assurances�as�in�his�opinion�may�be�necessary�or�desirable�to� give�effect�to�the�foregoing�resolutions,�including,�without�limitation,�making� any�changes�to�the�Plan�required�by�the�TSXV�or�applicable�securities� regulatory�authorities�and�to�complete�all�transactions�in�connection�with�the� administration�of�the�Plan.”�
The�form�of�the�Plan�Resolution�set�forth�above�is�subject�to�such�amendments�as�management�of�the�Company� may�propose�at�the�Meeting,�but�which�do�not�materially�affect�the�substance�of�the�Plan�Resolution.�
Management�of�the�Company�recommends�that�Shareholders�vote�in�favour�of�the�Plan�Resolution�at�the� Meeting.��
APPROVAL�OF�SHARE�CONSOLIDATION
Immediately�following�the�closing�of�the�Transaction,�the�Resulting�Issuer�shall�complete�the�Consolidation� whereby�it�will�consolidate�the�issued�and�outstanding�Resulting�Issuer�Shares�on�the�basis�of�six�(6)�pre� Consolidation�Resulting�Issuer�Shares�for�each�one�(1)�post�Consolidation�Resulting�Issuer�Share.��At�the�Meeting,� Shareholders�will�be�asked�to�consider,�and�if�thought�advisable,�to�approve�the�Consolidation�Resolution�(the�full� text�of�which�is�set�out�below)�approving�the�Consolidation.�The�Board�will�then�have�the�sole�discretion�to� proceed�with�the�Consolidation,�subject�to�the�receipt�of�the�approval�of�the�TSXV.��
Effects�of�the�Consolidation�
The�Consolidation�will�result�in�Shareholders�holding�a�smaller�number�of�Shares.�However,�the�Consolidation�will� not�affect�any�Shareholder’s�percentage�ownership�interest�or�voting�rights�in�the�Company,�except�to�the�extent�
that�the�Consolidation�would�otherwise�result�in�any�Shareholder�owning�a�fractional�Share.�Any�fractional�Shares� resulting�from�the�Consolidation�will�be�rounded�down�to�the�next�whole�Share,�and�no�additional�consideration� will�be�paid�for�any�such�fractional�Share.�
In�general,�the�Consolidation�will�not�be�considered�to�result�in�a�disposition�of�Shares�by�Shareholders�for� Canadian�federal�income�tax�purposes.�The�aggregate�adjusted�cost�base�to�a�Shareholder�for�such�purposes�of�all� Shares�held�by�the�Shareholder�will�not�change�as�a�result�of�the�Consolidation;�however,�the�Shareholder’s� adjusted�cost�base�per�Share�will�increase�proportionately.�
Each�option,�warrant,�or�other�security�of�the�Company�convertible�into�pre�Consolidation�Shares�that�has�not� been�exercised�or�cancelled�prior�to�the�implementation�of�the�Consolidation,�will�be�adjusted�pursuant�to�the� terms�of�the�Consolidation�ratio�in�accordance�with�the�terms�of�such�option,�warrant�or�other�security.�
Effect�on�Non�Registered�Holders�
Non�Registered�Holders�holding�their�Shares�through�an�Intermediary�should�note�that�such�Intermediary�may� have�different�procedures�for�processing�the�Consolidation�than�those�that�will�be�put�in�place�by�the�Company�for� registered�Shareholders.�If�you�hold�your�Shares�with�such�Intermediary�and�if�you�have�questions�in�this�regard,� you�should�contact�your�Intermediary.�
Exchange�of�Share�Certificates�
If�the�Consolidation�is�approved�by�Shareholders,�accepted�by�the�TSXV,�and�implemented�by�the�Board,� Shareholders�will�be�required�to�exchange�their�share�certificates�representing�pre�Consolidation�Shares�for�new� share�certificates�representing�post�Consolidation�Shares.�
Following�a�determination�by�the�Board�to�implement�the�Consolidation,�it�is�expected�that�the�Transfer�Agent�will� send�a�letter�of�transmittal�to�each�Shareholder�as�soon�as�practicable�after�the�implementation�of�the� Consolidation.�The�letter�of�transmittal�will�contain�instructions�on�how�Shareholders�can�surrender�their�share� certificates�representing�pre�Consolidation�Shares�to�the�Transfer�Agent.�The�Transfer�Agent�will�forward�to�each� Shareholder�who�has�sent�in�their�share�certificates�representing�pre�Consolidation�Shares,�along�with�such�other� documents�as�the�Transfer�Agent�may�require,�a�new�share�certificate�representing�the�number�of�post� Consolidation�Shares�to�which�such�Shareholder�is�entitled.�
Shareholders�should�not�destroy�any�share�certificate�and�should�not�submit�any�share�certificate�for�a�new� share�certificate�until�requested�to�do�so.�
Procedures�for�Implementing�the�Consolidation�
If�the�Shareholders�approve�the�Consolidation�Resolution�set�forth�below,�the�Board�will�have�the�authority,�in�its� sole�discretion,�to�determine�whether�or�not�to�implement�the�Consolidation.�If�the�Board�decides�to�implement� the�Consolidation,�the�Company�will�promptly�make�the�required�filings�with�the�TSXV.�The�Consolidation�will�be� effective�on�the�date�on�which�the�Board�determines�to�carry�out�the�Consolidation�after�receiving�the�acceptance� of�the�TSXV.�Following�receipt�of�the�TSXV’s�final�acceptance�of�the�Consolidation,�the�Company�will�cause�letters� of�transmittal,�as�described�above,�to�be�mailed�to�the�Shareholders.�
Risks�Associated�with�the�Consolidation�
The�effect�of�the�Consolidation�upon�the�market�price�of�the�Shares�cannot�be�predicted�with�any�certainty.�There� can�be�no�assurance�that�the�total�market�capitalization�of�the�Shares�immediately�following�the�Consolidation�will� be�equal�to�or�greater�than�the�total�market�capitalization�immediately�before�the�Consolidation.�In�addition,�there� can�be�no�assurance�that�the�per�Share�market�price�of�the�Shares�following�the�Consolidation�will�remain�higher� than�the�per�Share�market�price�immediately�before�the�Consolidation�or�equal�or�exceed�the�direct�arithmetical� result�of�the�Consolidation.�In�addition,�a�decline�in�the�market�price�of�the�Shares�after�the�Consolidation�may�
result�in�a�greater�percentage�decline�than�would�occur�in�the�absence�of�the�Consolidation.�Furthermore,�the� Consolidation�may�lead�to�an�increase�in�the�number�of�shareholders�who�will�hold�“odd�lots”;�that�is,�a�number�of� Shares�not�evenly�divisible�into�board�lots�(a�board�lot�is�100,�500�or�1,000�Shares,�depending�on�the�price�of�the� Shares).�As�a�general�rule,�the�cost�to�Shareholders�transferring�an�odd�lot�of�Shares�is�somewhat�higher�than�the� cost�of�transferring�a�“board�lot”.�Nonetheless,�despite�the�risks�and�the�potential�increased�cost�to�Shareholders� in�transferring�odd�lots�of�post�Consolidation�Shares,�the�Board�believes�the�Consolidation�is�in�the�best�interests� of�the�Company.�
The�Consolidation�Resolution�to�be�put�before�the�Shareholders�at�the�Meeting�is�set�out�below:�
“ BE�IT�HEREBY�RESOLVED�THAT ,�as�as�an�ordinary�resolution�of�the�shareholders�of�the� Company:�
-
1.� The�Company�is�hereby�authorized�to�consolidate�all�of�the�issued�and� outstanding�common�shares�in�the�capital�of�the�Company�immediately� following�the�closing�of�the�Transaction,�at�a�consolidation�ratio�of�six�(6)�pre� Consolidation�Resulting�Issuer�Shares�for�each�one�(1)�post�Consolidation� Resulting�Issuer�Share�(the�” Consolidation ”);�
-
2.� Any�fractional�shares�resulting�from�the�Consolidation�be�rounded�down�to�the� next�whole�share,�and�no�additional�consideration�shall�be�paid�for�any�such� fractional�share;�
-
3.� The�board�of�directors�of�the�Company�be�and�is�hereby�authorized,�in�its�sole� discretion,�to�determine�whether�or�not,�and�when,�to�implement�the� Consolidation;�
-
4.� Subject�to�paragraph�5�below,�the�solicitors�for�the�Company�are�authorized� and�directed�to�prepare�and�electronically�file,�if�required,�any�filings�required� by�with�the�Registrar�of�Companies;�
-
5.� Any�filings,�if�required,�shall�not�be�filed�with�the�Registrar�of�Companies�unless� and�until�this�resolution�has�been�deposited�at�the�Company’s�records�office;� and�
-
6.� Any�one�director�or�officer�of�the�Company�be�and�is�hereby�authorized�for�and� on�behalf�of�the�Company�to�execute�and�deliver�all�such�documents�and� instruments�and�take�all�such�other�actions�as�such�director�or�officer�may� determine�necessary�or�desirable�to�implement�this�resolution�and�the�matters� authorized�hereby,�such�determination�to�be�conclusively�evidenced�by�the� execution�and�delivery�of�such�documents�and�instruments�or�the�taking�of� such�actions.”�
To�be�effective,�the�Consolidation�Resolution�must�be�approved�by�at�least�a�majority�of�the�votes�cast�by� Shareholders�represented�in�person�or�by�proxy�at�the�Meeting�who�vote�in�respect�of�the�Consolidation� Resolution.�
The�form�of�the�Consolidation�Resolution�set�forth�above�is�subject�to�such�amendments�as management�may� propose�at�the�Meeting�but�which�do�not�materially�affect�the�substance�of the�Consolidation�Resolution.�
The�Board�has�concluded�that�Consolidation�is�in�the�best�interests�of�the�Company�and�its�Shareholders,�and� accordingly,�the�Company�recommends�that�Shareholders�vote�in�favour�of�the�Consolidation�Resolution.�
In�the�absence�of�instructions�to�the�contrary,�the�persons�named�in�the�accompanying�proxy�intend�to�vote�FOR� the�Consolidation�Resolution.
Change�of�Name�
At�the�meeting,�Shareholders�will�be�asked�to�pass�the�Change�of�Name�Resolution�to�approve�the�change�of�the� Company’s�name�from�“First�Light�Capital�Corp.”�to�“Anacortes�Mining�Corp.”�or�such�other�name�as�the�directors� may,�in�their�sole�discretion�determine�(the�“ Change�of�Name ”).��
The�Change�of�Name�Resolution�to�be�put�before�the�Shareholders�at�the�Meeting�is�set�out�below:�
-
“ BE�IT�HEREBY�RESOLVED�THAT ,�as�a�as�as�an�ordinary�resolution�of�the�shareholders�of�the� Company:�
-
the�Company�change�its�name�to�“Anacortes�Mining�Corp.”�or�such�other�name� as�may�be�acceptable�to�the�directors�of�the�Company�and�all�regulatory� authorities�having�jurisdiction,�and�that�the�Company’s�constating�documents� be�amended�accordingly;��
-
2.� the�directors�of�the�Company�be�authorized�to�perform�all�such�other�acts�and� things�as�may�be�necessary�or�desirable�to�effect�the�Change�of�Name�and�that� the�directors�of�the�Company�be�authorized�to�implement�or�abandon�these� resolutions�in�whole�or�in�part,�at�any�time�and�from�time�to�time�in�their�sole� discretion,�all�without�further�approval,�ratification�or�confirmation�by� shareholders.;�and�
-
3.� the�Company�be�and�is�hereby�authorized�to�file�a�notice�of�alteration�with�the� British�Columbia�Corporate�Registry�to�effect�such�Change�of�Name,�which�shall� take�effect�when�the�Company’s�notice�of�articles�has�been�altered�to�reflect� the�Change�of�Name.”�
To�be�effective,�the�Change�of�Name�Resolution�must�be�passed�by�at�least�a�majority�of�the�votes�cast�by� Shareholders�represented�in�person�or�by�proxy�at�the�Meeting�who�vote�in�respect�of�the�Change�of�Name� Resolution.�
The�form�of�the�Change�of�Name�Resolution�set�forth�above�is�subject�to�such�amendments�as management�may� propose�at�the�Meeting�but�which�do�not�materially�affect�the�substance�of the�Change�of�Name�Resolution.
