Gatling Exploration Inc. — Management Reports 2021

Jul 28, 2021

FORWARD-LOOKING INFORMATION AND MATERIAL ASSUMPTIONS

This report on results for the year ended March 31, 2021 contains forward-looking information, including forward-looking information about Gatling Exploration Inc.'s (the "Company" or "Gatling") operations, estimates, and exploration and acquisition spending.

Forward-looking information is generally signified by words such as "forecast", "projected", "expect", "anticipate", "believe", "will", "should" and similar expressions. This forward-looking information is based on assumptions that the Company believes were reasonable at the time such information was prepared, but assurance cannot be given that these assumptions will prove to be correct, and the forward-looking information in this report should not be unduly relied upon. The forward-looking information and the Company's assumptions are subject to uncertainties and risks and are based on a number of assumptions made by the Company, any of which may prove to be incorrect.

GENERAL

This Management Discussion and Analysis ("MD&A") of the financial condition, results of operations and cash flows of the Company for the year ended March 31, 2021 should be read in conjunction with the audited financial statements as at March 31, 2021 and for the year then ended. This MD&A is effective July 28, 2021. Additional information relating to the Company is available on SEDAR at www.sedar.com.

The Company has prepared its financial statements for the year ended March 31, 2021 in Canadian dollars and in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board.

DESCRIPTION OF BUSINESS

The Company was incorporated under the laws of the province of British Columbia on August 2, 2018. The Company is a junior mineral exploration company engaged in the business of acquiring, exploring and evaluating natural resource properties.

Its principal business activity is the acquisition, exploration and evaluation of mineral properties located in the province of Ontario, Canada. The Company's common shares are traded on the TSX Venture Exchange under the symbol "GTR". The Company's shares also trade on the OTC Exchange in the United States under the symbol "GATGF". The Company's head office and principal business address is 1680 – 200 Burrard Street, Vancouver, British Columbia, Canada, V6C 3L6. The Company's registered and records office is 400 – 725 Granville Street, Vancouver, British Columbia, Canada, V7Y 1G5.

On December 14, 2020, the Company consolidated it common shares on the basis of one new share for two old shares. All share and per share amounts have been revised to reflect the consolidation.

BOARD OF DIRECTORS

Jason Billan (President, Chief Executive Officer & Director)

Mr. Billan is a seasoned strategy, corporate development and valuation professional with an accelerating career in the mining industry. He brings a strong network of corporate and institutional representatives in the mining industry to support Gatling's objectives. Following the completion of an MBA at the Richard Ivey School of Business at the University of Western Ontario in 2009, he spent approximately three years in equity research covering the precious metal sector, at Salman Partners Inc. and RBC Capital Markets, with a coverage universe ranging from small to large caps. In 2012, he joined Nevsun Resources Ltd. as the sole Corporate Development professional reporting into the senior executive team through its acquisition in late 2018. Mr. Billan was also Senior Financial Analyst at Wheaton Precious Metals International until late 2020.

Nav Dhaliwal (Executive Chairman)

Mr. Dhaliwal is an experienced executive, leader and team builder. He was the founder of Bonterra Resources Inc. and has a track record of success in the mining sector. Mr. Dhaliwal is particularly adept at nurturing early-stage companies through their critical phases of evolution. He also brings valuable business relationships with international analysts, brokers and investment bankers throughout Canada, the United States, Europe and Asia.

Peter Damouni

Mr. Damouni has over 17 years of experience in senior executive positions in investment banking and capital markets, with expertise in mining and oil and gas. Throughout his career, Mr. Damouni has worked on and led equity and debt financings valued at over $5 billion for companies at different stages from exploration, to development, permitting and construction, to production. He has comprehensive experience in equity financing, restructuring, and mergers and acquisitions. Mr. Damouni is a graduate of McGill University, Canada. He is a Canadian and British citizen, residing in the United Kingdom.

Richard Boulay, B.Sc.

Mr. Boulay has over 40 years of experience in the exploration and mining industries in Canada and internationally, including 15 years of mining and infrastructure financing experience gained with Bank of Montreal, Royal Bank of Canada and Bank of Tokyo. He has extensive experience in the management and financing of public companies in Canada and the United States. He is also a director of Pacton Gold Inc.

Carrie Cesarone

Ms. Cesarone has worked in the public company sector for 30 years. She worked as a paralegal for well-known Vancouver securities lawyers for 11 years and following that, has worked as an independent contractor for both public and private companies for the past 13 years. She has served as a director, Corporate Secretary and CFO for a number of listed companies and continues to serve as Corporate Secretary for Pacton Gold Inc. and Huntsman Exploration Inc. (formerly BlueBird Battery Metals Inc.). Ms. Cesarone holds a Bachelor of Arts degree from Simon Fraser University.

BUSINESS OF THE COMPANY

Gatling is a Canadian gold exploration company focused on resource development at the Larder Lake Project, a high-grade gold deposit located in the prolific Abitibi greenstone belt.

In early March 2020, there was a global outbreak of coronavirus (COVID-19) that has resulted in changes in global supply and demand of certain mineral and energy products. These changes, including a potential economic downturn and any potential resulting direct and indirect negative impact to the Company cannot be determined, but they could have a prospective material impact to the Company's project exploration activities, cash flows and liquidity.

The Company's corporate offices were closed in March 2020 as a precaution. Safety protocols have been implemented, and the corporate offices have only re-opened in a limited capacity as of the date of this MD&A. "The Company also reduced certain exploration activities from March 2020 until August 2020 as a result of COVID-19. The Company continues to monitor the situation and will follow any further guidance from provincial and federal governments. To date, the Company has not applied for any assistance related to COVID-19 from the provincial or federal governments.

