Teuton Resources Corp.

Management’s Discussion & Analysis for the Quarter Ended September 30, 2021

2130 Crescent Road Victoria, BC V8S 2H3 Tel: 778-430-5680 E-Mail: [email protected] Website: www.teuton.com

MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2021

The following management’s discussion and analysis of the financial condition of Teuton Resources Corp. (the “Company”) and results of operations of the Company, prepared as of November 29, 2021 should be read in conjunction with the unaudited condensed financial statements and the notes thereto for the nine month period ended September 30, 2021 which were prepared in accordance with International Financial Reporting Standards. All amounts are expressed in Canadian dollars unless otherwise indicated.

OVERALL PERFORMANCE

Teuton Resources Corp. (“Teuton” or the “Company”) is currently an exploration stage company engaged in the acquisition, exploration and optioning of mineral properties, primarily in the Treaty Creek-KSMBrucejack–Premier-Stewart mineral trend of northwestern British Columbia (the southern portion of the “Golden Triangle”). Emphasis at this point is on exploring for gold and silver, and to a lesser degree, copper, lead and zinc deposits. The Company also retains many net smelter royalty interests, including ten within and around the Sulphurets Hydrothermal System (a 0.98% royalty is owned in the Goldstorm goldcopper deposit). Subject to the results of ongoing exploration and development activities, the Company may require additional capital in the future to continue these exploration and development programs and the administrative costs associated with them. The Company often seeks third parties to undertake options on its properties.

From July 2015 to the present, the Company has been successful in completing multiple option agreements and has received more than $3,500,000 in option payments as well as a substantial number of shares in certain of the optionee companies. Again, in addition to the results of ongoing programs, general trends in the overall conditions of the mining industry will largely dictate the Company’s ability to raise capital.

OUR BUSINESS

The Company’s present focus is the exploration of its claims in the Golden Triangle/Stewart region of northwestern British Columbia. The Company retains a 20% carried interest (carried until a production decision is made) in the Treaty Creek property hosting many gold prospects including the Goldstorm/Copper Belle zone, a resource estimate for which was completed in March of 2021 (19.4 million oz. of gold equivalent, contained within 817.4 million tonnes grading 0.74 g/t gold Eq ) Teuton, on April 28, 2021 announced it was investing $9.6 million into Tudor Gold’s private placement which funds will be mostly directed to advancing continuing exploration at Treaty Creek.

In the first quarter of 2021 the Company received $520,000 and subsequent to the end of the quarter an additional $1,050,000 pursuant to all remaining cash payments due under the Fairweather, Delta, High North and Orion property option agreements with Tudor Gold. Teuton retains Net Smelter Royalties in these properties varying from 1 to 2.5% with no buyback provisions. During the third quarter of 2021, the Company completed an option on its Harry property. Optimum Ventures agreed to earn a 80% interest in the Harry by spending $9 million in exploration over five years, paying $1.5 million to Teuton and issuing 4.0 million of its shares to Teuton. Teuton also retains a 2.0% NSR. Jayden Resources, the original optionee of the Harry, agreed to forego its interest and received $27,000 and 725,000 shares of Optimum Ventures for signing the quitclaim.

Drilling began in July 2021 on the Midas claims (75% Teuton – 25% Silver Grail), testing ZTEM anomalies. Although sulfides were intersected over long intervals in 3 of 4 holes, they did not contain precious metal values. A drill test of the Z1 geophysical anomaly on the Eskay Reef property was postponed to the 2022 season.

EXPLORATION

Treaty Creek Property

The Treaty Creek property is located about 17 km east of the Eskay Creek mine and was first acquired by the Company, mostly by staking, in 1983-4. In subsequent years it was optioned out on four separate occasions, first to Tantalus Resources, then to Homestake Mines, to Global Resources and finally to Heritage Explorations, before being returned to the Company. On April 4, 2007, the Company granted American Creek Resources Ltd. (“American Creek”), a TSX Venture Exchange listed company, an option to explore the Company’s Treaty Creek project. Subsequently, American Creek earned a 51% interest in the property with Teuton retaining 49%.

On May 11, 2016, Teuton announced that a joint venture had been formed with Tudor Gold Corp. holding an immediate 60% interest and each of American Creek and Teuton Resources Corp. holding an immediate 20% interest in the joint venture. Both Teuton’s and AMK’s 20% interests are fully carried during the exploration period until a production notice is given. This means that neither Teuton nor AMK will have to contribute any money to the project until such time as Tudor Gold takes the property to a production notice. Thereafter, each will be responsible for 20% of the costs going forward under and subject to the terms of the joint venture. Teuton was also granted a 0.98% NSR on all of the core claims comprising the property (which includes the Goldstorm/Copper Belle zone upon which a substantial gold resource was recently announced). In the area surrounding the core claims (the “peripheral claims”) Teuton owns a 0.49% NSR; St. Andrew Goldfields owns a 2% NSR in these claims and Teuton has an option to purchase one half of that interest for $1 million—should Teuton exercise that option it will own a 1.49% NSR in the peripheral claims.

The Treaty Creek property sits northeast and along geological trend of Seabridge Gold’s KSM gold-copper property, home to three world-class porphyry copper-gold deposits (the Mitchell, Kerr and Iron Cap as well as to the large Snowfield gold deposit) and north of Pretium Gold’s Brucejack property. Like the KSM and Brucejack properties, the Treaty Creek property is marked by abundant, large alteration zones (gossans) which can be seen from miles away and are conspicuous because of their bright yellow, orange and red colours. The Sulphurets thrust fault, recognized by BC government geologists as being spatially related to all of the large copper- gold deposits on Seabridge’s KSM property, passes northeast into the Treaty Creek property.

From 2016 to 2019, Tudor Gold carried out extensive drilling on various targets at Treaty Creek. In early 2019, geologist Ken Konkin was hired by Tudor Gold to run their ongoing exploration programs. Mr. Konkin had been instrumental in the development of the Pretium Resources’ Valley of the Kings deposit, in production for the past four years. Re-examination of previous drilling results by Mr. Konkin determined that a new distinct zone, the “Goldstorm” existed due north of the Copper Belle zone.

The first batch of drilling results from Treaty Creek in 2019 contained a promising intersection, Hole GS1942. Ken Konkin described it as follows: “The Goldstorm system continues to grow rapidly along strike to the northeast and towards the footwall contact zone to the southeast. The best near-surface intercept obtained to-date on the project has been obtained from the latest hole; GS19-42. This is a vertical hole that is a 150m step-out to the northeast from drill hole CB18-39 (0.981g/t Au over 563.8m intercept). The higher grade upper portion of last year’s hole CB18-39 averaged 1.141 g/t Au over 280.5m compared to the same upper mineralized horizon of GS19-42 that averages 1.268 g/t Au over a 252.0 m intercept. The system appears to be gaining strength to the northeast as the depth is now showing to exceed 700m, with an average of 0.683 g/t Au over 780 meters of vertical intercept. The mineralized horizon appears to be near flat-lying with excellent grade consistency between holes along the upper horizon. Exploration efforts will attempt to extend the zone further to the northeast with yet another 150m NE step-out hole from GS19-42.”

Hole GS19-49 was drilled to 960.1 m, at -80° dip, on Section 111+00 NE next to vertical hole GS19-48, which yielded 0.725 g/t Au over 838.5m, including an upper horizon that averaged 1.048 g/t gold Au over 328.5 m. Hole GS19-49 returned equally impressive results with a comparable 0.696 g/t Au over 826.5 m and the upper horizon averaging 0.998 g/t Au over 249 m. Along the same section, hole GS19-52 (-50° dip at 115° azimuth) was drilled much longer than expected because the Goldstorm system continues at least 700 m to the southeast ; GS19-52 averaged 1.004 g/t gold over 336 meters with a higher grade core of 2.006 g/t gold over 87 meters within the upper horizon.

The final three footwall extension holes (GS19-50, GS19-51 and GS19-53) were completed on section 110+00 NE. These were successful in extending the width of the mineralized zone to the southeast:

Hole GS19-50 returned an average of 0.602 g/t Au over 577.5 m including 0.811 g/t Au over 267.0 m in the ‘300 Horizon’ .
Hole GS19-51 returned an average of 0.721 g/t Au over 246 m in the ‘300 Horizon’ and a lower horizon that averages 1.017 g/t Au over 40.5 m.
Hole GS19-53 returned an average of 0.984 g/t Au over 147.0 m in the ‘300 Horizon’. GS19-53 was stopped in gold mineralization due to inclement end-of-season weather.

Tudor Gold Exploration Manager, Ken Konkin commented as follows: “Clearly the results of the previously reported deep vertical step-out holes demonstrate the impressive size and grade consistency of the Goldstorm system. Within the overall mineralized package of fragmental intermediate volcanic rocks there are several sub-horizontal horizons of significantly higher gold grades. The uppermost portions of the previously reported holes GS19-42, GS19-47 and GS19-48 contained respectively, 1.268 g/t gold over 252 m, 0.828 g/t gold over 301.5 m and 1.048 g/t gold over 328.5 m. We now have several other drill holes with excellent near-surface gold values to add to this list of growing intercepts. GS19-52 has returned the highest core gold grades of 2.006 g/t Au over 87 m within a 336m intercept of 1.004 g/t Au. These intercepts are part of the uppermost portion of the Goldstorm system which we refer to as the ‘300 Horizon’. The ‘300 Horizon’ remains open along strike to the northeast as well as to the southeast. In addition, the lower horizons of the Goldstorm system also remain open in all directions and the lowest horizon is open at depth. We are seeing consistent silver and copper mineralization associated with the deeper gold horizons such as the previously reported 151.5 m zone of 0.572 g/t gold, 8.5 g/t silver and 0.21% copper that was intercepted from 665.0 to 816.5 m in GS19-47 and a 66.0 m zone with 0.958 g/t gold, 3.9 g/t silver and 0.35% copper, which was intercepted from 874.5 to 940.5 m in GS19-48. Similarly, we have now seen in GS19-49, a 78 m intercept averaging 1.145 g/t gold, 11.2 g/t silver and 0.21% copper (750-828 m) and in GS19-52 an 88.5 m interval averaging 0.352 g/t gold, 9.3 g/t silver and 0.25% copper (515-603.5 m). Not only does the Goldstorm Zone remain open at depth and along strike, we are now seeing base-metal associations possibly as part of a zonation within the hydrothermal system.”

A Mineral Resource Estimate was completed by P&E Mining Consultants at the Goldstorm & Copper Belle zones in 2021, based on a total of 218 drill holes totaling 105,658.8 metres. The constraining open-pit shell contains 14.15 million ounces of Measured and Indicated gold equivalent ounces (“AuEq”) at an average grade of 0.72 gpt AuEq and 5.26 million Measured and Indicated AuEq ounces at an average grade of 0.80 gpt AuEq for the out-of-pit Mineral Resources. Cut-off grades of 0.30 gpt AuEq were used inside the constraining open-pit shell and a higher cut-off grade of 0.46 gpt AuEq was used for the out-of-pit Mineral Resource Estimate which includes underground constrained blocks. The Goldstorm Zone remains open in all directions and at depth. The effective date of the Mineral Resource Estimate is March 1, 2021.

