T2 Metals Corp. — Interim / Quarterly Report 2021

Mar 25, 2021

AGUILA AMERICAN GOLD LIMITED MANAGEMENT’S DISCUSSION AND ANALYSIS FOR THE NINE MONTHS ENDED JANUARY 31, 2021

The following management discussion and analysis and financial review, prepared as at March 25, 2021, should be read in conjunction with the unaudited condensed consolidated interim financial statements and related notes for the nine months ended January 31, 2021 of Aguila American Gold Limited (“Aguila” or the “Company”). The following disclosure and associated financial statements are presented in accordance with International Financial Reporting Standards (“IFRS”). Except as otherwise disclosed, all dollar figures included therein and in the following management discussion and analysis (“MD&A”) are quoted in Canadian dollars.

Forward-Looking Statements

This MD&A contains certain statements that may constitute “forward-looking statements”. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Forward-looking statements are based upon the opinions and expectations of management of the Company as at the effective date of such statements and, in certain cases, information provided or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements.

These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. Accordingly, the actual events may differ materially from those projected in the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.

All of the Company’s public disclosure filings, including its most recent management information circular, material change reports, press releases and other information, may be accessed via www.sedar.com or the Company’s website at www.aguila.gold and readers are urged to review these materials, including the technical report filed with respect to the Company’s mineral property.

COVID-19

The global outbreak of a novel coronavirus pandemic identified as “COVID-19”, has had a significant impact on businesses through the restrictions put in place by the Canadian, provincial and municipal governments regarding travel, business operations and isolation/quarantine orders. At this time, it is unknown the extent of the impact the COVID-19 outbreak may have on the Company as this will depend on future developments that are highly uncertain and that cannot be predicted with confidence. These uncertainties arise from the inability to predict the ultimate geographic spread of the disease and the duration of the outbreak, including the duration of travel restrictions, business closures or disruptions, and quarantine/isolation measures that are currently, or may be put in place by Canada and other countries in which the Company may conduct future mineral interests or business acquisitions to fight the virus.

Company Overview

The Company is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange (“TSXV”) under the symbol “AGL”, the OTCBB under the symbol “AGLAF” and the Frankfurt Stock Exchange under the symbol “AGP”. On December 16, 2020 the Company upgraded its listing from the OTCBB to the OTCQB under the same symbol “AGLAF”. The Company’s principal office is located at #1305 - 1090 West Georgia Street, Vancouver, British Columbia. The Company is a junior mineral exploration company. On July 27, 2020 the Company entered into an agreement with Mawson Gold Limited (“Mawson”), a publicly traded company with a director in common, whereby Mawson granted the Company the right to earn up to an 80% indirect interest in the WUSA Gold Project. The Company can earn an initial 51% indirect interest (the “Initial Interest”) by funding a minimum of US $200,000 in exploration expenditures by December 31, 2020 and making a payment of US $25,000 to the

-1-

landholder. As at January 31, 2021 the Company has earned the Initial Interest. The Company can earn an additional 29% indirect interest by funding a further US $1,000,000 in exploration expenditures by December 31, 2022. The Company has also agreed to make all the remaining option lease payments and exploration expenditures required under the WUSA Option Agreement. See “Exploration Project - WUSA Gold Project - Agreements”.

During the nine months ended January 31, 2021 the Company completed private placement financings totalling $3,179,225. (See “Financings”)

Officer and Directors

As of the date of this MD&A the officers and directors of the Company are as follows:

Mark Saxon - Chief Executive Officer (“CEO”), President and Director Nick DeMare - Chief Financial Officer (“CFO”), Corporate Secretary, Director Dusan Berka - Director Blair Way - Director

Exploration Project - WUSA Gold Project

As of the date of this MD&A the Company has been granted the right to earn up to an 80% interest in the WUSA Gold Project located in the state of Oregon, USA.

Agreements

Effective December 27, 2017, as amended, Mawson Gold Limited and its subsidiary, Mawson Resources USA (“Mawson USA”) (collectively “Mawson”), entered into an agreement (the “WUSA Option Agreement”) whereby it was granted the option to lease and to conduct exploration on mineral rights (the “WUSA Gold Project”) located in Oregon, USA. Pursuant to the agreement Mawson had agreed to pay an annual option to lease payments (adjusted for inflation) of:

Option Year 1 - US $100,000 (paid by Mawson); Option Year 2 - payments of US $25,000 (the “August Payment”) on or before August 1, 2020 (paid) and US $75,000 on or before February 1, 2021 (paid); and Option Year 3 - US $25 per acre. The option lease payment will be determined by the acreage.

