CONDOR RESOURCES INC. — Management Reports 2022

Jun 28, 2022

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Management’s Discussion and Analysis

www.condorresources.com

For The Year Ended February 28, 2022

CONDOR RESOURCES INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Date – The effective date of this MD&A is June 24, 2022.

Introduction - This management’s discussion and analysis (“MD&A”) focuses on significant factors that affected Condor Resources Inc. and its subsidiaries (collectively, “Condor” or the “Company”) during the relevant reporting period and to the date of this report. The MD&A supplements, but does not form part of, the audited consolidated financial statements of the Company and the notes thereto for the year ended February 28, 2022. Consequently, the following discussion and analysis should be read in conjunction with the audited consolidated financial statements, and the notes thereto, for the year ended February 28, 2022. All amounts presented in this MD&A are in Canadian dollars unless otherwise indicated.

The results for the year ended February 28, 2022 are not necessarily indicative of the results that may be expected for any future period. Information contained herein is presented as at this date, unless otherwise indicated.

As of March 1, 2010, the Company adopted International Financial Reporting Standards (“IFRS”). The consolidated audited financial statements and the notes thereto for the year ended February 28, 2022 were prepared in accordance with IFRS, as issued by the International Accounting Standards Board. For the purposes of preparing this MD&A, management, in conjunction with the Board of Directors, considers the materiality of information. Information is considered material if: (i) such information results in, or would reasonably be expected to result in, a significant change in the market price or value of the Company common shares; or (ii) there is a substantial likelihood that a reasonable investor would consider it important in making an investment decision; or (iii) if it would significantly alter the total mix of information available to investors.

Company Overview - Condor Resources Inc. was incorporated on November 26, 2003 under the Company Act (British Columbia), and the address of its registered office is 1600-925 West Georgia Street, Vancouver, BC, V6C 3L2. The Company was listed on the TSX Venture Exchange (“TSX-V”) on March 3, 2006. At June 24, 2022, there were 126,882,308 shares issued and outstanding. The principal business objectives of the Company are to acquire and explore mineral properties located in Peru. The Company explores for minerals with a strong emphasis on gold and copper prospects and currently has no producing mines. The Company has no earnings and therefore finances these exploration activities by the sale of shares, and by payments from the sale or option of its mineral properties. The key determinants of the Company’s operating results are the following:

• (a) the state of capital markets, which affects the ability of the Company to finance its exploration activities; and

• (b) the write-down and abandonment of mineral properties as exploration results provide further information relating to the underlying value of such properties;

Additional information on Condor Resources Inc. can be found at www.sedar.com or on the Company’s website located at www.condorresources.com.

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The Company’s portfolio of mineral exploration projects is summarized below:

PERU

Pucamayo

Pucamayo encompasses 109 sq. km of contiguous concessions located in the Departments of Ica, Lima, and Huancavelica, approximately 185 km south-east of Lima. All the concessions are 100% owned, except for the 6 sq km Pucamayo 14 concession. The Pucamayo 14 concession was acquired by purchase agreement in 2007, as amended in February 2009; the Company owns an 85% interest in Pucamayo 14, with the seller holding a 1% NSR.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. (“Sandstorm”) to sell a package of royalties, including the grant of a 0.5% NSR on the Pucamayo project, exclusive of the Pucamayo 14 concession, and the assignment of Condor’s right to repurchase the existing 1% NSR on the Pucamayo 14 concession.

At Pucamayo East, a residual quartz-alunite lithocap has been mapped over an area of 3 x 2 kilometres with anomalous gold and silver mineralization hosted in large hydrothermal breccia bodies and residual quartz, locally with a vuggy texture. In addition, a separate stockwork veinlet zone with anomalous copper and gold has been defined which may be related to the top of a gold-copper porphyry system, not necessarily related to the outcropping lithocap. There are a series of at least seven precious metal enriched intermediate sulphidation quartz epithermal veins in the area.

The company retained Dr. Jeff Hedenquist, an independent consultant who specializes in this geological environment, to visit Pucamayo East in July 2017 and comment on the geological setting and exploration potential. Amongst his comments, Dr. Hedenquist recommended initial drill testing of the gold-bearing breccia body and related structural feeders of the lithocap, as well as drill testing the stockwork veinlet zone which may be the top of a porphyry goldcopper system. The full text of Dr. Hedenquist’s report is available on the Company’s website.

In August 2018, the Company completed a program of ground geophysical surveys, consisting of 23-line kilometers of IP and magnetics at Pucamayo East. The program achieved the primary objective of defining additional drill targets and expanding the target areas to the south and east of the original drill target. The area of the geophysics survey coincides with both a large high sulphidation epithermal target and a porphyry-type target. The 3 x 2 km high sulphidation epithermal target is evidenced with mapped areas of hydrothermal breccias, vuggy silica, residual silica, and clay assemblages. The results of the geophysics program confirm the conceptual model, and the exploration potential at Pucamayo East.

The Company has received its Declaración de Impacto Ambiental (“DIA”) at Pucamayo from the Peruvian Ministry of Energy and Mines (“MEM”). The Company is preparing an application to the MEM to increase the area of the DIA. The Company has been working closely with members of the local community to obtain their permission to commence exploration activities. As of the date of this report, we have not obtained a community access agreement.

Huiñac Punta

Huiñac Punta is a 100% owned prospect of approximately 20 sq. km located within the polymetallic belt of the central Andes, about 65 km south-east of the Antamina mine, and about 90 km east of the Company’s Soledad project. The original Huiñac Punta concession was acquired in 2016 at nominal cost. In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including the grant of a 0.5% NSR on the Huiñac Punta project. Two additional concessions, acquired by staking in late 2017, are also subject to the Sandstorm 0.5% NSR.

