Grounded Lithium Corp. - Audit Report / Information 2021

Technical Report

on the

Hook Bay Property

Central Vancouver Island, British Columbia, Canada

Latitude 49° 5.6'N Longitude 124°52.9"W

and UTM (NAD83 - Zone 10) 2,439,7000 N and 362,500 E

1:20,000 TRIM Map-sheets 092F 006 and 092F 016 1:50,000 NTS Map-sheets 092F 02

For:

VAR Resources Corp.

2489 Bellevue Avenue, West Vancouver, B.C., Canada, V7V 1E1

By: 3252 Ganymede Dr. Burnaby, BC, CanadaV3K1A4

Sean P. Butler, P.Geo.

Dated: April 15, 2021

VAR Resources Corp.

Hook Bay Property

I Sean P. Butler, P.Geo., do hereby certify that:

I am a consulting geologist with a residence at 3252 Ganymede Dr., Burnaby, BC, Canada, V3J 1A4;
I am a graduate with a Bachelor of Science degree, in Geological Sciences from the University of British Columbia in 1982;
I am a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia (Member # 19,233);
I have examined the Hook Bay Property on March 21, 2021 which constitutes a Current Inspection of the property as defined by Part 6.2 of NI34-101.
I am independent of the property vendor James Rogers, Longford Capital Corp., the Hook Bay Property and VAR Resources Corp. as defined in Part 1.5 of NI 43-101;
I have practised the geological profession for greater than 35 years since graduation from university. I have worked extensively exploring for both base and precious metals from early-stage programs up to advanced underground exploration and mining;
I have read the definition of "Qualified Person" as set out in Part 1.1 of National Instrument 43-101 and certify that by reason of my education, affiliation with a professional association and previous relevant work experience, I fulfill the requirements to be a "Qualified Person" for the purposes of Nl 43-101;
I am responsible for all of the report titled “Technical Report on the Hook Bay Property Central Vancouver Island, British Columbia, Canada” with the effective date of April 15, 2021 (the "Technical Report");
That as of the effective date of the Technical Report, to the best of my knowledge, information and belief, this Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading;
I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form;
I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.

Dated this 15th day of April, 2021

“signed and sealed”

Signature of Qualified Person

Sean Butler, P.Geo.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

EXECUTIVE SUMMARY

The Hook Bay Property is located just to the northwest of the Alberni Canal, an extension of the Pacific Ocean on Vancouver Island, British Columbia, Canada.

The centre of the Hook Bay claim is approximately at Latitude 49° 5.6'N and Longitude 124°52.9"W. The UTM (NAD83 - Zone 10) coordinates of 2,439,7000 N and 362,500 E are near the centre of the claim as well. The BC Government 1:20,000 TRIM Map-sheets 092F 006 and 092F 016 and the Canadian Government 1:50,000 NTS Map-sheet 092F 02 include the area under the claim.

The property consists of the Hook Bay claim, Record Number 1074273, consisting of about 1,079 hectares, but may be slightly smaller due to First Nations lad in the southwest edge.

This report is prepared by Sean P. Butler, P.Geo. (“ the Author ” or “ SPB ”) for VAR Resources Corp. of West Vancouver, BC (“ VAR ” or “ the Company ”) about the Hook Bay Claim (“ the Property ” or “ the claim ”). The Company changed its name from Canadian International Pharma Corp. in January 2021 (“ CIPC ”). The purpose of this report is to summarize the history, geology and potential economic metal mineralization styles of the Hook Bay Property and document it as a Property of Merit for the purposes of supporting VAR’s application to the TSX Venture Exchange (“ TSXV” ) for listing on the TSXV exchange. The Author is independent of the vendors James Rogers, Longford Capital Corp., the Hook Bay Property and the optionee VAR Resources Corp.

On Sunday, March 21, 2021 the Author, accompanied by the property vendor James Rogers, visited the Hook Bay property. A couple of outcrops were visited within the Hook Bay showing area and a visual review of several sites on the road on approach were noted. The weather was windy with rain and snow in the area of the showings visited. The sites visited were within the grid of the soil samples from the 2020 field work. The primary site visited was the location of the Hook Bay Minfile.

There is an option agreement, dated November 30, 2020, between Longford and Canadian International Pharma Corp. (now renamed to VAR Resources Corp. “ VAR ”). It is an option agreement to acquire a 100% interest on the Hook Bay claim. The terms that need to completed by VAR are:

Within five days of closing date, issue 2.2 million shares to Longford and provide a cash payment of $50,000
Within 30 days of closing date, complete a minimum of $100,000 expenditure on the Property
Within 18 months of the closing date, complete an additional $300,000 expenditure on the Property and issue 500,000 shares to Longford Capital

The first two terms of the agreement have been completed. As part of this agreement, Longford shall be granted a 2% NSR on the Hook Bay claim. VAR may exercise the right to reduce the NSR to 1% at any time prior to commencement of commercial production by making a cash payment of $1,500,000 to Longford.

The Issuer does not currently hold any permits pertaining to exploration on the Property although work which causes no surface disturbance can be completed without permits.

The City of Port Alberni (population 17,678), is 34 kilometres by road from the Hook Bay Property along the Canal Main logging road and a series of local roads.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

This region is characterized by an oceanic or maritime climate, typical of western coastal areas in higher middle latitudes of a continent. Based on available data and knowledge of the general area work can start in April and continue to the end of October and may continue nearly year-round in the lower areas. Yearround drilling operations are possible if suitable road access and snow plowing can be arranged to the drill site.

The following summary is quoted directly from the 2020 report by van der Meer:

“The first documented work on the Hook Bay Property was carried out in 1982 over the Contented Claim Group (consisting of the Contented 1 and Contented 2 claims) held by Mattagami Lake Exploration Ltd. (Mattagami). Noranda Exploration Company, Ltd. (Noranda Exploration), who optioned the Property from Mattagami, carried out a geological mapping and geochemical soil sampling program during which two zones of mineralization were defined and staked as the Contented Claim Group. The first identified area of mineralization, referred to as Zone 1 (Contented 1 showing), comprised several linear shear zones containing pyrrhotite-pyrite-chalcopyrite mineralization with associated silver values in basalt. Samples of disseminations, fracture fillings, veinlets and massive pods of pyrite-pyrrhotite-chalcopyrite in sheared basalts returned values up to 1.3 oz/t Ag and 5.8% Cu. In addition, 550 m east of the Contented 1 showing along road 2510K, samples R-23404 and R-23405 returned values of 1.63% Cu and 2.34% Cu, respectively (Stewart, 1983).

Further work was completed between 2010 and 2014 to advance the understanding of this property.

In 202 Longford Exploration completed a work program that included prospecting, 41 rock grab samples throughout the Property and 280 soil samples over a 25 x 25 m grid spacing. The soil sampling grid covered an approximate 25 m wide shear zone that hosts the Hook Bay 1 showing in the southern portion of the Property. Fourteen stream sediment samples from north and south of the Cook Creek drainage were also collected.

The Hook Bay Property is predominantly underlain by basalt of the Upper Triassic Karmutsen Formation Vancouver Group. The eastern side of the Property has been intruded by the Early to Mid-Jurassic granodiorites of the Island Plutonic Suite. The geology for the Hook Bay Property is shown in Figure 7-5 sourced from the regional geology of Muller and Carson, 1969.

Minimal geological mapping work has been carried out over the Property area; however, a small portion of the historical Contented Claim Group was mapped in detail in 1983 by Noranda Exploration in the northern and central portion of the Hook Bay Property. The predominant lithology reported by Stewart (1983) was described as a dark grey-green basalt which has been variably altered. It was also reported that minor amounts of rhyolite porphyry, granodiorite and basalt lapilli-tuff were also observed on the Property. The basalt showed variable competency and texture due to significant mechanical and chemical alteration in the area. Zones of mechanical shearing have introduced carbonate, ± silicate, ± epidote, ± sulphides resulting in zones of variable composition. Variability within these zones is characterized by competent rocks adjacent to zones of significant shearing and carbonate-rich basalts flanking carbonate-poor basalts, and it is possibly the result of cyclical fluid movements through shear zone conduits. Several 1 to 20 m wide outcrops of rhyolite porphyry intruding the basalt were also observed on the Property; these were often associated with mineralization within an approximate 100 m wide surrounding area. This was observed at the Hook Bay 1 showing and at the northeast of the Property along road 2510. The main, 30 cm wide mineralized lens at the

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Hook Bay 1 showing, trends at 210°, approximately on strike with mineralized veins at 215°, to the north along road 250J.

The Hook Bay Property is located within the Coastal Mountain belt of Vancouver Island, and two styles of mineralization are thought to be possible on the Property: volcanogenic massive sulphide (VMS) and coppergold-molybdenum porphyry style of mineralization.

A search of B.C. MINFILE reveals that there are several copper-rich mineral prospects in the area. The most notable include the Macktush and Nahmint properties.

The Hook Bay project has a long history of exploration, all of it as a preliminary target development type. The work has been quite localized in area and other than the stream sediment sampling has not been completed property wide. In March 2020, Longford Exploration identified multiple narrow, mineralized veins/pods striking between 210° and 348°. The work confirmed the high-grade sampling at the Hook Bay showing in the 2012 and 2014 work. Future work will need to be done later in the season with convenient access into the Contented 1 and 2 showings. Online aerial images (Google Satellite) confirm the development of further logging roads into the area north and west of the Hook Bay showing which should expose further outcrops. This project is still at an early stage and deserves further exploration to determine the potential of this property. Further work is recommended, but there are no assurances of success.

Based on the evaluation of available data and the site visit made by the Author, a multi-phase exploration program for the Hook Bay Property is recommended. A proposed budget is summarized in Table 26-1.

