Mirasol Resources Ltd. — Management Reports 2021

Feb 25, 2021

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Management Discussion and Analysis For Mirasol Resources Ltd.

(“Mirasol” or the “Company”)

INTRODUCTION

The Management Discussion and Analysis (“MD&A”) should be read in conjunction with the Company’s annual audited consolidated financial statements for the year ended June 30, 2020 which are publicly available on SEDAR at www.sedar.com. All financial information, unless otherwise indicated, has been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All dollar amounts referenced, unless otherwise indicated, are expressed in Canadian funds.

The following discussion of the Company’s financial condition and results of operations should be read in conjunction with its condensed consolidated interim financial statements and related notes for the period ended December 31, 2020.

This MD&A is prepared as of February 25, 2021.

COVID-19

In March 2020, the world health organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, economies, and financial markets globally. While it is not possible for the company to predict the duration or magnitude of the effects on the Company’s business, the policies implemented by the governments to limit the spread of the disease have impacted and at time delayed some of the Company’s exploration activities and business development initiatives.

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FORWARD LOOKING INFORMATION

This MD&A contains certain forward-looking statements and information relating to Mirasol that are based on the beliefs of its management as well as assumptions made by and information currently available to the Company. When used in this document, the words “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to Mirasol or its management, are intended to identify forward-looking statements. This MD&A contains forward-looking statements relating to, among other things, the Company’s goals and plans going forward, regulatory compliance, the sufficiency of current working capital, and the estimated cost and availability of funding for the continued exploration and development of the Company’s exploration properties. Such statements reflect the current views of Mirasol with respect to future events and are subject to certain risks, uncertainties and assumptions. The material factors and assumptions used to develop forward-looking information include, but are not limited to, the future prices of gold, silver and copper, success of exploration activities, permitting time lines, currency exchange rate fluctuations, government regulation affecting mining operations and policies linked to pandemics, social and environmental risks, the estimation of mineral resources, capital expenditures, costs and timing of the development of new discoveries, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage, continued availability of capital and financing, and general economic, market or business conditions.

Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change, except as may be required by applicable law.

Tim Heenan (MAIG), interim President for the Company, and a “Qualified Person” under National Instrument 43-101 (“NI 43-101”), has reviewed and approved the scientific and technical information in this MD&A. This technical information was prepared by the acting Qualified Person for the Company at the time of disclosure.

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CORPORATE AND STRATEGIC OVERVIEW

Mirasol (TSXV: MRZ) is a mineral exploration company targeting gold, silver and copper (“Au”, “Ag” and “Cu” respectively) deposits, in the Atacama-Puna region of northern Chile and Argentina, and in the Santa Cruz Province of southern Argentina. Both regions are highly prospective and host many large-scale precious and base metal mines, operated by some of the world’s largest mining companies.

Mirasol’s exploration strategy combines the joint venture business model with self-funded exploration and drilling of quality projects. This hybrid strategy was developed to accelerate the drill testing of key projects that host potential discoveries. Mirasol is currently advancing two self-funded projects, with drilling to start shortly at the Inca Gold project in Chile and drilling planned for the second calendar quarter at the Sascha Marcelina project in Argentina. In addition, Mirasol has six active option agreements in Chile and Argentina. Under these option agreements, Mirasol’s partners are funding all exploration and land holding costs, which allows the Company to focus its available resources on further exploration and business development opportunities, while retaining exposure to potentially significant discoveries.

Mirasol’s Exploration Focus

Mirasol’s geographic focus is in the Atacama-Puna region of Chile and in Santa Cruz province, Argentina, where the Company maintains a high-quality portfolio of exploration properties with the potential to deliver economic discoveries. This portfolio has been built from Mirasol’s project generation effort, which applies innovative, concept-driven geological techniques combined with follow-up ground fieldwork.

Chile/Argentina: Atacama – Puna Region

The Company’s portfolio of properties in the Atacama-Puna region is located on a 1,700 km-long segment of three north-south oriented prolific mineral belts that run through Chile and Argentina and host many world-class Cu-Au mines and occurrences of differing ages, spanning millions of years (“Ma”). From youngest to oldest, these belts are:

Miocene to Pliocene (Mio-Pliocene, 23-5 Ma): Targeting high-sulfidation epithermal (“HSE”) Au-Ag and porphyry Cu-Au-Molybdenum (“Mo”) deposits. In this belt north of the Maricunga Belt, Mirasol controls approximately 104,000 ha of granted exploration claims. Mirasol also presently holds approximately 23,000 ha of granted exploration claims in the southern part of the Mio-Pliocene aged Cu belt proximal to the border between Chile and Argentina.

Middle Eocene to Early Oligocene (Eocene-Oligocene 40-28 Ma): Targeting porphyry Cu-Au-Mo deposits. Mirasol presently holds approximately 15,000 ha of granted exploration claims in this belt.

Paleocene to Early Eocene (Paleocene, 66-53 Ma): Targeting low-intermediate-sulfidation epithermal Au-Ag and porphyry Cu-Au-Mo deposits. Mirasol presently controls approximately 18,000 ha of granted exploration claims in this belt.

Argentina: Santa Cruz Province

The Company’s portfolio of properties in Argentina is focussed in Santa Cruz Province and encompasses the area of the Deseado Massif, a 60,000 km[2] region of upper-middle Jurassic age volcanics that are recognized as having a high potential for hosting low- and intermediate-sulfidation epithermal Au-Ag deposits. Mirasol controls approximately 344,000 ha of exploration and mining claims in the province.

The Company continues to monitor the impact of the rapid currency devaluation and changing public policies. To date, these issues have not impacted Mirasol’s capacity to operate in Argentina and Mirasol continues to receive interest for its Argentine projects. The Company remains focused on securing new partner investments in its Argentine projects.

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JOINT VENTURE, EXPLORATION AND BUSINESS DEVELOPMENT ACTIVITIES

On March 19, 2020, Mirasol reported the temporary suspension of field activities at its projects in Chile and Argentina due to the COVID-19 pandemic. In the second half of 2020, the Company restarted its exploration at the Inca Gold project in Chile and completed a drill program at the Virginia project in Argentina. Mirasol continues to monitor the COVID-19 situation in Chile and Argentina, which have both been significantly impacted by the pandemic. Health and safety measures and protocols, which follow local guidelines (provincial in Argentina and national in Chile), have been put in place to protect the Company’s employees, contractors, and the communities surrounding the projects.

Activities on Projects Under Option Agreements

Chile

Altazor Au Project, Northern Chile: (Operated and funded by Newcrest Mining)

Altazor is a HSE Au project covering 33,230 ha located in an underexplored section of the MioPliocene age mineral belt. Mirasol completed a first-pass reconnaissance sampling over approximately 50% of the project area in 2017. These results showed comparable geology, alteration patterns and Au ppb level anomalous assays in soil and rock chip samples to those reported from surface sampling at Gold Fields’ Au-Ag HSE Salares Norte development stage project (Reserves: 3.5 Moz Au and 39 Moz Ag[1] ), which has a geological setting analogous to Altazor and is also located in the Mio-Pliocene mineral belt of Chile (news release October 11, 2017).

On November 21, 2017 Mirasol announced the signing of an option and farm-in agreement with Newcrest International Pty Limited (“NCM”). The agreement grants NCM the right to acquire, in multiple stages, up to an 75% interest in the Altazor project by making at least US$10 million in exploration expenditures and delivering a feasibility study. NCM may earn an additional 5% interest, if Mirasol requests that NCM funds the project to commercial production, thus reducing the Company’s retained project equity to 20%. The first-year spending commitment of US$1.5 million was directed to an aggressive property wide surface exploration and geophysics program for drill target definition. NCM is also required to pay US$1.9 million in staged option payments to Mirasol over the duration of the agreement.

On November 12, 2018 the Company reported that the initial twelve-month option stage of the Altazor agreement had been completed with NCM incurring exploration expenditures in excess of US$1.5 million. NCM exercised its option to enter the farm-in stage, triggering a US$500,000 payment to Mirasol.

In late 2019, Mirasol and NCM agreed to extend the first earn-in period from its initial four years to the earlier of five years and the completion of the US$8.5 million in exploration expenditures required to vest the initial 51% interest in the project. This amendment provides NCM with time to advance constructive community engagement prior to commencing drilling.

Exploration Results

Altazor has favourable infrastructure, being situated just 20 km south of 345 kV powerlines that follow International Highway Route 23, a paved road connecting northern Chile and Argentina. In common with other Mio-Pliocene mines and projects, Altazor is located at high altitudes of between 4,000 and 5,200 m; however, Altazor has good “drive-up access” via an open valley and a network of easily passable gravel tracks.

