Monument Mining Limited — Interim / Quarterly Report 2021

Nov 27, 2021

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

For the Nine Months Ended September 30, 2021 and 2020

This management’s discussion and analysis of Homerun Resources Inc. (formerly Envirotek Remediation Inc.) (the “Company”) contains analysis of the Company’s operational and financial results for the nine months ended September 30, 2021 and 2020. The following should be read in conjunction with the Company’s unaudited consolidated interim financial statements for the nine months ended September 30, 2021 and audited consolidated financial statements for the year ended December 31, 2020. All figures are in Canadian dollars unless otherwise stated.

DATE OF REPORT

November 26, 2021

JURISDICTION OF INCORPORATION AND CORPORATE NAME

Homerun Resources Inc. (formerly 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 Suite 2110, 650 West Georgia Street, Vancouver, B.C., V6B 4N9..

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. 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.

On July 30, 2021, the board of directors passed a resolution approving the name change to Homerun Resources Inc.

At the Company’s annual general and special meeting on August 4, 2021, the Company increased its board to 4 directors with the appointment of Hugh Callaghan. Mr. Callaghan has worked in the mining industry since 1993, initially for Gold Fields of South Africa and then Rio Tinto PLC. During his career, Mr. Callaghan has taken several projects from conceptual stage to feasibility and built four mines in African and Latin America.

On August 17, 2021, the common shares of the Company commenced trading on the TSX Venture Exchange under the symbol HMR.H.

On September 9, 2021, the Company issued 1,387,282 shares at $0.10 per share to settled loan obligations of $138,728; 7,127,317 shares at $0.10 to settle accounts payable obligations of $717,731. The debt settlement includes six related parties of the company totalling $668,029 of debt for the issuance of 6,680,286 shares. All securities issued in connection with the shares for debt transaction are subject to a stator hold period of four months, from the date of issuance.

On September 15, the Company granted 3,500,000 stock options to directors, consultants and officers of the Company. The options have an exercise price of $0.10 per stock option, expire fives years from the date of grant.

On September 29, 2021, the Company announced it had staked an additional 30,770 hectares at its Homathko gold project bringing the total area to 30,970 hectares. As well, the Company initiated a 521-line-kilometre airborne magnetic survey on the newly staked property.

During the nine-month period ended September 30, 2021, the Company completed an airborne geophysical survey of the Homathko Gold Project. The Company is waiting for the completion of the geophysical report.

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For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

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

• a) On October 22, 2021, the Company announced a non-brokered private placement financing for aggregate gross proceeds of up to $200,000. The financing will consist of up to two million units at 10 cents, each unit consisting of one common shares of the Company and one common share purchase warrant with each warrant being exercisable for an additional common share at an exercise price of 20 cents for 12 months. The warrants will be subject to the right of the Company to accelerate the exercise of the warrants if the shares of the Company trade at or above 50 cents for a period of 10 consecutive trading days. Finders’ fees in accordance with the TSX Venture Exchange policies may apply to the financing and all securities issued will be subject to a statutory four-month hold period. Proceeds raised from the financing will be used for exploration expenditures on the Company’s Homathko project and working capital expenditures.

• b) On November 1, 2021, the Company arranged a non-brokered private placement financing of up to one million flowthrough units at 15 cents per unit, with each flow-through unit consisting of one flow-through common share of the company and one common share purchase warrant, with each warrant being exercisable for an additional share of the company at an exercise price of 25 cents for 12 months. The warrants will be subject to the right of the Company to accelerate the exercise of the warrants if the shares of the Company trade at or above 50 cents for a period of 10 consecutive trading days. Finders’ fees in accordance with the TSX Venture Exchange policies may apply to the financing and all securities issued will be subject to a statutory four-month hold period. Proceeds raised from the financing will be used for exploration expenditures on the Homathko project.

• c) On November 19, 2021, the Company completed the non-brokered private placement for one-million flow-through units at 15 cents per unit, with each flow-through unit consisting of one flow-through common share of the company and one common share purchase warrant, with each warrant being exercisable for an additional share of the company at an exercise price of 25 cents for 12 months. The warrants will be subject to the right of the Company to accelerate the exercise of the warrants if the shares of the Company trade at or above 50 cents for a period of 10 consecutive trading days. Finders’ fees in accordance with the TSX Venture Exchange policies may apply to the financing and all securities issued will be subject to a statutory four-month hold period. Proceeds raised from the financing will be used for exploration expenditures on the Homathko project.

Finders’ fees of 2% cash and 2% broker warrants will be paid.

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. The Company expanded the project size land position by 30,770 hectares via staking, bringng the total land position to 30,970 hectares.