Phase One includes the following program with a total budget of $130,000:

A detailed review of historical data, including a complete digitization of the data from historical work, mapping, and sampling to provide a single detailed layering of data to consolidate and lead future exploration efforts.
Prospecting the recent roads north and west of the Hook Bay showing and the older roads near the Contented showings.
Detailed field mapping focusing on alteration and prospecting as well as systematic surface sampling across the mineral showings to delineate the extent, thickness, and characteristics of any mineralized zones.
Detailed lithological and structural geological mapping over areas of outcrop exposure.
Drainages of the Cook Creek stream sediment sample results for gold and copper show locally anomalous results in four sub-drainages and further detailed sampling is recommended.
Soil sampling in systematic grids (at 50 m to 100 m spacing), should also be completed along the ridgeline spurs and across areas of known mineralization.

Recommendations for a Phase Two program, with a total budget of $1,120,000, are conditional on positive results in Phase 1, and include the following:

Ground and/or airborne geophysics, with specific techniques determined by the Phase 1 results.
Technical data reviews by third-party experts in porphyry copper and VMS target generation that could support a preliminary diamond drilling program.
3,500 metre diamond drill program.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

CONTENTS	CONTENTS	CONTENTS
EXECUTIVE SUMMARY................................................................................................................. 3
2	INTRODUCTION ..................................................................................................................... 9
	2.1	Terms of Reference ........................................................................................................... 9
	2.2	Sources of Information ..................................................................................................... 9
	2.3	QP Personal Inspection of the Property ......................................................................... 9
	2.4	Abbreviations and Units of Measure ............................................................................. 10
3	RELIANCE ON OTHER EXPERTS ...................................................................................... 11
4	PROPERTY DESCRIPTION AND LOCATION .................................................................. 11
	4.1	Location ............................................................................................................................ 11
	4.2	Property Description ...................................................................................................... 12
	4.3	Agreements ...................................................................................................................... 14
	4.4	Mineral Title Maintenance Requirements ..................................................................... 15
	4.5	Permitting ........................................................................................................................ 15
	4.6	Environmental Liabilities ................................................................................................ 15
5	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY .......................................................................................................................... 16
	5.1	Accessibility ...................................................................................................................... 16
	5.2	Climate ............................................................................................................................. 17
	5.3	Local Resources ............................................................................................................... 18
	5.4	Infrastructure ................................................................................................................... 18
	5.5	Physiography .................................................................................................................... 18
6	HISTORY ................................................................................................................................. 19
	6.1	Pre-2020 Historical Exploration ..................................................................................... 19
	6.2	2020 Field Program ......................................................................................................... 25
7	GEOLOGICAL SETTING AND MINERALISATION ......................................................... 27
	7.1	Regional Geology ............................................................................................................. 27
	7.2	Local Geology .................................................................................................................. 30
	7.2.1	Hook Bay Property Rock Descriptions ....................................................................................................... 32
	7.3	Local Mineralization ........................................................................................................ 33
8	DEPOSIT TYPES .................................................................................................................... 34
	8.1	Volcanogenic Massive Sulphide Style Deposit .............................................................. 34
	8.2	Copper-Gold-Molybdenum Porphyry Style Deposit .................................................... 35
9	EXPLORATION...................................................................................................................... 37
10 DRILLING ................................................................................................................................ 37

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

11 SAMPLE PREPARATION, ANALYSES AND SECURITY ................................................. 37 12 DATA VERIFICATION .......................................................................................................... 39 13 MINERAL PROCESSING AND METALLURGICAL TESTING ........................................ 40 14 MINERAL RESOURCE ESTIMATES .................................................................................... 40 23 ADJACENT PROPERTIES ..................................................................................................... 40 24 OTHER RELEVANT DATA AND INFORMATION ........................................................... 41 25 INTERPRETATION AND CONCLUSIONS ....................................................................... 41 26 RECOMMENDATIONS ......................................................................................................... 42 27 REFERENCES .......................................................................................................................... 43

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

FIGURES & TABLES

Table of Figures Figure 4-1 Location of Hook Bay Property in BC ........................................................................................................... 11 Figure 4-2 Hook Bay Claim Map .......................................................................................................................................... 13 Figure 4-3 Location of First Nations interests near Hook Bay .................................................................................... 14 Figure 5-1 Location and Access to Hook Bay .................................................................................................................. 16 Figure 5-2 Climate summary at Port Alberni - Cox Lake .............................................................................................. 17 Figure 6-1 Location of the 1982 Exploration at Hook Bay ........................................................................................... 19 Figure 6-2 Location of Historical Exploration at Hook Bay .......................................................................................... 20 Figure 6-3 2020 Hook Bay Property Rock Sample Locations and Copper in Rock Results (ppm) ..................... 25 Figure 7-1 Regional Geology ................................................................................................................................................. 27 Figure 7-2 Age and Descriptions of major Geological Units on Vancouver Island ................................................. 28 Figure 7-3 Regional Geophysics – Residual Total Field Geomagnetics ...................................................................... 29 Figure 7-4 Regional Geophysics – First Vertical Derivative Geomagnetics ............................................................... 30 Figure 7-5 Local Geology ....................................................................................................................................................... 31 Figure 8-1 Schematic Cross Sections of Various VMS Deposit Types ....................................................................... 35 Figure 8-2 Porphyry Copper Deposit Type Model Cross Section .............................................................................. 36

Table of Tables Table 2-1 List of Abbreviations ............................................................................................................................................ 10 Table 4-1 Claim Summary ..................................................................................................................................................... 12 Table 5-1 Distance to Hook Bay, population and descriptions of nearby Service Centre Communities .......... 16 Table 6-1 Pre-2020 History of Exploration on and near the Hook Bay Property .................................................. 22 Table 11-1 Analytical Methods used in 2020 .................................................................................................................... 39 Table 23-1 Macktush Property Historical Resource Estimates by Vein/Zone .......................................................... 40 Table 26-1 Proposed Budget ................................................................................................................................................ 43

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

2 INTRODUCTION

The chapter numbers in this report are designated after the major headings of the NI 43-101-F1 report format. The Section headings (15 to 22) for advanced programs have been omitted.

2.1 Terms of Reference

The Author is independent of the vendors James Rogers, Longford Capital Corp., the Hook Bay Property and the optionee VAR Resources Corp.

2.2 Sources of Information

The sources of information are generally public documents found on the internet. Most are government related documents prepared by professionals including Assessment Reports, prepared by professionals that document past exploration work on mining claims in British Columbia. There are several government geological reports of the regional geological bedrock in the area as well as topographic maps. A number of general reports of deposit types and similar subjects are summarized and then noted in the Reference section of this report. The report describing the 2020 work program, as recorded in van der Meer, 2020, was provided by Longford Exploration.

2.3 QP Personal Inspection of the Property

The sites visited included outcrops of veinlets containing chalcopyrite and pyrite along with malachite staining. There is a clear hydrothermal alteration system containing copper noted on the visit by the Author. The fractures are locally covered in epidote and chlorite in numerous areas indicative of a probable propylitic alteration zone in the area visited.

No samples were collected. The project is at an early exploration stage and there is very little rock sampling to compare data to. As well the Author saw copper bearing minerals on site.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

2.4 Abbreviations and Units of Measure

All dollars are reported in Canadian Dollars unless noted otherwise. Units are metric unless noted. The following table is a list of abbreviations frequently used by the Author.

Table 2-1 List of Abbreviations

Abbreviation	Description	Abbreviation	Description
AA	atomic absorption	m	metre
Ag	silver	m2	square metre
aka	also known as	m3	cubic metre
AMSL	above mean sea level	Ma	millionyears ago
Au	gold	mm	millimetre
AuEq	gold equivalentgrade	mm2	square millimetre
BC	British Columbia	mm3	cubic millimetre
BCGS	British Columbia Geological Survey	Mo	Molybdenum
CAD$	Canadian dollar	Mt	million tonnes
cm	centimetre	MTOnline	BC Government Mineral Titles Online website
cm2	square centimetre	m.y.	millionyears
cm3	cubic centimetre	NAD	North American Datum
cp	chalcopyrite	NI 43-101	National Instrument 43-101
CSE	Canadian Securities Exchange	opt	ouncesper short ton
Cu	copper	oz	troyounce(31.1035grams)
°C	degree Celsius	Pb	lead
°F	degree Fahrenheit	ppb	partsper billion
DDH	diamond drill hole	ppm	partsper million
ft	feet	py	pyrite
ft2	square feet	QA	QualityAssurance
ft3	cubic feet	QC	QualityControl
FSR	Forest Service Road	qz	quartz
g	gram	RC	reverse circulation drilling
GPS	Global PositioningSystem	RQD	rockqualitydescription
g/t	gramsper tonne	Sb	antimony
ha	hectare	SEDAR	System for Electronic Document Analysis and Retrieval
ICP	inductivelycoupledplasma	SG	specificgravity
IPO	Initial Public Offering	t	tonne(1,000 kgor 2,204.6 lbs)
kg	kilogram	US$	United States dollar
km	kilometre	Zn	zinc
km2	square kilometre

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

3 RELIANCE ON OTHER EXPERTS

The Author has not relied on other experts in the preparation of this report. The author has received some data, primarily regarding the 2020 field that was provided by the property vendor.

4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location

The Hook Bay Property is located just to the northwest of the Alberni Canal, an extension of the Pacific Ocean on Vancouver Island, British Columbia, Canada.

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Figure 4-1 Location of Hook Bay Property in BC

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

4.2 Property Description

Based on a title search by the Author on February 12, 2021 at BC MTOnline (https://www.mtonline.gov.bc.ca/mtov/home.do) and summarized in Table 4-1 the claim is noted as:

Table 4-1 Claim Summary

Claim Name	Record Number	Area (hectares)	Record Date	Expiry Date	Status	Registered Owner
HOOK BAY	1074273	1,078.85	2020/JAN/31	2029/JAN/31	Protected	James Rogers

The Author has not verified the legal aspects of the ownership of the mineral claims, surface land holdings nor any other rights granted by the Government of British Columbia beyond what is noted at BC MTOnline. Claims are defined by a pre-defined map grid of rectangular “cells” that mark the boundaries of the mineral claims with multiple adjoining cells possible to make up a claim.