This project hosts potential for the discovery of an intrusive related silver copper replacement system hosted in a carbonate dominated sedimentary sequence. Small scale underground mining of silver, copper, and lead occurred on the neighbouring concessions until around 1970. A small prospecting and sampling program was undertaken by Condor personnel in October 2017, and the results were summarized in a press release dated January 9, 2018. Results from the 26 rock chip samples included silver values up to 4,115 g/t, and anomalous copper and zinc values. In March of 2018, a further 145 rock chip samples, all 2m in length, were collected, and results issued in an April 19, 2018 press release. Over 24 of the 145 samples returned silver values greater than 100g/t, and up to 1,295 g/t. This sampling has

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confirmed the mineralized system hosts potential for discovery of a bulk tonnage, disseminated silver-base metal deposit, related to brecciation and silicification in a metasomatic carbonate replacement type model.

In August 2020 Condor completed a drone supported magnetic survey at Huiñac Punta. This survey covered the area of interest and vicinity using 100 m line spacing, and a total of 84 line kms were completed.

In November 2020 a detailed ground geophysical survey was completed at Huiñac Punta. The Induced Polarization ("IP") survey consisted of approximately 16 line kilometers, comprised of 8 lines, each 2km in length, line spacing at 100m, with polo-dipole spacing of 50m. The IP survey was designed to assist in defining the geometry of a postulated carbonate replacement system ("CRD") system, and to compliment data obtained from the magnetic survey conducted on the project in August. The primary objective of the combined geophysics programs is to prioritize targets for a maiden diamond drill program.

The Company received its principal permit - the DIA - in 2020, and subsequently filed its ‘Autorizacion de Incio de Actividades de Exploración’ with the MEM. With no advancement after responding to observations noted by the MEM, a follow up meeting with the MEM in June 2021 revealed that the delays in approval were being hampered by a shortage of personnel at MEM. To expedite the process, the Company retained Embellie, a consulting firm specializing in community identifications and impacts, to research, document, analyze, and report on the identification of any potential indigenous people within the area of our project, and any possible impacts to any community identified. The study and report were completed and filed with the MEM. After review, a series of meetings were organized by the MEM with three nearby communities, as part of the ‘consulta previa’ process. Consulta previa is a regulated part of the initiation of activities, in areas where exploration may impact indigenous people. Two of the three meetings have taken place, with the third meeting scheduled for late June. We expect to receive approval to commence exploration activities in due course.

Cobreorco

The 100% owned Cobreorco copper property is located in the Department of Apurimac, south central Peru, and has been acquired by both staking and sealed bid auction, commencing with the acquisition of 1.7 sq km in 2018. The Company has been working to perfect title on additional concessions, and the current area of the project is approximately 37 sq km. An exposed copper porphyry and skarn and outcroppings of massive magnetite-iron oxide, and porphyry with intense stockwork and porphyry alteration assemblages with gold and copper mineralization, led to the interest in this area. There is also a skarn-gossan outcropping on the concessions that has been exploited on a small scale by artisanal miners. Cobreorco is not subject to a royalty.

A sampling program in 2019 (51 rock channel samples, typically over a 2m length), tested over 1% copper for 9 samples, and between 0.1% and 1.0% copper for 29 samples. Gold values were as high as 10.8 g/t, with 19 of the 51 samples testing over 1 g/t Au. Sampling to date suggests the mineralization within the porphyry type exposure is relatively homogeneous in gold and copper values.

A drone supported magnetic survey was completed in July 2020. The survey covered an area of approximately 5 sq km at a 100 m line spacing for a total of 68 line kms. Condor completed a geologic sampling program earlier in 2021 to follow up the drone based magnetic survey completed in 2020. The magnetic survey suggested the presence of two potential mineralized centers that correlate well with exposed surface gold/copper porphyry and skarn outcrops. The sampling results and analysis of the proprietary magnetic survey will assist in designing a diamond drill program, and to prepare a Declaración de Impacto Ambiental (“DIA”) application

Horizonte Consultores have completed the initial baseline water and soil sampling and other studies, required for our DIA application to the MEM. During the past year the Company has been assisting the local community with provisions of personal protective equipment during the Covid-19 pandemic. Permits for surface exploration programs are in place with the two local communities. The Company is currently in discussions with the two communities to finalize the necessary community agreements required to apply for a DIA.

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Andrea

The Company acquired a 100% interest in the 22 sq. km Andrea project by staking and by sealed bid auction conducted by the MEM. The Andrea property is not subject to any royalties. Andrea is located in the Department of Ayacucho, approximately 480 km south-east of Lima in the south-central Andes, approximately 15 km north of the Breapampa mine, and situated at elevations ranging from 4100 to 4600m. Condor acquired the Andrea project because our initial evaluation recognized a high sulphidation epithermal type gold and silver target within an approximate 800m diameter target area.

The initial reconnaissance mapping was completed in May 2017, with a total of 117 rock chip channel samples collected and analyzed. Exploration sampling and mapping was concentrated in the central part of the project, within a much larger advanced argillic alteration envelope. Gold and silver mineralization are hosted in hydrothermal breccia ledges, with the surface area exposure of the largest identified breccia being up to 200m in diameter. The breccia exhibits halos of advanced argillic, granular silica and vuggy silica. The sample results confirmed the anomalous presence of pathfinder elements typical of high sulphidation gold-bearing epithermal systems.

