Homerun Resources Inc. — Management Reports 2021

May 1, 2021

ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

This management’s discussion and analysis of Envirotek Remediation Inc. (the “Company”) contains analysis of the Company’s operational and financial results for the years ended December 31, 2020 and 2019. The following should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2019. All figures are in Canadian dollars unless otherwise stated.

DATE OF REPORT

April 30, 2021

JURISDICTION OF INCORPORATION AND CORPORATE NAME

EnviroTek Remediation Inc. (“the Company”) was incorporated in British Columbia on October 21, 1980 and is a public company listed on the TSX Venture Exchange (“TSX-V”). The principal business activity of the Company was environmental remediation but intends to change its focus to mineral exploration. The corporate head office of the Company is located at 14[th] Floor, 1040 West Georgia Street, Vancouver, B.C., V6E 4H8.

HIGHLIGHTS

The Company has terminated its previously announced change-of-business transaction and did not issue any common shares in relation to the change-of-business transaction. The Company intends on taking the required administrative procedures in order to change its name to Homerun Resources Corp. On December 14, 2020, the Company executed an option agreement for the right to acquire a 100-per-cent interest in the Homathko gold project, located in the Caribou regional district of British Columbia.

OUTLOOK

The Company will need additional funding for its exploration, corporate and overhead expenses in near future through either equity or debt financing. Many factors influence the Company’s ability to raise funds, including the health of the capital market and the Company’s track record. There is no guarantee that the Company will be able to secure additional financings in the future at terms that are favorable.

SUBSEQUENT EVENTS

None.

MINERAL EXPLORATION PROJECTS

Homathko gold project option

The company has an option for the right to acquire a 100-per-cent interest in the Homathko gold project, located in the Caribou regional district of British Columbia.

Mineralization on the property was first identified by Falconbridge Ltd. in 1966, which reported grab and trench sampling returning up to 384 grams per tonne gold. Work completed by Transition Metals Corp. identified a larger, high-grade lode gold system traceable at surface along 1.5 kilometres of strike length. According to Transition, the mineralization is hosted within quartz-carbonate veining developed within and near the margins of a shear-bounded, altered quartz-feldspar porphyry sill. Based on field observations, geologists from Transition have interpreted that the environment for mineralization on the property appears consistent with that of a traditional mesothermal lode gold deposit, which bears many similarities to similar deposits occurring elsewhere in the Stikine belt.

Homathko project highlights:

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

• Surface and trench grab samples returning up to 384 g/t gold in 1966;

• Grab samples returning up to 64.5 g/t gold in 1989;

• Grab samples returning up to 87.5 g/t gold and 45 g/t silver in 2010 by Transition Metals;

• To date, the Homathko project has never been drill tested.

Cautionary note: the reader is cautioned that rock grab samples are selective by nature and may not represent the true grade or style of mineralization across the property.

Under the terms of the option agreement, the company can earn a 100-per-cent interest in the claims by making such payments necessary to keep the property in good standing and by completing the following:

• Making the following cash payments and issuing the following common shares to Transition Metals:

• A $10,000 cash payment on or before Dec. 31, 2020 (paid);

• 700,000 common shares upon TSX Venture Exchange acceptance of the option agreement and no later than June 30, 2021;

• $40,000 in common shares at a 30-day volume-weighted average price on or before the first anniversary of the option agreement;

• $50,000 in common shares at a 30-day volume-weighted average price on or before the second anniversary of the option agreement;

• $50,000 in common shares at a 30-day volume-weighted average price on or before the third anniversary of the option agreement.

• Completing the following work expenditures on the property:

• Cumulative $100,000 by June 30, 2021;

• o Cumulative $550,000 by Dec. 31, 2022.

The optionor will retain a 1-per-cent net smelter return royalty on all mineral production, 0.5 per cent of which can be purchased by the company for $1-million. The property is also subject to a pre-existing 1-per-cent royalty in favour of a third party.

INVESTOR RELATIONS

None.

SELECTED ANNUAL FINANCIAL INFORMATION

The financial data presented below for the current and comparative periods was prepared in accordance with IFRS. The functional and reporting currencies of the parent and subsidiary have been determined to be the Canadian dollar.