The mineral claim gives the holder the right to the sub-surface mineral rights but no surface rights or land. The Author is not aware of any known privately-owned surface land over the Hook Bay claim except for that area of the Ucluelet First Nations described below. There is private land and the Chuchakook 4 Indian Reserve on the shore of Alberni Inlet. Land for mining operations is available to lease from the British Columbia Government for mining companies to develop a mine after significant exploration and mine permitting is substantially complete.

The claim area is noted as 1,079 hectares, but may be slightly smaller as seen with the location and shape depicted in Figure 4-2, noting the slice of pink in the southwest corner.

There are no parks or Indian Reserves within the Hook Bay Property but the nearby Chuchakook 4 Indian Reserve is on the coast near the delta of Cook Creek (Figure 4-3). A slice of land in the southerly edge of the Hook Bay claim, in the Nahmint River Valley, is overlain by the Ucluelet First Nation Treaty Settlement Land, which the Author understands includes surface and subsurface rights. About two thirds of the southerly portion of the Hook Bay claim is within an area which the Maa-nulth First Nations, which includes the Ucluelet First Nation, has a role as described in the treaty related to economic activities, governance activities and cultural activities. The Author has not fully verified the roles of the Maa-nulth First Nations on this treaty land but it does include the harvesting of animals, fish and birds, limited by measures necessary for conservation, public health or public safety, but the description implies further roles including Consultation on First Nations interests. There are at least two other First Nations with an interest in this area that may also have to be consulted including the Nuu-chah-nulth Tribal Council and the Hupacasath First Nation

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

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Source: Longford Exploration, 2020
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Figure 4-2 Hook Bay Claim Map

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

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Figure 4-3 Location of First Nations interests near Hook Bay

4.3 Agreements

There are two agreements on the Hook Bay Property (“ the Property ”). The first is between the claim owner James Rogers and Longford Capital Corp. (“ Longford ”). This agreement allows Mr. Rogers to act as a trustee for Longford in the management of the Hook Bay claim with ownership reverting to Longford Capital.

The second agreement, dated November 30, 2020, is between Longford and Canadian International Pharma Corp. (now renamed to VAR Resources Corp. “ VAR ”). It is an option agreement to acquire a 100% interest on the Hook Bay claim. The terms that need to completed by VAR are:

Within five days of closing date, issue 2.2 million shares to Longford and provide a cash payment of $50,000
Within 30 days of closing date, complete a minimum of $100,000 expenditure on the Property
Within 18 months of the closing date, complete an additional $300,000 expenditure on the Property and issue 500,000 shares to Longford Capital

The first two terms of the agreement have been completed.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

As part of this agreement, Longford shall be granted a 2% NSR on the Hook Bay claim following commencement of commercial production. VAR may exercise the right to reduce the NSR to 1% at any time prior to commencement of commercial production by making a cash payment of $1,500,000 to Longford.

4.4 Mineral Title Maintenance Requirements

In British Columbia mineral claim title is maintained by the dollar value of completed valid mineral exploration on the claims as reported in an Assessment Report. Exploration work reported in such reports become part of the public record for future use by all. Historical Assessment Reports were accessed by the Author in the writing of this report. The current Assessment Work (annual exploration work cost) requirements to maintain mineral title holdings in British Columbia are reflected below:

$5.00 per hectare for anniversary years 1 and 2;
$10.00 per hectare for anniversary years 3 and 4;
$15.00 per hectare for anniversary years 5 and 6; and
$20.00 per hectare for subsequent anniversary years
Work can only be filed up to a maximum of ten years title maintenance into the future

Noting the claim expiry date in 2029 the Hook Bay claim will require about $21,580 per year of documented exploration work to maintain title ownership.

Claims can be amended to add or drop claim cells to change the total property area and thus changing the annual assessment work costs. The Payment Instead of Exploration and Development work (“PIED”) rate has been set at double the value of the corresponding Assessment Work requirement as an alternative title maintenance option. PIED is a cash payment to the Government of British Columbia.

4.5 Permitting

To do any exploration that involves disturbance to the surface or cutting of merchantable timber, a permit is required. A Notice of Work (“ NOW ”) must be submitted to the British Columbia Ministry of Energy and Mines, Department Responsible for Core Review to have the permits issued. All Notice of Work Applications are available exclusively through FrontCounter BC’s e-Application System. Any planned mechanical surface disturbance will also involve a Consultation with the local First Nations group(s) who claim an interest in this area before the permits are released.

A NOW is not required for prospecting with hand tools, geological/geochemical surveys, airborne geophysical surveys, ground geophysics without exposed electrodes, hand trenching, and the establishment of grids.

The Issuer does not currently hold any permits pertaining to exploration on the Property.

4.6 Environmental Liabilities

The Author is not aware of any environmental liabilities related to the Hook Bay claim.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

Table 5-1 Distance to Hook Bay, population and descriptions of nearby Service Centre Communities

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Location Road distance to Hook
Description
(population) Bay (km)
Nearest town with port, hotels,
Port Alberni
restaurants, fuel, personnel and 34
(17, 678)
other services
Nanaimo
Port, mining services centre 115
(90,505)
Victoria
Nearest international airport 276
(85,795)
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Source: Longford Exploration, 2020
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Figure 5-1 Location and Access to Hook Bay

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Access from Port Alberni to the Hook Bay Property is by driving northwest on the Pacific Rim Highway (Highway 4) for three kilometres, turning left onto Tsuma-as Drive, and continuing south and onto the Canal Main Forest Service Road for about 30 kilometres. Alternative road access through the Nahmint Valley, south of the Hook Bay claim, is available out to the south of Sproat Lake, but this is a much longer drive to Port Alberni than along the Canal Main road.

A logging road, just beyond Cook Creek, leads up into the centre of the Hook Bay claim. An extensive network of unmaintained recent and older deactivated logging roads offers access to much of the claim.

5.2 Climate

This region is characterized by an oceanic or maritime climate, typical of western coastal areas in higher middle latitudes of a continent. This type of climate generally produces cool summers (relative to its continental mid-latitude counterparts) and mild winters with significant annual rainfall, and few extremes of temperature. The nearest active weather station to the Property is the Port Alberni-Cox Lake weather station, 34 kilometres northeast of the Hook Bay Property.

Average daily temperatures in the summer range from 15 to 18 °C, and 3 to 6 °C in the winter (Figure 5-2). The total average annual rainfall for the Port Alberni area is 2,115 mm with the most significant amount of precipitation occurring between October and March. Spring and summer months are considerably drier, providing ideal conditions for the entire exploration season.

Based on available data and knowledge of the general area work can start in April and continue to the end of October and may continue nearly year-round in the lower areas. Year-round drilling operations are possible if suitable road access and snow plowing can be arranged to the drill site.

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Figure 5-2 Climate summary at Port Alberni - Cox Lake

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

5.3 Local Resources

Labour is available in the City of Port Alberni (population 17,678). The city is 34 kilometres by road from the Hook Bay Property and offers year-round charter and scheduled fixed -wing and charter rotary air service, RCMP detachment, hospital, ambulance, fuel, lodging, restaurants, mechanical service and equipment. The higher elevations of the claim have limited 3G cellular service coverage.

5.4 Infrastructure

There is no developed infrastructure on the Property other than previously established forestry service roads that are infrequently maintained. Google Satellite views confirm newer logging roads are being developed and added to within the property. This is for cutting second or third growth forests and adds to the existing decommissioned road network.

There are four hydroelectric power systems, with six generating stations located on Vancouver Island with a total capacity of 459 megawatts (MW) plus several small run of river power providers. There are multiple lines connecting Vancouver Island the western North America power grid, notably across Texada Island to north of Qualicum Beach and west from Tsawwassen to the Cowichan Valley. The nearest powerline is located next to Highway 4, near Port Alberni.

Any potential areas for mine infrastructure, such as mill sites and tailings disposal sites, have not been considered in the context of this report.

5.5 Physiography

The Hook Bay Property lies northwest of Mount Spencer on the western side of Alberni Inlet on Vancouver Island. The Property is generally mountainous with elevations ranging from about 200 to 1,020 metres. Above sea level on the Hook Bay claim. The Property is divided by Cook Creek, a northwest-trending, V- shaped stream valley that drains to the east into Alberni Inlet. The mountain ridge north of Cook Creek valley rises to 1,018 m and, to the south of Cook Creek, the ridge rises to 1,007 m. Mountain slopes range between 20 degrees to subvertical, with the steepest slopes occurring in the northern portion of the claim block on the northeast facing slope, with numerous impassable cliffs throughout the Property.

Numerous seasonal tributaries drain the valley into Cook Creek which then drains into Alberni Inlet, to the north of Nahmint Bay. Most tributaries have steep gradients resulting in poor sediment deposition; therefore, silt and heavy mineral concentrate sampling are only marginally effective.

The vegetation in the area is coastal forest with mixed cedar and Douglas Fir in the lower valleys and a mixed Hemlock and Douglas Fir with various broadleaf vegetation in disturbed areas. There is long history of logging in the area of and on the Property.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

6 HISTORY

6.1 Pre-2020 Historical Exploration

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Source: Longford Exploration, 2020

Figure 6-1 Location of the 1982 Exploration at Hook Bay

The following summary is quoted directly from the 2020 report by van der Meer:

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

up to 1.3 oz/t Ag and 5.8% Cu. In addition, 550 m east of the Contented 1 showing along road 2510K, samples R-23404 and R-23405 returned values of 1.63% Cu and 2.34% Cu, respectively (Stewart, 1983).

In 2010, new forestry roads were constructed along the steep ridge on the west side of the claims allowing greater access to the south end of the Hook Bay Property. In the fall of the same year, Dave Preedy discovered quartz veinlets and associated quartz-carbonate “blowouts” of chalcopyrite, pyrite and bornite which were exposed in veinlets through altered basalt pyroclastics along a recently completed road (HB100). These were described as very narrow to hairline veinlets which appeared to pinch and swell into pods.

