Relevium Technologies Inc. — Interim / Quarterly Report 2022

Mar 13, 2023

RELEVIUM TECHNOLOGIES INC. MANAGEMENT DISCUSSION AND ANALYSIS – QUARTERLY HIGHLIGHTS For the three and six-month periods ended December 31, 2021

This Management’s Discussion and Analysis – Quarterly Highlights (“MD&A”) for Relevium Technologies Inc. (“Relevium” or the “Company”) should be read in conjunction with: the audited consolidated financial statements for the year ended June 30, 2021 and the notes thereto, prepared in accordance with International Financial Reporting Standards (“IFRS”); the MD&A for the year ended June 30, 2021; and the unaudited interim condensed consolidated financial statements for the period ended December 31, 2021 (the “Reporting Period”). .

The effective date of this MD&A is March 13, 2023.

COVID-19 PANDEMIC

The COVID-19 pandemic hit Canada and the United States in March 2020. The operations and financial condition of the Company have been affected by this global health crisis. Since the beginning of the COVID19 pandemic, the management and board of Relevium have worked remotely. The Company is in compliance with all federal, provincial, and municipal regulations that have been put in place since the beginning of the pandemic. The Company will continue to monitor closely developments in this regard, with the health and safety of the Company’s employees and management as the primary concern.

OVERVIEW

Relevium is a publicly traded company that operates in the health and wellness industry with a primary focus on online distribution. The Company’s primary listing exchange is the TSX Venture Exchange (TSXV: RLV); its common shares also trade on the OTCQB (OTCQB: RLLVF) and on the Open Market Segment of the Frankfurt Stock Exchange (FRA: 6BX).

The principal business of the Company is the identification, evaluation, acquisition and operations of brands and businesses in the health and wellness markets with a focus on e-commerce. The Company pursues its business strategy through an acquisition and partnership model in a holistic approach to encompass a wide range of health and wellness.

Background

Relevium was incorporated under the Canada Business Corporations Act on July 19, 2012, and its registered head office is located at 1000 Sherbrooke Street West, Suite 2700, Montreal, Quebec, Canada.

The Company completed its Qualifying Transaction (“QT”) on the TSX Venture Exchange (“TSX-V”) in August 2015 and began operating under the name Bioflex Technologies Inc., trading under the symbol “BFT” on the TSX-V. On December 17, 2015, the Company rebranded to Relevium Technologies Inc., trading under the symbol “RLV”, in order to reflect better its focus on health and wellness and on the consolidation of brands and businesses in the space.

The Company completed its first acquisition in July 2017, consisting of the assets of Bioganix®, a branded online business in the nutraceutical space, with products sold in the US through Amazon.com and its native website, Bioganix.com. The transaction was conducted through BGX E-Health LLC, a wholly-owned subsidiary based in Orlando, Florida.

1 | P a g e

Relevium operates through two wholly-owned subsidiaries, BGX E-Health LLC and Biocannabix Health Corporation Inc.

BGX E-Health LLC (BGX)

Based in Orlando, Florida, BGX markets dietary supplements, nutraceuticals, sports nutrition, and cosmeceuticals, primarily through its Bioganix® brand portfolio online in the US and, as of September 2018, in Europe. Relevium’s brands, such as Bioganix®, are sold at some of the world’s largest retailers, including Walmart.com and Amazon.com.

The Company’s strategy for growing its brands includes expanding its product offering, adding new distribution channels, and developing partnerships that add value through exclusive ingredients. During the year, the Company developed relationships with companies such as Tersus Life Sciences, Neptune Wellness Solutions and Hempco Food and Fiber in order to provide its current and future customer base with a balanced and comprehensive product offering.

BGX is currently testing a complete line of dietary supplements derived from hemp, with an initial focus on hemp-derived, whole-plant organic extracts rich in CBD (cannabidiol). These hemp-derived dietary supplements are deemed as food supplements rather than medicinal products. The product line will be marketed through its brand LeefyLyfe[TM] and will be sold in the USA, Latin America, and Europe.

The Company launched in February 2019 the Push & Pull System™ by Bioganix®, which is the first-ever comprehensive natural anti-aging system for complete skin care that combines collagen protein supplements (PUSH) and naturally-sourced aloe vera skin anti-aging cream (PULL). This launch is targeting a brand-new revenue stream in the burgeoning cosmeceutical market, which is the fastest growing segment of the health and wellness market.