TABLE 1: INITIAL MINERAL RESOURCE ESTIMATE SUMMARY

Pit Constrained Mineral Resource Estimate	Pit Constrained Mineral Resource Estimate	Pit Constrained Mineral Resource Estimate	Pit Constrained Mineral Resource Estimate
Classification	Cut-Off AuEq gpt	Tonnes Million	Au gpt	Ag gpt	Cu %	AuEq gpt	Au M oz	Ag M oz	Cu M lb	AuEq M oz
Measured	0.30	283.2	0.71	2.9	0.03	0.76	6.49	25.96	187.3	6.89
Indicated	0.30	326.6	0.59	3.5	0.08	0.69	6.21	37.25	583.2	7.26
Meas & Ind	0.30	609.8	0.65	3.2	0.06	0.72	12.7	63.20	770.5	14.15
Inferred	0.30	139.4	0.72	3.6	0.04	0.77	0 3.22	16.29	113.7	3.46

Out-of-Pit Mineral Resource Estimate

Classification	Cut-Off AuEq gpt	Tonnes Million	Au gpt	Ag gpt	Cu %	AuEq gpt	Au M oz	Ag M oz	Cu M lb	AuEq M oz
Measured	0.46	15.4	0.71	3.9	0.06	0.79	0.35	1.95	19.0	0.39

Indicated	0.46	190.5	0.70	4.6	0.07	0.80	4.28	28.26	306.6	4.88
Meas & Ind	0.46	205.9	0.70	4.6	0.07	0.80	4.63	30.21	325.6	5.26
Inferred	0.46	172.3	0.72	4.4	0.06	0.80	4.00	24.28	216.5	4.43

Total Mineral Resource Estimate	Total Mineral Resource Estimate	Total Mineral Resource Estimate

Classification	Cut-Off AuEq gpt	Tonnes Million	Au gpt	Ag gpt	Cu %	AuEq gpt	Au M oz	Ag M oz	Cu M lb	AuEq oz
Measured	0.30 &	298.6	0.71	2.9	0.03	0.76	6.84	27.91	206.3	7.28
Indicated	0.30 &	517.1	0.63	3.9	0.08	0.73	10.4	65.50	889.8	12.13
Meas & Ind	0.30 &	815.7	0.66	3.6	0.06	0.74	17.3	93.41	1,096.	19.41
Inferred	0 6 0.30 &	311.7	0.72	4.0	0.05	0.79	3 7.22	40.57	330.2	7.90
	0 6

[Note: The following metal prices were used to calculate the Au Eq metal content: Gold $1,322/oz, Ag: $15.91/oz, Cu: $2.86/lb. Calculations used the formula Au Eq g/t = (Au g/t) + (Ag g/t x 0.012) + (Cu% x 1.4835). All metals are reported in USD and calculations do not consider metal recoveries.]

On August 4, 2021, Teuton reported the first batch of drilling results from the 2021 program at Treaty Creek. Highlights are as follows: Very consistent, near-surface 300 Horizon intercepts such as GS-21-103 that intersected 801.0 meters of 0.704 g/t AuEq including a strong upper pulse of enrichment averaging 2.025 g/t AuEq over 75.0 meters or 168.0 meters of 1.391 AuEq.; An impressive 474.0 m intercept of DS-5 in hole GS-21-110 that averages 1.039 g/t AuEQ including 216.0 meters of 1.712 g/t AuEq or 130.5 meters of 2.389 g/t AuEq.; All drill holes hit significant gold mineralization (GS-21-107 was lost before encountering the DS-5 Zone and that hole will be re-drilled).; and, Goldstorm Deposit remains open in all directions and at depth as drilling continues (please refer to the Sedar.com August 4, 2021 posting for full details). Additional promising drill results can be found in news releases dated August 30, September 27, and November 24, 2021.

King Tut and Tuck Properties

The Company retains royalty interests of 2.0% in the King Tut and Tuck properties, adjoining due south of the Brucejack property of Pretium Resources Inc. The Brucejack property contains the Valley of the Kings gold deposit which has been in successful production for over four years (construction costs of $1Billion CDN). Recently, Newcrest Mining made a $3.5 billion offer to take over Pretium Resources.

In July 2015, Teuton optioned a 100% interest in its King Tut and Tuck properties (including a single claim from the Silver Crown property) to Pretium for $1.8 million payable over 4 years, subject to a 2% NSR payable to Teuton. It has now received all $1.8 million which means that Pretium now owns a 100% interest in the properties subject to a 2% NSR (no buyback) in favour of Teuton.

The “King Tut” pros pect lies on a rock island (nunatak) recently exposed by melting ice. It was originally planned to drill up to 5 or 6 holes on this site but because the drill was on loan from a neighbouring company, it had to be returned within 12 days and this allowed only enough time to drill one hole. This hole ran 222m grading 0.88 g/t gold. In 2013, the Company carried out further surface sampling in the King Tut area which resulted in the discovery of a new stockwork zone that carried gold values ranging from 0.140 to 1.835 oz/ton gold.

A 2014 program of reconnaissance sampling led to the discovery of a new gold bearing area, called the “Tuck zone” on the Tuck property, which adjoins the King Tut to the south. It was recently exposed by ablation of an icefield that had previously obscured the mineralization. The zone is now exposed over a minimum 200m width and for 300m along strike before disappearing under snow and ice. Gold and anomalous arsenic values are associated with intensely sericite altered volcanic rock. The altered rocks are jarosite stained with a strong quartz stockwork that locally forms up to 50% of the rock. Pyrite as coarse grains and as fine grained veinlets up to 1cm wide form up to 10% of the zone overall. A fine black unidentified sulphide occurs in some of the rocks sampled. A drill was mobilized to the property and sixteen, mostly short holes, were drilled, testing a limited area in the southern portion of the Tuck quartz

stockwork zone. Weather-related and logistical considerations precluded a test of the northern portion of zone (the pictures on the company website are of the northern portion of the zone). Although no highgrade gold-bearing intercepts were recorded in the program, the work is considered quite encouraging because of the broad lower-grade gold results encountered. Detailed results can be seen in the news release filed on Sedar on November 17, 2014.

Big Gold Property

Teuton’s Big Gold property is situated 12km southwest of Pretium Resource’s Brucejack property. A new alteration zone on the property was discovered during a routine follow-up of anomalous samples taken during a regional reconnaissance conducted in 2006. In the last nine years the area has opened up completely, and is now free from snow and ice for a distance of at least one km north-south, and up to 800m east-west. The area is marked by prolific sericite alteration and exhibits strong shearing. Numerous quartz sericite schist sub-zones have been discovered of which two have been tested to date by limited sampling.

One of the sub-zones, traced for at least 150m and with an indeterminate length, is up to 10 to 15m wide and features quartz-pyrite mineralization. In some areas, pyrite forms up to 30% of the rock and some samples from the zone have shown arsenopyrite and jarosite alteration. The sub-zone is bracketed by outcrops of limestone and also a volcanic rock carrying abundant mariposite. The quartz sericite schist shows a vertical foliation and forms a series of hummocks where the silicification has been more intense and the rock less resistant to erosion. Eight grab samples taken along a 150m traverse of the sub-zone averaged 0.81g/t gold equiv. (0.66 g/t gold and 10.7 g/t silver at a 70:1 ratio; gold ranged from 0.04 to 1.82 g/t and silver from 4.0 to 23.5 g/t).

Elevation is at 1380m and the topography of most of the alteration zone is quite easily traversable. Access at present is by helicopter, but in the future the property could be accessed by the already existing road ending on Teuton’s Four J’s property, from there directly west up the Frank Mackie Glacier to the property a distance of some 7km.

Drilling of the Big Gold commenced in August of 2016 and 8 holes were completed before the end of the program. Many intercepts were obtained containing anomalous levels of gold, silver and zinc. A ZTEM survey completed in 2018 suggested that the northeastern portion of the property is prospective and the Company intends to follow up these results in 2022. A permit for drilling the Big Gold was recently granted.

Eskay Rift Property

The Eskay Rift property adjoins to the south of Teutons’ Big Gold property. Much of the claim area lies along the “Eskay Rift” described by D.J. Alldrick in Paper 2006-1, Geological Fieldwork 2005 as “a faultbounded basin hosting thick accumulations of bimodal basalt and rhyolite flows, with intercalated sedimentary rocks. Rift strata record the final eruptive events of the Early to Middle Jurassic Hazelton Group, an island-arc complex that extends from the Yukon to Washington State.”

In 2018, Teuton commissioned an airborne ZTEM survey undertaken by Geotech over the neighbouring Pearson-Mach properties which was extended to include the Eskay Rift and Big Gold properties. Three Priority 1 target zones were identified on the Eskay Rift claims, the third of which called “Z-3” extends for over 3km and consists of a conductive mag high which “could represent massive sulphide or BIF [banded iron formation] mineralization”.

Subsequent to the survey a drone video reconnaissance identified a series of pyritic beds, only recently emerged from ice cover, lying along a minimum 500m length in the northern portion of the Z3 target area. The beds appear to be stratigraphically controlled and are from 1-5m thick. Teuton plans to intensively sample the structures in 2021 and also to carry out some ground-based geophysical surveys.

One of the prospective targets for drilling is the “Z-1”, which Geotech has described as follows: “This target ∼ is stretching roughly in the NE direction over a distance of 1.5 km and has an estimated resistivity of < 20 ohm-m at depth of 500m. It occurs within a zone of complex structural pattern and represents probably a link to intense alteration zone that may host Cu-Au mineralization.” This target is scheduled for drilling in 2022 – this property is at a higher elevation so the window in which work can proceed is narrow.

A video of the area overlying the target zone can be found here: https://vimeo.com/594412278 .

Orion Property

The Orion Property is situated south of the Sulphurets District and northwest of the Company’s 4J-s and Tennyson properties. The local setting has some affinities with the geological setting at the rich Eskay Creek gold mine and also is similar to the Treaty Creek property (two large Magneotelluric anomalies exist on the property, neither of which has been drill tested).

Previous prospecting and trench sampling has disclosed several areas of brecciated rhyolites hosting gold-bearing arsenopyrite mineralization. One of these occurrences was tested by drilling in 2007. Results are presented in the news release on file with SEDAR dated February 28, 2008. Minor regional geochemical sampling was carried out in 2009. No work was carried out on the property in 2010-12. In 2015, a drone aerial reconnaissance was flown over a gossanous area in the northeastern section of the property.

In 2013, the BC Geological Survey carried out investigations in the region of the Orion and High properties (as well as the KSM, Brucejack and Treaty Creek properties), culminating in Paper 2014-1, pp 111140, by J. Nelson and J. Kyba, entitled “ Structural and stratigraphic control of porphyry and related mineralization in the Treaty Glacier - KSM - Brucejack - Stewart trend of western Stikinia ”. This work focused on the McTagg anticlinorium and its relation to the many deposits which are presently being developed in the area. All five of the deposits on Seabridge Gold’s KSM property—the Iron Cap, Mitchell, Sulphurets, Kerr and Deep Kerr—are thought to be related to the Sulphurets thrust fault, a major structural feature traversing the KSM property. Notably, the BC Geological Survey has now extended this fault southward about 8 km into Teuton ground, a large portion of which passes along the Orion property. In June 2016 the Orion property was optioned to Tudor Gold in a five-year deal requiring total payments of $700,000 and 700,000 shares of Tudor Gold for a 100% interest, subject to a 2.5% NSR payable to Teuton (there is no buyback on the royalty).

