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450000
5105000
6034000
2316666
2323332
200000
5538000
3305250
2810000
5732100
1124998
3829600
3110000
P2Y4M24D
P2Y1M20D
P1Y2M16D
P2Y2M16D
P1Y6M10D
P2Y3M4D
P0Y9M22D
P1Y9M22D
P0Y8M16D
P2Y10M14D
P4Y9M0D
P3Y10M6D
P2Y1M6D
P0Y3M15D
P3Y1M6D
P0Y1M27D
0.48
0.49
0.50
0.76
0.99
1.75
0.48
0.49
0.50
0.72
0.76
0.89
1.75
1.77
0.88
0.76
0.87
1.23
0.59
0.68
0.90
0.85
2.00
0.75
0.68
0.75
0.71
0.70
1.00
0.54
0.51
0.49
0.49
0.49
0.49
0.55
0.72
0.69
0.50
0.50
0.50
0.50
0.50
0.76
0.0139
0.0221
0.81
0.78
0.00
0.00
1.10
1.51
1095000
585000
-24000
-146000
80000
934000
7194000
-932000
-7194000
125000
200000
P5Y
P4Y2M30D
52485000
791000
0.20
0.30
Pebble Services Inc.
Northern Dynasty Partnership
Pebble Limited Partnership
Pebble Mines Corp.
U5 Resources Inc.
Cannon Point Resources Ltd.
MGL Subco Ltd.
Delta Minerals Inc.
Imperial Gold Corporation
Yuma Gold Inc.
Pebble Pipeline Corporation
Nevada, USA
Alaska, USA
Alaska, USA
Delaware, USA
Alaska, USA
Nevada, USA
British Columbia, Canada
British Columbia, Canada
British Columbia, Canada
British Columbia, Canada
Nevada, USA
Canada
Alaska, USA
Alaska, USA
Management and services company. Wholly-owned subsidiary of the Company.
Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines.
Limited Partnership. Ownership and Exploration of the Pebble Project.
General Partner. Holds 0.1% interest in the Pebble Partnership.
Holding Company. Subsidiary of the Pebble Partnership.
Holding Company. Wholly-owned subsidiary of the Company.
Not active. Wholly-owned subsidiary of the Company.
Not active. Wholly-owned subsidiary of the Company.
Not active. Wholly-owned subsidiary of MGL.
Not active. Wholly-owned subsidiary of Delta.
Not active. Wholly-owned subsidiary of Imperial Gold.
Holding Company. Wholly-owned subsidiary of the Company.
Holding Company. Subsidiary of the Pebble Partnership.
Holding Company. Subsidiary of the Pebble Partnership.
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
0.20
1.00
0.50
0.80
2402
2402
115069000
113915000
113895000
1354000
1132000
1591000
22000
53000
1154000
1644000
490000
20000
20000
459000
31000
490000
-1615000
-968000
-734000
-734000
24923000
31888000
247000
-63000
-1000
-64000
417
417
177000
69000
239000
769000
498000
549000
111086
434742
2000
6000
1909000
1215000
818000
1383000
139000
232000
8424000
0.10
0.02
0.56
0.54
1.03
1.08
0.99
0.76
1.54
0.50
0.54
0.51
0.82
1.44
0.96
1.03
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">These Financial Statements incorporate the
financial statements of the Company, the Company’s subsidiaries, and entities controlled by the Company and its subsidiaries
listed below:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">3537137 Canada Inc. <sup>1</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Services Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Management and services company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Northern Dynasty Partnership</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Limited Partnership<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Partnership</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Limited Partnership.  Ownership and Exploration of the Pebble Project.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Mines Corp.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Mines</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delaware, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">General Partner.  Holds 0.1% interest in the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble West Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble East Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Pipeline Corporation</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">U5 Resources Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Cannon Point Resources Ltd.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">MGL Subco Ltd.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"MGL")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delta Minerals Inc.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"Delta")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of MGL.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 1pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Imperial Gold Corporation<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Imperial Gold</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Delta.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Yuma Gold Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Imperial Gold.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 13.5pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif">Notes:</font></td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Both entities together hold 2,402 claims comprising the Pebble Project.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group’s exploration and evaluation
assets are comprised of the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-bottom: 1pt">
<p style="font: 10pt Cambria, Times, Serif; margin: 0; color: #0054A4"><b><i>Year ended December 31, 2019</i></b></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; color: #0054A4"> </p></td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Mineral Property interest <sup>1</sup></b></font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Plant and <br />
equipment <sup>2</sup> </b></font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Cost</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,374</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,915</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Impact of IFRS 16 adoption (note 2(c))</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance as restated</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,528</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">115,069</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,018</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">115,559</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Accumulated depreciation</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation <sup>3</sup></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(647</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(647</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,615</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,615</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,766</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">157</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,923</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December 31, 2019</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">137,307</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,560</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">138,867</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt">
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"><i>Year ended December 31, 2018</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Mineral Property interest <sup>1</sup></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Plant and <br />
equipment</font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Total</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Cost</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,354</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,895</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">20</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">20</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,374</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,915</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Accumulated depreciation</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(734</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(734</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation <sup>4</sup></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(234</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(234</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,641</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">247</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,888</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December 31, 2018</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">144,182</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">653</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">144,835</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 70.85pt; text-align: justify; text-indent: -34.85pt">Notes to tables:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 70.85pt; text-align: justify; text-indent: -34.85pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Comprises the Pebble Project, a contiguous block of 2,402 mineral claims covering approximately 417 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Includes ROU Assets, which relate to the use of office space, hangers, yard storage, an office copier and one vehicle. The following reconciles ROU Assets for the year ended December 31, 2019:</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Land and <br />
Buildings</b></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Equipment</b></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%"><font style="font: 10pt Cambria, Times, Serif">Beginning balance at January 1, 2019</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,132</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">22</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">459</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,591</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">53</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,644</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(411</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(9</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">     (420</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(63</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(64</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December  31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,117</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">43</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,160</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">ROU Asset depreciation of $224 is included in general and administrative expenses. The remainder is included in exploration and evaluation expenses.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation is included in exploration and evaluation expenses.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="background-color: white; text-align: justify"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; text-align: justify"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 47%; background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Sales tax receivable</font></td>
<td style="width: 2%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 14%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 2%; background-color: white"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">            177</font></td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 1%; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">          69</font></td>
<td style="width: 1%; background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">239</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">769</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Prepaid expenses</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">498</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">549</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; background-color: white; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">914</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,387</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following reconciles outstanding warrants
and non-employee options (options that were not issued under the Group’s incentive plan (see below)), each exercisable to
acquire one share, for the year ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Continuity</b></font></td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Cannon Point <br />
options <br />
(note 1)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Mission <br />
 Gold <br />
 warrants <br />
 (note 1)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Other warrants <br />
(note 2)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Special warrants<br />
(note 3)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Broker warrants <br />