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

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For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

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:

• 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(issued);

• $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 (completed);

• 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:

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HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

For the Nine Months Ended September 30, 2021 and 2020

		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
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’s focus is mineral exploration.

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:

		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
		2021		2021		2021		2020
Expenses	$	387,516	$	201,341	$	149,964	$	123,306
Other loss (income)		-		-		-		(2,447,254)
Net income (loss)		(387,516)		(201,341)		(149,964)		2,323,947
Comprehensive income (loss)		(387,516)		(201,341)		(149,964)		2,323,947
Basic and diluted income (loss) per share		(0.02)		(0.01)		(0.01)		0.20
Total current assets		9,100		93,437		12,249		36,800
Total assets		124,498		152,437		22,249		46,800
Total current liabilities		917,539		1,661,422		1,673,575		1,548,162
Total liabilities		917,539		1,661,422		1,673,575		1,548,162
		Sep. 30,		Jun. 30,		Mar. 31,		Dec. 31,
		2020		2020		2020		2019
Expenses	$	144,742	$	219,840	$	127,823	$	214,253
Other income		(450,733)		-		-		-
Net loss		305,991		(219,840)		(127,823)		(214,253)
Comprehensive loss		305,991		(219,840)		(127,823)		(214,253)
Basic and diluted loss per share		0.03		(0.02)		(0.01)		(0.02)
Total current assets		5,293		11,755		8,955		7,230
Total assets		5,293		11,755		8,955		7,230
Total current liabilities		1,347,958		5,020,411		4,797,771		4,668,223
Total liabilities		1,347,958		5,020,411		4,797,771		4,668,223

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For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

Results of Operations for the Three Months Ended September 30, 2021 and 2020

The net loss for the three-month period ended September 30, 2021 was $387,516 (2020 - $303,991 net income). Major expenditures during the quarter were:

• Consulting and management fees $70,500 (2020 - $54,000);

• Exploration and evaluation expenses $30,500 (2020 - $31,600);

• Office and miscellaneous $30,035 (2020 - $26,006);

• Stock-based compensation $247,000 (2020- nil).

Expenditures in the period included stock-based compensation of $247,000 which is a non-cash expense. The comparative period in 2020 included income of $450,733 from the forgiveness of debt.

Results of Operations for the Nine Months Ended September 30, 2021 and 2020

The net loss for the nine-month period ended September 30, 2021 was $738,821 (2020 - $41,672). Major expenditures during the quarter were:

• Consulting and management fees $211,500 (2020 - $227,500);

• Exploration and evaluation expenses $156,610 (2020 - $114,909);

• Office and miscellaneous $90,129 (2020 - $94,004);

• Professional fees $17,320 (2020 - $43,353):

• Stock-based compensation $247,000 (2020 - $nil).

Expenditures were higher during the nine months ended September 30, 2021 compared to the same period in 2020, due higher exploration expenses (airborne geophysical survey on the Homathko gold project), stock-based compensation and the prior period included income from the forgiveness of debt.

LIQUIDITY AND CAPITAL RESOURCES

		September 30, 2021		December 31,2020
Cash	$	5,145	$	27,860
GST receivable		3,955		8,440
Prepaid expenses		-		500
Exploration and evaluation assets		115,398		10,000
Current liabilities		9917,539		1,548,162
Shareholders’ deficiency		(793,041)		(1,501,362)
Working capital deficiency		(908,439)		(1,511,362)

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 September 30, 2021, the Company had cash of $5,145 (December 31, 2020 - $27,860) and negative working capital of $908,439 (December 31, 2020 - $1,511,362). Significant working capital components include cash in current or interestbearing accounts, accounts payable, and demand loan payable.

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For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

Capital stock

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

During the nine-month period ended September 30, 2021:

• the Company completed a non-brokered private placement for gross proceeds of $305,882 by issuing 6,117,640 units. Each unit consists of one common share of the company and one-half of a common share purchase warrant, with each full warrant entitling the holder to acquire one additional common share of the company at a price $0.15 per share for 12 months. The warrants are subject to the right of the company to accelerate the exercise period of the warrant if shares of the company trade at or above $0.25 for a period of 10 consecutive trading days.

• Issued 700,000 common shares for property acquisition (Homathko project).

• Issued 8,564,598 common shares to settle outstanding loan and accounts payable obligations of $856,460.

As at September 30, 2021 the Company had 27,260,619 common shares issued and outstanding (December 31, 2020 – 11,878,381).

Subsequent to the period ended September 30, 2021, the Company issued 1,000,000 common shares. As at the date of this report, the Company had 28,260,619 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.