Results of Operations

The following financial data are derived from our consolidated financial statements for the years ended December 31, 2020, 2019 and 2018:

		December 31,		December 31,		December 31,
		2020		2019		2018
Expenses	$	615,712	$	699,257	$	750,718
Other income		(2,897,987)		-		-
Net and comprehensive (income) loss		2,282,275		(699,257)		(750,718)
Basic and diluted loss per share		0.20		(0.06)		(0.06)
Total current assets		36,800		7,230		17,863
Total assets		46,800		7,230		17,863

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

Total current liabilities	1,548,162	4,668,223	3,979,599
Total liabilities	1,548,162	4,668,223	3,979,599

The Company is changing its focus to mineral exploration. (see Highlights for more details).

For the year ended December 31, 2020, the Company recorded net comprehensive income of $2,282,275 (2019 - $699,257 loss). The Company recorded a gain of $2,897,987 from the forgiveness of debt (combination of share subscription receipts and accounts payable). The debt was assumed by an arm’s length company along with rights to hydrocarbon remediation project. The Company incurred consulting and management fees of $282,000 (2019 - $404,799), office and miscellaneous costs of $123,551 (2019 - $130,709), professional fees $24,352 (2019 - $24,453), exploration and evaluation expenses of $178,968 (2019 - $121,315) and a foreign exchange gain of $2,598 (2098 loss – $9,564).

For the year ended December 31, 2019, the Company incurred consulting and management fees of $404,799 (2018 - $399,781), office and miscellaneous costs of $130,709 (2018 - $121,463, professional fees $24,453 (2018 - $45,245), transfer agent and filing fees of $8,417 (2018 - $7,101) and a foreign exchange loss of $9,564 (2018 – $11,800).

Summary of Quarterly Results

Results for the eight most recent quarters are as follows:

		Dec. 31,		Sep. 30,		Jun. 30,		Mar. 31,
		2020		2020		2020		2020
Expenses	$	123,306	$	144,742	$	219,840	$	127,823
Other loss (income)		(2,447,254)		(450,733)		-		-
Net income (loss)		2,323,947		305,991		(219,840)		(127,823)
Comprehensive income (loss)		2,323,947		305,991		(219,840)		(127,823)
Basic and diluted income (loss) per share		0.20		0.03		(0.02)		(0.01)
Total current assets		36,800		5,293		11,755		8,955
Total assets		46,800		5,293		11,755		8,955
Total current liabilities		1,548,162		1,347,958		5,020,411		4,797,771
Total liabilities		1,548,162		1,347,958		5,020,411		4,797,771
		Dec. 31,		Sep. 30,		June 30,		Mar. 31,
		2019		2019		2019		2019
Expenses	$	214,253	$	182,858	$	144,957	$	157,189
Other income		-		-		-		-
Net loss		(214,253)		(182,858)		(144,957)		(157,189)
Comprehensive loss		(214,253)		(182,858)		(144,957)		(157,189)
Basic and diluted loss per share		(0.02)		(0.02)		(0.01)		(0.01)
Total current assets		7,230		10,119		5,692		6,011
Total assets		7,230		10,119		5,692		6,011
Total current liabilities		4,668,223		4,446,859		4,269,574		4,124,936
Total liabilities		4,668,223		4,446,859		4,269,574		4,124,936

Results of Operations for the Three Months Ended December 31, 2020 and 2019

The net income for the three-month period ended December 31, 2020 was $2,323,947 (2019 - $214,253 loss). During the three-month period ended December 31, 2020, the Company realized income of $2,447,254 from the forgiveness of debt as an arm’s length company has assumed the debt along with the rights to a hydrocarbon remediation project. Major expenditures during the quarter were:

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

• Consulting and management fees $54,000 (2019 - $143,319);

• Exploration and evaluation expenses $64,059 (2019 - $24,565);

• Foreign exchange gain $7,602 (2019 – loss $7,298);

• Office and miscellaneous $29,547 (2019 - $39,572);

Results of Operations for the Years Ended December 31, 2020 and 2019

The Company recorded net comprehensive income for the year ended December 31, 2020 of $2,282,275 (2019 - $699,257 loss). The Company realized income of $2,897,987 (2019 – nil) from the forgiveness of debt as an arm’s length company has assumed the debt along with the rights to a hydrocarbon remediation project. Major expenditures during the year were:

• Consulting and management fees $282,000 (2019 - $404,799);

• Exploration and evaluation expenses $178,968 (2019 - $121,315);

• Office and miscellaneous $123,551 (2019 - $130,709);

• Professional fees $24,353 (2019 - $24,453);

LIQUIDITY AND CAPITAL RESOURCES

		December 31, 2020		December 31,2019
Cash	$	27,860	$	113
Amounts receivable		8,440		6,617
Prepaid expenses		500		500
Exploration and evaluation assets		-		-
Current liabilities		1,548,162		4,668,223
Shareholders’ deficiency		(1,501,362)		(4,660,993)
Working capital deficiency		(1,511,362)		(4,660,993)

The Company has historically relied upon equity financings to satisfy its capital requirements and will continue to depend heavily upon the capital markets to finance its activities. There can be no assurance the Company will be able to obtain required financing in the future on terms acceptable to the Company. The Company anticipates it will need additional capital in the future to finance ongoing exploration of its properties, which will be derived from the exercise of stock options and warrants, and/or private placements. The Company may also seek short term loans from directors of the Company.

As at December 31, 2020, the Company had cash of $27,860 (December 31, 2019 - $113) and negative working capital of $1,511,362 (December 31, 2019 - $4,660,993). During the year ended December 31, 2020 realized a gain of $2,897,987 from the forgiveness of debt by 3[rd] parties. The debt and any rights to the hydrocarbon remediation were transferred to an arm’s length company.

Significant working capital components include cash in current or interest-bearing accounts, accounts payable, and demand loan payable.

Capital stock

The Company’s share capital consists of unlimited common voting shares, without par value.

As at December 31, 2020 and the date of this report, the Company had 11,878,381 common shares issued and outstanding.

Stock options

The Company has adopted an incentive stock option plan under the rules of the TSX-V pursuant to which it is authorized to grant options, as amended, to executive officers, directors, employees and consultants.

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

As at December 31, 2020 (December 31, 2019 – nil) and the date of this report, there are no stock options issued and outstanding.

Warrants

There are no warrants issued and outstanding as at December 31, 2020 (December 31, 2019 – nil).

USE OF PROCEEDS

Proceeds received from the issuance of shares will be allocated toward general working, capital purposes and acquisitions.

OFF-BALANCE SHEET ARRANGEMENTS

The Company does not have off-balance sheet arrangements.

RELATED PARTIES AND KEY MANAGEMENT COMPENSATION

During the years ended December 31, 2020 and 2019, the Company entered into transactions with the related parties as below:

						Fees incurred		Fees incurred
						for the year		for the year		Balance		Balance
						ended		ended		payable at		payable at
			Nature	of		December 31,		December 31,		December		December
Name	Relationship		Transaction			2020		2019		31, 2020		31, 2019
Nexvu Services Inc.	Owned by	Nexvu	Rent and corporate		$	120,000	$	120,000	$	196,625	$	209,550
	Capital Corporation,		services
	which Brian Leeners,
	Greg Pearson	and
	Gordon Fretwell are
	shareholders
Nexvu Capital Corporation	Brian Leeners,	Greg	Demand loan			-		-		117,428		115,428
	Pearson and Gordon
	Fretwell	are
	shareholders
Brian Leeners	Chief executive	officer	Management services			120,000		120,000		174,625		444,170
	and director
Maria Conejo	President		Technical services			60,000		120,000		100		126,500
Global Link Capital	Greg Pearson, director		Management services			120,000		120,000		166,335		365,783
	of the Company, is a
	shareholder
Greg Pearson	Director		Management services			-		-		5,400		5,400
Gordon J. Fretwell, Law	Gordon Fretwell is a		Legal services			10,500		10,000		2,500		197,052
Corporation	shareholder of	Nexvu
	Capital Corporation.
0733351 BC Ltd.	Owned by	Nexvu	Property option			-		-		9,609		9,854
	Capital Corporation,
	which Brian Leeners,
	Greg Pearson	and
	Gordon Fretwell are
	shareholders
AE Financial Management	Edward Low,	chief	Accounting services			42,000		52,500		78,588		96,338
Ltd.	financial officer, is a
	shareholder
CBDS Health Inc.	Director		Corporate services			-		-		8,965		-
					$	472,500	$	542,500	$	760,075	$	1,570,075

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

The amounts payable to related parties summarized as above were included in accounts payable and accrued liabilities. Balances owing are unsecured, non-interest bearing and have no specified terms of repayment. During the year ended December 31, 2020, certain directors and companies controlled by directors and officers of the company agreed to forgive $1,066,465 in debt. As the debt forgiveness was executed in the related party’s capacity as a shareholder $846,855 of the forgiven debt was attributed to retained earnings, and the balance $219,610 was record in the statement of comprehensive income (loss).

SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. The consolidated financial statements include estimates, which, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the condensed consolidated interim financial statements and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised, and the revision affects both current and future periods.

Information about critical judgments and estimates in applying accounting policies that have most significant effect on the amounts recognized in the condensed consolidated interim financial statements are as follows:

• Determination of functional currency;

• Asset carrying values and impairment charges;

NEW ACCOUNTING STANDARDS

For information on the Company’s accounting policies and new accounting pronouncements, please refer to our disclosure in our audited consolidated financial statements for the year ended December 31, 2020.

CAPITAL MANAGEMENT AND FINANCIAL RISK FACTORS

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the acquisition. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of management to sustain future development of the business. In order to carry out the planned acquisition and pay for administrative costs, the Company will need to raise additional working capital.

Management reviews its capital management approach on an on-going basis and believes that this approach, given the relative size of the Company, is reasonable.

There were no changes in the Company’s approach to capital management during period or during the period. Neither the Company nor its subsidiary is subject to externally imposed capital requirements.

Details of the Company’s financial instruments, management’s assessment of their related risks and details of management of those risks are as follows:

Financial risk management

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s financial instruments consist of cash, GST receivable, reclamation bond, accounts payable and accrued liabilities, payable to related parties, and demand loan payable.

The Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

limits. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash.

Financial instrument risk exposure

The Company is exposed in varying degrees to a variety of financial instrument related risks. The Board approves and monitors the risk management processes. The Company does not have any asset backed commercial paper.

Credit risk

The Company’s main exposure to credit risk relates to its cash. Cash balances are held in Canadian and US chartered banks. The Company determined that is has limited exposure to credit risk related to receivables since these amounts are not material.

Liquidity risk

The Company’s approach to managing liquidity is to ensure that it will have sufficient liquidity to settle obligations and liabilities when due.

Market risk

The market risk exposure to which the Company is exposed is interest rate risk. The Company’s bank account earns interest income at variable rates. The Company’s future interest income is exposed to short-term rate fluctuations. This is not a significant risk to the Company.

Foreign exchange risk

The Company’s exposure to fluctuations in foreign exchange rates is limited.

OTHER RISK FACTORS

The Company has no history of profitable operations and its present business is at an early stage. As such, the Company is subject to many common risks to new and developing enterprises, including undercapitalization, cash shortages and limitations with respect to personnel, financial and other resources and the lack of revenues. There is no assurance that the Company will be successful in achieving a positive return on shareholders’ investment.

The Company has no source of operating cash flow and no assurance that additional funding will be available to it for further exploration and development of its projects when required. Although the Company has been successful in the past in obtaining financing through the sale of equity securities, there can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. Failure to obtain such additional financing could result in the delay or indefinite postponement of the development of its technology.

The Company competes with many other companies who have greater financial resources and technical capacity. The Company is very dependent upon the personal efforts and commitment of its existing management. To the extent that management’s services would be unavailable for any reason, a disruption to the operations of the Company could result, and other persons would be required to manage and operate the Company.

The Company’s technology development activities may require permits and approvals from various government authorities, and are subject to extensive federal, state/provincial and local laws and regulations governing development, operations, exports, taxes, labour standards, occupational health and safety and other matters. Such laws and regulations are subject to change, can become more stringent and compliance can therefore become more costly. In addition, the Company may be required to compensate those suffering loss or damage by reason of its activities. There can be no guarantee that the Company will be able to maintain or obtain all necessary licences, permits and approvals that may be required to develop its technologies, commence construction or operation of facilities.