Gold assays range from negligible to 4.2 g/t Au, with 23 of the samples showing anomalous gold values exceeding 50 ppb, including 13 samples exceeding 500 ppb, and 7 samples greater than 1 g/t. Samples taken in the 800m diameter ‘core target area’ – 81 of the 117 samples – exhibited more consistent gold values, ranging from 5 ppb to 4180 ppb, and averaged 41 ppb.

In September 2018, the Company acquired historic sampling results from a former owner of a portion of the Andrea project, which identified anomalous areas previously unrecognized by the Company. The Company subsequently completed additional mapping and sampling in this area.

Discussions with the local community to obtain the surface permits required to apply for a DIA at Andrea were scheduled during the fourth quarter of 2021, but subsequently postponed during the anti-mining protests at the nearby Apumayo and Breapampa mines. No further discussions have been held with the local community.

Soledad

The Soledad Au-Ag-Cu property is located in the Yanacocha – Pierina epithermal precious metals Tertiary-aged volcanic belt of the Central Andes, approximately 34 km south of the Pierina gold mine. The Company owns 3 concessions with a net area of 10.55 sq. km. The property is currently subject to a farm-out and sale agreement to Chakana Resources S.A.C. (“Chakana”).

The property comprises a cluster of nine mineralized hydrothermal quartz tourmaline-sulphide breccia bodies and quartz tourmaline veins in an extensively altered system exposed over an area of approximately 2 km by 2 km. The multiple quartz-tourmaline mineralized structures measure up to 500m long and 10m wide, and there are numerous polymetallic veins with Ag-Cu-Pb-Zn mineralization currently being mined by third parties located adjacent and to the south-east of the Soledad property. On the property, an advanced argillic cap is exposed at higher elevations, with observed quartz-alunite, granular silica, vuggy silica, anomalous gold/silver, and the presence of pathfinder elements.

A Phase I diamond drill program consisting of 12 holes and 2,084 metres was completed in June 2014, with encouraging results. Subsequently, a deep penetrating IP geophysical survey was completed over a 2km x 3km area, in-fill IP lines on the Faro target, and an in-fill IP over the area of Breccia #5 and #6.

A four hole, 2,808m drill program was completed in May of 2016. Three of these holes were designed to provide more information on the extent of the breccias (#1, #5, and #6), and to test for evidence of porphyry style mineralization at depth. The fourth hole was designed to test an epithermal high sulphidation target located in the north-east area of the project, and assay results from this hole returned no significant results.

In April 2017 the Company signed an agreement with Chakana, which allows Chakana to earn a 100% interest, over 4.5 years, by completing 12,500m of drilling (or work equivalent), make cash payments totalling US$5.375m, issue 500,000 Chakana shares to Condor, and grant a 2% NSR to Condor. Chakana has the option to repurchase half of the NSR by payment of US$2 million.

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In March of 2019, the Company and Chakana amended the NSR terms of their April 2017 agreement. In exchange for 900,000 Chakana shares and US$275,000 cash, on exercise of the purchase option, Condor will retain a 1% NSR on the concessions, and a 2 km area of influence around the Company’s concessions. Chakana will have the right to buy down Condor's NSR to a 0.5% NSR by further payment of US$1 million. In the event Chakana does not exercise their option to acquire the Soledad concessions, Chakana will retain a 1% NSR royalty on the concessions, which royalty Condor will have the option to reduce to a 0.5% NSR by payment of US$1 million.

In November 2020, the Company and Chakana further amended the terms of the April 2017 agreement. Under the original agreement, the final payment of US$4.625m by Chakana to Condor was due December 23, 2021. As amended, US$200,000 was due by December 23, 2021 (paid), with the balance of US$4.425m due on or before April 23, 2022.

In April 2022, the Company and Chakana agreed to extend the expiry of Chakana’s option, and on signing the agreement, Chakana paid US$200,000 towards the amount of the final payment, and a further US$800,000 was paid June 23, 2022, as well as a payment of 1,379,310 Chakana shares. The balance of US$3.425 million cash will be satisfied in three payments over the next three years. The next two payments are due on or before June 23, 2023 and June 23, 2024 (each US$1million cash and Cdn $200,000 in Chakana shares). The final payment is due on or before June 23, 2025, and is comprised of US$1,425,000 cash and the issue of Cdn$400,000 of Chakana shares. If Chakana make any of the cash payments 90 or more days before the due date, no Chakana shares will be issued with that cash payment. Voluntary resale restrictions on the Chakana shares will be in place for eighteen months for each issuance of shares.

Chakana commenced their initial drill program in August 2017. By February 28, 2019, Chakana had completed 25,211 metres of drilling in 94 holes (SDH 017 to SDH-106) in breccia pipes #1, #3, #5 and #6. These holes were designed to provide detailed information on the geometry and mineralized grades of these tourmaline breccia pipes. Results from all 94 drill holes were published by Chakana press releases dated October 6, 2017; October 25, 2017; January 31, 2018; February 7, 2018; February 22, 2018; March 2, 2018; April 4, 2018; May 28, 2018, June 26, 2018, September 11, 2018, October18, 2018, November 13, 2018, January 10, 2019, February 7, 2019, and April 2, 2019.

Chakana commenced their 20,000m Phase 3 drill program in June 2019, with the first drill hole of Phase 3 on Breccia #7. Results from the first 4 drill holes on Breccia #7 were released on July 9, 2019; results from 12 additional drill holes on Breccia #5 and #6 were released on September 10, 2019; and results from 5 drill holes (Breccia #5E, Corral Breccia #1, and Breccia #1 SE) were released on November 10, 2019. In September 2019, Chakana suspended drilling due to permitting delays.

