GPM Metals — Interim / Quarterly Report 2020

Aug 25, 2020

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

THREE and SIX MONTHS ENDED June 30, 2020

(EXPRESSED IN CANADIAN DOLLARS) (UNAUDITED)

Notice to Reader

The accompanying unaudited condensed interim consolidated financial statements of GPM Metals Inc. (the "Company") have been prepared by and are the responsibility of management. The unaudited condensed interim consolidated financial statements as at and for the six months ended June 30, 2020 have not been reviewed by the Company's auditors.

GPM METALS INC. Condensed Interim Consolidated Statements of Financial Position (Expressed in Canadian Dollars) (Unaudited)

	As at June 30, 2020	As at December 31, 2019
ASSETS
Current assets
Cash	$139,842	$312,374
Short-term investments (note 5)	14,546	19,509
Lease receivable (note 8)	17,886	22,381
Accounts receivable and other assets (note 7)	23,023	13,187
Total current assets	195,297	367,451
Lease receivable (note 8)	56,835	60,754
Property, plant and equipment (note 6)	65,730	80,484
Total long-term assets	122,565	141,238
Total assets	$317,862	$508,689
LIABILITIES AND EQUITYCurrent liabilities
Amounts payable and other liabilities	$66,855	$102,244
Lease liability (note 8)	51,160	44,762
Total current liabilities	$118,015	$147,006
Lease liability -noncurrent (note 8)	91,295	121,508
Total liabilities	$209,310	$268,514
Capital, reserves and deficit
Share capital (note 7)	24,443,575	24,498,580
Capital surplus	14,876,030	14,842,495
Warrant reserve (note 9)	540,279	485,274
Deficit	(39,586,174)	39,586,174
Net income	(165,158)
Total capital, reservesand deficit	108,528	240,175
Total liabilities and equity	$317,862	$508,689
Nature of operations(note 1)

Subsequent events (note 16)

Condensed Interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in Canadian Dollars)

(Unaudited)

	Three MonthsEnded June			Six MonthsEnded June
		30,				30,
		2020		2019		2020		2019
Operating
Expenses
General and Administrative (note 13)	$	54,596	$	70,964	$	145,212	$	189,207
Foreign exchange (gain/loss)		3,405		(40,489)		3,591		(11,750)
Exploration and evaluation
expenditures (note 15)		4,865		73,472		13,620		139,377
Amortization
Other
Operating Loss		(62,866)		(103,948)		(162,423)		(316,835)
Interest income		296		(2,803)		2,228		(1,961)
FV adjustment on short-term
investments(note 5)		8,538		11,299		(4,963)		4,503
Net loss and comprehensive loss for the Q2
2020		(54,032)		(100,537)		(165,158)		(319,378)
Basic and diluted net loss per common
share (note 12)	$	(0.001)	$	(0.001)		(0.001)	$	(0.003)
Weighted average number of common
sharesoutstanding basic (note 12)		63,116,559		55,116,559		63,116,559		55,116,559

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in Canadian Dollars)

(Unaudited)

	Six Months End,June 30, 2020		Six MonthsEnd,June 30, 2019
Operating Activities
Net income (loss forthe period)	$(165,158)	$	(319,378)
Adjustment for non-cash items:
Amortization	14,625
FV adjustment on short-term investments
(note 5)	4,963		4,503
Share based payments	33,535		16,163
Lease Accretion Expense	5,079
Changes in Non-cash working capital items:
Accounts receivable and other assets	(9,836)		15,933
Lease receivable	4,495
Lease payable	(30,213)
Amounts payable and other liabilities	(28,991)		(84,492)
Net cash used in operating activities	(171,502)		(367,271)

Investing Activities

Net cash used in Investing Activities	0	0
Financing activities
Net cash provided by financing activities	0	0
Net change in cash	(171,502)	(367,271)
Cash, beginning of year	312,374	399,674
Foreign Exchange adjustment	(1,030)	0
Cash, end of the period	$139,842$	32,403

Condensed Interim Consolidated Statements of Changes in Equity (Expressed in Canadian Dollars) (Unaudited)

		Reserves
	Share Capital(Note 9)	CapitalSurplus	WarrantReserve(Note 11)	Deficits	Total
Balance, December 31, 2018	$24,193,983	14,797,549	230.528	(38,927,074)	$294,986
Share issued on, 2019
Warrants issued on, 2019
Share issue cost
Share based payments		16,163			16,163
Net loss andcomprehensive loss for Q2, 2019				(319,378)	(319,378)
Balance, June 30, 2019	$24,193,983	$14,813,712	$230,528	$(38,539,879)	$(8,229)

		Reserves
	Share Capital(Note 9)	CapitalSurplus	WarrantReserve(Note 11)	Deficits	Total
Balance, December 31, 2019	$24,498,580	14,842,495	485,274	(39,586,174)	$240,175
Share based payments (note 8)		33,535			$33,535
WarrantsExpiredon Feb, 2020	181,474		(181,474)		$0
Warrants Extended on Feb, 2020	(236,479)		236,479		$0
Net loss and comprehensive loss for Q2, 2020				(165,158)	$(165,158)
Balance, June 30, 2020	$24,443,575	14,876,030	540,279	$(39,862,457)	$108,552

1. Nature of operations and going concern

GPM Metals Inc. (the "Company" or "GPM") was incorporated under the Alberta Business Corporation Act on March 16, 1994, under the name of Minera Sierra Madre Inc. Effective December 15, 1999, the Company changed its name to MSA Capital Corp. and, subsequently, on October 28, 2002, changed its name to Coronation Minerals Inc. On April 5, 2004, the Company filed articles of continuance and was continued under the Business Corporations Act (Ontario). On August 17, 2009, the Company announced that it had filed articles of amendment to change its name to Guyana Precious Metals Inc. Effective August 27, 2013, the Company changed its name to GPM Metals Inc. The primary office is located at 141 Adelaide Street West, Suite 1101, Toronto, Ontario, M5H 3L5.