The Company’s activities are subject to extensive federal, state/provincial and local laws and regulations governing environmental protection and employee health and safety. Environmental legislation is evolving in a manner that is creating stricter standards, while enforcement, fines and penalties for non-compliance are also increasingly stringent. The cost of compliance with changes in governmental regulations has the potential to reduce the profitability of operations. Further,

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

any failure by the Company to comply fully with all applicable laws and regulations could have significant adverse effects on the Company, including the suspension or cessation of operations.

The market price of securities of many companies, particularly technology development stage companies, experience wide fluctuations in price that are not necessarily related to the operating performance, underlying asset values or prospects of such companies. There can be no assurance that fluctuations in the Company’s share price will not occur.

A number of the Company’s directors and officers serve or may agree to serve as directors or officers of other companies and, to the extent that such other companies may participate in ventures in which the Company may participate, the directors of The Company may have a conflict of interest in negotiating and concluding terms respecting such participation. As a result, conflicts of interest may arise and officers and directors cannot devote 100% of their time to the Company.

The Company has invested resources to document and analyze its system of internal control over financial reporting. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance with respect to the reliability of financial reporting and financial statement preparation.

LEGAL MATTERS

The Company is not currently and has not at any time during our most recently completed fiscal year, been party to, nor has any of its properties been the subject of, any material legal proceedings or regulatory actions.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Management is responsible for the design of the Company’s internal controls over financial reporting (“ICFR”) as required by National Instrument 52-109 – Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”). ICFR is intended to provide reasonable assurance regarding the preparation and presentation of financial statements for external purposes in accordance with applicable generally accepted accounting principles. Internal control systems, no matter how well designed, have inherent limitations.

Based on a review of its internal control procedures at the end of the year covered by this MD&A, management has determined that the Company’s internal controls over financial reporting have been effective to provide reasonable assurance regarding the reliability of financing reporting and the preparation of financial statements for external purposes in accordance with IFRS. There were no changes in the Company’s internal controls over financial reporting that occurred during the period that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

However, even those systems determine to be effective can provide only reasonable assurance with respect to financial statement and preparation. A control system, no matter how well conceived or operated can provide only reasonable, not absolute, assurance and are not expected to prevent all errors and fraud.

ADDITIONAL INFORMATION

Additional information about the Company is available at the website of the System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com.

APPROVAL

The board of directors has approved the disclosure contained in this MD&A.

CAUTIONARY NOTES FORWARD-LOOKING STATEMENTS

This MD&A contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to the Company’s future business plans and strategy, exploration plans, and environmental protection requirements. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" (or "does not expect"), "budget",

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ENVIROTEK REMEDIATION INC. Management’s Discussion & Analysis For the Years Ended December 31, 2020 and 2019

"scheduled", "estimates", "forecasts", "intends", "anticipates" (or "does not anticipate"), or "believes", and other similar words and phrases, or which states that certain actions, events, or results "may", "could", "might", or "will” occur. Forwardlooking information is subject to known and unknown risks and uncertainties that may cause the actual results, or performance of the Company to be materially different from those expressed or implied by such forward-looking information. These risks and uncertainties include risk and uncertainties associated with the mining industry and the exploration and development of mineral projects, such as the uncertainty of exploration results, the volatility of commodity prices, potential changes in government regulation, the uncertainty of potential title claims against the Company’s projects, and the uncertainty of predicting operating and capital costs. They also include risks and uncertainties that affect the business environment generally, such as international political or economic developments, changes in interest rates and the condition of financial markets, and changes in exchange rates.

Forward-looking information is based on assumptions and expectations which the Company considers to be reasonable, and which are based on management’s experience and its perception of trends, current conditions, and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. Although the Company believes that the assumptions and expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking information. The Company can give no assurance that forward-looking information, or the assumptions and expectations on which it is based, will prove to be correct. Envirotek Remediation does not undertake to revise or update any forward-looking information, except in accordance with applicable laws. Readers should not place undue reliance on forward looking information.

Management & Directors

Brian Leeners – Director, CEO & Corp. Secretary Tyler Thorburn – Director Maria Conejo - President Lew Dillman – Director Greg Pearson – Director Ed Low - CFO

Contact

EnviroTek Remediation Inc. 14[th] Floor – 1040 West Georgia Street Vancouver, B.C. V6E 4H8

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