Three Sixty Solar Ltd. — Interim / Quarterly Report 2023

Jul 28, 2022

EASTFIELD RESOURCES LTD.

Condensed Interim Financial Statements For the Three Months Ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

110-325 Howe Street, Vancouver, B.C. V6C 1Z7 Tel: (604) 681-7913 Fax: (604) 681-9855

NOTICE TO READER:

These condensed interim financial statements have not been reviewed by the Company's external auditors. These statements have been prepared by and are the responsibility of the Company’s management.

Eastfield Resources Ltd. Condensed Interim Statements of Financial Position

(Unaudited – Expressed in Canadian dollars)

	May 31, 2022	February 28, 2022
ASSETS
Current
Cash and cash equivalents	$ 68,650	$ 111,271
Accounts receivable	6,417	10,638
Receivable from related parties (Note 9)	19,378	20,247
	94,445	142,156
Investments(Note 3)	1,582,823	1,719,247
Exploration and evaluation assets(Note 4)	1,419,073	1,412,115
Project deposits(Note 4)	139,146	139,146
Equipment	11,785	11,785
Right-of-use asset(Note 5)	98,931	106,926
Investment in sub-leases(Note 5)	233,368	248,440
Cash and cash equivalents	$ 3,579,571	$ 3,779,815
LIABILITIES
Current
Accounts payable and accrued liabilities	$ 101,506	$ 109,389
Lease obligations - current (Note 5)	98,456	98,456
Other liabilities (Note 6)	10,257	10,257
Payable to related parties (Note 9)	6,215	7,956
	216,434	226,058
Lease obligations– long term (Note 5)	251,483	274,205
	467,917	500,263
SHAREHOLDERS’ EQUITY
Share capital(Note 6)	4,497,095	4,497,095
Warrant reserve(Note 6)	162,340	162,340
Options reserve(Note 6)	941,852	941,852
Accumulated other comprehensive (loss) income	268,853	300,529
Deficit	(2,758,486)	(2,622,264)
	3,111,654	3,279,552
	$ 3,579,571	$ 3,779,815

Nature and continuance of operations (Note 1)

The accompanying notes are an integral part of these financial statements.

Eastfield Resources Ltd. Condensed Interim Statements of Loss and Comprehensive Loss (Income) For the Three Months Ended May 31, 2022 and 2021

(Unaudited – Expressed in Canadian dollars)

Expenses Bank charges Consulting Depreciation (Note 5) Dues and licenses Investor relations Legal and Audit Office Salaries and benefits Telephone Transfer and filing fees	2022 2021
	$ 384 $ 413 5,000 4,500 7,995 7,700 225 508 3,864 4,385 262 - 1,236 1,052 6,814 6,400 621 662 2,787 2,879
	29,188 28,499
Other (income)/expense Decrease in the fair value of derivative investments Interest income Interest income on sub-leases (Note 5) Interest expense on lease obligations (Note 5)	104,749 26,797 (133) (183) (5,750) (6,280) 8,168 9,700
NET LOSS	136,222 58,533
OTHER COMPREHENSIVE LOSS Items that will not be reclassified to net income or loss Change in the fair value of equityinvestments(Note 3)	31,676 (264,385)
COMPREHENSIVE LOSS (INCOME) LOSS	$ 167,898 $ (205,852)
BASIC AND DILUTED LOSS PER SHARE(Note 8) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING – basic and diluted	$ 0.003 $ 0.001 51,144,919 46,694,919

The accompanying notes are an integral part of these financial statements.