The Company is a development stage entity that does not generate operating revenues and has limited financial resources. The Company is subject to risks and challenges similar to companies in a comparable stage of development. These risks include the availability of capital and risks inherent in the mining industry related to development, exploration, and operations as well as global economic risks and commodity price volatility. The underlying value of the Company's mineral properties are entirely dependent on the Company's ability to obtain the necessary permits to operate and secure the required financing to complete development of and establish future profitable production from its mineral assets, or the proceeds from the disposition of its mineral properties. These consolidated financial statements have been prepared using International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board on a going concern basis, which assumes the Company will be able to meet its obligations and continue its operations for the next twelve months from December 31, 2019. On December 31, 2019, the Company had not yet achieved profitable operations, had an accumulated deficit of $39.6 million since inception (December 31, 2018, $38.9 million) and expects to incur further losses in the development of its business.

The Company's ability to continue as a going concern is dependent upon its ability to obtain the necessary financing to meet its ongoing corporate overhead expenditures as well as advance the exploration of its claims and development of its projects. Although the Company has been successful in the past in obtaining financing, there is no assurance that it will be able to do so in the future or that such arrangements will be on terms advantageous to the Company. These material uncertainties may cast significant doubt upon the Company's ability to realize its assets and discharge its liabilities in the normal course of business and, accordingly, the appropriateness of the use of accounting principles applicable to a going concern.

These consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities and the reported expenses and balance sheet classifications that would be necessary if the Company were unable to realize its assets and settle its liabilities as a going concern in the normal course of operations. Such adjustments could be material.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, 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, unregistered claims, aboriginal claims, and noncompliance with regulatory and environmental requirements.

2. Significant accounting policies

(a) Statement of compliance

These interim condensed consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting and do not include all the information required for full annual financial statements by International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standard Board ("IASB"). These interim condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2019 which includes the information necessary or useful to understanding the Company's business and financial statement presentation. In particular, the Company's significant accounting policies are presented as Note 2 in the audited consolidated financial statements for the year ended December 31, 2019 and have been consistently applied in the preparation of these interim condensed consolidated financial statements.

The policies applied in these consolidated financial statements are based on IFRS issued and effective as of June 30, 2020. The Board of Directors approved the statements on August 23, 2020.

(b) Recent accounting pronouncements

Certain pronouncements were issued by the IASB or the International Financial Reporting Interpretations Committee ("IFRIC") that are mandatory for accounting periods after January 1, 2019, or later periods. Many are not applicable or do not have a significant impact on the Company and have been excluded from the list below.

IFRS 16-Leases ("IFRS 16") was issued by the IASB, replacing IAS 17 - Leases. IFRS 16 provides a single lessee accounting model and requires the lessee to recognize assets and liabilities for all leases on its statement of financial position, providing the reader with greater transparency of an entity's lease obligations.

The Company elected the modified retrospective transition approach, which provides lessees a method for recording existing leases at adoption with no restatement of prior period financial information. Under this approach, a lease liability was recognized on January 1, 2019, in respect of leases previously classified as operating leases, measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate at transition.

The associated right-of-use assets were measured at amounts equal to the respective lease liabilities, subject to certain adjustments allowed under IFRS 16.

In addition, the Company elected to utilize practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to apply a single discount rate to a portfolio of leases with reasonably similar characteristics, and rely on its assessment as to whether leases are onerous applying IAS 37 Provisions, Contingent Liabilities and Contingent Assets immediately before the date of initial application as an alternative to performing an impairment review. Adoption of the new standard on January 1, 2019, resulted in recognition of a right-of-use asset and lease liability of $208,890 related to office space. On initial recognition, the right-of-use asset was offset by a sublease held with a related party resulting in recognition of a lease receivable of $104,445 and an immediate derecognition of half the value of the right-of-use asset. All leases are accounted for by recognizing a rightof-use asset and a lease liability except for:

• Leases of low-value assets; and
• Leases with a duration of twelve months or less.

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate determined by the incremental borrowing rate on commencement of the lease is used. Variable lease payments are only included in the measurement of the lease liability if they depend on an index or rate. In such cases, the initial measurement of the lease liability assumes the variable element will remain unchanged throughout the lease term. Other variable lease payments are expensed in the period to which they relate.

2. Significant accounting policies continued

On initial recognition, the carrying value of the lease liability also includes:

• Amounts expected to be payable under any residual value guarantee;
• The exercise price of any purchase option granted if it is reasonably certain to assess that option;
• Any penalties are payable for terminating the lease if the term of the lease has been estimated on the basis of the termination option being exercised.

Right-of-use assets are initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

• Lease payments made at or before the commencement of the lease;
• Initial direct costs incurred; and
• The amount of any provision recognized where the Company is contractually required to dismantle, remove, or restore the leased asset.

Lease liabilities, on initial measurement, increase as a result of interest charged at a constant rate on balance outstanding and are reduced for lease payments made.

(c) Basis of presentation

These consolidated financial statements have been prepared on a historical cost basis except for the revaluation of certain financial assets to fair value. In addition, these consolidated financial statements have been prepared using the accrual basis of accounting except for cash flow information.

In the preparation of these consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. Actual results could differ from these estimates. Of significance are the estimates and assumptions used in the recognition and measurement of items included in note 2.