(note 4)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 34%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beg. Balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">327,700</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,125,646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,858,213</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">35,311,559</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(3,160,945</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(783,814</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(3,944,759</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Bal. Dec 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">327,700</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,964,701</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,074,399</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">41,517,122</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">466,666</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">244,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">710,666</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(104,450</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(200,075</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,150,322</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,454,847</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif"><b>Bal. Dec 31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">223,250</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,764,626</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,541,065</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">244,000</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,772,941</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="25" style="text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted Averages per option/warrant as at December 31</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.38</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.55</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.65</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.64</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price US dollars</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">US$ 0.41 </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">US$ 0.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Remaining life in years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.40</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.52</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.45</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.33</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.38</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.55</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.65</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">nil </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.63</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">Remaining life in years</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.47</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.52</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.44</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.33</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.33</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/12pt Cambria, Times, Serif; margin: 0 0 0 71.45pt; text-align: justify; text-indent: -0.5in">Notes to table:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Pursuant to the acquisition of Cannon Point Resources Ltd. (“Cannon Point”) and Mission Gold Ltd. (“Mission Gold”) in October 2015 and December 2015 respectively, the Group exchanged options and warrants outstanding in these companies for options and warrants to purchase shares in the Company. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Warrants were issued pursuant to the June 2016 prospectus financing, July 2016 private placement and the 2019 non-revolving term loan credit facility agreement (note 8).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The special warrants were issued in a private placement at an exercise price of $0.83 (US$0.62) per special warrant in December 2018 (note 6(b)).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Broker warrants, which have a US dollar exercise price, were issued to the underwriters pursuant to the June 2019 prospectus financing (note 6(b)).</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">In the years ended December 31, 2019 and
2018 respectively, options were granted with a weighted average fair value estimated at $0.56 (2018 – $0.54) per option using
the Black-Scholes option pricing model with the following assumptions:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted Average Assumptions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DCE6F1; padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 62%; padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Risk-free interest rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DCE6F1"> </td>
<td style="width: 16%; background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.39</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.21</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected life</font></td>
<td> </td>
<td style="background-color: #DCE6F1"> </td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5.00 years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">4.25 years</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected volatility <sup>1</sup></font></td>
<td> </td>
<td style="background-color: #DCE6F1"> </td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">94.73</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">95.60</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Grant date share price</font></td>
<td> </td>
<td style="background-color: #DCE6F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.81</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.78</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected dividend yield</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #DCE6F1"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-indent: 0.5in">Note:</p>
<p style="font: 10pt/12pt Cambria, Times, Serif; margin: 0 0 0 53.9pt; text-indent: -18.45pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Expected volatility is based on the historical and implied volatility of the Company’s share price on the TSX.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Details of options exercised during the current
and prior year were as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: #DBE5F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 35%"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>Year ended December 31, 2019</b></font></td>
<td style="border-bottom: black 1pt solid; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number<br />
 of options </font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 exercise price <br />
 ($/option)</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 market share price <br />
on exercise <br />
 ($/option)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">January 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">125,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.87 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">February 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">30,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1.23 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">June 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">39,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.59 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">July 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">81,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.68 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">August 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">856,666</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.55 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.90 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">September 2019</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">54,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.72 </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.85 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1,185,666</font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.54 </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.88 </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 37%; padding-right: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31, 2018</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number<br />
 of options </font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average<br />
 exercise price<br />
 ($/option)</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average<br />
 market share price<br />
on exercise<br />
 ($/option)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">January 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">33,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.69 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">2.00 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">June 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">11,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.75 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">July 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">39,500</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.68 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">August 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">33,500</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.75 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">September 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">25,333</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">October 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">650,666</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.70 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">November 2018</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">7,500</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.76 </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1.00 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">800,499</font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.51 </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.76 </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The following tables summarizes information
about the Group’s options as at December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options outstanding</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options exercisable</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Exercise prices ($)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Remaining <br />
 contractual <br />
 life (years)</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Remaining <br />
 contractual <br />
 life (years)</font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.21 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.21 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.49</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,105,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.53 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,105,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.53 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,316,666</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.81 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,316,666</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.81 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,538,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.87 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,538,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.87 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.99</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,610,500</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">4.75 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,305,250</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">4.75 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">1.75</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,732,100</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.10 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,732,100</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.10 </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif">Total and weighted average contractual life per option</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">25,752,266</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.70 </font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">22,447,016</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.40 </font></td></tr>
<tr>
<td style="width: 29%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%"> </td>
<td style="width: 19%"> </td>
