Esrey Resources Ltd — Audit Report / Information 2018

Sep 2, 2020

ESREY RESOURCES LTD. NOTICE PURSUANT TO NATIONAL INSTRUMENT 51-102 NOTICE OF CHANGE OF AUDITORS

Esrey Resources Limited (the "Company") hereby gives notice of appointment of Dale Matheson Carr-Hilton Labonte LP, Chartered Professional Accountants, Vancouver, British Columbia as the Company's auditor in the place and stead of its former auditor. KPMG LLP, Chartered Professional Accountants, Vancouver, British Columbia.

The change of auditor was effective on November 28, 2019.

In accordance with National Instrument 51-102, the Company reports that:

• a) As confirmed by a resolution passed by the Company's Audit Committee, KPMG LLP, Chartered Professional Accountants, was asked to resign as auditor in order to permit the appointment of Dale Matheson Carr-Hilton Labonte LP, Chartered Professional Accountants.
• b) There were no modifications of opinion by KPMG LLP in the Auditors' Reports for the fiscal years ended September 30, 2018 and September 30, 2017 being the last two fiscal years preceding the date of this Notice;
• c) there have been no Reportable Events which are described in National Instrument 51-102 as "an occurrence in the relationship between the reporting issuer and the former or successor auditor which may have been a contributing factor to the Resignation or Termination"; and
• d) the change of auditors and the distribution of this notice together with letters from the former and successor auditors confirming the information contained herein has been considered and approved by the Company's Audit Committee and the Board of Directors.

DATED this 24TH day of August, 2020.

BY ORDER OF THE BOARD OF DIRECTORS
Esrey Resources Limited
Per:

KPMG LLP

Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver, BC V7Y 1K3 Tel (604) 691-3000 Fax (604) 691-3031 www.kpmg.ca

To:

British Columbia Securities Commission Alberta Securities Commission Financial and Consumer Affairs Authority of Saskatchewan Manitoba Securities Commission Ontario Securities Commission Financial and Consumer Services Commission (New Brunswick)

August 24, 2020

Dear Sir/Madam

Re: Notice of Change of Auditors of Esrey Resources Ltd. (the "Company") dated August 24, 2020 (the "Notice")

We have read the Notice and are in agreement with the statements contained in such Notice except that we are not in a position to agree or disagree with the Company's statements that the change of auditor was effective on November 28, 2019, that there have been no reportable events with the successor auditor, or that the change of auditors and the distribution of the Notice together with letters from the former and successor auditors confirming the information contained therein has been considered and approved by the Company's Audit Committee and the Board of Directors.

Yours very truly,

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Chartered Professional Accountants

DALE MATHESON CARR-HILTON LABONTE LLP CHARTERED PROFESSIONAL ACCOUNTANTS

August 24, 2020

British Columbia Securities Commission P.O. Box 10142, Pacific Centre 9TH Floor - 701 West Georgia Street Vancouver, B.C. V7Y 1L2

Alberta Securities Commission Suite 600, $250 - 5$ th Street S.W. Calgary, Alberta T2P oR4

Saskatchewan Financial Services Commission Suite 601-1919 Saskatchewan Drive Regina, SK S4P 4H2

New Brunswick Securities Commission Suite 300 - 85 Charlotte Street Saint. John, NB E2L 2J2

TSX Venture Exchange P.O. Box 11633 Suite 2700 - 650 West Georgia Street Vancouver, B.C. V6B 4N9

Manitoba Securities Commission Suite 500 -400 St Mary Avenue Winnipeg, MB R3C 4K5

Ontario Securities Commission 20 Queen Street West, 22nd Floor Toronto, ON M5H 3S8

Dear Sirs:

Re: Esrey Resources Ltd. (the "Company") Notice Pursuant to National Instrument 51-102 - Change of Auditor

As required by the National Instrument 51-102 and in connection with our proposed engagement as auditor of the Company, we have reviewed the information contained in the Company's Notice of Change of Auditor, dated August 24, 2020 and agree with the information contained therein, based upon our knowledge of the information relating to the said notice and of the Company at this time.

Yours very truly,

Durce

DALE MATHESON CARR-HILTON LABONTE LLP CHARTERED PROFESSIONAL ACCOUNTANTS