(d) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and its subsidiaries. The results of subsidiaries acquired or disposed of during the periods presented are included in the consolidated statement of income and comprehensive income from the date that control commences until it ceases, as appropriate. All intercompany transactions, balances, income, and expenses are eliminated upon consolidation.

The following companies have been consolidated within the consolidated financial statements:

	Country of
Corporation	Incorporation	Principle activity
GPM Metals Inc.	Canada	Parent company
1901743 Ontario Inc.(1)	Canada	Holding company
DPG Resources Australia Pty Ltd(2)(4)	Australia	Exploration company
(1)Guyana Precious Metals (Barbados) Inc.	Barbados	Holding company
Chaska Resources SAC(3)(5)	Peru	Exploration company

(1) 100% owned by GPM Metals Inc.

• (2) 100% owned by 1901743 Ontario Inc.
• (3) 100% owned by Guyana Precious Metals (Barbados) Inc.,
• (4) Also referred to as DPG Resources Inc. throughout these financial statements
• (5) Also referred to as Chaska throughout these financial statements

2. Significant accounting policies continued

(e) Foreign currencies

The functional currency for the Company and its subsidiaries, as determined by management, is the Canadian Dollar. For the purpose of the consolidated financial statements, the results of operations and financial position are expressed in Canadian Dollars.

Transactions in currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the yearend exchange rates are recognized in the consolidated statement of loss and comprehensive loss.

(f) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.

Below is a summary showing the classification and measurement bases of the Company's financial instruments.

Classification	IFRS 9
Cash	FVTPL
Short-term investments	FVTPL
Accounts payable and other liabilities	Amortized Cost

Financial assets

Financial assets are classified as either financial assets at FVTPL, amortized cost, or FVTOCI. The Company determines the classification of its financial assets at initial recognition.

i. Financial assets recorded at FVTPL

Financial assets are classified as FVTPL if they do not meet the criteria of amortized cost or FVTOCI. Gains or losses on these items are recognized in profit or loss. The Company's cash is classified as financial assets measured at FVTPL.

ii. Investments recorded at fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to measure the investment at FVOCI whereby changes in the investment's fair value (realized and unrealized) will be recognized permanently in OCI with no reclassification to profit or loss. The election is made on an investment-by-investment basis.

iii. Amortized cost

Financial assets are classified as measured at amortized cost if both of the following criteria are met, and the financial assets are not designated as at FVTPL: 1) the object of the Company's business model for these financial assets is to collect their contractual cash flows, and 2) the asset's contractual cash flows represent "solely payments of principal and interest".

Financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or amortized cost. The Company determines the classification of its financial liabilities at initial recognition.

2. Significant accounting policies continued

i. Amortized cost

Financial liabilities are classified as measured at amortized cost unless they fall into one of the following categories: financial liabilities at FVTPL, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition, financial guarantee contracts, commitments to provide a loan at a below-market interest rate, or contingent consideration recognized by an acquirer in a business combination.

The Company's accounts payable and other liabilities do not fall into any of the exemptions and are therefore classified as measured at amortized cost.

ii. Financial liabilities recorded FVTPL

Financial liabilities are classified as FVTPL if they fall into one of the five exemptions detailed above.

Transaction costs

Transaction costs associated with financial instruments, carried at FVTPL, are expensed as incurred, while transaction costs associated with all other financial instruments are included in the initial carrying amount of the asset or the liability.

Subsequent measurement

Instruments classified as FVTPL are measured at fair value with unrealized gains and losses recognized in profit or loss. Instruments classified as amortized cost are measured at amortized cost using the effective interest rate method. Instruments classified as FVTOCI are measured at fair value with unrealized gains and losses recognized in other comprehensive income.

Derecognition

The Company derecognizes financial liabilities only when its obligations under the financial liabilities are discharged, cancelled, or expired. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Expected credit loss impairment model

IFRS 9 introduced a single expected credit loss impairment model, which is based on changes in credit quality since the initial application. The adoption of the expected credit loss impairment model had no impact on the Company's consolidated financial statements.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations to the Company in full or when the financial asset is more than 90 days past due.

The carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off.

Financial instruments at fair value through profit and loss

Financial instruments recorded at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

2. Significant accounting policies continued

• Level 1 valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2 valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices): and
• Level 3 valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs).

As of June 30, 2020, the fair value of the financial liabilities approximates the carrying value due to the short-term nature of the instruments.

As of June 30, 2020, cash and the Company`s investment in Prophecy Coal Corp. ("Prophecy Coal") (note 5) are recorded at fair value and are considered as Level 1 financial instruments. As of June 30, 2020, Prophecy Coal common shares are carried at a fair value of $14,500. (June 30, 2019 – $9,000)

(g) Impairment of non-financial assets

At the end of each reporting period, the Company reviews the carrying amounts of its non-financial assets with finite lives to determine whether there is any indication that those assets have suffered an impairment loss. Where such an indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss. The recoverable amount is the higher of an asset`s fair value less cost to sell or its value in use. In addition, longlived assets that are not amortized are subject to an annual impairment assessment.

(h) Exploration and evaluation expenditures

The Company expenses exploration and evaluation expenditures as incurred. Exploration and evaluation expenditures include acquisition costs of mineral properties, property option payments and evaluation activities.

Once a project has been established as commercially viable and technically feasible, related development expenditure will be capitalized. This includes costs incurred in preparing the site for mining operations. Capitalization ceases when the mine is capable of commercial production, except for development costs that give rise to a future benefit. If an exploration property is disposed of any, consideration is reflected as a gain on disposition.