<td style="width: 15%"> </td>
<td style="width: 19%"> </td>
<td style="width: 1%"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options outstanding</b></font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options exercisable</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Exercise prices ($)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"> Remaining <br />
 contractual <br />
 life (years)</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"> Remaining <br />
 contractual <br />
 life (years)</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.21 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.21 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.49</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,034,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.26 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,034,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.26 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,323,332</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.81 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,323,332</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.81 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.72</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">200,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">200,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,620,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.85 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,810,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.85 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.89</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,125,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.29 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,124,998</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.29 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">1.75</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,744,400</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.10 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,829,600</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.10 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">1.77</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,110,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.16 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,110,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.16 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif">Total and weighted average contractual life per option</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,606,732</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.41</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">19,881,930</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.14 </font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following reconciles RSUs outstanding
for the year ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 57%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Continuity of RSUs</b></font></td>
<td style="border-bottom: black 1pt solid; width: 28%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of <br />
 RSUs </font></td>
<td style="border-bottom: black 1pt solid; width: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 fair value <br />
 ($/RSU)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Beginning Balance</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">506,495 </font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">2.24</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Granted <sup>1</sup></font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">125,000</font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">0.78</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Shares issued</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(434,742)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">0.68</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2018</b></font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">196,753 </font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.27</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td><font style="font: 10pt Cambria, Times, Serif">Shares issued <sup>1,2</sup></font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(111,086)</font></td>
<td style="padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.57</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td><font style="font: 10pt Cambria, Times, Serif">Withheld <sup>1,2</sup></font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(85,667)</font></td>
<td style="padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.27</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2019</b></font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">– </font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">– </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Notes</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The RSUs were granted on August 9, 2018, to an officer of the Group with an expiry date of December 2021 and an initial one-year vesting period from date of grant. The Group treated these RSUs as cash-settled given the cash settlement of a previous grant. In January 2019, the Group’s Compensation Committee agreed with management that it was in the best interest of the Group to accelerate the vesting period to January 28, 2019. The Group settled the vested RSUs, by issuing 58,886 shares and withheld 66,114 RSUs to pay tax obligations. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">During the year ended December 31, 2019, 71,752 RSUs, being the second and third tranches of 107,629 equity-settled RSUs that were granted in September 2017, were settled by issuing 52,200 shares, with the balance of 19,553 RSUs being withheld to pay tax obligations.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">38,686</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,934</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Foreign exchange translation differences incurred:</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">(Loss) gain on translation of foreign subsidiaries</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(6,321</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,752</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Ending balance</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">32,365</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">38,686</font></td>
<td style="padding-bottom: 1.5pt"></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 17.3pt">The components of transactions
to related parties are as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Payables to related parties</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">Key management personnel (a)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">971</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">104</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">Hunter Dickinson Services Inc. (b)</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">124</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">401</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">RSU liability</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">80</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total payables</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,095</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">585</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="margin: 0pt"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Transactions and Balances with Key Management Personnel ("KMP")</i></font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Transactions and Balances with other Related Parties</i></font></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"></p>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Falling due within the year</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Trade <sup>1</sup></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">12,401</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,935</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">286</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">12,687</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,935</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Non-current liabilities</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Trade <sup>1</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,194</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">934</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">934</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,194</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Notes:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; text-align: justify"> </td>
<td style="width: 3%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="width: 92%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">At December 31, 2019, trade payables in current liabilities includes legal fees due to legal counsel of US$5,274, which was previously due January 31, 2020 but has been extended to December 24, 2020 (note 17(c)), and US$635 payable on completion of a partnering transaction. The former legal fees were included in non-current liabilities at December 31, 2018.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities relate to lease of offices, site hangers, yard storage, an office copier and one vehicle, which have remaining lease terms of 4 to 125 months and interest rates of 7.5% – 10.5% over the term of the leases. During the year ended December 31, 2019, the Group recognized $120 in interest expense on lease liabilities, which is included in finance expense in the loss for the year.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The calculation of basic and diluted loss
per share for the year ended December 31, 2019 and 2018 was based on the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Loss attributable to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">69,193</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">15,957</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Weighted average number of shares outstanding (000s)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">358,343</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">312,265</font></td>
<td style="padding-bottom: 1.5pt"></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="5" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31</font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="border-bottom: black 1pt solid; background-color: #DBE5F1"> </td>
<td style="border-bottom: black 1pt solid; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Current tax (recovery) expense</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 6.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current year (recovery) expense</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current income tax (recovery) expense</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Deferred income tax (recovery) expense</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current year (recovery) expense</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Deferred income tax (recovery) expense</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31</font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Reconciliation of effective tax rate</b></font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Net loss</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(69,193</font></td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(15,957</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Total income tax (recovery) expense</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Loss excluding income tax</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(69,193</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(15,957</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Income tax recovery using the Company's domestic tax rate</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(18,682</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(4,308</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Non-deductible expenses and other</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,375</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,175</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Change in tax rates</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Deferred income tax assets not recognized</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">17,307</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,483</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Company's domestic tax rate for the