Tennyson Property

This property was first staked in 1985 and is centered on a large gossan situated at the upper end of the North Berendon Glacier, near the formerly producing Scottie Gold Mines. It has been under option five times in the past years, including the most recent option to Brigade Resources which was relinquished in 2014. Plans are to re-option it once metal prices, particularly copper, improve. Geochemical sampling conducted over the gossan in past years has defined highly anomalous gold and copper anomalies. Airborne geophysics has outlined several magnetic highs on the property. Teuton carried out a major drilling program on the property in 2011, completing 3,123 metres over 16 holes. Results for all holes are found in the table, below:

Drill	Interval	Width	Gold	Copper	Copper Equiv. *

Hole	(metres)	(metres)	(g/t)	(%)	(%)

TN11-01	2.1 to 15.2	13.1	0.32	0.44	0.66
TN11-02	1.5 to 71.6	70.1	0.17	0.31	0.43
TN11-03	0 to 81.7	81.7	0.32	0.33	0.55
TN11-04	0 to 229.5	229.5	0.25	0.32	0.50
TN11-05	0.9 to 95.7	94.8	0.17	0.30	0.42
	130.5 to 157.9	35.2	0.27	0.34	0.53
TN11-06	0.6 to 99.1	98.5	0.22	0.43	0.58

TN11-07	0.6 to 126.5	125.9	0.27	0.40	0.59
TN11-08	3.1 to 106.7	103.6	0.31	0.42	0.64
TN11-09	0.5 to 101.5	101.0	0.26	0.32	0.50
*TN11-10*	0.3 to 192.3	*192.0*	0.20	0.32	*0.46*
TN11-11	0 to 119.8	119.8	0.19	0.30	0.43
TN11-12	1.2 to 68.9	67.7	0.21	0.30	0.45
TN11-13	98.1 to 158.11	60.0	0.14	0.22	0.32
TN11-14	54.6 to 161.22	106.6	0.24	0.42	0.59
*TN11-15*	51.2 to 262.73	*211.5*	0.15	0.22	*0.33*
*TN11-16*	32.0 to 152.14	*120.1*	0.12	0.21	*0.29*

* Based on $1615 oz/ton gold and $3.35 lb copper, metallurgical recoveries assumed to be 100%.
All widths drill indicated only.

1Ice from 0 to 35.4m2 Ice from 0 to 54.6m3 Ice from 0 to 51.2m4 Ice from 0 to 32.0m

In 2012, Teuton optioned the property to Brigade Resources Ltd., a private company that was part of the well-known Hunter Dickinson Group (“HDI”), one of the leading miners in British Columbia and an expert in porphyry copper-gold deposits.

In 2013, Brigade’s seasonal budget for Tennyson drilling and other work was set at up to $4,000,000. The 2013 field season was completed with approximately 6,700 metres drilled in 16 holes across three potentially related targets. Highlights of drilling include: 205.54m of 0.227 g/t Au and 0.300% Cu (0.465% Cu Equivalent) in TN13-09 (main zone), and:103.62m of 0.129 g/t Au and 0.246 Cu (0.335% Cu Equivalent) in TN13-12 (skarn zone)

Hole TN13-09 was a vertical hole collared on the ice about 200m southwest of the northwest-trending axis of drilling in 2011. Holes TN13-02, 03A, 04A, 05, 06, and 07 probed the potential of the main porphyry copper-gold zone in the area south and southwest of the 2011 drilling. A tabulation of significant results from the 2013 drilling is presented below:

						Copper Equiv.
Drill	Interval	Length	Silver	Gold	Copper
						*
Hole	(metres)	(metres)	(g/t)	(g/t)	(%)
						(%)


TN13-02	1.76 to 18.90	17.14	1.1	0.157	0.295	0.407
	61.61 to 134.36	72.75	5.5	0.170	0.249	0.420

incl.	110.06 to 118.46	8.40	1.6	0.250	0.496	0.674
	143.90 to 171.34	27.44	1.1	0.091	0.175	0.245

	183.54 to 311.59	128.05	1.3	0.256	0.388	0.565


incl.	247.56 to 280.11	32.55	2.3	0.537	0.686	1.054

	323.78 to 332.93	9.15	0.6	0.556	0.023	0.384


TN13-03A	64.01 to 97.56	33.55	8.0	0.417	0.157	0.513

	112.80 to 128.05	15.25	1.8	0.227	0.241	0.406

	164.63 to 246.95	82.32	1.0	0.217	0.216	0.365


Incl.	164.63 to 207.32	42.69	1.1	0.292	0.254	0.452

TN13-04A	90.24 to 96.34	6.10	10.8	2.21	0.021	1.550

	154.27 to 190.58	36.31	1.4	0.401	0.035	0.306


TN13-05	114.30 to 245.543	131.13	2.6	0.192	0.173	0.325

Incl.	126.49 to 163.07	36.58	6.8	0.251	0.196	0.433

TN13-06	312.50 to 330.79	18.29	0.7	1.367	0.026	0.903

TN13-07	325.91 to 414.33	88.42	1.9	0.199	0.188	0.336

Incl.	344.21 to 380.79	36.58	2.7	0.208	0.287	0.450

	447.87 to 478.35	30.48	0.8	0.201	0.167	0.304


	493.60 to 524.09	30.49	0.4	0.102	0.185	0.253


	533.23 to 547.68	14.45	0.3	0.095	0.215	0.279


TN13-09	46.90 to 252.44	205.54	1.8	0.227	0.300	0.465

Incl.	69.51 to 81.71	12.20	4.5	0.334	0.783	1.046

Incl.	148.78 to 191.46	42.68	2.1	0.361	0.473	0.727

	261.15 to 273.78	12.63	0.7	0.071	0.262	0.315


TN13-12	36.58 to 140.20	103.62	0.6	0.129	0.246	0.335

Incl.	95.19 to 115.82	20.63	1.1	0.198	0.538	0.677

*Metal Prices: Cu=$US 2.75/lb, Au= $US 1,200/oz, Ag=$US 21.35/oz. Copper Equivalent = Cu % + (Au g/t x 38.58/60.63) + (Ag g/t x 0.686/60.63)

*Metal Prices: Cu=$US 2.75/lb, Au= $US 1,200/oz, Ag=$US 21.35/oz. Copper Equivalent = Cu % + (Au g/t x 38.58/60.63) + (Ag g/t x 0.686/60.63)

Subsequent to the end of the 2013 work program Brigade dropped the option so Teuton again owns a 100% interest. A drone aerial reconnaissance was carried out over the property in 2015 and 2018.

Within the last six months copper prices have moved up from the $2.50/lb level to over $4.50/lb. This large percentage gain has revived interest in the Tennyson copper-gold property. A new five year permit for exploration including drilling is presently under review by the Ministry of Mines in Smithers.

Del Norte-Midas Property

The Del Norte property is located 25km east of Stewart, British Columbia and is 100% owned by the Company. The central claims of the Del Norte property were originally acquired by staking in 1985. Exploration previous to 2002 outlined several gold-silver bearing zones, including the Humdinger, Crackle and O zones. In 2002, a new zone was discovered in an area of ablation (meltback of glacial ice/snow fields) from which a surface chip sample returned a true width of 10 metres grading 0.179 oz/ton gold and 18.4 oz/ton silver, for a gold equivalent value of 0.442 oz/ton (using a gold/silver ratio of 70). Three diamond drill holes from a set-up approximately 15 metres south (along strike) intersected the new zone and returned values with true widths ranging from approximately 8 to 10 metres, and with gold equivalent grades ranging from 0.185 to 0.339 oz/ton.

On August 29, 2005, the Company announced that a drilling program was set to begin on the Del Norte. Shortly thereafter, the Del Norte property was optioned to Sabina Silver Corp. Under the terms of the agreement, Sabina Silver was granted the right to earn a 50% interest in the property by expending $2,500,000 in work commitments and paying $240,000 in option payments over the four year term of the option. The Company also received an additional $90,000 upon signing of the agreement. The claims

adjoining to the south of the Del Norte property, the “Midas” claims, were also included in the Sabina agreement option, so that the combined property became known as the Del Norte-Midas claims. However, the Midas claims at the time were jointly owned by the Company and Silver Grail Resources Ltd. (“Silver Grail”). At that time, Silver Grail retained participatory rights equal to the Company’s in the Midas claims portion of the combined Del Norte-Midas property.

Prospecting in the 3 ounce area near the border of the Del Norte/Midas claims resulted in the 2003 discovery of quartz float boulders grading up to 3 oz/ton gold, near the same volcanic-sediment contact which hosts the LG mineralization some 6 miles to the north. One day of trenching in 2004 partially exposed a quartz vein mineralized with tetrahedrite. In 2006, Sabina Silver drilled three holes into the 3 Oz showing on the Midas property, encountering promising intercepts of bulk tonnage-type gold mineralization spatially related to a gold-rich vein. The best result was in Hole SDN-06-02 which returned a wide interval of gold mineralization grading 2.52 g/t gold (0.07 oz/ton) over 32.4 meters. True width is estimated at 29.2 meters or 96 feet. Within this intersection, a sub-interval ran 26.77 g/t gold (0.78 oz per ton) over 0.7 meters. In 2007, Sabina Silver drilled an additional 9 holes into the 3 Oz showing (results are detailed in the news release on file with SEDAR dated December 3, 2007). By doing this work, Sabina earned a 50% interest in the Del Norte-Midas property.

In July 2014, Teuton purchased Sabina’s 50% interest in the Del Norte-Midas property. It now owns 100% of the Del Norte and 75% of the Midas (Silver Grail owns the remaining 25% of the Midas). Teuton has issued 100,000 of its shares to Sabina and has agreed to grant Sabina a 1% NSR in the property, one- half of which can be repurchased for $1 million. The buy-back on the NSR is limited to any time prior to completion of a feasibility study. The TSX-V accepted for expedited filing documentation of the purchase and sale agreement between Teuton and Sabina on July 15, 2014.

The Company carried out prospecting on the Del Norte in 2014 resulting in the definition of a number of likely areas for drilling. One target area was subsequently drilled south of the Bullion zone and north of the “O” zone. Results from five holes drilled into the area showed results which are consistent with porphyry copper-gold mineralization (see news release on Sedar dated November 26, 2014 for full details). No work was carried out in 2015.

Teuton returned to the property in 2016 drilling 8 additional holes in Del Norte Creek valley in a search for porphyry copper type mineralization. Three holes drilled west from the second pad in this program all encountered pyrite and chalcopyrite mineralization, the deepest of which went to over 1,300 feet (the limit of the drill). The bottoms of these three holes were marked by increasing K-feldspar alteration. Assays from all three holes have now been received with the best hole, the deepest, returning a 74.2m intersection from 264.6 to 338.8m averaging 0.15% copper and 0.27 g/t gold. This hole had double the copper content of the 2014 holes. A 10.7m interval included in this intersection, from 284.9 to 296.6m, ran 0.31% copper and 0.37 g/t gold. The remaining holes did not contain economic mineralization. A magnetotelluric survey was run over the area surrounding the 2016 drilling in an attempt to determine depth extensions of porphyry mineralization.

In 2018, a ZTEM airborne geophysical survey was run over the length of the Del Norte property. A 3D Inversion of the geophysical responses detected 7 target zones for gold and 2 for porphyry type mineralization on the Del Norte-Midas claims.