(i) Cash

Cash in the statements of financial position comprise cash at banks and on hand.

(j) Provisions

A provision is recognized when the Company has a present legal or constructive obligation because of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract.

The Company had no material provisions or onerous contracts at June 30, 2020 and June 30, 2019.

2. Significant accounting policies continued

(k)Common shares (share capital) and subscriber warrants

Common shares are classified as share capital. Incremental costs directly attributable to the issue of common shares are recognized as a deduction from equity, net of any tax effects. Subscriber warrants are classified within warrant reserve. Where common shares and subscriber warrants are offered together (as a "unit") the Corporation allocates the consideration received per unit, net of any issuance costs, to the common shares and subscriber warrants based on their relative fair values. The fair value of warrants is measured using a Black-Scholes option pricing model.

(l)Share based payment transactions

Share based payments to employees:

The company measures share based payments to employees at the fair value of the options at the grant date. The fair value of share options granted to employees is recognized as an expense over the vesting or service period with a corresponding increase in equity. The fair value of the options granted is measured using the Black-Scholes valuation model, considering the terms and conditions upon which the options were granted.

At each financial reporting date, the amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services like those performed by a direct employee, including directors of the Company.

Share based payments to non-employees:

The Company measures share based payments to non-employees at the fair value of the goods or services received at the date of receipt of the goods or services. The fair value of share options granted to non-employees is recognized as an expense over the period the services have been provided. If the fair value of the goods or services cannot be measured reliably, the fair value of the options granted will be used, measured using the Black-Scholes option-pricing model.

(m)Warrants

Special warrants give the holders' the right to purchase a set number of shares for a fixed price on or before the warrant's expiration date.

Warrants are cancelled on their given expiration date. Expired warrants are cancelled to contributed surplus.

(n)Income taxes

Tax expense comprises current and deferred tax. Current tax and deferred tax are recognized in profit or loss except to the extent that it relates to a business combination, or items recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future. In addition,

2. Significant accounting policies continued

deferred tax is not recognized for taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they are realized or settled, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.

(n)Income taxes (continued)

A deferred tax asset is recognized for unused tax losses, tax credits, and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

(o)Restoration, rehabilitation and environmental obligations

A legal or constructive obligation to incur restoration, rehabilitation and environmental costs may arise when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted to their net present value, are provided for and capitalized at the start of each project to the carrying amount of the asset, as soon as the obligation to incur such costs arises. Discount rates using a pretax rate that reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related assets, through amortization using either a unit-of-production or the straight-line method as appropriate. The related liability is adjusted for each period for the unwinding of the discount rate and for changes to the current marketbased discount rate and amount or timing of the underlying cash flows needed to settle the obligation. Costs for restoration of subsequent site damage that is created on an ongoing basis during production are provided for at their net present values and charged against profits as extraction progresses.

At June 30, 2020 and June 30, 2019, the Company has no material restoration, rehabilitation and environmental costs as the disturbance to date is minimal.

(p)Interest income

Interest income is recognized on the accrual basis using the effective interest method.

(q)Loss per share

The Company presents basic loss per share data for its common shares, calculated by dividing the income/loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. Diluted loss per share is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all warrants and options outstanding that may add to the total number of common shares. The dilutive effect of outstanding stock options and warrants on earnings per share is calculated by determining the proceeds for the exercise of such securities which are then assumed to be used to purchase common shares of the Company. If the number of common shares outstanding increases or decreases because of share split or consolidation, the calculation of basic and diluted income/ loss per share for all periods presented, is adjusted retrospectively.

2. Significant accounting policies continued

(r)Significant accounting judgments and estimates

The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that effect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These consolidated financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(s)Critical accounting estimates

Significant assumptions about the future that management has made that could result in a material adjustment to the carrying amounts of assets and liabilities, if actual results differ from assumptions made, relate to, but are not limited to, the following:

• the inputs used in accounting for share-based payment transactions and in valuation of warrants issued in unit financing;
• management assumption of no material restoration, rehabilitation and environmental obligations, based on the fact and circumstances that existed during the period;
• management's position that there is no income tax asset recognized within these consolidated financial statements;
• valuation of shares pursuant to the gain on sale of property; and
• assessment of the going concern assumption as detailed in Note 1 to the financial statements.

Management applied judgment in determining the functional currency of the Company and its subsidiaries as Canadian dollars.

(t) Equipment

Property and equipment are carried at cost, less accumulated depreciation, and accumulated impairment losses. The cost of an item of property and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is recognized based on the cost of an item of property and equipment, less its estimated residual value, over four years for computer equipment, and 2.5 years for specialized software.

An asset's residual value, useful life and depreciation method are reviewed, and adjusted if appropriate, on an annual basis.

In the year of disposal, the resulting gain or loss is included in the statements of operations and comprehensive loss, and the cost of the equipment retired or otherwise disposed of, and the related accumulated depreciation are eliminated from these accounts.

3. Capital risk management

The Company manages its capital with the following objectives:

• To ensure sufficient financial flexibility to achieve the ongoing business objectives including funding of future growth opportunities, and pursuit of accretive acquisitions; and
• To maximize shareholder return through enhancing the share value.

The Company monitors its capital structure and adjusts according to market conditions in an effort to meet its objectives given the current outlook of the business and industry in general. The Company may manage its capital structure by issuing new shares, repurchasing outstanding shares, adjusting capital spending, or disposing of assets. The capital structure is reviewed by management and the Board of Directors on an ongoing basis.

The Company considers its capital to be equity, which comprises share capital, shares to be issued, reserves and deficit, which at June30, 2020 is $108,527 (June 30,2019 – $630,527).