During the nine-month period ended September 30, 2021, the Company granted 3,500,000 incentive stock options to officers, directors, and consultants. These options are exercisable for up to five years at a price of $0.10 per share. The company recognized a stock-based compensation of $247,000 determined by the Black-Scholes option pricing model using the following assumptions: risk free interest rate 0.79%, volatility of 93%, annual rate of dividend of 0% and an expected life of the option of 5 years.

As at September 30, 2021 and the date of this report, there are 3,500,000 stock options outstanding (December 31, 2020 – Nil).

Warrants

During the nine-month period ended September 30, 2021, the Company issued 3,058,820 share purchase warrants, with an exercise price of $0.15 to acquire one common share for a period of 12 months.

					Number	Weighted Average Price
Number outstanding at December	31,	2019	and	2020	-	$ -
Issued					3,058,820	$ 0.15
Number outstanding at September	30,	2021			3,058,820	$ 0.15

As at September 30, 2021, the following warrants were outstanding:

	Weighted Average	Number of warrants	Weighted Average
Expiry Date	Exercise price	outstanding	Remaining Years
May 4, 2022	$ 0.15	3,058,820	0.59

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For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

Subsequent the nine-month period ended September 30, 2021, the Company 1,000,000 shares purchase warrants with an exercise price $0.25 per warrant for 12 months. The warrants will be subject to the right of the Company to accelerate the exercise of the warrants if the shares of the Company trade at or above 50 cents for a period of 10 consecutive trading days.

As at November 26, 2021, the following warrants were outstanding:

Expiry Date	Weighted Average Exercise price Number of warrants outstanding	Weighted Average Remaining Years
May 4, 2022 Nov. 23, 2022	$ 0.15 3,058,820 $ 0.25 1,000,000 $ 0.17	0.44 0.99
		0.57

Broker Warrants

Subsequent the nine-month period ended September 30, 2021, the Company issued 20,000 broker warrants exercisable at price of $0.15 per broker warrant for 12 months.

As at November 26, 2021, the following broker warrants were outstanding:

	Weighted Average	Number of warrants	Weighted Average
Expiry Date	Exercise price	outstanding	Remaining Years
Nov. 23, 2022	$ 0.15	20,000	0.99

As at the date of this report, the Company has 28,260,619 common shares, 3,500,000 incentive stock options, 4,058,820 share purchase warrants and 20,000 broker warrants outstanding. IF all of the stock options, warrants and broker warrant were exercised the Company would have 35,839,439 common shares issued and outstanding.

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 nine months ended September 30, 2021 and 2020, the Company entered into transactions with the related parties as below:

							Fees incurred		Fees incurred		Balance		Balance
							for the nine		for the nine		payable at		payable at
				Nature	of		months ended		months ended		Sep. 30,		December
Name	Relationship			Transaction			Sep. 30, 2021		Sep. 30, 2020		2021		31, 2020
Nexvu Services Inc.	Owned	by	Nexvu	Rent and corporate		$	90,000	$	90,000	$	70,335	$	196,525
	Capital	Corporation,		services
	which	Brian Leeners,
	Greg	Pearson	and
	Gordon	Fretwell are
	shareholders
Nexvu Capital Corporation	Brian	Leeners,	Greg	Demand loan			-		-		2,000		115,428
	Pearson and Gordon

2

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

For the Nine Months Ended September 30, 2021 and 2020

	Fretwell	are
	shareholders
Brian Leeners	Chief executive	officer	Management services		90,000		90,000		80,875		174,625
	and director
Maria Conejo	President		Technical services		-		60,000		-		100
Global Link Capital	Greg Pearson, director		Management services		90,000		90,000		72,585		166,335
	of the Company, is a
	shareholder
Greg Pearson	Director		Loan		-		-		-		5,400
Gordon J. Fretwell, Law	Gordon Fretwell is a		Legal services		7,500		7,500		79,625		152,125
Corporation	shareholder of	Nexvu
	Capital Corporation.
0733351 BC Ltd.	Owned by	Nexvu	Property option		-		-		-		9,609
	Capital Corporation,
	which Brian Leeners,
	Greg Pearson	and
	Gordon Fretwell are
	shareholders
CBDS Health Inc.	Director		Corporate Services		-		-		-		8,965
AE Financial Management	Edward Low,	chief	Accounting services		31,500		31,500		36,588		78,588
Ltd.	financial officer, is a
	shareholder
				$	309,000	$	369,000	$	342,008	$	907,700

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 nine-month period ended September 30, 2021, the Company granted incentive stock options to officers, directors, and consultants. The stock-based compensation related to officers and directors is $163,000 (2020- nil).