On January 7, 2021, the Company provided a corporate update and announced an additional 25,000 metres ("m") drill program on its Larder Gold Project. The primary focus will be near surface and along strike targets at all three high-grade zones as the Company continues to prove up mineralization along the continuous 4.5-kilometre ("km") strike. In addition, a number of holes will follow up the 2020 drilling success at the Kir Vit prospect, 6 km north of the existing deposits.

Larder Gold Project Exploration Plan and Strategy for 2021

• Fernland Deposit Expansion 13,500 m targeting near surface gold mineralization along strike and at depth. Initial drilling planned to prove up near surface gold zones by testing the lateral extent of gold mineralization heading westward towards the historic Omega mine in addition to new mineralized lenses at depth (Figures 1 and 2 on page 4).
• Cheminis Deposit Expansion 3,000 m targeting near surface gold mineralization along the north and south zones on the main Cadillac Larder Lake Break connecting both Fernland and Bear deposits (Figure 1 on page 4). The Cheminis deposit is well defined within the parameters of the existing infrastructure and these new targets will aim to further prove up a near surface mineralized body.
• Bear Deposit Expansion 4,500 m targeting along strike and up plunge. Targets are defined to tie together continuous mineralization between the heart of the Bear deposit (commencing at approximately 500 m below surface) and the high-grade lenses closer to surface (Figure 1 on page 4). If drilling validates the continuity of the mineralization at the Bear deposit, this will establish nearly 1 km of vertical gold mineralization, becoming the largest mineralized body at the Larder Gold project.
• Kir Vit Prospect Hotspots 4,000 m targeting new mineralized horizons and following up on 2019 first pass drilling, which intersected gold mineralization in 13 out of 16 holes. In addition, the 2020 stripping campaign discovered a third gold trend at Kir Vit, which will be tested in this drill campaign. Channel samples from the newly identified northeast-southwest trending shear zones resulted in grades up to 16.2 grams per tonne ("g/t") Au over 1 m at surface (Figures 3 and 4 on page 5).
• Project De-Risking and Resource Advancement – Gatling is currently preparing to complete an updated resource estimate on the Larder Gold project and conduct preliminary pit/underground stope optimization models for all three high-grade gold deposits. Concurrently, metallurgical sampling will be completed.
• Regional Exploration – Gatling will conduct a thorough field program to investigate newly identified targets from our 2020 campaign. Initial targets will include light detection and ranging ("LiDAR") trends along the main break and structural traps, east-west conglomerate trends, intrusion-related trends and upcoming AI targets from Windfall Geotek.

On January 21, 2021, the Company announced the formation of a technical advisory board. The Company appointed Mr. Darin Wager – a highly regarded senior executive in the mining sector, with an impressive track record of corporate development and mergers and acquisitions. He is joined by Mr. Gil Lawson – an experienced mining engineer whose background includes running several prominent Canadian gold operations.

Figure 1. Larder Gold project long section showing the new gold mineralized zones identified from recent drilling and target areas for the H1 2021 drill program.

Figure 2. Geological map showing Gatling drill holes along a 4.5 km mineralized trend at the Larder Gold project.

Figure 3. Plan view of the Kir Vit prospect showing magnetic data overlayed with structures extracted from 1 m resolution LiDAR and new northeast-southwest trending shear zones.

Figure 4. Plan view of stripped outcrop at the Kir Vit prospect with newly discovered high-grade gold hosted in northeastsouthwest trending shear zones.

GATLING EXPLORATION PROJECT – LARDER LAKE, ONTARIO

The Larder Lake Project is located in northern Ontario, 35 km east of Kirkland Lake and 6 km west of Virginiatown. The property hosts the Bear, Cheminis and Fernland gold deposits that extend along 10 km of the Cadillac-Larder break between Kirkland Lake and Virginiatown. It is positioned 7 km west of the Kerr Addison Mine, which produced 11 million ounces of gold. All parts of the Larder Lake Property are accessible by truck or all-terrain vehicle on non-serviced roads and trails.

On September 24, 2018, as part of a plan of arrangement, the Company received a 100% interest in the Larder Lake Project. A portion of the project includes a 1.5% net smelter return royalty ("NSR"), of which 1% may be repurchased, at any time, by the Company for $750,000. The plan of arrangement was deemed to be a purchase of an asset. As such, IFRS 2 Sharebased Payments was used to determine fair value of the assets acquired. As the fair value of the assets given up to acquire the assets was more readily available, the Company valued the acquisition using the fair value of shares issued of $0.56 per share. On September 24, 2018, the fair value of the assets acquired and liabilities assumed were as follows:

	Amount
Consideration provided (fair value of 16,713,256common shares at $0.56per share)	$9,359,423
Allocated to net assets acquired:
Cash transferred to Company	(7,000,000)
Fair value of Larder Lake Project acquired	(2,359,423)
	$-

Fair value of $2,359,423 was allocated to the project and expensed for the period as exploration and evaluation costs.

On April 1, 2019, the Company entered into an assignment and assumption agreement to acquire the Kir Vit claim package in Ontario. Under the terms of the agreement, the Company took assignment of a January 2017 underlying agreement between the vendor and certain parties that originally staked the claims comprising Kir Vit (the "stakers"). In consideration of the assignment, the Company issued 875,000 common shares to the vendor.