year was 27% (2018 – 27%).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Deferred income tax assets (liabilities)</b></font></td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Tax losses</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">                 2,342</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,140</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Net deferred income tax assets</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,342</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,140</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Resource property/investment in Pebble Partnership</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,342</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,140</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Equipment</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif"><b>Net deferred income tax liability</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group had the following temporary differences
at December 31, 2019 in respect of which no deferred tax asset has been recognized:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">Resource</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Expiry</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Tax losses</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">pools</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Other</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Within one year</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">                   –</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 58%; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">One to five years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,159</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">After five years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">238,056</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">No expiry date</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">93,512</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">65</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">238,056</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">93,512</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,224</font></td>
<td style="padding-bottom: 1.5pt"></td></tr></table>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Exposure</b></font></td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">                    239</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">769</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Restricted cash</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">851</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">830</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Cash and cash equivalents</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,038</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,872</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Total exposure</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">15,128</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">16,471</font></td>
<td> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-indent: 0.5in; text-align: justify">The exposure of the Group's US
dollar- denominated financial assets and liabilities to foreign exchange risk is as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Financial assets:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">263</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">627</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Cash and cash equivalents and restricted cash</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,090</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,523</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,353</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">11,150</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Financial liabilities:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Non-current trade payables</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(932</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(7,194</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Warrant liabilities</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(43</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Current trade and other payables</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(12,426</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(5,834</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Payables to related parties</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(24</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(146</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(13,425</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(13,174</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Net financial liabilities exposed to foreign currency risk</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(928</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,024</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
</table>
<p style="margin: 0pt"></p>
422942680
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>1.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>NATURE AND CONTINUANCE OF OPERATIONS</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Northern Dynasty Minerals Ltd. (the "Company")
is incorporated under the laws of the Province of British Columbia, Canada, and its principal business activity is the exploration
of mineral properties. The Company is listed on the Toronto Stock Exchange ("TSX") under the symbol "NDM" and on
the NYSE American Exchange ("NYSE American") under the symbol "NAK". The Company’s corporate office is located
at 1040 West Georgia Street, 15<sup>th</sup> floor, Vancouver, British Columbia.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The consolidated financial statements ("Financial
Statements") of the Company as at and for the year ended December 31, 2019, include financial information for the Company and
its subsidiaries (note 2(d)) (together referred to as the "Group" and individually as "Group entities"). The Company
is the ultimate parent. The Group’s core mineral property interest is the Pebble Copper-Gold-Molybdenum Project (the "Pebble
Project") located in Alaska, United States of America ("USA" or "US"). All US dollar amounts when presented
are expressed in thousands, unless otherwise stated.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group is in the process of exploring
and developing the Pebble Project and has not yet determined whether the Pebble Project contains mineral reserves that are economically
recoverable. The Group’s continuing operations and the underlying value and recoverability of the amounts shown for the Group’s
mineral property interests, is entirely dependent upon the existence of economically recoverable mineral reserves; the ability
of the Group to obtain financing to complete the exploration and development of the Pebble Project; the Group obtaining the necessary
permits to mine; and future profitable production or proceeds from the disposition of the Pebble Project.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">During the year ended December 31, 2019,
the Company raised cash net cash proceeds of $52,485 and $7,911 from the issuance and private placements of common shares respectively
(note 6(b)), and $791 from the exercise of share purchase options and warrants (notes 6(c)-(d)). The Group also received loans
of $2,317 pursuant to a non-revolving credit facility (note 8) which were repaid subsequent to the reporting period (note 17).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">As at December 31, 2019, the Group has
$14,038 (December 31, 2018 – $14,872) in cash and cash equivalents for its operating requirements and a working capital deficiency
of $233 (refer note 17). These financial statements have been prepared on the basis of a going concern, which assumes that the
Group will be able to raise sufficient funds to continue its exploration and development activities and satisfy its obligations
as they come due. For the years ended December 31, 2019 and 2018, the Group incurred a net loss of $69,193 and $15,957, respectively,
and has a deficit of $556,106 as at December 31, 2019. The Group has prioritized the allocation of its financial resources in order
to meet key corporate and Pebble Project expenditure requirements in the near term. Additional financing will be required in order
to progress any material expenditures at the Pebble Project and for working capital requirements. Additional financing may include
any of or a combination of debt and equity and/or contributions from possible new Pebble Project participants. There can be no
assurances that the Group will be successful in obtaining additional financing. If the Group is unable to raise the necessary capital
resources and generate sufficient cash flows to meet obligations as they come due, the Group may, at some point, consider reducing
or curtailing its operations. As such, there is material uncertainty that raises substantial doubt about the Group’s ability
to continue as a going concern.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group through the Pebble Partnership
initiated federal and state permitting for the Pebble Project under the National Environmental Protection Act ("NEPA"),
by filing documentation for a Clean Water Act ("CWA") 404 permit with the US Army Corps of Engineers ("USACE")
in December 2017. The USACE published a draft Environmental Impact Statement ("Draft EIS") in February 2019
and completed a 120-day public comment period on the Draft EIS on July 2, 2019. On July 30, 2019, the US Environmental
Protection Agency announced that it has taken action to withdraw a Proposed Determination initiated under Section 404(c) of the
CWA in 2014, which attempted to pre-emptively veto the Pebble Project before it received an objective, scientific regulatory review
under NEPA.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; text-transform: uppercase; color: #1F497D"><b>2.</b></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>SIGNIFICANT ACCOUNTING POLICIES</b></font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><i>(a)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Statement</i></font><i><font style="font-family: Times New Roman, Times, Serif"> </font><font style="font: 10pt Cambria, Times, Serif; color: #1F497D">of Compliance</font></i></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">These Financial Statements have been prepared
in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards
Board ("IASB") and interpretations issued by the IFRS Interpretations Committee ("IFRIC"s) that are effective for
the Group’s reporting for the year ended December 31, 2019. These Financial Statements were authorized for issue by the Board
of Directors on March 26, 2020.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Basis of Preparation</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">These Financial Statements have been prepared
on a historical cost basis using the accrual basis of accounting, except for cash flow information and for financial instruments
classified as fair value through other comprehensive income, which are stated at their fair value (notes 2(f)). The accounting
policies set out below have been applied consistently to all periods presented in these Financial Statements with exception to
the changes to accounting policies noted in below.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Changes in Accounting Standards</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>New and amended IFRS standards
that are effective for the current year</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group adopted IFRS 16 effective January
1, 2019, using the modified retrospective approach and therefore comparative information for the 2018 reporting period has not
been restated and continues to be reported under IAS 17, <i>Leases</i>, and IFRIC 4, <i>Determining Whether an Arrangement
Contains a Lease</i>, as permitted under the specific transitional provisions in the standard.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">IFRS 16 introduces a single, on-balance sheet
accounting model for lessees. As a result, the Group, as a lessee, has recognized right-of-use assets ("ROU Assets"), representing
its rights to use the underlying assets, and lease liabilities, representing its obligation to make lease payments.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">At inception of a contract, the Group assesses
whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. The Group has elected not to recognize right-of-use
assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and leases of low-value assets.