In December 2010, Del Ferguson (Ferguson) staked the Hookie Claim (near the Hook Bay 1 showing) and the Cookie Claim (closer to Cook Creek), which comprised the Hook Bay Property. Road construction continued into 2011 resulting in the discovery of local malachite stains by Ferguson along a newly constructed road.

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Source: modified from Longford Exploration, 2020

Figure 6-2 Location of Historical Exploration at Hook Bay

Between 2011 and 2014, Ferguson commissioned Aztec Geoscience Inc. (Aztec Geoscience) to carry out various exploration work.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

In June 2012, Ferguson added claim DCS3 to the southwestern edge of the Hook Bay Property (Ferguson, 2013).

In May 2013, Aztec Geoscience carried out a geological mapping and prospecting survey over the DCS3 claim and collected 10 rock samples. This survey confirmed that the claim was exclusively underlain by the Karmutsen Formation amygdaloidal basalts. Results from the rock grab sample of quartz-epidote-hosted disseminated pyrite mineralization (#1615110) showed copper values of 65.2 ppm; results from the heavy mineral stream sediment sample (#1615111) showed copper values of 124 ppm (Ferguson, 2013).

In July 2013, Aztec Geoscience followed up with prospecting work along old, deactivated roads throughout the northern portion of the claims. This program revealed a zone of strong copper mineralization over a 185 m length on road 2510K with apparent indications of an east-west striking zone perpendicular to the road heading. Note: In 1983, samples R-23404 and R-23405 returned 1.63% Cu and 2.34% Cu, respectively (Stewart, 1983). In 2013, four of the nine collected grab samples returned values between 2,572 to 8,195 ppm Cu with trace values of zinc and gold (Ferguson, 2014). “

Table 6-1, modified from van der Meer, 2020, summarizes the history of work completed on or near the Hook Bay Property. The 1982 historical work program is summarized in Figure 6-1. Figure 6-2 outlines the exploration footprint of historical work reported within the BC Assessment Report Database. (https://aris.empr.gov.bc.ca/)

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Table 6-1 Pre-2020 History of Exploration on and near the Hook Bay Property

Year	Title Holder	Claim	Within present Hook Bay	Operator	Summary	Comments
1983	Mattagami Lake Exploration Ltd.	Contented	Yes	Noranda Exploration Company, Ltd.	1 HMC sample, 169 soil samples, 41 stream sediments samples, 35 rock samples	In 1982, sampling defined two zones of mineralization known as Contented Claim Group. Zone 1 comprises several linear shear zones containing pyrrhotite-pyrite-chalcopyrite mineralization with associated silver values in basalt. Zone 2 comprises a 10 cm wide pyrrhotite-pyrite-chalcopyrite vein that appeared to follow a basalt lapilli-tuff contact. Soil geochemistry was poor over Zone 1, indicating sporadic nature; several strong copper anomalies (up to 960 ppm) were defined in Zone 2.
2006	SYMC Resources Ltd.	Macktush	No	SYMC Resources Ltd.	DIGHEM EM/Resistivity/Magnetic/Radiometric over 1,661 line-km	Very few anomalies in the survey block are typical of massive sulphide responses. However, the survey was successful in locating numerous weak or broad responses that may warrant additional work. Most anomalies in the area are moderately weak and poorly defined. Many have been attributed to conductive overburden or deep weathering, although several are associated with magnetite-rich rock units. The weak magnetite-hosted responses could also reflect skarn-type mineralization.
2007	SYMC Resources Ltd.	Macktush	No	SYMC Resources Ltd.	11 diamond drill holes (total depth 982 m) and detailed mapping and chip sampling prior to drilling, 288 rock samples, 66 soil samples, 26 stream sediment samples	Rocks are variably block-faulted and represent ideal settings for clustered copper-gold-silver-molybdenum porphyry, skarn and epithermal vein deposits. Four of five clusters of combined magnetic, electromagnetic and radiometric anomalies were prospected and tested using combinations of rock, soil and stream moss mat sampling, with significant new copper-silver-gold mineralization discovered in outcrop at five locations in two clusters, Rex and Cous. Significant copper-gold-silver mineralization was in a float sample from the West cluster, and no significant values were obtained from the Macktush cluster.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Year	Title Holder	Claim	Within present Hook Bay	Operator	Summary	Comments
2011	G4G Resources Ltd	Macktush	No	G4G Resources Ltd.	soil and rock samples	All grab samples were anomalously high in copper. Highest results were from Samples G4G-001, G4G-002 and G4G-003 and ranged from 4.02% Cu to 6.76% Cu. All three were obtained from chalcopyrite-rich quartz veins previously mined by small adits. The shear zone sample returned much lower values of copper and other metals. Best soil sample values were 1,350 ppm Cu from sample F-40 and 0.8 ppm Ag from sample F-26. Copper was by far the most elevated metal in the soil sample results.
2012	Nahminto Resources Ltd.	Macktush	No	Nahminto Resources Ltd.	mapping, thermal analysis, modelling	A digital elevation model, (DEM) covering the entire area of interest (AOI) and beyond was generated to an elevation accuracy of ±10 m vertical located within a 7.5 m radius area. This greatly improves elevation and spatial accuracy of existing topographic data, currently available at 1:50 0000 scale, at ±25 m vertical and located within a 30 m radius area.
2012	Ferguson, D.W.	Hook Bay	Yes	Aztec Geoscience Inc.	3 rock samples	On the west side of the zone, a ~30 cm wide vein (lens) of massive chalcopyrite-pyrite-pyrrhotite appeared to follow a similar strike. A grab sample of this lens (DD-1) reported assays of 5.995% Cu and trace gold and silver. At the north end of the ridge (northeast of long pond 0362974/5438272), a grab sample was obtained from a 20 cm wide oxidized zone (060°/90°) in basalt containing quartz-carbonate veining and disseminated pyrite-chalcopyrite. This sample (DD-2) showed 393.3 ppm Cu and very trace gold and silver.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Year	Title Holder	Claim	Within present Hook Bay	Operator	Summary	Comments
2013	Ferguson, D.W.	Hook Bay	Yes	Aztec Geoscience Inc.	35 rock samples & thin section descriptions, 6 stream samples, 303 soil samples, 1:5000 scale mapping	Rock grab sample of quartz-epidote-hosted, disseminated pyrite mineralization (#1615110) showed copper values of 65.2 ppm Cu. Heavy mineral stream sediment sample (#1615111) showed copper values of 124 ppm Cu.
2014	Ferguson, D.W.	Hook Bay	Yes	Aztec Geoscience Inc.	9 rock samples	Strong copper mineralization found over a 185 m length of road 2510K, with indications of an east-west-striking zone perpendicular to the road heading. Four of the nine samples taken in 2013 ranged from 2,572 to 8,195 ppm Cu. Two other areas ~200 m apart, 800 m south of the road 2510K showing, produced copper values of 8,852 and 1,090 ppm Cu.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

6.2 2020 Field Program

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----- Start of picture text -----

Source: Longford Exploration, 2020
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Figure 6-3 2020 Hook Bay Property Rock Sample Locations and Copper in Rock Results (ppm)

The following summary is quoted directly from the 2020 report by van der Meer who was part of the report

crew:

“Longford Exploration Services Ltd. (Longford Exploration) mobilized a crew of four from Vancouver, B.C. on March 11, 2020 and completed a 12-day geological mapping, prospecting, and surface sampling program. The field program ran from March 11 to 22, 2020. The crew was dispatched daily from the nearest town of Port Alberni. The Property was accessed by driving 45 minutes along the Canal Main road and taking several westward-branching logging roads to access the Property.

The 2020 field program set out to validate historical sample grades, test Property access, and understand the mineralization pathways within the Karmutsen basalts relating to the intrusive granodiorite of the Island Plutonic Suite.

Several historical copper showings are known to exist on the Hook Bay Property; however, only the

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Hook Bay 1 and Hook Bay 2 showings were prospected during this field program. Due to the poor conditions of deactivated/unmaintained logging roads, and seasonal snow at elevation, the Contented 1 showing was not visited. The Longford Exploration crew reached the Contented 2 showing area late in the day, and only one rock sample was collected from unmineralized wall rock at this location.

Results Overview

Forty-one rock grab samples were collected throughout the Property. Two hundred and eighty soil samples were collected over a 25 x 25 m grid spacing. The soil sampling grid covered an approximate 25 m wide shear zone that hosts the Hook Bay 1 showing in the southern portion of the Property. Fourteen stream sediment samples from north and south of the Cook Creek drainage were also collected.

As a first pass exploration program, Longford Exploration identified multiple narrow, mineralized veins/pods striking between 210° and 348°. Rock samples taken from the Hook Bay 1 showing confirmed the previous high-grade samples from Aztec Geoscience’s 2012 and 2014 programs, but the historical grab sample results from Noranda Exploration’s 1982 Contented 1 and Contented 2 showings still require verification. Stream sediment samples taken directly below the Contented 2 showing indicate a strong source of copper and silver (up to 164 g/t Ag); these are in line with Noranda Exploration’s 1983 findings from the 600 m outcrop located directly above. The stream sediment samples collected from the northern drainages are generally weak in copper; this is thought to be due to significant slope failure and burial upstream from the sample collection site.

The 2020 field program established new mineralized areas, namely sample 3294556 (40 m south of Hook Bay 1 showing) and samples 3294582 and 3294583 (470 to 650 m southeast of Hook Bay 1 showing). Elevated copper is present in soil across the Hook Bay 1 showing, trending along a northeast-southwest shear. It should be noted that many of these soil horizons were poorly developed, and, therefore, the copper in soil may be higher than that recorded. A strong anomaly, with soil samples up to 349 ppm Cu, exists directly south of the Hook Bay 1 showing. These samples may be contaminated through fall-out of boulders along the road cut; however, given the recovered grade from rock sample 3294556 in the same area, it is likely that the anomaly indicates a continuation of sub-surface mineralization.