On July 9, 2019, the Company exercised the option in the underlying agreement and paid $250,000 to the stakers. Pursuant to the terms of the assignment and assumption agreement, the vendor was granted a 0.5% NSR. The stakers retain a 2% NSR, of which the Company may repurchase one-half (1%) for $1,000,000. If the Company announces a production decision, a $4,000,000 payment is due to the vendor and a $250,000 payment is due to the stakers.

Summaries of exploration and evaluation expenditures for the years ended March 31, 2021 and 2020 are as follows:

Year Ended March 31, 2021	Larder LakeProject
Acquisition Costs
Claim costs	$37,319
Total Acquisition Costs	37,319
Property Exploration Costs
Assays and geochemistry	328,841
Camp and other costs	363,681
Depreciation	3,552
Drilling	2,251,474
Geological	695,076
Geophysics	3,394
Travel and transport	39,362
Total Exploration Costs	3,685,380
Total Exploration and Evaluation Expenditures	$3,722,699

Year Ended March 31, 2020	Larder LakeProject
Acquisition Costs
Fair value of Larder Lake Project acquired	$845,000
Claim costs	101,022
Total Acquisition Costs	946,022
Property Exploration Costs
Assays and geochemistry	812,462
Camp and other costs	430,497
Depreciation	6,216
Drilling	4,302,870
Geochemical	3,205
Geological	703,850
Geophysics	64,208
Travel and transport	79,754
Total Exploration Costs	6,403,062
Total Exploration and Evaluation Expenditures	$7,349,084

During 2019, the Company commenced a 35,000 m diamond drill program at the Larder Lake Project. On April 25, 2019, the Company announced drill results on its first three holes as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-001A	815.0	820.0	5.0	1.0	North Carbonate Gold Zone("NCGZ")
Including	816.0	817.0	1.0	1.9	NCGZ
and Including	818.0	819.0	1.0	1.4	NCGZ
	890.0	891.0	1.0	3.4	Ultramafics
	933.5	934.5	1.0	2.3	South Volcanics
GTR-19-002	825.0	830.0	5.0	1.3	NCGZ/Ultramafics
Including	826.4	827.0	0.6	5.9	NCGZ/Ultramafics
	846.0	847.0	1.0	2.2	Ultramafics
	851.0	852.0	1.0	2.9	Ultramafics
	925.0	927.0	2.0	0.6	South Volcanics
GTR-19-003	797.0	803.1	6.1	20.7	NCGZ/Graphitic Zone
	808.0	815.0	7.8	6.6	NCGZ/Graphitic Zone
	821.0	822.0	1.0	3.2	Ultramafics
	967.2	968.8	1.6	1.9	South Volcanics

On May 14, 2019, the Company announced drill results from its first wedge drill hole as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-004W	782.0	790.0	8.0	10.8	North
	919.0	920.0	1.0	1.2	South Flow

On July 23, 2019, the Company announced drill results on the Bear deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-005W2	788.0	793.0	5.0	12.7	North
	810.1	815.0	4.9	2.5	Ultramafics
	917.0	918.0	1.0	1.0	South Flow
GTR-19-006A	750.5	753.5	3.0	9.7	North
	770.6	772.0	1.4	1.3	Ultramafics
	871.0	975.0	4.0	8.5	Altered South Flow
	879.0	882.0	3.0	1.2	South Flow

On August 21, 2019, the Company announced drill results on the Cheminis deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-008	24.5	29.0	4.5	1.0	South Flow Zone C
Including	24.5	27.0	2.5	1.5	South Flow Zone C
and Including	26.0	27.0	1.0	3.1	South Flow Zone C
GTR-19-0010	43.0	48.0	5.0	12.3	South Flow Zone A
Including	45.0	48.0	3.0	18.1	South Flow Zone A
GTR-19-0011	24.0	25.0	1.0	1.0	South Flow Zone A
	51.0	53.0	2.0	1.3	South Flow Zone A
	142.0	143.0	1.0	1.6	South Flow Zone A

On September 6, 2019, the Company announced drill results from the Bear deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-009	811.0	816.0	5.0	10.6	North
	916.0	917.0	1.0	1.2	South Flow

On October 15, 2019, the Company announced drill results from the Cheminis and Bear deposits as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-017	910.0	946.8	36.8	1.5	North
Including	932.0	946.8	14.8	2.0	North
	989.0	999.0	10.0	1.0	South Flow
Including	995.0	999.0	4.0	1.8	South Flow

On October 30, 2019, the Company announced the completion of a LiDAR survey that highlighted previously unrecognized structural trends and greatly improved outcrop detection. The new LiDAR data will assist with further drill targeting in priority zones.

On November 7, 2019, the Company announced drill results between the Cheminis and Bear deposits as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-018	954.0	955.5	1.5	1.9	North-Ultramafic Contact
	1192.0	1193.0	1.0	4.0	South Sediments
GTR-19-019	750.0	752.0	2.0	4.6	South Sediments
	839.2	861.0	21.8	1.2	South Flow

On January 16, 2020, the Company announced drill results from the Bear deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-022	193.0	195.0	2.0	8.3	N/A
	327.0	330.0	3.0	5.1	N/A
GTR-19-023	264.0	269.0	5.0	11.2	N/A
GTR-19-025	177.0	178.0	1.0	2.5	N/A
	414.0	417.0	3.0	1.7	N/A
GTR-19-028	283.5	286.5	3.0	2.1	N/A
GTR-19-032	350.6	352.0	1.4	1.4	N/A
	358.0	359.0	1.0	1.2	N/A