In 2019, Teuton drilled two holes into the 2005 Aerotem EM anomaly just north of the LG vein, using a slice created by the 2018 ZTEM program to estimate depth to source. Neither of the holes encountered economic gold values, however results were considered encouraging in that a VMS environment was indicated by the hole geology. Mudstones were encountered near surface that were anomalous in zinc and silver and which were overlain by dacite with 10-15m sections containing up to 30% anhydrite. Proximity to a volcanogenic vent is suggested. Further ground geophysical surveys are recommended to attempt to vector towards the volcanic center. Two additional targets were drilled to the west aimed at testing depth extensions of copper and tetrahedrite bearing mineralization found within a zone of fresh ablation. Neither hole encountered economic mineralization.

In January of 2020, Teuton optioned the Del Norte property to Decade Resources Ltd. under terms allowing Decade to earn a 55% interest by spending $4 million over 5 years; Decade has an additional option to earn an extra 20% by carrying the property to a production decision. Teuton also earns various cash and share payments over the term of the option. Later in the year, Decade also optioned Teuton’s Lord Nelson

property which adjoins to the north of the Del Norte. Altogether in 2020 Decade drilled 5975 m of NQ core in 31 drill holes on the Del Norte and Lord Nelson properties. The best results came from the Argo zone two holes from which ran as follows:

1049.64 g/t Ag eq over 6.03 m in DDH DN20-18, included within an interval grading 119.95 g/t Ag Eq over 58.37m
2128.48 g/t Ag eq over 2.46m in DDH DN20-20, included within an interval grading 221.03 g/t Ag eq over 34.09m

Decade recently published two favourable reports on visual indications from 2021 drilling, full details of which can be accessed on sedar.com under Teuton’s profile. Teuton also has completed a purchase of units of Decade Resources in a private placement: 10,000,000 units were purchased at $0.05/unit, funds to be used to conduct further work at Del Norte and for general corporate purposes.

[Note that the Midas portion of the former Del Norte-Midas property was not optioned to Decade. Drilling was carried out on the southern portion of the A6 ZTEM anomaly in 2021 funded by Teuton as to 75% and Silver Grail as to 25%. Assay results from the Midas have been received but did not show economic mineralization.]

Clone Property

The Clone property was originally owned 50-50 with Silver Grail and is located about 16km southeast of Stewart, British Columbia. High-grade gold and gold-cobalt containing shear structures were identified on the Clone property in 1995 and subsequently drilled in 1996-7. On November 30, 2005, the Company and Silver Grail granted Canasia Industries Corporation (“Canasia”) (“CAJ”, TSX-V) an option to acquire a 50% interest in the Clone gold property. That option has now been exercised, with the result that the current interests in the property are: Teuton—25%, Silver Grail –25%, Makena Resources – 50% (Canasia changed its name to Makena Resource in 2013). A 3,000 ft. drill program was awarded to Elite Diamond Drilling of Revelstoke, BC, for the 2008 program. Ten holes were drilled and results were reported on SEDAR on October 19, 2008. A two-phase drilling program was carried out in 2009, funded by Canasia. In the first phase 20 holes were drilled with fair to excellent results as detailed in the News Release dated October 5, 2009 on file with Sedar. In the second phase a further 15 holes were drilled with generally excellent results. Results for this second phase are outlined below:

Drill Hole #	From (m)	From (ft.)	To (m)	To (ft.)	Interval (m)	Interval (ft.)	True Width Coeff.	Gold (g/t)	Gold (oz/t)
21 incl.	11.89 11.89	39 39	19.81 13.72	65 45	7.92 1.83	26 6	0.94 0.94	30.37 115.80	0.886 3.377
22	15.85	52	19.81	65	3.96	13	0.87	26.23	0.765
24	20.42	67	23.47	77	3.05	10	0.77	4.04	0.118
25	12.50	41	16.15	53	3.65	12	0.85	3.68	0.107
26	12.19 21.03	40 69	16.46 26.21	54 86	4.27 5.18	14 17	0.78 0.78	26.39 15.83	0.770 0.462
27	15.85	52	17.98	59	2.13	7	0.85	10.81	0.315
28 incl.	10.67 10.67	35 35	23.47 15.54	77 51	12.80 4.87	42 16	0.92 0.92	44.75 76.80	1.305 2.240
29	20.12	66	26.21	86	6.09	20	0.69	4.81	0.140
30	13.41	44	23.77	78	10.36	34	0.92	6.40	0.187
31	18.29	60	20.12	66	1.83	6	0.85	42.07	1.227
32	19.51	64	24.08	79	4.57	15	0.75	3.96	0.115
33	18.29	60	24.99	82	6.70	22	0.85	11.04	0.322
34	25.30	83	27.43	90	2.13	7	0.78	60.31	1.759
35	24.99	82	29.88	98	4.87	16	0.69	3.81	0.111

The holes were drilled between Trenches 4, 14 and 15 on the H-1 structure and were designed to guide the bulk sampling program. Dip angles for the holes were either minus 20, 30 or 40 degrees. For the purposes of calculating the true width coefficient, the zone is estimated to be vertically dipping.

Mineralization is localized within highly silicified semi-massive to massive hematite-specularite and gold occurs as fine disseminations and is associated with the oxide mineralization. The major lithology is observed to be light grey to green andesitic pyroclastics intercalated with fine grained to aphanitic andesite. Clasts are subangular to angular, matrix supported, and range in size from 1-3cm. Quartz- calcite stockwork pervades the unit in moderate abundance.

The 2011 bulk sampling program consisted of 102 tons with an average grade of 4.0 oz/ton gold which was removed from the site and shipped to Stewart by helicopter. Metallurgical studies have been completed which show that up to 76% of the gold can be liberated by a fine grind followed by gravity separation. An abbreviated continuation of the ongoing bulk sampling program was carried out on the Clone property in 2012. The Company has sent some of the bulk sample for processing and payment was received during the quarter ended September 30, 2014. A small drilling program was completed in 2016 of 7 holes on two different targets. Results are available on Sedar on January 6 and February 20, 2017. In September of 2017, Teuton’s and Silver Grail’s interest in the Clone property were optioned out to Sunvest Ventures. Terms of the option call for 5,000,000 shares of Sunvest to be issued to Teuton/Silver Grail and $200,000 cash paid to Teuton/Silver Grail, collectively, over a two year period. Work commitments totaling $1.95 million are also to be carried out over three years. Teuton/Silver Grail, collectively, will share a 2% NSR, one-half of which can be repurchased for $1.5 million.

In November 2019, Sky Gold Corp. (name change from Sunvest Ventures) informed Teuton that it would be dropping its option on the Clone property. Teuton also completed an agreement to purchase from a third party assignee of Makena Resources’ 50% interest in the property for $200,000. Teuton is at arms-length to this assignee. Teuton now owns a 75% interest in the Clone and Silver Grail Resources owns the remaining 25% interest. No work was carried out on the Clone in 2020 or 2021.

Four J’s Property

This property is located east of the Tennyson property and lying north of Brigade Resources’ Tide property and west of American Creek’s Electrum claims. Past exploration has exposed several zones, including the Main zone which hosts stratiform lead-zinc-antimony-silver mineralization. In 2010, the Company optioned out the Four J’s property to Rotation Minerals. Rotation Minerals can earn a 50% interest in the property by paying $180,000 and incurring exploration expenditures of $1,800,000 over the four year term of the option. The first year commitment calls for a $20,000 down payment and $250,000 worth of work. Rotation Minerals has another option to earn another 20% interest by carrying the property to feasibility. Rotation has completed a road into the Four J’s property from the end of the Granduc road system and has drilled over 30 close-spaced holes. Results from these holes have now been received and show good values in lead, zinc, antimony, silver and to a lesser extent, gold. Close spaced drilling was conducted in order to obtain geological information for future drill programs.

The drilling tested the east end of a NW trending zone of stratiform antimony-lead-zinc-silver-gold mineralization associated with strong graphite and quartz infusion. Where exposed, trenching in the past has shown massive mineralization consisting of bournonite (copper-lead-antimony sulphide), tetrahedrite (copper-antimony-sulphide), sphalerite (zinc sulphide) and galena (lead sulphide) over 6m of width and 30m of length that is poorly exposed in glacial till. This mineralization is underlain by a strong coincident NW trending EM anomaly at least 700m long indicated by several airborne EM surveys completed by previous operators on the property.

Float boulders carrying bournonite, sphalerite and galena associated with late stage, east-trending shears have been located along trend of the above EM anomaly for a distance of 300m before being covered by glacial ice. This would indicate the potential for extension of this type of mineralization for at least 300m to the west of the 2012 drilling. West of this mineralization and area of drilling, work by Noranda Exploration located argillite boulders containing native antimony assaying up to 2.84 % Sb.

Results from the last 17 holes follow:

DDH No.	From (m)	To (m)	Width (m)	Au g/t	Ag g/t	Cu %	Sb %	Pb %	Zn %
4J-13	8.54	11.59	3.05	0.17	16.0	0.004	0.015	0.403	3.77
4J-14	13.41	26.83	13.41	0.19	32.5	0.085	0.103	1.14	6.16
including	13.41	20.73	7.32	0.23	43.0	0.11	0.014	1.67	8.38
4J-15	26.83	29.88	3.05	0.18	38.0	0.09	0.105	1.03	1.77
4J-16	63.41	72.56	9.15	0.06	8.5	0.014	0.02	1.15	1.491
4J-18	1.52	5.49	3.96	0.336	29.0	0.055	0.099	0.799	2.563
and	8.54	17.68	9.15	0.316	38.83	0.125	0.099	1.08	7.353
including	14.63	17.68	3.05	0.305	53.5	0.276	0.001	1.569	16.18
4J-19	2.38	5.18	2.80	0.169	16.0	0.058	0.115	0.431	2.345
and	8.54	17.68	9.15	0.325	23.5	0.106	0.274	0.84	3.91
and	23.78	26.83	3.05	0.150	24.0	0.066	0.075	0.60	1.64
4J-20	17.68	28.83	9.15	0.34	111.83	0.088	0.281	1.04	3.98
including	20.73	23.78	3.05	0.399	295.0	0.092	0.41	1.407	5.415
4J-23	0.91	5.49	4.57	0.255	37.17	0.078	0.21	1.23	2.34
and	14.83	28.73	6.10	0.42	56.5	0.18	0.64	2.73	8.33
4J-24	1.52	26.83	25.30	0.38	27.53	0.081	0.027	1.31	3.34
including	8.54	11.59	3.05	0.65	52.5	0.084	0.63	3.93	10.89

Rotation indicated in its audited financial statements for 2018 that it has dropped the option on the property. No work was carried out on the Four J’s in 2021.

Konkin Silver Property

This property is located 29km east of Stewart, British Columbia. Present access is by helicopter. Silver Grail and the Company acquired the Konkin Silver property by staking in 1993-94, as part of a joint acquisition and exploration effort in the region surrounding the Red Mountain gold prospect. Prospecting in 1994 uncovered the central showing, a bow-shaped structure carrying high silver values. Other similar, but smaller zones were found nearby. The Konkin Silver showing was drill-tested by Silver Standard under option the following year, but several short holes failed to encounter high-grade silver mineralization conformable with surface results. The following year the property was returned to the Company and Silver Grail. In 2002 a small program of rock sampling uncovered a new zone of low-grade, but extensive, silver mineralization.