For these leases, the Group recognizes the lease payments as an expense in loss on a straight-line basis over the term of the lease.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group recognizes a lease liability and
a right-of-use asset at the lease commencement date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is initially measured
as the present value of future lease payments discounted using the interest rate implicit in the lease or, if that rate cannot
be readily determined, using the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate. The incremental borrowing rate is the rate which the Group would have to pay to borrow, over a similar
term and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Lease payments included in the measurement
of the lease liability comprise the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">fixed payments, including in-substance fixed payments, less any lease incentives receivable;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">amounts expected to be payable by the Group under residual value guarantees;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and</font></td></tr>
</table>
<p style="font: 1pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">payments of penalties for terminating the lease, if the Group expects to exercise an option to terminate the lease.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is subsequently measured
by:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">increasing the carrying amount to reflect interest on the lease liability;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">reducing the carrying amount to reflect the lease payments made; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">remeasuring the carrying amount to reflect any reassessment or lease modifications.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is remeasured when there
is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate
of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will
exercise a purchase, extension or termination option.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The ROU Asset is initially measured at cost,
which comprises the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">the amount of the initial measurement of the lease liability;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">any lease payments made at or before the commencement date, less any lease incentives received;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">any initial direct costs incurred by the Group; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The ROU Asset is subsequently measured
at cost, less any accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease
liability. It is depreciated from the commencement date to the earlier of the end of its useful life or the end of the lease term
using either the straight-line or units-of-production method depending on which method more accurately reflects the expected pattern
of consumption of the future economic benefits.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Each lease payment is allocated between
the lease liability and finance cost. The finance cost is charged to loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On the balance sheet, the ROU Assets are
presented in "<i>Mineral property, plant and equipment</i>" (note 3) and the lease liabilities are presented in "<i>Trade
and other payables</i>" (note 10).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -21.25pt; color: #0054A4"><i>Transition
to IFRS 16</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">At transition, lease liabilities were measured
at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate as at January
1, 2019. ROU Assets were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments, of which there were none.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group used the following practical
expedients when applying IFRS 16:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Applied the exemption not to recognize ROU Assets and lease liabilities for short-term leases that have a lease term of twelve months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Excluded initial direct costs from measuring the ROU Asset on initial application; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Used hindsight when determining the lease term if the contract contains options to extend.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group had no leases classified as finance
leases under IAS 17.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Incremental ROU Assets and lease liabilities
of $1,154 were recognized as of January 1, 2019, with no impact on accumulated deficit. The weighted average incremental borrowing
rate applied to the lease liabilities was 10%.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><br style="clear: both" />
The following table reconciles the Group’s operating lease commitments at December 31, 2018, as previously disclosed in the
2018 annual financial statements, to the lease liabilities recognized on initial application of IFRS 16 as at January 1, 2019:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; padding-right: 5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Adoption<br />
 of IFRS 16</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 85%"><font style="font: 10pt Cambria, Times, Serif"><b>Operating lease commitments as at December 31, 2018</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,284</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Adjustments on adoption of IFRS 16</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">235</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Operating lease commitments – December 31, 2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,519</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">IFRS 16 recognition exemption for short-term leases (note 14(b))</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(158</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Effect from discounting using the incremental borrowing rate – January 1, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(207</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">389</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Non-current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">765</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Basis of Consolidation</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">These Financial Statements incorporate the
financial statements of the Company, the Company’s subsidiaries, and entities controlled by the Company and its subsidiaries
listed below:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">3537137 Canada Inc. <sup>1</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Services Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Management and services company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Northern Dynasty Partnership</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Limited Partnership<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Partnership</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Limited Partnership.  Ownership and Exploration of the Pebble Project.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Mines Corp.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Mines</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delaware, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">General Partner.  Holds 0.1% interest in the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble West Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble East Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Pipeline Corporation</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">U5 Resources Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Cannon Point Resources Ltd.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">MGL Subco Ltd.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"MGL")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delta Minerals Inc.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"Delta")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of MGL.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: 13.5pt Times New Roman, Times, Serif"> </font><font style="font: 10pt Cambria, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Imperial Gold Corporation<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Imperial Gold</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Delta.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Yuma Gold Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Imperial Gold.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 13.5pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif">Notes:</font></td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Both entities together hold 2,402 claims comprising the Pebble Project.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Control is achieved when the Group is exposed,
or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee. Specifically, the Group controls an investee if, and only if, the Company has power over the investee
(i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights,
to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Intra-Group balances and transactions,
including any unrealized income and expenses arising from intra-Group transactions, are eliminated in preparing the Financial Statements.
Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent
of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to
the extent that there is no evidence of impairment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(e)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Foreign Currencies</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The functional currency is the currency
of the primary economic environment in which the entity operates and has been determined for each entity within the Group. The
functional currency of U5 Resources Inc., Pebble Services Inc., Pebble Mines Corp., the Pebble Partnership and its subsidiaries,
and Yuma Gold Inc. is the US dollar and for all other entities within the Group, the functional currency is the Canadian dollar.