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-024	81.0	85.0	4.0	11.9	South
GTR-19-026	75.0	79.0	4.0	1.5	South
GTR-19-027	72.0	81.0	9.0	3.5	South
Including	72.0	77.0	5.0	5.4	South
GTR-19-031	15.0	30.0	15.0	1.6	South
GTR-19-033	67.0	78.0	11.0	1.9	South
Including	71.0	75.0	4.0	3.1	South
GTR-19-035	29.6	46.0	16.4	1.1	South
GTR-19-037	120.0	122.0	2.0	2.5	South

On January 30, 2020, the Company announced drill results from the Fernland deposit as follows:

On February 12, 2020, the Company announced drill results from the Cheminis deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-19-034	264.0	266.0	2.0	7.7	North
GTR-19-039A	97.3	137.0	39.7	2.5	South Volcanic
Including	133.0	137.0	4.0	8.2	South Volcanic
GTR-19-040	7.0	9.0	2.0	7.3	South Volcanic
	29.7	51.0	21.3	1.7	South Volcanic
	76.0	78.0	2.0	6.8	South Volcanic
	117.1	120.0	2.9	4.9	South Volcanic
	125.0	131.0	6.0	6.1	Ultramafic
Including	125.0	128.0	3.0	9.6	Ultramafic
GTR-19-041	22.0	23.0	1.0	8.1	Ultramafic
	124.0	151.0	27.0	1.4	South Volcanic
	183.0	201.0	18.0	1.6	South Volcanic
Including	197.0	201.0	4.0	3.8	South Volcanic

Hole GTR-19-034 has intersected a new area of mineralization near the existing mine infrastructure – newly named the "North Zone" – which indicates a secondary gold-bearing quartz vein system at the Cheminis zone.

On March 2, 2020, the Company announced drill results from the Kir Vit prospect		asfollows:
---------------------------------------------------------------------------------	--	----------------

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Lithology
KV-19-01	99.0	100.5	1.5	1.2	Altered Syenite
	141.0	144.0	3.0	5.9	Alteration Zone –Contact ofVolcanics-Syenite
Including	142.5	144.0	1.5	8.8	Alteration Zone –Contact ofVolcanics-Syenite
	162.0	163.5	1.5	1.8	Altered Volcanics
KV-19-02	314.0	315.0	1.0	1.2	Altered Syenite
KV-19-03	180.0	181.0	1.0	1.1	Mafic Volcanics
KV-19-04	227.0	229.0	2.0	1.2	Altered Syenite
	404.0	405.0	1.0	1.1	Mafic Volcanics
KV-19-05	242.0	245.0	3.0	1.3	Altered Volcanics
KV-19-06	91.0	92.0	1.0	1.1	Mafic Volcanics
KV-19-08	43.0	44.0	1.0	1.2	Conglomerate
	103.0	104.0	1.0	1.4	Conglomerate
KV-19-09	59.0	60.0	1.0	1.9	Conglomerate
KV-19-12	167.0	168.0	1.0	1.7	Altered Volcanics
KV-19-13	220.0	221.0	1.0	4.2	Altered Volcanics
KV-19-14	10.0	19.0	9.0	1.1	Altered Syenite
Including	26.0	29.0	3.0	1.1	Altered Volcanics
Including	32.0	34.7	2.7	1.3	Altered Syenite
	49.0	53.0	4.0	1.0	Altered Volcanics
Including	51.0	52.0	1.0	3.6	Altered Volcanics
	108.0	109.0	1.0	1.4	Mafic Volcanics
	149.0	150.0	1.0	1.0	Mafic Volcanics
	220.0	225.0	5.0	2.5	Brecciated Volcanics
Including	223.0	225.0	5.0	2.5	Brecciated Volcanics
KV-19-15	71.0	72.0	1.0	1.6	Altered Ayenite
KV-19-16	211.0	214.0	3.0	5.1	Conglomerate
Including	211.0	213.0	2.0	6.5	Conglomerate

On June 3, 2020, the Company announced drill results on the Bear deposit	asfollows:
--------------------------------------------------------------------------	----------------

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-20-049	447.0	449.8	2.8	2.0	South Volcanics
GTR-20-054	80.0	82.0	2.0	2.1	Ultramafics
GTR-20-057	193.5	195.0	1.5	8.4	Ultramafics
99.0102.0		3.0	85.1	North Volcanics
GTR-20-059	226.5	232.5	6.0	2.1	Ultramafics
	267.8	279.9	12.1	1.5	Quartz Flooded Zone

On September 21, 2020, the Company announced drill results between the Fernland and Cheminis deposits as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Zone
GTR-20-063	242.0	247.0	5.0	4.6	Ultramafics
GTR-20-066	196.0	198.0	2.0	2.5	Ultramafics
GTR-20-067	192.0	198.0	6.0	2.2	Mafic Volcanic
GTR-20-067	226.0	228.0	2.0	8.7	Argillic Mudstone

On November 4, 2020, the Company announced channel sampling results at the Kir Vit prospect as follows:

Channel ID	Sample Location ID	Lithology-Zone	Au (g/t)
Channel 9	9_1	Volcanic-syenite contact	16.2
Channel 1	1_8	Shear zone	8.2
Channel 1	1_4	Mafic volcanic	4.4
Channel 1	1_18	Volcanic-syenite contact	2.8
Channel 1	1_19	Volcanic-syenite contact	2.7
Channel 1	1_3	Mafic volcanic	2.7
Channel 1	1_9	Shear zone	2.6
Channel 2	2_10	Shear zone	1.4
Channel 4	4_17	Volcanic-syenite contact	1.2
Channel 1	1_7	Shear zone	1.1
Channel 2	2_22	Volcanic-syenite contact	0.9
Channel 1	1_12	Mafic volcanic	0.9
Channel 2	2_7	Mafic volcanic	0.8
Channel 4	4_16	Mafic volcanic	0.6
Channel 3	3_5	Mafic volcanic	0.6
Channel 4	4_9	Mafic volcanic	0.6