Mawson was also required to expend minimum annual exploration expenditures as follows:

Option Year 1 - US $500,000, which was met by Mawson as at November 30, 2018; Option Year 2 - US $750,000, of which a minimum of US $200,000 shall be completed on or before December 31, 2020, and the remaining US $550,000 on or before December 31, 2021; Option Year 3 - US $1,000,000; and Option Year 4 - US $1,000,000.

On July 27, 2020 Mawson entered into an agreement with the Company whereby it granted the Company the right to earn up to an 80% indirect interest in the WUSA Gold Project. The Company can earn an initial 51% indirect interest (the “Initial Interest”) by funding a minimum of US $200,000 in exploration expenditures by December 31, 2020 and making the August Payment to the landholder. As at January 31, 2021 the Company has earned the Initial Interest.

The Company can earn an additional 29% indirect interest by funding a further US $1,000,000 in exploration expenditures by December 31, 2022. The Company has also agreed to make all the remaining option lease payments and exploration expenditures required under the WUSA Option Agreement.

The Company and Mawson have a director in common.

-2-

Technical Report Summary

Overview

Mr. John Rice, MSc, P.Geo., AIPG, consulting geologist, prepared a technical report as a National Instrument 43-101 (“NI 43-101”) Technical Report (the “Technical Report”) on the WUSA Gold Project with an effective date of September 4, 2020. The WUSA Gold Project is located in the State of Oregon, USA, about 60 km south of the city of Eugene and 130km south of the capital, Salem.

The Technical Report was prepared for the Company to provide an initial technical assessment and summary of the WUSA Gold Project and in support of a letter of intent agreement (the “LOI”) with Mawson. The Technical Report can be found on the Company’s website www.aguila.gold or at www.sedar.com.

Property Description and Ownership

The WUSA Gold Project lies immediately east and south of the township of Cottage Grove within the Western Cascades, central-western Oregon, USA on the boundary of the Lane and Douglas Counties, and is accessible with a network of unpaved and forestry roads. Principal road networks originate from the Interstate 5 Freeway that marks the western boundary of the WUSA Gold Project, and the Row River Road that travels south from Cottage Grove towards Dorena.

The WUSA Gold Project is characterised by rugged vegetated mountains with deep incision by substantial watercourses. The area has a long history of forest harvesting, which has provided a robust gravel road network, even through areas of steep terrain.

The Company has gained future rights to the WUSA Gold Project through the LOI to form a Joint Venture with Mawson. Mawson’s interest in the WUSA Gold Project is held by its wholly-owned Canadian subsidiary M2 Resources Corp, which is the 100% owner of Mawson Resources USA Inc. (“Mawson USA”), a US registered corporation. In February 2021 the Company advised Mawson that conditions have been met under the LOI for Aguila to hold 51% equity in the WUSA Gold Project.

The WUSA Gold Project is the subject of a pre-existing agreement between Mawson USA and a private landholder (the “Landholder”). In 2017, the Landholder invited Mawson USA to explore a defined area of their land, their Bureau of Land Management claims, and the public or private land that surrounds or lies within their landholding, subject to various conditions. Mawson USA received confidential data from the Landholder, gained access rights for surface sampling, and could select smaller priority areas for additional detailed work under the WUSA Option Agreement. Mawson completed regional exploration and data collection, and transferred a number of areas to the WUSA Option Agreement.

Through the Joint Venture with Mawson, the Company has gained rights to the priority areas, the confidential data, rights to explore the large forestry area, and rights to select additional smaller priority areas for detailed work. The Company must complete certain minimum exploration to ensure the Joint Venture with Mawson and the WUSA Option Agreement with the Landholder remain in good standing. Conditions have been met to achieve a 51% holding in the WUSA Gold Project.

Exploration History

The WUSA Gold Project and surrounding region is very under-explored in comparison to similar North American cordilleran terranes. The mineral and land rights have been held as a contiguous parcel by one third party landholder for at least 50 years. The Landholder has not completed significant modern exploration prior to the agreement with Mawson and has not permitted exploration to be undertaken on their land.