The functional currency determinations were conducted through an analysis of the factors for consideration identified in IAS 21, <i>The
Effects of Changes in Foreign Exchange Rates</i>.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Transactions in currencies
other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of
each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing
at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated
at rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The results and financial position of entities
within the Group which have a functional currency that differs from that of the Group are translated into Canadian dollars as follows:
(i) assets and liabilities for each statement of financial position are translated at the closing exchange rate at that date; (ii)
income and expenses for each income statement are translated at average exchange rates for the period; and (iii) the resulting
exchange differences are included in the foreign currency translation reserve within equity.</p>
<p style="font: 10pt/13pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(f)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Financial Instruments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On initial recognition, a financial asset
is classified as measured at amortized cost; fair value through other comprehensive income ("FVTOCI") (debt / equity investment);
or fair value through profit or loss ("FVTPL"). A financial asset (unless it is a trade receivable without a significant
financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item
not at FVTPL, transaction costs that are directly attributable to its acquisition.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The classification of financial assets is
generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Classification of financial
assets</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Amortized cost</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For a financial asset to be measured at amortized
cost, it needs to meet both of the following conditions and is <u>not</u> designated as at FVTPL:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">it is held within a business model whose objective is to hold assets to collect contractual cash flows; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 6pt 0 6pt 35.45pt; text-align: justify">The Group’s financial assets
at amortized cost comprise of restricted cash, amounts receivable, and cash and cash equivalents.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Fair value through other
comprehensive income ("FVTOCI")</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For a debt investment to be measured at FVTOCI,
it needs to meet both of the following conditions and is <u>not</u> designated as at FVTPL:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4">Equity instruments at FVTOCI</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On initial recognition, the Group may irrevocably
elect to present subsequent changes in the instrument’s fair value in other comprehensive income ("OCI") provided
it is not held for trading. This election is made on an investment-by-investment basis.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4">Fair Value through profit
or loss ("FVTPL")</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">All financial assets not classified as
measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets. On initial recognition,
the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or
at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The following accounting policies apply
to the subsequent measurement of financial assets:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-top: black 1pt solid; width: 33%; border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Financial assets at FVTPL</font></td>
<td style="border-top: black 1pt solid; width: 67%; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognised in profit or loss.  </font></td></tr>
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Financial assets at amortized cost</font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at amortised cost using the effective interest method. The amortized cost is reduced by impairment losses (see below). Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss.  Any gain or loss on derecognition is recognised in profit or loss.</font></td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: 13.5pt Times New Roman, Times, Serif"> </font><font style="font: 10pt Cambria, Times, Serif"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-top: black 1pt solid; width: 33%; border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Debt investments at FVTOCI</font></td>
<td style="border-top: black 1pt solid; width: 67%; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.</font></td></tr>
<tr style="vertical-align: top">
<td style="border-bottom: black 2.25pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Equity investments at FVTOCI</font></td>
<td style="border-bottom: black 2.25pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Financial assets are impaired
when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial
assets, the estimated future cash flows of the investments have been impacted. For marketable securities classified as FVTOCI,
a significant or prolonged decline in the fair value of the securities below their cost is considered to be objective evidence
of impairment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Financial liabilities</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Non-derivative financial
liabilities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group’s non-derivative financial
liabilities comprise of trade and other payables, loans payable <font style="color: #1A171B">and payables to related parties.</font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><font style="color: #1A171B">A</font>ll financial
liabilities that are not held for trading or designated as at FVTPL <font style="color: #1A171B">are recognized initially
at fair value net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities
are measured at amortized cost using the effective interest method.</font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Derivative financial assets
and liabilities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">The Group’s warrant
liabilities are derivative financial liabilities and have been designated as at FVTPL (note 7).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On date of issue, the warrant liabilities
were recognized at fair value as a financing cost with the subsequent change in fair value recognized in loss<font style="color: #1A171B">.</font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(g)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Exploration and Evaluation Expenditure</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Exploration and evaluation
expenditures include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the acquisition
date fair value of exploration and evaluation assets acquired in a business combination or an asset acquisition. Exploration and
evaluation expenditures are expensed as incurred except for expenditures associated with the acquisition of exploration and evaluation
assets through a business combination or an asset acquisition. Costs incurred before the Group has obtained the legal rights to
explore an area are expensed.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Acquisition costs, including general and
administrative costs, are only capitalized to the extent that these costs can be related directly to operational activities in
the relevant area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities
have not reached a stage which permits a reasonable assessment of the existence of reserves.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Exploration and evaluation ("E&E")
assets are assessed for impairment only when facts and circumstances suggest that the carrying amount of an E&E asset may exceed
its recoverable amount and when the Group has sufficient information to reach a conclusion about technical feasibility and commercial
viability.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Industry-specific indicators for an impairment
review arise typically when one of the following circumstances applies:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Substantive expenditure on further exploration and evaluation activities is neither budgeted nor planned;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">title to the asset is compromised;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">adverse changes in the taxation and regulatory environment;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">adverse changes in variations in commodity prices and markets; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">variations in the exchange rate for the currency of operation.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Once the technical feasibility and commercial
viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable
to that area of interest are first tested for impairment and then reclassified to mining property and development assets within
property, plant and equipment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Recoverability of the carrying amount of
any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively, sale
of the respective assets.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(h)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Mineral property, plant and equipment</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Mineral property, plant and equipment are
carried at cost, less accumulated depreciation and accumulated impairment losses.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The cost of mineral property, plant and equipment
consists of the acquisition costs transferred from E&E assets, any costs directly attributable to bringing the asset to the
location and condition necessary for its intended use, including costs to further delineate the ore body, development and construction
costs, removal of overburden to initially expose the ore body, an initial estimate of the costs of dismantling, removing the item
and restoring the site on which it is located and, if applicable, borrowing costs.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Mineral property acquisition and development
costs are not currently depreciated as the Pebble Project is still in the development stage and no saleable minerals are being
produced.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">The cost of an item of plant
and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition
necessary for its intended use, and an initial estimate of the costs of dismantling and removing the item and restoring the site
on which it is located.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Depreciation is provided
at rates calculated to write off the cost of plant and equipment, less their estimated residual value, using the declining balance
method at various rates ranging from 20% to 30% per annum.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">An item of equipment is derecognized
upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising
on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset,
is recognized in profit or loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Where
an item of equipment consists of major components with different useful lives, the components are accounted for as separate items
of equipment. Expenditures incurred to replace a component of an item of equipment that is accounted for separately, including
major inspection and overhaul expenditures, are capitalized.<br style="clear: both" />
</font><font style="font: 1pt Times New Roman, Times, Serif"> </font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Residual values and estimated