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Rock Type	Zone
GTR-20-071	243.0	245.0	2.0	7.9	Mafic volcanics	Fernland/Cheminis –zone 3
GTR-20-072	3.5	45.0	41.5	0.6	South volcanics	Fernland –zone 2
Including	3.5	18.4	14.9	1.7	South volcanics
GTR-20-073	185.2	235.9	50.7	0.4	Volcanics-ultramafics	Fernland –zone 2
Including	185.2	200.0	14.8	1.0	Mafic volcanics
GTR-20-073	145.5	148.5	3.0	4.0	Mafic volcanics	Fernland –zone 2
GTR-20-078	114.0	126.7	12.7	1.0	South volcanics	Fernland –zone 2
GTR-20-088	26.0	127.3	101.3	1.1	South volcanics	Fernland –zone 1

On January 26, 2021, the Company announced drill results between the Fernland and Cheminis deposits as follows:

On February 16, 2021, the Company announced drill results on the Fernland deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Rock Type	Zone
GTR-20-089	31.0	201.0	170.0	1.5	South Volcanics	Fernland –Zone 2
Including	132.0	135.0	3.0	8.6	South Volcanics	Fernland –Zone 2
Including	151.0	153.0	2.0	7.7	South Volcanics	Fernland –Zone 2
GTR-20-090	82.0	95.0	13.0	2.0	South Volcanics	Fernland –Zone 2
Including	88.0	90.0	2.0	6.8	South Volcanics	Fernland –Zone 2
GTR-20-091	137.0	139.0	2.0	10.3	South Volcanics	Fernland –Zone 2

On April 7, 2021, the Company announced drill results on the Fernland deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Rock Type	Zone
GTR-20-094	114.0	115.5	1.5	4.4	South Conglomerates	Fernland –Zone 3
GTR-20-096	62.0	85.0	23.0	0.4	Mafic Volcanics	Fernland –Zone 3
GTR-20-097	3.7	118.0	114.3	0.8	NorthVolcanics	Fernland –Zone 3

On April 20, 2021, the Company announced drill results on the Fernland deposit as follows:

Hole ID	From (m)	To (m)	Length (m)	Au (g/t)	Rock Type	Zone
				Mafics and
GTR-21-111	3.3	204.0	200.7	1.5	Ultramafics	Fernland –Zone 2
Including	3.3	27.0	23.7	6.1	SouthVolcanics	Fernland –Zone 2
Including	159.0	163.0	4.0	11.6	SouthVolcanics	Fernland –Zone 2

SELECTED ANNUAL INFORMATION

	March31, 2021	March31, 2020	March31, 2019
	$	$	$
Revenue	Nil	Nil	Nil
Net loss	(6,248,731)	(9,912,964)	(5,468,786)
Basic and diluted loss per common share	(0.20)	(0.42)	(0.34)
Total assets	2,516,749	929,089	8,652,505
Long-term debt	80,275	251,567	Nil
Dividends	Nil	Nil	Nil

SELECTED QUARTERLY INFORMATION

Results for the eight most recently completed quarters are summarized below.

For the Quarter Periods Ending	March31,2021$	December 31,2020$	September 30,2020$	June 30,2020$
Total revenue	Nil	Nil	Nil	Nil
Loss for the period	(1,714,240)	(1,937,472)	(1,896,843)	(700,176)
Basic and diluted loss per share	(0.04)	(0.06)	(0.06)	(0.03)
Total assets	2,516,749	4,206,952	1,409,396	651,785
Total non-current liabilities	80,275	125,517	169,429	211,298
Dividends	Nil	Nil	Nil	Nil

For the Quarter Periods Ending	March 31,2020$	December 31,2019$	September30,2019$	June 30,2019$
Total revenue	Nil	Nil	Nil	Nil
Loss for the period	(2,085,816)	(3,197,519)	(2,807,555)	(1,822,074)
Basic and diluted loss per share	(0.09)	(0.13)	(0.11)	(0.08)
Total assets	929,089	2,094,848	5,214,482	7,982,622
Total non-current liabilities	251,567	290,651	328,586	363,939
Dividends	Nil	Nil	Nil	Nil

OPERATIONS

During the three months ended March 31, 2021, the Company reported a net loss of $1,714,240 (2020 - $2,085,816). Expenses for the three months ended March 31, 2021 were as follows:

• Consulting fees of $114,240 (2020 $161,560) decreased due to a reduction in Q4 2021;
• Depreciation of $42,989 (2020 $38,357) related to depreciation of computer equipment, equipment and leasehold improvements, as well as the Company's right-of-use ("ROU") asset, was comparable to the comparative period;
• Exploration and evaluation expenditures decreased to $1,229,900 (2020 $1,499,433) primarily due to higher drilling expenditures during the comparative period in 2020;
• Lease interest accretion decreased to $7,818 (2020 $12,159) due to lower accretion on the lease obligation for the Company's office lease, which decreases over the period of the lease;
• Management fees of $60,000 (2020 $45,000) increased from the comparative period as a result of a higher monthly fee for the current CEO compared to the prior;
• Office and general of $79,123 (2020 $75,705) was comparable to the prior period;

• Professional fees of $62,200 (2020 $64,734) were comparable to the prior period;
• Rent recovery of $22,002 (2020 $7,871) is as a result of an increase in rental recoveries from sharing office space and a high proportion of office rental costs being capitalized as a ROU asset;
• Share-based payments of $94,544 (2020 $nil) increased from the comparative period due to options granted in the current period and none in the prior period;
• Shareholder communications and investor relations decreased to $91,524 (2020 $116,809) due to a reduction in investor relations activity in the current period;
• Transfer agent and filing fees of $25,913 (2020 $15,091) were higher due to timing of AGM costs;
• Travel of $772 (2020 $71,208) decreased due to a significant reduction in travel due to COVID-19; and
• Other income of $68,723 (2020 $nil) relates to the reduction of other liability (which reflects the premium paid by investors on the Company's flow-through shares) upon completion of qualifying exploration expenditures by the Company.