The Company manages capital through its financial and operational forecasting processes. The Company reviews its working capital and forecasts its future cash flows based on operating expenditures, and other investing and financing activities. The forecast is updated based on activities related to its mineral properties. Selected information is provided to the Board of Directors. The Company's capital management objectives, policies and processes have remained unchanged during the period June 30, 2020.

4. Financial risk management

The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including foreign currency risk and equity price risk).

Risk management is carried out by the Company's management team with guidance from the Audit Committee under policies approved by the Board of Directors. The Board of Directors also provides regular guidance for overall risk management.

(i) Credit risk

Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The Company's credit risk is primarily attributable to cash and accounts receivable. Cash is held with select major Canadian, Peruvian, Barbadian and Australian chartered banks, from which management believes the risk of loss to be minimal.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will not have sufficient cash resources to meet its financial obligations as they come due. The Company's liquidity and operating results may be adversely affected if its access to the capital markets is hindered, whether because of a downturn in stock market conditions generally or matters specific to the Company. The Company generates cash flow primarily from its financing activities. As at June 30, 2020, the Company had cash of $144,230, June 30, 2019 – $32,403) to settle current liabilities of $122,427 (June 30, 2019 – $0). Some of the Company's financial liabilities have maturities longer than 90 days and are not subject to normal trade terms. The Company regularly evaluates its cash position to ensure preservation and security of capital as well as liquidity.

(iii) Market risk

Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates and equity prices.

4. Financial risk management continued

a) Foreign currency risk

The Company's functional and presentation currency is the Canadian dollar and major purchases are transacted in Canadian dollars. As of June 30, 2020, the Company funds certain operations, exploration and administrative expenses in Peru and Barbados on a cash call basis using US dollar currency, and in Australia using the Canadian dollar its Canadian dollar bank accounts held in Canada. The Company maintains US dollar bank accounts in Canada, Peru and Barbados, Australian dollar bank accounts in Australia. The Company is subject to gains and losses from fluctuations in the US dollar and the Australia dollar against the Canadian dollar.

b) Equity price risk

The Company is exposed to price risk with respect to equity prices. Equity price risk is defined as the potential adverse impact on the Company's earnings due to movements in individual equity prices or general movements in the level of the stock market. The Company's investment in the common shares of Prophecy Coal Corp. ("Prophecy Coal") (note 5) are subject to fair value fluctuations arising from changes in the equity market.

5. Short-term investments

	Number of Shares	As at March 31, 2020	As at December31, 2019
Prophecy Development Corp	5,000	$14,500	$10,250
G2 Goldfields Inc.	42	46	4.83
		$14,546	$10,255

6. Property, plant, and equipment

		Right-of
	Equipment	use asset	Total
Balance as of December 31, 2018	$6,639	$104,445	$111,048
Depreciation	2,724	13,333	16,057
Balance as ofJune30, 2019	$3,915	$91,112	$127,105
Balance as of December 31, 2019	$2,706	$77,778	$81,711
Depreciation	1,421	13,333	8,755
Balance as ofJune 30, 2020	$1,285	$64,445	$90,466

Notes to Condensed Interim Consolidated Financial Statements Six Months Ended June 30, 2020 (Expressed in Canadian Dollars) (Unaudited)

7. Accounts receivable and other assets

	As at June 30, 2020	As at December 30, 2019
Harmonized sales tax recoverable	$10,314	$3,471
Sales tax recoverable	0	867
Prepaid expenses	7,225	8,626
Miscellaneous	5,123	224
Total Account Receivable and Other Assets	22,661	13,187

8. Lease Liability

On December 1, 2017, the Company entered into a 60-month lease agreement to lease office space. During the 2018 fiscal year, the Company entered into a sublease agreement with a related party. Half of the office lease space has been allocated to the related party, and the Company is reimbursed for half of the monthly lease payments for the remaining term of the lease, terminating on November 30, 2022.

	Office Lease
Balance,December 31, 2019	$166,270
Accretion expense	11,297
Lease payments	(35,113)
Balance, June 30, 2020	$142,454

The Company has recorded this lease as a right-of-use asset (note 6) and lease liability in the consolidated statements of financial position as of March 31, 2020. As of December 31, 2019, the lease liability was measured at the present value of the lease payments that were not paid as of that date. The lease payments are discounted using an interest rate of 15%, which is the Company's incremental borrowing rate.

The continuity of the lease liability is presented in the table below:

	Under1 year	Between1-2 years	Total
Office Lease	$51,160	$91,294	$	142,454

8. Lease Liability continued

In connection with the sublease agreement held with a related party, as on December 31, 2019, a lease receivable amount recognized and measured at the present value of the lease payments that were not received as of that date. The sublease payments are discounted using an interest rate of 15%, identical to the discount rate used for the head lease.

	Lease Receivable
Balance,December 31, 2018	$
Adoption of IFRS 16	104,445
Accretion expense	6,135
Sublease payments	(17,556)
Balance, June 20, 2019	$93,024
Balance,December 31, 2019	$82,108
Accretion expense	5,796
Sublease payments	(17,556)

9. Share capital

a) Authorized share capital

The authorized share capital consisted of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid.

b) Common shares issued

At June 30, 2020, the issued share capital amounted to $24,443,575. The changes in issued share capital for the periods were as follows:

	Number of Common Shares	Amount
Balance, December 31, 2018	110,233,118	$24,193,983
Consolidation 2:1, June 2019
Balance, June 30, 2019	55,116,559	$24,193,983
Issues in August 09, 2019	8,000,000	345,254
Issue Cost		(40,657)
Balance, December 31, 2019	63,116,559	$24,498,580
Warrants Expired February 23, 2020	(10,000,000)	181,474
Warrants Extended to February 23, 2020	10,000,000	(236,479)
Balance, June 30, 2020	63,116,559	$24,443,575