Two silver-bearing structures located during 1994 are mineralized with significant amounts of galena, sphalerite and barite. The largest of these, the "Konkin Silver" zone, consists of carbonate, quartz, barite, galena, sphalerite and rare ruby silver and native silver in a bow-shaped structure spanning 35 metres. High silver values are most closely associated with galena which occurs as fine coatings on fractures, as coarse crystalline blebs and as disseminated grains. Maximum thickness of the feature appears to be in excess of 10 metres. Trenching of the Konkin Silver showing returned values up to 9.0m grading 34.94 oz/ton silver, 2.30% lead and 2.02% zinc.

After a brief property visit in 1998, Ross Sherlock, Ph.D., confirmed that the Konkin Silver prospect was located within a VMS environment. The Company and Silver Grail acquired by purchase two additional claims within the boundaries of the Konkin Silver property. These claims cover two silver-bearing showings similar to those on the original ground. An airborne survey conducted in 2005 indicated a number of strong conductors in the vicinity of known silver-bearing showings. In August of 2006, field crews visited the Konkin Silver property to ground truth the airborne anomalies and to prospect zones of ablation in preparation for the selection of targets for a proposed September drill program. A drill program started in late 2006 had to be stopped because of freezing conditions.

During the 2007 field season, the Company and Silver Grail resumed drilling on the Konkin Silver property, targeting the King Konk and Konkin Silver structures. The program was completed and results are presented in the news release on file with SEDAR dated March 5, 2008. In 2008, minor surface sampling was carried

out on the property with mixed results. One day was spent on the property by a prospecting crew in 2017, but they were not able to reach the target area due to steepness of the ground.

The Konkin Silver was covered by a ZTEM survey run by Geotech Ltd. In 2018, part of a larger survey encompassing the Del Norte property to the north. A 3D Inversion of the geophysical responses detected three target areas for gold mineralization and one for porphyry-related targets. One of the ZTEM targets (which also overlies an earlier VTEM target) was drill tested in the 2021 season. Although 3 of the 4 holes intersected long intervals of sulphides, chiefly pyrite, assays did not report any precious metal values. Funding for this program was by joint owners Teuton Resources and Silver Grail Resources.

Harry Property

The Harry property is located along a 50km long, north-northwest trending axis featuring several high-grade gold occurrences (East Gold, Gold Wedge, Marmot Gold), a producing mine--the Valley of the Kings--and a famous former gold mine, the (Silbak) Premier. It covers numerous, red-weathering zones of alteration lying east of the Salmon Glacier. In 2020, prospecting on one of these gossanous areas, recently exposed by glacial retreat, uncovered a high-grade showing, the “Milestone”, which ran 7.6 oz/ton gold over 2.0m.

The Harry property was optioned to Optimum Ventures in September 2021. Terms allow Optimum to earn up to an 80% interest by carrying out $9 million of work over five years. Optimum must also pay Teuton $1.5 million in cash and issue 4,000,000 shares to Teuton over the option period. Teuton retains a 2% Net Smelter Royalty and a 20% interest after the option is exercised. Down payment is $50,000 and 200,000 shares.

Alozy Walus, M. Sc., P. Geo., has written a 43-101 report on the Harry property which has been filed on Sedar.com under Optimum Ventures. He identifies a 15 km long prospective corridor (a sub-area within the Marmot Gold to Premier mine axis mentioned above) which “ hosts a number of gold-silver deposits ”. Mr. Walus concludes : The Harry property has excellent potential for the discovery of high-grade gold-silver mineralization as well as large-scale low-grade gold-silver zones similar to those located within the mineralized corridor described above.”

Further mineralized zones have been discovered, one of which, the “S-1”, “r epresents a 10 metres wide vein swarm comprised of numerous parallel quartz veins which contain up to 10% of combined pyrite, galena and sphalerite.” Mr. Walus also said: “ During the 2020 exploration program the author identified a large intrusive body of Premier Porphyry in the area of Milestone and S-1 showings which is in contact with a large prominent quartz-sericite- pyrite alteration zone at least 400 metres in size. The presence of Premier Porphyry is very encouraging since this rock was the source of mineralization in the historic Premier Mine.”

Catspaw Property

The Catspaw property is 100% owned by the Company and is situated 40km northwest of Stewart, BC.

On November 28, 2004, Serengeti and Rimfire announced assays from two samples of a 0.50 metre wide vein found within the limits of a 600 x 450 metre greater than 90 ppb gold-in-soil anomaly on their Tide property adjoining due south of the Catspaw property. The two samples, located 2 metres apart, assayed 593 g/t (17 oz/ton) gold and 14,708 g/t (429 oz/ton) silver and 360 g/t (10 oz/ton) gold and 7,920 g/t (231 oz/ton) silver. As described by Serengeti and Rimfire, the zone strikes northwest and lies within 500m of the southern boundary of the Catspaw claim.

Similar quartz-pyrite-arsenopyrite vein-hosted mineralization has been located along trend within the boundaries of the Catspaw claim. In 1990, while the Catspaw was under option to Big. I Developments Ltd., a 2.0 metre sample across a north-west trending vein near the southern boundary assayed 0.223 oz/ton gold and 132.46 oz/ton silver. The Company currently owns a 100% interest in the property.

During the first quarter of 2006, the Company completed a geophysical airborne survey over the Catspaw property which disclosed some anomalous zones worthy of follow-up exploration. Due to time constraints, these areas were not investigated in 2006 or 2007.

Delta Property

The Delta property is the third of a group of Teuton properties lying along the southerly trend of Jurassic age rocks that host the various gold deposits of Pretium’s Brucejack property. On March 1, 2016, the property was optioned to a private company for $1 million in cash payable over four years. Teuton retains NSRs in the claims varying from 1.5 to 2.5% with no buyback. On May 26, 2016, the option agreement was assigned from the private company to Tudor Gold Corp.

Work done intermittently from 1985 to the present has disclosed several gold-bearing or gold-anomalous zones within the claims area. In 1985, limited prospecting defined an area marked by a number of streams containing highly anomalous heavy metal sediments, ranging from 1,255 to 6,500 pbb gold and from 20.0 to 141 ppm silver. Rock sampling undertaken during this year led to the discovery of an isolated occurrence containing visible gold. Larger programs conducted in succeeding years disclosed an area of extensive soil geochemical multi- element anomalies (gold, silver, lead, zinc). The only source found to date to explain the geochemical anomalies is a number of narrow, high-grade vein structures. A small drilling program conducted in 1986 near the visible gold occurrence was not successful in locating economic mineralization.

In the aftermath of the Eskay Creek discovery the Delta property was optioned by Canarc Resources. Extensive prospecting, geological mapping, geochemical sampling and limited surface geophysical surveying were carried out in 1990. This work expanded the known geochemical soil anomalies (+400 ppb gold contour) but did not determine a definitive source. McCrossan, et al stated: “Geophysical IP anomalies in the vicinity of the J Zone indicate the possible presence of metal sulfides near a rhyolite-argillite contact. Some potential exists for Eskay Creek-type gold rich massive sulfide deposits on the Delta Property”.

The only other drilling done on the claims has been near the Feld gossan, located west of the geochemically anomalous area. A prospecting traverse undertaken in 2011 defined two areas containing appreciable surface gold values. Later that year, two holes were drilled west from a pad into an area from which surface samples returned values ranging from 0.74 to 47.8 g/t gold. Neither of the holes reached the downward expression of the surface mineralization. It appears that the pad was emplaced too far east, but because of a spalling glacier located immediately above the mineralized zone, this was the closest it could be put in without endangering the drill crew.

Another three holes were directed at various azimuths from a pad constructed below a second mineralized gold zone discovered by prospecting (the Feld showing). This pad was also not ideally located, as severe weather prevented location of a pad to a preferred site immediately above the zone. One of the holes is thought to have intersected the downward projection of the zone, returning a 5.8m interval grading 3.0 g/t from 210.9 to 216.7m. The other holes were drilled at steeper angles and did not reach the projected goldbearing area.

In 2012, two holes were drilled from a pad set up much higher than this surface gold-bearing exposure, in order to test an area of prospective geology. One of the holes contained two narrow sections of extremely fine-grained, massive sulfide mineralization containing significant lead, zinc, silver and gold values.

The lead-zinc mineralization appears to have been remobilized, and is hosted within a volcaniclastic-flow sequence with associated discordant stockwork stringers. Preliminary assessment suggests the mineralization could be VMS (Volcanogenic Massive Sulfide) in nature, similar to that at Eskay Creek. Unfortunately, shortly after intersecting the mineralized zone, drill hole HS12-02 had to be terminated at 850 feet due to high avalanche risk in the area supplying water to the drill.

High North Property

The High North property is located immediately south of Seabridge Gold’s KSM property. On March 1, 2016, the property was optioned to a private company for $1 million in cash payable over four years. Teuton retains a 2.5% NSR in the claims with no buyback. On May 26, 2016 the option agreement was assigned from the private company to Tudor Gold Corp.

Leduc Silver--Pearson Properties

This large property, acquired by staking in 2003, surrounds the formerly producing Granduc copper property 40km northwest of Stewart, British Columbia (originally owned by Bell Resources).

In 2005, after completing airborne geophysical surveys over its core Granduc property as well as large portions of the Company’s surrounding Leduc Silver claims, Bell approached the Company with an offer to option the Leduc Silver. A binding letter of intent was entered into which grants Bell an option to acquire a 60% interest in the Leduc Silver claims for total exploration expenditures of $1,500,000, total cash payments of $85,000, and total share payments of 100,000 shares, over the five year term of the option.

Analysis of work to date by Bell and historical records of previous exploration at Granduc strongly suggest that the Granduc copper deposits are “Besshi” type. Such deposits feature concordant massive sulphide sheets a few metres thick (often stacked like pancakes) which can extend for kilometres both along strike and down dip. If this analysis is correct, it has significant implications for the discovery of Granduc-type copper mineralization along strike of the known bodies, both within Bell’s core claims and also on ground now controlled by the Company’s surrounding Leduc Silver property.

In early August 2006, Bell reported discovery by prospectors of Granduc-type copper mineralization on the Company’s Leduc Silver property, north of the historical mine workings. Dubbed the JK zone, this area was sampled and subsequently drilled late in the field season by Bell Resources. Results from this drilling program are detailed in a news release on file with SEDAR dated February 12, 2007.

In late December 2009, the Company revamped its agreement with Bell Copper in regard to the property. Bell was granted a 100% interest in the property in return for making annual payments of $50,000, being $25,000 in cash and $25,000 in shares, payable December 31 of the year. Also, the Company received a 1.5% NSR with no buy-back provisions both in the property and in certain claims that were 100% owned by Bell lying to the north of the Leduc Silver property. During 2010 Bell Copper sold its interest in the core Granduc claims and surrounding Leduc Silver property to Castle Resources. Castle assumed the underlying agreements between Bell and the Company.

Castle eventually returned the complete claim package to Teuton including the original Leduc Silver claims as well as the Pearson 1-4 claims located to the northeast. In August 2016 Castle turned over data to Teuton regarding a 2km long geophysical anomaly located on the Pearson claims. This data was assessed by Teuton’s geophysicist, Kevin Killin, who delivered a report outlining potential drill targets.