Chakana announced approval of the Initiation of Activities for an EIAsd modification in July 2020. The Phase 3 drill program restarted in mid-August 2020 with a goal of completing 15,000 metres focussed on testing several targets including the Paloma East and Paloma West breccia pipes, and the Huancarama breccia complex. The Huancarama and Paloma breccia pipes are south of Condor’s concessions, but within our area of influence as per our agreement with Chakana.

Chakana’s drill results from Phase 3, from September 17, 2020 until the press release of May 25, 2021 were from the Paloma and Huancarama breccias, which are not located on Condor’s concessions. In the May 25th press release, Chakana estimated 47,700m of drilling had been completed on the overall project.

Further results from the Soledad project were released by Chakana on July 27th, September 7th, October 12th, October 14th, November 1st, November 18th, and January 4, 2022, and included results from Breccias #1, #5, and #7, which are located on Condor’s concessions. Chakana has reported drilling over 60,000m in 259 drillholes on the overall project, and we are advised over 60% of the total has been on Condor’s concessions. Chakana concluded their most recent drilling program in September 2021.

On January 11, 2022 Chakana released their maiden inferred resource estimate for the Soledad project. The estimate included Breccias #1, #5, #6, and #7 on Condor’s concessions, and from the Huancarama East, Paloma East, and Paloma West breccia pipes, which are not located on Condor’s concessions. Approximately 70% of the tonnage in the inferred resource estimate is located on Condor’s concessions.

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Chakana resumed drilling in mid June of 2022, and have stated they intend to test thirteen new targets at the project, including Breccia 4 area, and the Cima Blanca area, which are located on Condor’s concessions.

Ocros

The Ocros property is located in the Department of Ancash, Peru. Under an August 2007 agreement, as amended February 2009, Condor acquired an 85% interest in the Ocros porphyry copper project in northern Peru, subject to a 1% NSR to the Vendor. The project consists of 3 concessions covering 19.7 sq. km. In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, which package included the assignment of Condor’s right to repurchase the 1% NSR on the Ocros concessions.

In May 2017, the Company signed a comprehensive agreement with Compañia Minera Virgen de la Merced S.A.C. (“Merced”) on the Ocros project. Under the agreement, Merced has two exclusive options to earn up to a 70% interest in the Ocros concessions over four years. To exercise the first option to earn 51%, Merced must complete 6,000m of diamond drilling, and make cash payments of US$250,000 (received) by May 2020. Upon earning 51%, Merced has the option to earn up to a 70% interest by making an additional cash payment of US$300,000, and completing an additional 4,000m of drilling by May 16, 2021. Merced is the owner of the mineral concessions adjacent and to the south of Ocros and is operating a small mining operation on the Merced concessions.

A new company, Minera Eldorado Ocros S.A.C., (“Eldorado”) was created to hold the Ocros project. Eldorado is owned by Merced to 51%, Condor as to 34%, and the property vendor as to 15%.

In October 2021, the Company entered into an agreement with Merced whereby Merced was granted the option to acquire Condor’s remaining 34% net interest in the Ocros project. To exercise the option, Merced will pay installments of U$100,000 every three months. Upon receipt of the ten payments of US$100,000 (total US$1,000,000), Condor will transfer its minority share holdings in Eldorado to Merced. Merced are currently behind in their payments, but have indicated they intend to complete the purchase option.

Lucero

The Lucero property is located in the Department of Arequipa, Peru approximately 130 km NW of Arequipa and 25 km SE of Buenaventura’s Orcopampa mine, at elevations ranging between 5000m and 5500 m. Condor acquired via staking a 100% interest in 21 sq. km, 3 concessions, within the ex-Shila Au-Ag epithermal mining district. Buenaventura previously operated three underground mines on the Lucero property, and stopped mining in approximately 2005. Buenaventura’s production records at the Shila mine are publicly available for the years 1998 through 2004, and during this period the average gold grade reported was 14 g/t, and the average silver grade reported was 375 g/t. Lucero is one of many areas of low to intermediate sulphidation epithermal Au-Ag vein deposits hosted in Tertiary volcanics of the Central Cordillera of southern Peru.

In November 2015 the Company concluded a production royalty agreement with Compañia Minera Casapalca SA (“Casapalca”) on the Lucero project. In November 2019, Casapalca terminated the production royalty agreement. No work has been conducted on the project by the Company since Casapalca terminated the lease.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including a 50% interest in the Lucero production royalty. On termination of the Casapalca production royalty agreement, Sandstorm’s interest at Chavin converted to a 0.5% NSR.

In December 2020, Condor concluded an agreement with Calipuy Resources Inc. ("Calipuy") whereby Calipuy purchased Condor's wholly owned Peruvian subsidiary, Minas Lucero del Sur S.A.C. ("MLDS"). MLDS is a sole purpose company, and the owner of the Lucero project. Consideration is US$3.5 million, payable over six years. Should the price of gold be over US$2,500/ounce at the time of the final payment, total consideration will increase to US$4.0 million; and should the price of gold be over $3,000/ounce at the time of the final payment, the total consideration will increase to US$6.0 million. Calipuy have the option to compress the payment schedule to three years, and in such event, the total consideration will be US$3.0 million. Condor received the initial payment of US$90,000, and the second payment of US$75,000. Condor has maintained certain back in rights to participate in future Calipuy financings. Should Calipuy be conducting a financing, Condor has the option to participate in the

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financing at a 20% discount to the financing price, by converting part or all of any outstanding payment due from Calipuy. In June 2022, Element79 Gold Corp. and Calipuy signed an agreement whereby Element 79 Gold Corp will acquire all the issued shares of Calipuy.