Very limited exploration was undertaken by the Landholder across the WUSA Gold Project area to evaluate the potential for undiscovered mineralized systems. Sporadic geological mapping and low level prospecting was completed across the WUSA Gold Project area during the late 1980’s and early 1990’s, culminating in the drilling of 10 percussion drillholes at the Walker Creek prospect.

-3-

Following the establishment of an agreement with the Landholder, Mawson undertook exploration during 2018 to test the broader WUSA Gold Project and follow up on priority prospect areas. Mawson undertook a variety of regional and prospect-based work programs including geochemistry and geophysics, with a focus on the Scorpion-Cinnabar and Huckleberry areas. Both prospects were drill tested, with the one hole at Scorpion-Cinnabar intersecting gold mineralization with widespread alteration and anomalous pathfinder metals indicative of potential for a lowsulphidation epithermal system.

Geology and Mineralization

The Western Cascades, where the WUSA Gold Project is located, lie between the High Cascade Range and Willamette Valley. Geologically the region is generally comprised of late Eocene to late Miocene andesites, basaltic andesites, pyro-volcaniclastic rocks and, to a lesser extent, of dacite, trachyte, and rhyolite.

The extensive development of pyroclastic rocks, widespread alteration and hydrous alteration phases in the Western Cascades evidences the hydrous magmatic setting and the formation in a subduction-related environment. The thickness of volcanic accumulation in the Western Cascades exceeds 6,000m. Interbedded sedimentary rocks unrelated to volcanism constitute a minor component of the Western Cascades, while small dioritic intrusions are widespread and commonly cluster in the larger mining districts.

Most base and precious metal occurrences in rocks of the Western Cascades are typically composed of economic sulphide minerals within quartz veins or shear zones, and contain gold with or without silver, lead, zinc, copper, and (or) antimony. Vein textures and alteration assemblages suggest classification as polymetallic vein deposits or epithermal based on the host rock, commodities present, and mineralogy.

While the WUSA Gold Project area remains poorly studied, the geological setting, hydrothermal alteration, styles of gold-silver mineralization, and close spatial and timing association with substantial hot-spring mercury deposits (Black Butte), suggests the region has potential for high level low-sulfidation and epithermal precious metal deposits.

A number of prospect areas have been defined within the WUSA Project area. The Walker Creek, Huckleberry and Scorpion-Cinnabar prospects are all associated with intense epithermal style mineralization, while Walker Creek and Scorpion-Cinnabar both demonstrate gold in drilling.

Conclusions and Recommendations of the Technical Report

Through the Joint Venture, the Company has gained access and prospective title to a large area of privately owned mineral rights within the Western United States. The work completed by the Landholder and Mawson, though sparse, has demonstrated bedrock gold mineralization in areas of intense epithermal hydrothermal style alteration.

Consistent surface exploration has never been completed suggesting the potential for discovery near surface and at relatively low cost. The volume of drilling is extremely low considering geological setting, accounted for by the limited past access granted by the Landholder.

Based on the historical information reviewed to date, the best opportunities for future exploration success and potential development toward mining, are the Scorpion-Cinnabar and Walker Creek prospects. Both sites encountered gold in bedrock drilling which has not been followed up.

Mr. John Rice, author of the Technical Report, recommended additional exploration expenditure on the WUSA Gold Project. General recommendations applying to the regional areas are provided, along with proposed exploration programs and budget estimates for the more advanced prospects.

Recommendation for Phase 1 and 2 exploration across the WUSA Gold Project totals approximately $1,250,000.

Exploration Activities Completed by the Company

On December 16, 2020 the Company announced that it had completed four diamond core holes for a total of 649 meters.

-4-

The Company’s drill program tested the Scorpion-Cinnabar prospect, one of four prospects identified at the WUSA Gold Project to date. Scorpion-Cinnabar is defined by a 2.2 km long and up to 400-metre-wide gold and arsenic in soil geochemical anomaly that trends south of the historic Black Butte epithermal mercury mine. An association between mercury and epithermal gold mineralization is very common, where gold may lie at depth or along strike from the mercury enriched zone.