In 2017, Company personnel prospected the Pearson claims and also the Mach 3 claim adjoining to the north. This work concentrated on two areas. The first was an area where extensive green copper stains were apparent in cliff faces, close to a large geophysical anomaly discovered in 2010 during an airborne survey. Malachite and magnetite bearing samples taken from float found directly below the cliff faces averaged 1.63% copper and >15% iron. The character of the rock and the grades suggest that Granduc- type Besshi mineralization occurs in the cliff faces. Various grab samples taken from other structures identified on the Pearson claims, mostly either quartz veins or diorite, ranged from trace to 8.57% copper, trace to 0.07% cobalt, trace to 16.7% zinc, trace to 29.2% lead, trace to 451 g/t silver, and trace to 12.7 g/t gold.

A diamond drilling program on the Pearson and adjoining Mach claims was carried out by the Company in 2018: the holes on the Pearson did not penetrate deeply enough to hit target areas, the holes on the Mach did not intersect economic mineralization. A ZTEM Geotech survey was also flown in 2018 and a 3D inversion was performed on the geophysical data. This disclosed a number of target areas for gold mineralization as well as one area for porphyry-type mineralization.

The recent rise in copper prices to the $4.50+/lb. level has revived interest in the Leduc Silver and Pearson properties.

Bonsai Property

The Bonsai property adjoins directly to the west of the Eskay Creek mine property of Barrick Gold and is 100% owned by the Company. In 2002, the property was optioned to Glenfred Holdings, a private company later totally acquired by Heritage Explorations Ltd., a TSX-Venture Exchange listed company. Under the

terms of the option agreement, Heritage can earn a 50% interest in the property by carrying out an aggregate of $750,000 exploration and paying an aggregate of $75,000 in option payments over a four year term. During the period the agreement was amended so that Heritage would be require to spend $1,250,000 rather than $750,000 to earn its interest.

A geological report by Heritage’s qualified person, G.E. Bidwell, and A.W. Worth, detailing results of work completed by Heritage in 2003, has been received by the Company. The report states: “Drilling at Bonsai in 2003 has intersected significant low grade gold/silver mineralization in pyritic rhyolite breccia, beneath the main gossan outcrop. The mineralized zone is open at depth and to the south and represents an excellent target for future exploration”. This hole returned a 64 metre intersection of brecciated rhyolite containing 0.38 g/t gold and 27.08 g/t silver.

The following year Heritage informed the Company that it had drilled an additional hole to test the strike extension of this zone. On November 5, 2004 Heritage reported results from this hole: a 10m interval from 92 to 102m returned 0.24 g/t gold and 14.24 g/t silver; a further 18.0 interval from 122 to 140 m returned 0.17 g/t gold and 15.31 g/t silver.

Heritage did not make a $25,000 option payment due in March, 2005, and a director of Heritage verbally informed the President of the Company that Heritage did not intend to continue with the Bonsai option. Thereafter Heritage received airborne geophysical results showing a strong anomaly in the western portion of the Bonsai property. The anomaly was interpreted to have a strike extent of at least 600 metres, a down dip extent of at least 100 metres, and to be approximately 50 metres thick. Negotiations to reinstate the option agreement with Heritage were initiated and led to a new option agreement (see news release dated September 2, 2005 for full details). Under the terms of the new agreement, Heritage had the right to earn a 50% interest in the Bonsai by spending $2,400,000 on the property prior to 2009 (with credit given to dollar amounts already spent under the previous agreement).

Subsequent to the signing of the agreement, Heritage carried out a diamond drilling program on the Bonsai property. None of the 4 holes completed during this program intersected significant mineralization according to a cursory report given to the Company. In March 2006, Heritage informed the Company that it would not be proceeding with the option on the Bonsai property.

The Company subsequently optioned out the property to Copper Creek Ventures, per News Release dated November 9, 2009, on file with Sedar. In 2010, Copper Creek carried out a geophysical survey over the Heritage west anomaly and outlined a strong conductor. An MMI geochemical survey was commissioned which produced a Cu-Zn anomaly coincident with the conductor, along with several discrete gold-silver anomalies along the axis of the anomaly. Over ten holes were drilled into various targets along the conductor. Results from these holes were reported by Copper Creek and were uniformly low. In 2011, Copper Creek carried out additional geochemical programs and further drilling in the vicinity of the hole which ran 64 metres of anomalous gold and silver mineralization. Copper Creek reported results from the 2011 drilling which confirm and partially extend results obtained in previous programs.

The Company received notice from Copper Creek in 2014 that it will not continue with the option. In the interim certain of the Bonsai claims have been allowed to expire, however, the Company has retained core claims upon which the bulk of the previously discovered mineralization is located. The property was visited by Teuton geologists in the 2018 field season discovering certain areas considered prospective for gold mineralization.

Stamp Property

The Company owns 3 claims lying southeast of Mountain Boy’s BA property. In late March 2010, the Company optioned a 50% interest in the Stamp property to Decade Minerals, a TSX-V listed company. Decade can earn its 50% interest by spending $1.5 million and paying $110,000 cash to Teuton over the 4 year term of the option. Full details are available in the March 25, 2010 posting on sedar.com.

Decade relinquished the option on the property in 2015. This 100%-owned Teuton property is available for a prospect generator farm-in opportunity.

Bay Silver Property

The Bay Silver property controls the old United Empire mine from which limited production of high-grade silver was seen in the 1920’s. Ore from the mine was shipped to the valley floor below by way of a tramline, portions of which still remain on the property.

The property contains numerous silver-rich showings some of them developed by hundreds of feet of tunnels. In 1983 and 1984, high-grade ore was trenched from silver-lead-zinc veins, first explored in 1919. The No. 4 zone consists of a 1.2-metre-wide vein which strikes northeast and dips 20 degrees southeast. The vein contains 0.6 metres of massive galena, sphalerite and tetrahedrite in the hangingwall and 0.6 metres of quartz with disseminated sulphides in the footwall.

In previous assessment reports, a 0.61-metre chip sample across the vein assayed two grams per tonne gold, 8679.7 grams per tonne silver, 20.3 per cent lead and 20.2 per cent zinc. The No. 3 zone is reported as being located about 100 metres south of the No. 4 zone. This shear zone contains long lenses of quartz mineralized with pyrite, pyrrhotite, galena and sphalerite. These lenses are up to 1.8 metres wide associated with a stockwork of sulphide stringers and are hosted in schist which has a strike of 150 degrees.

The lower showings, 300 metres east of the No. 4 zone, consist of two quartz-sulphide veins. The southernmost vein lies along the contact between a large granodiorite dike on the east and hornfelsed argillite to the west. The vein contains lenses of pyrrhotite, sphalerite, galena and tetrahedrite in a gangue of quartz. In a previous assessment report a 0.91-metre chip sample across the vein assayed 42.30 grams per tonne gold and 1,273 grams per tonne silver. A second vein 120 metres to the north assayed 15.96 grams per tonne gold and 2,268 grams per tonne silver over a narrow width.

In 2017, a rock geochemical traverse was run over a portion of the property but did not return any significant results. The property was farmed out to AUX Resources (formerly Auramex Resources) (“AUX Resources”) in August 2018 on terms allowing AUX Resources to earn a 100% interest by paying Teuton and Silver Grail $120,000 and 500,000 shares of AUX Resources over a four year period. AUX Resources recently made all future option payments due on the property and title was transferred.

A 2% NSR is payable, one half of which can be purchased for $1,000,000; a $50,000 annual advance royalty is payable after 7 years.

Lord Nelson Property

The Lord Nelson claims lie between the Poly property of Geofine Explorations (under option to Frontline Gold Inc.) and the large Del Norte property of Sabina Gold & Silver Corp. and Teuton Resources. Very little work has been done on the claims to date but they are considered prospective for VMS style mineralization and vein-type gold-silver mineralization as indicated on the Del Norte property.

The 100% owned property has been optioned out to Geofine Explorations (“GFX”) under terms whereby GFX can earn a 100% interest in the Lord Nelson claims by paying $210,000 (or $185,000 and a share issuance with a cash value of $25,000) over the five year term of the option. It must also perform $1,200,000 of exploration work over this period.

In late 2015, the terms of the agreement with GFX were amended. The time to carry out the remaining exploration work has been extended to Nov. 1, 2019. Cash payment deadlines were also extended varying from 2016 to 2019. Teuton will retain a 2% NSR after the earn-in with no buyback, and also be entitled to a yearly advance royalty payment of $50,000. In 2016, the agreement with GFX was assigned to Millrock Resources Inc. who subsequently farmed it out to Arcwest Explorations. The property was recently returned to Teuton and has since been optioned out to Decade Resources on terms allowing Decade to earn up to a 55% interest by spending $5 million over 5 years.

A 2018 ZTEM airborne geophysical survey run by Geotech Ltd. over the Del Norte property also covered extensive portions of the Lord Nelson. A 3D Inversion run on geophysical data from the survey outlined a target area considered favorable to host gold mineralization.

The Lord Nelson was optioned to Decade Resource in August of 2020 on terms allowing Decade to earn a 55% interest by spending $2,000,000 over five years and by making various cash and share payments. A further 20% interest can be earned by placing the property into production. Decade drilled 9 holes close to the boundary area between the Lord Nelson and Del Norte property in 2020 showing scattered gold and copper values.

Tonga Property

The Company and Silver Grail jointly own the Tonga property situated 24km north of Alice Arm, British Columbia. It was originally staked in the early 1980’s due to strong silver stream sediment anomalies in various creeks. Prospecting revealed silver-bearing float grading up to 90 oz/ton, certain samples of which contained comb quartz. A later traverse found some VMS-style float with anomalous lead and silver values.

In 2005, a helicopter airborne EM-Mag survey was commissioned over the Tonga property results from which showed a large zone of anomalous EM responses. Seven holes were drilled in 2006 from four setups. One hole his a 1.5m interval (from 162.2 to 163.7m) grading 0.25% lead, 2.46% zinc and 137.5 g/t silver. No substantive further work has been carried out on the property.

In 2020 Goliath Resources explored a property, the Golddigger, adjoining the Tonga on its western side. Impressive gold values were found in several shear structures which are to be tested by a major drilling program in 2021. Just to the east of the Tonga, Fury Gold has been exploring the large “Kombi” gold-silver target.

Fiji Property

The Company and Silver Grail jointly own the Fiji property which is located due north of the Tonga property and adjoins on the west side of Fury Gold’s Homestake Ridge property. Prospecting in 2006 disclosed two promising zones containing gold and silver mineralization. This area was tested by 7 holes in 2007 with mixed results, one hole returning 2.0 m grading 3.22 g/t gold and 7.35 g/t silver, another returning 3.0 m of 3.36% zinc, 1.99 g/t gold and 15.6 g/t silver. Full results are available in the news release on file with SEDAR dated March 5, 2008.

Only very minor prospecting has taken place in the interim. However, Fury Gold, owner of the adjoining Homestake Ridge property, continues to explore three gold-silver deposits occurring east of the common boundary between the Fiji and Homestake properties. These are the Homestake Silver, Homestake Main and South Reef deposits. Indicated resource for the Homestake Main deposit is 736,000 tonnes grading 7.02 g/t gold and 74.8 g/t silver; inferred resources for the Homestake Main, Homestake Silver and South Reef deposits are 5,545,000 tonnes grading 4.58 g/t gold and 100 g/t silver.

Catspaw Property

The Catspaw property is 100% owned by the Company and is situated 40km northwest of Stewart, BC.

The claims have become more prospective because of the recent discovery of exceptionally high-grade gold and silver mineralization on the adjoining Electrum property of American Creek Resources. This 100%owned Teuton property is available for a prospect generator farm-in opportunity.

