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Benz Mining Corp. Annual Report 2021

Aug 30, 2021

47017_rns_2021-08-30_6e129942-ce62-43cc-bacd-a0b743f0d2e8.pdf

Annual Report

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ARBN 642 228 804

Annual Report 2021

Contents Page

Section 1 – Corporate Directory

Section 2 – Review of Operations

Section 3 – Directors and Key Management Personnel

Section 4 – Mineral Resources Statement

Section 5 – Corporate Governance

Section 6 – ASX Additional Information

Section 7 – Consolidated Financial Statements for the Year Ended 30 April 2021

Section 8 – Schedule of Mining Claims

1. Corporate Directory

Directors

Mr Evan Cranston – Executive Chairman Mr Nick Tintor – Non-Executive Director Mr Peter Williams – Non-Executive Director Mr Mathew O’Hara – Non-Executive Director

Australian Legal Advisor HWL Ebsworth Lawyers Level 20, 240 St Georges Terrace Perth WA 6000

Canadian Legal Advisor

Chief Executive Officer Mr Xavier Braud

Company Secretary Ms Oonagh Malone

Registered Office: Australia Suite 23, 513 Hay Street Subiaco WA 6008 T: +61 (8) 6143 6702

Osler, Hoskin & Harcourt LLP Suite 1700, 1055 West Hastings Street Vancouver, British Columbia V6C 3B9

Auditor

Lancaster & David Chartered Professional Accountants Suite 510, 701 West Georgia Street Vancouver, British Columbia V7Y 1C6

Australian Share Registry

Registered Office: Canada Suite 2100, 401 Bay Street Toronto, Canada T: +1 416 356 8165 E: [email protected] W: https://benzmining.com/

ASX Code : BNZ TSX-V Code: BZ FRA Code: 1VU

Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth WA 6000

Canadian Share Registry

Computershare Investor Services Inc 510 Burrard Street Vancouver, British Columbia V6C 3B9

BENZ MINING CORP. ARBN 642 228 804 i

2. Review of Operations

Benz Mining Inc ( Benz or the Company ) is an exploration and development stage company existing under the Canada Business Corporations Act. It was incorporated under the laws of the Province of British Columbia on 9 November 2011. The Company’s common shares trade on the TSX Venture Exchange under the symbol ‘BZ’, the Frankfurt Exchange under the trading symbol ‘1VU’, and commenced trading on the Australian Securities Exchange under the trading symbol ‘BNZ’ on 23 December 2020.

On 7 August 2019, the Company entered into an option agreement with Eastmain Resources Inc. to acquire a 100% interest in the former producing Eastmain Gold Project located in James Bay District ( Eastmain Project ), Quebec for C$5,000,000. In April 2020, Benz entered into an amending agreement in connection with the Eastmain Project pursuant to which it acquired a further option to earn a 100% interest in the Ruby Hill West and Ruby Hill East properties, located west of the Eastmain Project.

Eastmain Project

The Eastmain Project is located approximately 750 km northeast of Montreal, and 316 km northeast of Chibougamau, comprises 152 contiguous mining claims each with an area of approximately 52.7 ha covering a total of 8,014.36 ha plus one industrial lease permit owned by Eastmain Mines Inc., a wholly owned subsidiary of Eastmain Resources Inc.

The Eastmain Project is road accessible via the Route 167 extension, a permanent all-season road, and is serviced by an existing camp, all season gravel roads, and an airstrip. The Eastmain Project benefits from access to Chibougamau (population of 7,541) that serves as the main centre of communications and supplies for the area.

The Company has completed a NI 43-101 compliant Technical Report titled " Technical Report and Mineral Resource Estimate on the Eastmain Mine Property, James Bay District, Quebec ", prepared by P&E Mining Consultants Inc. The Mineral Resource Estimate reported tonnes and contained gold ounces, stating Indicated Mineral Resource of 899kt at a grade of 8.19 g/t gold, 8 g/t silver and 0.13% copper (236.5 koz contained gold), and Inferred Mineral Resources of 579 kt at a grade of 7.48 g/t gold, 8.2 g/t silver and 0.16% copper (139.3 koz contained gold).

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resource Estimates do not account for mineability, selectivity, mining loss and dilution. Inferred Mineral Resources are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that Indicated Mineral Resources will be converted into Mineral Reserves, once economic considerations are applied; or that Inferred Mineral Resources will be converted to Measured and Indicated classifications through further drilling, or into Mineral Reserves, once economic considerations are applied.

The Technical Report, completed for Benz on 3 September 2019, and amended on 21 October 2019, is available on SEDAR under the Company's profile.

Eastmain Drilling Program

Following the completion of the initial Fixed loop Time domain electromagnetic ( FLEM ) survey in August 2020, Benz commenced an initial 6,000m diamond drill program to test some of the better EM conductors around the existing mineralization as well as some regional targets. This program was completed in December 2020 with 12 holes drilled for 7,110m.

The 12-hole program was a scout drill program to confirm whether targeting electromagnetic ( EM ) conductors could lead to new discoveries that could potentially increases the scale of the Eastmain Project from its existing 376,000oz indicated and inferred gold resource at 7.9g/t Au. Drilling targeted a widespread combination of modelled plates from this FLEM survey and down hole ( DHEM ) conducted in historic and recently drilled holes.

BENZ MINING CORP. ARBN 642 228 804 ii

The campaign returned multiple high grade (> 8.0g/t Au intervals) confirming:

  • the presence of newly discovered high-grade mineralization under overburden through the use of electromagnetics with best intercept in this area returning 5.0m at 8.3g/t Au from 529.8m including 3.0m at 13.7g/t Au from 531.8m (EM20-132);

  • multiple high-grade zones are present down plunge from known mineralization at A and D Zones (D Zone not in the current resource); and

  • a deeper parallel mineralized high-grade horizon was identified in hole EM20-141 returning two distinct sets of high-grade assays: 5.3m at 3.0g/t Au from 417.5 including 1.0m at 8.8g/t Au from 420.0m and 7.2m at 4.6g/t Au from 561.3m including 3.8m at 8.5g/t Au from 564.7m.

Benz identified the potential to target gold mineralization at the Eastmain Project via EM. This technique is not commonly used to directly target gold mineralization, however, the high pyrrhotite content of the mineralization at Eastmain enables the team to directly target mineralization by using a combination of ground and DHEM surveys (techniques that have been successfully used by ASX listed explorer Bellevue Gold Limited at its namesake gold project) in combination with the historical database.

To date, EM surveys have led to three new greenfield discoveries and two brownfield discoveries:

1. Nisto Trend

The Nisto Trend is a sub-parallel mineralized trend approximately 150-200m deeper than the existing mine trend identified in the D Zone. This horizon was discovered below Zone A lens located approximately 2km from D Zone, the mineralization has been intersected by holes EM21-143 and 151 at about 200m deeper than the mine horizon. Both holes hit sulphide rich mineralization (pyrrhotite and chalcopyrite) as veins and stringers in an altered ultramafic at the contact with a conglomerate. DHEM showed strong in-hole and off-hole conductors at EM21-143 and strong off-hole conductors at EM21-151. The strength of the in-hole EM response in hole EM21-143 masked the potential extent of mineralization and needs further drilling to determine its strike extent.

2. Kotak Trend

The Kotak Trend is a second new trend 800m due east of the Eastmain mine characterized with quartz, carbonate, sulphide veins in a strongly altered carbonate, quartz and tourmaline zone with an intersect of 5.0m at 8.3g/t Au from 529.8m including 3.0m at 13.7g/t Au from 531.8m.

3. Continuous mineralization at NW Zone

FLEM and DHEM conductors pointed to an undrilled area located between historical drillholes approximately 600m along strike of the current resource. 2021 drilling found continuity of mineralization between drillholes. 4 shallow holes were drilled in the area. EM21-146 encountered a pyrrhotite-sphalerite-pyrite rich stringer zone, with visible gold associated with pyrrhotite sphalerite and quartz veins. EM21-145 encountered a similar stringer zone. EM21147 and 148 tested DHEM plates for up-dip potential and hit the margins of this system with quartz-sulphide stringers intersected.

4. Resource Extensions Down Dip

Down plunge extensions of the known mineralization at A Zone (in current resource) and D Zone (not in current resource) have been identified. Drilling in 2021 targets the down plunge extensions to B and C Zones using DHEM modelled conductive plates resulting from Benz's surveying of historical holes in this area.

5. Mine Trend Extensions

A new mineralized zone 1.8km along strike of the known resource on the Mine Trend with 5.4m at 3.2g/t Au from 139.6m including 1.4m at 7.2g/t Au from 139.6m including 1.0m at 4.3g/t Au from 143.0m (EM20-142).

BENZ MINING CORP. ARBN 642 228 804 iii

All drillholes are systematically surveyed by DHEM, refining the location of strongly mineralized shoots within the system.

Heterogeneity Test - Coarse Gold Mineralization Influence

Benz has approached world class specialist consultants to work with Dr Marat Abzalov on designing and implementing a heterogeneity test. The test will identify the repartition of various gold grain sizes in the system and the consequences of the presence of coarse nuggety gold on assay results. The study will use newly drilled core as well as historical drill core from the Eastmain Project.

Results of the study will include:

  • characterization of gold grains fractions and repartition;

  • effect of comminution on coarse gold grains;

  • optimization of assay method to be used for future analysis;

  • potential improvements in the controls on grade repartition within the existing resource; and

  • the results will assist Benz in identifying the optimal assay technique to most accurately identify gold grade as well as quantifying the influence of coarse gold on the mineralization and its effect on the existing resource model.

Coarse Gold Treatment - PhotonAssays - Screen Fire Assays

For the duration of the drill program, mineralized samples submitted to the Actlab Laboratory in Ste GermaineBoule, Quebec, will be analysed by metal sieves (also known as screen fire assays) in order to offset as much as possible, the effect of nuggety gold on the assay values.

Pending the results of the heterogeneity study, the Company is of the view that screen fire assays will provide the most accurate assay methodology currently available to it.

Benz has sent all the course crush laboratory rejects (crushed half core unused for analysis) from its 2020 drilling campaign to Australia for assay using PhotonAssay[TM] . Photon is a high energy X-Ray fluorescence assay method. This technology has been proven to excel at processing samples with nuggetty gold and is being extensively used by major gold companies in Australia. Minanalytical, the commercial laboratory used by Benz currently has limited capacity due to the increasing popularity of the method. Benz’ 8.5t of samples represent approximately 16,000 individual analysis.

The technology is not yet available commercially in Canada and, until so, Benz will ship rejects on a regular basis to duplicate fire and screen fire assays results with this method.

Surface EM generating additional targets

Loops G and H have been recently surveyed with FLEM. Those loops extend the EM surveys along strike from the three mineralized trends all the way to the Project's south-eastern boundary, approximately 3km from existing identified mineralization.

The second drill rig started drilling in March 2021 after delays mostly due to rig and driller availability pressure from increased winter drilling activities in the province of Quebec over the first quarter of 2021.

Extensive conductors at Placer Lake coincident with 8.3g/t gold surface rock sample

FLEM survey of Loop F identified several conductors in the Placer Lake area. The prospect is located 2.5km from the Eastmain Mine on a parallel litho-structural trend. The location of the newly defined conductors coincides with airborne VTEM anomalies identified from the survey flown in 2005.

BENZ MINING CORP. ARBN 642 228 804 iv

Several FLEM plates were modelled and are recognised in three main areas within this grid. There are only 2 historical holes drilled in the central area, however, these holes did not test the FLEM plates. High grade gold has been identified in the area with rock chips up to 8.3g/t Au above the conductors. The other FLEM anomalies further west and east have not been drilled. The modelled EM plates are shallow and show a steeper dip to the NE compared to the FLEM conductors found in the southern part of the Eastmain project.

Several historical drill holes have intersected high grade gold mineralization within Loop F. For example, at the Meg Prospect, historical drilling has identified high grade gold mineralization including 1.0m at 80.6g/t Au and 1.0m at 17.3g/t Au. Interestingly, this mineralization was not identified in the recent FLEM program and represents another style of mineralization present at Eastmain.

Ongoing work programs including mapping, soil surveys and surface sampling will continue until the end of the summer season. Drilling at Placer Lake will take place later this year as part of the fully funded 50,000m drill program planned and budgeted for 2021.

Corporate Activities

During June 2020, the Company closed a non-brokered flow-through private placement of 12,000,000 flow through units at a price of $0.30 per unit, for gross proceeds of C$3,600,000 (before costs). Each unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one non-flow through common share at a price of C$0.17 per share until 1 June 2023.

During October 2020, the Company closed another non-brokered flow-through private placement of 14,857,142 flow through units at a price of C$0.875 and 400,000 hard dollar units at C$0.55 per unit, for aggregate gross proceeds of C$13.2 million (before costs). Each flow-through unit and hard dollar unit consists of one common share of the Company and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one non-flow through common share at a price of C$1.00 per share until 29 October 2022.