1 Goldfields Limited – Mineral Resources and Mineral Reserves Supplement to the Integrated Annual Report 2019

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Mirasol’s initial reconnaissance sampling, completed in 2017 prior to the NCM agreement, covered approximately 50% of the project area. A total of 216 stream sediment, 395 soil and 933 rock chip samples were collected and returned significantly anomalous Au, Ag, Cu, Pb, Zn and epithermal path finder elements, from sampling in the vicinity of mapped breccia bodies (news release October 11, 2017).

In late 2018, Mirasol reported the results from the 2017/18 exploration program completed under the exploration agreement with NCM to define targets for drill testing (news release November 12, 2018). The program included alteration analysis of soils, radiometric age dating,1,035 line-km ground magnetic geophysical survey, geological mapping, geochemical rock chip sampling over an area of 128 km[2] , a 2,030 sample, low detection limit soil grid covering 85.6 km[2] and a 66.9 line-km Controlled Source Audio-Magnetotellurics (“CSAMT”) resistivity geophysical survey. Integrated analysis of the combined data sets indicated Altazor to be a district-scale, zoned alteration system preserved at a level that could conceal HSE Au deposits beneath “barren” steam heated cap rocks and post mineral cover. This setting has also been recognized at recent multimillion-ounce discoveries elsewhere in the Mio-Pliocene mineral belt in Chile.

The significant areal extent of the alteration system at Altazor will require detailed systematic work, possibly over a number of seasons, in order to complete a first pass evaluation to define and prioritize targets for drill testing. However, the first season’s exploration successfully identified multiple compelling large-scale drill targets in three principal prospects that have alteration, geochemical and geophysical characteristics in common with the predrill target signatures of the Salares Norte and Alturas Au HSE discoveries.

During the first half of 2019, NCM reinitiated surface exploration of the large Altazor alteration system, aimed at exploring extensions of the prospects identified in the previous season’s program, to undertake first pass exploration of new claims staked at the end of last season, and to cover interpreted extensions of the alteration system. Fieldwork consisted of rock chip and alteration sampling as well as detailed geologic mapping.

A diamond drilling program, initially planned for the 2019/2020 field season, has been delayed due to the local community’s initial opposition to exploration activities, the broader civil unrest in Chile and restrictions implemented in response to the COVID-19 pandemic.

In December 2020, Mirasol was informed by NCM that due to the COVID-19 pandemic, activity will remain suspended at Altazor until at least August 2021 when COVID-19 conditions and local regulations will be reviewed by the parties. Mirasol and NCM are, however, taking this opportunity to proactively work together to advance community engagement, building support for future field activities.

Gorbea Au Project, Northern Chile: (Operated and funded by Newcrest Mining)

The Gorbea project comprises a package of mineral claims totaling 32,000 ha, including the Atlas Au-Ag and the Titan Au (Cu) target zones, located in the Mio-Pliocene age mineral belt of northern Chile. The project is located approximately 70 km north of the Salares Norte, at an altitude of 4,100 to 4,500 m ASL, and is easily accessible by seasonally maintained roads and gravel tracks.

The Gorbea project was subject to a previous joint venture with Yamana Gold Inc. (“Yamana”) that was terminated in April 2018, after the partner had incurred exploration expenditures in excess of US$8 million. Yamana’s exploration identified a significant body of HSE Au mineralization at the Atlas zone, which returned a best drill intercept of 114 m grading 1.07 g/t Au, including 36 m grading 2.49 g/t Au (news release September 11, 2017).

On January 28, 2019, the Company announced the signing of an agreement granting NCM the right to acquire, in multiple stages, up to a 75% interest of the Gorbea project by completing at least US$19 million in exploration expenditures and delivering a feasibility study as well as making staged option payments to Mirasol. Upon NCM earning a 75% interest in the project, Mirasol can elect to

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fund its share and retain a 25% project equity position, or exercise a one-time equity conversion option to convert up to 10% of its equity to a Net Smelter Returns (“NSR”) royalty at a rate of 2.5% equity per 0.5% NSR royalty (maximum 2% NSR royalty).

In December 2020, Mirasol was informed by NCM that due to the COVID-19 pandemic, activity will remain suspended until at least August 2021 when COVID-19 conditions and local regulations will be reviewed by the parties. As a consequence of these developments, NCM was unable to complete its 2,000 m drilling commitment and Mirasol and NCM agreed to amend the agreement, allowing NCM to enter the farm-in phase of the agreement by making a US$500,000 payment to Mirasol. However, NCM reported exploration expenditures of approximately US$9.3 million on the property, thereby exceeding the expenditure requirement over the initial 2-year option period.

To complete the first farm-in phase and vest an initial 51% in the Gorbea project, NCM is required to complete an additional US$15 million in exploration expenditures over 4.5 years and drill a minimum of 8,000 m on the project. The first 2,000 m of drilling, which was previously committed to be completed before the end of the option phase, is now to be completed before the end of 2021 and an additional 6,000 m must be completed before the end of 2022. Mirasol and NCM have agreed to review the COVID situation in Chile in August 2021 and jointly decide how to advance the project during the next field season.

Exploration Results

The Atlas target is centred on a sizable +20 km[2] HSE alteration system that hosts multiple Au and Ag prospective targets. The system exhibits many of the key geological and mineralization features characteristic of economic systems in the area, such as Salares Norte mine development project (Gold Fields), Alturas (Barrick Gold - Inferred Resource: 8.9 Moz Au[2] ) and La Coipa mine (Kinross Gold – Reserves: 0.9 Moz Au and 40.9 Moz Ag / Resources: 1.2 Moz Au and 28.7 Moz Ag[3] ), supporting its potential to host large-scale Au mineralization.

Some 35 diamond holes for 15,925 m have now been completed at the Atlas target by both NCM and Mirasol’s previous partner Yamana. This drilling has clearly demonstrated the presence of widespread mineralization within the central breccia complex. In addition, lithochemical studies on drill core samples indicate that the geochemical footprint is larger than the area covered by the drilling to date and is open to the north, east and southwest. With additional drilling, the mineralized system could increase in both size and geometry.

During the first half of 2019, NCM as operator of the Gorbea exploration program, completed 903 m of drilling in two holes, 50 km of CSAMT geophysics over the Atlas target, as well as reconnaissance mapping and sampling over several other target areas in the Gorbea property package. This 2019 drilling at Atlas targeted a coincident geophysical, geochemical and alteration anomaly at depth below a barren steam-heated leach cap, following up on previous encouraging drill results. This program was continued during the 2019/2020 field season, with NCM completing nine additional drill holes at the Atlas target, for a total of 4,523 m of diamond drilling.

Best results from NCM’s drilling:

ATL-DDH-001A: 0.52 g/t Au and 6.81 g/t Ag over 164 m (from 372 m), including:

• 1.07 g/t Au and 7.18 g/t Ag over 14 m (from 372 m); and

• 1.31 g/t Au and 7.82 g/t Ag over 16.5 m (from 402.5 m)

ATL-DDH-010: 0.54 g/t Au and 2.65 g/t Ag over 129 m (from 363 m), including:

• 1.4 g/t Au and 2.08 g/t Ag over 17 m (from 364 m), also including: o 2.09 g/t Au and 3.00 g/t Ag over 10 m (from 371 m)

• • 1.84 g/t Au and 3.57 g/t Ag over 3 m (from 425 m)

2 Barrick Gold Corporation - Annual Information Form for the year ended December 31, 2019

3 Kinross Gold Corporation - 2020 Annual Mineral Reserve and Resource Statement

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Mineralization encountered to date at the Atlas target is associated with phreatomagmatic and hydrothermal breccias and intensely advanced argillically altered porphyritic andesite, often where a vuggy silica texture has developed rendering the rock more amenable to allow mineralized fluids to precipitate and form potential ore bodies due to the increased permeability. The area has been deeply oxidized to depths of over 400 m, which is potentially advantageous for the development of favorable metallurgy.

The initial wide-spaced drilling at Atlas was designed to delineate the outer limits of this large mineralized system and define the distribution of the outcropping breccia targets that are favourable hosts for Au mineralization. Exploration efforts to define potential higher-grade Au zones for drill testing, will be guided by the targeting of resistive units as identified by CSAMT geophysics in conjunction with data from structural mapping, geochemical surveys, alteration and alunite composition vectoring to potential higher grade mineralized pods or feeder zones.

NCM is to complete at least 2,000 m of drilling at the Gorbea project in 2021, which will include an initial drill test of the El Dorado prospect, a newer target that has not been previously drilled.