The�Board�of�the�Company�has�concluded�that�Change�of�Name�is�in�the�best�interests�of�the�Company�and�its� shareholders,�and�accordingly,�the�Company�recommends�that�Shareholders�vote�in�favour�of�the�Change�of� Name�Resolution.��
In�the�absence�of�instructions�to�the�contrary,�the�persons�named�in�the�accompanying�proxy�intend�to�vote�FOR� the�Change�of�Name�Resolution.�
ADDITIONAL�INFORMATION�
Shareholders�may�contact�the�Company�at�its�office�by�mail�at�Suite�1090�–�510�Burrard�Street,�Vancouver,�BC�� V6C�3B9,�to�request�copies�of�the�Company’s�financial�statements�and�related�Management’s�Discussion�and� Analysis�(the�“ MD&A ”).��Financial�information�is�provided�in�the�Company’s�audited�financial�statements�and� MD&A�for�the�most�recently�completed�financial�year�and�in�the�financial�statements�and�MD&A�for�subsequent� financial�periods,�which�are�available�on�SEDAR.�
OTHER�MATTERS�
Other�than�the�above,�management�of�the�Company�know�of�no�other�matters�to�come�before�the�Meeting�other� than�those�referred�to�in�the�Notice.�If�any�other�matters�that�are�not�currently�known�to�management�should� properly�come�before�the�Meeting,�the�accompanying�form�of�proxy�confers�discretionary�authority�upon�the� Designated�Persons�named�therein�to�vote�on�such�matters�in�accordance�with�their�best�judgment.
APPROVAL�OF�THE�BOARD�OF�DIRECTORS�
The�contents�of�this�Information�Circular�have�been�approved,�and�the�delivery�of�it�to�each�shareholder�of�the� Company�entitled�thereto�and�to�the�appropriate�regulatory�agencies�has�been�authorized,�by�the�Board.��
Dated�at�Vancouver,�British�Columbia�this�9th�day�of�August,�2021.�
ON�BEHALF�OF�THE�BOARD�OF�DIRECTORS�OF�
FIRST�LIGHT�CAPITAL�CORP.�
“James�Currie” James�Currie� Chief�Executive�Officer�and�Director�
SCHEDULE�“A”�
FIRST�LIGHT�CAPITAL�CORP.� (the�“ Corporation ”)
AUDIT�COMMITTEE�CHARTER�
MANDATE�
The�audit�committee�will�assist�the�board�of�directors�of�the�Corporation�(the�“ Board ”)�in�fulfilling�its�financial� oversight�responsibilities.�The�committee�will�review�and�consider,�in�consultation�with�the�Corporation’s�external� auditors,�the�financial�reporting�process,�the�system�of�internal�control�over�financial�reporting�and�the�audit� process.�In�performing�its�duties,�the�audit�committee�will�maintain�effective�working�relationships�with�the�Board,� management�and�the�external�auditors.�To�effectively�perform�his�or�her�role,�each�committee�member�must� obtain�an�understanding�of�the�principal�responsibilities�of�committee�membership�as�well�as�the�Corporation’s� business,�operations�and�risks.�
2.�� COMPOSITION�
The�Board�will�appoint,�from�among�their�membership,�an�audit�committee�after�each�annual�meeting�of�the� shareholders�of�the�Corporation.�The�audit�committee�will�consist�of�a�minimum�of�three�directors.�
2.1�� Independence�
A�majority�of�the�members�of�the�audit�committee�must�be�“independent”�(as�defined�in�Sec.�1.4�of�National� Instrument�52�110�(Audit�Committees))�(“ NI�52�110 ”).�
2.2�� Expertise�of�Committee�Members�
A�majority�of�the�members�of�the�audit�committee�must�be�“financially�literate”�(as�defined�in�Sec.�1.6�of�NI�52� 110)�or�must�become�financially�literate�within�a�reasonable�period�of�time�after�his�or�her�appointment�to�the� committee.�At�least�one�member�of�the�committee�must�have�accounting�or�related�financial�management� expertise.�
3.�� MEETINGS�
The�audit�committee�shall�meet�in�accordance�with�a�schedule�established�each�year�by�the�Board,�and�at�other� times�that�the�audit�committee�may�determine.�The�audit�committee�shall�meet�at�least�annually�with�the� Corporation’s�Chief�Financial�Officer�and�external�auditors�in�separate�executive�sessions.�
4.�� ROLES�AND�RESPONSIBILITIES�
The�audit�committee�shall�fulfill�the�following�roles�and�discharge�the�following�responsibilities:�
4.1�� External�Audit�
The�audit�committee�shall�be�directly�responsible�for�overseeing�the�work�of�the�external�auditors�in�preparing�or� issuing�the�auditor’s�report,�or�performing�other�audit,�review�or�attestation�services,�including�the�resolution�of� disagreements�between�management�and�the�external�auditors�regarding�financial�reporting.�In�carrying�out�this� duty,�the�audit�committee�shall:�
-
(a)� recommend�to�the�Board�that�the�external�auditor�to�be�nominated�for�the�purpose�of�preparing� or�issuing�an�auditor’s�report�or�performing�other�audit,�review�or�attestation�services�for�the� Corporation;�
-
(b)� review�(by�discussion�and�enquiry)�the�external�auditors’�proposed�audit�scope�and�approach;�
-
(c)�� review�the�performance�of�the�external�auditors�and�recommend�to�the�Board�the�appointment� or�discharge�of�the�external�auditors;�
-
(d)�� review�and�recommend�to�the�Board�the�compensation�to�be�paid�to�the�external�auditors;�
-
(e)� review�and�confirm�the�independence�of�the�external�auditors�by�reviewing�the�non�audit� services�provided�and�the�external�auditors’�assertion�of�their�independence�in�accordance�with� professional�standards;�and�
-
(f)� review�and�approve�the�Corporation’s�hiring�policies�regarding�partners�and�employees,�and� former�partners�and�employees,�of�the�present�and�former�external�auditor�of�the�Corporation.�
4.2�� Internal�Control�
The�audit�committee�shall�consider�whether�adequate�controls�are�in�place�over�annual�and�interim�financial� reporting�as�well�as�controls�over�assets,�transactions�and�the�creation�of�obligations,�commitments�and�liabilities� of�the�Corporation.�In�carrying�out�this�duty,�the�audit�committee�shall:�
-
(a)�� evaluate�the�adequacy�and�effectiveness�of�management’s�system�of�internal�controls�over�the� accounting�and�financial�reporting�system�within�the�Corporation;�and�
-
(b)�� ensure�that�the�external�auditors�discuss�with�the�audit�committee�any�event�or�matter�which� suggests�the�possibility�of�fraud,�illegal�acts�or�deficiencies�in�internal�controls.�
4.3�� Financial�Reporting�
The�audit�committee�shall�review�the�financial�statements�and�financial�information�of�the�Corporation�prior�to� their�release�to�the�public.�In�carrying�out�this�duty,�the�audit�committee�shall:�
General�
-
(a)�� review�significant�accounting�and�financial�reporting�issues,�especially�complex,�unusual�and� related�party�transactions;��
-
(b)�� review�and�ensure�that�the�accounting�principles�selected�by�management�in�preparing�financial� statements�are�appropriate;�
Annual�Financial�Statements�
-
(c)�� review�the�draft�annual�financial�statements�and�provide�a�recommendation�to�the�Board�with� respect�to�the�approval�of�the�financial�statements;�
-
(d)�� meet�with�management�and�the�external�auditors�to�review�the�financial�statements�and�the� results�of�the�audit,�including�any�difficulties�encountered;��
-
(e)�� review�management’s�discussion�&�analysis�respecting�the�annual�reporting�period�prior�to�its� release�to�the�public;�
Interim�Financial�Statements�
-
(f)�� review�and�approve�the�interim�financial�statements�prior�to�their�release�to�the�public;��
-
(g)�� review�management’s�discussion�&�analysis�respecting�the�interim�reporting�period�prior�to�its� release�to�the�public;�and�
Release�of�Financial�Information�
- (h)�� where�reasonably�possible,�review�and�approve�all�public�disclosure�containing�financial� information,�including�news�releases,�prior�to�release�to�the�public.�An�audit�committee�must�be� satisfied�that�adequate�procedures�are�in�place�for�the�review�of�the�Corporation’s�public� disclosure�of�financial�information�extracted�or�derived�from�the�Corporation’s�financial� statements,�and�must�periodically�assess�the�adequacy�of�those�procedures.�
4.4�� Non�Audit�Services�
All�non�audit�services�(being�services�other�than�services�rendered�for�the�audit�and�review�of�the�financial� statements�or�services�that�are�normally�provided�by�the�external�auditor�in�connection�with�statutory�and� regulatory�filings�or�engagements)�which�are�proposed�to�be�provided�by�the�external�auditors�to�the�Corporation� or�any�subsidiary�of�the�Corporation�shall�be�subject�to�the�prior�approval�of�the�audit�committee.�
Delegation�of�Authority
- (a)�� The�audit�committee�may�delegate�to�one�or�more�independent�members�of�the�audit� committee�the�authority�to�approve�non�audit�services,�provided�any�non�audit�services� approved�in�this�manner�must�be�presented�to�the�audit�committee�at�its�next�scheduled� meeting.�
De�Minimis�Non�Audit�Services
-
(b)�� The�audit�committee�may�satisfy�the�requirement�for�the�pre�approval�of�non�audit�services�if:�
-
(i)�� the�aggregate�amount�of�all�non�audit�services�that�were�not�pre�approved�is� reasonably�expected�to�constitute�no�more�than�five�per�cent�of�the�total�amount�of� fees�paid�by�the�Corporation�and�its�subsidiaries�to�the�external�auditor�during�the�fiscal� year�in�which�the�services�are�provided;�or�
-
(ii)�� the�services�are�brought�to�the�attention�of�the�audit�committee�and�approved,�prior�to� the�completion�of�the�audit,�by�the�audit�committee�or�by�one�or�more�of�its�members� to�whom�authority�to�grant�such�approvals�has�been�delegated.�
Pre�Approval�Policies�and�Procedures�
-
(c)�� The�audit�committee�may�also�satisfy�the�requirement�for�the�pre�approval�of�non�audit�services� by�adopting�specific�policies�and�procedures�for�the�engagement�of�non�audit�services,�if:�
-
(i)�� the�pre�approval�policies�and�procedures�are�detailed�as�to�the�particular�service;�
-
(ii)�� the�audit�committee�is�informed�of�each�non�audit�service;�and�
-
(iii)�� the�procedures�do�not�include�delegation�of�the�audit�committee's�responsibilities�to� management.�
4.5�� Other�Responsibilities�
The�audit�committee�shall:�
-
(a)�� establish�procedures�for�the�receipt,�retention�and�treatment�of�complaints�received�by�the� Corporation�regarding�accounting,�internal�accounting�controls�or�auditing�matters;�
-
(b)�� establish�procedures�for�the�confidential,�anonymous�submission�by�employees�of�the� Corporation�of�concerns�regarding�questionable�accounting�or�auditing�matters;�
-
(c)�� ensure�that�significant�findings�and�recommendations�made�by�management�and�the�external� auditor�are�received�and�discussed�on�a�timely�basis;�
-
(d)�� review�the�policies�and�procedures�in�effect�for�considering�officers’�expenses�and�perquisites;�
-
(e)�� perform�other�oversight�functions�as�requested�by�the�Board;�and��
-