Competent Person’s Statements

The information in this report that relates to historical exploration results is based on and fairly represents information and supporting information compiled by Mr Xavier Braud, who is a member of the Australian Institute of Geoscientists (AIG membership ID:6963). Mr Braud is a consultant to the Company and has sufficient experience in the style of mineralization and type of deposits under consideration and qualifies as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Braud holds securities in Benz Mining Corp and consents to the inclusion of all technical statements based on his information in the form and context in which they appear.

The information in this announcement that relates to the Inferred Mineral Resource was first reported under the JORC Code by the Company in its prospectus released to the ASX on 21 December 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and confirms that all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

BENZ MINING CORP. ARBN 642 228 804 v

3. Directors and Key Management

Mr Evan Cranston – Executive Chairman, B. Comm, LLB

Appointed: 17 September 2020

Mr Cranston is a former corporate lawyer with a broad experience in the areas of corporate advisory, capital raising, IPO’s, joint ventures, mergers and acquisitions, corporate governance and liaison with market analysts and investors. He has a detailed knowledge of Corporate Governance, the Australian Securities Exchange's Listing Rules and the Corporations Act. He holds both a bachelor of Commerce and Bachelor of Laws from the University of Western Australia. Mr Cranston is the principal of Konkera Corporate, which provides corporate advisory and administration services to a number of ASX listed companies. He has been involved in a number of ASX-listed companies from start-ups through to companies with market capitalisations in excess of $700 million. Mr Cranston is not considered independent.

Mr Cranston is currently a director of African Gold Limited (Non-Executive Chairman), Vital Metals Limited (NonExecutive Director) and Carbine Resources Limited (Non-Executive Director). Mr Cranston has held the following ASX-listed directorships in the last 3 years; Boss Energy Limited (to June 2020) and New Century Resources Limited (to July 2020).

Mr Nick Tintor – Non-Executive Director, BSc., Geology

Appointed: 9 April 2019

Mr Tintor is a mining executive and geologist who holds a Bachelor of Science in Geology from the University of Toronto and has more than 30 years of experience in the Canadian mining industry. For the past 20 years, he has been involved in all aspects of junior mining company management from project generation, to finance and executive management. He also brings deep global relationships in the mining industry and especially in the Canadian resources investment banking sector. Mr Tintor served a CEO of the Company between September and November 2019. Mr Tintor is not considered independent.

Mr Tintor holds no other directorships.

Mr Peter Williams – Non-Executive Director, M. Eng. Sc., Geophysics

Appointed: 17 September 2020

Mr Williams is a geophysicist with more than 30 years of expertise in mineral exploration and corporate management including Chief Geophysicist at WMC Resources in Australia and senior roles with Ampella Mining and Independence Group, both on the ASX. Peter has extensive experience in successful exploration for different mineral systems around the world, in both Greenfields, Brownfields and in-mine exploration, including porphyry, orogenic and epithermal gold, skarns and IOCG deposits. He was involved in the target identification and acquisition of in excess of 10 million ounces of gold in West Africa, including the multi-million-ounce Wahignion and Batie Gold Deposit in Burkina Faso and Papillion’s Gold Deposit in Mali. Mr Williams is considered independent.

Mr Williams is currently a director of Alderan Resources Limited (Non-Executive Director) and African Gold Limited (Non-Executive Director). Mr Williams has held the following ASX-listed directorships in the last 3 years; Boss Energy Limited (to May 2020).

Mr Mathew O’Hara – Non-Executive Director, B. Comm

Appointed: 27 April 2020

Mr O’Hara is a Chartered Accountant with extensive professional experience in capital markets, financing, financial accounting and corporate governance. His experience includes being employed by, and acting as, Director, Company Secretary and CFO of several companies, predominantly in the resources sector.

BENZ MINING CORP. ARBN 642 228 804 vi

Prior to these roles, he spent more than a decade working as an Associate Director at an international accounting firm in both the Corporate Finance/Advisory and Audit divisions in Australia gaining significant experience with publicly listed clients across a diverse range of industries, including mining and metals, oil and gas, technology and infrastructure. He had a particular focus in audit, mergers & acquisitions, valuations, financial modelling, due diligence and financial reporting. Mr O’Hara is considered independent.

Mr O’Hara is currently a director of African Gold Limited (Non-Executive Director) and Peak Minerals Limited (NonExecutive Director). Mr O’Hara has held the following ASX-listed directorships in the last 3 years; Carbine Resources Limited (to July 2021).

Mr Xavier Braud – Chief Executive Officer

Mr Braud is an experienced geologist and mining analyst with over 15 years’ experience in a broad range of deposits and commodities. His geological experience spans the whole spectrum of geology from greenfield exploration to resource definition and extension. For the past three years he has been a Resources/Mining Analyst at Canaccord Genuity covering ASX listed resources companies. This role involved researching companies at both technical and financial level. Mr Braud is currently a director of ASX-listed Riversgold Limited (Non-Executive Director).

Ms Oonagh Malone – Company Secretary

Ms Malone is a principal of a corporate advisory firm which provides company secretarial and administrative services. She has almost a decade of experience in administrative and company secretarial roles for listed companies and is a member of the Governance Institute of Australia and the Australian Institute of Company Directors. Ms Malone currently acts as Company Secretary for ASX-listed companies Carbine Resources Limited, Caprice Resources Limited, Aston Minerals Limited, Hawkstone Mining Limited, Riversgold Limited, African Gold Limited and RareX Limited. Ms Malone is a Non-Executive Director of Peak Minerals Limited.

Carlos Escribano – Chief Financial Officer

Mr Escribano is the Chief Financial Officer of Benz Mining Corp. He has over 15 years’ experience in senior level financial management and has served as Chief Financial Officer for publicly traded multi-national corporations in the resource sector, including leadership roles with Vancouver based precious metals producers operating in Latin America. He has demonstrated ability in successfully managing key aspects of finance, accounting and administration, including debt and equity financing, financial reporting and compliance, budgeting and treasury. Mr Escribano is a Chartered Professional Accountant and graduate of the University of British Columbia.

BENZ MINING CORP. ARBN 642 228 804 vii

4. Mineral Resource Statement

The following information is provided in accordance with Listing Rule 5.21.

Mineral Resource Estimation Governance Statement

Benz ensures that the Mineral Resource estimate are subject to appropriate levels of governance and internal controls. The Mineral Resource estimate has been generated by independent consultants to the Company, P&E Mining Consultants Inc on 29 October 2019, who are experienced in best practices in modelling and estimation methods and have undertaken reviews of the quality and suitability of the underlying information used to generate the resource estimations. The Mineral Resource estimate follows standard industry methodology using geological interpretation and assay results from samples acquired through drilling.

Benz reports its Mineral Resources in accordance with the Canadian National Instrument 43-1010 ( NI 43-101 ) and the requirements of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2012 Edition ( JORC Code 2012 ).

Competent Persons named by the Company qualify as Competent Persons as defined in the JORC Code. There has been no movement in the Mineral Resource between 2020 and 2021 and as such the table below sets out Mineral Resources for both 2020 and 2021 for the Eastmain Project.

Eastmain Project Mineral Resource at 30 April 2021 and 30 April 2020 At 2.5 g/t Au cut-off[1-5 ]

Resource
Classification
Tonnes
(kt)
Au
(g/t)
Contained Au
(koz)
Ag
(g/t)
Contained Ag
(koz)
Cu
(%)
Contained Cu
(klb)
Indicated 899 8.19 236.5 8.0 232 0.13 2,577
Inferred 579 7.48 139.3 8.2 152 0.16 2,042

Notes:

1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

2. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

3. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.

4. The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.

5. Historic mined out areas were depleted from the model.

BENZ MINING CORP. ARBN 642 228 804 viii

5. Corporate Governance

The Company is committed to implementing the highest standards of corporate governance. In determining what those high standards should involve the Company has turned to the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4[th] Edition).

Unless disclosed below, all the principles and recommendations of the ASX Corporate Governance Council have been applied for the period from ASX Listing date (23 December 2020) to the end of the financial year (30 April 2021).

Board of Directors

The Board is responsible for the corporate governance of the Company. The Board develops strategies for the Company, reviews strategic objectives and monitors performance against those objectives. Clearly articulating the division of responsibilities between the Board and management will help manage expectations and avoid misunderstandings about their respective roles and accountabilities. In general, the Board assumes (amongst others) the following responsibilities:

  • i. appointing and when necessary, replacing the Chief Executive Officer and other senior executives and the determination of their terms and conditions including remuneration and termination;

  • ii. driving the strategic direction of the Company, ensuring appropriate resources are available to meet objectives and monitoring management's performance;

  • iii. reviewing and ratifying systems of risk management and internal compliance and control, codes of conduct and legal compliance;

  • iv. approving and monitoring the progress of major capital expenditure, capital management and significant acquisitions and divestitures;

  • v. overseeing the integrity of the Company's accounting and corporate reporting systems including the external audit;

  • vi. undertaking appropriate checks before appointing a person, or putting forward to security holders a candidate for election, as a director;

  • vii. overseeing the Company's process for making timely and balanced disclosure of all material information concerning the Company that a reasonable person would expect to have a material effect on the price or value of the Company's securities; and

  • viii. monitoring the effectiveness of the Company's governance practices.

  • ix. The Company is committed to ensuring that appropriate checks are undertaken before the appointment of a director and has in place written agreements with each Director which detail the terms of their appointment.

Board Composition

Election of Board members is substantially the province of the Shareholders in a general meeting. The Board currently consists of one Executive Director (Mr Evan Cranston), and three Non-Executive Directors (Mr Nick Tintor, Mr Peter Williams and Mr Mathew O'Hara).

Each of Mr Williams and Mr O'Hara are considered to be independent Directors.

BENZ MINING CORP. ARBN 642 228 804 ix

The Board regularly reviews the balance of skills currently and as part of succession planning to ensure the appropriate level of skills, knowledge and experience along with diversity and independence are in place to best discharge its responsibilities for the shareholders in the most effective manner.

As the Company’s activities develop in size, nature and scope, the composition of the Board and the implementation of additional corporate governance policies and structures will be reviewed.

Compliance with ASX Recommendations

Compliance with ASX Recommendations Compliance with ASX Recommendations
Recommendation Benz Mining Corp Current Practice
1.1
A listed entity should have and disclose a board charter
The Company has established a Board Charter.
setting out: The Board Charter sets out the specific
(a) The respective roles and responsibilities of its board responsibilities of the Board in relation to
and management; and corporate governance, the role of the Board,
(b) Those matters expressly reserved to the board and
those delegated to management.
the Board's relationship with management, the
key responsibilities of the Board, the structure
of the Board, the role of the chair, the role of
Board committees and the occurrence of Board
meetings. A copy of the Company’s Board
Charter is available on the Company’s website
atwww.benzmining.com
1.2
A listed entity should:
a) The Company’s Remuneration and
(a) Undertake appropriate checks before appointing a
person, or putting forward to security holders a
candidate for election, as a director; and
Nomination Committee Charter (currently
applied by the full Board, rather than a
separate committee) requires the Board to
undertake appropriate checks before
(b) Provide security holders with all material information appointing a person, or putting forward to
in its possession relevant to a decision on whether or security holders a candidate for election,
not to elect or re-elect a director. as a director.
b) All material information relevant to a
decision on whether or not to elect or re-
elect a director will be provided to security
holders in any notice of meeting pursuant
to which the resolution to elect or re-elect
such Director will be voted on.
1.3
A listed entity should have a written agreement with each
The Company’s Remuneration and Nomination
director and senior executive setting out the terms of Committee Charter and Board Charter require
their employment. the Board to ensure that each Director and
senior executive is a party to a written
agreement with the Company which sets out
the terms of that Director’s or senior
executive’s appointment.
The Company has entered into a written
agreement with each Director and senior
executive setting out the terms of their
appointment.
1.4
The company secretary of a listed entity should be
The Board Charter outlines the role,
accountable directly to the board, through the chair, on responsibility and accountability of the
all matters to do with the proper functioning of the board. Company Secretary. The Company Secretary is
accountable directlyto the Board,through the

BENZ MINING CORP. ARBN 642 228 804 x

Chair, on all matters relating to the proper functioning of the Board.

  • 1.5 A listed entity should:

  • (a) Have and disclose a diversity policy;

  • (b) Through its board or a committee of the board set measurable objectives for achieving gender diversity in the composition of its board, senior executives and workforce generally; and

  • (c) Disclose in relation to each reporting period:

  • the measurable objectives set for that period to achieve gender diversity;

  • the entity’s progress towards achieving those objectives; and

  • either:

    • A. the respective proportions of men and women on the board, in senior executive positions and across the whole organisation (including how the entity has defined “senior executive” for these purposes); or

    • B. if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most recent “Gender Equality Indicators”, as defined in and published under that Act.

The Company has a Diversity Policy which includes requirements for the board or a relevant committee of the Board to set measurable objectives for achieving gender diversity and to assess annually both the objectives and the entity’s progress in achieving them. This is available on the Company’s website at www.benzmining.com

Due to the current size and composition of the organisation, the Board does not consider it appropriate to provide measurable objectives in relation to gender diversity. The Company is committed to ensuring that the appropriate mix of skills, expertise, and diversity are considered when employing staff at all levels of the organisation and when making new senior executive and Board appointments and is satisfied that the composition of employees, senior executives and members of the Board is appropriate.