Coronación Cu-Au Project, Northern Chile: (Operated and funded by First Quantum Minerals)

On October 7, 2019, Mirasol announced the signing of a definitive agreement with First Quantum Minerals (“FQM”) for its 1,200 ha Coronación Cu-Au project, located northern Chile. FQM was granted the option to earn an 80% interest in the project over six years, by making annual cash payments totaling US$875,000, completing at least 10,000 m of drilling and delivering a NI 43-101 compliant Prefeasibility Study Report. Following the completion of the 80% earn-in, FQM will have a one-time option to acquire the remaining 20% interest on terms to be negotiated between the parties at that time. If this option is not exercised, the parties will form a participating joint venture to further fund the development of the project. FQM is the project operator.

Exploration Results

The project is located on a major NW structural trend associated with several Andean porphyry Cu deposits. Exploration completed by Mirasol indicates the potential presence of a porphyry/breccia system intruding a layered Miocene aged volcanic sequence of pyroclastic units intruded by dacite domes. Two distinct alteration areas have been interpreted using Analytical Spectral Device (“ASD”) analysis, which display affinities to a HSE system to the east with the western area displaying a more typical porphyry deposit style of alteration. Geochemical sampling has also defined a large 600 by 800 m Cu-Mo geochemical anomaly in the western area within the overall 3 by 2.5 km alteration halo.

During the last quarter of 2019, FQM completed an initial exploration program including surface mapping, geochemical sampling, geophysical surveys and collection of samples for age dating. FQM has defined drill targets and is committed to drilling 3,000 m during the current field season. FQM is working to receive the required permits and approval for this program.

Nord Polymetalic Project, Northern Chile: (Operated and funded by Encantada)

On October 31, 2019, Mirasol entered into a memorandum of understanding with Mineria Activa SpA (“Mineria”) for its Nord project in northern Chile. On September 8, 2020, the Company announced the signing of a definitive option agreement with Encantada SpA (“Encantada”), an affiliate of Mineria. Mineria is a mining focused Chilean private equity fund with over US$150 million in assets under management. The project was originally staked by Mirasol as part of its Atacama-Puna generative program and lies adjacent to the Ciclon-Exploradora polymetallic-epithermal project, which is currently being advanced toward production by Mineria.

Mirasol has granted to Encantada the option to earn 100% of the Project over four years by making annual cash payments totaling US$3 million and incurring at least US$500,000 in exploration

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expenditures over the first two years of the option period. Upon completion of the option, Mineria will earn a 100% interest in the project and Mirasol will retain a 2% NSR royalty, of which 0.5% can be bought back by Mineria within eight years for US$3 million.

Exploration Results

The 1,967 ha Nord project is located in Region III of Chile within the Exploradora District, which lies on the western side of the N-S trending regional scale Domeyko fault zone, and within the world class Eocene-Oligocene porphyry Cu belt. Based on Mirasol’s initial surface exploration, the project has the potential to host two main styles of mineralization.

The first type is characterized by large vein-type mineralization injected into fault structures hosting polymetallic (Cu, Zn, Pb, Ag, Au) mineralization as seen in the active small-scale mines located near the northeast corner of the claim boundary and at Mineria’s Ciclon-Exploradora polymetallic development project, which is located adjacent to the eastern blocks of the project. While surface geochemistry has returned only low to anomalous results, Mineria’s understanding will be valuable to define drill targets for potential extensions or parallel structures to the known mineralization (news release October 31, 2019).

The potential for porphyry Cu-Au style mineralization is also present on the project. In the central part of the property a large alteration zone displays patterns of quartz-sericite and advanced argillic alteration with thin tourmaline veinlets, which are characteristic of some porphyry-style alteration assemblages.

Encantada intends to complete an initial six-month fieldwork program, including geology and alteration mapping as well as geophysical surveys and trenching. The program is aimed at defining the structural corridors and intersections that may host epithermal deposits and potentially related porphyry style targets. If results are positive, an initial scout drill program, expected to occur in the second quarter of 2021, will be completed to test prioritized targets.

Rubi Project, Northern Chile: (Operated by Mirasol, funded by Mine Discovery Fund)

On October 15, 2020, Mirasol announced a definitive option agreement for its Rubi project in Chile with Mine Discovery Fund Pty Ltd (“MDF”), a private Australian company. MDF is fully funded to complete the committed 2,000 m drill program at the project. It is expected that drilling will occur in the second quarter of 2021, following completion of the permitting process, which is underway.

Mirasol has granted MDF the option to earn-in to 80% of the Project over eight years. MDF has committed to funding a 2,000 m drill program. Following the completion of this initial commitment, MDF is required to spend a minimum of US$1 million per year in exploration expenditures over the term of the agreement. In addition, and to exercise the option, MDF must deliver a positive NI 43101 compliant Prefeasibility Study Report on the project. Mirasol will be the operator during the option period.

Following the completion of the 80% earn-in, MDF will have a one-time option to acquire the remaining 20% interest on terms to be negotiated between the parties. If this option is not exercised, the parties will form a participating joint venture to further fund the development of the project. If either party’s interest in the joint venture is diluted to 10% or below, it will convert to a 1.5 % NSR royalty. The non-diluting partner may buy back 0.5% of the NSR royalty for the fair market value as determined by a qualified independent valuator.

Exploration Results

The 7,543 ha Rubi project is located within the Paleocene age porphyry belt of northern Chile that hosts a number of significant, currently producing, porphyry Cu deposits. The project lies at relatively

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low elevation (1,900-2,100 m), within 20 km of the El Salvador and Potrerillos porphyry Cu-Mo-Au mines and with good access to port facilities at Chanaral approximately 80 km to the west.

Two targets have been identified at the Rubi project, the Lithocap (“Lithocap”) and Zafiro (“Zafiro”) targets.

Lithocap covers a covers a 3.5 by 2.0 km area centred on a large, deeply weathered, advanced argillic alteration zone that is surrounded by gravel cover with thicknesses less than 50 m as modelled from a gravity survey. Large and productive porphyry Cu deposits can be found below or adjacent to the type of lithocap alteration zones present at Rubi, as is evidenced at the El Salvador deposit. At Lithocap, previous explorers have drilled peripheral to, but not beneath or adjacent to, the post-mineral gravel covered western edge of the Cu, and locally strong Mo, anomaly. Mirasol’s mapping and re-logging of previous drill holes have defined veining and brecciation with anomalous Cu-Mo mineralization and alteration patterns that indicates potentially concealed porphyry mineralization to the north and northwest of previous drill holes (news release October 15, 2020). This combined information suggests the presence of a deep weathering profile that could potentially overlie supergene enriched and sulfide mineralization, as indicated by an Induced Polarization (“IP”) geophysical chargeability anomaly, which remains open to the north. This type of deep weathering in porphyry environments in northern Chile is often conducive for the development of supergene enriched Cu mineralization akin to the nearby El Salvador mining district.

Zafiro features a 2.8 by 2.2 km gravel covered area characterized by a subtle circular magnetic high surrounded by an incomplete, doughnut-shaped magnetic low. This magnetic signature may be indicative of a large gravel-covered intrusive with a pyritic alteration halo. The gravel cover in this area ranges from approximately 25 m to more than 200 m in thickness, concealing the central target area. However, a large canyon 1 km to the north of the target cuts through the gravel profile exposing the basement rock. Mirasol’s stream sediment sampling of gullies, located immediately north to northwest of the Zafiro target, have returned widespread and strongly anomalous Cu over 2,400 m with multiple results in the 500 ppm to 1,530 ppm range, suggesting either an “exotic” source of Cu in the gravels and/or a primary porphyry source for the Cu in the gravel-covered basement. Highgrade “exotic” Cu or a supergene enriched porphyry are both attractive exploration targets at Zafiro. Significant ore bodies of these types of mineralization occur at the nearby El Salvador mining district.

Mirasol, as operator, is working toward securing the required permits and approvals to complete an initial 2,000 m drill program, scheduled for calendar Q2 2021.

Argentina

Virginia Ag Project, Santa Cruz: (Operated by Mirasol, funded by Silver Sands Resources)

On February 27, 2020, Mirasol announced the signing of a Letter of Intent with Golden Opportunity Resources Corp. (later renamed Silver Sands Resources Corp., “Silver Sands”) for its Virginia Silver project in the Santa Cruz Province of Argentina. The Company signed a definitive agreement on May 20, 2020, following the completion of a $2.2 million financing by Silver Sands.

Mirasol has granted Silver Sands the option to acquire 100% of the Virginia project over three years by making annual share issuances totalling 19.9% of the shares outstanding at the time of vesting, and completing US$6 million in exploration expenditures, of which US$1 million is committed. Mirasol will be the operator of the project during the option period and receive a management fee.