ADDRESSABLE MARKETS FOR RELEVIUM

The Nutraceutical Market

Nutraceuticals are nutritional supplements derived from natural sources that complement progressive health and wellness programs. Nutraceuticals play a significant role in preventive health and therefore are an area of strategic focus in terms of our business strategy.

Relevium’s initial focus has been on building e-retail assets and expanding product offerings by introducing new formulations to support health and wellness. Investment in this market is supported by industry projections for growth in a market that is estimated to reach USD $38.7 billion by 2020.

The market for nutraceuticals is highly competitive. Direct competition to Relevium consists of publicly and privately-owned companies, which tend to be highly fragmented in terms of both geographic market coverage and product categories. In many of the products offered through Bioganix®, the Company competes not only with widely advertised branded products, but also with private label products.

The Company’s management, combined with the support of the members of its Board of Directors and Advisory Board, has access to strong innovation capabilities and has established access to high-quality manufacturing through the acquisition of Bioganix®. Management believes that it is well-positioned to capitalize on favorable long-term trends in the nutraceutical market.

2 | P a g e

The Market for Personal Protection Equipment (“PPE”) and the Current Pandemic

Valued at USD$52.7 billion in 2019 and expected to reach USD$92.5 billion by 2025, the growth of this market is driven primarily by the current COVID-19 pandemic and corporations’ focus on employee protection to reduce injuries at work. Rising industrial fatalities give the direction for the government and the employers to provide the protective equipment for the workers’ protection and to reduce the injury rate.

In April 2020, the Company entered this market by manufacturing a line of hand sanitizers to meet the demand in the market. In July 2020, the Company entered into a joint cooperation agreement with H-Source Holdings, an online secured platform that allows buyers and sellers of PPE to conduct business in a secured and verifiable platform.

In September 2020, the Company secured a contract totaling $US20 million to supply PPE to government agencies and began to work with H-Source to negotiate and secure supply.

In 2021, the Company continued to deal with logistics and supply issues. The company has developed direct relationships with one of the largest manufacturers of protective medical gloves in the world and expects this market to continue to be of strategic significance to the Company.

As of the date of this MD&A, the market has regulated most supply issues and prices have settled to a new level somewhat higher than pre-pandemic.

OUTLOOK

In addition to the launch and development of its entrepreneurial start-up in medical cannabis, the Company will continue to focus on the acquisition of e-retail brands, businesses and technologies in the health and wellness market. As part of the overall acquisition strategy, Relevium will invest in optimizing and developing the acquired e-brands and business following a business model that includes:

• Marketing and product positioning strategies into segmented demographics in the US

• • Continued review of its current product line and product development

• Obtaining licenses or direct sourcing of exclusive products

• Partnerships and joint ventures for new products

COVID-19

As of the date of this MD&A, the Pandemic has been regulated and, in most countries, it is under control. Management will continue to monitor the post pandemic situation and attempt to orient the Company’s operations and corporate strategy, accordingly, including product positioning of its protective gear product line.

3 | P a g e

CORPORATE HIGHLIGHTS FOR THE REPORTING PERIOD

During the period ended December 31, 2021, the Company announced the following developments:

Convertible Notes

On December 18, 2020, the Company signed an agreement with the convertible note holders to extend the term of the repayment of the convertible notes (“Convertible Notes”). On December 20, 2020, the Company was due to repay Convertible Notes in the amount of $2,352,942. As per the agreement among the Company and all Convertible Note holders, the maturity date of these Notes was initially extended to January 31, 2021, subject to the conditions below.

• All warrants issued to Convertible Note holders, which have a strike price of $0.05 and were scheduled to expire on December 20, 2020, shall have their expiration date amended to December 20, 2022;

• The Company agreed to pay an extension fee of $24,000 to the Convertible Note holders, which was subsequently paid through the issuance of 800,000 common shares of the Company; and

• • Interest and monitoring fees for January 2021 must be paid by December 28, 2020.

In addition, the Company had the option to extend the maturity date of the Convertible Notes up to three times for an additional 30 days each by paying an additional extension fee equal to 2% of the principal balance of the Convertible Notes for each extension. Relevium exercised this option to extend the Convertible Notes, which were further extended to June 1, 2021.