The Company was not in the S&P / ASX 300 Index at the commencement of the reporting period.

If the entity was in the S&P / ASX 300 Index at the commencement of the reporting period, the measurable objective for achieving gender diversity in the composition of its board should be 30% of its directors of each gender within a specified period.

  • 1.6 A listed entity should:

  • (a) Have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; and

  • (b) Disclose for each reporting period whether a performance evaluation was undertaken in the reporting period in accordance with that process.

  • 1.7 A listed entity should:

  • (a) Have and disclose a process for periodically evaluating the performance of its senior executives; and

  • (b) Disclose, in relation to each reporting period, whether a performance evaluation was undertaken

  • a) The Nominations Committee or the Board (in the absence of a Nominations Committee) is responsible for evaluating the performance of the Board and individual Directors on an annual basis, with the aid of an independent advisor, if deemed required.

  • b) The Company has not yet undertaken a performance evaluation with respect to the Board, its committees and individual directors.

The Board reviews the performance of its senior executives on a routine basis. A senior executive, for these purposes, means key management personnel (as defined in the Corporations Act), other than non-executive Directors.

The applicable processes for these evaluations

BENZ MINING CORP. ARBN 642 228 804 xi

in the reporting period in accordance with that can be found in the Company’s Performance process. Evaluation Policy, which is available on the Company’s website at www.benzmining.com . The performance evaluation policy has been newly adopted and therefore no performance evaluation has been undertaken in accordance with those processes contained within the policy.

  • 2.1 The board of a listed entity should: (a) Have a nomination committee which:

    • 1) has at least three members, a majority of whom are independent directors; and

    • 2) is chaired by an independent director;

    • and disclose:

    • 3) the charter of the committee;

    • 4) the members of the committee; and

    • 5) as at the end of each reporting period, the number of times the committee met throughout the period, and the individual attendances of the members at those meetings; or

  • (b) If it does not have a nomination committee, disclose the fact and the processes it employs to address board succession issues and to ensure the board has the appropriate balance of skills, knowledge, experience, independence and diversity to enable it to discharge its duties and responsibilities effectively.

The Company does not comply with Recommendation 2.1. The Company is not of a relevant size to consider formation of a nomination committee to deal with the selection and appointment of new Directors and as such a nomination committee has not been formed. Nominations of new Directors are considered by the full Board. If any vacancies arise on the Board, all directors are involved in the search and recruitment of a replacement. The Board has taken a view that the full Board will hold special meetings or sessions as required. The Board is confident that this process for selection, including undertaking appropriate checks before appointing a person, or putting forward to security holders a candidate for election, and review is stringent and full details of all Directors will be provided to Shareholders in the annual report and on the Company's website.

  • 2.2 A listed entity should have and disclose a board skills matrix setting out the mix of skills and diversity that the board currently has or is looking to achieve in its membership.

The Board's skills matrix indicates the mix of skills, experience and expertise that are considered necessary at Board level for optimal performance of the Board. The matrix reflects the Board's objective to have an appropriate mix of industry and professional experience including skills such as corporate finance, geology, mining, policy development, mergers and acquisition, legal, commercial and customer relationships. External consultants may be brought in with specialist knowledge to address areas where this is an attribute deficiency in the Board.

  • 2.3 A listed entity should disclose:

  • (a) The names of the directors considered by the board to be independent directors;

  • (b) If a director has an interest, position, association or relationship of the type described in Box 2.3 but the board is of the opinion that it does not compromise the independence of the director, the nature of the interest, position, association or relationship in

The Company discloses in its Annual Report those Directors it considers independent Directors and the considerations given in determining independence. The Annual Report also includes the length of service of each Director.

BENZ MINING CORP. ARBN 642 228 804 xii

question and an explanation of why the board is of that opinion; and

question and an explanation of why the board is of
that opinion; and
(c) The length of service of each director.
2.4
A majority of the board of a listed entity should be
Two of the Company's four Directors are
independent directors. considered to be independent. The remaining
Directors are not considered to be
independent.
As the Company grows, the Board will consider
the appointment of an additional independent
Director.
2.5
The chair of the board of a listed entity should be an
Evan Cranston is the Company’s Chair and is
independent director and, in particular, should not be the not considered independent by virtue of his
same person as the CEO of the entity. position as an executive director.
As the Company grows, the Board will consider
the transitioning this role to that of an
independent director.
2.6
A listed entity should have a program for inducting new
In accordance with the Company’s Board
directors and provide appropriate professional Charter, the Board is responsible for the
development opportunities for directors to develop and approval and review of induction and
maintain the skills and knowledge needed to perform continuing professional development programs
their roles as directors effectively. and procedures for Directors to ensure that
they can effectively discharge their
responsibilities. The Company Secretary is
responsible for facilitating inductions and
professional development.
3.1
A listed entity should articulate and disclose its values.
The Board has approved a Statement of Values
and charges the Directors with the
responsibility of inculcating those values across
the Company. This is available at
www.benzmining.com
3.2
A listed entity should:
The Company has adopted a Code of Conduct
(a) Have and disclose a code of conduct for its directors,
senior executives and employees; and
for the Board, senior executives and employees
that promote the highest standards of ethics
and integrity in carrying out their duties to the
(b) Ensure that the board or a committee of the board is
Company. This is available at
informed of any material breaches of that code. www.benzmining.com
3.3
A listed entity should:
The Board has adopted a Whistleblower Policy
(a) Have and disclose a whistleblower policy; and to ensure concerns regarding unacceptable
conduct including breaches of the Company's
(b) Ensure that the board or a committee of the board code of conduct can be raised on a confidential
is informed of any material incidents reported under
basis, without fear of reprisal, dismissal or
that policy. discriminatory treatment. The purpose of this
policy is to promote responsible whistle
blowing about issues where the interests of
others, including the public, or of the
organisation itself are at risk. This is available at
www.benzmining.com

BENZ MINING CORP. ARBN 642 228 804 xiii

3.4 A listed entity should:
(a) Have and disclose an anti-bribery and corruption
policy; and
(b) Ensure that the board or a committee of the board
is informed of any material breaches of that policy.
The Board has a zero-tolerance approach to
bribery and corruption and is committed to
acting professionally, fairly and with integrity in
all business dealings. The Board has adopted an
Anti-Bribery and Anti-Corruption Policy for the
purpose of setting out the responsibilities in
observing and upholding the Company's
position on bribery and corruption provide
information and guidance to those working for
the Company on how to recognise and deal
with bribery and corruption issues. This is
available atwww.benzmining.com
  • 4.1 The board of a listed entity should: (a) Have an audit committee which:

    • 1) has at least three members, all of whom are nonexecutive directors and a majority of whom are independent directors; and

    • 2) is chaired by an independent director, who is not the chair of the board;

    • and disclose:

    • 3) the charter of the committee;

    • 4) the relevant qualifications and experience of the members of the committee; and

    • 5) as at the end of each reporting period, the number of times the committee met throughout the period, and the individual attendances of the members at those meetings; or

  • (b) If it does not have an audit committee, disclose the fact and the processes it employs that independently verify and safeguard the integrity of its corporate reporting, including the processes for the appointment and removal of the external auditor and the rotation of the audit engagement partner.

The Company’s audit committee consists of three members who will be appointed by the Board. To the extent possible, the Board will endeavour to appoint Non-Executive Directors as members, with a majority of the appointees being independent. The audit committee will be chaired by an independent director, who is not the chair of the Board. The Company Secretary will perform the duties of Secretary of the Audit Committee.

The Company will disclose the charter of the committee, the number of times the committee met throughout the period and the individual attendances of the members at those meetings. The relevant qualifications and experience of the members will not be disclosed in the charter of the committee. The Company will disclose the charter of the committee, the number of times the committee met throughout the period and the individual attendances of the members at those meetings. The relevant qualifications and experience of the members will not be disclosed in the charter of the committee.

4.2 The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a declaration that, in their opinion, the financial records of the entity have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk management and internal controls which is operating effectively.

The Board relies on management accountability for the Company’s financial statements and reports for a financial period and requires the CEO and CFO/Company Secretary, to provide declarations that in their opinion, the financial records and reports have been properly maintained and presented and comply with appropriate accounting standards, giving a true and fair view, in all material respects, of the financial position and performance of the Company and its entities.

  • 4.3 A listed entity should disclose its process to verify the integrity of any periodic corporate report it releases to the market that is not audited or reviewed by an external

When preparing reports for release to the market including the periodic reports, these reports shall be prepared and reviewed by the Chief Executive Officer before being presented

BENZ MINING CORP. ARBN 642 228 804 xiv

auditor. to the Board for review and approval. Such
reports shall not be released to market without
this review and approval process by executive
management and the Board.
5.1
A listed entity should have a written policy for complying
The Company has adopted a Continuous
with its continuous disclosure obligations under Listing Disclosure Policy which is set out within the
Rule 3.1. Company’s Corporate Governance Plan and
details the Company’s disclosure requirements
as required by the Listing Rules and other
relevant legislation.
The Continuous Disclosure Policy is available on
the Company’s website at
www.benzmining.com
5.2
A listed entity should ensure that its board receives copies

The Board has appointed the Company
of all material market announcements promptly after they
Secretary as the person responsible for
have been made. communicating with the relevant securities
exchanges and overseeing and coordinating the
timely disclosure of information to ASX and
TSX-V, subject to prior review and approval of
all announcements by the Directors or any
person with appropriate delegated authority.
The Company Secretary ensures that the Board
are aware of when any announcement is due to
go out and when the confirmation of release is
received, the Company Secretary promptly
forwards this to the Board.
5.3
A listed entity that gives a new and substantive investor or

The Board has appointed the Company
analyst presentation should release a copy of the Secretary as the person responsible for
presentation materials on the ASX Market communicating with ASX and overseeing and
Announcements Platform ahead of the presentation. coordinating the timely disclosure of
information to ASX, subject to prior review and
approval of all announcements by the Directors
or any person with appropriate delegated
authority. The Company Secretary will ensure
any substantive presentations are released to
the ASX Market Announcements Platform
ahead of the presentation and in accordance
with the Continuous Disclosure Policy.
6.1
A listed entity should provide information about itself and
Information about the Company and its
its governance to investors via its website. governance is available on the Company’s
website atwww.benzmining.com
6.2
A listed entity should design and implement an investor
The Company has adopted a Shareholder
relations program to facilitate effective two-way Communications Policy which aims to promote
communication with investors. and facilitate effective two-way communication
with investors. The Policy outlines a range of
ways in which information is communicated to
Shareholders. This is available on the
Company’s website atwww.benzmining.com

BENZ MINING CORP. ARBN 642 228 804 xv

6.3
A listed entity should disclose how it facilitates and
As per the Company’s Shareholder
encourages participation at meetings of security holders. Communications Policy, Shareholders will be
encouraged to participate at all meetings of
security holders the Company. Upon the
despatch of any notice of meeting to
Shareholders, the Company Secretary shall
send out material with that notice of meeting
stating that all Shareholders are encouraged to
participate at the meeting.
CDI holders are also encouraged to attend the
Meeting, however cannot vote in person and
must direct CHESS Depositary Nominees how
to vote in advance of the meeting.
6.4
A listed entity should ensure that all substantive
The Company conducts a poll at meetings of
resolutions at a meeting of security holders are decided security holders to decide each resolution.
by poll rather than by a show of hands.
6.5
A listed entity should give security holders the option to
The Company is committed to maintaining a
receive communications from, and send communications Company website with general information
to, the entity and its security registry electronically. about the Company and its operations and
information specifically targeted at keeping the
Company’s shareholders informed about the
Company. Regular reports are released through
the ASX and the TSX-V as well as the media.
Notices of all meetings of shareholders, annual
reports, quarterly reports and material TSX-V
announcements are posted on SEDAR
(www.sedar.com).
7.1
The board of a listed entity should:
The Board has not established a separate Risk
(a) have a committee or committees to oversee risk,
each of which:
Management Committee. The Board is
ultimately responsible for risk oversight and risk
management. Discussions on the recognition
1) has at least three members, a majority of whom and management of risks are considered by the
are independent directors; and Board.
2) is chaired by an independent director; The Board considers that the Company is not
and disclose: currently of a size, nor are its affairs of such
complexity to justify having a separate risk
3) the charter of the committee; committee.
4) the members of the committee; and
5) as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of the
members at those meetings: or
(b) if it does not have a risk committee or committees
that satisfy (a) above, disclose that fact and the
processes it employs for overseeing the entity’s risk
management framework.
7.2
The board or a committee of the board should:
The Company is committed to the
(a) review the entity’s risk management framework at identification, monitoring and management of

BENZ MINING CORP. ARBN 642 228 804 xvi

least annually to satisfy itself that it continues to be sound and that the entity is operating with due regard to the risk appetite set by the Board; and

  • (b) disclose, in relation to each reporting period, whether such a review has taken place.

risks associated with its business activities and has established policies in relation to the implementation of practical and effective control systems. The Company has established a Risk Management Policy and will disclose in relation to each reporting period whether a review of the risk management has taken place. This is available on the Company’s website at www.benzmining.com

7.3 A listed entity should disclose:

  • (a) if it has an internal audit function, how the function is structured and what role it performs; or

  • (b) if it does not have an internal audit function, that fact and the processes it employs for evaluating and continually improving the effectiveness of its risk management and internal control processes.