Upon completion of the option, Silver Sands will have earned a 100% interest in the project and Mirasol will retain a 3% NSR royalty, of which 1% can be bought back by Silver Sands for US$2 million.

Exploration Results

Mirasol discovered the Virginia Ag deposit in 2009, following-up a high-priority reconnaissance target identified by its generative team. Mirasol’s exploration defined high-grade, intermediate sulfidation

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epithermal style mineralization in a series of prominent outcrops of vein-breccia that are associated with a rhyolitic volcanic flow dome field. Rock chip and saw cut channel geochemical sampling over these outcrops defined significant strike lengths of continuously mineralized vein-breccia. From 2010 to 2012, Mirasol completed a series of drill programs for 23,318 m of diamond core in 223 holes, designed to test the potential of the mineralized structures to a maximum depth of 266 m. This work was followed by the filing of an amended NI 43-101 Resource Estimate report in 2016 defining seven outcropping bodies of high grade Ag mineralization, constrained[4] within conceptual pits, with an indicated mineral resource of 11.9 million ounces of Ag at 310 g/t Ag and a further inferred 3.1 million ounces of Ag at 207 g/t Ag (see amended NI 43 -101 technical report filed on SEDAR on February 29, 2016).

Later that year, Mirasol reported that preliminary prospecting of new claims had identified quartz vein and vein-breccia rock float, scattered along a 2 km trend. With a strong belief in the exploration potential of the Virginia district, Mirasol further expanded its property holdings in 2017 with an extra 27,017 ha of claims to the south of the limit of previous drilling. In May 2018, Ag assay results were reported from the additional prospecting of three new target areas, suggesting the potential for an unrecognized, shallow soil covered, high grade mineralization that would expand the potential of the Virginia Ag project.

In October 2020, the Company announced the start of first phase 2,500 m partner-funded drill program. This initial diamond drill program with Silver Sands was designed to expand the resource by testing both gaps and extensions to the principal veins as previously defined at Naty Extension, Ely Central, Martina and Magi veins, as well as newly identified vein structures at the Margarita, Patricia and Daniela veins. The drill targets were located to the north, south and east of the current Virginia resource area and represent high potential drill-ready zones within the overall extensive vein field (news release October 29, 2020).

Mirasol’s exploration team has also completed more than 65 line-km of Pole Dipole IP survey in key target areas, and opened 2,500 m of mechanically excavated trenches, of which with more than 2,000 m have been mapped and sampled. These programs were designed to better define drill hole locations and to identify other potentially buried targets.

In January and February 2021, Mirasol reported the results from the 2,831 m Phase I exploration program completed in calendar Q4 2020 at the Virginia project. The drill holes completed at Martina, Julia South and Ely Central clearly show the potential for significant new mineralization outside the current resource area. Mirasol and Silver Sands are continuing to drill extensively with the objective of expanding the mineralized footprint and potentially upgrading the resource in late 2021 (news release January 21, 2021 and February 23, 2021). Notable intersects from the Phase I program include:

• Martina: 33.5 m at 198.51 g/t Ag, including 17.7 m at 316 g/t Ag

• Ely Central: 9.25 m at 233.54 g/t Ag, including 4.5 m at 441.71 g/t Ag

• Julia South: 8.50 m at 123.43 g/t Ag, including 3.90 m at 168.34 g/t Ag

• Martina SE: 16.05 m at 63.97 g/t Ag including 0.90 m at 352.32 g/t Ag

A Phase II program for 2,700 m was initiated in late January to expand and follow up on the Phase I program at the Virginia zone. In addition, 3 drill holes are planned at the Santa Rita target in the northern part of the property, where prior exploration by Mirasol defined an open ended 3,500 m long

4 The Qualified Persons responsible for this amended Technical Report were commissioned by Mirasol Resources Ltd. to review all geologic, geochemical, geophysical, surface trenching, diamond drill core sampling and metallurgical recovery data pertaining to the Virginia Project for the purpose of completing a Mineral Resource estimate in accordance with the guidelines of the Canadian Institute of Mining and Metallurgy (CIMM). For calculating conceptual pits, a Ag price of US$20 per ounce was used. Sensitivity analyses by the Qualified Persons indicate that the Mineral Resources are not particularly sensitive to operating costs or Ag price fluctuations. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.

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by 500 m wide northwest orientated trend containing mapped breccia veins with Ag epithermal mineralization generally less than 10 m wide (news release February 2, 2021).

Exploration Activities on 100% Owned or Controlled Claims

Chile

Inca Gold Au-Ag Project, Northern Chile

In early 2020, Mirasol announced the signing of an option agreement with subsidiaries of Newmont Mining Corporation (“NEM”) to acquire the Inca Gold project in northern Chile (news release January 13, 2020). This agreement gives Mirasol the opportunity to add to its portfolio a district-scale and underexplored, intermediate sulfidation epithermal project in the prolific Au, Ag and Cu Paleocene belt of Chile. The project hosts multiple attractive Ag-Au targets that have never been drill tested. The project builds upon the Company’s strategy to fund drilling on high quality deposit targets with favorable infrastructure.

Mirasol was granted the option to earn 100% of the project over five years, subject to a 1.5% NSR royalty, by drilling 1,000m over two years and incurring US$3 million in exploration expenditures over five years. Mirasol may terminate the agreement at any time after the completion of the initial 1,000m drilling commitment.

Upon completion of this option, NEM will have the right to earn back 70% of the project in two stages. In stage 1, NEM will have to make a cash payment of US$3 million to Mirasol and fund $6 million in exploration over three years. In stage 2, NEM will have to deliver a NI 43-101 compliant Prefeasibility Study on a resource of no less than 2 million ounces of Au equivalent using agreed upon cut-off grades or incur an additional US$21 million in exploration expenditures over six years. If NEM completes stage 1 but not stage 2, Mirasol will retain 100% of the project and NEM will be granted an additional 0.5% NSR royalty, which may be bought back by Mirasol at fair market value.

Exploration Results

The 16,300 ha Inca Gold project is located in Region III of Chile, approximately 100 km north of Copiapo, and within the Inca Del Oro mining district that hosts both Santiago Metals Delirio Cu-Au mine and PanAust/Codelco’s Inca de Oro porphyry Cu-Au deposit. Inca Gold lies between 2,000 to 3,000 m ASL and has good access allowing for year-round exploration. Mirasol’s initial exploration at the Sandra prospect has defined five Ag-Au prospects, none of which have been drill tested. Mirasol has also staked 2,400 ha of exploration claims directly to the south of the Sandra target and plans to complete a first pass evaluation of these new claims during the current field campaign. Local geology on the southern portion of the project is characterized by a thick volcanic-sedimentary sequence consisting of ignimbrites, lava flows, and volcanic breccias. The northern portion consists of an older sequence of intensely folded and faulted ignimbrites and volcanic breccias. These two geologic domains are separated by a regional NE lineament mostly covered by Atacama gravels.

The Sandra prospect is located at the southwestern border of the property and is currently the betterknown target. Here a large hydrothermal vein system with development of intermediate sulfidation epithermal (“ISE”) mineralization has been recognized.

In November 2020, Mirasol reported on the initial surface program which focused on the Sandra prospect. Mirasol’s initial surveys included 1:2,000 scale geological mapping of the quartz vein swarms, systematic rock sawn geochemical channel sampling across the key veins and reconnaissance geochemical rock chip sampling over outlying areas of the prospect. In total, 498 samples were collected from 138 individual sawn channel cuts. Seven zones of veining and anomalous geochemistry have been outlined within the Sandra prospect, with three of these targets have been prioritized for testing by an initial 1,500 m drill program (news release November 25, 2020).

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The diamond drilling program, planned for Q1 2021, will target three of the most prospective target zones along the principal Sandra trend (Lomo Ballena, Veta Escuela and Veta Valle), initially testing to a depth of 80 to 200 m vertically below the surface exposures. These target zones, which represent the deepest eroded parts of the outcropping system (<2,450 m ASL), show an overall increase in Au and Ag grades when compared with the higher elevation surrounding areas, and are considered geologically, structurally and geochemically strong targets for this initial drill program. Five diamond drill holes have been selected as initial priorities and based on results, an additional series of drill holes are planned to follow along strike, down-dip, and to step out to other prospective epithermal structures in the system. Results will be reported when they are available.

In January 2021, Mirasol reported that following approval of the Company’s environmental report, mobilization has commenced for the 1,500 m Phase I diamond drill program at the project. Site preparation is underway for the planned start to drilling in late February 2021.