On June 30, 2021, Relevium announced that it had reached an agreement with the Convertible Note holders to settle the outstanding Convertible Notes, which amounted to $2,798,550 at that date. The Company and the Convertible Note holders agreed to settle the total of $2,798,550, including interest and accrued fees, as follows:

• Shares for debt settlement of $2,434,439 at a price equal to $0.02, reflecting market closing pricing in accordance with TSX-V policy relief extended to issuers due to the pandemic; and

• Cash payment for the balance over the subsequent 60 days totalling $364,111.

This settlement did not create a control person, as defined by Canadian securities law. The Company received TSX-V approval for this settlement on August 10, 2021.

On October 1, 2021, the Company announced that it had completed its shares-for-debt settlement, pursuant to which the Company has settled an aggregate of $2,434,439.16 of debt with certain holders of outstanding Convertible Notes through the issuance of 121,721,958 common shares in the capital stock of the Company at a deemed price of $0.02 per share (“Shares-for-Debt Settlements”); these 121,721,958 common shares were issued on September 13, 2021.

AIP Convertible Private Debt Fund LP and AIP Private Capital Inc. (collectively, “AIP”) were participants in the Shares-for-Debt Settlements. AIP acquired a total of 65,405,520 common shares at a deemed price of $0.02 per share in settlement of an aggregate of $1,308,110 of debt.

Immediately prior to the closing of the Shares-for-Debt Settlements, AIP held a total of 460,000 common

4 | P a g e

shares. Immediately following the Shares-for-Debt Settlements, AIP held a total of 65,865,520 common shares, representing approximately 19.99% of the Company’s issued and outstanding common shares.

Settlement with Weedsense

On December 17, 2021, Relevium announced an out-of-court settlement between the Company and Weedsense Inc. The parties had agreed to settle their dispute out-of-court with Relevium paying a total amount of $75,000 in common shares of the Company at a deemed price of either the higher of a 10-day volume weighted average price prior to issuance of the shares or $0.02. The transaction is subject to the approval of the TSX-V. As of the date of this MD&A, the TSX-V has not given its approval, and no shares have been issued.

SUBSEQUENT EVENTS

Convertible Notes

On August 1, 2022, Aurum Maximus LLC, a Company controlled by Aurelio Useche, the Company’s President & CEO, paid the remaining loan balance outstanding of $108,603 to AIP and the noteholders, and thereby assumed this debt.

Cease Trade Order

On January 10, 2022, the TSX-V halted trading in the Company’s common shares until such time as Relevium completes certain filings with the TSX-V.

FINANCIAL HIGHLIGHTS FOR THE REPORTING PERIOD

The Company reported total assets of $2,105,256 as at December 31, 2021 (June 30, 2021: $758,860), an increase of $1,346,396. The increase was primarily due to cash and cash equivalents of $1,330,102 (June 30, 2021: $64,346).

Total liabilities at December 31, 2021 were $4,125,678 (June 30, 2021: $5,662,822), a decrease of $1,537,144. The decrease was mainly contributed by current portion of long-term debt of $454,932 (June 30, 2021: $2,801,310), counterbalanced by the slight increases in bank advances of $614,882 (June 30, 2021: $195,299), accounts payable and accrued liabilities of $1,677,543 (June 30, 2021: $1,311,527), and customer deposit of $1,055,069 (June 30, 2021: $1,031,434).

Shareholders’ deficiency was $2,020,422 at December 31, 2021 (June 30, 2021: shareholders’ deficiency of $4,903,962), a decrease of $2,883,540. This is primarily due to a net income of $512,741 during the period, in addition to an increase of share capital of $2,434,439.

During the three-month period ended December 31, 2021, the Company generated revenues from its Bioganix® brand of $11,435,613 (December 31, 2020: $138,526), representing an increase of $11,297,087. The Company reported a net comprehensive income of $882,847 during the three-month period ended December 31, 2021 (December 31, 2020: net comprehensive loss of $396,757), a difference of $1,279,604.

5 | P a g e

RESULTS FROM OPERATIONS

The following table summarizes financial results for each of the reported periods.