9. Share capital continued

• (1) In July 2019, the Company received approval by a majority shareholder vote to effect a consolidation of the issued and outstanding common shares of the Company on the basis of one (1) post-consolidation common share for every two (2) pre-consolidation common shares. Prior to the consolidation, the Company held 110,233,118 common shares issued and outstanding. Upon completion of the share consolidation, the number of post-consolidation common shares issued and outstanding was approximately 55,116,559.
• (2) In August 2019, the Company completed a private placement under which it has issued an aggregated of 8,000,000 units at $0.075 per unit to raise gross proceeds of $600,000. Each unit consists of one common share of the Company and one share purchase warrant with such warrant exercisable to acquire one additional common share at an exercise price of $0.10 for 36 months from the closing of the offering. The fair value of these warrants was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: the share price of $0.07, expected dividend yield of 0%, risk-free interest rate of 1.42%, the volatility of 133%, and an expected life of three years. The value assigned to these warrants using a proportional allocation method is $249,283.The Company incurred share issuance costs totaling $40,657, including cash commission of $9,835 and issued an aggregate of 109,800 broker warrants to eligible registrants assisting in connection with the offering, with each such broker warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.10 for 36 months from the closing of the offering. The fair value of the broker warrants was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: the share price of $0.07, expected dividend yield of 0%, risk-free interest rate of 1.42%, the volatility of 133%, and an expected life of three years. The value assigned to these broker warrants is $5,463.

10. Stock options

The Company adopted a stock option plan for employees, consultants, officers, and directors on April 24, 1995. The number of common shares reserved for issue under the stock option plan may not exceed 10% of the issued and outstanding capital of the Company at any given time. The term of options granted under the stock option plan may not exceed five years from the date of the grant and the option price, which may be determined by the directors of the Company, may not be less than the market price for the common shares at the grant date, less an approved discount. The Company records a charge to the statements of loss and comprehensive loss using the Black-Scholes valuation model. For options granted to non-employees, the valuation is based on services provided if reliably measurable. The Black-Scholes valuation is dependent on a number of estimates, including the risk-free interest rate, the level of stock volatility, together with an estimate of the level of forfeiture. The level of stock volatility is calculated with reference to the historic traded daily closing share price of the Company at the date of the issue.

Options pricing models require the input of highly subjective assumptions, including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate, and therefore, the existing models do

not necessarily provide a reliable measure of the fair value of the Company's share purchase options.

The following tables reflect the continuity of stock options for the periods ended June 30, 2020 and June 30, 2019:

	Number of Stock Options	Weighted Average Exercise Price ($)
Balance, December 31, 2018	9,075,000	0.31
Expired and Cancelled	(550,000)	1.00
Consolidated 2:1 on June 11,2019	4,262,500	0.58
Balance, June, 2019	4,262,500	0.35
Expired in July 2019	(1,637,500)	1.00
Granted on December13, 2019	3,100,000	0.10
Balance, December 31, 2019	5,725,000	0.53
Expired and Cancelled March 2, 2020	(1,525,000)	0.10
Cancelled February25, 2020	(250,000)	0.10
Balance, June 30, 2020	3,950,000	0.14

The following table reflects the stock options issued and outstanding as of June 30, 2020:

				Number of
	Exercise	Reminingcontractual Life	Number ofOptions	OptionsVested	Number ofOptions
Expiry Date	Prices	(years)	Outstanding	(exercisable)	Unvested
7-Sep-20	0.23	0.19	250,000	250,000	-
12-Dec-21	0.20	1.45	600,000	600,000	-
13-Dec-22	0.10	2.45	3,100,000	2,280,864	819,136
Total June 30, 2020			3,950,000	3,130,864	819,136

• (1) On March 2, 2017 the Company granted 3,350,000 options to certain directors, officers and consultants of the Company at a price of $.15 per share. The fair value of these options at the date of grant of $.0657 was estimated using Black-Scholes valuation model with the following inputs and assumptions: a 2,72-year expected term; 129.62% expected volatility based on historical trends; risk free interest rate of 0,77% and an expected dividend yield of 0%. The grant date fair value assigned to these options was $220,169. These options, which will vest by 25% upon date of grant and by 25% on each of the 6, 12 and 18-month anniversaries of the date of grant, will expire on March 2, 2020. For the three and six months ended June 30, 2019 the impact on salaries and benefits was nil. For the three and six months ended June 30, 2018 the impact on salaries and benefits was $18,316 and $27,437.
• (2) On December 12, 2018, the Company Compensation Committee decided to a grant of 1,700,000 stock options to various officers, directors, and consultants of the Corporation. The option is at an exercise price of $0.10 per share and expiring on December 12, 2021, and a total of 24 months. The fair value of these options at the date of grant of $0.022 was estimated using Black-Scholes valuation model with the following inputs and assumptions: a 2-year expected term: 117.677% expected volatility based on historical trends: the riskfree interest rate of 2.06% and an expected dividend yield of 0%. The grant date fair value assigned to these