During the year ended March 31, 2021, the Company reported a net loss of $6,248,731 (2020 - $9,912,964). Expenses for the year ended March 31, 2021 were as follows:

• Consulting fees of $737,490 (2020 $627,612) increased due to an increase in the use of consultants earlier in the current year;
• Depreciation of $171,192 (2020 $166,778) related to depreciation of computer equipment, equipment and leasehold improvements, as well as the Company's ROU asset, was comparable to the comparative period;
• Exploration and evaluation expenditures decreased to $3,722,699 (2020 $7,349,084) due to exploration activity being effectively shut down for part of the current year;
• General exploration of $nil (2020 $79,110) was only incurred in 2020;
• Lease interest accretion decreased to $38,010 (2020 $54,422) due to lower accretion on the lease obligation for the Company's office lease, which decreases over the period of the lease;
• Management fees of $205,000 (2020 $230,000) decreased from the comparative period as a result of no incentive fee paid in 2020;
• Office and general of $157,060 (2020 $228,723) decreased due to less activity in the current year;
• Professional fees decreased to $200,757 (2020 $217,834) due to higher legal fees in the prior year;
• Rent recovery of $72,124 (2020 $3,484) is as a result of an increase in rental recoveries from sharing office space and a high proportion of office rental costs being capitalized as a ROU asset;
• Share-based payments of $891,900 (2020 $176,204) increased from the comparative period due to a higher number of stock options being granted in the current year;
• Shareholder communications and investor relations decreased to $483,267 (2020 $859,335) due to a reduction in investor relations activity in the current year;
• Transfer agent and filing fees of $52,209 (2020 $57,866) decreased from the comparative period due to lower corporate activity during the current year;
• Travel of $7,717 (2020 $349,104) decreased due to a significant reduction in travel due to COVID-19;
• Other income of $344,908 (2020 $418,533) relates to the reduction of other liability (which reflects the premium paid by investors on the Company's flow-through shares) upon completion of qualifying exploration expenditures by the Company; and
• Part XII.6 tax of $nil (2020 $25,734) is the result of using the Look-back Rule to renounce exploration in relation to its flow-through grant.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents at March 31, 2021 was $1,875,290 (2020 - $23,813). The working capital was $1,122,413 at March 31, 2021 (2020 - $1,224,759 deficiency).

At March 31, 2021, the Company had $1,456,944 (2020 - $nil) of remaining commitment to incur exploration expenditures in relation to its December 2020 flow-through financing and did not have any remaining commitment to incur exploration expenditures in relation to its July 2020 (2020 - $nil) and November 2018 (2020 - $nil) flow-through financings.

On July 20, 2020, the Company closed a private placement for total gross proceeds of $3,790,000. The Company issued 2,025,000 flow-through common shares of the Company at a price of $0.60 per flow-through common share for gross proceeds of $1,215,000 and 5,150,000 common shares of the Company at a price of $0.50 per common share for gross proceeds of $2,575,000.

On December 18, 2020, the Company closed a private placement for gross proceeds of $4,643,427. The Company issued 3,240,000 units at a price of $0.50 per unit for gross proceeds of $1,620,000. Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.70 for a period of two years from the date of issuance. The Company also issued 5,497,140 flow-through common shares at a price of $0.55 per share for gross proceeds of $3,023,427.

On July 9, 2021, the Company closed the first tranche of a private placement for gross proceeds of $2,326,240. The Company issued 2,050,000 units at a price of $0.40 per unit for gross proceeds of $820,000. Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.60 for a period of two years from the date of issuance. The Company also issued 3,347,200 flow-through common shares at a price of $0.45 per share for gross proceeds of $1,506,240. The Company paid finders' fees of $37,800 and issued 94,500 agent warrants with an exercise price of $0.60 and a term to expiry of two years.

The Company will need to obtain additional financing during the March 31, 2022 year-end in order to continue exploration activity and for general working capital purposes.

COMMITMENTS

The Company has entered into agreements with officers and directors that include termination and change of control clauses. In the case of termination without cause, the officers and directors are entitled to an amount equal to a multiple (ranging from one to two times) the annual base fee payable. In the case of a change of control, the officers and directors are entitled to an amount equal to a multiple (ranging from one to three times) the sum of the annual base fee and minimum incentive fee payable. As at March 31, 2021, the total annual base fee of the officers and directors under the agreements is $780,000 and the total annual minimum incentive fee is $110,000.