The 2020 field program returned significantly higher grades than had been previously sampled along road 250J in 2014. Three rock samples (3294560, 3294564 and 3294559) assayed 2.12% Cu, 5.53% Cu and 7.41% Cu, respectively. It should also be noted that two of these samples returned gold grades of 0.47 g/t Au and 0.30 g/t Au, indicating the potential for the Property to host gold mineralization, as seen within the Macktush and Nahmint properties to the north and south, respectively. Given these results, Longford Exploration declared this new location to be the “Hook Bay 2 showing” in March 2020.

Rock Sample Results

Forty-one rock grab samples were collected throughout the Property.”

The locations and copper analysis result ranges are shown in Figure 6-3.

There has not been a mineral resource estimate developed on the Property and the Author is not aware of any historical mineral production.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

7

Much of this section is sourced from van der Meer, 2020.

7.1 Regional Geology

Vancouver Island is located within the Insular Superterrane of Western British Columbia, an amalgamation of the Wrangellia Terrane and the Alexander Terrane that eventually accreted to North America between the mid-Jurassic and mid-Cretaceous. This was followed by the accretion of the Pacific Terrane and the Crescent Terrane during the mid-Tertiary time-period. The Hook Bay Property is situated in the southern portion of Vancouver Island and is underlain by rock assemblages of the allochthonous Wrangellia Terrane.

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Source: Longford Exploration, 2020 after Muller and Carson, 1969

Figure 7-1 Regional Geology

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

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Source: Muller et al., 1974; Nixon, 2011

Figure 7-2 Age and Descriptions of major Geological Units on Vancouver Island

The Wrangellia Terrane extends discontinuously north of Vancouver Island through the Queen Charlotte Islands towards central Alaska and is characterized by rocks of the Upper Palaeozoic to Lower Mesozoic. In the late Carboniferous Wrangellia collided and amalgamated with the Alexander Terrane in Alaska to form the Insular Superterrane and subsequently accreted to the inboard terranes of the Coast and Intermontane belts as late as the mid-Cretaceous, or as early as the mid-Jurassic (Nixon et al., 2006). See Figure 7-1 for a map of the regional geology in the area and Figure 7-2 for the major geological units and age relations.

Prior to its accretion, Wrangellia comprised the Palaeozoic Sicker and Buttle Lake Groups and the Middle Triassic Karmutsen Formation. The Sicker and Buttle Lake groups are composed of Devonian to early Permian island-arc volcanic, volcaniclastic, and sedimentary rocks which are known to host VMS deposits,

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

such as Myra Falls. The Karmutsen Formation is an approximately 6,000 m thick oceanic plateau which conformably overlies the Sicker and Buttle Lake groups; it is composed of tholeiitic flood basalts, minor pillow basalts, pillow breccia and tuff as well as inter-volcanic limestone which underlie approximately 50% of Vancouver Island (Nixon et al., 2006). Conformably overlying the Karmutsen Formation is a shallow-water carbonate layer known as the Quatsino Formation. The Quatsino Formation is composed of massive to bedded bioclastic limestone which formed during the waning stages of the Karmutsen volcanism and associated subsidence. Continued sedimentation and deeper water resulted in the deposition of the impure limestone and siliciclastic rocks of the Parsons Bay Formation (Nixon et al. 2006).

A period of quiescence followed by a renewed phase of island-arc magmatism and sedimentation produced the volcanic, volcaniclastic and epiclastic strata of the Bonanza Group, along with the coeval intrusions of the Island Plutonic Suite (Nixon et al., 2006). Muller and Carson, 1969 note the presence of Tertiary age intrusive and volcanic rocks in small intrusive bodies, dykes and flows across the 092F Alberni map sheet. These are the local age equivalent units of the feeder zones and volcanic rocks of the Alert Bay volcanic rocks of northern Vancouver Island noted in Figure 7-2.

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Source: Longford Exploration, 2020

Figure 7-3 Regional Geophysics – Residual Total Field Geomagnetics

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

The regional airborne geophysics is shown in Figure 7-3 and Figure 7-4. It shows that the magnetics of the local basalt seems to more magnetic and locally the intrusive rocks have a lower magnetic signature suggesting a different origin of the intrusive rocks locally than regionally.

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Source: Longford Exploration, 2020

Figure 7-4 Regional Geophysics – First Vertical Derivative Geomagnetics

7.2 Local Geology

The Hook Bay Property is predominantly underlain by basalt of the Upper Triassic Karmutsen Formation Vancouver Group. The eastern side of the Property has been intruded by the Early to Mid-Jurassic granodiorites of the Island Plutonic Suite. There is an isotopic age date just to the east of the Property which is dated at 39 ± 8 million years ago in the intrusive rocks (Currie and Grist, 1996), that may be related to a Tertiary aged dyke or a reset age due to Tertiary metamorphism. The geology for the Hook Bay Property is shown in Figure 7-5 sourced from the regional geology of Muller and Carson, 1969.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

described as a dark grey-green basalt which has been variably altered. It was also reported that minor amounts of rhyolite porphyry, granodiorite and basalt lapilli-tuff were also observed on the Property. The basalt showed variable competency and texture due to significant mechanical and chemical alteration in the area. Zones of mechanical shearing have introduced carbonate, ± silicate, ± epidote, ± sulphides resulting in zones of variable composition. Variability within these zones is characterized by competent rocks adjacent to zones of significant shearing and carbonate-rich basalts flanking carbonate-poor basalts, and it is possibly the result of cyclical fluid movements through shear zone conduits. Several 1 to 20 m wide outcrops of rhyolite porphyry intruding the basalt were also observed on the Property; these were often associated with mineralization within an approximate 100 m wide surrounding area. This was observed at the Hook Bay 1 showing and at the northeast of the Property along road 2510. The main, 30 cm wide mineralized lens at the Hook Bay 1 showing, trends at 210°, approximately on strike with mineralized veins at 215°, to the north along road 250J.

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Modified from: Longford Exploration, 2020 after Muller and Carson, 1969

Figure 7-5 Local Geology

Prior to 2020, the southernmost portion of the Hook Bay Property had not been extensively explored. A 2011 prospecting program by Aztec Geoscience reported variable rock types in the area, including volcanic agglomerates, lapilli-tuffs, porphyritic dykes, massive basalts and highly sheared and oxidized basalts. Minerals

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

such as pyrite, pyrrhotite and chalcopyrite were reported as disseminations and stringers in thin calcitequartz-epidote veinlets and fracture fillings and shears hosted in the Karmutsen basalt. During the 2020 field program, Longford Exploration noted several epithermal quartz-epidote veins located in the southwest of the Property along the Hook Bay road 1000. These veins follow a strike between 180° and 200° dipping subvertically to the west. A minor number of brecciated and argillic altered epithermal veins were additionally observed in this area.

Several 5 to 15 m wide felsic intrusions (rhyolite porphyry and granodiorite) are present in the eastern section of the Property. Many of these intrusions show weak-to-moderate sericite alteration, in addition to bleaching and the inclusion of sheeted quartz-carbonate-epidote stockwork assemblages (1 to 2 mm wide stringers).

Numerous well-defined shears ranging in width from 0.1 to 3 m were also identified on the Property; the orientation of these structures ranged between a strike of 110° and 120° with dips ranging between 70° and 90° SE (Stewart, 1983). Stewart also reported that the majority of major shears occurred over a 40 m interval, where 12 shears were mapped along road 2510 in the northeast of the Property.

7.2.1 Hook Bay Property Rock Descriptions

The following rock descriptions were reported from Stewart (1983) during the Noranda Exploration program on the Contented 1 and Contented 2 showings:

Basalt

Dark grey-green, weathers medium grey-green and rust brown. Very fine to fine grained with few minerals discernible. Epidote occurs as fracture fillings and crystal aggregates throughout. Outcrops exhibit blocky to tabular fracture patterns. The basalt unit forms resistant well-defined outcroppings across the Property, which are variable because of mechanical and chemical alteration.

a) Recrystallized Calcareous Basalt Dark grey-green, weathers light tan to grey-brown. Abundant calcite in matrix. Unit very well-lithified. Evidence of recrystallization includes presence of well-defined, fine-grained subhedral biotite, hornblende, and plagioclase crystals in addition to distinct flow bands and separation of mafic/felsic components.

b) Sheared-Altered Basalt Dark grey-green, weathers light to medium grey, brown, rust, and pale. Highly fractured, crumbly. More intensely sheared areas are typically dark brown, recessive, and friable, intensely fractured with well-developed slickenside and very lustrous sheared surfaces. Many minerals are unrecognizable in hand specimen. Calcite veining and salvage alteration varies from zone to zone with up to 10% by volume in some areas. Localized mineralization is generally associated with the shear zones and consists of pyrite, pyrrhotite and chalcopyrite as fine-grained disseminations, fracture fillings, veinlets, and pods of massive sulphides.

c) Calcareous Basalt Dark grey, weathers rusty brown. Fine-grained, massive, resistant but variable sheared. Calcite to approximately 15% as very fine-grained matrix material, fracture fillings and veinlets. Pyrite and chalcopyrite to 5% combined typically associated with calcite.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Rhyolite Porphyry

Light greenish-grey, weathers white and tan. Very resistant and highly siliceous with sharp conchoidal fracture patterns. Mafic mineralogy comprises 15 to 20% of rocks and includes biotite (5%) as very finegrained, anhedral crystal aggregates and hornblende (10 to 15%) as prismatic, euhedral phenocrysts to 4 mm long, (average 1 to 2 mm). Approximately 50% of unit composed of sub/to anhedral plagioclase and K- feldspar phenocrysts to 4 mm. Matrix is aphanitic and highly siliceous.

Mineralization is lacking and alteration is restricted to a poorly defined, 30 cm wide contact metamorphic aureole along basalt/porphyry boundary.