useful lives are reviewed at least annually.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(i)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Impairment of Non-Financial Assets</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">At the end of each reporting period the
carrying amounts of the Group’s non-financial assets are reviewed to determine whether there is any indication that these
assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the
Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher
of fair value less costs of disposal and value in use. Fair value is determined as the amount that would be obtained from the sale
of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than
its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized
in loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash generating unit to which the asset belongs.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #1A171B">Where an impairment loss
subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable
amount. This increase in the carrying amount is limited to the carrying amount that would have been determined had no impairment
loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately
in profit or loss. The Group has not recorded any impairment charges in the years presented.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(j)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share Capital, Special Warrants, Warrants and Subscriptions for Shares</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Common shares ("shares"), special
warrants, warrants and subscriptions received for shares are classified as equity. Transaction costs directly attributable to the
issue of these instruments are recognized as a deduction from equity, net of any tax effects. Where units comprising of shares
and warrants are issued the proceeds and any transaction costs are apportioned between the shares and warrants according to their
relative fair values.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Upon conversion of special warrants and
warrants into shares and the issue of shares for subscriptions received, the carrying amount, net of a pro rata share of the transaction
costs, is transferred to share capital.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(k)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share-based Payment Transactions</i></font></td></tr>
</table>
<p style="font: 10pt/13pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4"><i>Equity-settled share-based
Option Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group operates an equity-settled share-based
option plan for its employees and service providers (note 6(d)). The fair value of share purchase options granted is recognized
as an employee or consultant expense with a corresponding increase in the <i>equity-settled share-based payments reserve</i> in
equity (the "Equity Reserve"). An individual is classified as an employee when the individual is an employee for legal
or tax purposes ("direct employee") or provides services similar to those performed by a direct employee.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt/13pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value is measured at grant
date for each tranche, which is expensed on a straight line basis over the vesting period, with a corresponding increase in the
Equity Reserve. The fair value of share purchase options granted is measured using the Black-Scholes option pricing model, taking
into account the terms and conditions upon which the share purchase options were granted and forfeiture rates as appropriate. At
the end of each reporting period, the amount recognized as an expense is adjusted to reflect the actual number of share purchase
options that are expected to vest.</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0"><font style="font: 13.5pt Times New Roman, Times, Serif"> </font><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"> </font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Deferred Share Unit (“DSU”)
Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group has a DSU plan for its non-executive
directors. The Group determines whether to account for DSUs as equity-settled or cash-settled based on the terms of the contractual
arrangement. The fair value of DSUs granted is recognized as an employee expense with a corresponding increase in the Equity Reserve
if deemed equity-settled or a liability is raised if cash-settled at grant date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The fair value is estimated using the TSX
quoted market price of the Company’s common shares at grant date and expensed over the vesting period as share-based compensation
in loss until they are fully vested. If the DSUs are cash-settled, the expense and liability are adjusted each reporting period
for changes in the TSX quoted market price of the Company’s common shares.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4"><i>Restricted Share Unit
(“RSU”) Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group has a RSU plan for its employees,
executive directors and eligible consultants of the Group. The Group determines whether to account for the RSUs as equity-settled
or cash-settled based on the terms of the contractual arrangement. The fair value of RSUs is recognized as an employee expense
with a corresponding increase in the Equity Reserve if deemed equity –settled or a liability is raised if cash settled at
grant date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The fair value is estimated using the number
of RSUs and the quoted market price of the Company’s common shares at the grant date. It is then expensed over the vesting
period with the credit recognized in equity in the Equity Reserve. If cash-settled, the expense and liability are adjusted each
reporting period for changes in the quoted market value of the Company’s common shares.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(l)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Income Taxes</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Income tax on the profit or loss for the
years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates
to items recognized in other comprehensive income or loss or directly in equity, in which case it is recognized in other comprehensive
income or loss or equity.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Current tax expense is the expected tax
payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments
to tax payable with regard to previous years.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Deferred tax is provided using the balance
sheet liability method, providing for unused tax loss carry forwards and temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences
are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent
that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner
of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted
at the end of the reporting period applicable to the period of expected realization or settlement.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">A deferred tax asset is recognized only
to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Additional income taxes that arise from
the distribution of dividends are recognized at the same time as the liability to pay the related dividend.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Deferred tax assets and liabilities are
offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate
to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on
a net basis.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(m)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Restoration, Rehabilitation, and Environmental Obligations</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.55pt"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.55pt">An obligation to incur
restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration or development
of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted
to their net present value, are provided for and capitalized at the start of each project to the carrying amount of the asset,
along with a corresponding liability as soon as the obligation to incur such costs arises. The timing of the actual rehabilitation
expenditure is dependent on a number of factors such as the life and nature of the asset, the operating license conditions and,
when applicable, the environment in which the mine operates.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Discount rates using a pre-tax rate that
reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over
the economic life of the related asset, through amortization using either the unit-of-production or the straight line method. The
corresponding liability is progressively increased as the effect of discounting unwinds, creating an expense recognized in loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Decommissioning costs are also adjusted
for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalized cost, except where a
reduction in costs is greater than the unamortized capitalized cost of the related assets, in which case the capitalized cost is
reduced to nil and the remaining adjustment is recognized in profit or loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The operations of the Group have been,
and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those
for site restoration costs. Both the likelihood of new regulations and their overall effect upon the Group are not predictable.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has no material restoration,
rehabilitation and environmental obligations as the disturbance to date is not significant. As a condition for the issue of the
Miscellaneous Land Use Permit at the Pebble Project, the Pebble Partnership has posted a bond with the Alaskan regulatory authorities
as a performance guarantee for any potential reclamation liability (note 5(b)).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(n)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Loss per Share</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group presents basic and diluted loss
per share information for its common shares, calculated by dividing the loss attributable to common shareholders of the Company
by the weighted average number of common shares and any fully prepaid special warrants outstanding during the year. Diluted loss
per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding
when the effect is anti-dilutive.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(o)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Segment Reporting</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group operates in a single reportable
operating segment – the acquisition, exploration and development of mineral properties. The Group’s core asset, the
Pebble Project, is located in Alaska, USA.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(p)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Significant Accounting Estimates and Judgments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="color: #1A171B">The preparation
of these Financial Statements requires management to make certain estimates, judgments and assumptions that affect the reported
amounts of assets and liabilities at the date of the Financial Statements and reported amounts of expenses during the reporting
period. Actual outcomes could differ from these estimates. These Financial Statements include estimates, which, by their nature,
are uncertain. The impacts of such estimates are pervasive throughout the Financial Statements</font>, and may require accounting
adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is
revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience,
current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Sources of estimation