Sandstorm Gold Ltd. hold a 0.5% NSR on the Lucero project, and Sandstorm, Condor, Calipuy and MLDS have executed an NSR assignment agreement with respect to Sandstorm's NSR, with Calipuy assuming the NSR obligations to Sandstorm.

Chavin

The 100% owned Chavin property is located the Department of Ancash within the central Andes precious metals belt in northern Peru, some 45 km NW of the Pierina gold-silver mine and 10 km SW of the Pashpap Cu-Mo porphyry project. The original 8 sq. km Chavin property was acquired by staking in 2010 and 2011. The project hosts a polymetallic precious and base metals vein system, and also shows anomalous copper and molybdenum values, at a porphyry-type target. In November 2015, the Company concluded a production royalty agreement with Casapalca on the Chavin project. Under the royalty agreement, Casapalca was obligated to pay Condor Peru a net smelter royalty of 3%, subject to an annual minimum of US$25,000, payable in advance. Casapalca was obligated to complete a minimum of 1,000m of diamond drilling on the project within one year of obtaining the necessary permits. In May 2016, an agreement was reached with the local community for exploration and exploitation at the project, and in October 2017, Casapalca received their DIA - the primary environmental permit – for the project. Casapalca commenced their initial drill program in August, 2018.

Casapalca fulfilled its obligations and completed 1,219m of drilling in 5 drill holes in late 2018. Casapalca did not make the annual minimum royalty payment in November 2018, and, as a result, terminated the production royalty agreement. Results from Casapalca’s drilling at Chavin were received in March 2019. Casapalca’s primary objective was to confirm the continuity to depth of a high-grade polymetallic vein, traced at surface for over 1km. Casapalca’s drill program was unsuccessful in confirming the vein continuity. However, their drilling did confirm anomalous molybdenum and copper values, and evidence of copper porphyry-type alteration and mineral assemblages.

On termination of the Casapalca mineral lease, Casapalca transferred title of 5 adjoining concessions (approximately 34 sq. km) to the Company; the current Chavin property total size is now approximately 42 sq. km. The Company has not completed any work on the project since Casapalca terminated their lease. The Company is seeking a joint venture partner to continue to explore and advance the project.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including a 50% interest in the Chavin production royalty. On termination of the Casapalca production royalty agreement, Sandstorm’s interest at Chavin converted to a 0.5% NSR.

Quriurqu

The Quriurqu property is located in the Department of Ancash, northern Peru approximately 10 km south of the Soledad project. In 2011, the Company acquired by staking a 100% interest in this 2.5 sq. km precious metals project. In 2016 the Company acquired a further 6 sq. km by sealed bid auction conducted by the Peruvian Ministry of Energy and Mines increasing the project area to 8.5 sq. km. Quriurqu’s high to intermediate sulphidation epithermal system is hosted in Tertiary volcanics. Condor believes the property, which has never been drill tested, has potential to host a disseminated bulk tonnage gold-silver deposit at depth. No work was conducted at Quriurqu during the current quarter. The Company is seeking a joint venture partner to continue to explore and advance the project.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including the grant of a 0.5% NSR on the Quriurqu project.

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San Martin

The 100% owned San Martin property is 5.9 sq. km in size and located in the Department of Arequipa, southern Peru approximately 7 km southeast of the Orcopampa gold mine. An initial drill program completed by the Company in April 2012 consisted of 2,001m of diamond core drilling in 10 holes. Analysis of the drill results indicates mineralization is primarily disseminated low grade silver, with smaller intervals of high grade, with the potential to host high grade silver open to the southeast and at depth. Condor believes additional drilling is warranted at San Martin to evaluate the remaining surface target which has not been thoroughly tested, and to explore the mineralized system at depth. In early 2018, restoration work was completed on the access roads and drill pads from the 2012 drill program. The Company is seeking a joint venture partner to continue to explore and advance the San Martin project.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including the grant of a 0.5% NSR on the San Martin project.

Humaya

The 100% owned Humaya property is 7 sq. km in size and located in the Department of Ayacucho, south central Peru approximately 190 km east of the city of Ica. The neighbouring concessions are held by majors. In August 2016 an initial sampling and mapping program was undertaken on the 1.1 km length of exposed outcrop along the creek in the north-east part of the concession. The outcropping is described as having intense alteration and stockwork, typical of a copper-gold porphyry system. The local geology is Cretaceous sedimentary rocks overlain by Tertiary volcanic postmineral rocks and intruded by Tertiary feldspar-hornblende-porphyry (FHP). The potassic porphyry type alteration and mineralization center are hosted principally within the FHP, with halos of hydrothermal breccias hosted in sedimentary rocks. Also observed is secondary biotite-sericite-pyrite, minor chalcopyrite, within very strong multiphase stockwork of many types of multidirectional veinlets, including B type veins with quartz-pyritechalcopyrite. This stockwork is directly related to a copper-gold mineralizing system which has been weathered with the potassic alteration preserved in some zones as patches. This alteration zone has been exposed in an area that is more than 2 kms in diameter. The porphyry is covered in part by post mineral tuffs and glacial and fluvial material. The initial 31 chip samples were collected, and tested up to 0.4 g/t Au, 0.35% Cu and 37 g/t Ag, with anomalous molybdenum values. The Company is seeking a joint venture partner to continue to explore and advance the Humaya project.

In January 2022 the Company received notice from the Peru Ministerio Cultura, proposing three protected areas in the Sondondo River valley, with the nearest of the three areas approximately 2 kilometers from our Humaya project. The Pancoy river flows through the Huamaya project, and this river drains into the Sondondo river.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including the grant of a 0.5% NSR on the Humaya project.