Drilling used existing forest road access and tested a strike length of 1.2 km along the gold-arsenic anomaly trend.

Table 1: Drillhole Collar co-ordinates (NAD27 / UTM zone 10N)

DRILL HOLE	EAST	NORTH	AZIMUTH	DIP	TOTAL DEPTH (M)
SDH-02-20	495319	4822677	293	-80	119.0
SDH-03-20	495502	4822583	275	-50	240.0
SDH-04-20	495371	4821361	278	-50	237.0
SDH-05-20	495236	4821025	268	-65	52.0

All holes intersected andesite volcanics and volcaniclastics with regular fault, breccia, altered and oxidized zones that correspond to hydrothermal fluid pathways and may be associated with gold-silver mineralization.

Drill core has been geologically and structurally logged, photographed, and prepared for sampling. Due to a heavy sample backlog and COVID-19 work restrictions, analytical laboratory turnaround is slow and results have not been received.

In March 2021, the Company announced completion of a detailed remote sensing study for the WUSA Gold Project. This work generated a structural, geological and exploration target map on a scale previously unavailable for the property. The study processed and interpreted various satellite datasets to provide direct targets based on alteration signatures, and indirect targets based on domal and structural positions.

The remote sensing study integrated a range of regional datasets with the intent of prioritizing gold mineralization at the Walker Creek and Scorpion-Cinnabar prospects and identifying new prospective targets. Once the data from the fall 2020 drill program is received this will be integrated to provide a greater understanding of the project.

ASTER, Sentinel-2 super spectral, Lidar and NASA’s STRM digital elevation data were processed to provide direct targets based on alteration signatures, and indirect targets based on domal and structural positions. While the WUSA Gold Project itself exceeds 70,000 Ha, an area more than four times this size was studied for context and to highlight regional opportunities. As the surface and mineral rights for the WUSA Gold Project have been held by a single landholder without significant exploration for more than 50 years, historic exploration data is very sparse, and this study provides a much needed regional understanding.

The study identified zones of mixed alteration potentially indicative of epithermal fluids, and zones of structural complexity that crosscut the volcanic/volcaniclastic pile. Domal features may suggest shallowly buried syn-volcanic intrusions that are commonly associated with epithermal gold mineralization. These areas will be integrated with existing geochemical data and form immediate targets for surface follow up

Exploration of prospect areas is being planned including stream sediment and soil sampling that has only been locally completed across the WUSA Gold Project area. The WUSA Gold Project provides multiple opportunities for discovery, covering approximately 70,000 ha of land that has seen very little modern exploration. The land and mineral rights have been held by a single landholder for more than 50 years over which time mineral rights have never been optioned to third parties.

Qualified Person

The qualified person for the Company’s projects, Mr. Mark Saxon, the Company’s CEO, a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists, has reviewed and verified the contents of this document.

-5-

Selected Financial Data

The following selected financial information is derived from the unaudited condensed interim financial statements of the Company.

the Company.
		Fiscal 2021			**Fiscal **	2020		Fiscal 2019
	Jan. 31 2021 $	Oct. 31 2020 $	Jul. 31 2020 $	Apr. 30 2020 $	Jan. 31 2020 $	Oct. 31 2019 $	Jul. 31 2019 $	Apr. 30 2019 $
Operations:
Revenues	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Expenses	(160,209)	(319,201)	(34,846)	(20,408)	(17,581)	(29,339)	(56,982)	(19,827)
Other items	(958)	4,523	(1,279)	(3,310)	(310)	90	42	56
Net loss	(161,167)	(314,678)	(36,125)	(23,718)	(17,891)	(29,249)	(56,940)	(19,771)
Basic and diluted loss per share	(0.01)	(0.02)	(0.01)	(0.00)	(0.01)	(0.01)	(0.02)	(0.01)
Dividends per share	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Balance Sheet:
Working capital (deficiency)	2,010,890	2,567,943	94,301	(332,601)	(308,467)	(304,792)	(275,543)	(342,643)
Total assets	2,590,263	2,756,053	309,120	32,105	43,345	23,190	36,299	27,993
Total long-term liabilities	Nil	Nil	Nil	Nil	Nil	Nil	Nil	Nil

Results of Operations

Corporate activities had been maintained at minimal levels while the Company reviewed business opportunities and completed its recapitalization. Expenditures increased commencing July 2020 with the signing of the LOI and resultant increase in exploration and corporate activities.