Horatio Property

This 100%-owned Teuton property is located between Teuton’s Del Norte property and the Willoughby property recently acquired by Millrock Resources. Very high-grade gold and silver mineralization in massive sulfides was discovered in 2003 in a steep location from what appeared to be lensoidal bodies. An unsuccessful attempt was made to drill the discovery area late in the season. The property has lain dormant in succeeding years but due to renewed activity in the general region it deserves a fresh look. A ZTEM survey carried out in 2018 in the Del Norte property area also covered portions of the Horatio property.

Silver Crown Property

The company, jointly with Silver Grail, owns an interest in 11 claims adjoining the Silver Crown 6 claims optioned to Decade Resources. These 11 claims were optioned to AUX Resources in 2019 in a deal allowing AUX Resources to earn a 100% interest by paying Teuton and Silver Grail $120,000 and 500,000 shares of AUX Resources over a four year period. AUX Resources recently made all future option payments due on the property and title was transferred.

A 2% NSR is payable, one half of which can be purchased for $1,000,000; a $50,000 annual advance royalty is payable after 7 years.

Silver Crown 6 Property

The Company, jointly with Silver Grail Resources Ltd., owns the Silver Crown 6 claim (Tenure #508269). A 100% interest in the claim (subject to a retained NSR interest) was optioned to Decade Resources in 2006, by paying $100,000 in cash (paid), issuing 300,000 shares (issued) and carrying out $1,500,000 of work (not yet complete, but extensions were granted). The property lies north of and adjoins Decade’s Red Cliff claims where drilling has encountered several high-grade gold and gold-copper intervals. In 2016, Decade personnel took out heavy sediment stream samples from the Silver Crown 6 claim all of which returned anomalous to highly anomalous values in gold. Option work commitment requirements have been extended to the end of 2019 in consideration of payment of $10,000 due on August 30, 2019 as well as the withdrawal of a term in the option agreement giving Decade the right to repurchase half of the NSR. Decade has informed the Company that through inadvertence it had not filed assessment work on the property in time and the property had come open and was staked by another party. Negotiations are underway with Decade to compensate the Company for the loss of its rights under the agreement.

Treaty East Property

The Treaty East property adjoins the Treaty Creek property to the east. The extensive Pretium BruecjackSnowfield property is directly south and satellite claims of Seabridge Gold’s KSM property lie to north. The property was acquired by Teuton in 2013 when Pretium swapped two properties for one owned by Teuton on the east side of the Knipple Glacier.

No work has yet been done on the Treaty East property but it recently has become prospective due to a discovery of Eskay-Creek type mineralization in the A6 zone by Pretium, located about 5.5km due south of the common boundary. The region east of the Sulphurets Hydrothermal System—host to the world’s largest undeveloped gold and copper reserves in the Kerr, Sulphurets, Mitchell and Iron Cap deposits (owned by Seabridge Gold), the massive Snowfield gold zone owned by Pretium, Preitum’s high-grade Valley of the Kings mine currently in production, and the Goldstorm gold zone now the focus of a major exploration program paid for by Tudor Gold, 60% owner (Teuton and American Creek each own 20% carried interests), has historically been considered to have minimal mineral potential. This has now changed owing to the A6 discovery. Teuton plans on optioning out the property.

New Westminster Mining Division Properties

Roman Property

The Roman property is owned 50-50 with Silver Grail Resources Ltd. It was first acquired by staking in 1998 and subsequently optioned to Leader Mining in 2001. Leader was interested in examining the magnesium potential as the Roman property covers the western portion of 10km long ultramafic intrusive known to host the metal. Five holes drilled into the property all encountered magnesium with the best result equaling 44.5m of 25.79% Mg (or 42.77% MgO). All holes bottomed in mineralization.

Magnesium has currently risen dramatically in value due to shortages caused by production cutbacks in China, a country which produces 85% of the world’s magnesium. Prices spiked to $4.20 US a pound, up from a long-term average of around $1.10/lb. Presently prices are at $2.56/lb which is more than double the long-term rate. Magnesium is considered a critical metal and both the Canada and the US are looking to have local, i.e., North American, sources of the metal to cut the dependency on China.

The Roman property also has considerable potential for the discovery of nickel and cobalt deposits, also within the ultramafic intrusive. A 3D IP survey was conducted over an area previously disclosed as having several soil geochem Ni and Co anomalies. Three anomalous areas of chargeability were defined during the survey, related to the nickel soil geochemical anomalies. Teuton and Silver Grail completed soil geochemical surveys and prospecting on the Roman property in 2018. This was designed to expand known anomalous areas of nickel and cobalt. Assay results were consistent with work done in earlier years (previously, cobalt values in soils have run from trace to over 1,300 ppm). The cobalt price has recently risen again to $26US/lb. on the strength of increased demand primarily related to use in batteries for electrical cars.

The Roman property’s geological setting shares some similarities with that at the formerly producing, Giant Mascot nickel-cobalt-PGE mine located to the east.

RESULTS OF OPERATIONS

For three month period ended September 30, 2021 compared to three month period ended September 30, 2020:

Net loss for the quarter was $1,728,972 ($0.03 per share) compared to net income of $2,946,795 ($0.06 per share) for the quarter ended September 30, 2020. The difference in net income/loss during the two quarters arises mainly from the unrealized loss on marketable securities of $1,428,078 in the quarter ended September 30, 2021 as compared with the unrealized gain on marketable securities of $3,550,276 in the quarter ended September 30, 2020. This difference was partially offset by a share-based compensation cost of $457,797 in the quarter ended June 30, 2020 as compared with $nil for the comparable period in 2021.

As for administrative costs, items such as consulting, investor relations, professional fees and transfer agent and regulatory fees were all higher in the 2020 quarter as compared to the 2021 quarter. The higher transfer agent and regulatory fees are due to private placements carried out in the quarter ended September 30, 2021. On the other hand, office, rent and telephone costs were higher in the 2021 quarter than the 2020 quarter. Salaries and benefits in the three months ended September 30, 2021 were much higher at $244,937 in comparison to $48,113 in the three months ended September 30, 2020: this difference can be explained by a bonus paid of $171,000 to the President of the Company, Dino Cremonese, in conformance with the terms of his Executive Employment Agreement with the Company.

For the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:

Net loss for the nine months ended September 30, 2021 was $2,761,093 ($0.05 per share) as compared to net income of $6,394,289 for the nine months ended September 30, 2020. The difference in net income/loss during the nine months ended September 30, 2021 as compared with the nine months ended September 30, 2020 arises mainly from the unrealized loss on marketable securities of $4,396,106 in the nine months ended September 30, 2021 as compared with the unrealized gain on marketable securities of $7,038,375 in the nine months ended September 30, 2020. Also, salary and benefits were $339,921 in the nine months ended September 30, 2021 as compared to $137,549, the difference largely attributable to the

bonus paid as described in the previous section. These two items were offset by an increase in option proceeds during the nine months ended September 30, 2021 of $3,124,500 as compared with $831,371 for the comparable nine months in 2020.

Administrative costs were, generally, roughly the same for the two periods. Some items, such as transfer agent and regulatory fees cost were more in the nine month period ending September 30, 2020 as compared to the nine months ended September 30, 2021 of $32,225: this came about because of private placements completed during the fiscal 2020 year (as opposed to none in 2021).

SUMMARY OF QUARTERLY RESULTS

The following is a summary of the Company’s financial results for the eight most recently completed quarters:

	September 30,	June 30,	March 31,	December 31,
	2021	2021	2021	2020
	$	$	$	$
Total revenues	–	–	–	–
Net income (loss)	(1,728,972)	(3,436,071)	2,403,950	(2,456,120)
Net earnings (loss) per share – basic	(0.03)	(0.07)	0.05	(0.06)
Net earnings (loss) per share – diluted	(0.03)	(0.07)	0.05	(0.05)
	September 30,	June 30,	March 31,	December 31,
	2020	2020	2020	2019
	$	$	$	$
Total revenues	–	–	–	–
Net income (loss)	2,946,795	3,926,126	(477,643)	(376,377)
Net earnings (loss) per share – basic	0.06	0.09	(0.01)	(0.01)
Net earnings (loss) per share – diluted	0.05	0.08	(0.01)	(0.01)

Over the years quarterly net losses for the Company have typically ranged from $70,000 to $220,000, representing, for the most part, administrative expenses. Net losses above this range generally come about due to share-based compensation costs and unrealized losses on marketable securities; on the other hand, quarters with net income instead of net losses generally arise because of option proceeds received in excess of capitalized costs and unrealized/realized gains on marketable securities. Higher administrative costs are generally associated with increased exploration activity.

LIQUIDITY AND CAPITAL RESOURCES

As at September 30, 2021, the Company had cash of $5,801,005 and total current assets of $20,062,602 compared to cash of $12,528,349 and total current assets of $19,572,786 as at December 31, 2020. As at September 30, 2021, the Company had working capital of $19,855,976 compared to working capital of $19,492,771 as at December 31, 2020.

On April 27, 2021 the Company entered into private placements with its joint venture partner, Tudor Gold, subscribing for 1,000,000 flow-through common shares at a price of $3.60 per flow-through share and 2,000,000 non flow-through common shares at a price of $3.00 per non flow-through share for a total subscription of $9,600,000. On August 10, 2021, the Company announced it was purchasing 10,000,000 units of Decade Resources Ltd. at $0.05 a unit. Each unit is to consist of one share and one share purchase warrant entitling the subscriber to purchase another share at $0.08 for a period of two years.

On May 6, 2021, the Company received $450,000 and 250,000 common shares of Tudor Gold pursuant to the Orion property option agreement dated June 1, 2016. On May 6, 2021, the Company received $300,000 from Tudor Gold pursuant to the Delta property option agreement dated March 1, 2016. On May 7, 2021, the Company received $300,000 from Tudor Gold pursuant to the High North property option agreement dated March 1, 2016. On September 23, 2021 the Company received $105,000 from Decade Resources pursuant to option agreements. On October 8, 2021 the Company received $50,000 from Optimum

Ventures pursuant to the Harry property option; on November 12, 2021 the Company received 200,000 shares of Optimum Ventures pursuant to the Harry property option.

On May 7, 2021, the Company modified the exercise price of 500,000 stock options at $3.18 per common share and 200,000 stock options at $2.78 per common share to $2.68 per common share for both sets of stock options. On May 7, 2021, the Company granted 342,500 stock options at an exercise price of $2.68 per common share expiring on May 7, 2026 to certain directors of the Company. On November 9, 2021, the Company further amended these 1,042,500 stock options to $2.06 from $2.68 a share. The amendment is subject to the approval of disinterested shareholders at the upcoming Annual Special and General Meeting of the Company.

On July 16, 2021, the Company issued 1,000,000 common shares for proceeds of $270,000 pursuant to the exercise of stock options.

Subsequent to June 30, 2021, the Company issued 741,000 common shares for proceeds of $405,000 pursuant to the exercise of share purchase warrants.

The Company holds equity securities in publicly traded companies including its joint venture partner, Tudor Gold. As at September 30, 2021, the Company owns 5,998,927 (December 31, 2020 – 2,498,927) common shares of Tudor Gold with a fair value of $13,617,564 (December 31, 2020 - $7,846,902).