Granodiorite

Only a cursory examination was performed along the western margin of the claim group. Most notable feature is consistent, intense shearing and fracturing.

Basaltic Lapilli-Tuff

Thought to form the footwall to the noted shear zone at Zone 2. Medium to dark grey-green, weathers darker green. Soft, fragmental with calcareous matrix. Calcite and epidote occur as fracture filling. Chalcopyrite to 1% as disseminations and fine-grained crystal aggregates.

7.3 Local Mineralization

Three main zones of mineralization have been identified on the Hook Bay Property located within the Vancouver Group basalts of the Upper Triassic Karmutsen Formation in association with the underlying Island Intrusive granodiorites of the Lower Jurassic Island Plutonic Suite. Locations of the showings described below are noted in Figure 7-5.

The Contented 1 showing (BC Minfile 092F 195) is located on the ridge between Cook and Macktush Creek, approximately 4 kilometres southwest of the Macktush Creek mouth. Mineralization consists of massive sulphide pods and disseminated sulphides associated with linear shear zones, possibly the result of sulphides leaching from country rock. The area consists of fine to coarse grained, infrequent pyrite, pyrrhotite, and chalcopyrite as disseminations, fracture fillings, veinlets, and massive pods within sheared and fractured basalts. Disseminations and fracture fillings are found in the more competent basalts and the sulphide pods occur discontinuously within the shear zones. These pods can be up to 15 cm wide and are exposed to a height of approximately 1 m and consist of up to 80% to 90% sulphides. Historical grab samples of sulphide pods collected in the local area by Noranda Exploration (1982), assayed up to 45.57 g/t Ag and 5.8% Cu. In addition, 550 m east of the Contented 1 showing along road 2510K, samples R-23404 and R- 23405 returned assays of 1.63% Cu and 2.34% Cu, respectively (Stewart, 1983).

The Contented 2 showing (BC Minfile 092F 615) is located on a northerly flowing tributary of Cook Creek, approximately 2 kilometres northwest of the creek mouth on the Alberni Inlet. Mineralization is characterized by a 10 cm flat-lying vein structure of massive pyrrhotite-pyrite-chalcopyrite; however, it has been suggested that this structure could possibly be related to an exhalative lens of sulphides (Stewart, 1983). Grab samples collected by Noranda Exploration in 1982 reported assays of up to 18.51 g/t Ag, and 8.4% Cu (Stewart, 1983).

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

The Hook Bay 1 showing is described as a locally, 25 m wide zone of sheared and iron-stained basalts which are bounded by two faults, both striking 230° and containing quartz-chalcopyrite-pyrite-hematite veinlets spaced 0.5 to 1 m apart. On the west side of the zone, a 30 cm wide vein (lens) of massive chalcopyrite-pyrite-pyrrhotite was identified; it appeared to follow a similar strike. A grab sample from the lens (DD-1) returned assays of 5.995% Cu and 18.2 g/t Ag (Ferguson, 2012).

In 2020, Longford Exploration discovered two narrow veins, approximately 470 to 650 m to the east of the Hook Bay 1 showing. These samples returned assays of 1.41% Cu and 1.76% Cu. Approximately 30 m south of the Hook Bay 1 showing, sample 3294556 assayed 1.3% Cu, indicating possible continuity of mineralization between the showings.

In addition, Longford Exploration returned higher grades than had previously been sampled along the road 250J in 2014. Three rock samples (3294560, 3294564 and 3294559) assayed 2.12% Cu, 5.53% Cu and 7.41% Cu, respectively. As a result, Longford Exploration declared this new location to be the “Hook Bay 2 showing”. Mineralization at the Hook Bay 2 showing contains massive sulphides hosted within three 20 to 40 cm highly sheared, sub-vertical quartz-carbonate veins striking at 351°.

Mineralization throughout the Property is generally associated within shear zones and consists of pyrite, pyrrhotite and chalcopyrite as fine-grained disseminations, fracture fillings, quartz calcite epidote veinlets and pods of massive sulphides hosted in the Karmutsen Formation.

8 DEPOSIT TYPES

8.1 Volcanogenic Massive Sulphide Style Deposit

Volcanogenic massive sulphide (VMS) deposits (Figure 8-1), also known as volcanic-hosted massive sulphide, volcanic-associated massive sulphide, or seafloor massive sulphide deposits, are important sources of copper, zinc, lead, gold, and silver. These deposits form at or near the seafloor where circulating hydrothermal fluids driven by magmatic heat are quenched through mixing with sea bottom waters or porewaters in the nearseafloor rocks. Massive sulphide lenses vary widely in shape and size and may be pod-like or sheet-like. They are generally stratiform and may occur as multiple lenses. Deposits range in size from small pods of less than a ton (which are commonly scattered through prospective terrains) to supergiant.

Massive ore in VMS deposits consists of >40% sulphides, usually pyrite, pyrrhotite, chalcopyrite, sphalerite, and galena; non-sulphide gangue typically consists of quartz, barite, anhydrite, iron oxides, chlorite, sericite, talc, and their metamorphosed equivalents. Ore composition may be lead-zinc-, copper-zinc-, or leadcopper-zinc-dominated, and some deposits are zoned vertically and laterally.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

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Source: Galley et al., 2007

Figure 8-1 Schematic Cross Sections of Various VMS Deposit Types

An unusual feature of VMS deposits is the common association of stratiform “exhalative” deposits precipitated from hydrothermal fluids emanating into bottom waters. These deposits may extend well beyond the margins of the massive sulphide and are typically composed of silica, iron, and manganese oxides, carbonates, sulphates, sulphides, and tourmaline.

8.2 Copper-Gold-Molybdenum Porphyry Style Deposit

The Hook Bay Property is possibly associated with a widespread distal hydrothermal copper-goldmolybdenum porphyry style deposit (Figure 8-2). The mineralized zones are located within and adjacent to

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

basalts of the Karmutsen Formation and the contacts between the Island Plutonic Suite granodiorites on the Property.

Copper porphyry targets were very favourable for mining following the discovery of several large deposits in British Columbia and the improvements in technology and equipment to economically mine these deposits. The primary target deposit type on the Hook Bay property is a porphyry copper deposit which is targeted within the rocks of the Island intrusive rocks and near the boundary within the Karmutsen Formation. The alteration patterns typical of porphyry copper-gold deposit are commonly used as a vector toward the highest mineralized zones. Figure 8-2 from Corbett, 2005, indicates an idealized cross section of the general; areas of formation of a porphyry copper deposit (within the blue box) and its relation to epithermal precious metal deposits.

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Source: Corbett, 2005 (with porphyry copper in a blue box)

Figure 8-2 Porphyry Copper Deposit Type Model Cross Section

The following summary is sourced from Panteleyev, 1995”

“Copper, molybdenum and gold are generally present but quantities range from insufficient for economic recovery to major ore constituents. Minor silver is found in most deposits and rhenium was recovered from the Island Copper mine on Vancouver Island.

The deposits are generally stockworks of quartz veinlets, quartz veins, closely spaced fractures and breccias containing pyrite and chalcopyrite with lesser molybdenite, bornite and magnetite occur in

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

large zones of economically bulk-mineable mineralization in or adjoining porphyritic intrusions and related breccia bodies. Disseminated sulphide minerals are present, generally in subordinate amounts. The mineralization is spatially, temporally and genetically associated with hydrothermal alteration of the hostrock intrusions and wallrocks.

Porphyry deposits contain the largest reserves of copper and significant molybdenum resources and close to 50% of the gold reserves in British Columbia.”

The formation of this style of deposit is related to orogenic belts at convergent plate boundaries (subduction-related magmatism) or extension settings related to strike-slip faulting or back arc spreading during continent margin accretion. It is generally recognized that copper-gold-molybdenum porphyry deposits are associated with granodiorite, quartz monzonite, quartz diorite granitoid rock types. Coppergold-molybdenum porphyries tend to occur as large zones of hydrothermally altered host rock and are closely related to island-arc volcano-plutonic suites. Composition of intrusions range from basalt-andesite volcanic and gabbro-diorite-quartz-diorite associations. These deposits are characterized by quartz stockworks, veins, sulphide-bearing veins (pyrite, chalcopyrite, bornite, with lesser molybdenum), closely spaced fractures, and fracture selvages. These subvolcanic intrusions are commonly emplaced by multiple successive intrusive phases and a wide variety of breccias. Grain size may range from coarse-grained phaneritic to porphyritic.

9 EXPLORATION

VAR Resources Corp. has not carried out any exploration activities on the Property as of the date of this report.

10 DRILLING

VAR has not done any drilling at the Hook Bay Property.

The Author is not aware of any historical drilling.

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

The Author collected no samples during the site visit, due to limited number of rock samples to compare to. The Author did observe a copper containing hydrothermal alteration system on the Hook Bay property.

The last program on the Hook Bay is by Longford in 2020. The sampling during this program is presented as noted in Van der Meer, 2020:

“In 2020, a field program was completed by Longford Exploration. A total of 39 rock samples, 280 soil samples, and 14 stream sediment samples were collected. These samples enabled detailed out-of-the-field descriptions, and the samples were secured in a manner that maintained their integrity and provenance for future analytical procedures.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Sample Preparation

The rock, soil, and stream sediment samples collected were located by GPS in NAD83 UTM Zone 10N. The sample locations were recorded in field notebooks and in an assay sample tag book as well as a waypoint recorded on a Garmin 60CSX GPS unit.

Each rock sample was collected into its own 18 in. by 12 in. poly bag labelled with the location (for example, Hook Bay) and a unique eight-character sample ID (for example, E6690306) assigned from a barcoded Tyvek sample book. A tear-out tag with the barcode and unique sample ID was inserted into the bag with the sample, and the bag was sealed in the field with a cable tie. The sample locations were marked in the field with pink flagging tape and the unique sample ID number was written on the tape.