Three Months Ended January 31, 2021 Compared to Three Months Ended October 31, 2020

During the three months ended January 31, 2021 (“Q3”) the Company incurred a net loss of $161,167 compared to a net loss of $314,678 for the three months ended October 31, 2020 (“Q2”), a decrease in loss of $153,511, primarily due to the Company granting share options and recording share-based compensation of $182,190 during Q2 compared to $nil for Q3.

Nine Months Ended January 31, 2021 Compared to Nine Months Ended January 31, 2020

During the nine months ended January 31, 2021 (the “2021 period”) the Company reported a loss of $515,450, compared to a loss of $104,080 for the nine months ended January 31, 2020 (the “2020 period”), an increase in loss of $411,370 due to an increase in expenses from $103,902 during the 2020 period to $517,736 during the 2021 period. Specific general and administrative expenses of variance between the 2021 and 2020 periods are noted below. During the 2021 period the Company:

• (i) incurred $57,799 for corporate development compared to $nil during the 2020 period. During the 2021 period the Company engaged several firms to conduct market awareness programs;

• (ii) incurred $36,137 for legal services provided with respect to the drafting of the LOI, regulatory filings, incorporation of U.S. subsidiary and other various corporate services. No legal services were incurred during the 2020 period;

• (iii) incurred $17,858 (2020 - $nil) for professional fees provided by advisors to assist with corporate services;

• (iv) incurred $79,580 for director and officer compensation compared to $36,000 during the 2020 period. Effective July 23, 2020 the Company engaged Mr. Mark Saxon, as its CEO and President at a current renumeration of $7,000 per month. Mr. Saxon was compensated $43,580 during the 2021 period. See also “Transactions with Related Parties”;

• (v) recognized share based compensation of $182,190 (2020 - $38,220) on the granting of 1,904,000 (2020 - 294,000) share options;

• (vi) incurred $36,350 (2020 - $13,200) for accounting and administrative services required for the increase in corporate activities and property acquisition; and

• (vii) incurred $63,177 (2020 - $nil) for investor relations services.

-6-

The Company holds its cash in interest bearing accounts in major financial institutions. During the 2021 period the Company recorded interest income of $7,084 compared to $233 during 2020 period . During the 2021 period the Company had significantly higher levels of cash on deposit.

Investing Activities

In July 2020 the Company entered into the LOI and was granted the right to earn up to an 80% interest in the WUSA Gold Property. See “Exploration Project - WUSA Gold Project”. During the 2021 period the Company made $129,178 (US $100,000) option lease payments and incurred $347,960 for exploration and development activities.

Financings

2021 Period

During the 2021 period the Company completed financings totalling $3,179,225 as follows:

• (i) on June 11, 2020 a non-brokered private placement of 3,000,000 units for proceeds of $300,000;

• (ii) on June 25, 2020 a non-brokered private placement of 1,905,000 units for proceeds of $200,025.

• (iii) on September 25, 2020 a non-brokered private placement of 11,907,556 units for proceeds of $2,679,200.

The net proceeds are being used for exploration and development activities on the WUSU Gold Project and general working capital.

During the 2021 period the Company issued 175,000 common shares on the exercise of warrants for proceeds of $23,650.

2020 Period

No financings were conducted during the 2020 period. During the 2020 period the Company issued a total of 494,000 common shares on the exercise of warrants and share options for proceeds of $99,620.

Advances

Advances had been previously provided from private companies controlled or affiliated with the Company’s CFO. Effective January 20, 2020 the Company agreed to commence accruing interest at the rate of 12% per annum. During the 2021 period the Company repaid $120,229, representing the $115,000 of principal and $5,229 of accrued interest.

Financial Condition / Capital Resources

The Company manages its capital structure and makes adjustments to it, based on the funds available to the Company, in order to support the option lease payments and exploration of mineral properties. Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Company, is reasonable.

As at January 31, 2021, the Company had working capital of $2,010,890 and considers that it has adequate resources to maintain anticipated levels of corporate administration and budgeted exploration activities on the WUSA Gold Project for the next twelve months. The Company’s operations are typically funded from equity financings which are dependent upon many external factors and may be difficult to impossible to secure or raise when required. While the Company has been successful in securing financings in the past, there can be no assurance that it will be able to do so in the future. See also “COVID-19”.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Proposed Transactions

The Company has no proposed transactions.