	Three-month	periods ended	December 31
	2021	2020	Variance
	$	$	$
Sales	11,435,613	138,526	11,297,087
Cost of sales	10,239,973	27,720	10,212,253
Gross profit	1,195,640	110,806	1,084,834
Administration fees	15,122	(348)	15,470
Amortization of assets	1,165	1,165	-
Consulting fees	61,641	66,079	(4,438)
General and administrative expenses	89,540	121,982	(32,442)
Interest on long-term debt	20,052	73,150	(53,098)
Loss (gain) on foreign exchange	117	(1)	118
Professional fees	55,340	63,045	(7,705)
Sellingand marketing	69,190	286,892	(217,702)
	312,167	611,954	(299,797)
Net income (loss)	883,473	(501,158)	1,384,631
Other comprehensive items
Exchange differences on
translation of foreign operations	(626)	104,401	(105,027)
Net comprehensive income (loss)	882,847	(396,757)	1,279,604
Income (loss) per share – basic and
diluted	0.003	(0.002)
Weighted average number of
shares outstanding	329,492,346	206,970,388

During the three-month period ended December 31, 2021, the Company generated $11,435,613 in revenues (December 31, 2020: $138,526), representing an increase of $11,297,087 over revenues generated in the three-month period ended December 31, 2020. In the Reporting Period, the COVID-19 pandemic had the effect of reducing online sales of the Company’s products. In addition to the effect of the pandemic, the competitive environment also became more intense at that time. The decrease in sales was driven primarily by restrictions for inbound inventory imposed by Amazon marketplace, global wide supply chain shortages and subsequently liquidity issues affecting the overall operations. The Company decreased the variety of products offered as a result.

The costs of goods sold in the three-month period ended December 31, 2021 were $10,239,973 (December

6 | P a g e

31, 2020: $27,720), representing an increase of $10,212,253. In the three-month period ended December 31, 2021, cost of goods sold accounted for 90% of sales (December 31, 2020: 20%). This resulted in a gross profit of $1,195,640 for the three-month period ended December 31, 2021 (December 31, 2020: $110,806), representing an increase of $1,084,834. Gross profit accounted for 10% of sales in the three-month period ended December 31, 2021 (December 31, 2020: 80%).

Total expenses for the quarter ended December 31, 2021 were $312,167 (December 31, 2020: $611,964), representing a decrease of $299,797. As indicated in the table above, the primarily contribution to the decreases was the general and administrative expenses (decrease of $32,442), interest on long-term debt (decrease of $53,098), and selling and marketing expenses (decrease of $217,702).

The net comprehensive income for the three-month period ended December 31, 2021 was $882,847 (December 31, 2020: loss of $396,757), a change of $1,279,604.

The following table summarizes financial results for each of the reported periods.

	Six-month	periods ended December 31	periods ended December 31
	2021	2020	Variance
	$	$	$
Sales	11,618,413	471,642	11,146,771
Cost of sales	10,324,367	167,564	10,156,803
Gross profit	1,294,046	304,078	989,968
Administration fees	30,242	31,622	(1,380)
Amortization of assets	2,330	2,330	-
Consulting fees	118,338	128,030	(9,962)
General and administrative expenses	160,251	257,730	(97,479)
Interest on long-term debt	120,129	123,352	(3,223)
Loss (gain) on foreign exchange	(198)	(24)	(174)
Professional fees	161,485	198,587	(37,102)
Sellingand marketing	188,728	403,166	(214,438)
	781,305	1,144,793	(363,488)
Net income (loss)	512,741	(840,715)	1,353,456
Other comprehensive items
Exchange differences on
translation of foreign operations	(63,639)	116,726	(180,365)
Net comprehensive income (loss)	449,102	(723,989)	1,173,091
Income (loss) per share – basic and
diluted	0.002	(0.002)
Weighted average number of
shares outstanding	280,538,950	206,178,544

7 | P a g e

During the six-month period ended December 31, 2021, the Company generated $11,618,413 in revenues (December 31, 2020: $471,642), representing an increase of $11,146,771 over revenues generated in the three-month period ended December 31, 2020. In the Reporting Period, the COVID-19 pandemic had the effect of reducing online sales of the Company’s products. In addition to the effect of the pandemic, the competitive environment also became more intense at that time. The decrease in sales was driven primarily by restrictions for inbound inventory imposed by Amazon marketplace, global wide supply chain shortages and subsequently liquidity issues affecting the overall operations. The Company decreased the variety of products offered as a result.