The Company does not have an independent internal audit function. Due to the nature and size of the Company's operations, and the Company's ability to derive substantially all of the benefits of an independent internal audit function in the manner disclosed below, the expense of an independent internal auditor is not considered to be appropriate.

  • 7.4 A listed entity should disclose whether it has any material exposure to economic, environmental and social sustainability risks and, if it does, how it manages or intends to manage those risks.

The Company identifies and manages material exposure to environmental and social risks in a manner consistent with its Risk Management Policy, which is available on the Company's website at www.benzmining.com.

The Company has, and continues to, undertake various organisation wide risk reviews to identify potential business risks. The effectiveness of the controls in place to address each risk is reviewed on a regular basis and, where the residual risk is considered outside of acceptable limits, further controls and risk mitigation measures are developed and implemented.

8.1
The
board of a listed entity should: The Board as a whole performs the function of
(a) have a remuneration committee which: the Remuneration committee which includes
setting the Company's remuneration structure,
1) has at least three members, a majority of whom determining eligibilities to incentive schemes,
are independent directors; and assessing performance and remuneration of
2) is chaired by an independent director; senior management and determining the
remuneration and incentives of the Board.
and disclose: The Board considers that the Company is not
3) the charter of the committee; currently of a size, nor are its affairs of such
4) the members of the committee; and complexity to justify having a separate
remuneration committee.
5) as at the end of each reporting period, the
number of times the committee met throughout
the period and the individual attendances of the
members at those meetings; or
(b) if it does not have a remuneration committee,
disclose that fact and the processes it employs for
settingthe level and composition of remuneration

BENZ MINING CORP. ARBN 642 228 804 xvii

for directors and senior executives and ensuring that such remuneration is appropriate and not excessive.

==> picture [205 x 32] intentionally omitted <==

8.2
A listed entity should separately disclose its policies and
The Board Charter sets out the policies and
practises regarding the remuneration of non-executive practices of the remuneration of Non-Executive
directors and the remuneration of executive directors and
Directors, Executive Directors and other senior
other senior executives. executives.
All Directors of the Company typically receive
remuneration comprising a base salary
component and other fixed benefits based on
the terms of their respective employment
agreements with the Company or its
subsidiaries, and potentially the ability to
participate in incentive plans.
Details of the remuneration of the Directors
and other executives are in the Company’s
Management Information Circular provided in
connection with the annual general meeting
held on 13 October 2020, available on the
Company's website and SEDAR.
8.3
A listed entity which has an equity-based remuneration
The Company's Trading Policy prohibits the
scheme should: hedging of unvested performance share rights
(a) have a policy on whether participants are permitted
to enter into transactions (whether through the use
of derivatives or otherwise) which limit the economic
risk of participating in the scheme; and

and vested securities that are subject to
disposal restrictions at all times, irrespective of
trading windows. This is intended to prevent
transactions which could have the effect of
distorting the proper functioning of
(b) disclose that policy or a summary of it. performance hurdles or reducing the intended
alignment between management's and
shareholders' interests.
For the purposes of this policy, hedging
includes the entry into any derivative
transaction such as options, forward contracts,
swaps, futures, warrants, caps and collars and
any other transaction in financial products
which operate to limit (in any way) the
economic risk associated with holding the
relevant securities.
The Trading Policy is available on the
Company's website.

BENZ MINING CORP. ARBN 642 228 804 xviii

6. ASX Additional Information

Use of Funds Statement – ASX Listing Rule 4.10.19

In accordance with Listing Rule 4.10.19, the Company states that it has used the cash and assets in a form readily convertible to cash that it had at the time of admission in a way consistent with its business objectives. The business objective is primarily mineral exploration.

Voting Rights

The Company is incorporated under the legal jurisdiction of British Columbia, Canada. To enable companies such as the Company to have their securities cleared and settled electronically through CHESS, Depositary Instruments called CHESS Depositary Interests ( CDIs ) are issued. Each CDI represents one underlying ordinary share in the Company ( Share ). The main difference between holding CDIs and Shares is that CDI holders hold the beneficial ownership in the Shares instead of legal title. CHESS Depositary Nominees Pty Limited ( CDN ), a subsidiary of ASX, holds the legal title to the underlying Shares.

Pursuant to the ASX Settlement Operating Rules, CDI holders receive all of the economic benefits of actual ownership of the underlying Shares. CDIs are traded in a manner similar to shares of Australian companies listed on ASX.

CDIs will be held in uncertificated form and settled/transferred through CHESS. No share certificates will be issued to CDI holders. Each CDI is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.

If holders of CDls wish to attend and vote at the Company's general meetings, they will be able to do so. Under the ASX Listing Rules and the ASX Settlement Operating Rules, the Company as an issuer of CDls must allow CDI holders to attend any meeting of the holders of Shares unless relevant English law at the time of the meeting prevents CDI holders from attending those meetings. In order to vote at such meetings, CDI holders have the following options:

  • (i) instructing CDN, as the legal owner, to vote the Shares underlying their CDls in a particular manner. A voting instruction form will be sent to CDI holders with the notice of meeting or proxy statement for the meeting and this must be completed and returned to the Company's Share Registry prior to the meeting; or

  • (ii) informing the Company that they wish to nominate themselves or another person to be appointed as CDN's proxy with respect to their Shares underlying the CDls for the purposes of attending and voting at the general meeting; or

  • (iii) converting their CDls into a holding of Shares and voting these at the meeting (however, if thereafter the former CDI holder wishes to sell their investment on ASX it would be necessary to convert the Shares back to CDls). In order to vote in person, the conversion must be completed prior to the record date for the meeting. See above for further information regarding the conversion process.

As holders of CDls will not appear on the Company's share register as the legal holders of the Shares, they will not be entitled to vote at Shareholder meetings unless one of the above steps is undertaken.

As each CDI represents one Share, a CDI Holder will be entitled to one vote for every CDl they hold.

Proxy forms, CDI voting instruction forms and details of these alternatives will be included in each notice of meeting sent to CDI holders by the Company.

These voting rights exist only under the ASX Settlement Operating Rules, rather than under British Columbia Law. Since CDN is the legal holder of the applicable Shares and the holders of CDIs are not themselves the legal holder of their applicable Shares, the holders of CDls do not have any directly enforceable rights under the Company’s articles of association.

As holders of CDIs will not appear on our share register as the legal holders of shares of ordinary shares, they will not be entitled to vote at our shareholder meetings unless one of the above steps is undertaken.

BENZ MINING CORP. ARBN 642 228 804 xix

Distribution of Registered Shareholders (as at 26 August 2021)

Spread of Holdings Number of Holders Number of Shares
1-1,000 - -
1,001-5,000 2 6,500
5,001 - 10,000 1 10,000
10,001 -100,000 11 797,087
Over 100,001 17 98,425,169
Total 31 99,238,756

Substantial Registered Shareholders (as at 26 August 2021)

As at 26 August 2021 there was only 1 shareholder who held a substantial shareholding within the meaning of the Australian Corporations Act 2001 (Cth) . A person has a substantial holding if the total votes that they or their associates have relevant interests in is 5% of more of the total number of votes.

On-Market Buy-Back (as at 26 August 2021)

There is no current on-market buy-back.

Name Number of Shares
%
Kingslane PtyLtd 7,887,880
7.9

Twenty Largest Registered Shareholders (as at 26 August 2021)

Name Number of
Shares


%
1 CDS & Co 49,991,125
50.37%
2 Chess Depository Nominees Pty Limited 39,276,689
39.58%
3 Ponderosa Investments WA Pty Ltd TR The Ponderosa Investment Trust 2,600,000
2.62%
4 Tusk Exploration Ltd 826,143
0.83%
5 Hakuna Matata Investments Pty Ltd TR C&G Richardson S/F A/C 800,000
0.81%
6 Delphi Unternehmensberatung AG 760,000
0.77%
7 Kevin Conboy 750,000
0.76%
8 Ponderosa Investments (WA) Pty Ltd ATF The Ponderosa Investment Trust 606,061
0.61%
9 Torr Family Pty Ltd TR Torr Trust 600,000
0.60%
10 Konkera Pty Ltd 500,000
0.50%
11 Marat Abzalov and Svetlana Abzalov TR Massa Superannuation Fund 400,000
0.40%
12 Kevin Conboy 393,939
0.40%
13 Duncan Thain Craib TR Erracht Trust 200,000
0.20%
14 FPS Vermoegensverwaltung Gmbh 200,000
0.20%
15 Jindebyne Capital Pty Ltd 200,000
0.20%
16 Stephanie Le Coz TR SL Envol Family Trust 200,000
0.20%
17 Haywood Securities Inc TR Jon Christian Evensen 121,212
0.12%
18 Blue Trader Holdings Pty Ltd ATF The Peter Vodicka Family Trust 100,000
0.10%
19 Florenticus Pty Ltd 100,000
0.10%
20 Rock the Polo PtyLtd 100,000
0.10%
TOTAL 98,725,169
99.48%

BENZ MINING CORP. ARBN 642 228 804 xx

Unquoted Securities (as at 26 August 2021)

Class Number
Unquoted Options:
Unquoted options exercisable at C$3.00 each on or before 18-Jan-25 9,713
Unquoted options exercisable at C$0.64 each on or before 02-Oct-23 3,900,000
Unquoted options exercisable at C$0.265 each on or before 31-Aug-27 137,500
Unquoted options exercisable at C$0.21 each on or before 01-Jun-25 1,140,000
Unquoted options exercisable at C$0.12 each on or before 27-Apr-25 2,200,000
Unquoted options exercisable at C$0.076 each on or before 03-Mar-25 70,000
Unquoted Warrants:
Unquoted warrants exercisable at C$1.00 each on or before 29-Oct-22 7,628,571
Unquoted warrants exercisable at C$0.17 each on or before 01-Jun-23 11,045,455
Unquoted warrants exercisable at C$0.12 each on or before 27-Apr-23 23,635,750
Unquoted warrants exercisable at C$0.12 each on or before 27-Apr-23 4,000,000
Unquoted Compensation Warrants:
Unquoted warrants exercisable at C$0.17 each on or before 01-Jun-231 1,440,000
Unquoted warrants exercisable at C$0.076 each on or before 27-Apr-232 2,115,652

1. These Compensation Warrants are 'piggyback' securities. The holders have the right to subscribe for up to 1,440,000 Shares and 1,440,000 attaching Warrants for C$0.17 per one Share and attaching Warrant on or before 1 June 2023.

2. These Compensation Warrants constitute 'piggyback' securities. The holders have the right to subscribe for up to 2,115,652 Shares and 2,115,652 attaching Warrants for C$0.076 per one Share and attaching Warrant on or before 27 April 2023.

Significant Unquoted Option Holders (>20%) (as at 26 August 2021)

Name Number
%
Konkera Holdings Pty Ltd atf Konkera Family Trust 2,220,000
29.8%
Miloje Vicentijevic 1,802,876
24.2%

As at 26 August 2021 there are no significant holders (>20%) of unquoted warrants.

Distribution of CDI Holders (as at 26 August 2021)

Spread of Holdings Number of CDI Holders Number of CDIs
1-1,000 127 72,926
1,001-5,000 306 1,004,443
5,001 - 10,000 172 1,385,774
10,001 -100,000 200 6,854,216
Over 100,001 54 29,959,330
Total 859 39,276,689

BENZ MINING CORP. ARBN 642 228 804 xxi

Twenty Largest CDI Holders (as at 26 August 2021)

Name Number of
Shares
%
1 Kingslane Pty Ltd 7,887,880 20.08%
2 Mr Mark John Bahen + Mrs Margaret Patricia Bahen 2,500,000 6.37%
3 Konkera Pty Ltd 2,000,000 5.09%
4 Zero Nominees Pty Ltd 2,000,000 5.09%
5 Graham Enterprise (Aust) Pty Ltd 1,205,764 3.07%
6 CG Nominees (Australia) Pty Ltd 990,000 2.52%
7 Rock the Polo Pty Ltd 761,087 1.94%
8 Citylight Asset Pty Ltd 750,000 1.91%
9 Apaula Holdings Pty Ltd 634,697 1.62%
10 Alitime Nominees Pty Ltd 565,000 1.44%
11 BNP Paribas Nominees Pty Ltd Six Sis Ltd 500,000 1.27%
12 Mr Xavier Braud + Dr Laure Antoinette Martin 458,000 1.17%
13 Kendali Pty Ltd 450,000 1.15%
14 Ms Julie Marie Capelli 400,000 1.02%
15 Mr Thomas Milentis 400,000 1.02%
16 BNP Paribas Noms Pty Ltd 379,700 0.97%
17 Mrs Josephine Sarah Stapel 358,000 0.91%
18 Ocean View WA Pty Ltd 335,000 0.85%
19 ALR Investments Pty Ltd 320,000 0.81%
20 Mr Gerald Trigwell + Mrs Rosalie Trigwell 314,000 0.80%
TOTAL 23,209,128 59.09%

BENZ MINING CORP. ARBN 642 228 804 xxii

==> picture [266 x 205] intentionally omitted <==

Financial Statements April 30, 2021 (Expressed in Canadian dollars)

LANCASTER & DAVID

CHARTERED PROFESSIONAL ACCOUNTANTS

INDEPENDENT AUDITORS’ REPORT

To the shareholders of Benz Mining Corp.:

Opinion

We have audited the financial statements of Benz Mining Corp. [the "Company"], which comprise the statements of financial position as at April 30, 2021 and 2020, and the statements of operations and comprehensive loss, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at April 30, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards ["IFRSs"].