The Company entered into an office sublease agreement that commenced March 1, 2019 and expires August 30, 2022 with basic rent per fiscal year approximately as follows:

Fiscal 2022Fiscal 2023	$190,00080,000
	$270,000

TRANSACTIONS WITH RELATED PARTIES

These amounts of key management compensation are included in the amounts shown on the statements of comprehensive loss:

		YearEndedMarch31, 2021		YearEndedMarch31, 2020
Short-term compensation (consulting fees, exploration and evaluationexpenditures, management fees and professional fees)	$	820,000	$	800,000
Share-based compensation		557,855		66,352
	$	1,377,855	$	866,352

During the year ended March 31, 2021, short-term compensation to related parties consisted of:

• $100,000 (2020 $nil) in management fees paid to the current CEO;
• $105,000 (2020 $205,000) in management fees and $75,000 (2020 $nil) in consulting fees paid to the former CEO (current Executive Chairman);
• $135,000 (2020 $205,000) in exploration and evaluation expenditures and management fees paid to the former COO;
• $90,000 (2020 $105,000) in professional fees paid to the CFO;
• $90,000 (2020 $105,000) in consulting fees paid to a director;
• $120,000 (2020 $120,000) in exploration and evaluation expenditures paid to the VP Exploration; and
• $105,000 (2020 $60,000) in consulting fees to a director.

Transactions with related parties are included in the amounts shown on the statements of comprehensive loss as follows:

	March	YearEnded31, 2021	YearEndedMarch31, 2020
Related company controlled by officer and director (consulting fees andoffice and general)	$	95,000	$120,000
Related companies with common officers and directors (rent recovery)Related company in which an officer is a director (exploration and	$	182,000	$116,000
evaluation expenditures)	$	115,000	$-

As at March 31, 2021, the Company had receivables of $30,650 (2020 - $15,750) related to office rent recovery and other expense reimbursements from companies with common officers and directors.

As at March 31, 2021, the Company had prepaid expenses of $7,000 (2020 - $7,500) related to expenses with a company controlled by a member of key management.

As at March 31, 2021, the Company had accounts payable of $5,000 (2020 - $62,500) with companies controlled by officers and directors and $7,116 (2020 - $10,575) related to shared office and general expenses with a company controlled by an officer and director. The balances owing are unsecured, non-interest-bearing and have no specific terms of repayment.

EVENTS OCCURRING AFTER THE REPORTING DATE

On July 9, 2021, the Company closed the first tranche of a private placement for gross proceeds of $2,326,240. The Company issued 2,050,000 units at a price of $0.40 per unit for gross proceeds of $820,000. Each unit consists of one common share and one-half of one share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.60 for a period of two years from the date of issuance. The Company also issued 3,347,200 flow-through common shares at a price of $0.45 per share for gross proceeds of $1,506,240. The Company paid finders' fees of $37,800 and issued 94,500 agent warrants with an exercise price of $0.60 and a term to expiry of two years.

On July 14, 2021, the Company issued 150,000 common shares to acquire a 25% interest in certain mining leases on the Larder Lake Project, such that the Company now holds a 100% in those mining leases.

On July 20, 2021, the Company announced it had entered into an exploration agreement with First Nations groups related to the Company's Larder Lake Project. Subject to TSX-V approval, the Company will issue 100,000 common shares and 100,000 stock options with an exercise price of $0.365 and a term to expiry of three years to the First Nations groups. As of July 28, 2021, TSX-V approval had not been received.

Subsequent to March 31, 2021, 25,000 stock options expired unexercised following the resignation of a director.

RISKS AND UNCERTAINTIES

The Company, and the securities of the Company, should be considered a highly speculative investment. The following risk factors should be given special consideration when evaluating an investment in any of the Company's securities.

There are a number of outstanding securities and agreements pursuant to which common shares of the Company may be issued in the future. This will result in further dilution to the Company's shareholders.

The Company has a very limited history of operations, is in the early stage of development and has received no revenues other than insignificant interest revenues following its transition to a mineral exploration and development company. As such, the Company is subject to many risks common to such enterprises. There can be no assurance that the Company will be able to obtain adequate financing in the future or, if available, that the terms of such financing will be favourable. The Company does not anticipate paying any dividends in the near future.

Although the Company has taken steps to verify the title to mineral properties in which it has acquired an interest, no assurance whatsoever can be given that the Company's interests may not be challenged by third parties. If challenged, and if the challenge is sustained, it will have an adverse effect on the business of the Company. Title to mineral properties may be subject to unregistered prior agreements or transfers and may also be affected by undetected defects or the rights of indigenous peoples.

Environmental legislation is becoming increasingly stringent and costs and expenses of regulatory compliance are increasing. The impact of new and future environmental legislation on the Company's operations may cause additional expenses and restrictions. If the restrictions adversely affect the scope of exploration and development on the mineral properties, the potential for production on the properties may be diminished or negated.

The exploration of mineral properties involves significant risks, which even experience, knowledge and careful evaluation may not be able to avoid. The price of metals has fluctuated widely, particularly in recent years, as it is affected by numerous factors that are beyond the Company's control, including international economic and political trends, expectations of inflation or deflation, currency exchange fluctuations, interest rate fluctuations, global or regional consumptive patterns, speculative activities and increased production due to new extraction methods. The effect of these factors on the price of metals, and therefore, the economic viability of the Company's interests in the mineral properties cannot be accurately predicted. Furthermore, changing conditions in the financial markets, and Canadian income tax legislation may have a direct impact on the Company's ability to raise funds for exploration expenditures. A drop in the availability of equity financings will likely impede spending. As a result of all these significant risks, it is quite possible that the Company may lose its investments in the Company's mineral property interests.

CAPITAL DISCLOSURES

The Company's objectives when managing capital are to identify, pursue and complete the exploration and development of mineral properties, to maintain financial strength, to protect its ability to meet its ongoing liabilities, to continue as a going concern, to maintain creditworthiness and to maximize returns for shareholders over the long term. The Company does not

have any externally imposed capital requirements to which it is subject. Capital of the Company comprises 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. The Company's investment policy is to invest its cash in financial instruments at high credit quality financial institutions with terms to maturity selected with regard to the expected timing of expenditures from continuing operations. The Company's overall strategy remains unchanged from the prior period.