A similar process was carried out for recording the soil sample data; however, soils were carefully collected following strict guidelines. A total of 280 soil samples were collected at 25 m intervals with a 25 m line spacing. All sample locations were recorded using a handheld GPS unit. Sample sites were marked using flagging tape labelled with the sample number. Most soil samples were collected from the B soil horizon (20 to 60 cm deep holes) using soil augers, wile (sic) the remaining samples were collected from A soil horizons where the soil profile was found to be poorly developed. Each soil sample was placed into an individually labelled kraft paper bag. A field duplicate was collected for every twentieth sample, totalling 12 soil sample duplicates for the program.

A variety of sieves were used in the field to reduce sample weight and to take higher quality and more representative stream sediment samples. The procedure started with using a 2-mesh (6.35 mm) sieve and ended with a 20-mesh (0.841 mm) sieve. Samples were sieved either dry or wet depending on the availability of water at the sample site or the nature of fines. An amount equivalent to 80 g of fines collected through an 80-mesh sieve was the desired amount for ICP-MS analysis. Multiple locations were sampled along the given drainage at each station; the top 3 cm of sediment was discarded to reduce the potential for contamination. Samples were then sieved in the field and placed into a sample bag; the sample name, position, elevation, flow rate, clast size, clast shape, channel width (m), sieve size (mm), and potential anthropogenic contamination were recorded.

The sampling process followed a strict QA/QC protocol with careful handling of the samples at every stage of collection and processing. Samples were collected using Hubco Sentry sample bags (10 by 17 in.) that were allowed to drain. Additional drying in the lab occurred before the fines were collected and assayed. One stream sediment sample duplicate was collected.

All rock, soil and stream sediment samples were placed into rice bags and secured with zap-straps; the sample sequence, number of samples, and bag number was recorded on each bag.

Chain of Custody

Longford Exploration’s lead geologist maintained custody of all samples until they were submitted to Bureau Veritas in Vancouver, B.C.

QA/QC

Longford Exploration applies a high-level QA/QC program for early-stage exploration programs. Soil samples were duplicated every twentieth sample to confirm consistency. Stream sediment samples are duplicated

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

every tenth sample. The duplicate samples were homogenized in the field and then separated into individual Hubco Sentry sample bags and left to dry. Sieves and buckets were cleaned at each station to avoid contamination at the subsequent sample location. More comprehensive QA/QC procedures are applied to larger systematic sampling programs.

Sample Analysis

Sample analysis has been and will be carried out by Bureau Veritas at its Vancouver location; the lab is ISO/IEC 17025:2005 and ISO 9001:2015 certified and independent of CIPC. The check samples collected by the author were also delivered to Bureau Veritas in Vancouver. The analytical methods used by the lab for samples collected during the 2020 exploration program are shown in Table 11-1 .”

Table 11-1 Analytical Methods used in 2020

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Sample Type Analytical Methods(Bureau Veritas)
Rock Analysis PRP70-250 (crush 1 kg to ≥70% passing 2mm;pulverize 250 g ≥85% 75μm)
AQ200 (Aqua Regia ICP-OES/MS, 36 elements, 0.5 g)
Soil Analysis SS80 (sieve 100g to 80mesh),
AQ200 (Aqua Regia ICP-OES/MS, 36 elements, 0.5 g)
Stream Sediment Analysis AQ 252 (Aqua Regia ICP-OES/MS, 37 elements, 30 g)
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Bureau Veritas is independent of both VAR and Longford Exploration.

The Author believes that the processes used by the Longford Exploration field staff and the Bureau Veritas Laboratory meet industry standards and are adequate for a project at this stage of development. The Author suggests a more rigorous program including insertion of Blank and Certified Standard samples into the sample stream be used once systematic quantitative programs such as drilling or chip line sampling are initiated.

12 DATA VERIFICATION

The Author visited the property on March 21[st] of 2021 and reviewed the mineralized zone available for access at the time. The Author used a Garmin GPSMap62 GPS to confirm the location of the sites visited. Mineral Title ownership was confirmed at the BC Government website MTOnline on February 12, 2021.

The author did not collect any rock samples. The visual finding of the copper bearing minerals and the hydrothermal alteration system confirmed the area to be prospective for copper mineralized systems. A review by the Author of the historical reports, accessed independently from the online BC Assessment Report Index, confirms a history of industry professions having reported the work completed on the Hook Bay property and surrounding area and the discovery and confirmation of copper mineralization.

The Author did an “audit” review of select analytical values reported in the 2020 report with the Bureau Veritas Certificates provided. The author selected multiple values in the data set and confirmed the same value on the analysis certificates provided.

It is the Author’s opinion that the data and data verification is adequate for a property at this early stage of development.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

13 MINERAL PROCESSING AND METALLURGICAL TESTING

There has been no mineral processing or mineralogical testing been undertaken on the Hook Bay Property.

14 MINERAL RESOURCE ESTIMATES

There has been no mineral resource estimate undertaken on the Hook Bay Property.

23 ADJACENT PROPERTIES

A search of B.C. MINFILE reveals that there are several copper-rich mineral prospects in the area. The most notable include the Macktush and Nahmint properties.

Macktush Property

Table 23-1 Macktush Property Historical Resource Estimates by Vein/Zone

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Tonnes Gold Silver Copper
Vein/Zone Category Report
(t) (g/t) (g/t) (%)
David Vein 16,278 5.65 25.6 0.31 Indicated Houle ,2006
Dauntless 14,171 0.04 6.2 2.05 Indicated Houle ,2006
North Veins
Herbert Jr. 8,479 0.12 6.7 5.16 Indicated Houle ,2006
Vein
Tasha Zone 20,423 0.01 0.6 0.16 Indicated Houle ,2006
Fred Vein 65,475 13.91 48.1 0.59 Indicated Houle, 2007
Zinc Vein 35,710 8.97 44.5 0.57 Indicated Houle, 2007
Jack Vein 13,994 2.00 0.8 0.02 Indicated Houle, 2007
Moly Vein 504 4.27 1.5 0.01 Indicated Houle, 2007
MC1 Zone 21,851 0.26 6.9 0.43 Indicated Houle, 2007
MC2 Zone 138,499 0.33 5.2 0.47 Indicated Houle, 2007
MC3 Zone 17,618 0.38 1.0 0.05 Indicated Houle, 2007
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The Macktush Property ( MINFILE 092F 012 ) lies several kilometres north of the Hook Bay Property, approximately 2 km west of the Alberni Inlet. This developed prospect is underlain by Karmutsen Formation volcanics, intruded by granodioritic rocks of the Island Plutonic Suite. The volcanic rocks consist of dark green massive basalt and andesite interbedded with or intruded by porphyritic felsic flows or dykes striking 030°. The mafic volcanics contain disseminated pyrite and epidote veinlets with local disseminated chalcopyrite. Sulphide lenses are <0.6 m wide and of limited lateral extent. At least four quartz veins up to 0.8 m wide striking 030° to 080° occur over an area of between 150 to 200 m. The sampled Macktush vein

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

hosts strongly silicified diorite. Historical resources estimates were prepared and reported by J. Houle 2006 and 2007 which describe indicated resources along 11 veins and zones within the local area.

The Author has been unable to verify the information on the Macktush property and that the information on this property is not necessarily indicative of the mineralization on the Hook Bay Property that is the subject of this technical report.

Nahmint Property

The Nahmint Property consist of two main target areas and lies several kilometres south of the Hook Bay Property. Collectively, it includes two groups of 15 Crown-granted mineral claims known as the “Three Jays” (group of eight claims in the northerly end of Nahmint property ( MINFILE 092F 140 ) aka Nahmint and Hayes) and the “Monitor” (group of seven claims in the southerly end of the Nahmint property ( MINFILE 092C 007 )) and the surrounding cell mineral claims. Together, these claims form a large, contiguous, earlystage copper+/-gold-silver-zinc-cobalt-molybdenum-rhenium-tellurium project. The Nahmint Property, as reported by Minfiles 092F 140 and 092C 007, hosts historical past production events of direct-shipping, highgrade copper, silver-gold ore as noted below:

Three Jays produced 1,981 tonnes @ 7.52% Cu, 38.0 g/t Ag and 0.97 g/t Au from 1898 to 1902.
• Monitor produced 1,288 tonnes @ 9.08% Cu, 28.8 g/t Ag, and 0.05 g/t Au from 1900 to 1918.

In this area, Vancouver Group Quatsino limestones are underlain by Karmutsen basalts and interbedded tuffs. Lower Jurassic Bonanza Group andesite tuffs, agglomerates and flows are also present. These rocks are folded, faulted and intruded by a 60 m wide granodiorite dyke and by several diorite and quartz-feldspar porphyry bodies (Island Plutonic Suite). Skarn mineralization is hosted in limestone and overlying Bonanza volcanics and in Karmutsen tuff horizons. Mineralization is high-grade chalcopyrite, magnetite, pyrite, bornite, epidote, garnet and actinolite. Seven major ore shoots in three parallel zones are separated by roughly 30 m, and ore deposits are 1,500 m long. The easterly trend of the ore has steep dips (80°S) and plunges to the west.

The Author has been unable to verify the information on the Nahmint property and that the information on this property is not necessarily indicative of the mineralization on the Hook Bay Property that is the subject of this technical report.

24 OTHER RELEVANT DATA AND INFORMATION

There is no other relevant data known to the Author.

25 INTERPRETATION AND CONCLUSIONS

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

development of further logging roads into the area north and west of the Hook Bay showing which should expose further outcrops.

The major geological units at Hook Bay, the Karmutsen volcanic rocks and Island Intrusive Suite, are both known in other regions to host mineral deposits of the types considered in this report. The details of past exploration have determined the property and the area surrounding it to have the potential to contain mineralization in economic quantities.

The Hook Bay Property is situated in an economically and socio-politically stable region. There are currently no known factors that would prevent further exploration or any future potential project development. However, as this is still an early-stage grass-roots phase of exploration, there is always the risk that the proposed work may not result in the discovery of an economically viable deposit.

This project is still at an early stage and deserves further exploration to determine the potential of this property. Further work is recommended, but there are no assurances of success.