Quilisane

The 100% owned Quilisane gold/silver property is about 4 sq. km in size and located in the Department of Puno, approximately 75 km north-west of the city of Puno, and about 12 km south-east of the Arasi gold mine. Quilisane was acquired by staking in 2016 at nominal cost. In 2019 the Company reduced the concession areas from about 18.4 sq. km in size to approximately 4 sq. km. Quilisane is host to a large epithermal alteration system, with anomalous geochemical results for gold and pathfinder elements. There is evidence of several shallow drill holes at the eastern part of the property that were thought to have been completed in 2003. A small mapping and sampling program was completed by Condor geologists in October 2021. The Company is seeking a joint venture partner to continue to explore and advance the Quilisane project.

In February 2017 the Company reached agreement with Sandstorm Gold Ltd. to sell a package of royalties, including the grant of a 0.5% NSR on the Quilisane project.

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Cantagallo

The Company acquired one concession totaling 2 sq. km. by staking in 2019. Cantagallo is located in the Lima Department and is an early-stage copper prospect.

Rio Bravo

Rio Bravo was acquired by staking and sealed bid auction in late 2021, and comprises one concession of 10 sq km, situated approximately 140 km south-east of Lima. Rio Bravo is prospective for porphyry copper and molybdenum. To date, Condor has completed a limited sampling and mapping program.

Property Summary

Condor presently has a high-quality portfolio of thirteen precious and base metals projects in Peru. The Company has entered into optional farm-out or sale agreements on the Soledad, Lucero, and Ocros projects.

On the remaining properties, the Company intends to initially self-fund four of the projects in the portfolio and on the remaining projects enter into farm-out or sale agreements in order to advance them. The Company continues to evaluate the acquisition of new properties as opportunities arise.

Financing Activity during the Year Ended February 28, 2022

During the year ended February 28, 2022, 1,760,000 stock options with a weighted average exercise price of $0.09 were exercised for gross proceeds of $159,500 and 100,000 share purchase warrants were exercised for gross proceeds of $11,500.

Incentive Stock Options

At February 28, 2022, the Company had the following stock options outstanding enabling holders to acquire the following common shares of the Company:

Number of Options	Exercise Price	ExpiryDate
3,660,000	$0.12	September 21, 2022
500,000	$0.07	February 13, 2024
100,000	$0.06	February 13, 2024
2,475,000	$0.10	June 19, 2025
300,000	$0.15	November 30,2026
7,035,000

Share Purchase Warrants

At February 28, 2022, the Company had the following share purchase warrants outstanding enabling holders to acquire the following common shares of the Company:

Number of Warrants	Exercise Price	ExpiryDate
4,000,000	$0.10	November 8, 2022
13,100,000	0.15*	June 18,2023
17,100,000

• The exercise price of these warrants was $0.115 per share until June 18, 2021, and $0.15 thereafter until expiry.

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Selected Annual Information

The summary of historical financial information for the last three fiscal years is presented below:

STATEMENT OF
OPERATIONS AND DEFICIT		Year Ended			Year Ended		Year Ended
DATA		February 28, 2022			February 28, 2021		February 29, 2020
Revenues	$	NIL		$	NIL	$	NIL
Total expenses	$	366,878		$	672,773	$	343,297
Net income (loss)	$	119,528		$	2,334,130	$	(121,161)
Basic and diluted net income (loss)
loss per share	$	0.00		$	0.02	$	(0.00)
Weighted average number of shares
outstanding		125,870,993			117,568,726		104,862,763
		Year Ended			Year Ended		Year Ended
BALANCE SHEET DATA		February 28, 2022			February 28, 2021		February 29, 2020
Cash	$	269,815	$		555,341	$	61,088
Working capital surplus	$	714,987	$		697,394	$	139,195
Total assets	$	6,334,380	$		6,024,349	$	2,227,952
Shareholders' equity	$	6,192,511	$		5,876,627	$	2,125,823

Summary of Quarterly Results (unaudited)

The summary of historical financial information for the last eight quarters is presented below:

Three months ended:		28-Feb-22		30-Nov-21		31-Aug-21	31-May-21	31-May-21		28-Feb-21	30-Nov-20		31-Aug-20	31-May-20	31-May-20
Basis of preparation		IFRS		IFRS		IFRS		IFRS		IFRS	IFRS		IFRS		IFRS
Revenue		$ Nil		$ Nil		$ Nil		$ Nil		$ Nil	$ Nil		$ Nil		$ Nil
General and administrative expenses		(68,501)		(126,131)		(85,149)		(87,097)		(170,390)	(115,444)		(329,133)		(57,806)
Other income (expenses)		200,367		128,134		297,963		(140,058)		2,855,818	(54,870)		216,600		(10,645)
Income (loss) for the period		131,866		2,003		212,814		(227,155)		2,685,428	(170,314)		(112,533)		(68,451)
Basic and diluted income (loss) per
share	$	-	$	-	$	-	$	-	$	0.02	- $	$	-	$	-

Financial Results of Operations – For the year ended February 28, 2022

The financial results discussed herein have been prepared in accordance with IFRS standards. All references to 2021 in the following commentary of the Financial Results of Operations refer to the comparative results for the year ended February 28, 2021.

During the year ended February 28, 2022, the Company earned net income of $119,528 comprised of general and administrative (“G&A”) expenses of $366,878 and a gain from other items of $486,406. (2021 – income of $2,334,130 comprised of $672,773 in G&A expenses and a gain from other items of $3,006,903). The decrease in G&A was mainly due to a decrease in stock-based compensation, a non-cash expense, to $25,356 (2021 - $292,423). Professional fees also decreased to $44,678 (2021 - $78,369) due to lower legal fees.