FINANCIAL INSTRUMENTS AND RISKS

As at March 31, 2021, the Company's financial instruments consist of cash and cash equivalents, receivables, accounts payable and accrued liabilities, and lease obligation. The carrying values of these financial instruments approximate their fair values.

Fair value

The Company classifies its fair value measurements in accordance with an established hierarchy that prioritizes the inputs in valuation techniques used to measure fair value as follows:

• Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities.
• Level 2 Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly.

Level 3 – Inputs that are not based on observable market data.

The following table sets forth the Company's financial assets measured at fair value by level within the fair value hierarchy:

March31, 2021	Level 1	Level 2	Level 3	Total
Cash and cash equivalents	$1,875,290	$-	$-	$1,875,290
March31, 2020	Level 1	Level 2	Level 3	Total
Cash and cash equivalents	$23,813	$-	$-	$23,813

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company manages credit risk, in respect of cash and cash equivalents, by placing at major Canadian financial institutions. The Company has minimal credit risk. Included in the receivables balance is $149,276 owing from the Canada Revenue Agency (2020 - $178,964).

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on capital.

Currency risk – The Company has no funds held in a foreign currency and only a small amount of its accounts payable and accrued liabilities is denominated in US dollars. A fluctuation in the exchanges rates between the Canadian and US dollars of 10% would result in a nominal change to the Company's accounts payable and accrued liabilities and foreign exchange gain or loss. The Company does not use any techniques to mitigate currency risk.

Interest rate risk – Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Interest earned on cash and cash equivalents is at nominal interest rates, and therefore, the Company does not consider interest rate risk to be significant. The Company has no interest-bearing financial liabilities.

Other price risk – Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk. The Company is not exposed to significant other price risk.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquid funds to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation. The contractual financial liabilities of the Company as of March 31, 2021 equal $1,117,171 (2020 - $1,874,931); $904,447 (2020 - $1,623,364) of the liabilities presented as accounts payable and lease obligation – current portion are due within one month of the reporting date.

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

Title to mineral property interests

Although the Company has taken steps to verify title to mineral properties in which it has an interest, these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title may be affected by undetected defects.

Income taxes

Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Company recognizes liabilities and contingencies for anticipated tax audit issues based on the Company's current understanding of the tax law. For matters where it is probable that an adjustment will be made, the Company records its best estimate of the tax liability, including the related interest and penalties in the current tax provision. Management believes they have adequately provided for the probable outcome of these matters; however, the final outcome may result in a materially different outcome than the amount included in the tax liabilities.

In addition, the Company recognizes deferred tax assets relating to tax losses carried forward to the extent that it is probable that taxable profit will be available against which a deductible temporary difference can be utilized. This is deemed to be the case when there are sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity that are expected to reverse in the same year as the expected reversal of the deductible temporary difference, or in years into which a tax loss arising from the deferred tax asset can be carried back or forward. However, utilization of the tax losses also depends on the ability of the taxable entity to satisfy certain tests at the time the losses are recouped.

Going concern risk assessment

The Company's ability to continue its operations and to realize assets at their carrying values is dependent upon its ability to fund its existing acquisition and exploration commitments on its exploration and evaluation assets when they come due, which would cease to exist if the Company decides to terminate its commitments, and to cover its operating costs. The Company may be able to generate working capital to fund its operations by the sale of its exploration and evaluation projects or raising additional capital through equity markets. However, there is no assurance it will be able to raise funds in the future. These financial statements do not give effect to any adjustments required to realize its assets and discharge its liabilities in

other than the normal course of business and at amounts different from those reflected in the accompanying financial statements.

Decommissioning liabilities

Rehabilitation provisions have been created based on the Company's internal estimates. Assumptions, based on the current economic environment, have been made which management believes are a reasonable basis upon which to estimate the future liability. These estimates take into account any material changes to the assumptions that occur when reviewed regularly by management. Estimates are reviewed annually and are based on current regulatory requirements. Significant changes in estimates of contamination, restoration standards and techniques will result in changes to provisions from year to year. Actual rehabilitation costs will ultimately depend on future market prices for the rehabilitation costs that will reflect the market condition at the time the rehabilitation costs are actually incurred.

The final cost of the currently recognized rehabilitation provisions may be higher or lower than currently provided for. As at March 31, 2021, the Company is contributing to shared progressive rehabilitation costs on certain of its claims on an ongoing basis. Costs have not been material to date and future costs are not expected to be material. Accordingly, no provision has been made.

Fair value of stock options granted

The Company uses the Black-Scholes option pricing model to value the stock options granted during the year. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates that are subjective and may not be representative of actual results. Changes in assumptions can materially affect estimates of fair values.

Leases

Lease obligations that are recognized at March 31, 2021 have been estimated using a 12% discount rate based on the cost of borrowing for debt instruments of comparable terms for companies with a comparable investment grade to the Company. This rate represents the rate that the Company would incur to obtain the funds necessary to purchase an asset of a similar value, with similar payment terms and security in a similar economic environment.

NEW ACCOUNTING STANDARDS ADOPTED DURING THE PERIOD

There were no new accounting standards adopted during the period.

OTHER INFORMATION

The Company had the following securities issued and outstanding:

	July 28,2021	March 31,2021	March 31,2020
Common shares	45,299,816	39,752,816	23,840,676
Warrants	3,137,012	2,017,512	-
Stock options	3,832,250	3,857,250	2,107,250
Fully diluted shares	52,269,078	45,627,578	25,947,926