26 RECOMMENDATIONS

Phase One includes the following:

A detailed review of historical data, including a complete digitization of the data from historical work, mapping, and sampling to provide a single detailed layering of data to consolidate and lead future exploration efforts. Any additional regional government data not already digitized needs to be added at this point such as local historical airborne. Focus on an increased understanding of the nature and extent of mineralization using the existing geological, geochemical and geophysical datasets. This data set will be used to focus the work into the areas of highest prospectivity.
Prospecting the recent roads north and west of the Hook Bay showing and the older roads near the Contented showings. This can include a systematic soil sampling line in areas with little or no rock outcrop along the road side to direct future exploration.
Detailed field mapping focusing on alteration and prospecting as well as systematic surface sampling across the mineral showings to delineate the extent, thickness, and characteristics of any mineralized zones.
Detailed lithological and structural geological mapping over areas of outcrop exposure, and particular attention should be paid to understanding alteration to follow up on mineralization.
Drainages of the Cook Creek stream sediment sample results for gold and copper show locally anomalous results in four sub-drainages. Further detailed sampling to identify the source of this anomaly requires follow up in subsequent field exploration programs.
Soil sampling in systematic grids (at 50 m to 100 m spacing), should also be completed along the ridgeline spurs and across areas of known mineralization and their strike continuation (for example, between the Hook Bay and Contented showings).

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Table 26-1 Proposed Budget

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----- Start of picture text -----

Phase One
Proposed Activity Man All In Daily Estimated Cost
Days Cost
Compile historical data to digital formats 30 $ 500 $ 15,000
and review of results to narrow targets
Prospecting (10 man days) 10 $ 700 $ 7,000
Geological mapping (1:5K or 1:10K) 30 $ 800 $ 24,000
Geochemical Soil Program 30 $ 1,500 $ 45,000
Stream Sediment Follow Up Program 10 $ 1,500 $ 15,000
Reporting $ 15,000
Contingency $ 9,000
Total Phase One Budget $ 130,000
Phase Two
Allowance for Airborne or Ground Geophysics $ 100,000
Consultants to assist in the dirill targeting $ 20,000
Diamond drilling program 3,500 metres $ 1,000,000
Total Phase Two Budget $ 1,120,000
----- End of picture text -----

Recommendations for a Phase Two program are conditional on positive results in Phase 1, and include the following:

Ground and/or airborne geophysics, with specific techniques determined by the Phase 1 results. Ground surveys such as IP should be targeting over areas of past detailed mapping and soil geochemistry. Any airborne work needs to be completed after the snow has cleared the ground to allow follow up on stronger radiometric results in particular the potassium alteration trace. If airborne geophysics are chosen the grid should extend to the north to meet/overlap with the historical 2005 data at the Macktush property and possibly extend in other directions outside the present claims. This will allow a better correlation of the geophysics to the regional rock types due to more detailed data on similar rock units on Macktush.
Technical data reviews by third-party experts in porphyry copper and VMS target generation that could support a preliminary diamond drilling program.
3,500-metre-long diamond drill program.

27 REFERENCES

Auracle Geospatial Science, Inc., 2012, Technical Report for the Macktush Project for Nahminto Resources Ltd., ARIS_33140.

Currie, L.D., and Grist, A.M., 1996, Diachronous low-temperature Paleogene cooling of the Alberni Inlet area, Current Research 1996-A, Geological Survey of Canada, pg. 119-128.

Corbett, G., 2005; Epithermal Au-Ag Deposit Types – Implications for Exploration, for the Proexplo Conference Peru May 2005

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

Ferguson, D.W., 2012, Prospecting Survey Report: Hook Bay Cu Property for Aztec Geoscience Inc., ARIS_33232.

Ferguson, D.W., 2013, Geological Mapping and Prospecting Report: DCS3-Hook Bay Cu Property for Aztec Geoscience Inc., ARIS_34302.

Ferguson, D.W., 2014, Prospecting Survey Report: Hook Bay Cu Property for Aztec Geoscience Inc., ARIS_34542.

Galley, A.G., Hannington, M.D., and Jonasson, I.R., 2007, Volcanogenic massive sulphide deposits, in Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 141-161.

Hills, L., Sanadria, R., 2011, 2011 Geological and Geochemical Technical Exploration Report on the Macktush Copper Project for G4G Resources Ltd., ARIS_32297.

Houle, J., 2006, Technical Report for the 2005 Diamond Drilling Program and the Airborne Geophysical Survey on Contiguous Properties, for SYMC Resources Ltd., ARIS_28497.

Houle, J., 2006, Technical Report for: The 2005 Diamond Drilling Program and Airborne Geophysical Survey on the Macktush Property for SYMC Resources Ltd., ARIS_28497.

Houle, J., 2007, Technical Report for: The 2006 Diamond Drilling Program and Prospecting Program on the Macktush Property for SYMC Resources Ltd., ARIS 28989A.

Houle, J., 2007, Technical Report for: The 2006 Diamond Drilling Program and Prospecting Program on the Macktush Property for SYMC Resources Ltd., ARIS_28989B.

Muller, J.E. and Carson, D.J.T., 1969, GSC Paper 68-50, Geology and Mineral Deposits of the Alberni Valley Map-Area, British Columbia (92F) plus GSC map 17-1968

Muller, J. E., Northcote, K. E. & Carlisle, D., 1974. Geology and mineral deposits of Alert Bay - Cape Scott map area, Vancouver Island, British Columbia. Geological Survey of Canada, Paper 74-8, 77.

Nixon, G.T., Kelman, M.C., Stevenson, D., Stokes, L.A., and Johnston, K.A., 2006, Preliminary Geology of the Nimpkish Map Area (NTS 092/L07), Northern Vancouver Island, British Columbia, British Columbia Geological Survey, Fieldwork 2005, Paper 2006-1.

Panteleyev, A., 1995, Porphyry Cu +/- Mo +/- Au in: Lefebure, D.V. and Ray G.E. ed.; 1995: Selected British Columbia Mineral Deposit Profiles, Vol. 1 - Metallics and Coal; B.C. Min. Employment and Investment, BC Geological Survey, Open File 1995-20, pp. 87-91.

Ryan, S., and Versloot, R., 2020, 2020 Assessment Report on the Hook Bay Property, Alberni Mining Division.

Stewart, C., 1983, Contented Claim Report #1 Report on Geology and Geochemistry for Assessment Purposes for Noranda Exploration Company, Ltd., ARIS_12044.

Sean P. Butler, P.Geo.

VAR Resources Corp.

Hook Bay Property

van der Meer, L., 2020, NI 43-101 Technical Report on the Hook Bay Property, Alberni Mining Division, 18 November 2020.

ARIS_#### = British Columbia Government Assessment Report Numbers

British Columbia Government Data Sources:

Minfile : https://minfile.gov.bc.ca/searchbasic.aspx/

BC Minfile_092F616 Hook Bay

BC Minfile_092F615 Contented 2 BC Minfile_092F195 Contented 1

Mineral Assessment Reports: https://aris.empr.gov.bc.ca/

- MapPlace: https://www2.gov.bc.ca/gov/content/industry/mineral exploration mining/british-columbia-geological-survey/mapplace

Government of Canada Data Sources:

Climate:

https://climate.weather.gc.ca/climate_normals/results_1981_2010_e.html?searchType=stnName&txtStationN ame=alberni&searchMethod=contains&txtCentralLatMin=0&txtCentralLatSec=0&txtCentralLongMin=0&txt CentralLongSec=0&stnID=266&dispBack=0

Sean P. Butler, P.Geo.

AI assistant

Grounded Lithium Corp. — Audit Report / Information 2021

43625_rns_2021-04-26_59c50b40-1072-4160-9636-d2b2e648bf3c.pdf

Technical Report

Hook Bay Property

Central Vancouver Island, British Columbia, Canada

Latitude 49° 5.6'N Longitude 124°52.9"W

For:

VAR Resources Corp.

Dated: April 15, 2021

I Sean P. Butler, P.Geo., do hereby certify that:

Dated this 15th day of April, 2021

“signed and sealed”

Signature of Qualified Person

EXECUTIVE SUMMARY

CONTENTS

FIGURES & TABLES

2 INTRODUCTION

2.1 Terms of Reference

2.2 Sources of Information

2.3 QP Personal Inspection of the Property

2.4 Abbreviations and Units of Measure

3 RELIANCE ON OTHER EXPERTS

4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location

Sean P. Butler, P.Geo.

4.2 Property Description

4.3 Agreements

4.4 Mineral Title Maintenance Requirements

4.5 Permitting

4.6 Environmental Liabilities

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

5.2 Climate

5.3 Local Resources

5.4 Infrastructure

5.5 Physiography

6 HISTORY

6.1 Pre-2020 Historical Exploration

6.2 2020 Field Program

Results Overview

Rock Sample Results

7

7.1 Regional Geology

Hook Bay Property

7.2 Local Geology

7.2.1 Hook Bay Property Rock Descriptions

Basalt

Rhyolite Porphyry

Granodiorite

Basaltic Lapilli-Tuff

7.3 Local Mineralization

8 DEPOSIT TYPES

8.1 Volcanogenic Massive Sulphide Style Deposit

8.2 Copper-Gold-Molybdenum Porphyry Style Deposit

9 EXPLORATION

10 DRILLING

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

Sample Preparation

Chain of Custody

QA/QC

Sample Analysis

12 DATA VERIFICATION

13 MINERAL PROCESSING AND METALLURGICAL TESTING

14 MINERAL RESOURCE ESTIMATES

23 ADJACENT PROPERTIES

Macktush Property

Nahmint Property

24 OTHER RELEVANT DATA AND INFORMATION

25 INTERPRETATION AND CONCLUSIONS

26 RECOMMENDATIONS

27 REFERENCES

British Columbia Government Data Sources:

Government of Canada Data Sources:

Climate:

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Grounded Lithium Corp. Audit Report / Information 2021