Argentina

Sascha – Marcelina Au-Ag Project, Santa Cruz

Mirasol staked the Sascha project in 2003 to secure the 5 km long Sascha Vein Zone, which was partially drill tested while under an exploration agreement with Coeur Mining (“Coeur”) from 2006 to 2009. Coeur terminated the agreement in 2009 and returned 100% of the project to Mirasol. On January 23, 2019, Mirasol signed an option to purchase agreement with a private mining company for the 5,700 ha Marcelina exploration claims, consolidating for the first time the full district under one company.

Mirasol can acquire 100% of the Marcelina claims by making staged option payments totalling US$3.4 million over four years and granting a 1.5% NSR royalty. US$3.15 million of the option payments are due on the 4th anniversary. Mirasol committed to a minimum US$300,000 exploration spend during the first three years of the option period.

Mirasol has completed an integrated interpretation of Mirasol’s district-scale exploration data sets collected prior to 2009. Anomalous rock chip Au-Ag assays and Aster satellite alteration anomalies define a 16.5 x 4.0 km (65 km[2] ) hydrothermal “footprint” to the district, showing a large-scale, zoned alteration system characteristic of a sizable Au-Ag LSE system. Five, multi-kilometre long, mineralized vein and silicified breccia trends have been recognized to date across the consolidated district. The trends traverse the Pellegrini Silica Cap, or outcrop through post mineral gravel and basalt cover that surrounds the Silica Cap (news release January 25, 2020).

The geologic and geomorphic setting of the Pellegrini Silica Cap and related silica structures and veins is analogous to the setting of the Cerro Negro mine operated by Newmont, which is a high grade Au-Ag, low cost underground mine, located approximately 100 km to the north of the SaschaMarcelina project (Reserves: 2.6 Moz Au and 21.34 Moz Ag / Resources: 2.12 Moz Au and 10.9 Moz Ag[5] ).

Interpretation of mapped volcanic and sedimentary stratigraphy, Au-Ag and multielement geochemistry and alteration mineralogy shows that different levels of the epithermal system outcrop across the district, exposing what are interpreted to be varying levels of the mineralized column of an Au-Ag LSE system.

The surface exploration activities completed on the Sascha-Marcelina project (news release July 18, 2019) include geological mapping aided by the acquisition of drone supported high-resolution base images, detailed rock chip geochemical sampling, extensive soil grid geochemical sampling (with PXRF sourced geochemistry) and the acquisition of alteration data using in-house handheld ASD technology on all the rock chips and soil samples collected to date. This recent work has defined a

5 Newmont Corporation - 2/13/2020 Press Release

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large alteration footprint located in the immediate vicinity of the Marcelina claims, hosting an epithermal silica vein system with multiple mineralized trends. Within this area, new prospects have been recognized, with the “Estancia Trend” and the “Igloo Trend”, both located in close proximity to an extensive Pellegrini Silica Cap, which is interpreted as representing the preserved fossil paleosurface of a low sulfidation system.

To date, a total of 422 new rock chip samples have been collected from within the Marcelina area with assays averaging 0.25 g/t Au and 2.46 g/t Ag and up to 27.7 g/t Au and 121 g/t Ag, taken from epithermal silica vein/veinlets and silica-hematite hydrothermal breccias. These precious metal values are accompanied by highly elevated epithermal pathfinder elements including arsenic, antimony, tellurium, and anomalous lead and zinc (news release July 18, 2019)

Mirasol has also completed further surface exploration including a total of 40 line-km of IP geophysics survey over the three principle areas - the Estancia Trend (20.5 line-km), the Pellegrini silica cap (14.2 line-km) and the Igloo trend (5.35 line-km).

The Company has integrated these results, along with those from the recent mapping and sampling campaigns, to define drill targets. A self-funded 2,600 m drill program has been approved for the Sascha-Marcelina project and is scheduled to start in March 2021. This program is designed to complete an initial test of the best targets on the project, principally at the Estancia Trend, Pellegrini Silica cap and Igloo Trend.

Other Properties

Mirasol holds several additional drill-ready and early-stage exploration properties prospective for Au, Ag and Cu mineralization in southern Argentina and northern Chile. The Company has signed confidentiality agreements, distributed data sets and conducted field reviews with selected companies with the objective of securing potential new partnerships for these properties.

In November 2020, Mirasol introduced and reported initial exploration results from its 100% owned Nandi Cu project, located in the Paleocene porphyry Cu belt in northern Chile. Nandi was staked by Mirasol through its project generation program and comprises approximately 5,000 ha of exploration claims, located 30 km northwest of BHP’s Escondida Cu mine and 63 km southeast of Glencore’s Lomas Bayas Cu mine. Nandi is favorably situated in the area of intersection between the continental-scale north-south trending Domeyko Fault System and the northwest trending Archibarca Lineament, a regional structural framework that, for example, controlled the emplacement of the giant Escondida porphyry Cu deposit cluster. The project also benefits from easy access along the asphalt highway from the port city of Antofagasta to the Escondida mine, lying at a relatively low altitude of 1,800 m above sea level. Initial exploration results have been encouraging with multiple targets for potential porphyry Cu mineralization defined, which merits follow up field work before drill testing (news release November 5, 2020).

In December 2020, Mirasol announced the signing of two letters of intent (“LOI”) with an arm’s length third party regarding potential transactions in respect of its Homenaje and Nico projects in Santa Cruz province, Argentina. The Homenaje LOI contemplates Mirasol granting an option for the third party to earn a 75% interest in the project over six years by delivering of a positive Prefeasibility Study (as defined by NI 43-101). In addition, an initial US$1,400,000 work program must be completed over the first 2.5 years, including at least 2,500 m of drilling. In respect to Nico, Mirasol is to transfer its 100% interest in the Nico property to the acquiror in return for a 1.5% NSR royalty. If production from the property has not commenced by the end of the 3[rd] year, Mirasol will have the right to regain full ownership of the property at no cost. The transactions contemplated in both LOIs are subject to due diligence, board approvals and finalization of definitive agreements. Mirasol has granted a 90-day exclusivity period to negotiate and finalize these transactions (news release December 28, 2020).

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HIGHLIGHTS FOR THE YEAR JULY 1, 2020 TO FEBRUARY 25, 2021

FINANCIAL CONDITION

Mirasol remains in a strong financial position with cash and cash equivalents of $13,191,975 and working capital of $13,423,352 as of December 31, 2020.

During the six months ended December 31, 2020, the Company incurred total company-wide net cash expenditures of $2,069,856. The financial statements show a total expenditure of $2,061,850 of which non-cash items such as share-based payments and depreciation totalled a recovery of $8,006.

For the period ended December 31, 2020 the total net cash expenditure was distributed between head office corporate spending of $753,164, inclusive of officer’s salaries, board fees, business development, corporate administration, investor relations and regulatory compliance; and a total net exploration expenditure of $1,316,692 (table 1).

The annual level of spending by the Company is determined by its ability to secure financing through the sale of its securities, sales of assets and exploration agreements with its industry partners.

EXPLORATION FINANCIAL SUMMARY

The Company’s total exploration costs include generative exploration, property retention costs of the exploration project portfolio, costs associated with preparing projects for joint venture, in-country operation and management, and local value added taxes (“VAT”). For the period ended December 31, 2020, Mirasol invested $971,838 on exploration in Chile and $344,854 in Argentina (table 1).

The Company received $1,385,245 in cost recoveries during the period ended December 31, 2020; including claims fees, salaries of Mirasol employees seconded to the partner-funded programs and other operational costs that are covered by the partners under the terms of agreements. Mirasol earned $77,937 of management fee income during the period. The Company also received $132,192 in option payments from its Coronación and Nord projects, (table 1).

CORPORATE MATTERS

The shareholders of the Company represented at the 2020 Annual General Meeting, which was held on July 8, 2020, elected Norman Pitcher, Dana Prince, Nick DeMare, John Tognetti, Patrick Evans and Diane Nicolson as directors of the Company for the ensuing year. Further, the shareholders also approved: (i) the reappointment of Davidson & Company as the Company’s independent auditor; (ii) the Stock Option Plan; and (iii) the Restricted Share Unit Plan, all as described in the Information Circular prepared for the meeting.

During a board meeting held on July 15, 2020, the board of directors reappointed the following officers of the Company: Norman Pitcher, President and CEO; Dana Prince, Chairman; Mathew Lee, CFO; Timothy Heenan, Country Manager; Jonathan Rosset, VP Corporate Development and Gregory Smith, Corporate Secretary.

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On August 25, 2020, Mr. Dana Prince, advised the Board that he will be retiring as Chairperson effective August 31, 2020. A process to identify a successor is underway. Mr. Prince also resigned as a director on October 2, 2020. Patrick Evans was appointed Chairperson.