(f)�� review�and�update�this�Charter�and�receive�approval�of�changes�to�this�Charter�from�the�Board.�
4.6�� Reporting�Responsibilities�
The�audit�committee�shall�regularly�update�the�Board�about�committee�activities�and�make�appropriate� recommendations.�
5.�� RESOURCES�AND�AUTHORITY�OF�THE�AUDIT�COMMITTEE�
The�audit�committee�shall�have�the�resources�and�the�authority�appropriate�to�discharge�its�responsibilities,� including�the�authority�to�
-
(a)�� engage�independent�counsel�and�other�advisors�as�it�determines�necessary�to�carry�out�its� duties;�
-
(b)�� set�and�pay�the�compensation�for�any�advisors�employed�by�the�audit�committee;�and�
-
(c)�� communicate�directly�with�the�internal�and�external�auditors.�
6.�� GUIDANCE�–�ROLES�&�RESPONSIBILITIES�
The�audit�committee�should�consider�undertaking�the�actions�described�in�the�following�guidance,�which�is� intended�to�provide�the�audit�committee�members�with�additional�guidance�on�fulfilment�of�their�roles�and� responsibilities�on�the�committee:�
6.1� Internal�Control�
-
(a)�� evaluate�whether�management�is�setting�the�goal�of�high�standards�by�communicating�the� importance�of�internal�control�and�ensuring�that�all�individuals�possess�an�understanding�of�their� roles�and�responsibilities,�
-
(b)�� focus�on�the�extent�to�which�external�auditors�review�computer�systems�and�applications,�the� security�of�such�systems�and�applications,�and�the�contingency�plan�for�processing�financial� information�in�the�event�of�an�IT�systems�breakdown,�and�
-
(c)�� gain�an�understanding�of�whether�internal�control�recommendations�made�by�external�auditors� have�been�implemented�by�management;�
6.2�� Financial�Reporting�
General�
-
(a)�� review�significant�accounting�and�reporting�issues,�including�recent�professional�and�regulatory� pronouncements,�and�understand�their�impact�on�the�financial�statements,�
-
(b)�� ask�management�and�the�external�auditors�about�significant�risks�and�exposures�and�the�plans�to� minimize�such�risks,��
-
(c)�� understand�industry�best�practices�and�the�Corporation’s�adoption�of�them;�
Annual�Financial�Statements�
-
(d)�� review�the�annual�financial�statements�and�determine�whether�they�are�complete�and�consistent� with�the�information�known�to�committee�members,�and�assess�whether�the�financial� statements�reflect�appropriate�accounting�principles�in�light�of�the�jurisdictions�in�which�the� Corporation�reports�or�trades�its�shares;�
-
(e)�� pay�attention�to�complex�and/or�unusual�transactions�such�as�restructuring�charges�and� derivative�disclosures;�
-
(f)�� focus�on�judgmental�areas�such�as�those�involving�valuation�of�assets�and�liabilities,�including,�for� example,�the�accounting�for�and�disclosure�of�loan�losses;�warranty,�professional�liability;� litigation�reserves;�and�other�commitments�and�contingencies;�
-
(g)�� consider�management’s�handling�of�proposed�audit�adjustments�identified�by�the�external� auditors;��
-
(h)�� ensure�that�the�external�auditors�communicate�all�required�matters�to�the�committee;�
Interim�Financial�Statements�
-
(i)�� be�briefed�on�how�management�develops�and�summarizes�interim�financial�information,�the� extent�to�which�the�external�auditors�review�interim�financial�information;�
-
(j)�� meet�with�management�and�the�auditors,�either�telephonically�or�in�person,�to�review�the� interim�financial�statements;��
-
(k)�� to�gain�insight�into�the�fairness�of�the�interim�statements�and�disclosures,�obtain�explanations� from�management�on�whether:�
-
(i)�� actual�financial�results�for�the�quarter�or�interim�period�varied�significantly�from� budgeted�or�projected�results;�
-
(ii)�� changes�in�financial�ratios�and�relationships�of�various�balance�sheet�and�operating� statement�figures�in�the�interim�financials�statements�are�consistent�with�changes�in�the� Corporation’s�operations�and�financing�practices;�
-
(iii)�� generally�accepted�accounting�principles�have�been�consistently�applied;�
-
(iv)�� there�are�any�actual�or�proposed�changes�in�accounting�or�financial�reporting�practices;�
-
(v)�� there�are�any�significant�or�unusual�events�or�transactions;�
-
(vi)�� the�Corporation’s�financial�and�operating�controls�are�functioning�effectively;�
-
(vii)�� the�Corporation�has�complied�with�the�terms�of�loan�agreements,�security�indentures�or� other�financial�position�or�results�dependent�agreement;�and�
-
(viii)�� the�interim�financial�statements�contain�adequate�and�appropriate�disclosures;�
6.3��
Compliance�with�Laws�and�Regulations�
-
(a)�� periodically�obtain�updates�from�management�regarding�compliance�with�this�policy�and�industry� “best�practices”;�
-
(b)�� be�satisfied�that�all�regulatory�compliance�matters�have�been�considered�in�the�preparation�of� the�financial�statements;��
-
(c)�� review�the�findings�of�any�examinations�by�securities�regulatory�authorities�and�stock�exchanges;� and�
6.4�� Other�Responsibilities�
- (a)�� review,�with�the�Corporation’s�counsel,�any�legal�matters�that�could�have�a�significant�impact�on� the�Corporation’s�financial�statements.�
SCHEDULE�“B”�
OMNIBUS�EQUITY�INCENTIVE�PLAN�
OMNIBUS�EQUITY�INCENTIVE�PLAN�
ANACORTES�MINING�CORP.�
(the�“ Company ”)�
OMNIBUS�EQUITY�INCENTIVE�PLAN�
SECTION�1� ESTABLISHMENT�AND�PURPOSE�OF�THIS�PLAN�
The�purpose�of�this�omnibus�equity�incentive�plan�(the�“ Plan ”)�is�to�promote�the�long�term�success� of�the�Company�and�the�creation�of�shareholder�value�by:�(i)�encouraging�the�attraction�and� retention�of�Directors,�Key�Employees�and�Consultants�of�the�Company�and�its�Subsidiaries;�(ii)� encouraging�such�Directors,�Key�Employees�and�Consultants�to�focus�on�critical�long�term� objectives;�and�(iii)�promoting�greater�alignment�of�the�interests�of�such�Directors,�Key�Employees� and�Consultants�with�the�interests�of�the�Company.�
To�this�end,�this�Plan�provides�for�the�grant�of�Options,�Restricted�Share�Units�and�Performance� Share�Units�to�Directors,�Key�Employees�and�Consultants�of�the�Company�as�further�described�in� this�Plan.�
SECTION�2� DEFINITIONS�
2.1 Definitions�
As�used�in�this�Plan,�the�following�terms�shall�have�the�meanings�set�forth�below:�
-
(a) “ Award ”�means�any�award�of�Options,�Restricted�Share�Units�or�Performance�Share�Units� granted�under�this�Plan;�
-
(b) “ Award�Agreement ”�means�any�written�agreement,�contract,�or�other�instrument�or� document,�including�an�electronic�communication,�as�may�from�time�to�time�be�designated� by�the�Company�as�evidencing�any�Award�granted�under�this�Plan;�
-
(c)
-
“ Board ”�means�the�board�of�directors�of�the�Company;�
-
(d) “ Change�of�Control ”�means�the�acquisition�by�any�person�or�by�any�person�and�a�joint� actor,�whether�directly�or�indirectly,�of�voting�securities�(as�such�terms�are�interpreted�in� the� Securities�Act )�of�the�Company,�which,�when�added�to�all�other�voting�securities�of�the� Company�at�the�time�held�by�such�person�or�by�such�person�and�a�person�“acting�jointly�or� in�concert”�with�another�person,�as�that�phrase�is�interpreted�in�National� Instrument�62�103,�totals�for�the�first�time�not�less�than�fifty�(50%)�percent�of�the� outstanding�voting�securities�of�the�Company�or�the�votes�attached�to�those�securities�are� sufficient,�if�exercised,�to�elect�a�majority�of�the�Board;�
-
(e) “ Company ”�means�Anacortes�Mining�Corp.,�a�company�incorporated�under�the� Business� Corporations�Act �(British�Columbia),�and�any�of�its�successors�or�assigns;�
-
(f) “ Consultant ”�means�a�Person�(other�than�a�Key�Employee�or�Director)�that:�
-
(i) is�engaged�to�provide,�on�an�ongoing� bona�fide �basis,�consulting,�technical,� management�or�other�services�to�the�Company�or�an�affiliate�of�the�Company,� other�than�services�provided�in�relation�to�a�distribution�(as�defined�in�the� Securities�Act );�
-
(ii) provides�the�services�under�a�written�contract�between�the�Company�or�an�affiliate� of�the�Company�and�the�Person,�as�the�case�may�be;�
-
(iii) in�the�reasonable�opinion�of�the�Company,�spends�or�will�spend�a�significant� amount�of�time�on�the�affairs�and�business�of�the�Company�or�an�affiliate�of�the� Company;�and�
-
(iv) has�a�relationship�with�the�Company�or�an�affiliate�of�the�Company�that�enables� the�Person�to�be�knowledgeable�about�the�business�and�affairs�of�the�Company,��
and�includes:�
-
(v) for�a�Person�that�is�an�individual,�a�corporation�of�which�such�individual�is�an� employee�or�shareholder,�and�a�partnership�of�which�the�individual�is�an�employee� or�partner;�and�
-
(vi) for�a�Person�that�is�not�an�individual,�an�employee,�executive�officer�or�director�of� the�consultant,� provided�that �the�individual�employee,�executive�officer�or�director� spends�or�will�spend�a�significant�amount�of�time�on�the�affairs�and�business�of�the� Company�or�an�affiliate�of�the�Company;�
-
(g)
-
“ Capital�Pool�Company ”�has�the�meaning�set�out�in�the�policies�of�the�Exchange;�
-
(h) “ Determination�Date ”�means�a�date�determined�by�the�Board�in�its�sole�discretion�but�not� later�than�90�days�after�the�expiry�of�a�Performance�Cycle;�
-
(i) “ Discounted�Market�Price ”�means�the�Market�Price�less�the�discount�set�forth�below,� subject�to�a�minimum�price�of�$0.10:�
Closing�Price Discount� up�to�$0.50� 25%� $0.51� to� 20%� $2.00� above�$2.00� 15%�
-
(j) “ Director ”�means�a�member�of�the�Board;�
-
(k) “ Disability ”�means�any�medical�condition�which�qualifies�a�Participant�for�benefits�under�a� long�term�disability�plan�of�the�Company�or�Subsidiary;�
-
(l) “ Effective�Date ”�has�the�meaning�ascribed�thereto�in�Section�8;�
-
(m) “ Eligible�Person ”�means�Directors,�Key�Employees�and�Consultants;�
2�
-
(n) “ Exchange ”�means�the�TSX�Venture�Exchange,�or�such�other�exchange�upon�which�the� Shares�of�the�Company�may�become�listed�for�trading;�
-
(o) “ Grant�Date ”�means,�for�any�Award,�the�date�specified�by�the�Board�as�the�grant�date�at� the�time�it�grants�the�Award�or,�if�no�such�date�is�specified,�the�date�upon�which�the�Award� was�actually�granted;�
-
(p) “ Insider ”�means�any�insider,�as�that�term�is�defined�in�the� Securities�Act ;�
-
(q) “ Investor�Relations�Activities ”�means�any�activities,�by�or�on�behalf�of�the�Company�or�a� shareholder�of�the�Company,�that�promote�or�reasonably�could�be�expected�to�promote� the�purchase�or�sale�of�securities�of�the�Company,�but�does�not�include:�
-
(i) the�dissemination�of�information�provided,�or�records�prepared,�in�the�ordinary� course�of�business�of�the�Company�
-
(A) to�promote�the�sale�of�products�or�services�of�the�Company,�or�
-
(B) to�raise�public�awareness�of�the�Company,�that�cannot�reasonably�be� considered�to�promote�the�purchase�or�sale�of�securities�of�the�Company;�
-
-
(ii) activities�or�communications�necessary�to�comply�with�the�requirements�of:�
-
(A) applicable�securities�laws,�or�
-
(B) Exchange�requirements�or�the�by�laws,�rules�or�other�regulatory� instruments�of�any�other�self�regulatory�body�or�exchange�having� jurisdiction�over�the�Company;�
-
-
(iii) communications�by�a�publisher�of,�or�writer�for,�a�newspaper,�magazine�or�business� or�financial�publication,�that�is�of�general�and�regular�paid�circulation,�distributed� only�to�subscribers�to�it�for�value�or�to�purchasers�of�it,�if:�
-
(A) the�communication�is�only�through�the�newspaper,�magazine�or� publication;�and�
-
(B) the�publisher�or�writer�receives�no�commission�or�other�consideration� other�than�for�acting�in�the�capacity�of�publisher�or�writer;�or�
-
-
(iv) activities�or�communications�that�may�be�otherwise�specified�by�the�Exchange�
-
(r) “ Key�Employees ”�means�employees,�officers,�whether�Directors�or�not,�and�includes�both� full�time�and�part�time�employees�of�the�Company�or�any�Subsidiary�who,�by�the�nature�of� their�positions�or�jobs�are,�in�the�opinion�of�the�Board,�in�a�position�to�contribute�to�the� success�of�the�Company;�
-
(s) “ Market�Price ”�means,�subject�to�the�exceptions�prescribed�by�the�Exchange�from�time�to� time,�the�last�closing�price�of�the�Company’s�shares�before�the�issuance�of�the�required� news�release�disclosing�the�grant�of�Awards�(but,�if�the�policies�of�the�Exchange�provide�an� exception�to�such�news�release,�then�the�last�closing�price�of�the�Company’s�shares�before� the�Grant�Date).�
3�
-
(t) “ Option ”�means�incentive�share�purchase�options�entitling�the�holder�thereof�to�purchase� Shares;�
-
(u) “ Participant ”�means�any�Eligible�Person�to�whom�Awards�under�this�Plan�are�granted;�
-
(v) “ Participant’s�Account ”�means�a�notional�account�maintained�for�each�Participant’s� participation�in�this�Plan�which�will�show�any�Restricted�Share�Units�or�Performance�Share� Units�credited�to�a�Participant�from�time�to�time;�
-
(w) “ Performance�Based�Award ”�means,�collectively,�Performance�Share�Units�and�Restricted� Share�Units;�
-
(x) “ Performance�Criteria ”�means�criteria�established�by�the�Board�which,�without�limitation,� may�include�criteria�based�on�the�Participant’s�personal�performance�and/or�financial� performance�of�the�Company�and�its�Subsidiaries,�and�that�are�to�be�used�to�determine�the� vesting�of�the�Performance�Share�Units;�
-
(y) “ Performance�Cycle ”�means�the�applicable�performance�cycle�of�the�Performance�Share� Units�as�may�be�specified�by�the�Board�in�the�applicable�Award�Agreement;�
-
(z) “ Performance�Share�Unit ”�means�a�right�awarded�to�a�Participant�to�receive�a�payment�in� Shares�as�provided�in�Section�5.3�hereof�and�subject�to�the�terms�and�conditions�of�this� Plan�and�the�applicable�Award�Agreement;�
-
(aa) “ Person ”�means�any�individual,�corporation,�partnership,�association,�joint�stock�company,� trust,�unincorporated�organization,�or�governmental�authority�or�body;�
-
(bb) “ Restriction�Period ”�means�the�time�period�between�the�Grant�Date�and�the�Vesting�Date� of�an�Award�of�Restricted�Share�Units�specified�by�the�Board�in�the�applicable�Award� Agreement,�which�period�shall�be�no�less�than�12�months,�provided�the�Board�may,�in�its� discretion,�permit�earlier�vesting,�no�sooner�than�quarterly,�of�the�Restricted�Share�Units;�
-
(cc) “ Restricted�Share�Unit ”�means�a�right�awarded�to�a�Participant�to�receive�a�payment�in� Shares�as�provided�in�Section�5.2�hereof�and�subject�to�the�terms�and�conditions�of�this� Plan�and�the�applicable�Award�Agreement;�
-
(dd) ‘‘ Retirement ”�means�retirement�from�active�employment�with�the�Company�or�a� Subsidiary�with�the�consent�of�an�officer�of�the�Company�or�the�Subsidiary;�
-
(ee) “ Securities�Act ”�means�the� Securities�Act �(British�Columbia),�as�amended,�from�time�to� time;�
-
(ff) “ Security�Based�Compensation�Arrangement ”�shall�have�the�meaning�ascribed�thereto�in� the�rules�and�policies�of�the�Exchange,�or�in�the�event�that�such�term�is�not�defined�in�the� rules�and�policies�of�the�Exchange,�shall�mean�a�stock�option,�including�the�Option�Plan,� employee�stock�purchase�plan,�long�term�incentive�plan�or�any�other�compensation�or� incentive�mechanism�involving�the�issuance�or�potential�issuance�of�Shares�to�one�or�more� full�time�employees,�officers,�Insiders,�service�providers�or�Consultants�of�the�Company�or�a� Subsidiary,�including�a�share�purchase�from�treasury�by�a�full�time�employee,�officer,� Insider,�service�provider�or�Consultant�which�is�financially�assisted�by�the�Company�or�a� Subsidiary�by�way�of�loan,�guarantee�or�otherwise;�
4�
-
(gg) “ Shares ”�means�the�common�shares�of�the�Company;�
-
(hh) “ Subsidiary ”�means�a�corporation,�company�or�partnership�that�is�controlled,�directly�or� indirectly,�by�the�Company;�
-
(ii) “ Termination�Date ”�means,�as�applicable:�
-
(i) in�the�event�of�a�Participant’s�Retirement,�voluntary�termination�or�termination�of� employment�as�a�result�of�a�Disability,�the�date�on�which�such�Participant�ceases�to� be�an�employee�of�the�Company�or�a�Subsidiary;�and�
-
(ii) in�the�event�of�termination�of�the�Participant’s�employment�by�the�Company�or�a� Subsidiary,�the�date�on�which�such�Participant�is�advised�by�the�Company�or�a� Subsidiary,�in�writing�or�verbally,�that�his�or�her�services�are�no�longer�required;� and�
-
(jj) “ Vesting�Date ”�means�in�respect�of�any�Award,�the�date�when�the�Award�is�fully�vested�in� accordance�with�the�provisions�of�this�Plan�and�the�applicable�Award�Agreement.�
SECTION�3� ADMINISTRATION�
3.1 Board�to�Administer�Plan�
Except�as�otherwise�provided�herein,�this�Plan�shall�be�administered�by�the�Board�and�the�Board� shall�have�full�authority�to�administer�this�Plan,�including�the�authority�to�interpret�and�construe� any�provision�of�this�Plan�and�to�adopt,�amend�and�rescind�such�rules�and�regulations�for� administering�this�Plan�as�the�Board�may�deem�necessary�in�order�to�comply�with�the�requirements� of�this�Plan.�
3.2 Delegation�to�Committee�
All�of�the�powers�exercisable�hereunder�by�the�Board�may,�to�the�extent�permitted�by�applicable� law�and�as�determined�by�resolution�of�the�Board,�be�delegated�to�and�exercised�by�such� committee�as�the�Board�may�determine.�
3.3 Interpretation�
All�actions�taken�and�all�interpretations�and�determinations�made�or�approved�by�the�Board�in� good�faith�shall�be�final�and�conclusive�and�shall�be�binding�on�the�Participants�and�the�Company.�
3.4
No�Liability�
No�Director�shall�be�personally�liable�for�any�action�taken�or�determination�or�interpretation�made� or�approved�in�good�faith�in�connection�with�this�Plan�and�the�Directors�shall,�in�addition�to�their� rights�as�Directors,�be�fully�protected,�indemnified�and�held�harmless�by�the�Company�with�respect� to�any�such�action�taken�or�determination�or�interpretation�made.�The�appropriate�officers�of�the� Company�are�hereby�authorized�and�empowered�to�do�all�things�and�execute�and�deliver�all� instruments,�undertakings�and�applications�and�writings�as�they,�in�their�absolute�discretion,� consider�necessary�for�the�implementation�of�this�Plan�and�of�the�rules�and�regulations�established� for�administering�this�Plan.�All�costs�incurred�in�connection�with�this�Plan�shall�be�for�the�account�of� the�Company.�
5�
SECTION�4� SHARES�AVAILABLE�FOR�AWARDS�
4.1 Limitations�on�Shares�Available�for�Issuance�
-
(a) The�aggregate�number�of�Shares�issuable�under�this�Plan�in�respect�of�Awards�shall�not� exceed�10%�of�the�Company’s�total�issued�and�outstanding�Shares�from�time�to�time;�
-
(b) So�long�as�it�may�be�required�by�the�rules�and�policies�of�the�Exchange:�
-
(i) the�total�number�of�Shares�issuable�to�any�Participant�under�this�Plan,�within�any� one�year�period,�together�with�Shares�reserved�for�issuance�to�such�Participant� under�all�of�the�Company’s�other�Security�Based�Compensation�Arrangements,� shall�not�exceed�five�(5%)�percent�of�the�issued�and�outstanding�Shares;�
-
(ii) the�total�number�of�Shares�issuable�to�any�Participant�under�this�Plan,�within�any� one�year�period,�shall�not�exceed�two�(2%)�percent�of�the�issued�and�outstanding� Shares;�
-
(iii) the�total�number�of�Shares�issuable�to�Insiders�under�this�Plan,�within�any�one�year� period�and�at�any�time�under�this�Plan,�together�with�Shares�reserved�for�issuance� to�Insiders�within�any�one�year�period�and�at�any�time�under�all�of�the�Company’s� other�Security�Based�Compensation�Arrangements,�shall�not�exceed�ten�(10%)� percent�of�the�issued�and�outstanding�Shares;�and�
-
(iv) the�total�number�of�Shares�issuable�to�any�Consultant,�together�with�Shares� issuable�to�such�Consultant�under�all�of�the�Company’s�other�Security�Based� Compensation�Arrangements,�shall�not�exceed�two�(2%)�percent�of�the�issued�and� outstanding�Shares�in�any�twelve�month�period;�and�
-
(c) the�total�number�of�Shares�issuable�to�Persons�performing�Investor�Relations�Activities,� together�with�Shares�issuable�to�Persons�performing�Investor�Relations�Activities�under�all� of�the�Company’s�other�Security�Based�Compensation�Arrangements,�shall�not�exceed� two�(2%)�percent�of�the�issued�and�outstanding�Shares�in�any�twelve�month�period.�
4.2 Accounting�for�Awards�
For�purposes�of�this�Section�4:�
-
(a) if�an�Award�is�denominated�in�Shares,�the�number�of�Shares�covered�by�such�Award,�or�to� which�such�Award�relates,�shall�be�counted�on�the�Grant�Date�of�such�Award�against�the� aggregate�number�of�Shares�available�for�granting�Awards�under�this�Plan;�and�
-
(b) notwithstanding�anything�herein�to�the�contrary,�any�Shares�related�to�Awards�which� terminate�by�expiration,�forfeiture,�cancellation,�or�otherwise�without�the�issuance�of�such� Shares,�or�are�exchanged�with�the�Board’s�permission,�prior�to�the�issuance�of�Shares,�for� Awards�not�involving�Shares,�shall�be�available�again�for�granting�Awards�under�this�Plan.�
4.3 Anti�Dilution�
If�the�number�of�outstanding�Shares�is�increased�or�decreased�as�a�result�of�a�stock�split,� consolidation�or�recapitalization�and�not�as�a�result�of�the�issuance�of�Shares�for�additional�
6�
consideration�or�by�way�of�stock�dividend,�the�Board�may�make�appropriate�adjustments�to�the� number�and�price�(or�other�basis�upon�which�an�Award�is�measured)�of�Options,�Restricted�Share� Units�and/or�Performance�Share�Units�credited�to�a�Participant.�Any�determinations�by�the�Board� as�to�the�required�adjustments�shall�be�made�in�its�sole�discretion�and�all�such�adjustments�shall�be� conclusive�and�binding�for�all�purposes�under�this�Plan.�
SECTION�5� AWARDS�
5.1 Options�
-
(a) Eligibility�and�Participation���Subject�to�the�provisions�of�this�Plan�and�such�other�terms�and� conditions�as�the�Board�may�prescribe,�the�Board�may,�from�time�to�time,�grant�Awards�of� Options�to�Directors,�Key�Employees�and�Consultants.�Options�granted�to�a�Participant�shall� be�credited,�as�of�the�Grant�Date,�to�the�Participant’s�Account.�The�number�of�Options�to� be�credited�to�each�Participant�shall�be�determined�by�the�Board�in�its�sole�discretion�in� accordance�with�this�Plan.�Each�Option�shall,�contingent�upon�the�lapse�of�any�restrictions,� represent�one�(1)�Share.�The�number�of�Options�granted�pursuant�to�an�Award�shall�be� specified�in�the�applicable�Award�Agreement.�
-
(b) Exercise�Price� ��The�exercise�price�of�an�Option�granted�under�this�Plan�shall�not�be�less� than�the�Discounted�Market�Price,�provided�that:�
-
(i) while�the�Company�is�a�Capital�Pool�Company,�the�exercise�price�cannot�be�less� than�the�greater�of�the�per�Share�price�paid�by�the�public�investors�for�Shares� under�the�Company’s�initial�public�offering�and�the�Discounted�Market�Price;�
-
(ii) if�options�are�granted�within�90�days�of�a�distribution�by�a�prospectus,�the� minimum�exercise�price�of�those�options�will�be�the�greater�of�the�Discounted� Market�Price�and�the�per�share�price�paid�by�the�public�investors�for�Shares� acquired�under�the�distribution;�
-
(iii) the�90�day�period�begins�on�the�date�a�final�receipt�is�issued�for�the�prospectus;�
-
(iv) for�unit�offerings,�the�minimum�option�exercise�price�will�be�the�“base”�(or� imputed)�price�of�the�shares�included�in�the�unit;�and�
-
(v) for�all�other�financings,�the�minimum�exercise�price�will�be�the�average�price�paid� by�the�public�investors.�
-
(c) Expiry�Date� ��Each�Option�shall,�unless�sooner�terminated,�expire�on�a�date�to�be� determined�by�the�Board�which�will�not�exceed�10�years.�
-
(d) Different�Exercise�Periods,�Prices�and�Number���The�Board�may,�in�its�absolute�discretion,� upon�granting�Options�under�this�Plan,�specify�different�time�periods�following�the�dates�of� granting�the�Options�during�which�the�Participant�may�exercise�their�Options�to�purchase� Shares�and�may�designate�different�exercise�prices�and�numbers�of�Shares�in�respect�of� which�each�Participant�may�exercise�his�option�during�each�respective�time�period.�
-
(e) Vesting���Subject�to�the�discretion�of�the�Board,�the�Options�granted�to�a�Participant�under� this�Plan�shall�fully�vest�on�the�date�of�grant�of�such�Options.�In�accordance�with�the� policies�of�the�Exchange,�and�subject�to�their�approval�to�the�contrary,�Options�issued�to�
7�
Consultants�conducting�Investor�Relations�Activities�must�vest�(and�not�otherwise�be� exercisable)�in�stages�over�a�minimum�of�12�months�with�no�more�than�1/4�of�the�Options� vesting�in�any�3�month�period.�
-
(f) Change�of�Control�–�If�the�Award�Agreement�so�provides,�in�the�event�of�a�Change�of� Control,�all�Options�granted�to�a�Participant�shall�become�fully�vested�in�such�Participant� and�shall�become�exercisable�by�the�Participant�in�accordance�with�the�terms�of�the�Award� Agreement�and�Section�5.1(n)�hereof.�
-
(g) Death���Other�than�as�may�be�set�forth�in�the�applicable�Award�Agreement,�upon�the�death� of�a�Participant,�any�Options�granted�to�such�Participant�which,�prior�to�the�Participant’s� death,�have�not�vested,�will�be�immediately�and�automatically�forfeited�and�cancelled� without�further�action�and�without�any�cost�or�payment,�and�the�Participant�or�his�or�her� estate,�as�the�case�may�be,�shall�have�no�right,�title�or�interest�therein�whatsoever.�Any� Options�granted�to�such�Participant�which,�prior�to�the�Participant’s�death,�had�vested� pursuant�to�the�terms�of�the�applicable�Award�Agreement�will�accrue�to�the�Participant’s� estate�in�accordance�with�Section�5.1(n)�hereof.�
(h) Termination�of�Employment
-
(i) Where,�in�the�case�of�a�Key�Employee,�a�Participant’s�employment�is�terminated�by� the�Company�or�a�Subsidiary�for�cause,�all�Options�granted�to�the�Participant�under� this�Plan�will�immediately�terminate�without�payment,�be�forfeited�and�cancelled� and�shall�be�of�no�further�force�or�effect�as�of�the�Termination�Date.�
-
(ii) Where,�in�the�case�of�a�Key�Employee,�a�Participant’s�employment�terminates�by� reason�of�termination�by�the�Company�or�a�Subsidiary�without�cause,�by�voluntary� termination�or�due�to�Retirement�by�the�Participant,�all�Options�granted�to�the� Participant�under�this�Plan�that�have�not�vested�will,�unless�the�applicable�Award� Agreement�provides�otherwise�and�subject�to�the�provisions�below,�immediately� terminate�without�payment,�be�forfeited�and�cancelled�and�shall�be�of�no�further� force�or�effect�as�of�the�Termination�Date;� provided,�however ,�that�any�Options� granted�to�such�Participant�which,�prior�to�the�Participant’s�termination�without� cause,�voluntary�termination�or�Retirement,�had�vested�pursuant�to�the�terms�of� the�applicable�Award�Agreement�will�accrue�to�the�Participant�in�accordance�with� Section�5.1(n)�hereof�and�shall�be�exercisable�by�such�Participant�for�a�period�of�90� days�following�the�date�the�Participant�ceased�to�be�an�employee,�or�such�longer� period�as�may�be�provided�for�in�the�Award�Agreement.�
-
(iii) Upon�termination�of�a�Participant’s�employment�with�the�Company�or�a�Subsidiary,� the�Participant’s�eligibility�to�receive�further�grants�of�Awards�of�Options�under�this� Plan�shall�cease�as�of�the�Termination�Date.�
-
(i) Disability���Where,�in�the�case�of�a�Key�Employee,�a�Participant�becomes�afflicted�by�a� Disability,�all�Options�granted�to�the�Participant�under�this�Plan�will�continue�to�vest�in� accordance�with�the�terms�of�such�Options;� provided,�however ,�that�no�Options�may�be� redeemed�during�a�leave�of�absence.�Where�a�Key�Employee’s�employment�is�terminated� due�to�Disability,�all�Options�granted�to�the�Participant�under�this�Plan�that�have�not�vested� will,�unless�the�applicable�Award�Agreement�provides�otherwise�and�subject�to�the� provisions�below,�immediately�terminate�without�payment,�be�forfeited�and�cancelled�and� shall�be�of�no�further�force�or�effect�as�of�the�Termination�Date;� provided,�however ,�that� any�Options�granted�to�such�Participant�which,�prior�to�the�Participant’s�termination�due�to�
8�
Disability,�had�vested�pursuant�to�terms�of�the�applicable�Award�Agreement�will�accrue�to� the�Participant�in�accordance�with�Section�5.1(n)�hereof�and�shall�be�exercisable�by�such� Participant�for�a�period�of�90�days�following�the�date�the�Termination�Date,�or�such�longer� period�as�may�be�provided�for�in�the�Award�Agreement.�
-
(j) Cessation�of�Directorship���Where,�in�the�case�of�Directors,�a�Participant�ceases�to�be�a� Director�for�any�reason,�any�Options�granted�to�the�Participant�under�this�Plan�that�have� not�yet�vested�will,�unless�the�applicable�Award�Agreement�provides�otherwise�and�subject� to�the�provisions�below,�immediately�terminate�without�payment,�be�forfeited�and� cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the�date�the�Participant�ceases�to� be�a�Director;� provided,�however ,�that�any�Options�granted�to�such�Participant�which,�prior� to�the�Participant�ceasing�to�be�a�Director�for�any�reason,�had�vested�pursuant�to�the�terms� of�the�applicable�Award�Agreement�will�accrue�to�the�Participant�in�accordance�with� Section�5.1(n)�hereof�and�shall�be�exercisable�by�such�Participant�for�a�period�of�90�days� following�the�date�the�Participant�ceased�to�be�a�Director,�or�such�longer�period�as�may�be� provided�for�in�the�Award�Agreement.�
-
(k) Termination�of�Service���Where,�in�the�case�of�Consultants,�a�Participant’s�service�to�the� Company�terminates�for�any�reason,�subject�to�the�applicable�Award�Agreement�and�any� other�contractual�commitments�between�the�Participant�and�the�Company,�any�Options� granted�to�the�Participant�under�this�Plan�that�have�not�yet�vested�will�be�forfeited�and� cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the�date�of�termination�of�service;� provided,�howeve r,�that�any�Options�granted�to�such�Participant�which,�prior�to�the� termination�of�the�Participant’s�service�to�the�Company�for�any�reason,�had�vested� pursuant�to�the�terms�of�the�applicable�Award�Agreement�will�accrue�to�the�Participant�in� accordance�with�Section�5.1(n)�hereof�and�shall�be�exercisable�by�such�Participant�for�a� period�of�30�days�following�the�date�the�Participant�ceased�to�be�a�Consultant,�or�such� longer�period�as�may�be�provided�for�in�the�Award�Agreement.�
-
(l) Hold�Period���In�addition�to�any�resale�restrictions�under�applicable�legislation,�all�Options� granted�hereunder�and�all�Shares�issued�on�the�exercise�of�such�Options�will,�if�applicable� under�the�policies�of�the�Exchange,�be�subject�to�a�four�month�TSX�Venture�Exchange�hold� period�from�the�date�the�options�are�granted,�and�the�stock�option�agreements�and�the� certificates�representing�such�Shares�will�bear�the�following�legend:�
-
“Without�prior�written�approval�of�the�Exchange�and�compliance� with�all�applicable�securities�legislation,�the�securities�represented� by�this�certificate�may�not�be�sold,�transferred,�hypothecated�or� otherwise�traded�on�or�through�the�facilities�of�the�TSX�Venture� Exchange�or�otherwise�in�Canada�or�to�or�for�the�benefit�of�a� Canadian�resident�until�[insert�date].”�
-
(m) Notice���Options�shall�be�exercised�only�in�accordance�with�the�terms�and�conditions�of�the� Award�Agreements�under�which�they�are�respectively�granted�and�shall�be�exercisable�only� by�notice�in�writing�to�the�Company�at�its�principal�place�of�business.�
-
(n) Payment�of�Award���Subject�to�any�vesting�or�other�limitations�described�in�each�individual� Award�Agreement,�Options�may�be�exercised�in�whole�or�in�part�at�any�time�prior�to�their� lapse�or�termination,�or�if�Section�5.1(g)�applies,�to�the�Participant’s�estate,�a�number�of� Shares�equal�to�the�number�of�Options�credited�to�the�Participant’s�Account�that�become� exercisable�on�the�Vesting�Date.��The�exercise�price�of�all�Options�must�be�paid�in�cash.�
9�
Shares�purchased�by�a�Participant�on�exercise�of�an�Option�shall�be�paid�for�in�full�at�the� time�of�their�purchase�(i.e.�concurrently�with�the�giving�of�the�requisite�notice).�
5.2 Restricted�Share�Units�
-
(a) Eligibility�and�Participation���Subject�to�the�provisions�of�this�Plan�and�such�other�terms�and� conditions�as�the�Board�may�prescribe,�the�Board�may,�from�time�to�time,�grant�Awards�of� Restricted�Share�Units�to�Directors,�Key�Employees�and�Consultants.�Restricted�Share�Units� granted�to�a�Participant�shall�be�credited,�as�of�the�Grant�Date,�to�the�Participant’s�Account.� The�number�of�Restricted�Share�Units�to�be�credited�to�each�Participant�shall�be� determined�by�the�Board�in�its�sole�discretion�in�accordance�with�this�Plan.�Each�Restricted� Share�Unit�shall,�contingent�upon�the�lapse�of�any�restrictions,�represent�one�(1)�Share.�The� number�of�Restricted�Share�Units�granted�pursuant�to�an�Award�and�the�Restriction�Period� in�respect�of�such�Restricted�Share�Units�shall�be�specified�in�the�applicable�Award� Agreement.�
-
(b) Restrictions���Restricted�Share�Units�shall�be�subject�to�such�restrictions�as�the�Board,�in�its� sole�discretion,�may�establish�in�the�applicable�Award�Agreement,�which�restrictions�may� lapse�separately�or�in�combination�at�such�time�or�times�and�on�such�terms,�conditions�and� satisfaction�of�objectives�as�the�Board�may,�in�its�discretion,�determine�at�the�time�an� Award�is�granted.�
-
(c) Vesting���All�Restricted�Share�Units�will�vest�and�become�payable�by�the�issuance�of�Shares� at�the�end�of�the�Restriction�Period�if�all�applicable�restrictions�have�lapsed,�as�such� restrictions�may�be�specified�in�the�Award�Agreement.�
-
(d) Change�of�Control���In�the�event�of�a�Change�of�Control,�all�restrictions�upon�any�Restricted� Share�Units�shall�lapse�immediately�and�all�such�Restricted�Share�Units�shall�become�fully� vested�in�the�Participant�and�will�accrue�to�the�Participant�in�accordance�with�Section�5.2(j)� hereof.�
-
(e) Death���Other�than�as�may�be�set�forth�in�the�applicable�Award�Agreement,�upon�the�death� of�a�Participant,�any�Restricted�Share�Units�granted�to�such�Participant�which,�prior�to�the� Participant’s�death,�have�not�vested,�will�be�immediately�and�automatically�forfeited�and� cancelled�without�further�action�and�without�any�cost�or�payment,�and�the�Participant�or� his�or�her�estate,�as�the�case�may�be,�shall�have�no�right,�title�or�interest�therein� whatsoever.�Any�Restricted�Share�Units�granted�to�such�Participant�which,�prior�to�the� Participant’s�death,�had�vested�pursuant�to�the�terms�of�the�applicable�Award�Agreement� will�accrue�to�the�Participant’s�estate�in�accordance�with�Section�5.2(j)�hereof.�
(f) Termination�of�Employment�
-
(i) Where,�in�the�case�of�a�Key�Employee,�a�Participant’s�employment�is�terminated�by� the�Company�or�a�Subsidiary�for�cause,�all�Restricted�Share�Units�granted�to�the� Participant�under�this�Plan�will�immediately�terminate�without�payment,�be� forfeited�and�cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the� Termination�Date.�
-
(ii) Where,�in�the�case�of�a�Key�Employee,�a�Participant’s�employment�terminates�by� reason�of�termination�by�the�Company�or�a�Subsidiary�without�cause,�by�voluntary� termination�or�due�to�Retirement�by�the�Participant,�all�Restricted�Share�Units� granted�to�the�Participant�under�this�Plan�that�have�not�vested�will,�unless�the�
10�
applicable�Award�Agreement�provides�otherwise�and�subject�to�the�provisions� below,�immediately�terminate�without�payment,�be�forfeited�and�cancelled�and� shall�be�of�no�further�force�or�effect�as�of�the�Termination�Date;� provided,�however ,� that�any�Restricted�Share�Units�granted�to�such�Participant�which,�prior�to�the� Participant’s�termination�without�cause,�voluntary�termination�or�Retirement,�had� vested�pursuant�to�the�terms�of�the�applicable�Award�Agreement�will�accrue�to�the� Participant�in�accordance�with�Section�5.2(j)�hereof.�
-
(iii) Upon�termination�of�a�Participant’s�employment�with�the�Company�or�a�Subsidiary,� the�Participant’s�eligibility�to�receive�further�grants�of�Awards�of�Restricted�Share� Units�under�this�Plan�shall�cease�as�of�the�Termination�Date.�
-
(g) Disability���Where,�in�the�case�of�a�Key�Employee,�a�Participant�becomes�afflicted�by�a� Disability,�all�Restricted�Share�Units�granted�to�the�Participant�under�this�Plan�will�continue� to�vest�in�accordance�with�the�terms�of�such�Restricted�Share�Units;� provided,�however ,� that�no�Restricted�Share�Units�may�be�redeemed�during�a�leave�of�absence.�Where�a�Key� Employee’s�employment�is�terminated�due�to�Disability,�all�Restricted�Share�Units�granted� to�the�Participant�under�this�Plan�that�have�not�vested�will,�unless�the�applicable�Award� Agreement�provides�otherwise�and�subject�to�the�provisions�below,�immediately�terminate� without�payment,�be�forfeited�and�cancelled�and�shall�be�of�no�further�force�or�effect�as�of� the�Termination�Date;� provided,�however ,�that�any�Restricted�Share�Units�granted�to�such� Participant�which,�prior�to�the�Participant’s�termination�due�to�Disability,�had�vested� pursuant�to�terms�of�the�applicable�Award�Agreement�will�accrue�to�the�Participant�in� accordance�with�Section�5.2(j)�hereof.�
-
(h) Cessation�of�Directorship���Where,�in�the�case�of�Directors,�a�Participant�ceases�to�be�a� Director�for�any�reason,�any�Restricted�Share�Units�granted�to�the�Participant�under�this� Plan�that�have�not�yet�vested�will,�unless�the�applicable�Award�Agreement�provides� otherwise�and�subject�to�the�provisions�below,�immediately�terminate�without�payment,� be�forfeited�and�cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the�date�the� Participant�ceases�to�be�a�Director;� provided,�however ,�that�any�Restricted�Share�Units� granted�to�such�Participant�which,�prior�to�the�Participant�ceasing�to�be�a�Director�for�any� reason,�had�vested�pursuant�to�the�terms�of�the�applicable�Award�Agreement�will�accrue�to� the�Participant�in�accordance�with�Section�5.2(j)�hereof.�
-
(i) Termination�of�Service���Where,�in�the�case�of�Consultants,�a�Participant’s�service�to�the� Company�terminates�for�any�reason,�subject�to�the�applicable�Award�Agreement�and�any� other�contractual�commitments�between�the�Participant�and�the�Company,�any�Restricted� Share�Units�granted�to�the�Participant�under�this�Plan�that�have�not�yet�vested�will�be� forfeited�and�cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the�date�of� termination�of�service;� provided,�howeve r,�that�any�Restricted�Share�Units�granted�to�such� Participant�which,�prior�to�the�termination�of�the�Participant’s�service�to�the�Company�for� any�reason,�had�vested�pursuant�to�the�terms�of�the�applicable�Award�Agreement�will� accrue�to�the�Participant�in�accordance�with�Section�5.2(j)�hereof.�
-
(j) Payment�of�Award���As�soon�as�practicable�after�each�Vesting�Date�of�an�Award�of� Restricted�Share�Units,�the�Company�shall�issue�from�treasury�to�the�Participant,�or�if� Section�5.2(e)�applies,�to�the�Participant’s�estate,�a�number�of�Shares�equal�to�the�number� of�Restricted�Share�Units�credited�to�the�Participant’s�Account�that�become�payable�on�the� Vesting�Date.�As�of�the�Vesting�Date,�the�Restricted�Share�Units�in�respect�of�which�such� Shares�are�issued�shall�be�cancelled�and�no�further�payments�shall�be�made�to�the� Participant�under�this�Plan�in�relation�to�such�Restricted�Share�Units.�
11�
5.3 Performance�Share�Units�
-
(a) Eligibility�and�Participation���Subject�to�the�provisions�of�this�Plan�and�such�other�terms�and� conditions�as�the�Board�may�prescribe,�the�Board�may,�from�time�to�time,�grant�Awards�of� Performance�Share�Units�to�Key�Employees�and�Consultants.�Performance�Share�Units� granted�to�a�Participant�shall�be�credited,�as�of�the�Grant�Date,�to�the�Participant’s�Account.� The�number�of�Performance�Share�Units�to�be�credited�to�each�Participant�shall�be� determined�by�the�Board,�in�its�sole�discretion,�in�accordance�with�this�Plan.�Each� Performance�Share�Unit�shall,�contingent�upon�the�attainment�of�the�Performance�Criteria� within�the�Performance�Cycle,�represent�one�(1)�Share.�The�number�of�Performance�Share� Units�granted�pursuant�to�an�Award,�the�Performance�Criteria�which�must�be�satisfied�in� order�for�the�Performance�Share�Units�to�vest�and�the�Performance�Cycle�in�respect�of�such� Performance�Share�Units�shall�be�specified�in�the�applicable�Award�Agreement.�
-
(b) Performance�Criteria���The�Board�will�select,�settle�and�determine�the�Performance�Criteria� (including�without�limitation�the�attainment�thereof),�for�purposes�of�the�vesting�of�the� Performance�Share�Units,�in�its�sole�discretion.�An�Award�Agreement�may�provide�the� Board�with�the�right,�during�a�Performance�Cycle�or�after�it�has�ended,�to�revise�the� Performance�Criteria�and�the�Award�amounts�if�unforeseen�events�(including,�without� limitation,�changes�in�capitalization,�an�equity�restructuring,�an�acquisition�or�a�divestiture)� occur�which�have�a�substantial�effect�on�the�financial�results�and�which�in�the�sole� judgment�of�the�Board�make�the�application�of�the�Performance�Criteria�unfair�unless�a� revision�is�made.�Notices�will�be�provided�by�the�Company�to�applicable�regulatory� authorities�or�stock�exchanges�as�may�be�required�with�respect�to�the�foregoing.�
-
(c) Vesting���All�Performance�Share�Units�will�vest�and�become�payable�to�the�extent�that�the� Performance�Criteria�set�forth�in�the�Award�Agreement�are�satisfied�for�the�Performance� Cycle,�the�determination�of�which�satisfaction�shall�be�made�by�the�Board�on�the� Determination�Date.�
-
(d) Change�of�Control�–�If�the�Award�Agreement�so�provides,�in�the�event�of�a�Change�of� Control,�all�Performance�Share�Units�granted�to�a�Participant�shall�become�fully�vested�in� such�Participant�(without�regard�to�the�attainment�of�any�Performance�Criteria)�and�shall� become�payable�to�the�Participant�in�accordance�with�Section�5.3(i)�hereof.�
-