The costs of goods sold in the six-month period ended December 31, 2021 were $10,324,367 (December 31, 2020: $167,564), representing an increase of $10,156,803. In the six-month period ended December 31, 2021, cost of goods sold accounted for 89% of sales (December 31, 2020: 36%). This resulted in a gross profit of $1,294,046 for the six-month period ended December 31, 2021 (December 31, 2020: $304,078), representing an increase of $989,968. Gross profit accounted for 11% of sales in the six-month period ended December 31, 2021 (December 31, 2020: 54%).

Total expenses for the six-month period ended December 31, 2021 were $781,305 (December 31, 2020: $1,144,793), representing a decrease of $363,488. As indicated in the table above, the primarily contribution to the decreases was the general and administrative expenses (decrease of $97,479), and selling and marketing expenses (decrease of $214,438).

The net comprehensive income for the six-month period ended December 31, 2021 was $449,102 (December 31, 2020: loss of $723,989), a change of $1,173,091.

The Company’s ability to continue as a going concern is subject to its ability to develop its biopharma business, to consolidate its over-the-counter business and its ability to raise additional financing to execute the roll-up strategy from its current pipeline of targets.

SUMMARY OF QUARTERLY RESULTS

Quarter Ended	Revenues	Net Loss &	Net loss per share	Weighted Average
		Comprehensive Income	(Basic & diluted)	Common Shares
		(Loss)
	$	$	$
Dec. 31, 2021	11,435,613	882,847	0.003	329,492,346
Sep. 30, 2021	182,800	(433,745)	(0.002)	231,585,554
June 30, 2021	214,008	(4,090,222)	(0.020)	207,770,388
Mar. 31, 2021	227,994	(466,341)	(0.002)	209,767,167
Dec. 31, 2020	138,526	(426,757)	(0.002)	206,970,388
Sep. 30, 2020	333,116	(327,232)	(0.002)	205,386,700
June 30, 2020	302,486	(5,693,210)	(0.034)	168,470,839
Mar. 31, 2020	529,735	(197,871)	(0.001)	147,446,356

FINANCIAL POSITION

The reporting period includes the operations for its subsidiary, BGX E-Health LLC, and the Bioganix® brand. The Company remains focused on growth and acquisitions and continues to rely primarily on equity and debt

8 | P a g e

financing.

As at	December 31, 2021	December 31, 2021	June 30, 2021
		$	$
Total Assets	2,105,256		758,660
Current Assets	1,527,596		178,870
Current Liabilities	4,077,426		5,614,570
Current Working Capital Deficit	**(2,549,830) **		(5,43~~5~~,700)

At December 31, 2021, the Company had total assets of $2,105,256 (June 30, 2021: $758,660), current assets of $1,527,596 (June 30, 2021: $178,870) and current liabilities of $4,077,426 (June 30, 2021: $5,614,570). The Company had a negative working capital of $2,549,830 at December 31, 2021, compared to a negative working capital of $5,435,700 at June 30, 2021. The principal reason for this significant change in working capital is due to the substantial decrease in the current portion of long-term debt on the Company’s balance sheet. At December 31, 2021, Relevium had $1,677,543 in accounts payable and accrued liabilities, $1,055,069 in customer deposits. In addition, the bank advances balance of $614,882, and the balance of current portion of long-term debt were reduced to $454,932 at December 31, 2021 (June 30, 2021: $2,801,310), all of which were partially offset by cash and cash equivalents of $1,330,102 (June 30, 2021: $64,346).

At December 31, 2021, the Company has 58,249,017 warrants issued and outstanding that, if fully exercised, could generate $2,912,451 in capital to support the Company’s activities. A description of Relevium’s warrant transactions can be found in Note 13 of Relevium’s interim condensed consolidated financial statements for the period ended December 31, 2021.

	Weighted average
Number of warrants	Exerciseprice($)	Expiry Date
46,894,194	0.05	May 2022
6,000,000	0.05	June 2022
2,049,916	0.05	July 2022
3,304,907	0.05	December 2022
58,249,017	0.05

Management also recognizes that capital markets are always in flux and there may be risks involved beyond its control in securing additional capital or having outstanding warrants exercised.

CAPITAL RESOURCES

The Company’s objective is to maintain a strong capital base in order to maintain investor, creditor and market confidence and to sustain future development of the business.