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Management is responsible for the other information. The other information comprises the Management's Discussion and Analysis, which we obtained prior to the date of this auditor's report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audits of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company's financial reporting process.

Auditor's Responsibilities for the Audit of Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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  • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

  • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

  • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

  • Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

  • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor's report is Michael J. David.

/s/ Lancaster & David

CHARTERED PROFESSIONAL ACCOUNTANTS

Vancouver, BC July 29, 2021

Address: Suite 510, 701 West Georgia Street, PO Box 10133, Vancouver, BC, Canada, V7Y 1C6 Telephone: 604.717.5526 Facsimile: 604.717.5560 Email: [email protected]

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Benz Mining Corp. Statements of Operations and Comprehensive Loss

Year ended April 30, ended April 30,
Note 2021 2020
Operating Costs
Exploration and evaluation costs 4,5 $ 7,573,430
$ 177,537
Listing and filing fees 250,969 31,388
Management & consulting fees 5 801,516
319,142
Office and miscellaneous 47,542 72,023
Professional fees 67,726
50,773
Share-based payments 7 2,158,003
350,228
Shareholder information 26,896 38,561
Loss from operations (10,926,082) (1,039,652)
Other income
Foreign exchange (25,349) -
Interest Income 22,840 5,505
Write-down on exploration and evaluation assets 4 - (269,703)
Settlement of flow-through share liability 6 1,469,472 -
Net loss and comprehensive loss (9,459,119)
(1,303,850)
Lossper share - basic and diluted $ (0.11)
$ (0.05)
Weighted average number of shares outstanding -
basic and diluted 84,413,756 28,104,509

See accompanying notes to the financial statements

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Benz Mining Corp. Statements of Financial Position

Note April 30, 2021 April 30, 2020
ASSETS
Current Assets
Cash and cash equivalents $ 13,144,767
$ 2,350,371
Sales taxes recoverable 376,697 23,619
Prepaid expenses and deposits 22,757 5,150
13,544,221
2,379,140
Exploration and evaluation assets 4 1,555,903 330,000
$ 15,100,124
$ 2,709,140
LIABILITIES
Current Liabilities
Trade and other payables 5 $ 1,168,547
$ 243,785
Flow-through sharepremium liability 6 3,359,099
-
4,527,646 243,785
EQUITY
Common shares 7 18,285,495 7,388,166
Equity reserves 7 8,648,770 1,981,393
Deficit (16,361,787) (6,904,204)
10,572,478 2,465,355
$ 15,100,124
$ 2,709,140

Nature of Operations (Note 1) Subsequent Events (Note 11)

These financial statements are authorized for issue by the Board of Directors on July 28, 2021

Approved by the Board of Directors:

(Signed) Evan Cranston Evan Cranston, Chairman of the Board

( Signed) Mathew O’Hara Mathew O’Hara, Director

See accompanying notes to the financial statements

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Benz Mining Corp. Statements of Cash Flows

Year Year ended April 30,
Note 2021 2020
Cash Flow from Operating Activities
Net loss for the period $ (9,459,119)
$ (1,303,850)
Adjustments for non-cash items:
Share based payments 7 2,158,003 350,228
Settlement of flow-through share liability 6 (1,469,472) -
Write-down of exploration and evaluation assets
("E&E assets") 4 - 269,703
Changes in non-cash working capital:
Sales taxes recoverable (353,078) (7,936)
Prepaid expenses (17,607) 28,355
Trade and otherpayables 924,762 20,505
Net cash flows used in operatingactivities (8,216,511) (642,995)
Cash Flow from Investing Activities
Additions to exploration and evaluation assets 4 (225,000) (75,000)
Net cash flows used in investingactivities (225,000) (75,000)
Cash Flow from Financing Activities
Issuance of common shares for cash, net costs 7 18,018,784 2,110,750
Proceeds from exercise of options & warrants 7 1,217,123 12,500
Net cash flowsprovided byfinancingactivities 19,235,907 2,123,250
Net change in cash and cash equivalents 10,794,396 1,405,255
Cash and Cash Equivalents, Beginning of Year 2,350,371 945,116
Cash and Cash Equivalents, End of Year $ 13,144,767
$ 2,350,371
Cash and cash equivalents consist of:
Cash $ 13,119,767
$ 2,350,371
Redeemableguaranteed investment certificate("GIC") 25,000 -
Total Cash and Cash Equivalents $ 13,144,767
$ 2,350,371
Non-cash Investing and Financing Activities:
Issuance of common shares for E&E assets 4 $ 461,825
$ 255,000
Issuance of warrants for E&E assets 4 $ 539,078
$ -

See accompanying notes to the financial statements

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Benz Mining Corp.

Statements of Changes in Equity

Note Equity
Number
Amount
Reserves
Deficit
Total Equity
Common Shares
Balance, April 30, 2019
Common shares issued for cash:
Private placement
7
Share issuance costs
7
Exercise of options
7
Shares issued for exploration and evaluation assets
7
Share based payments
7
Expired warrants and stock options
7
Net loss for theyear
26,317,094
6,420,305
$
2,412,444
$
(7,603,646)
$
1,229,103
$
27,773,024
1,246,313
864,437
-
2,110,750
-
(557,291)

368,915
-
(188,376)
125,000
23,839
(11,339)
-
12,500
3,000,000
255,000
-
-
255,000
-
-
350,228
-
350,228
-
-

(2,003,292)
2,003,292
-

-

-
-
(1,303,850)
(1,303,850)
Balance, April 30, 2020
Common shares issued for cash:
Flow-through private placement
7
Premium on flow-through shares
6
Private placement
7
Prospectus offering
7
Share issuance costs
7
Exercise of options
7
Exercise of warrants
7
Shares issued for exploration and evaluation assets
4
Warrants issued for exploration and evaluation assets
4
Share based payments
7
Expired stock options
7
Net loss for theyear
57,215,118
7,388,166
$
1,981,393
$
(6,904,204)
$
2,465,355
$
26,857,142
12,172,147
4,427,853
-
16,600,000
-

(4,828,571)
-
-
(4,828,571)
400,000
220,000
-
-
220,000
4,000,000
1,929,000
-
-

1,929,000
-
(1,157,936)
427,720

-
(730,216)
3,550,500
1,178,207
(568,829)
-
609,378
4,791,819
922,657
(314,912)
-
607,745
2,124,177
461,825
-
-

461,825
-
-
539,078
-

539,078
-
-
2,158,003
-

2,158,003
-
-
(1,536)
1,536
-
-
-
-

(9,459,119)
(9,459,119)
Balance, April 30, 2021 98,938,756
18,285,495
$
8,648,770
$
(16,361,787)
$
10,572,478
$

See accompanying notes to the financial statements

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Benz Mining Corp. Notes to the Financial Statements April 30, 2021

1. NATURE OF OPERATIONS

Benz Mining Corp. (“Benz” or the “Company”) is involved in the acquisition, exploration and exploitation of mineral properties located in the Americas. The Company’s head and registered offices are located at 927 Poirier Street, Coquitlam, British Columbia, V3J 6C3. The Company’s common shares are traded on the TSX-V Exchange and the Australian Securities Exchange.

2. BASIS OF PRESENTATION

Statement of compliance

These audited financial statements for the year ended April 30, 2021 (“Financial Statements”) have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Basis of measurement

These Financial Statements are expressed in Canadian dollars, the Company’s functional currency, and have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value.

Significant Accounting Judgements and Estimates

Significant assumptions about the future and other sources of estimation uncertainty that management has made at the statement of financial position date, that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

a) Impairment of exploration and evaluation assets

Management considers both external and internal sources of information in assessing whether there are any indications that the Company’s exploration and evaluation assets are impaired. External sources of information that management considers include changes in the market, economic and legal environment, in which the Company operates, that are not within its control, and affect the recoverable amount of its mining interests.

b) Valuation of share-based payments

The Company uses the Black-Scholes option pricing model for valuation of share-based payments. Option pricing models require the input of subjective assumptions including expected price volatility, interest rate, and forfeiture rate. Changes in the input assumptions can materially affect the fair value estimate and the Company’s earnings and equity reserves.

Notes to the Financial Statements (continued)

c) Recognition and measurement of deferred tax assets and liabilities

Estimates of future taxable income are based on forecasted cash flows from operations and the application of existing tax laws in each jurisdiction. Weight is attached to tax planning opportunities that are within the Company’s control and are feasible and implementable without significant obstacles. The likelihood that tax positions taken will be sustained upon examination by applicable tax authorities is assessed based on individual facts and circumstances of the relevant tax position evaluated in light of all available evidence. Where applicable tax laws and regulations are either unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur that materially affect the amounts of income tax assets/liabilities.

3. SIGNIFICANT ACCOUNTING POLICIES

Cash and cash equivalents

Cash and cash equivalents comprise cash at banks and on hand, and short-term deposits with an original maturity of three months or less, which are cashable and readily convertible into a known amount of cash.

Exploration and evaluation assets

The cost of a property acquired as an individual asset purchase or as part of a business combination represents the property's fair value at the date of acquisition. This cost is capitalized until the viability of the mining property is determined. When it is determined that a property is not economically viable, the amount capitalized is written off which includes expenditures which were capitalized to the carrying amount of the property subsequent to its acquisition.

The Company expenses all costs relating to the exploration for and evaluation of mineral claims until such time as a technical feasibility study has been completed and commercial viability of extracting the mineral resources is demonstrable. Such costs include, but are not limited to, geological, geophysical studies, exploratory drilling and sampling. Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation expenses attributable to that area of interest will be capitalized to mineral properties. Costs will continue to be capitalized until the property to which they relate is ready for its intended use, sold, abandoned, or management has determined there is impairment. If economically recoverable reserves are developed, capitalized costs of the property are depleted using the units of production method.

The Company capitalizes acquisition costs related to mineral properties.

Impairment

Non-financial assets are reviewed for impairment at the end of each reporting period and throughout the year if there is any indication that the carrying amount may not be recoverable. If any such indication is present, the recoverable amount of the asset is estimated in order to determine whether impairment exists. Where the asset does not generate cash inflows that are independent from other assets, the Company estimates the recoverable amount of the cashgenerating unit to which the asset belongs. Goodwill, any intangible asset with an indefinite useful life, or any intangible asset not yet available for use is tested for impairment annually and whenever there is an indication that the asset may be impaired.

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Notes to the Financial Statements (continued)

An asset or cash-generating unit’s recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount is reduced to the recoverable amount. Impairment is recognized immediately in profit or loss. Where an impairment subsequently reverses, the carrying amount is increased to the revised estimate of recoverable amount but only to the extent that this does not exceed the carrying value that would have been determined if no impairment had previously been recognized. Impairment of goodwill cannot be reversed.

Financial instruments

Financial assets and financial liabilities are classified into three categories: Amortized Cost, Fair Value through Other Comprehensive Income ("FVOCI") and Fair Value through Profit and Loss (“FVPL”). The classification of financial assets is determined by their context in the Company’s business model and by the characteristics of the financial asset’s contractual cash flows.

Financial assets and financial liabilities are measured at fair value on initial recognition, which is typically the transaction price unless a financial instrument contains a significant financing component. Subsequent measurement is dependent on the financial instrument’s classification.

Cash and cash equivalents, trade and other receivables, and trade and other payables are measured at amortized cost. The contractual cash flows received from the financial assets are solely payments of principal and interest and are held within a business model whose objective is to collect the contractual cash flows. The financial assets and financial liabilities are subsequently measured at amortized cost using the effective interest method.

The Company has no financial instruments measured at FVPL or FVOCI.

Impairment of financial assets is determined by measuring the assets' expected credit loss ("ECL"). Trade and other accounts receivable are due within one year or less; therefore, these financial assets are not considered to have a significant financing component and a lifetime ECL is measured at the date of initial recognition of the accounts receivable.

Provisions

Provisions are recognized where a legal or constructive obligation has been incurred as a result of past events, it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. If material, provisions are measured at the present value of the expenditures expected to be required to settle the obligation. The increase in any provision due to passage of time is recognized as accretion expense.

Share capital

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

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Notes to the Financial Statements (continued)

Flow-through shares

The Company will from time to time, issue flow-through common shares to finance a significant portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability, and ii) share capital. Upon expenses being incurred, the Company derecognizes the liability and recognizes a deferred tax liability for the amount of tax reduction renounced to the shareholders. The premium is recognized as other income and the related deferred tax is recognized as a tax provision.

The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced under the look-back rule, in accordance with Government of Canada flow-through regulations. When applicable, this tax is accrued as a financial expense until paid.