Eastfield Resources Ltd. Condensed Interim Statements of Changes in Shareholders’ Equity

(Unaudited – Expressed in Canadian dollars)

Number of Common Shares Share Capital (Note 6) Warrant Reserve (Note 6) Options Reserve (Note 6)	Accumulated Other Comprehensive Income/(Loss) Deficit Total Equity
Balance, February 28, 2021 46,694,919 $ 4,309,072 $ 57,168 $ 829,352 Change in fair value of investments (Note 3) - - - - Net loss for the period - - - -	$ 781,764 $(1,981,668) $ 3,995,688 264,385 - 264,385 - (58,533) (53,533)
Balance, May 31, 2021 46,694,919 $ 4,309,072 $ 57,168 $ 829,352	$ 1,046,149 $(2,040,201) $ 4,201,540
Balance, February 28, 2022 51,144,919 $ 4,497,095 $ 162,340 $ 941,852 Change in fair value of investments (Note 3) - - - - Net loss for the period - - - -	$ 300,529 $(2,622,264) $ 3,279,552 (31,676) - (31,676) - (136,222) (136,222)
Balance, May 31, 2022 51,144,919 $ 4,497,095 $ 162,340 $ 941,852	$ 268,853 $(2,758,486) $ 3,111,654

The accompanying notes are an integral part of these financial statements.

Eastfield Resources Ltd.

Condensed Interim Statements of Cash Flows

For the Three Months Ended May 31, 2022 and 2021

(Unaudited – Expressed in Canadian dollars)

Cash provided by (used in) Operating activities Net loss Adjustments to reconcile cash to net loss from operating activities: Change in fair value of derivative investments Depreciation Interest income on sub-leases Interest expense on lease obligations	2022 2021 $ (136,222) $ (58,533) 104,749 26,797 7,995 7,700 (5,750) (6,280) 8,168 9,700
Changes in non-cash working capital components Accounts receivable Receivable from related parties Payable to related parties Accounts payable and accrued liabilities	(21,060) (20,616) 4,221 3,100 869 9,153 (1,741) 1,273 (7,883) (11,081)
	(25,594) (18,171)
Investing activities Property option payments Mineral property exploration expenditures	5,000 32,500 (11,958) (16,182)
	6,958 16,318
Financing activities
Net lease payments	(10,069) (9,106)
(DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(42,621) (10,959) 111,271 258,183
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 68,650 $ 247,224
Supplemental cash flow information Interest received	$ 133 $ 183

The accompanying notes are an integral part of these financial statements.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

1. NATURE AND CONTINUANCE OF OPERATIONS

Eastfield Resources Ltd. (the “Company”) was incorporated in the Province of British Columbia. Its principal business activities are the acquisition and exploration of gold, copper and other precious and base metal properties in Canada. The Company is in the process of actively exploring its mineral properties and has not yet determined whether these properties contain ore reserves that are economically recoverable. The Company is considered to be in the exploration stage and does not have operating cash flows.

The Company’s shares are listed for trading on the TSX Venture Exchange (the “Exchange”) under the symbol ETF. Its registered office is located at 110-325 Howe Street, Vancouver, British Columbia V6C 1Z7.

These financial statements have been prepared on the basis of accounting principles applicable to a going concern which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations. The ability of the Company to fund its potential future operations and commitments is dependent upon the ability of the Company to obtain additional financing. There is a risk that additional financing will not be available on a timely basis or on terms acceptable to the Company. These financial statements do not reflect the adjustments or reclassifications that would be necessary if the Company were unable to continue operations. Such adjustments and reclassifications could be material.

2. BASIS OF PREPARATION

Statement of Compliance

These condensed interim financial statements have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting of International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). The condensed interim financial statements should be read in conjunction with the Company’s annual financial statements for the year ended February 28, 2022, which have been prepared in accordance with IFRS.

These financial statements were approved for issue by the Company’s board of directors on July 28, 2022

Accounting estimates and judgments

The preparation of these interim condensed financial statements required management to make estimates, judgments and assumptions that affect the reported amounts and other disclosures in these financial statements. Estimates and the underlying assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions.

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

Critical estimates are estimates and assumptions made by management that may result in material adjustments to the carrying amount of assets and liabilities within the next financial year. Critical estimates used in the preparation of these financial statements include, among others, the impairment of carrying values of equipment and exploration and evaluation assets, the determination of realizable amounts of deferred tax assets and liabilities, and the initial measurement at fair value for equity instruments and share-based compensation.