10. Stock options continued

• (3) options was $37,332. These options, which will vest by 25% on the date of grant and each of the 6, 12, and 18-month anniversaries of the date of grant, will expire on December 12, 2021. For the period March 31, 2019, the impact on salaries and benefits was $8,543.
• (4) On December 13, 2019, the Company granted 3,100,000 options to certain directors, officers, and consultants of the Company. The options have an exercise price of $0.10 per share and an expiry date of December 13, 2022. 1,850,000 of the options are to vest at a rate of 25% on the date of grant and 25% on each of the 6, 12, and 18-month anniversaries of the date of grant. The remaining 1,250,000 options are to vest upon the grant of an exploration license from the Northern Land Council. If the exploration license is not granted by the following dates, options will be canceled as follows: 250,000 on June 25, 2020, 250,000 on September 25, 2020, 250,000 on December 25, 2020, 250,000 on March 25, 2021, and 250,000 on June 25, 2021. The fair value of the options was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions: the share price of $0.06, expected dividend yield of 0%, risk-free interest rate of 1.66%, the volatility of 126%, and an expected life of 3 years. The fair value assigned to these options was $122,214. As of December 31, 2019, the exploration license has not yet been granted, and no shares in connection with the exploration license have vested. For the year ended December 31, 2019, the impact on the consolidated statement of loss and comprehensive loss is $21,525 (2018 - $nil) in connection with the vesting of the 1,850,000 options.
• (5) On March 05, 2020, the Company had 1,525,000 options expired and canceled 250,000 options that due to expire on December 13, 2022 and March 31, 2022.

11. Warrants

The following table reflects the continuity of warrants for the periods ended June 30, 2020 and June 30, 2019:

			Weighted
	Numb of		Exercise		Remaining
	Warrants	Fair Value	Price	Expiry Date	Life
Balance December 31, 2018	15,000,000	230,528	0.1		0.01
Warrants 2:1 Consolidation June	7,500,000	230,528	0.2		0.01
Total Balance June 30, 2019	7,500,000	230,528	0.2		0.01
Warrants Issued, August 09, 2019	8,000,000	249,283	0.1	August 09,2022	2.11
Brock Warrants Issued, August 09, 2019	109,800	5,463	0.1	August 09, 2022	2.11
Total Balance December 31, 2019	15,609,800	485,274	0.16		2.10
Warrants expired, February 23,2020	(5,000,000)	(181,474)	0.20	February 23, 2020
Warrants extended, February 23, 2020	5,000,000	236,479	0.20	February 23,2022	1.65
Total Balance June 30, 2020	15,609,800	540,279	0.16		1.96

12. Net loss per common share

The calculation of basic loss per share for the three and six months ended June 30, 2020 was based on the loss attributable to common shareholders of $111,125 and $165,182 (three months and six months ended June 30, 2019 - loss of $100,537 and $319,378) and the weighted average number of common shares outstanding of 63,116,559 (three and six months ended June 30, 2019 – 55,116,559). Diluted loss per share did not include the effect of 3,950,000 stock options (June 30, 2019– 4,262,500 stock options) and 15,609,800 warrants (June 30, 2019– 7,500,000 warrants) as they are anti-dilutive or not in the money.

13. General and administrative

	Three Months Ended June 30			Six Months Ended June 30,
	2019		2019		2020		2018
Salaries and benefits	$0	$	14,311	$	16,660	$	30,692
Consulting fees	0		12,936		0		(39,614)
Administrative and general	11,311		27,481		30,526		79,264
Accretion expense	286				5,079
Depreciation expense	7,334				14,625
Stock-based compensation	15,357				33,535
Reporting issuer costs	5,164		23,832		8,203		26,351
Professional fees	14,161		4,378		28,828		35,459
Insurance	2,875		2,875		6,044		5,750
Travel	0		11,356		0		35,141
Total	$56,488	$	97,170	$	143,500	$	173,044

14. Related party balances and transactions

Related parties include the Board of Directors, officers, close family members and enterprises that are controlled by these individuals as well as certain persons performing similar functions. The transactions noted below are in the normal course of business and approved by the Board of Directors in strict adherence to conflict of interest laws and regulations.

Three Months Ended June 30 Six Months Ended June 30

(a) GPM entered into the following transactions with related parties:

	$2020	$2019	$2020	$2019
Bruce Rosenberg	3302	448	7,395	4,964
Greg Duncan		448		951
Joel Thomas	73	448	164	951
Harry Burgess	3302	448	6989	951
Dan Noone	3302	448	6989	951
Craig Parry	3,229		6,824
Peter Mullens		2,241		34,754
Yajian Wang	7,866	17,241	20,821	34,754
Shaun Drake	3,477	6,448	7,017	6,951
Total	$25,048	$28,170	$57,193	$85,227

(i) Bruce Rosenberg is a director of the Company. Fees related to legal services provided by Mr. Rosenberg, director's fees and stock-based compensation. As at June 30, 2020, neither Mr. Rosenberg nor his company were owed any fees (June 30, 2019 nil).

(ii) Director fees and stock-based compensation paid to directors of the Company. For 2020 Directors are receiving Stock based compensation only. No fees are owing to any Director.

(iii) Dan Noone, the Interim Chief Executive Officer ("CEO") from November 2019, the Chairman of board. No CEO fees and only stock-based compensation. No fees owing.

(b) Remuneration of Directors and key management personnel of the Company was as follows:

	Three Months Ended June30,				Six Months Ended June30,
	2020		2019		2020		2019
Total Salaries and Benefits	$10,500	$	20,550	$	26,000	$	70,014
Total Share-Based Payments	14,548		7,620		31,193		15,212

14. Related party balances and transactions continued

(1) Salaries and benefits include director fees for June 30, 2020. The Board of Directors and select officers do not have employment contracts with the Company. Directors were entitled to director fees and stock options for their services up to June 30, 2020. For 2020 Directors are entitled to stock options for their services. Selected officers are entitled to stock options only for their services and other officers are paid a fee.