Unit offerings

The Company has adopted the relative fair value method with respect to the measurement of shares and warrants issued as equity units. The relative fair value method requires an allocation of the net proceeds received based on the pro rata relative fair values of the components. If and when the warrants are ultimately exercised, the applicable amounts are transferred from equity reserves to share capital. If the warrants expire unexercised, the Company will transfer the value attributed to those warrants from equity reserves to deficit.

Share-based payment transactions

The share option plan allows Company employees, directors, and consultants to acquire shares of the Company. All options granted are measured at fair value and are recognized in expenses as share-based payments with a corresponding increase in equity reserves. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee.

The fair value of employee options is measured at grant date, and each tranche is recognized using the graded vesting method over the period during which the options vest. The fair value of the options granted is measured using the Black-Scholes option pricing model taking into account the terms and conditions upon which the options were granted. For non-employees, share-based payments are measured at the fair value of goods and services received or the fair value of the equity instruments issued, if it is determined that the fair value cannot be reliably measured and are recorded at the date the goods or services are received. The fair value of the options is accrued and charged either to operations or exploration and evaluation assets, with the offset credit to equity reserves. This includes a forfeiture estimate, which is revised for actual forfeitures in subsequent periods. Upon the expiration or cancellation of unexercised stock options, the Company will transfer the value attributed to those stock options from equity reserves to deficit.

Loss per share

The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all dilutive potential common shares. In the

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Notes to the Financial Statements (continued)

Company's case, diluted loss per share is the same as basic loss per share as the effects of including all outstanding options and warrants would be anti-dilutive.

Related party transactions

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

Income taxes

Income tax comprises current and deferred tax. Income tax is recognized in profit or loss, except to the extent that it relates to items recognized directly in equity, in which case it is recognized as equity.

Current tax expense is the expected tax payable on the taxable income for the year, using rates substantively enacted at period end, adjusted for amendments to tax payable with regards to previous years.

Deferred tax is provided for temporary differences, between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. To the extent that the Company does not consider it probable that a deferred tax asset will be recovered, the deferred tax asset is reduced using a valuation allowance.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

New accounting standards

There were no new or amended IFRS pronouncements effective for the year ended April 30, 2021 that impacted the Company’s financial statements.

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Notes to the Financial Statements (continued)

4. EXPLORATION AND EVALUATION ASSETS

The Company has accumulated the following acquisition expenditures:

Mel Eastmain
Property Property
Balance, April 30, 2019 $ 269,703 $ -
Acquisition costs - 330,000
Write-down (269,703) -
Balance, April 30, 2020 $ - $ 330,000
Acquisition costs - 1,250,903
Balance, April 30, 2021 $ - $ 1,555,903

Mel Property

In November 2019, the Company relinquished its rights to the option purchase agreement of the Mel Property and recognized a write-down of $269,703.

Eastmain Property

In August 2019, the Company entered into an option agreement (the "Option Agreement") to acquire a 100% interest in the former producing Eastmain Gold project (the "Project") located in James Bay District, Quebec for $5,000,000. In April 2020, Benz entered into an amending agreement (the "Amending Agreement") in connection with the Eastmain Mine project pursuant to which it acquired a further option to earn a 100% interest in the Ruby Hill West and Ruby Hill East properties, located west of the Eastmain gold mine project.

Pursuant to the Option and Amendment Agreements, the Company retains the right and option to earn a 75% interest in the Project and Ruby Hill properties by issuing the following cash and common shares payments to the vendor (the "Option Payments"):

Option Payments Option Payments
Payable in Cash Payable in Cash or
Shares
Option Agreement Effective date – October 23, 2019 (paid) $75,000 -
Amending Agreement approval date by TSX-V Exchange – May $75,000 -
21, 2020 (paid)
On or before the 1stAnniversary of the Effective Date (paid) $150,000 $100,000
On or before the 2ndAnniversary of the Effective Date $150,000 $110,000
On or before the 3rdAnniversary of the Effective Date $200,000 $110,000
On or before the 4thAnniversary of the Effective Date $1,250,000 $475,000
Total Price* $1,900,000 $795,000
  • Total in cash and shares is $2,695,000.

In addition to the Option Payments, the Company issued to the vendor 3,000,000 common shares, with a value of $255,000 on grant date. Per the terms of the Amending Agreement, Benz made a share payment of 2,000,000 common shares valued at $360,000 and issued 4,000,000 share purchase warrants. Each warrant enables the holder to purchase one common share of Benz at a price of $0.12 until April 27, 2023. The additional 2,000,000 shares and 4,000,000 warrants were

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Notes to the Financial Statements (continued)

issued on May 21, 2020. The warrants were valued at $539,078 using the Black-Scholes pricing model with a share price of $0.18, risk-free rate of 0.29%, volatility of 117.92% and expected life of 2.93 years.

If and when the Company has made the Option Payments, issued shares and warrants and incurred expenditures as described above, the Company will be deemed to have exercised the options and a 75% right, title and interest to the Project and Ruby Hill properties. The Company has the right to accelerate expenditures at any time.

Following the exercise of the options, the Company will be obligated to make the following additional payments to the vendor on the occurrence of the following events:

  • $1,000,000 within five (5) business days of the closing of project financing to place the Property or any part thereof into commercial production in accordance with a feasibility study completed by the Optionee within 24 months of the exercise of the Option. With this payment, Benz will have acquired 100% of Eastmain Resources recorded and/or leasehold interest in the Project. If Benz fails to make this milestone payment, Eastmain Resources will have the right to buy back Company's 75% interest in the Project for $3,500,000, of which up to $1,225,000 may be paid in common shares of Eastmain Resources; and

  • $1,500,000 within five (5) business days of the Commencement of Commercial Production.

The Company may, at its election, pay up to 25% of this payment in common shares of the Company. The number of common shares required to be issued will be determined by the share equivalent of such payment on the date of issuance.

The vendor would retain a 2% Net Smelter Return royalty in respect of the Project. The Company may, at any time, purchase one half of the NSR Royalty, thereby reducing the NSR Royalty to a 1% net smelter returns royalty, for $1,500,000.

Benz will have the right to earn an additional 25% interest in the Ruby Hill West and Ruby Hill East properties by paying an additional $100,000 to Eastmain by October 23, 2025, which can be paid in shares at the election of Eastmain based on the prevailing VWAP of the Company's shares up to a maximum of 500,000 shares.

Following the acquisition of a 100% interest in the Ruby Hill West and Ruby Hill East properties Eastmain will retain a 1% net smelter return royalty, of which one half may be purchased for $500,000 thereby reducing it to a 0.5% net smelter returns royalty. The net smelter returns royalty is also offset by any pre-existing royalties which may reduce the royalty burden.

The Project property expenditure schedule, as defined in the Option Agreement and updated in the Amending Agreement totals $3,500,000 as follows:

Amending Agreement totals $3,500,000 as follows:
Cash Spend
On or before the 1stAnniversary of the Effective Date $0
On or before the 2ndAnniversary of the Effective Date $1,000,000
On or before the 3rdAnniversary of the Effective Date $1,500,000
On or before the 4thAnniversary of the Effective Date $1,000,000
Total Property Expenditure $3,500,000

During the year ended April 30, 2021, Benz completed exploration and evaluation activities totaling $7,573,430 at the Eastmain property.

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Notes to the Financial Statements (continued)

5. RELATED PARTY TRANSACTIONS AND BALANCES

Related party transactions are measured at the estimated fair values of the services provided or goods received. Related party transactions not disclosed elsewhere in these Financial Statements are as follows:

  • a) Key Management Compensation

Key management personnel include the members of the Board of Directors and officers of the Company, who have the authority and responsibility for planning, directing, and controlling the activities of the Company. The remuneration of directors and officers for years ended April 30, 2021 and 2020 was as follows:

2021 and 2020 was as follows:
April 30, 2021 April 30, 2020
Salaries, bonuses, fees and benefits
Management fees to the officers and directors of the
Company (including $219,105 (2020 - $nil) classified
with exploration and evaluation expenditures ) $ 988,184 $ 283,349
Share-based payments
Officers and directors of the Company 1,838,283 177,605
$2,826,467 $460,954
  • b) In the normal course of operations, the Company transacts with companies related to its directors or officers. The following amounts are payable to related parties, and are included in trade and other payables:
trade and other payables:
April 30, 2021 April 30, 2020
Management fees $ 187,989 $ 5,000
Expensespaid on behalf of the Company - 800
$187,989 $5,800

6. FLOW-THROUGH SHARE LIABILITY

The following is a continuity schedule of the liability portion of the flow-through share issuances.

Balance, April 30, 2019, and 2020 $ -
Liability incurred on flow-through shares issued 4,828,571
Settlement of flow-through liabilityupon incurringexploration expenditures (1,469,472)
Balance, April 30, 2021 $ 3,359,099

7. SHARE CAPITAL

  • a) Authorized: Unlimited common shares, without par value

Unlimited preferred shares, without par value

b) Issued:

In October 2019, the Company issued 3,000,000 common shares pursuant to the terms of the Eastmain option agreement (see Note 4) with a value of $255,000.

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Notes to the Financial Statements (continued)

In April 2020, the Company issued 125,000 shares on the exercise of options for $12,500. The fair value of these options totaling $11,339 was transferred to share capital from reserves. The weighted-average share price at the date of exercise for options exercised was $0.13.

In April 2020, the Company completed a non-brokered private placement financing through the issuance of 27,773,024 units at the price of $0.076 per unit, for total cash proceeds of $2,110,750. Each unit was comprised of one common share of the Company and one common share purchase warrant, with each warrant being exercisable into one common share of the Company at an exercise price of $0.12 per share until April 27, 2025. The Company incurred share issuance costs of $188,375 in the form of finders’ fees and professional fees in addition to issuing compensation units valued at $368,915.

In May 2020, the Company issued 2,000,000 common shares pursuant to the terms of the Eastmain option agreement (see Note 4) with a value of $360,000. In October 2020, a further 124,177 shares with a value of $101,825 were issued pursuant to the terms of the agreement.

In June 2020, the Company closed a non-brokered flow-through private placement of 12,000,000 flow through units at a price of $0.30 per unit, for gross proceeds of $3,600,000. Each flow-through unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one non-flow through common share at a price of $0.17 per share until June 1, 2023. The Company incurred share issuance costs of $181,633 in the form of finders’ fees and professional fees in addition to issuing compensation units valued at $427,720.

In October 2020, the Company closed a non-brokered flow-through private placement of 14,857,142 flow through units at a price of $0.875 and 400,000 hard dollar units at $0.55 per unit, for aggregate gross proceeds of $13,219,999. Each flow-through unit and hard dollar unit consists of one common share of the Company and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one non-flow through common share at a price of $1.00 per share until October 29, 2022. The Company incurred share issuance costs of $457,417 in the form of finders’ fees and professional fees.

In December 2020, the Company issued 4,000,000 common shares pursuant to a prospectus offering lodged with the Australian Securities and Investments Commission in relation to its dual listing on the Australian Securities Exchange. In exchange for the common shares, the Company received $1,929,000 and incurred share issuance costs of $91,166 in the form of finders’ fees and professional fees.

During the year ended April 30, 2021, the Company issued 3,550,500 shares on the exercise of options for $609,378. The fair value of these options totaling $568,829 was transferred to share capital from reserves. The weighted-average share price at the date of exercise for options exercised was $0.47.

During the year ended April 30, 2021, the Company issued 4,791,819 shares on the exercise of warrants for $607,746. The fair value of these warrants totaling $314,912 was transferred to share capital from reserves.

Escrow Shares

As at April 30, 2021, an amount of 222,857 common shares are held in escrow subject to an escrow agreement with Tusk Exploration Ltd. These shares continue to be held due to unmet contractual obligations.

16 | P a g e

Notes to the Financial Statements (continued)

c) Share purchase warrants and compensation warrants

A summary of changes in share purchase warrants and compensation warrants is as follows:

Underlying Weighted Average
Shares Exercise Price
Balance, April 30, 2019 16,951,544 $ 0.37
Issued 27,773,024 0.12
Expired (16,951,544) 0.37
Balance, April 20, 2020 27,773,024 $ 0.12
Issued 23,628,571 0.43
Exercised (4,791,819) 0.13
Balance, April 30, 2021 46,609,776 $ 0.28

On April 27, 2020, the Company issued 27,773,024 warrants through the financing described in the previous section. Each warrant entitles the holder to acquire one additional share at the price of $0.12 until April 27, 2023.

On May 21, 2020, the Company issued 4,000,000 warrants pursuant to the terms of the Eastmain option agreement (see Note 4). Each warrant entitles the holder to acquire one additional share at the price of $0.12 until April 27, 2023.

On June 1, 2020, the Company issued 12,000,000 warrants through the financing described in the previous section. Each warrant entitles the holder to acquire one additional share at the price of $0.17 until June 1, 2023.

On October 29, 2020, the Company issued 15,257,142 half warrants through the financing described in the previous section. Each whole warrant entitles the holder to acquire one additional share at the price of $1.00 until October 29, 2022.