Critical accounting judgments are accounting policies that have been identified as being complex or involving subjective judgments or assessments. Critical accounting judgments include the expected economic lives of and the estimated future operating results and net cash flows from equipment and the identification of potential indicators of impairment for exploration and evaluation assets.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

3. INVESTMENTS

The Company has the following investments in equity instruments:

	May 31, 2022 February 28, 2022
	Number of Shares Cost Fair Value Number of Shares Cost Fair Value
Investments in Equity Instruments Measured at FVOCI Cariboo Rose Resources Ltd. 208,000 $ 14,925 $ 13,520 208,000 $ 14,925 $ 12,480 Consolidated Woodjam Copper Corp. 11,751,805 668,074 1,292,699 11,751,805 668,074 1,233,939 Northwest Copper Corp. 186,289 392,873 96,870 186,289 392,873 124,814 West Oak Gold Corp 200,000 20,000 20,000 200,000 20,000 30,000 Alpha Copper Corp. (formerly Prophecy Potash Corp.) 176,856 49,310 93,734 176,856 49,310 153,865 GK Resources Ltd. 330,000 49,500 66,000 330,000 49,500 59,400
1,194,682 1,582,823 1,194,682 1,614,498
Investments in Derivative Instruments Measured at FVTPL Consolidated Woodjam Copper Corp. (warrants, exercise price $0.08, expiry date June 24, 2022) 3,250,000 16,250 - 3,250,000 16,250 104,749
Total Investments $1,210,932$ 1,582,823 $1,210,932$1,719,247

The Company has irrevocably designated investments in equity instruments as measured at FVOCI rather than FVTPL as they are not held for trading and the FVOCI classification is considered more appropriate for these strategic investments. The fair value of these equity investments is based on quoted market prices which is a Level 1 fair value measurement.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

4. EXPLORATION AND EVALUATION ASSETS

Acquisition and exploration expenditures incurred on mineral properties for the three months ended May 31, 2022 and 20211 are:

ACQUISITION COSTS Balance, beginning of the period Incurred during the period Balance, end of the period EXPLORATION EXPENDITURES Communications Equipment and vehicle rental Fees and permits Geological Other Professional fees and field crews Balance, beginning of the period Balance, end of the period OPTION PROCEEDS Balance, beginning of the period Proceeds received during the period Balance, end of the period	$	May 31, 2022 May 31, 2021 509,699 $ 505,033 - -
		509,699 505,033
		89 401 803 482 63 - - 99 43 - 10,960 15,200
		11,958 16,182 2,015,809 1,538,273
		2,027,767 1,554,455
		(1,113,393) (966,583) (5,000) (32,500)
		(1,118,393) (999,083)
	$	1,419,073 $ 1,060,405

Indata Property, Omineca Mining Division, British Columbia

The Company has a 91.3% interest in the Indata property. Imperial Metals Corporation (“Imperial Metals”) owns the remaining 8.7% interest. This interest will be reduced if Imperial Metals fails to make its proportionate share of exploration and other payments on the property.

On June 20, 2018, the Company entered into an option agreement with Alpha Copper Corp. (“Alpha” formally Prophecy Potash Corp.) whereby Alpha may earn a 60% interest in the Indata property by making $250,000 in cash payments, issuing $150,000 in shares and completing $2,000,000 in exploration work over a five-year period ending June 20, 2023.

Hedge Hog Project

The Company owns a 100% interest in the copper, gold, silver, cobalt Hedge Hog project located in the Cariboo Mining division in British Columbia.