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

2

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

For the Nine Months Ended September 30, 2021 and 2020

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 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 credit risk is primarily attributable to cash. The Company limits its exposure to credit risk on cash as these financial instruments are held with major Canadian and international banks, from which management believes the risk of loss to be remote.

Liquidity risk

The Company manages liquidity risk by maintaining cash. Liquidity requirements are managed based on expected cash flow to ensure there is capital to meet short term and long-term obligations. As at September 30, 2021, the Company did not have sufficient cash on hand to pay its short-term creditors and does not generate cash from its operations. Accordingly, liquidity risk is considered high.

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 is exposed to foreign currency risk on fluctuations related to cash, demand loan payable, accounts payable and accrued liabilities that are denominated in US dollars. The Company does not use derivative instruments to reduce its exposure to foreign exchange risk. A 10% change in the value of the US dollar against the Canadian dollar would have an impact of $10,682 on the Company’s comprehensive loss.

2

For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

OTHER RISK FACTORS

The Company’s success depends upon a number of factors, many of which are beyond the Company’s control. Typical risk factors and uncertainties include the current world economic recovery, world conflict, natural disasters which affects the ability to raise financing, title matters, metal prices, currency rate fluctuations, operating hazards encountered in the mining business, and changing legislation, regulations or the administration thereof. These risk factors could materially affect the Company’s future operations and could cause actual events to differ materially from those described in forward-looking statements relating to the Company.

Environmental and Other Regulatory Requirements

Mineral exploration activities require permits from various governmental authorities and are and will be governed by laws and regulations governing prospecting, development, mining, production, exports, taxes, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, safety and other matters. Companies engaged in the exploration and development of mineral properties generally experience increased costs, and delays as a result of the need to comply with applicable laws, regulations and permits. Failure to comply with applicable laws, regulations, and permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mineral exploration and development activities may be required to compensate those suffering loss or damage by reason of the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations and, in particular, environmental laws.

The Company believes it is in compliance with all laws and regulations that currently apply to its activities. However, there can be no assurance that all permits which the Company may require for mineral exploration and development can be obtained or maintained on reasonable terms or that such laws and regulations would not have an adverse effect on any such mineral exploration or development which the Company might undertake.

Amendments to current laws, regulations and permits governing operations and activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in capital expenditures or production costs or reduction in levels of production at producing properties or require abandonment or delays in development of new mining properties.

Metal Prices

The principal activity of the Company is the exploration of resource metal properties. The feasible development of such properties is highly dependent upon metal prices. A sustained and substantial decline in commodity prices could result in the write-down, termination of exploration and development work or loss of the Company’s interests in identified resource properties. Although such prices cannot be forecast with certainty, the Company carefully monitors factors that could affect metal prices in order to assess the feasibility of its resource properties.

Industry and Economic Factors Affecting Performance

As a mineral exploration and development company, The Company’s performance is affected by a number of industry and economic factors and exposure to certain environmental risks and regulatory requirements. These include metal prices, competition amongst exploration firms for attractive mineral properties, the interest of investors in providing high-risk equity capital to exploration companies, and the availability of qualified staff and equipment such as drilling rigs to conduct exploration.

Critical Accounting Estimates and Assumptions

Critical accounting estimates are estimates and assumptions made by management that may result in material adjustments to the carrying amount of assets and liabilities within the next financial year.

2

For the Nine Months Ended September 30, 2021 and 2020

HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

Share-based payments

The Company uses the Black-Scholes pricing model to estimate the fair value of stock options granted and warrants issued. Under this model, the Company must estimate the term, volatility and if applicable, the forfeiture rate of options granted and warrants issued.

Critical Accounting Judgments

Critical accounting judgments are accounting policies that have been identified as being complex or involving subjective judgments or assessments.

Exploration and Evaluation Assets

The application of the Company’s accounting policy for exploration and evaluation expenditure requires judgment in determining whether it is likely that future economic benefits will flow to the Company, which may be based on assumptions about future events or circumstances. Estimates and assumption made may change if new information becomes available. If, after expenditure is capitalized, information becomes available suggesting that the recovery of the expenditure is unlikely, the amount capitalized is written off in the profit or loss in the period the new information become available.

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 e .

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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HOMERUN RESOURCES INC. (formerly ENVIROTEK REMEDIATION INC.) Management’s Discussion & Analysis

For the Nine Months Ended September 30, 2021 and 2020

"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 Hugh Callaghan - Director Lew Dillman – Director Greg Pearson – Director Ed Low - CFO

Contact

SUITE 2110 – 650 WEST GEORGIA STREET VANCOUVER, BRITISH COLUMBIA V6B 4N9

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