On September 28, 2020, Mr. Norm Pitcher, advised the Board that he will be leaving to pursue other opportunities. A process to identify his successor is underway. On October 5, 2020, the Company’s Chairperson, Patrick Evans, was appointed interim CEO pending the appointment of a successor.

On October 19, 2020, the Company announced its intention to make a normal course issuer bid (the "NCIB") to purchase for cancellation, from time to time, as it considers advisable, up to 3,900,000 of its issued and outstanding common shares, being approximately 7.2% of the Company's currently outstanding common shares and approximately 9.93% of the Company's Public Float (as that term is defined in the policies of the TSX Venture Exchange has approved the commencement of the NICB, which commenced on October 22, 2020, and will terminate on October 21, 2021, or such earlier time as the NCIB is completed or at the option of the Company. As part of the NCIB, as of December 31, 2020 the Company has repurchased 174,500 of its common shares, and 59,500 common shares were cancelled. Subsequent to the period ended December 31, 2020, the Company has repurchased an additional 41,000 common shares, and cancelled 115,000 common shares.

On December 23, 2020, Mirasol announced that the Company has received multiple unsolicited expressions of interest from third parties seeking to acquire the Company on an at-market zeropremium basis. The Board of Mirasol has given careful consideration to these expressions of interest and has determined that it is in the best interest of shareholders that the Company remain independent and focused on its current business plan.

On December 31, 2020, Max Pinsky was appointed as Corporate Secretary for the Company on the retirement of Gregory Smith.

On January 5, 2021, Tim Heenan was promoted to the position of VP Exploration. Mr. Heenan is one of the original founders of Mirasol, was a director for more than thirteen years and has worked exclusively for Mirasol since its inception in 2003. He was directly involved in several discoveries, including the famous Cerro Negro Mining District in the Province of Santa Cruz, Argentina, and several other high-profile projects throughout the region.

On February 3, 2021, Tim Heenan was appointed to the position of Interim-President pending the appointment of a fulltime President and CEO, with Patrick Evans serving as Executive Chair during this period.

RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED DECEMBER 31, 2019 AND 2020

The Company’s net loss for the six months ended December 31, 2020 (“2020”) was $2,405,107 or $0.04 per share compared to a net loss of $3,103,793 or $0.06 per share for the six months ended December 31, 2019 (“2019”), a decrease of $698,686.

The decrease in net loss during 2020 is due to a combination of a decrease in administration costs, overhead costs related to the exploration activities, investment income, and a foreign exchange gain.

The Company’s total operating expenses were $2,061,850 and $3,077,178 for the six months ended December 31, 2020 and 2019, respectively.

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The Company recorded interest income of $64,999 from its investments during the period ended December 31, 2020, as compared to $161,121 during the same period of last fiscal year. The Company also recorded an unrealized gain on its marketable securities of $486,885 as compared to $nil during the same period of last fiscal year.

The Company recorded a loss of $874,660 on foreign exchange from conversion of funds during the period ended December 31, 2020 as compared to a loss of $163,353 during the same period of last fiscal year.

Share-based payments decreased to a recovered amount of $59,528 in 2020 from an expense of $198,585 in 2019. The recovery is due to the reversal of previously recognized share-based payments from options that were cancelled during the period. Depreciation expense increased to $51,522 in 2020 from $32,536 in 2019. Both are non-cash items.

Other notable variances include a decrease in exploration expenditures to $1,316,692 in 2020 as compared to $1,764,750 in 2019 (table 1); a decrease in business development, marketing and investor communications expenses to $141,835 in 2020 from $285,335 in 2019; a decrease of management and directors fees to $393,778 in 2020 as compared to $421,885 in 2019; a decrease in office administration, filing fees, and travel expenses to $132,999 in 2020 compared to $282,856 in 2019; and a decrease in professional fees to $84,552 in 2020 compared to $91,231 in 2019 from various consultants.

Please refer to the Company’s condensed consolidated interim financial statements for a breakdown of the Company’s general and administration expenses for the six months ended December 31, 2020 and 2019.

The following tables provides changes in exploration expenditures and cost recoveries in the current period presented compared to the same period in the prior fiscal year:

Table 1: Summary of exploration expenditures for the six months ended December 31, 2020 and 2019.

Table 1:Summary of explor	ation expenditures for the	ation expenditures for the	six months ended Decembe	r 31, 2020 and 2019.
Table 1 - Exploration summary	Total Chile		Total Argentina	Total Mirasol
Six months December 31,	2020 2019		2020 2019	2020 2019
Exploration costs Exploration costs recovery Option income Management fees Corporate Operation	743,661 1,203,644 (31,556) (608,252) (132,192) (64,321) (1,517) (35,934) 393,442 519,142		1,442,154 281,417 (1,353,689) (1) - - - (76,420) - 332,809 469,054	2,185,815 1,485,061 (1,385,245) (608,252) (132,192) (64,321) (77,937) (35,934) 726,251 988,196
Net Exploration expenses	971,838	1,014,279	344,854 750,471	1,316,692 1,764,750

(1) During the period ended December 31, 2020, the Company received USD$750,000 from Silver Sands as part of the option agreement. Funds were received in Canada and transferred to the Company’s subsidiary in Argentina. Once the funds were received in Argentina, the Company used a mechanism whereby the US funds are used to buy and then sell government bonds denominated in pesos. The buy and sell of the bond creates an implied exchange rate, which diverges significantly above Argentina’s official fixed exchange rate. Accordingly, a recovery of $1,353,689 has been recorded under Virginia project in Argentina, (note #1 in the breakdown by projects for Argentina’s exploration and evaluation expenses table).

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FOR THE THREE MONTHS ENDED DECEMBER 31, 2019 AND 2020

The Company’s net loss for the three months ended December 31, 2020 (“2020”) was $1,062,288 or $0.02 per share compared to a net loss of $1,747,754 or $0.04 per share for the three months ended December 31, 2019 (“2019”), a decrease of $685,466.

The decrease in net loss during 2020 is due to a combination of a decrease in administration costs, overhead costs related to the exploration activities, investment income, and a foreign exchange gain.

The Company’s total operating expenses were $717,710 and $1,620,479 for the three months ended December 31, 2020 and 2019, respectively.

The Company recorded interest income of $22,108 from its investments during the period ended December 31, 2020, as compared to $160,748 during the same period of last fiscal year. The Company also recorded an unrealized gain on its marketable securities of $262,169 as compared to $nil during the same period of last fiscal year. The Company recorded a loss of $618,776 on foreign exchange from conversion of funds during the period ended December 31, 2020 as compared to a loss of $275,990 during the same period of last fiscal year.

Share-based payments decreased to a recovered amount of $154,483 in 2020 from an expense of $108,712 in 2019. The recovery is due to the reversal of previously recognized share-based payments from options that were cancelled during the period. Depreciation expense increased to $29,147 in 2020 from $16,562 in 2019. Both are non-cash items.

Other notable variances include a decrease in exploration expenditures to $536,307 in 2020 as compared to $908,084 in 2019 (table 2); a decrease in business development, marketing and investor communications expenses to $58,672 in 2020 from $153,631 in 2019; an decrease of management and directors fees to $162,208 in 2020 as compared to $215,310 in 2019; a decrease in office administration, filing fees, and travel expenses to $60,028 in 2020 compared to $146,209 in 2019; and an decrease in professional fees to $25,831 in 2020 compared to $71,971 in 2019 from various consultants.

Please refer to the Company’s condensed consolidated interim financial statements for a breakdown of the Company’s general and administration expenses for the three months ended December 31, 2020 and 2019.

The following tables provides changes in exploration expenditures and cost recoveries in the current period presented compared to the same period in the prior fiscal year:

Table 1: Summary of exploration expenditures for the three months ended December 31, 2020 and 2019.