In December 2020, the Company optioned a 60-per-cent interest to privately controlled West Oak Gold Corp (“West Oak”). To earn its interest, West Oak must make payments (cash and/or shares) totaling $377,500 and complete $1.75million in exploration expenditures over a four-year term. Upon completion of the earn-in, Eastfield will retain a 40-percent working interest and a 0.5-per-cent net smelter return royalty.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

4. EXPLORATION AND EVALUATION ASSETS (continued)

Zymo Property, Skeena Mining Division, British Columbia

The Company holds a 100% interest in the Zymo property.

Iron Lake Property, Clinton Mining Division, British Columbia

The Company acquired 100% of the Iron Lake property from Canevex Resources Ltd. Canevex Resources Ltd. is owned by two directors of the Company. The Company has reserved a 1.5% net smelter royalty for the vendors.

Option agreement with Tech-X Resources

In May 2021, the Company entered into an agreement with Tech-X Resources Inc. (“Tech-X”) whereby Tech-X can earn a 51% interest in the property by incurring escalating exploration expenditures totaling $4,500,000 and making escalating option payments totaling $520,000 over a five-year term. Thereafter Tech-X can earn an additional 29% (80% total) by completing an additional $7,500,000 in exploration and making an additional $480,000 in cash payments over a further two-year period.

Tech-X has also entered into an agreement with the original vendors of the Iron Lake properties who hold a 1.5% net smelter return on production from the Eastfield claims (“the Royalty”). The Production Royalty Purchase Agreement allows Tech-X to purchase up to two thirds of the Royalty for $3,000,000 and retain a first right of refusal to purchase the balance. Escalating advance royalty payments totaling $500,000 are payable over 80 months as a credit towards the purchase following commencement of commercial production. In the event that Tech-X elects not to exercise its purchase option then the advance royalty payments are repayable to Tech-X out of production and Eastfield will then be allowed to purchase the Royalty for $3,000,000 and if it so chooses to purchase the entire Royalty for $4,500,000.

Project Deposits

$28,646 in deposits provided to the Ministry of Energy and Mines of British Columbia (the “Ministry”) and $110,500 in term deposits, bearing interest at rates ranging from 0.20% to 0.75% and maturing between May 19, 2022 and May 15, 2023, are provided as reclamation bonds for the above mineral properties. The term deposits will continue to be renewed to comply with the Ministry’s requirements. As these reclamation bonds are required to be in place whilst the Company has ownership of these mineral properties, they are recorded as non-current assets.

5. RIGHT-OF-USE ASSET AND LEASE OBLIGATIONS

The Company leases office space under a lease agreement which expires on June 30, 2025. The Company’s right-ofuse asset and estimated future lease payments over the remaining term of the lease are:

Right-of-use Asset Balance, February 28, 2021 Additions Balance February 28, 2022 Additions Balance May 31, 2022	Cost Accumulated Depreciation Carrying Amount
	198,922 (60,012) 138,910 - (31,984) (31,984)
	$ 198,922 $ (91,996) $ 106,926 - (7,995) (7,995)
	$ 198,922 $ (99,990) $ 98,931

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

5. RIGHT-OF-USE ASSET AND LEASE OBLIGATIONS (continued)

Lease Obligations

2022 2023 to 2025 Total future payments Less: interest Lease obligations Less: current portion Lease obligations – long term	$ 95,150 301,009
	396,159 (46,220)
	349,939 (98,456)
	$ 251,483

The Company sub-leases a portion of its office space to two companies, Cariboo Rose Resources Ltd. and Consolidated Woodjam Copper Corp., with directors and officers in common. These sub-lease agreements have the same lease term as the head lease described above.

Investment in Office Sub-leases

Investment in Office Sub-leases
Balance, February 28, 2021 Sub-lease payments received Interest income	$ 305,541 (79,983) 22,882
Balance, February 28, 2022 Sub-lease payments received Interest income	248,440 (20,822) 5,750
Balance,May31,2022	$ 233,368

6. SHARE CAPITAL

Authorized

Unlimited common shares without par value Unlimited preferred shares without par value

Other Liabilities

The estimated fair value of the tax deductions sold to investors in connection with the issue of flow through shares during the year ended February 28, 2022 was $127,305, of which $117,048 has been recognized on the statement of loss and comprehensive loss as other income for the year ended February 28, 2022, and $10,257 is recorded as a liability as at February 28, 2022 and will be recognized as other income when the related expenditures have been incurred and their tax deductions have been transferred to the investors.