(e) Death���Other�than�as�may�be�set�forth�in�the�applicable�Award�Agreement�and�below,� upon�the�death�of�a�Participant,�all�Performance�Share�Units�granted�to�the�Participant� which,�prior�to�the�Participant’s�death,�have�not�vested,�will�immediately�and�automatically� be�forfeited�and�cancelled�without�further�action�and�without�any�cost�or�payment,�and�the� Participant�or�his�or�her�estate,�as�the�case�may�be,�shall�have�no�right,�title�or�interest� therein�whatsoever;� provided,�however ,�the�Board�may�determine,�in�its�sole�discretion,�the� number�of�the�Participant’s�Performance�Share�Units�that�will�vest�based�on�the�extent�to� which�the�applicable�Performance�Criteria�set�forth�in�the�Award�Agreement�have�been� satisfied�in�that�portion�of�the�Performance�Cycle�that�has�lapsed.�The�Performance�Share� Units�that�the�Board�determines�to�have�vested�shall�become�payable�in�accordance�with� Section�5.3(i)�hereof.�
(f) Termination�of�Employment�
- (i) Where,�in�the�case�of�Key�Employees,�a�Participant’s�employment�is�terminated�by� the�Company�or�a�Subsidiary�for�cause,�all�Performance�Share�Units�granted�to�the� Participant�under�this�Plan�will�immediately�terminate�without�payment,�be�
12�
forfeited�and�cancelled�and�shall�be�of�no�further�force�or�effect�as�of�the� Termination�Date.�
-
(ii) Where,�in�the�case�of�Key�Employees,�other�than�as�may�be�set�forth�in�the� applicable�Award�Agreement�and�below,�a�Participant’s�employment�is�terminated� by�the�Company�or�a�Subsidiary�without�cause,�by�voluntary�termination�or�due�to� Retirement,�all�Performance�Share�Units�granted�to�the�Participant�which,�prior�to� the�Participant’s�termination,�have�not�vested,�will�immediately�and�automatically� be�forfeited�and�cancelled�without�further�action�and�without�any�cost�or�payment,� and�the�Participant�shall�have�no�right,�title�or�interest�therein�whatsoever�as�of�the� Termination�Date;� provided,�however ,�the�Board�may�determine,�in�its�sole� discretion,�the�number�of�the�Participant’s�Performance�Share�Units�that�will�vest� based�on�the�extent�to�which�the�applicable�Performance�Criteria�set�forth�in�the� Award�Agreement�have�been�satisfied�in�that�portion�of�the�Performance�Cycle�that� has�lapsed.�The�Performance�Share�Units�that�the�Board�determines�to�have�vested� shall�become�payable�in�accordance�with�Section�5.3(i)�hereof.�
-
(iii) In�the�case�of�Key�Employees,�upon�termination�of�a�Participant’s�employment�with� the�Company�or�a�Subsidiary,�the�Participant’s�eligibility�to�receive�further�grants�of� Awards�of�Performance�Share�Units�under�this�Plan�shall�cease�as�of�the� Termination�Date.�
-
(g) Disability���Where�a�Participant�becomes�afflicted�by�a�Disability,�all�Performance�Share� Units�granted�to�the�Participant�under�this�Plan�will�continue�to�vest�in�accordance�with�the� terms�of�such�Performance�Share�Units;� provided,�however ,�that�no�Performance�Share� Units�may�be�redeemed�during�a�leave�of�absence.�Where�a�Participant’s�employment�is� terminated�due�to�Disability,�all�Performance�Share�Units�granted�to�the�Participant�under� this�Plan�that�have�not�vested�will,�unless�the�applicable�Award�Agreement�provides� otherwise�and�subject�to�the�provisions�below,�immediately�and�automatically�be�forfeited� and�cancelled�without�further�action�and�without�any�cost�or�payment,�and�the�Participant� shall�have�no�right,�title�or�interest�therein�whatsoever�as�of�the�Termination�Date;� provided,�however ,�that�the�Board�may�determine,�in�its�sole�discretion,�the�number�of�the� Participant’s�Performance�Share�Units�that�will�vest�based�on�the�extent�to�which�the� applicable�Performance�Criteria�set�forth�in�the�Award�Agreement�have�been�satisfied�in� that�portion�of�the�Performance�Cycle�that�has�lapsed.�The�Performance�Share�Units�that� the�Board�determines�to�have�vested�shall�become�payable�in�accordance�with� Section�5.3(i)�hereof.�
-
(h) Termination�of�Service���Where,�in�the�case�of�Consultants,�a�Participant’s�service�to�the� Company�terminates�for�any�reason,�subject�to�the�applicable�Award�Agreement�and�any� other�contractual�commitments�between�the�Participant�and�the�Company,�all� Performance�Share�Units�granted�to�the�Participant�under�this�Plan�that�have�not�vested� will,�unless�the�applicable�Award�Agreement�provides�otherwise�and�subject�to�the� provisions�below,�immediately�and�automatically�be�forfeited�and�cancelled�without�further� action�and�without�any�cost�or�payment,�and�the�Participant�shall�have�no�right,�title�or� interest�therein�whatsoever�as�of�the�Termination�Date;� provided,�however ,�that�the�Board� may�determine,�in�its�sole�discretion,�the�number�of�the�Participant’s�Performance�Share� Units�that�will�vest�based�on�the�extent�to�which�the�applicable�Performance�Criteria�set� forth�in�the�Award�Agreement�have�been�satisfied�in�that�portion�of�the�Performance�Cycle� that�has�lapsed.�The�Performance�Share�Units�that�the�Board�determines�to�have�vested� shall�become�payable�in�accordance�with�Section�5.3(i)�hereof.�
13�
- (i) Payment�of�Award���Payment�to�Participants�in�respect�of�vested�Performance�Share�Units� shall�be�made�after�the�Determination�Date�for�the�applicable�Award�and�in�any�case�within� ninety�five�(95)�days�after�the�last�day�of�the�Performance�Cycle�to�which�such�Award� relates.�Such�payments�shall�be�made�entirely�in�Shares.�The�Company�shall�issue�from� treasury�to�the�Participant,�or�if�Section�5.3(e)�applies,�to�the�Participant’s�estate,�a�number� of�Shares�equal�to�the�number�of�Performance�Share�Units�that�have�vested.�As�of�the� Vesting�Date,�the�Performance�Share�Units�in�respect�of�which�such�Shares�are�issued�shall� be�cancelled�and�no�further�payments�shall�be�made�to�the�Participant�under�this�Plan�in� relation�to�such�Performance�Share�Units.�
5.4 General�Terms�Applicable�to�Awards�
-
(a) Forfeiture�Events���The�Board�will�specify�in�an�Award�Agreement�at�the�time�of�the�Award� that�the�Participant’s�rights,�payments�and�benefits�with�respect�to�an�Award�shall�be� subject�to�reduction,�cancellation,�forfeiture�or�recoupment�upon�the�occurrence�of�certain� specified�events,�in�addition�to�any�otherwise�applicable�vesting�or�performance�conditions� of�an�Award.�Such�events�shall�include,�but�shall�not�be�limited�to,�termination�of� employment�for�cause,�violation�of�material�Company�policies,�fraud,�breach�of� non�competition,�confidentiality�or�other�restrictive�covenants�that�may�apply�to�the� Participant�or�other�conduct�by�the�Participant�that�is�detrimental�to�the�business�or� reputation�of�the�Company.�
-
(b) Awards�May�be�Granted�Separately�or�Together���Awards�may,�in�the�discretion�of�the� Board,�be�granted�either�alone�or�in�addition�to,�in�tandem�with,�or�in�substitution�for�any� other�Award�or�any�award�granted�under�any�other�Security�Based�Compensation� Arrangement�of�the�Company.�Awards�granted�in�addition�to�or�in�tandem�with�other� Awards,�or�in�addition�to�or�in�tandem�with�awards�granted�under�any�other�Security�Based� Compensation�Arrangement�of�the�Company,�may�be�granted�either�at�the�same�time�as�or� at�a�different�time�from�the�grant�of�such�other�Awards�or�awards.�
-
(c) Non�Transferability�of�Awards���Except�as�otherwise�provided�in�an�Award�Agreement�or� determined�by�the�Board�in�its�sole�discretion,�no�Award�and�no�right�under�any�such� Award,�shall�be�assignable,�alienable,�saleable,�or�transferable�by�a�Participant�otherwise� than�by�will�or�by�the�laws�of�descent�and�distribution.�No�Award�and�no�right�under�any� such�Award,�may�be�pledged,�alienated,�attached,�or�otherwise�encumbered,�and�any� purported�pledge,�alienation,�attachment,�or�encumbrance�thereof�shall�be�void�and� unenforceable�against�the�Company.�
-
(d) Conditions�and�Restrictions�Upon�Securities�Subject�to�Awards���The�Board�may�provide� that�the�Shares�issued�under�an�Award�shall�be�subject�to�such�further�agreements,� restrictions,�conditions�or�limitations�as�the�Board�in�its�sole�discretion�may�specify,� including�without�limitation,�conditions�on�vesting�or�transferability�and�forfeiture�or� repurchase�provisions�or�provisions�on�payment�of�taxes�arising�in�connection�with�an� Award.�Without�limiting�the�foregoing,�such�restrictions�may�address�the�timing�and� manner�of�any�resales�by�the�Participant�or�other�subsequent�transfers�by�the�Participant�of� any�Shares�issued�under�an�Award,�including�without�limitation:�
-
(i) restrictions�under�an�insider�trading�policy�or�pursuant�to�applicable�law;�
-
(ii) restrictions�designed�to�delay�and/or�coordinate�the�timing�and�manner�of�sales�by� Participant�and�holders�of�other�Security�Based�Compensation�Arrangements;�
14�
-
(iii) restrictions�as�to�the�use�of�a�specified�brokerage�firm�for�such�resales�or�other� transfers;�and�
-
(iv) provisions�requiring�Shares�to�be�sold�on�the�open�market�or�to�the�Company�in� order�to�satisfy�tax�withholding�or�other�obligations.�
-
(e) Share�Certificates���All�Shares�delivered�under�this�Plan�pursuant�to�any�Award�shall�be� subject�to�such�stop�transfer�orders�and�other�restrictions�as�the�Board�may�deem� advisable�under�this�Plan�or�the�rules,�regulations,�and�other�requirements�of�any�securities� commission,�the�Exchange,�and�any�applicable�securities�legislation,�regulations,�rules,� policies�or�orders,�and�the�Board�may�cause�a�legend�or�legends�to�be�put�on�any�such� certificates�to�make�appropriate�reference�to�such�restrictions.�
-
(f) Conformity�to�Plan���In�the�event�that�an�Award�is�granted�which�does�not�conform�in�all� particulars�with�the�provisions�of�this�Plan,�or�purports�to�grant�an�Award�on�terms� different�from�those�set�out�in�this�Plan,�the�Award�shall�not�be�in�any�way�void�or� invalidated,�but�the�Award�shall�be�adjusted�to�become,�in�all�respects,�in�conformity�with� this�Plan.�
5.5 General�Terms�Applicable�to�Performance�Based�Awards�
-
(a) Performance�Evaluation;�Adjustment�of�Goals���At�the�time�that�a�Performance�Based� Award�is�first�issued,�the�Board,�in�the�Award�Agreement�or�in�another�written�document,� shall�specify�whether�performance�will�be�evaluated�including�or�excluding�the�effect�of�any� of�the�following�events�that�occur�during�the�Performance�Cycle�or�Restriction�Period,�as� the�case�may�be:�
-
(i) judgments�entered�or�settlements�reached�in�litigation;�
-
(ii) the�write�down�of�assets;�
-
(iii) the�impact�of�any�reorganization�or�restructuring;�
-
(iv) the�impact�of�changes�in�tax�laws,�accounting�principles,�regulatory�actions�or�other� laws�affecting�reported�results;�
-