The warrants have been valued using the Black-Scholes pricing model, with a gross amount of $5,831,368 included in reserves based on the relative fair values of the shares and warrants issued. The following assumptions were used for the Black-Scholes valuation of the warrants granted:

granted:
April 30, 2021 April 30, 2020
Weighted average assumptions:
Risk-free interest rate 0.31% 0.34%
Expected dividend yield $0.00 $0.00
Expected option life (years) 2.67 3
Expected stock price volatility 121% 118%
Weighted average fair value at measurement date $0.23 $0.08

17 | P a g e

Notes to the Financial Statements (continued)

Warrants outstanding as at April 30, 2021 and 2020, are:

Exercise Price
Expiry Date
per Share
Outstanding and Exercisable
April 30, 2021
April 30, 2020
October 29, 2022
$1.00
April 27, 2023
$0.12
June 1,2023
$0.17
7,628,571
-
27,635,750
27,773,024
11,345,455
-
46,609,776
16,951,544

d) Compensation Units

Pursuant to the private place of 27,773,024 units, the Company paid finders’ fees consisting of a cash payment in the aggregate amount of $160,257 and 2,115,652 compensation units with a fair value of $368,915. Each compensation unit is exercisable at a price of $0.076 until April 27, 2023 and entitles the holder to purchase one unit (comprised of one share and one warrant). Each warrant received upon the exercise of a compensation unit entitles the holder to purchase one share at price of $0.12 per warrant until April 27, 2023.

Pursuant to the private place of 12,000,000 flow-through units, the Company paid finders’ fees consisting of a cash payment in the aggregate amount of $144,000 and 1,440,000 compensation units with a fair value of $427,720. Each compensation unit is exercisable at a price of $0.17 until June 1, 2023 and entitles the holder to purchase one unit (comprised of one share and one warrant). Each warrant received upon the exercise of a compensation unit entitles the holder to purchase one share at price of $0.17 per warrant until June 1, 2023.

The following assumptions were used for the Black-Scholes valuation of the compensation units granted:

April 30, 2021 April 30, 2020
Weighted average assumptions:
Risk-free interest rate 0.34% 0.34%
Expected dividend yield $0.00 $0.00
Expected option life (years) 3 3
Expected stock price volatility 118% 118%
Weighted average fair value at measurement date $0.15 $0.08

18 | P a g e

Notes to the Financial Statements (continued)

e) Stock options

The Company’s stock option plan authorizes for the granting of options to directors, officers, employees, and consultants. Pursuant to the terms of the Stock Option Plan, the Board of Directors may from time to time, in its discretion, and in accordance with Exchange policies, grant incentive stock options ("Options") to purchase the Company’s common shares to directors, officers, employees, and consultants. Under the Stock Option Plan, a maximum of 10% of the outstanding shares can be reserved for issuance. The number of shares reserved for issuance to any individual director or officer will not exceed five percent (5%) of the issued and outstanding shares and the number of shares reserved for issuance to all technical consultants will not exceed two percent (2%) of the issued and outstanding shares.

A summary of changes in stock options is as follows:

A summary of changes in stock options is as follows:
Underlying Weighted Average
Shares Exercise Price
Stock options outstanding, April 30, 2019 2,593,276 $0.33
Granted 3,684,000 $0.11
Exercised (125,000) $0.10
Expired (200,000) $0.11
Cancelled (231,678) $1.29
Stock options outstanding, April 30, 2020 5,720,598 $0.16
Granted 5,300,000 $0.53
Exercised (3,550,500) $0.17
Cancelled (12,885) $3.00
Stock options outstanding, April 30, 2021 7,457,213 $0.41
Stock options exercisable, April 30, 2021 7,422,838 $0.41

In September 2019, Benz cancelled an aggregate of 231,678 stock options previously held by directors and officers.

On September 7, 2019, the Company granted 200,000 stock options to a consultant, exercisable at a price of $0.11 per share for a period of two years. The option expired prior to vesting.

On March 3, 2020, the Company granted 570,000 stock options to eligible parties, exercisable at a price of $0.076 per share for a period of five years.

On April 27, 2020, the Company granted 2,914,000 stock options to eligible parties, exercisable at a price of $0.12 per share for a period of five years.

In May 2020, Benz cancelled an aggregate of 12,885 stock options previously held by a consultant.

In June 2020, the Company granted 1,400,000 stock options to eligible parties, exercisable at a price of $0.21 per share for a period of five years.

In October 2020, the Company granted 3,900,000 stock options to eligible parties, exercisable at a price of $0.64 per share for a period of three years.

19 | P a g e

Notes to the Financial Statements (continued)

During the year ended April 30, 2021, 3,550,500 stock options were exercised for proceeds of $609,378.

During the year ended April 30, 2021, the Company recorded share-based payments of $2,158,003 (2020 - $350,228), of which $1,838,283 (2020 - $177,605) pertains to directors and officers of the Company. The fair value of stock options was estimated using the Black-Scholes Option Pricing Model with the following assumptions:

Option Pricing Model with the following assumptions:
April 30, 2021 April 30, 2020
Weighted average assumptions:
Risk-free interest rate 0.50% 0.53%
Expected dividend yield $0.00 $0.00
Expected option life (years) 4.17 5.72
Expected stock price volatility 123% 129%
Weighted average fair value at measurement date $0.46 $0.10

A summary of stock options outstanding as at April 30, 2021, is as follows:

Weighted
Average
Number of Number of Remaining
Stock Options Stock Options Exercise Contractual Intrinsic
Outstanding Exercisable Price Life(inyears) Value Expiry Date
9,713 9,713 $3.00 3.72 $0.00 January 18, 2025
137,500 103,125 $0.265 6.34 $0.54 August 31, 2027
70,000 70,000 $0.076 3.84 $0.65 March 3, 2025
2,200,000 2,200,000 $0.12 3.99 $0.61 April 27, 2025
1,140,000 1,140,000 $0.21 4.09 $0.52 June 1, 2025
3,900,000 3,900,000 $0.64 2.42 $0.09 October 2,2023
7,457,213 7,422,838 3.23

8. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration and development of its properties and to maintain a flexible capital structure for its projects for the benefit of its stakeholders. In the management of capital, the Company includes the components of shareholders’ equity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares or adjust the amount of cash and cash equivalents. Management reviews the capital structure on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

The Company is not subject to externally imposed capital requirements. There were no changes to the Company’s capital management during the year ended April 30, 2021.

20 | P a g e

Notes to the Financial Statements (continued)

9. FINANCIAL INSTRUMENTS AND RISK

The Company’s financial instruments consist of cash and cash equivalents, and trade and other payables. The fair value of the financial instruments approximates their carrying values, unless otherwise noted.

The Company’s risk exposures and the impact on the Company’s financial instruments are summarized below:

a) Credit risk

The Company’s credit risk is mainly attributable to its liquid financial assets: cash and cash equivalents. The Company deposits cash with high credit quality financial institutions and credit risk is considered to be minimal. The Company’s maximum exposure to credit risk is $13,144,767, which is the carrying value of the Company’s cash and cash equivalents at April 30, 2021.

b) Liquidity risk

The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at April 30, 2021, the Company had a cash and cash equivalents balance of $13,144,767 (April 30, 2020 - $2,350,371) to settle current liabilities of $4,527,645 (April 30, 2020 - $243,785).

c) Foreign exchange risk

Foreign exchange risk is the risk that the Company’s financial instruments will fluctuate in value as a result of movements in foreign exchange rates. The Company is exposed to foreign currency risk to the extent that monetary assets and liabilities held by the Company are not denominated in Canadian dollars. As at April 30, 2021, the Company is exposed to currency risk as some transactions and balances are denominated in Australian dollars. As at April 30, 2021, a 10% change of the Canadian dollar relative to the Australian dollar would have net financial impact of approximately $147,000 (2020 - $nil). The Company does not use derivative instruments to hedge exposure to foreign exchange rate risk.

10. INCOME TAXES

A reconciliation of income taxes at statutory rates with reported taxes is as follows:

April 30, 2021 April 30, 2020
Statutoryrates 27% 27%
Loss before income taxes $(9,459,119) $ (1,303,850)
Expected income tax recovery at statutory rate 2,553,962 352,040
Non-deductible items and permanent differences (2,120,904) (169,665)
Effect of change in tax rates - -
Change in valuation allowance (433,058) (182,375)
Future income tax recovery $- $-

21 | P a g e

Notes to the Financial Statements (continued)

The significant components of the Company's future income tax assets are as follows:

April 30, 2021 April 30, 2020
Future income tax asset:
Non-capital loss carryforwards $ 1,365,478 $ 932,420
Exploration expenditure pool 588,612 494,879
Undeducted financingcosts 357,096 154,365
2,311,187 1,581,664
Less: valuation allowance (2,311,187) (1,581,664)
Net future income tax assets $- $-

The Company has non-capital losses for tax purposes of approximately $5,057,300 (2020 - $3,453,400), which may be used to reduce future taxable income in Canada, expiring beginning in 2022. The Company has unclaimed exploration expenditures of approximately 2,162,800 (2020 - $1,832,800), which can be deducted for income tax purposes in Canada in future years at the Company’s discretion.

11. SUBSEQUENT EVENTS

In May 2021, the Company issued 300,000 common shares upon the exercise of 300,000 warrants for proceeds of $51,000.

22 | P a g e

8. Schedule of Mining Claims

Option to Acquire
Title Number Location Area (Ha) Interest (%)
2020599 Quebec 52.63 100%
2020600 Quebec 52.63 100%
2020601 Quebec 52.63 100%
2020602 Quebec 52.63 100%
2020603 Quebec 52.63 100%
1023047 Quebec 52.75 100%
1023048 Quebec 52.75 100%
1023049 Quebec 52.75 100%
1023050 Quebec 52.75 100%
1023051 Quebec 52.74 100%
1023052 Quebec 52.74 100%
1023053 Quebec 52.74 100%
1023054 Quebec 52.73 100%
1023055 Quebec 52.73 100%
1023056 Quebec 52.72 100%
1023057 Quebec 52.72 100%
1023058 Quebec 52.72 100%
1023059 Quebec 52.72 100%
1023060 Quebec 52.71 100%
1023061 Quebec 52.71 100%
1023062 Quebec 52.71 100%
1023063 Quebec 52.71 100%
1023064 Quebec 52.71 100%
1023065 Quebec 52.71 100%
1023066 Quebec 52.71 100%
1023067 Quebec 52.71 100%
1023068 Quebec 52.7 100%
1023069 Quebec 52.7 100%
1023070 Quebec 52.7 100%
1023071 Quebec 52.7 100%
1023072 Quebec 52.7 100%
1023073 Quebec 52.7 100%
1023074 Quebec 52.7 100%
1023075 Quebec 52.69 100%
1023076 Quebec 52.69 100%
1023077 Quebec 52.69 100%
1023078 Quebec 52.69 100%
1023079 Quebec 52.69 100%
1023080 Quebec 52.69 100%
1023081 Quebec 52.69 100%
1023082 Quebec 52.68 100%
1023083 Quebec 52.68 100%
1023084 Quebec 52.68 100%

BENZ MINING CORP. ARBN 642 228 804

1023085 Quebec 52.68 100%
1023086 Quebec 52.68 100%
1023130 Quebec 52.7 100%
1023131 Quebec 52.7 100%
1023137 Quebec 52.69 100%
1023138 Quebec 52.7 100%
1023139 Quebec 52.7 100%
1023140 Quebec 52.7 100%
1023141 Quebec 52.7 100%
1023142 Quebec 52.7 100%
1023143 Quebec 52.7 100%
1023149 Quebec 52.69 100%
1023150 Quebec 52.69 100%
1023151 Quebec 52.69 100%
1023152 Quebec 52.69 100%
1023153 Quebec 52.69 100%
1023154 Quebec 52.69 100%
1023155 Quebec 52.69 100%
1023156 Quebec 52.69 100%
1023157 Quebec 52.69 100%
1023158 Quebec 52.69 100%
1023164 Quebec 52.68 100%
1023165 Quebec 52.68 100%
1023166 Quebec 52.68 100%
1023167 Quebec 52.68 100%
1023168 Quebec 52.68 100%
1023169 Quebec 52.68 100%
1023170 Quebec 52.68 100%
1023171 Quebec 52.68 100%
1023172 Quebec 52.68 100%
1023173 Quebec 52.68 100%
1023174 Quebec 52.68 100%
1023175 Quebec 52.68 100%
1023176 Quebec 52.68 100%
1023181 Quebec 52.67 100%
1023182 Quebec 52.67 100%
2010352 Quebec 52.73 100%
2010353 Quebec 52.73 100%
2010354 Quebec 52.73 100%
2010355 Quebec 52.73 100%
2010356 Quebec 52.69 100%
2010357 Quebec 52.69 100%
2010358 Quebec 52.69 100%
2010359 Quebec 52.69 100%
2010360 Quebec 52.69 100%
2010361 Quebec 52.68 100%
2010362 Quebec 52.68 100%