Management defines capital as the shareholders’ equity of the Company. The Company’s only significant source of funding has been the issuance of equity securities for cash and debt financing. The acquisition of Bioganix® and subsequent acquisitions are expected to change the status of the Company, from nonrevenue to a cash generating business.

9 | P a g e

The Company’s business model also includes the role of a consolidator in the nutraceutical e- commerce space, and the Company therefore expects to continue to make acquisitions in this space through the capital markets.

OFF-BALANCE SHEET ARRANGEMENTS

The Company did not have any off-balance sheet transactions as at December 31, 2021.

RELATED PARTIES TRANSACTIONS

The Company’s related parties include the CEO, CFO, directors, corporate secretary and family members of these parties. Unless otherwise stated, none of the transactions incorporates special terms and conditions and no guarantees were given or received. Outstanding balances are usually settled in cash. All balances of advances receivable and advances payable are measured at fair value and occurred in the normal course of business. Transactions with related parties for the six-month periods ended December 31, 2021 and 2020 were as follows:

	December 31	December 31
	2021	2020
	$	$
Management and directors’ fees	84,026	123,805
Professional fees to corporate secretary	-	9,000
Loan with Aurelio Useche	-	28,779

Amounts payable to related parties included in the non-current liabilities and in the accounts payable and accrued liabilities were as follows:

		Amounts owed to
		Related Parties
	As at	$
Management and directors	December 31, 2021	442,398
	June 30, 2021	391,339
Corporate Secretary	December 31, 2021	64,082
	June 30, 2021	64,082

Stock Option Plan

The purpose of the Stock Option Plan (the “Plan”) is to serve as an incentive for the directors, officers, employees and service providers who will be motivated by the Company’s success, as well as to promote ownership of common shares of the Company by these people. There is no objective attached to the Plan and no relationship to manage the Company’s risks. A description of Relevium’s stock option transactions can be found in Note 14 of Relevium’s interim condensed consolidated financial statements for the period ended December 31, 2021.

At December 31, 2021, the Company had a total of 3,355,000 options issued and outstanding that, if fully exercised, could generate $561,250 in capital to support the Company’s activities.

10 | P a g e

	Weighted average
Number of options	exerciseprice($)	Expiry Date
180,000	0.10	Dec. 2022
1,250,000	0.15	Sep. 2025
1,675,000	0.19	Dec. 2027
250,000	0.15	Oct. 2028
3,355,000	0.17

The Company has issued 3,355,000 options out of 6,983,684 options authorized under the incentive stock option plan.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

The preparation of the financial statements in conformity with IFRS requires management to make estimates and assumptions that affect amounts reported in financial statements and accompanying notes. There is a full description and a detailed presentation of the Company’s significant accounting policies, accounting judgements and uncertainties relative to significant estimates in the audited consolidated financial statements as at June 30, 2021 (Note 4).

OUTSTANDING SHARE DATA

As at the date of this MD&A, there are 329,492,346 common shares issued and outstanding of Relevium.

RISK FACTORS

For a detailed list of risks and uncertainties related to the business of Relevium, please consult the Company’s MD&A for the year ended June 30, 2021.

CAUTIONARY STATEMENT

This Management and Discussion Analysis may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events. Forward-looking information is based on several assumptions and is subject to several risks and uncertainties, many of which are beyond the Company's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Readers should not place undue reliance on forward- looking statements and forward-looking information and are cautioned that reliance on such information may not be appropriate for other purposes.

The Company does not undertake any obligation to update such forward-looking information, whether because of new information, future events or otherwise, except as expressly required by applicable law. These risks and uncertainties include, but are not limited to, those described under the headings “Financial Instruments & Risk Management” and “Inherent Risk Factors” in this MD&A and could cause actual events or results to differ materially from those projected in any forward-looking statements. The Company does not intend, nor does it undertake any obligation, to update or revise any forward-looking statements contained in this MD&A to reflect subsequent information, events, or circumstances or otherwise, except if required by applicable law.

11 | P a g e

ADDITIONAL INFORMATION

Additional disclosures pertaining to the Company’s material change reports, press releases and other information are available on the SEDAR website at www.sedar.com.

On behalf of the Board of Directors, we thank our shareholders for their continued support.

“Aurelio Useche”

Aurelio Useche Chief Executive Officer

March 13, 2023

12 | P a g e