The above noted transactions are in the normal course of business and are measured at the exchange amount, as agreed to by the parties, and approved by the Board of Directors.

15. Exploration and evaluation expenditures

The Company enters into exploration agreements or permits with other companies or foreign governments pursuant to which it may explore or earn interests in mineral properties by issuing common shares and/or making option or rental payments and/or incurring expenditures in varying amounts by varying dates. Failure by the Company to meet such requirements can result in a reduction or loss of the Company's ownership interests or entitlements under the agreements or permits.

(a) Rory Group

The Company has a 100% interest in the Rory Group consisting of 40 staked claims located in the Yukon Territory, Canada.

(b) Walker Gossan Project

On January 27, 2014, the Company, through its wholly owned subsidiary DPG Resources Australia Pty Limited entered into, an Earn-In/Joint Venture Agreement with Rio Tinto Exploration Pty Limited ("Rio Tinto"), a wholly owned subsidiary of Rio Tinto Limited covering base metal exploration and development rights, in relation to certain granted exploration tenements and tenement applications in McArthur Basin Mining District, Northern Territory, Australia (the "Walker Gossan project").

Rio Tinto and GPM have entered into a definitive Two Stage Earn-In/Joint Venture Agreement granting GPM an initial 51% interest under certain conditions that include:

Stage One

• 1. Payment of Australian Dollar ("AUD") $1,000,000 on signing (paid);
• 1. Minimum expenditure of AUD$2,000,000 within 3 years of effective date (met);
• 1. Combined expenditures of AUD$20,000,000 over a 10-year period; and
• 1. Milestone payments within the combined expenditures as follows:
  • (i) AUD$100,000 upon the grant of licenses to all of the properties;
  • (ii) AUD$1,000,000 upon the completion of the first drill hole on the Walker Gossan project (paid); and
  • (iii)AUD$4,000,000 upon the completion of a resource study that shows an indicated status for minimum 20 million tons of greater than 8% combined lead and zinc, or lead, zinc and silver, within the licensed area or a Decision to Mine being made.

Stage Two

GPM may increase its interest to 75% by completing a Feasibility Study within 3 years of completing Stage One. Rio Tinto may elect to contribute pursuant to its participating share, not contribute and be diluted or convert its interest into a Net Smelter Return (2.5%) royalty. There are rights of first refusal on purchase and sale of interest for both parties at fair market value. GPM will be responsible for all negotiations with the Northern Land Council for consent to issue the exploration license applications and work programs to be conducted by GPM under its sole rights or as operator.

15. Exploration and evaluation expenditures continued

(c) Pasco Gold Property

On September 15, 2014, the Company, through its wholly owned subsidiary Chaska Resources SAC, entered into a definite agreement to purchase 100% interest in the exploration concession known as Pasco Gold 1, which consists of 1000 hectares of land, located in the district of Huachon, Province of Pasco, in the Republic of Peru (the "Purchase").

Subsequent to year-end 2019, the Company has taken the appropriate actions to exit its exploration and evaluation program within Peru. As part of the exit plan, the Company sold all its claims in connection with the Pasco Gold Property (note 18), this closure process expects to finalize in August 2020.

(d) the following is a detailed list of expenditures incurred on the Company's mineral properties:

	Three Months	Ended June 30,	Six MonthsEnded June 30,
	2020	2019	2020	2019
Australian
Northern Territory Grant
Recovery	0
Drilling expense
Consulting	0	9,231	8,368	41,755
General	422	68,699	809	97,622
$	422	$77,930	$9,177	$139,377
Peru
General		-		-
Total Exploration Expenditures$	422	$77,930	$9,177	$139,377

15. Exploration and evaluation expenditures continued

Segmented information

As at June 30, 2020, the Company operates primarily in two reportable geographical segments, being the exploration for minerals in Australia and Peru. Until July 21, 2016 the Company also operated in Canada. The Company maintains a head office in Toronto, Canada.

Six months Ended June 30, 2020

	Canada	Australia	Peru	Total
Revenues	$	$	$	$
Net Income (loss) and Comprehensive Income
(loss)	(147,389)	(9,334)	(10,147)	(165,158)
Three months Ended June 30, 2020
	Canada	Australia	Peru	Total
Revenues	$	$	$	$
Net Income (loss) and Comprehensive Income
(loss)	(39,547)	(6,467)	(6,111)	(52,125)
Six months Ended June 30, 2019
	Canada	Australia	Peru	Total
Revenues	$	$	$	$
Net Income (loss) and Comprehensive Income
(loss)	(102,126)	(203,464)	(13,638)	(319,229)
Three months Ended June 30, 2019
	Canada	Australia	Peru	Total
Revenues	$	$	$	$
Net Income (loss) and Comprehensive Income
(loss)	(61,043)	(105,662)	(9,314)	(176,018)

16. Subsequent events

Global Issues

Subsequent to June 30, 2020, the global outbreak of COVID-19 (coronavirus) has had a significant impact on businesses through the restrictions put in place by the Canadian government regarding travel, business operations, and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID19 outbreak may have on the Company as this will depend on future developments that are highly uncertain, and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease, and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or maybe put, in place by Canada and other countries to fight the virus. While the extent of the impact is unknown, we anticipate this outbreak may cause reduced customer demand, supply chain disruptions, and staff shortages, all of which may negatively impact the Company's business and financial condition.

Pasco Gold Property – Peru

On January 31, 2019, the Company agreed to permanently cease all operations at the Pasco Gold Property and withdraw from Peru. On February 7, 2020, the Company sold all of its Pasco Gold Property claims held to Wayna Mountain Resources S.A.C. for proceeds totalling $700. The closure process will be finalized in August 2020.