Other items in the year ended February 28, 2022 consisted of other income of $345,057 which was comprised of a portion of the option payment proceeds received from Chakana per the Soledad property option agreement. A gain on revaluation of $278,819 due to accretion and foreign exchange was also recognized on the long-term receivable related to the sale of MLDS. These gains were offset by an unrealized loss on marketable securities of $138,000.

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Other items in the year ended February 28, 2021 consisted of a gain of $2,756,775 on the sale of its Peruvian subsidiary, MLDS, a sole purpose company, and the owner of the Lucero project. Revaluation of $10,767 due to accretion and foreign exchange was also recognized on the long-term receivable related to the sale of MLDS. Other items also included other income of $71,661 comprised of a portion of the option payment proceeds received from Chakana per the Soledad property option agreement, a gain of $11,535 on the sale of marketable securities, $152,975 unrealized gain on marketable securities and interest income of $3,190 earned on a variable-rate guaranteed investment certificate.

During the year ended February 28, 2022, cash used by operating activities was $341,417 (2021 – $377,682). The decrease was mainly due to G&A expenses, excluding the non-cash stock-based compensation, decreasing to $341,522 (2021 - $380,350).

Cash used by investing activities was $115,109, (2021 – $292,316) which was made up of exploration and evaluation expenditures of $741,729 (2021 - $797,399) which were offset by $626,620 (2021 - $333,577) in property option payments received. In 2021, Company also purchased $39,296 of equipment, received $115,642 from the sale of one of its Peruvian subsidiaries, and received $95,160 received upon the sales of marketable securities. Please refer to the mineral property section (note 7) in the audited consolidated financial statements for the year ended February 28, 2022 for a more detailed description of the costs incurred.

During the year ended February 28, 2022, cash provided by financing activities was $171,000 received upon the exercise of 1,760,000 stock options and 100,000 share purchase warrants.

During the year ended February 28, 2021, cash provided by financing activities was $1,164,251. The Company completed a private placement financing for net proceeds of $960,001. 2,595,000 stock options were also exercised for gross proceeds of $164,250 and the Company obtained an unsecured $40,000 loan as part of the Canadian government’s economic response plan to the COVID-19 pandemic.

Financial Results of Operations – For the three months ended February 28, 2022

The financial the results discussed herein have been prepared in accordance with IFRS standards. All references to 2021 in the following commentary of the Financial Results of Operations refer to the comparative results for the three months ended February 28, 2021.

During the three months ended February 28, 2022, the Company earned net income of $131,866, comprised of G&A expenses of $68,501 and income from other items of $200,367. (2021 – income of $2,685,428 comprised of $170,390 in G&A and income from other items of $2,855,818). The decrease in G&A was mainly due to a decrease in professional fees to $22,311 (2021 - $54,311) due to lower legal fees and $76,182 less in stock-based compensation expense compared to the same period of 2021.

Other items in the three months ended February 28, 2022 consisted of a unrealized loss of $34,000 on marketable securities, other income of $176,002 in property option payments received and revaluation of $58,366 due to accretion and foreign exchange recognized on the long-term receivable related to the sale of MLDS.

Other items in the three months ended February 28, 2021 consisted mainly of a gain of $2,756,775 on the sale of its Peruvian subsidiary, MLDS, a sole purpose company, and the owner of the Lucero project. Revaluation of $10,767 due to accretion and foreign exchange was also recognized on the long-term receivable related to the sale of MLDS. An unrealized gain of $16,000 (2020 - $33,400) was recognized on marketable securities as well as other income of $71,661 from property option payments received.

Liquidity

At February 28, 2022 the Company had a deficit of $19,769,716. The Company expects to incur losses for at least the next 24 months. The Company’s continuing operations, as intended, are dependent upon its ability to obtain financing and to generate profitable operations in the future. There can be no assurance that the Company will ever make a profit. To achieve profitability, the Company must advance one or more of its properties through further exploration

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in order to bring the properties to a stage where the Company can attract the participation of a major resource company, which has the expertise and financial capability to take such properties to commercial production.

At February 28, 2022, the Company had cash and cash equivalents of $269,815 and working capital of $714,987.

Subsequent to February 28, 2022, the Company received US $1,000,000 from Chakana as per the terms of the Soledad amended property option agreement. The Company also received US $75,000 from Calipuy per the terms of the MLDS sale agreement.

Capital Resources

The Company has no major commitments for capital expenditures, except as otherwise disclosed in this MD&A.

Related Party Transactions

During the year ended February 28, 2022, the Company completed the following transactions with related parties:

a) Paid or accrued management fees of $84,000 (2021 - $84,000) to the President, Chief Executive Officer and director of the Company;

b) Paid or accrued legal fees of $27,178 (2021 - $62,469) recorded as professional fees and $Nil (2021 - $24,299) recorded as share issue costs to a law firm in which a director is associate counsel;

c) Paid or accrued management fees of $30,000 (2021 - $26,400) to a private company controlled by the Chief Financial Officer of the Company;

d) Paid or accrued management supervision and oversight fees capitalized to mineral properties of $70,162 (2021 - $74,726) to the Vice-President, Exploration of the Company;

e) Paid or accrued management fees and project generation fees of $22,613 (2021 - $24,029) and $22,613 (2021 - $24,029) respectively to the Vice-President, Exploration of the Company;

f) Paid or accrued consulting fees of $12,925 (2021 - $Nil) to a director of the Company for community relations work on the Pucamayo project; and

g) Paid or accrued directors’ fees totaling $22,400 (2021 - $24,000) to the independent directors of the Company;

These transactions were in the normal course of operations and were measured at the exchange value which represented the amount of consideration established and agreed to by the related parties.