-7-

Critical Accounting Estimates

The preparation of financial statements in conformity IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenditures during the reporting period. Examples of significant estimates made by management include the determination of mineralized reserves, plant and equipment lives, estimating the fair values of financial instruments, impairment of long-lived assets, reclamation and rehabilitation provisions, valuation allowances for future income tax assets and assumptions used for share-based compensation. Actual results may differ from those estimates.

A detailed summary of all the Company’s critical accounting estimates and sources of estimation is included in Note 3 to the April 30, 2020 audited annual financial statements.

Changes in Accounting Policies

A detailed summary of all the Company’s significant accounting policies and accounting standards and interpretations issued but not yet effective, is included in Note 3 to the April 30, 2020 audited annual financial statements.

Transactions with Related Parties

A number of key management personnel, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of those entities. Certain of these entities transacted with the Company during the reporting period.

• (a) Transactions with Key Management Personnel

During the 2021 and 2020 period the following compensation was incurred with respect to the Company’s executive officers:

Mr. Saxon - professional fees(1) Mr. DeMare - professional fees(2)	2021 $ 43,580 27,000 70,580	2020 $ - 27,000
		27,000

(1) Effective July 23, 2020 Mr. Saxon was appointed CEO and President, with a current compensation of $7,000 per month.

(2) Effective July 23, 2020 Mr. DeMare resigned as interim CEO but remains as CFO.

As at January 31, 2021, $59,180 (April 30, 2020 - $170,100) was outstanding for past fees.

In addition, the Company incurred share-based compensation for key management personnel as follows:

Mr. Saxon - share-based compensation Mr. DeMare - share-based compensation	2021 $ 84,000 10,710 94,710	2020 $ - 14,820
		14,820

• (b) Transactions with Other Related Parties

• (i) During the 2021 and 2020 period the following compensation was incurred with respect to nonexecutive directors of the Company:

executive directors of the Company:
Mr. Way - professional fees Mr. Berka - professional fees	2021 $ 4,500 4,500 9,000	2020 $ 4,500 4,500
		9,000

-8-

As at January 31, 2021 $37,076 (April 30, 2020 - $75,482) was outstanding for past fees.

In addition, the Company incurred stock-based compensation with respect to non-executive directors as follows:

directors as follows:
Mr. Way - share-based compensation Mr. Berka - share-based compensation	2020 $ 15,750 15,750 31,500	2019 $ 7,800 7,800
		15,600

• (ii) During the 2021 period the Company incurred $36,350 (2020 - $13,200) for accounting and administration services provided by Chase Management Ltd. (“Chase”), a private company owned by Mr. DeMare. As at January 31, 2021 $750 (April 30, 2020 - $nil) remained unpaid.

During the 2021 period the Company also recorded $3,780 (2020 - $7,800) share-based compensation for share options granted to Chase.

• (iii) The Company has received ongoing advances from private corporations controlled or affiliated with Mr. DeMare. During fiscal 2020 the Company received further advances of $48,500 and repaid $47,000. Effective January 20, 2020 the Company agreed to commence accruing interest at the rate of 12% per annum. During the 2021 period the Company recorded $1,373 (fiscal 2020 - $3,856) interest expense and repaid $120,229, representing the $115,000 principal and $5,229 of accrued interest.

• (iv) On June 11, 2020 directors and officers purchased a total of 1,205,000 units of a 3,000,000 unit private placement completed at $0.10 per unit. On June 25, 2020 directors and officers purchased a total of 1,260,000 units of a 1,905,000 unit private placement completed at $0.105 per unit. On September 25 2020 directors and officers of the Company and close family members purchased a total of 424,000 units of a 11,907,556 unit private placement completed at $0.225 per unit.

Outstanding Share Data

The Company’s authorized share capital is unlimited common shares without par value. As at March 25, 2021, there were 20,226,541 issued and outstanding common shares, 8,231,278 warrants outstanding with a exercise prices ranging from $0.13 to $0.45 per share and 1,904,000 share options outstanding with exercise prices of $0.32 per share and $0.40 per share.

-9-