Share Purchase Options

The Company issues options to directors, officers, and employees of the Company, and persons who provide ongoing services to the Company, under an incentive stock option plan. Share option terms issued under this stock option plan are at the discretion of the Board of Directors and generally include contractual lives of five years and exercise prices based on the fair market value of the common shares at the grant date. Options will normally vest entirely on the date of grant for directors, officers and employees and at the rate of 25% on the date of the grant and 25% every three months thereafter for consultants.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

6. SHARE CAPITAL (continued)

Share Purchase Options (continued)

A summary of changes in common share purchase options for the three months ended May 31, 2022 and 2021 are:

Balance, beginning of the year Cancelled/Expired Options exercisable, end of the year	May 31, 2022 May 31, 2021
	Number of Shares Weighted Average Exercise Price Number of Shares Weighted Average Exercise Price
	4,370,000 $ 0.07 3,275,000 $ 0.08 (150,000) - - -
	4,220,000 $ 0.07 3,275,000 $ 0.08

The following common share purchase options are outstanding at May 31, 2022:

Expiry Date	Options Outstanding Number of shares Exercise price Weighted Average Remaining Life (Years)	Options Exercisable
		Number of shares Exercise price
April 30, 2023 September 26, 2023 November 24, 2024 December 19, 2024 September 15, 2026 January 17, 2027 October 10, 2027	300,000 $ 0.10 0.92 300,000 0.05 1.32 495,000 0.05 2.49 650,000 0.05 2.56 1,875,000 0.08 4.30 100,000 0.10 4.64 500,000 0.05 5.36	300,000 $ 0.10 300,000 0.05 495,000 0.05 650,000 0.05 1,875,000 0.08 100,000 0.10 500,000 0.05
	4,220,000 3.50	4,220,000

Share Purchase Warrants

The Company has warrants outstanding entitling the holders to purchase of 1,800,000 common shares at a price of $0.10 per share until June 13, 2022. Subsequent to May 31, 2022 warrants to purchase 1,800,000 common shares at a price of $0.10 per share expired without being exercised.

7. SEGMENTED DISCLOSURES

The Company operates in one industry segment, the acquisition and exploration of mineral properties, within one geographical area, Canada. For the three months ended May 31, 2022 and 2021 all income was earned and all expenses were incurred in Canada and all non-current assets were held in Canada.

8. LOSS PER SHARE

The Company’s diluted loss per share is equal to its basic loss per share. Outstanding share purchase options and warrants could potentially dilute basic loss per share in the future but were not included in the calculation of diluted loss per share because they are antidilutive for the three months ended May 31, 2022 and 2021.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

9. RELATED PARTY DISCLOSURES

Related party transactions are recorded at the exchange amount agreed to by the parties.

During the three months ended May 31, 2022 payments of $5,000 (2021 - $4,000) were made to the Chief Financial Officer, who is also a director of the Company, for accounting services.

During the three months ended May 31, 2022, geological services amounting to $21,123 (three months ended May 31, 2021 - $16,947) were provided to the Company by Mincord Exploration Consultants Ltd. (“Mincord”), a geological service company owned by two directors of the Company. Mincord’s relationship with the Company is non-exclusive and without retainer and on a project-by-project basis. Services provided include the hiring of field and professional personnel, rental of vehicular, camp and technical equipment, transportation and mobilization costs. At May 31, 2022, accounts payable included $3,529 (February 28, 2022 - $7.956) payable to Mincord.