Off-Balance Sheet Transactions

There are currently no off-balance sheet arrangements which could have a material effect on current or future results of operations, or the financial condition of the Company.

Proposed Transactions

There are currently no proposed transactions, except as otherwise disclosed in this MD&A. Confidentiality agreements may be entered into from time to time, with independent entities to allow for discussions of the potential acquisition and or development of certain properties.

New accounting policies

The Company has reviewed any new and revised accounting pronouncements that are issued and effective as of March 1, 2021 and has determined that these new and revised standards did not have a material impact on the Company’s consolidated financial statements.

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Summary of Share Data – as at June 24, 2022

Issued shares Stock options Share purchase warrants Fully Diluted	Weighted Average Number Price Life in Years
	126,882,308 7,035,000 $0.11 1.50 17,100,000 $0.14 0.83 151,017,308

Risks and Uncertainties

The Company’s principal activity is mineral exploration. As such, the Company is exposed to a number of risks, including the financial risks associated with the fact that it has no operating cash flow and must access the capital markets to finance its activities. There can be no assurances the Company will continue to be able to access the capital markets for the funding necessary to acquire and maintain exploration properties and to carry out its desired exploration programs.

Other risks include, but are not limited to, environmental, fluctuating metal prices, political and economic. Additionally, few exploration projects successfully achieve development due to factors that cannot be predicted or foreseen. While risk management cannot eliminate the impact of all potential risks, the Company strives to manage such risks to the extent possible and practicable.

The Company has a small management team and the loss of a key individual or the inability to attract suitably qualified personnel in the future could materially and adversely affect the Company’s business.

Although the Company has taken steps to verify the title to its mineral property, in accordance with industry standards for the current stage of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements or transfers and title may be affected by undetected defects.

The Company has no significant source of operating cash flow and no revenues from operations. The Company has limited financial resources. Substantial expenditures are required to be made by the Company to establish ore reserves. The Company’s mineral properties are in the exploration stage only, and have no ongoing mining operations. Mineral exploration involves a high degree of risk and few properties which are explored are ultimately developed into producing mines. Exploration of the Company’s mineral property may not result in any discoveries of commercial bodies of mineralization. If the Company’s efforts do not result in any discovery of commercial mineralization, the Company will be forced to look for other exploration projects or cease operations.

The Company is subject to the laws and regulations relating to environmental matters in all jurisdictions in which it operates, including provisions relating to property reclamation, discharge of hazardous material and other matters. The Company may also be held liable should environmental problems be discovered that were caused by former owners and operators of its properties and properties in which it has previously had an interest. The Company conducts its mineral exploration activities in compliance with applicable environmental protection legislation. The Company is not aware of any existing environmental problems related to any of its current or former properties that may result in material liability to the Company. The risks and uncertainties described in this section are not inclusive of all the risks and uncertainties the Company may be subject to.

The Company will be subject to normal market risks including fluctuations in foreign exchange rates. While the Company expects to manage its operations in order to minimize exposure to these risks, the Company has not entered into any derivatives or contracts to hedge or otherwise mitigate this exposure.

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Since March 2020, the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19”, has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and physical distancing, have caused material disruption to business globally resulting in an economic slowdown. Global equity markets have experienced significant volatility and weakness. The duration and impact of the COVID-19 outbreak is unknown at this time as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company in the future periods.

Officers Certification of Evaluation of Disclosure Controls

In connection with Exemption Orders issued in November 2007 and revised in December 2008 by each of the securities commissions across Canada, the Chief Executive Officer and Chief Financial Officer of the Company will file a Venture Issuer Basic Certificate with respect to the financial information contained in the unaudited interim financial statements and the audited annual financial statements and respective accompanying Management Discussion and Analysis.

In contrast to the certificate under National Instrument (“NI”) 52-109 (Certification of Disclosure in an Issuer’s Annual and Interim Filings), the Venture Issuer Basic Certification does not include representations relating to the establishment and maintenance of disclosure controls and procedures and internal control over financial reporting, as defined in NI 52-109.

The Company has been in the exploration stage and has not had common separation of duties and functions usually found in a larger or revenue generating company with comprehensive internal controls. While the Company’s smaller staff size has not allowed for full separation of duties, its senior management believes that its close involvement with day-to-day business activities and related financial reporting provides a reasonable measure of internal control in lieu of the separation of duties.

Forward Looking Statements

This document contains statements about expected or anticipated future events and financial results that are forwardlooking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company’s capability to execute and implement its future plans. Actual results may differ materially from those projected by management. Although the Company has attempted to identify important factors that could cause the actual events or results to differ materially from those described in forward-looking statements, readers are cautioned that the foregoing list of risks and factors is not exhaustive and there may be other factors that cause events or results not to be anticipated, estimated or intended. Forward-looking statements are based on management’s estimates, beliefs and opinions on the date the statements are made. Although the Company believes that the expectations represented by such forward-looking statements and the assumptions of the Company upon which they are based are reasonable, there can be no assurance that such expectations will prove to be correct. The Company assumes no obligation except as outlined by regulatory requirements to update forward-looking statements if circumstances or management’s estimates, beliefs, or opinions should change. Additional information on these and other potential factors that could affect the Company’s financial results are detailed in documents filed from time to time with the British Columbia and Ontario Securities Commissions. Accordingly, readers should not place undue reliance on forward-looking statements. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.

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