Table 1:Summary of explora	tion expenditures for the t	hree months ended Decem	ber 31, 2020 and 2019.
Table 2 - Exploration summary	Total Chile	Total Argentina	Total Mirasol
Three months December 31,	2020 2019	2020 2019	2020 2019
Exploration costs Exploration costs recovery Option income Management fees Corporate Operation	280,350 354,272 (31,556) (98,698) - (64,321) (1,517) 2,800 198,571 300,325	1,294,122 173,248 (1,261,794) - - - (67,230) - 125,361 240,457	1,574,472 527,520 (1,293,350) (98,698) - (64,321) (68,747) 2,800 323,932 540,783
Net Exploration expenses	445,848 494,378	90,459 413,705	536,307 908,084

A breakdown by country and group of projects of the Company’s exploration and evaluation expenses for the three and six months ended December 31, 2020 and 2019:

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2020 2019 2020 2019 For the Three Months Ended December 31, For the Six Months Ended December 31,

Altazor Camp and general Contractors and consultants Mining rights and fees Travel & accommodation Gorbea Package Camp and general Contractors and consultants Mining rights and fees Exploration costs recovered Travel & accommodation Resource Studies Coronation Camp and general Contractors and consultants Option income Mining rights and fees Professional fees Travel & accommodation Indra_Agni Assays and sampling Camp and general Contractors and consultants Drilling Environmental Exploration costs recovered Mining rights and fees Resource Studies Travel & accommodation Los Amarillos (Enami) Assays and sampling Camp and general Contractors and consultants Environmental Resource Studies Travel & accommodation Rubi Camp and general Contractors and consultants Exploration costs recovered Environmental Mining rights and fees Professional fees Travel & accommodation Nord Contractors and consultants Mining rights and fees Option income CHILE Total - Properties joint ventured to other

2,910 1,062 2,910 - 7,003 2,875 6,952 928 69,278 8,283 25,527 2,916 2,451 - 2,451 - 81,642 12,220 37,840 3,844 - 56 - 56 5,981 44,307 2,442 28,674 9,479 22,031 3,316 8,630 - (47,086) - (47,086) - 389 - 307 - 6,797 - - 15,460 26,494 5,758 (9,419) - 279 - 279 4,166 6,170 2,035 6,170 (66,422) (64,321) (652) (64,321) 247 328 247 328 - 8,167 - 8,167 - 711 - 711 (62,009) (48,666) 1,630 (48,666) - 96,801 - (5,076) - 27,164 - 599 - 122,178 - (58,298) - 251,290 - - - 16,220 - - - (561,165) - (51,611) - 4,617 - 2,632 - 5,166 - - - 30,283 - 211 - (7,446) - (111,543) - 23,536 - 10,198 - 8,182 - 5,070 - 47,594 - 24,773 - 5,367 - 5,367 - 18 - 18 - 13,818 - 7,602 - 98,515 - 53,028 8,249 - 8,249 - 20,221 - 16,928 - (31,556) - (31,556) - 28,949 - 28,949 - 63 - 15 - 215 - - - 5,936 - 5,936 - 32,077 - 28,521 - 22,292 1,008 2,214 1,008 13,133 934 5,030 934 (65,770) - 652 - (30,345) 1,942 7,896 1,942 36,825 83,059 81,645 (110,814)

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CHILE (Cont'd…)

2020 2019 2020 2019 For the Three Months Ended December 31, For the Six Months Ended December 31,

Chile Pipeline Projects Assays and sampling - 22,086 - 13,708 Camp and general - 23,351 - 18,670 Contractors and consultants 4,949 137,439 4,102 91,704 Mining rights and fees 1,665 37,847 229 16,262 Professional fees - - - (8,167) Travel & accommodation - 23,394 - 16,110 6,614 244,117 4,331 148,287 Los Amarillos (Brahma) Assays and sampling - 11,532 - 7,811 Camp and general - 8,615 - 5,439 Contractors and consultants 5,073 83,366 473 48,201 Environmental - 26,205 - 26,205 Geophysics - 1,994 - 23 Mining rights and fees 10,118 34,305 2,621 34,283 Professional fees - - - - Travel & accommodation - 11,970 - 7,294 15,191 177,987 3,094 129,256 Zeus Camp and general - 755 - 755 Contractors and consultants 2,681 16,891 2,681 16,785 Mining rights and fees 16,632 131 12,001 89 Professional fees 1,612 - - - Travel & accommodation - 370 - 370 20,925 18,147 14,682 17,999 42,730 440,251 22,107 295,542 Inca Assays and sampling 29,275 - 7,073 - Camp and general 60,173 - 2,056 - Contractors and consultants 222,854 - 81,652 - Environmental 6,785 - 4,950 - Mining rights and fees 15,414 - 9,669 - Resource studies 2,517 - 2,517 - Travel & accommodation 41,974 - (2,365) - 378,992 - 105,552 - Ladera - Joint Venture Camp and general 61 - 61 - Contractors and consultants 6,438 2,976 6,438 2,976 Join Venture Payments 64,398 - - - Mining rights and fees 3,530 4,339 1,735 4,064 Travel & accommodation - 446 - 143 74,427 7,761 8,234 7,183 453,419 7,761 113,786 7,183 Project Generation 46,939 - 31,256 (657) Management Fee Income (1,517) (35,934) (1,517) 2,800 393,442 519,142 198,571 300,325 971,838 1,014,279 445,848 494,379 Total - 100% owned properties Total - Earn-in joint venture on third party Total Chile Corporate Operation & Management - Chile

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		2020 2019 2020 2019 For the Three Months Ended December 31, For the Six Months Ended December 31,
	ARGENTINA Virginia - Joint Venture Assays and sampling Camp and general Contractors and consultants Drilling Exploration costs recovered(1) Geophysics Mining rights and fees Travel & accommodation Argentina Pipeline Projects Camp and general Contractors and consultants Environmental Mining rights and fees Travel & accommodation Claudia Assays and sampling Camp and general Contractors and consultants Environmental Geophysics Mining rights and fees Travel & accommodation La Curva Assays and sampling Camp and general Contractors and consultants Mining rights and fees Travel & accommodation Sasha Contractors and consultants Geophysics Mining rights and fees Marcelina - Joint Venture Assays and sampling Camp and general Contractors and consultants Drilling preparation Environmental Mining rights and fees Travel & accommodation Project Generation Management Fee Income Total - 100% owned properties Total - Properties joint ventured to other Total - Earn-in joint venture on third party Total Exploration and Evaluation Costs Total Argentina Corporate Operation & Management -	152,258 - 152,258 - 375,026 12,300 345,941 7,453 209,979 1,135 155,166 609 564,177 - 556,102 - (1,353,689) - (1,261,794) - 11,344 - 11,344 - 14,143 6,143 12,883 5,168 16,967 - 15,815 - (9,795) 19,578 (12,285) 13,230 (9,795) 19,578 (12,285) 13,230 - (12) - 158 3,730 22,834 3,730 8,392 365 1,207 365 1,195 6,726 17,899 3,293 7,594 - 46 - - 10,821 41,974 7,388 17,339 - 79 - 79 3,375 1,274 - 652 286 5,324 94 3,119 - 3,014 - 3,014 - 1,933 - - 49,884 58,131 24,818 32,096 - 64 - 64 53,545 69,819 24,912 39,024 - 124 - 124 - 209 - 209 27 3,291 27 1,640 10,032 10,537 4,699 5,472 - 55 - 55 10,059 14,216 4,726 7,500 1,002 5,875 - 5,065 - 12,982 - 12,982 889 2,877 426 2,560 1,891 21,734 426 20,607 76,316 147,743 37,452 84,470 - 3,458 - 3,458 - 38,684 - 29,443 13,599 64,765 6,130 39,661 6,730 - - - 437 437 - 1,178 1,686 594 629 - 5,503 - 2,357 21,944 114,096 7,162 75,548 21,944 114,096 7,162 75,548 - - - - (76,420) - (67,230) - 332,809 469,054 125,360 240,457 344,854 750,471 90,459 413,705 1,316,692 1,764,750 536,307 908,084

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FOURTH QUARTER ANALYSIS

Not required for the interim MD&A.

SUMMARY OF QUARTERLY RESULTS

The following table sets out selected unaudited quarterly financial information of the Company and is derived from unaudited quarterly consolidated financial statements prepared by management in accordance with IAS 34 and accounting policies consistent with IFRS.

			Basic Income	Diluted Income
		Income (Loss)	(Loss) per Share	(Loss) per Share
		from Continued	from Continued	from Continued
	Revenues	Operations	Operations	Operations
Period	$	$	$	$
2ndQuarter 2021	Nil	(1,062,288)	(0.02)	(0.02)
1stQuarter 2021	Nil	(1,342,819)	(0.02)	(0.02)
4thQuarter 2020	Nil	(2,360,152)	(0.04)	(0.04)
3rdQuarter 2020	Nil	(438,534)	(0.01)	(0.01)
2ndQuarter 2020	Nil	(1,747,754)	(0.04)	(0.04)
1stQuarter 2020	Nil	(1,356,039)	(0.03)	(0.03)
4thQuarter 2019	Nil	(1,975,115)	(0.04)	(0.04)
3rdQuarter 2019	Nil	(3,440,524)	(0.07)	(0.07)

The Company’s quarterly results will vary depending on the Company’s exploration and business development activities. The Company also grants incentive stock options to its directors, management, employees, and consultants, which cause a variation in the Company’s results from period to period.