The Company is related to Cariboo Rose Resources Ltd. (“Cariboo Rose”) and Consolidated Woodjam Copper Corp. (“Woodjam”) through common directors and officers. In the normal course of business, the Company will enter into transactions with Cariboo Rose and Woodjam for the use of equipment, services and rental of office space. During the three months ended May 31, 2022, recoveries of rent, salaries, telephone, office, consulting, convention and travel costs were $27,285 (2021 - $25,633) from Cariboo Rose and $30,333 (2021 - $27,656) from Woodjam. At May 31, 2022, accounts receivable included $9,251 (February 28, 2022 - $10,460) receivable from Cariboo Rose and $10,463 (February 28, 2022 - $10,123) receivable from Woodjam.

10. MANAGEMENT OF CAPITAL

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to pursue the exploration and development of its mineral property interests, and to maintain a flexible capital structure which optimizes the costs of capital at an acceptable risk. The Company considers its capital for this purpose to be its shareholders’ equity.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Company may issue new shares or debt, acquire or dispose of assets or adjust the amount of cash and investments.

In order to facilitate the management of its capital requirements, the Company prepares annual expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. The annual and updated budgets are approved by the Board of Directors.

In order to maximize ongoing development efforts, the Company does not pay out dividends.

The Company’s investment policy is to invest its surplus cash in highly liquid short-term interest-bearing investments with maturities 90 days or less from the original date of acquisition, selected with regard to the expected timing of expenditures from continuing operations. The Company currently has sufficient capital resources to meet its administrative overhead expenses through its current operating period and it is confident it can raise additional funds to undertake all of its planned business activities. Actual funding requirements may vary from those planned due to a number of factors. Management believes it will be able to raise capital as required in the long term, but recognizes that there will be risks involved that may be beyond its control.

Eastfield Resources Ltd. Notes to the Condensed Interim Financial Statements For the three months ended May 31, 2022 and 2021 (Unaudited – Expressed in Canadian dollars)

11. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

The Company’s financial instruments are exposed to certain risks, which include credit, liquidity, and market risk. The risks related to financial instruments are managed by the senior management of the Company under policies and directions approved by the Board of Directors.

Credit Risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s cash is held at large Canadian financial institutions. The Company’s receivables consist mostly of Goods and Services Tax due from the federal government of Canada and mineral exploration tax credit receivable from the Government of British Columbia. As such, the Company considers the risk of these receivables to be minimal and has not recognized an expected credit loss allowance on these financial instruments. As at May 31, 2022 and 2021, none of the Company’s financial instruments subject to credit risk were past due or impaired.

The Company has determined that the expected credit losses on its accounts receivable and project deposits are not significant and accordingly has not recognized an allowance for expected credit losses as at May 31, 2022 and 2021.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. Accounts payable and accrued liabilities and payable to related parties are due within the current operating period. The Company’s lease obligations are due as set out in Note 5. The Company manages liquidity risk through the management of its capital structure (Note 10) and financial leverage.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s market risk is comprised of two types of risk: interest rate risk, and equity price risk.

• (i) Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk when holding fixed rate short term deposits of varying maturities. The risk that the Company will realize a loss as a result of a decline in the fair value of the cash equivalents investments is limited because these investments are generally highly liquid securities with short-term maturities. As at May 31, 2022 and 2021, the Company considers its exposure to interest rate risk to be minimal.

• (ii) Equity risk is the uncertainty associated with the valuation of assets arising from changes in equity markets. The Company is exposed to this risk through its investment in equity instruments. All of the Company’s listed equity investments (Note 3) are common shares of companies listed on the Toronto Stock Exchange and the Toronto Stock Exchange’s Venture Exchange and are monitored by management with decisions on sale taken at the board level.

• (iii) Foreign currency risk is the risk that a variation in exchange rates between the Canadian dollar and US dollar or other foreign currencies will affect the Company’s operations and financial results. The Company does not have significant exposure to foreign exchange rate fluctuation as it has a limited number of transactions denominated in foreign currencies.