(v) extraordinary�non�recurring�items�as�may�be�described�in�the�Company’s� management’s�discussion�and�analysis�of�financial�condition�and�results�of� operations�for�the�applicable�financial�year;�
-
(vi) the�impact�of�any�mergers,�acquisitions,�spin�offs�or�other�divestitures;�and�
-
(vii) foreign�exchange�gains�and�losses.�
-
(b) Adjustment�of�Performance�Based�Awards���The�Board�shall�have�the�sole�discretion�to� adjust�the�determinations�of�the�degree�of�attainment�of�the�pre�established�Performance� Criteria�or�restrictions,�as�the�case�may�be,�as�may�be�set�out�in�the�applicable�Award� Agreement�governing�the�relevant�Performance�Based�Award.�Notwithstanding�any� provision�herein�to�the�contrary,�the�Board�may�not�make�any�adjustment�or�take�any�other� action�with�respect�to�any�Performance�Based�Award�that�will�increase�the�amount�payable� under�any�such�Award.�The�Board�shall�retain�the�sole�discretion�to�adjust�Performance�
15�
Based�Awards�downward�or�to�otherwise�reduce�the�amount�payable�with�respect�to�any� Performance�Based�Award.�
SECTION�6� AMENDMENT�AND�TERMINATION�
6.1 Amendments�and�Termination�of�this�Plan�
The�Board�may�at�any�time�or�from�time�to�time,�in�its�sole�and�absolute�discretion�and�without�the� approval�of�shareholders�of�the�Company,�amend,�suspend,�terminate�or�discontinue�this�Plan�and� may�amend�the�terms�and�conditions�of�any�Awards�granted�hereunder,�subject�to:�
-
(a) any�required�approval�of�any�applicable�regulatory�authority�or�the�Exchange;�and�
-
(b) any�approval�of�shareholders�of�the�Company�as�required�by�the�rules�of�the�Exchange�or� applicable�law,�provided�that�shareholder�approval�shall�not�be�required�for�the�following� amendments�and�the�Board�may�make�any�changes�which�may�include�but�are�not�limited� to:�
-
(i) amendments�of�a�“housekeeping�nature”;�
-
(ii) amendments�for�the�purpose�of�curing�any�ambiguity,�error�or�omission�in�this�Plan� or�to�correct�or�supplement�any�provision�of�this�Plan�that�is�inconsistent�with�any� other�provision�of�this�Plan;�
-
(iii) amendments�which�are�necessary�to�comply�with�applicable�law�or�the� requirements�of�the�Exchange;�
-
(iv) amendments�respecting�administration�and�eligibility�for�participation�under�this� Plan;�
-
(v) changes�to�the�terms�and�conditions�on�which�Awards�may�be�or�have�been� granted�pursuant�to�this�Plan�including�changes�to�the�vesting�provisions�and�terms� of�any�Awards;�
-
(vi) amendments�which�alter,�extend�or�accelerate�the�terms�of�vesting�applicable�to� any�Awards;�and�
-
(vii) changes�to�the�termination�provisions�of�an�Award�or�this�Plan�which�do�not�entail� an�extension�beyond�the�original�fixed�term.�
If�this�Plan�is�terminated,�prior�Awards�shall�remain�outstanding�and�in�effect�in�accordance� with�their�applicable�terms�and�conditions.�
6.2 Amendments�to�Awards�
The�Board�may�waive�any�conditions�or�rights�under,�amend�any�terms�of,�or�amend,�alter,� suspend,�discontinue,�or�terminate,�any�Awards�theretofore�granted,�prospectively�or�retroactively.� No�such�amendment�or�alteration�shall�be�made�which�would�impair�the�rights�of�any�Participant,� without�such�Participant’s�consent,�under�any�Award�theretofore�granted,�provided�that�no�such� consent�shall�be�required�with�respect�to�any�amendment�or�alteration�if�the�Board�determines�in� its�sole�discretion�that�such�amendment�or�alteration�either:�
16�
-
(a) is�required�or�advisable�in�order�for�the�Company,�this�Plan�or�the�Award�to�satisfy�or� conform�to�any�law�or�regulation�or�to�meet�the�requirements�of�any�accounting�standard;� or�
-
(b) is�not�reasonably�likely�to�significantly�diminish�the�benefits�provided�under�such�Award.�
SECTION�7� GENERAL�PROVISIONS�
7.1 No�Rights�to�Awards�
No�Director,�Key�Employee,�Consultant�or�other�Person�shall�have�any�claim�to�be�granted�any� Award�under�this�Plan,�or,�having�been�selected�to�receive�an�Award�under�this�Plan,�to�be�selected� to�receive�a�future�Award.�There�is�no�obligation�for�uniformity�of�treatment�of�Directors,�Key� Employees,�Consultant�or�holders�or�beneficiaries�of�Awards�under�this�Plan.�The�terms�and� conditions�of�Awards�need�not�be�the�same�with�respect�to�each�Participant.�
7.2 Withholding�
The�Company�shall�be�authorized�to�withhold�from�any�Award�granted�or�any�payment�due�or� transfer�made�under�any�Award�or�under�this�Plan�the�amount�(in�cash,�Shares,�other�securities,�or� other�Awards)�of�withholding�taxes�due�in�respect�of�an�Award,�its�exercise,�or�any�payment�or� transfer�under�such�Award�or�under�this�Plan�and�to�take�such�other�action�as�may�be�necessary�in� the�opinion�of�the�Company�to�satisfy�statutory�withholding�obligations�for�the�payment�of�such� taxes.�
7.3 No�Limit�on�Other�Security�Based�Compensation�Arrangements�
Nothing�contained�in�this�Plan�shall�prevent�the�Company�or�a�Subsidiary�from�adopting�or� continuing�in�effect�other�Security�Based�Compensation�Arrangements,�and�such�arrangements� may�be�either�generally�applicable�or�applicable�only�in�specific�cases.�
7.4 No�Right�to�Employment�
The�grant�of�an�Award�shall�neither�constitute�an�employment�contract�nor�be�construed�as�giving�a� Participant�the�right�to�be�retained�in�the�employ�of�the�Company.�Further,�the�Company�may�at� any�time�dismiss�a�Participant�from�employment,�free�from�any�liability,�or�any�claim�under�this� Plan,�unless�otherwise�expressly�provided�in�this�Plan�or�in�an�applicable�Award�Agreement.�
7.5 No�Right�as�Shareholder�
Neither�the�Participant�nor�any�representatives�of�a�Participant’s�estate�shall�have�any�rights� whatsoever�as�shareholders�in�respect�of�any�Shares�covered�by�such�Participant’s�Options,� Restricted�Share�Units�and/or�Performance�Share�Units�until�the�date�of�issuance�of�a�share� certificate�to�such�Participant�or�representatives�of�a�Participant’s�estate�for�such�Shares.�
7.6
Governing�Law�
This�Plan�and�all�of�the�rights�and�obligations�arising�herefrom�shall�be�interpreted�and�applied�in� accordance�with�the�laws�of�the�Province�of�British�Columbia�and�the�federal�laws�of�Canada� applicable�therein.�
Severability�
7.7
17�
If�any�provision�of�this�Plan�or�any�Award�is�or�becomes�or�is�deemed�to�be�invalid,�illegal,�or� unenforceable�in�any�jurisdiction,�or�as�to�any�Person�or�Award,�or�would�disqualify�this�Plan�or�any� Award�under�any�law�deemed�applicable�by�the�Board,�such�provision�shall�be�construed�or� deemed�amended�to�conform�to�applicable�laws,�or�if�it�cannot�be�so�construed�or�deemed� amended�without,�in�the�determination�of�the�Board,�materially�altering�the�intent�of�this�Plan�or� the�Award,�such�provision�shall�be�stricken�as�to�such�jurisdiction,�Person�or�Award,�and�the� remainder�of�this�Plan�and�any�such�Award�shall�remain�in�full�force�and�effect.�
7.8 No�Trust�or�Fund�Created�
Neither�this�Plan�nor�any�Award�shall�create�or�be�construed�to�create�a�trust�or�separate�fund�of� any�kind�or�a�fiduciary�relationship�between�the�Company�and�a�Participant�or�any�other�Person.�To� the�extent�that�any�Person�acquires�a�right�to�receive�payments�from�the�Company�pursuant�to�an� Award,�such�right�shall�be�no�greater�than�the�right�of�any�unsecured�creditor�of�the�Company.�
7.9
No�Fractional�Shares�
No�fractional�Shares�shall�be�issued�or�delivered�pursuant�to�this�Plan�or�any�Award,�and�the�Board� shall�determine�whether�cash,�or�other�securities�shall�be�paid�or�transferred�in�lieu�of�any� fractional�Shares,�or�whether�such�fractional�Shares�or�any�rights�thereto�shall�be�cancelled,� terminated,�or�otherwise�eliminated.�
7.10 Headings�
Headings�are�given�to�the�Sections�and�subsections�of�this�Plan�solely�as�a�convenience�to�facilitate� reference.�Such�headings�shall�not�be�deemed�in�any�way�material�or�relevant�to�the�construction� or�interpretation�of�this�Plan�or�any�provision�thereof.�
7.11 No�Representation�or�Warranty�
The�Company�makes�no�representation�or�warranty�as�to�the�value�of�any�Award�granted�pursuant� to�this�Plan�or�as�to�the�future�value�of�any�Shares�issued�pursuant�to�any�Award.�
7.12 No�Representations�or�Covenant�with�Respect�to�Tax�Qualification�
Although�the�Company�may,�in�its�discretion,�endeavor�to�(i)�qualify�an�Award�for�favourable� Canadian�tax�treatment�or�(ii)�avoid�adverse�tax�treatment,�the�Company�makes�no�representation� to�that�effect�and�expressly�disavows�any�covenant�to�maintain�favorable�or�avoid�unfavorable�tax� treatment.�The�Company�shall�be�unconstrained�in�its�corporate�activities�without�regard�to�the� potential�negative�tax�impact�on�holders�of�Awards�under�this�Plan.�
7.13
Conflict�with�Award�Agreement�
In�the�event�of�any�inconsistency�or�conflict�between�the�provisions�of�this�Plan�and�an�Award� Agreement,�the�provisions�of�this�Plan�shall�govern�for�all�purposes.�
7.14
Compliance�with�Laws�
The�granting�of�Awards�and�the�issuance�of�Shares�under�this�Plan�shall�be�subject�to�all�applicable� laws,�rules,�and�regulations,�and�to�such�approvals�by�any�governmental�agencies�or�stock� exchanges�on�which�the�Company�is�listed�as�may�be�required.�The�Company�shall�have�no� obligation�to�issue�or�deliver�evidence�of�title�for�Shares�issued�under�this�Plan�prior�to:�
18�
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(a) obtaining�any�approvals�from�governmental�agencies�that�the�Company�determines�are� necessary�or�advisable;�and�
-
(b) completion�of�any�registration�or�other�qualification�of�the�Shares�under�any�applicable� national�or�foreign�law�or�ruling�of�any�governmental�body�that�the�Company�determines�to� be�necessary�or�advisable�or�at�a�time�when�any�such�registration�or�qualification�is�not� current,�has�been�suspended�or�otherwise�has�ceased�to�be�effective.�
The�inability�or�impracticability�of�the�Company�to�obtain�or�maintain�authority�from�any�regulatory� body�having�jurisdiction,�which�authority�is�deemed�by�the�Company’s�counsel�to�be�necessary�to� the�lawful�issuance�and�sale�of�any�Shares�hereunder�shall�relieve�the�Company�of�any�liability�in� respect�of�the�failure�to�issue�or�sell�such�Shares�as�to�which�such�requisite�authority�shall�not�have� been�obtained.�
SECTION�8� EFFECTIVE�DATE�OF�THIS�PLAN�
8.1 Effective�Date�
This�Plan�shall�become�effective�upon�the�date�(the�“ Effective�Date ”)�of�approval�by�the�Board.�
SECTION�9� TERM�OF�THIS�PLAN�
9.1 Term�
This�Plan�shall�terminate�automatically�10�years�after�the�Effective�Date�and�may�be�terminated�on� any�earlier�date�as�provided�in�Section�6�hereof.�
19