The movement in the value of the US dollar relative to the Canadian dollar can also have an impact on the Company’s results from one period to the next as the Company holds its working capital primarily in US dollars.

INVESTING ACTIVITIES

The Company continued to invest Canadian, Australian and US dollars in interest-bearing financial instruments maturing up to one year. The total amount invested in 2020 was $5,128,360 compared to $16,312,339 in the prior year. The Company received interest income of $64,999 during the period ended December 31, 2020, compared to $161,121 from the period ended December 31, 2019.

CAPITAL RESOURCES AND LIQUIDITY

In order to finance the Company’s exploration programs and to cover administrative and overhead expenses, the Company primarily raises money through equity sales and from the exercise of convertible securities (share purchase options and warrants). Many factors influence the Company’s ability to raise funds, including the health of the resource market, the climate for mineral exploration investment, the Company’s track record and the experience and calibre of its management.

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The Company has no operations that generate cash flow and its long-term financial success is dependent on management’s ability to discover economically viable mineral deposits. The Company commonly applies the Project Generator model where it seeks and presents partners with an option to joint venture the Company’s projects, in order to have those partners fund the exploration of the project to earn an interest. In some agreements, the Company receives cash option payments or common stock of the joint venture partner, as a portion of the partner’s cost to earn an interest. If any of its exploration programs are successful and the partners complete their earn-ins, the Company would have to provide its share of ongoing exploration and development costs in order to maintain its interests; and if not, reduce its equity interest through a monetization transaction or dilution of its ownership interest or conversion to a royalty interest. The Company does not anticipate mining revenues from sale of mineral production in the foreseeable future.

With working capital of approximately $13.4 million on December 31, 2020, the Company has sufficient funds to conduct its administrative, business development, and discretionary exploration activities over the next twelve months. Actual funding requirements may vary from those planned due to several factors, including the Company’s joint venture partners encountering difficulty in financing exploration programs on the optioned properties. The Company further believes it has the ability to raise equity capital to meet its foreseeable longer-term working capital needs but recognizes that the ability to raise capital in the future involves risks beyond its control.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no significant off-balance sheet arrangements.

PROPOSED TRANSACTIONS

The Company has no proposed transactions.

TRANSACTIONS WITH RELATED PARTIES

Details of the transactions between the Company’s related parties are disclosed below.

a) Compensation of key management personnel

Key management personnel include persons having the authority and responsibility for planning, directing, and controlling the activities of the Company as a whole.

The remuneration of management and independent directors was as follows:

	For the Three Months Ended	For the Three Months Ended	For the Six Months Ended	For the Six Months Ended
	December 31,		December 31,
	2020	2019	2020	2019
Management compensation (i)	55,042	98,866	189,333	201,280
Share-based payments (ii)	(165,804)	68,032	(103,708)	128,385
Director’s fees (iii)	16,065	46,500	51,685	93,000
	(94,697)	213,398	137,310	422,665

i. Management compensation is included in management fees (December 31, 2020 (“2020”) - $62,500; December 31, 2019 (“2019”) - $150,000) and in exploration expenditures (2020 – $126,833; 2019 - $51,280) in the Company’s condensed consolidated interim statements of loss and comprehensive loss.

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• ii. Share-based payments are included in the share-based payments expense in the Company’s condensed consolidated interim statements of loss for the period ended December 31, 2020 and 2019.

• iii. The independent directors of the Company are paid $2,100 per month (2019 - $2,100 per month) while the Chairman of the Board of Directors receives an additional $nil per month for serving in this capacity (2019 - $7,100). As of April 1, 2020, members of the Board agreed to a reduced fee of 15% until further notice.

b) Transactions with other related parties

Certain of the Company’s officers and directors render services to the Company as sole proprietors or through companies in which they are an officer, director, or partner.

The following companies are related parties through association of the Company’s directors and officers:

he following companies are related parties through association of fficers:	the Company’s directors and
	Nature of transactions
Miller Thomson, where Gregory Smith is a Partner	Legal fees
Max Pinsky Personal Law Corporation	Legal fees
Chase Management Ltd., a Company owned by Nick DeMare	Professional fees
ManningLee Management Ltd.,a Companyowned byMathew Lee	CFO services

The Company incurred the following fees and expenses with related parties as follows:

		For the Three Months	For the Three Months	Ended	For the Six	Months Ended	Months Ended
		December 31,			December 31,
		2020		2019	2020		201
							9
Legal fees	$	18,651	$	26,431 $	47,097	$	61,093
CFO services		7,500		13,500	15,000		27,000
	$	26,151	$	39,931$	62,097	$	88,093

Included in accounts payable and accrued liabilities at December 31, 2020, is an amount of $33,376 (2019 - $24,462) owing to directors and officers of the Company and to companies where the directors and officers are principals.

SIGNIFICANT ACCOUNTING POLICIES

The details of the Company’s accounting policies are presented in Note 3 of the Company’s audited consolidated financial statements for the year ended June 30, 2020. The following policies are considered by management to be essential to the understanding of the processes and reasoning that go into the preparation of the Company’s financial statements and the uncertainties that could have a bearing on its financial results.

RECENT ACCOUNTING ADOPTION

New accounting standards issued but not yet in effect

Classification of liabilities as current or non-current (Amendments to IAS 1)

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The IASB has published Classification of Liabilities as Current or Non-Current (Amendments to IAS 1) which clarified the guidance on whether a liability should be classified as either current or non-current. The amendments:

• (i) Clarify that the classification of liabilities as current or non-current should only be based on rights that are in place “at the end of the reporting period”;

• (ii) Clarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and

• (iii) Make clear that settlement includes transfers to the counterparty of cash, equity instruments, other assets or services that result in extinguishment of the liability.

This amendment is effective for annual periods beginning on or after January 1, 2023. Earlier application is permitted. The extent of the impact of adoption of this amendment has not yet been determined.

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, profit and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and further periods if the review affects both current and future periods.

FINANCIAL INSTRUMENTS

The Company’s financial instruments as at December 31, 2020, consist of cash and cash equivalents, receivables and advances, marketable securities, accounts payable and accrued liabilities and advances from joint venture partners. The fair value of all these instruments approximates their carrying value. There are no off-balance sheet financial instruments.

The Company’s financial instruments are exposed to certain financial risks. The risk exposures and the impact on the Company's financial instruments are summarized below.

The Company is exposed to the financial risk related to the fluctuation of foreign exchange rates. The Company operates in Canada, Argentina and Chile and a portion of its expenses are incurred in United States dollars, Australian dollars and in Argentine and Chilean Pesos. A significant change in the currency exchange rates between the US and Australian dollar relative to the Canadian dollar and the Argentine and Chilean Peso to the Canadian dollar could have an effect on the Company’s results of operations, financial position or cash flows. The Company has not hedged its exposure to currency fluctuations.

The Company appointed a special treasury committee comprising of three board members to consider management’s recommendations to mitigate the exposure to foreign currency risk. The committee and management maintain a ratio of 80:15:05 for US$: CAD$: AUD$ of the treasury whenever practical.

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MANAGEMENT OF CAPITAL RISK

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern, to pursue the development of its exploration and evaluation assets and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. In the management of capital, the Company includes the components of equity.

The Company manages the capital structure and adjusts it considering changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may attempt to issue new shares, acquire or dispose of assets, enter into joint ventures or obtain debt financing. To facilitate the management of its capital requirements, the Company prepares annual and quarterly expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions.

To maximize ongoing development efforts, the Company does not pay out dividends.

The Company’s investment policy is to invest its cash in highly liquid short-term interest-bearing investments with maturities of twelve months or less from the original date of acquisition, selected with regards to the expected timing of expenditures from continuing operations.

The Company does not invest in commercial paper. The Company is not subject to externally imposed capital requirements.

ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

Additional disclosure concerning the Company’s operating expenses is provided above, and in the Company’s consolidated statements of loss and comprehensive loss of the audited annual consolidated financial statements for the year ended June 30, 2020 that is available on the Company’s website at www.mirasolresources.com or on its SEDAR company page accessed through www.sedar.com.

OUTSTANDING SHARE DATA

As of the date of this MD&A, the Company had 53,960,043 issued and outstanding common shares. In addition, the Company has 2,740,000 options outstanding that expire through April 28[th] , 2023. At the date of this MD&A, no RSU’s were outstanding.

Details of issued share capital are included in Note 9 of the condensed consolidated interim financial statements for the six months ended December 31, 2020.

APPROVAL

The Audit Committee of the Company has approved the disclosure contained in this MD&A.

ADDITIONAL INFORMATION

Additional information relating to the Company is available on SEDAR at www.sedar.com and on the Company’s website at www.mirasolresources.com.

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