BENZ MINING CORP. ARBN 642 228 804

2010363 Quebec 52.68 100%
2010364 Quebec 52.67 100%
2020570 Quebec 52.67 100%
2020571 Quebec 52.67 100%
2020572 Quebec 52.67 100%
2020573 Quebec 52.67 100%
2020574 Quebec 52.67 100%
2020575 Quebec 52.67 100%
2020576 Quebec 52.67 100%
2020577 Quebec 52.66 100%
2020578 Quebec 52.66 100%
2020579 Quebec 52.66 100%
2020580 Quebec 52.66 100%
2020581 Quebec 52.66 100%
2020582 Quebec 52.66 100%
2020583 Quebec 52.66 100%
2020584 Quebec 52.66 100%
2020585 Quebec 52.65 100%
2020586 Quebec 52.65 100%
2020587 Quebec 52.65 100%
2020588 Quebec 52.65 100%
2020589 Quebec 52.65 100%
2020590 Quebec 52.65 100%
2020591 Quebec 52.65 100%
2020592 Quebec 52.64 100%
2020593 Quebec 52.64 100%
2020594 Quebec 52.64 100%
2020595 Quebec 52.64 100%
2020596 Quebec 52.64 100%
2020597 Quebec 52.64 100%
2020598 Quebec 52.64 100%
2165897 Quebec 52.75 100%
2165898 Quebec 52.75 100%
2165899 Quebec 52.75 100%
2165900 Quebec 52.75 100%
2165901 Quebec 52.75 100%
2165902 Quebec 52.75 100%
2165903 Quebec 52.74 100%
2165904 Quebec 52.74 100%
2165905 Quebec 52.74 100%
2165906 Quebec 52.74 100%
2165907 Quebec 52.74 100%
55689 Quebec 52.73 100%
55690 Quebec 52.73 100%
55691 Quebec 52.73 100%
55692 Quebec 52.73 100%
55693 Quebec 52.74 100%

BENZ MINING CORP. ARBN 642 228 804

55694 Quebec 52.74 100%
55695 Quebec 52.7 100%
55696 Quebec 52.7 100%
55697 Quebec 52.7 100%
55698 Quebec 52.7 100%
55699 Quebec 52.7 100%
55700 Quebec 52.7 100%
55701 Quebec 52.7 100%
55702 Quebec 52.7 100%
55703 Quebec 52.7 100%
55704 Quebec 52.7 100%
55705 Quebec 52.7 100%
55706 Quebec 52.7 100%
55707 Quebec 52.7 100%
55708 Quebec 52.71 100%
55709 Quebec 52.71 100%
55710 Quebec 52.71 100%
55711 Quebec 52.71 100%
55712 Quebec 52.71 100%
55713 Quebec 52.71 100%
55714 Quebec 52.71 100%
55715 Quebec 52.71 100%
55716 Quebec 52.71 100%
55717 Quebec 52.71 100%
55718 Quebec 52.71 100%
55719 Quebec 52.71 100%
55720 Quebec 52.71 100%
55721 Quebec 52.72 100%
55722 Quebec 52.72 100%
55723 Quebec 52.72 100%
55724 Quebec 52.72 100%
55725 Quebec 52.72 100%
55726 Quebec 52.72 100%
55727 Quebec 52.72 100%
55728 Quebec 52.72 100%
55729 Quebec 52.72 100%
55730 Quebec 52.72 100%
55731 Quebec 52.72 100%
55732 Quebec 52.72 100%
55733 Quebec 52.72 100%
55734 Quebec 52.72 100%
55735 Quebec 52.72 100%
55736 Quebec 52.72 100%
2020564 Quebec 52.73 100%
2020565 Quebec 52.72 100%
2020566 Quebec 52.71 100%
2020567 Quebec 52.7 100%

BENZ MINING CORP. ARBN 642 228 804

2020568 Quebec 52.69 100%
2020569 Quebec 52.69 100%
1023087 Quebec 52.77 100%
1023088 Quebec 52.77 100%
1023089 Quebec 52.77 100%
1023090 Quebec 52.77 100%
1023091 Quebec 52.77 100%
1023092 Quebec 52.77 100%
1023093 Quebec 52.76 100%
1023094 Quebec 52.76 100%
1023095 Quebec 52.76 100%
1023096 Quebec 52.76 100%
1023097 Quebec 52.76 100%
1023098 Quebec 52.76 100%
1023099 Quebec 52.77 100%
1023100 Quebec 52.77 100%
1023101 Quebec 52.77 100%
1023102 Quebec 52.75 100%
1023103 Quebec 52.75 100%
1023104 Quebec 52.75 100%
1023105 Quebec 52.75 100%
1023106 Quebec 52.75 100%
1023107 Quebec 52.75 100%
1023108 Quebec 52.75 100%
1023109 Quebec 52.75 100%
1023110 Quebec 52.75 100%
1023111 Quebec 52.76 100%
1023112 Quebec 52.76 100%
1023113 Quebec 52.74 100%
1023114 Quebec 52.74 100%
1023115 Quebec 52.74 100%
1023116 Quebec 52.74 100%
1023117 Quebec 52.74 100%
1023118 Quebec 52.74 100%
1023119 Quebec 52.74 100%
1023120 Quebec 52.73 100%
1023121 Quebec 52.73 100%
1023122 Quebec 52.73 100%
1023123 Quebec 52.73 100%
1023124 Quebec 52.73 100%
1023125 Quebec 52.72 100%
1023126 Quebec 52.72 100%
1023127 Quebec 52.72 100%
1023128 Quebec 52.72 100%
1023129 Quebec 52.72 100%
1023132 Quebec 52.71 100%
1023133 Quebec 52.71 100%

BENZ MINING CORP. ARBN 642 228 804

1023134 Quebec 52.71 100%
1023135 Quebec 52.71 100%
1023136 Quebec 52.71 100%
1023144 Quebec 52.7 100%
1023145 Quebec 52.7 100%
1023146 Quebec 52.7 100%
1023147 Quebec 52.7 100%
1023148 Quebec 52.7 100%
1023159 Quebec 52.69 100%
1023160 Quebec 52.69 100%
1023161 Quebec 52.69 100%
1023162 Quebec 52.69 100%
1023163 Quebec 52.69 100%
1023177 Quebec 52.68 100%
1023178 Quebec 52.68 100%
1023179 Quebec 52.68 100%
1023180 Quebec 52.68 100%
2001363 Quebec 52.77 100%
2001364 Quebec 52.76 100%
2001365 Quebec 52.76 100%
2001366 Quebec 52.75 100%
2001367 Quebec 52.74 100%
2001368 Quebec 52.74 100%
2001369 Quebec 52.73 100%
2001370 Quebec 52.73 100%
2001371 Quebec 52.72 100%
2001372 Quebec 52.72 100%
2001373 Quebec 52.72 100%
2001374 Quebec 52.71 100%
2001375 Quebec 52.71 100%
2001376 Quebec 52.7 100%
2001377 Quebec 52.7 100%
2001378 Quebec 52.7 100%
2001379 Quebec 52.69 100%
2001380 Quebec 52.69 100%
2001381 Quebec 52.68 100%
2001382 Quebec 52.68 100%
1133433 Quebec 52.77 100%
1133434 Quebec 52.77 100%
1133435 Quebec 52.77 100%
1133436 Quebec 52.77 100%
1133437 Quebec 52.77 100%
1133438 Quebec 52.77 100%
1133439 Quebec 52.77 100%
1133440 Quebec 52.77 100%
1133441 Quebec 52.77 100%
1133442 Quebec 52.77 100%

BENZ MINING CORP. ARBN 642 228 804

1133443 Quebec 52.77 100%
1133444 Quebec 52.77 100%
1133445 Quebec 52.77 100%
1133446 Quebec 52.76 100%
1133447 Quebec 52.76 100%
1133448 Quebec 52.76 100%
1133449 Quebec 52.76 100%
1133450 Quebec 52.76 100%
1133451 Quebec 52.76 100%
1133452 Quebec 52.76 100%
1133453 Quebec 52.76 100%
1133454 Quebec 52.76 100%
1133455 Quebec 52.76 100%
1133456 Quebec 52.76 100%
1133457 Quebec 52.76 100%
1133458 Quebec 52.76 100%
1133459 Quebec 52.76 100%
1133460 Quebec 52.75 100%
1133461 Quebec 52.75 100%
1133462 Quebec 52.75 100%
1133463 Quebec 52.75 100%
1133464 Quebec 52.75 100%
1133465 Quebec 52.75 100%
1133466 Quebec 52.75 100%
1133467 Quebec 52.75 100%
1133468 Quebec 52.75 100%
1133469 Quebec 52.75 100%
1133470 Quebec 52.75 100%
1133471 Quebec 52.75 100%
1133472 Quebec 52.75 100%
1133473 Quebec 52.75 100%
1133474 Quebec 52.75 100%
1133475 Quebec 52.75 100%
1133476 Quebec 52.75 100%
1133477 Quebec 52.74 100%
1133478 Quebec 52.74 100%
1133479 Quebec 52.74 100%
1133480 Quebec 52.74 100%
1133481 Quebec 52.74 100%
1133482 Quebec 52.74 100%
1133483 Quebec 52.74 100%
1133484 Quebec 52.74 100%
1133485 Quebec 52.74 100%
1133486 Quebec 52.74 100%
1133487 Quebec 52.74 100%
1133488 Quebec 52.74 100%
1133489 Quebec 52.74 100%

BENZ MINING CORP. ARBN 642 228 804

1133490 Quebec 52.74 100%
1133491 Quebec 52.74 100%
1133492 Quebec 52.74 100%
1133493 Quebec 52.74 100%
1133494 Quebec 52.74 100%
1133495 Quebec 52.74 100%
1133496 Quebec 52.73 100%
1133497 Quebec 52.73 100%
1133498 Quebec 52.73 100%
1133499 Quebec 52.73 100%
1133500 Quebec 52.73 100%
1133501 Quebec 52.73 100%
1133502 Quebec 52.73 100%
1133503 Quebec 52.73 100%
1133504 Quebec 52.73 100%
1133505 Quebec 52.73 100%
1133506 Quebec 52.73 100%
1133507 Quebec 52.73 100%
1133508 Quebec 52.73 100%
1133509 Quebec 52.73 100%
1133510 Quebec 52.73 100%
1133511 Quebec 52.73 100%
1133512 Quebec 52.73 100%
1133513 Quebec 52.73 100%
1133514 Quebec 52.72 100%
1133515 Quebec 52.72 100%
1133516 Quebec 52.72 100%
1133517 Quebec 52.72 100%
1133518 Quebec 52.72 100%
1133519 Quebec 52.72 100%
1133520 Quebec 52.72 100%
1133521 Quebec 52.72 100%
1133522 Quebec 52.72 100%
1133523 Quebec 52.72 100%
1133524 Quebec 52.72 100%
1133525 Quebec 52.72 100%
1133526 Quebec 52.72 100%
1133527 Quebec 52.72 100%
1133528 Quebec 52.72 100%
1133529 Quebec 52.71 100%
1133530 Quebec 52.71 100%
1133531 Quebec 52.71 100%
1133532 Quebec 52.71 100%
1133533 Quebec 52.71 100%
1133534 Quebec 52.71 100%
1133535 Quebec 52.71 100%
1133536 Quebec 52.71 100%

BENZ MINING CORP. ARBN 642 228 804

1133537 Quebec 52.71 100%
1133538 Quebec 52.71 100%
1133539 Quebec 52.71 100%
1133540 Quebec 52.71 100%
1133541 Quebec 52.71 100%
1133542 Quebec 52.71 100%
1133543 Quebec 52.71 100%
1133544 Quebec 52.7 100%
1133545 Quebec 52.7 100%
1133546 Quebec 52.7 100%
1133547 Quebec 52.7 100%
1133548 Quebec 52.7 100%
1133549 Quebec 52.7 100%
1133550 Quebec 52.7 100%
1133551 Quebec 52.7 100%
1133552 Quebec 52.7 100%
1133553 Quebec 52.7 100%
1133554 Quebec 52.7 100%
1133555 Quebec 52.7 100%
1133556 Quebec 52.7 100%
1133557 Quebec 52.7 100%
1133558 Quebec 52.7 100%
1133559 Quebec 52.69 100%
1133560 Quebec 52.69 100%
1133561 Quebec 52.69 100%
1133562 Quebec 52.69 100%
1133563 Quebec 52.69 100%
1133564 Quebec 52.69 100%
1133565 Quebec 52.69 100%
1133566 Quebec 52.69 100%
1133567 Quebec 52.69 100%
1133568 Quebec 52.69 100%
1133569 Quebec 52.69 100%
1133570 Quebec 52.68 100%
1133571 Quebec 52.68 100%
1133572 Quebec 52.68 100%
1133573 Quebec 52.68 100%
1133574 Quebec 52.68 100%
1133575 Quebec 52.68 100%
1133576 Quebec 52.68 100%
1133577 Quebec 52.68 100%
1133578 Quebec 52.68 100%
1133579 Quebec 52.68 100%
1133580 Quebec 52.68 100%
1133581 Quebec 52.67 100%
1133582 Quebec 52.67 100%
1133583 Quebec 52.67 100%

BENZ MINING CORP. ARBN 642 228 804

Quebec

104458 Quebec 52.73 100%

BENZ MINING CORP. ARBN 642 228 804