	December 31,				September 30,
	2020			Unrealized	2021
	Fair value	Additions	Disposals	gain (loss)	Fair value
	$	$	$	$	$
Marketable securities	6,967,116	11,597,897	–	(4,396,106)	14,168,907

The Company expects to earn additional income in the forthcoming quarter from receipts of property option agreements.

Cash Flows

Operating Activities

For the nine month period ended September 30, 2021, the Company’s operating activities used $620,682 of cash compared to $162,338 of cash used during the nine month period ended September 30, 2020.

Investing Activities

For the nine month period ended September 30, 2021, the Company had net cash used of $8,892,787 in investing activities compared to $406,859 of net cash provided by investing activities for the nine month period ended September 30, 2020. During the nine month period ended September 30, 2021, the Company spent $nil on the purchase of property and equipment and spent $446,287 on exploration and evaluation expenditures whereas the Company spent $19,023 on the purchase of property and equipment and spent $72,495 on exploration and evaluation expenditures during the nine month period ended September 30, 2020. The Company received $1,730,000 in mineral property option payments in the nine month period ended September 30, 2021 compared to $37,500 during the comparable nine months ended September 30, 2020. The Company purchased $10,100,000 of marketable securities in the nine month period ended September 30, 2021 compared to $nil in the nine month period ended September 30, 2020. The Company received $nil from the sale of marketable securities in the nine month period ended September 30, 2021 compared to $490,977 in the nine month period ended September 30, 2020. The Company received $1,000 from the disposal of property and equipment in the nine month period ended September 30, 2021 compared to $nil in the nine month period ended September 30, 2020.

Financing Activities

For the nine month period ended September 30, 2021, the Company received proceeds of $2,786,125 from shares issued compared to $11,628,125 for the comparable nine months in 2020.

Capital Management

The Company manages its capital to maintain its ability to continue as a going concern and to provide returns to shareholders and benefits to other stakeholders. The capital structure of the Company consists of cash, marketable securities, and equity comprised of issued capital and share-based payment reserve.

The Company manages its capital structure and makes adjustments to it in light of economic conditions. The Company, upon approval from its Board of Directors, will balance its overall capital structure through new share issues or by undertaking other activities as deemed appropriate under the specific circumstances.

The Company is not subject to externally imposed capital requirements and the Company’s overall strategy with respect to capital risk management remains unchanged from the year ended December 31, 2020.

OFF BALANCE SHEET ARRANGEMENTS

There are no off-balance sheet arrangements to which the Company is committed.

TRANSACTIONS WITH RELATED PARTIES

(a) For the nine month period ended September 30, 2021, the Company incurred salary of $306,000, $171,000 of which was paid as a bonus (2020 - $108,000) to the President of the Company, Dino Cremonese, P.Eng; the Company incurred office, rent and telephone expenses of $3,600 (2020 - $5,400) to the President of the Company; and engineering fees of $59,600 (2020 - $29,600) to the President of the Company, Dino Cremonese, P. Eng. As at September 30, 2021, the amount of $26,158 (December 31, 2020 - $6,779) was owed to the President of the Company, which is noninterest bearing, unsecured and due on demand
(b) For the nine month period ended September 30, 2021, the Company incurred salary of $nil (2020 - $18,000) to the spouse of the President of the Company, Deborah Shilling.
(c) As at September 30, 2021, the Company owns 207,932 common shares in Silver Grail with a fair value of $40,547 (December 31, 2020 - $44,705). The Company carries on joint exploration activity with Silver Grail, a company having directors in common with the Company, and has done so for the past 34 years. As at September 30, 2021 the amount of $248,585 (December 31, 2020 – $10,453) was owed from Silver Grail, which is non-interest bearing and due on demand; this amount arose from the shared exploration on the Midas and Konkin Silver properties and will be paid in the quarter ended December 31, 2021.
(d) During the nine months ended September 30, 2021, the Company incurred share-based compensation of $970,183 (2020 - $691,808) to directors of the Company.

FINANCIAL INSTRUMENTS AND OTHER INTSTRUMENTS

Fair Values

Assets and liabilities measured at fair value on a recurring basis were presented on the Company’s statement of financial position as of September 30, 2021 as follows:

	Fair Value Measurements Using Quoted prices in Significant active markets other Significant for identical observable unobservable Balance as at instruments inputs inputs September 30, (Level 1) (Level 2) (Level 3) 2021 $ $ $ $
Assets: Cash Marketable securities	5,801,005 – – 5,801,005 14,168,907 – – 14,168,907
Total assets measured at fair value	19,969,912 – – 19,969,912

The fair values of other financial instruments, which include accounts payable and accrued liabilities, and amounts due to/from related parties, approximate their carrying values due to the relatively short-term maturity of these instruments.

Credit Risk

Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, marketable securities and amounts receivable. The Company limits its exposure to credit loss by placing its cash and marketable securities with high credit quality financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. The carrying amount of financial assets represents the maximum credit exposure.

Foreign Exchange Rate and Interest Rate Risk

The Company is not exposed to any significant foreign exchange rate or interest rate risk.

Liquidity

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company currently settles its financial obligations out of cash. The ability to do this relies on the Company raising equity financing in a timely manner and by maintaining sufficient cash in excess of anticipated needs.

Price Risk

The Company is exposed to price risk with respect to commodity prices. The Company’s ability to raise capital to fund exploration and development activities is subject to risks associated with fluctuations in the market price of commodities.

The Company is exposed to equity price risk through its marketable securities and unfavourable market conditions could result in dispositions of marketable securities at less than favourable prices, especially during periods of overall market instability.

Recent Accounting Pronouncements

A number of new standards, and amendments to standards and interpretations, are not yet effective for the period ended September 30, 2021, and have not been early adopted in preparing these financial statements. These new standards, and amendments to standards and interpretations are either not applicable or are not expected to have a significant impact on the Company’s financial statements.

LEGAL PROCEEDINGS

The Company is not involved in any legal proceedings.

ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

An analysis of material components of the Company’s general and administrative expenses is disclosed in the unaudited condensed financial statements for the nine months ended September 30, 2021 to which this MD&A relates. An analysis of material components of the Company’s exploration and evaluation assets is disclosed in the unaudited condensed financial statements for the nine months ended September 30, 2021 to which this MD&A relates, supplemented by the following:

During the nine months ended September 30, 2021, the Company expended $535,158 on mineral property expenditures and acquisition costs, allocated as follows:

	Nine months
	ended
	September 30,
	2021
	$
Harry property, BC	1,287
Del Norte, BC	4,125
Konkin Silver, BC	282,355
Midas, BC	206,841
Eskay Rift, BC	10,523
Treaty Creek, BC	8,426
General properties, BC	21,601
	535,158

DISCLOSURE OF OUTSTANDING SHARE DATA

Share Capital

As at November 29, 2021 there are 56,216,881 shares issued and outstanding.

Share Purchase Warrants

As at November 29, 2021 there were no share purchase warrants outstanding.

Stock Options

As at November 29, 2021, the following stock options were outstanding:

950,000 stock options to directors and consultants, exercisable at $0.195 per share until September 21, 2022.

580,000 stock options to directors and consultants, exercisable at $0.225 per share until July 17, 2024.

960,000 stock options to directors, exercisable at $0.50 per share expiring on May 7, 2025.

500,000 stock options to directors, exercisable at $2.06 per share expiring on August 26, 2025. 200,000 stock options to directors, exercisable at $2.06 per share expiring on September 29, 2025.

342,500 stock options to directors, exercisable at $2.06 per share, expiring on May 7, 2026.

RISK FACTORS

On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic. The current outbreak of COVID-19 and any future emergence and spread of similar pathogens could have an adverse impact on global economic conditions, which may adversely impact the Company’s operations, and the operations of its suppliers, contractors, and service providers, the ability to obtain financing and maintain necessary liquidity. The outbreak of COVID-19 and political upheavals in various countries have caused significant volatility in commodity prices. While these effects are expected to be temporary, the duration of the business disruptions internationally and related financial impact cannot be reasonably estimated at this time.

The Company cannot estimate whether or to what extent this outbreak and the potential financial impact may extend to countries outside of those currently impacted. Travel bans and other government restrictions may also adversely impact the Company’s operations.

OTHER

Additional information relating to the Company’s operations and activities can be found by visiting the Company’s website at www.teuton.com and by accessing the Company’s news releases and filings on SEDAR at www.sedar.com.

TEUTON RESOURCES CORP.

2130 Crescent Road

Victoria, BC V8S 2H3 Tel: 778-430-5680 Fax: 778-430-5681 E-Mail: [email protected] Website: www.teuton.com

CORPORATE INFORMATION

DIRECTORS OFFICERS

Dino Cremonese, P.Eng., Victoria, BC Dino Cremonese, P.Eng. President and Chief Executive Officer

Ken Konkin, P. Geol., Vancouver, BC Robert Smiley, LLB Chief Financial Officer

Robert Smiley, L.LB, Vancouver, BC Deborah Shilling Secretary

Robert Gardner, B.A.Sc., MBA Vancouver, BC

Corporate Counsel Morton & Co.

1750-750 West Pender Street Vancouver, BC V6C 2T8

Transfer Agent Computershare Investor Services Inc.

rd 3 Floor, 510 Burrard Street Vancouver, BC V6C 3B9

Auditors Manning Elliott LLP

1700 – 1030 West Georgia Street Vancouver, BC V6E 2Y3

Trading Symbol “ TUO” (TSX Venture Exchange)

“TFE” (Frankfurt Stock Exchange)

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Teuton Resources Corp. — Management Reports 2021

44379_rns_2021-11-29_18dbf6a7-76a6-4c32-b8a9-4a7d4c09e69b.pdf

TEUTON RESOURCES CORP.

MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2021

OVERALL PERFORMANCE

OUR BUSINESS

EXPLORATION

Treaty Creek Property

TABLE 1: INITIAL MINERAL RESOURCE ESTIMATE SUMMARY

King Tut and Tuck Properties

Big Gold Property

Eskay Rift Property

Orion Property

Tennyson Property

Del Norte-Midas Property

Clone Property

Four J’s Property

Konkin Silver Property

Harry Property

Catspaw Property

Delta Property

High North Property

Leduc Silver--Pearson Properties

Bonsai Property

Stamp Property

Bay Silver Property

Lord Nelson Property

Tonga Property

Fiji Property

Catspaw Property

Horatio Property

Silver Crown Property

Silver Crown 6 Property

Treaty East Property

New Westminster Mining Division Properties

Roman Property

RESULTS OF OPERATIONS

For three month period ended September 30, 2021 compared to three month period ended September 30, 2020:

For the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020:

SUMMARY OF QUARTERLY RESULTS

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

Operating Activities

Investing Activities

Financing Activities

Capital Management

OFF BALANCE SHEET ARRANGEMENTS

TRANSACTIONS WITH RELATED PARTIES

FINANCIAL INSTRUMENTS AND OTHER INTSTRUMENTS

Fair Values

Credit Risk

Foreign Exchange Rate and Interest Rate Risk

Liquidity

Price Risk

Recent Accounting Pronouncements

LEGAL PROCEEDINGS

ADDITIONAL DISCLOSURE FOR VENTURE ISSUERS WITHOUT SIGNIFICANT REVENUE

DISCLOSURE OF OUTSTANDING SHARE DATA

Share Capital

Share Purchase Warrants

Stock Options

RISK FACTORS

OTHER

TEUTON RESOURCES CORP.

CORPORATE INFORMATION

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Teuton Resources Corp. Management Reports 2021