uncertainty</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Significant assumptions about the future
and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a
material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions
made, relate to, but are not limited to, the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group uses the Black-Scholes option pricing model to calculate an estimate of the fair value of share purchase options and certain warrants granted during the year. In the case of share purchase options, the fair value calculated is used to determine share-based compensation that is included in loss for the year. With the warrants, the fair value calculated is used to value the warrant liabilities on the statement of financial position, with gains or losses being recognized in loss for the year. Inputs used in this model require subjective assumptions, including the expected price volatility from less than one year to five years. Changes in the subjective input assumptions can affect the fair value estimate. The weighted average assumptions applied are disclosed in Notes 6(d) and 7 respectively.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Significant assumptions about the future and other sources of estimation uncertainty are made in determining the provision for any deferred income tax expense that is included in the loss for the year and the composition of any deferred income tax liabilities included in the Statement of Financial Position.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Critical accounting judgments</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">These include:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">In terms of IFRS 6, <i>Exploration for and Evaluation of Mineral Resources, </i>management determined that there were no circumstance and facts that indicated that testing the Group’s mineral property interest (“MPI”) for impairment was necessary.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Pursuant to IAS 21, <i>The Effects of Changes in Foreign Exchange Rates</i> (“IAS 21”) in determining the functional currency of the parent and its subsidiaries, the Group used judgment in identifying the currency in which financing activities are denominated and the currency that mainly influences the cost of undertaking the business activities in each jurisdiction in which each entity operates.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group has employed judgement that going concern was an appropriate basis for the preparation of the Financial Statements, as the Group considered existing and future available financial resources in determining that such financial resources are able to meet key corporate and Pebble Project expenditure requirements for at least the next twelve months (note 1).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group used judgement in terms of accounting for leases in accordance with IFRS 16. IFRS 16 applies a control model to the identification of leases and the determination of whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a fixed period of time. In determining the appropriate lease term for a lease, the Group considered the right of either the lessee and lessor to terminate the lease without permission from the other party with no more than an insignificant penalty as well as whether the Group is reasonably certain to exercise the extension options on the contract.</font></td></tr>
</table>
<p style="font: 11pt/107% Calibri, Helvetica, Sans-Serif; margin: 0 0 8pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>3.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>MINERAL PROPERTY, PLANT AND EQUIPMENT</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group’s exploration and evaluation
assets are comprised of the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr>
<td style="vertical-align: top; padding-bottom: 1pt">
<p style="font: 10pt Cambria, Times, Serif; margin: 0; color: #0054A4"><b><i>Year ended December 31, 2019</i></b></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; color: #0054A4"> </p></td>
<td style="vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Mineral Property interest <sup>1</sup></b></font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Plant and <br />
equipment <sup>2</sup> </b></font></td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Cost</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,374</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,915</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Impact of IFRS 16 adoption (note 2(c))</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance as restated</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,528</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">115,069</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,018</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">115,559</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Accumulated depreciation</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation <sup>3</sup></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(647</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(647</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,615</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,615</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,766</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">157</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,923</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December 31, 2019</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">137,307</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,560</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">138,867</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt">
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"><i>Year ended December 31, 2018</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p></td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Mineral Property interest <sup>1</sup></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Plant and <br />
equipment</font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Total</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Cost</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,354</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,895</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">20</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">20</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">112,541</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,374</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">113,915</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Accumulated depreciation</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(734</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(734</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation <sup>4</sup></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(234</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(234</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(968</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,641</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">247</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,888</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December 31, 2018</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">144,182</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">653</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">144,835</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 70.85pt; text-align: justify; text-indent: -34.85pt">Notes to tables:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 70.85pt; text-align: justify; text-indent: -34.85pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Comprises the Pebble Project, a contiguous block of 2,402 mineral claims covering approximately 417 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Includes ROU Assets, which relate to the use of office space, hangers, yard storage, an office copier and one vehicle. The following reconciles ROU Assets for the year ended December 31, 2019:</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Land and <br />
Buildings</b></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Equipment</b></font></td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 49%"><font style="font: 10pt Cambria, Times, Serif">Beginning balance at January 1, 2019</font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 14%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,132</font></td>
<td style="width: 1%"> </td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">22</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Additions</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">459</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">31</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">490</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Ending balance</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,591</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">53</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,644</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Depreciation</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(411</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(9</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">     (420</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Foreign currency translation difference</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(63</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(64</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif"><b>Net carrying value – December  31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,117</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">43</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,160</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">ROU Asset depreciation of $224 is included in general and administrative expenses. The remainder is included in exploration and evaluation expenses.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Depreciation is included in exploration and evaluation expenses.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>4.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>AMOUNTS RECEIVABLE AND PREPAID EXPENSES</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: #DCE6F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="background-color: white; text-align: justify"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; text-align: justify"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td colspan="2" style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 47%; background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Sales tax receivable</font></td>
<td style="width: 2%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 14%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 2%; background-color: white"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 15%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">            177</font></td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 1%; background-color: white"> </td>
<td style="width: 1%; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 13%; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">          69</font></td>
<td style="width: 1%; background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">239</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">769</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="background-color: white; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Prepaid expenses</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">498</font></td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white"> </td>
<td style="background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">549</font></td>
<td style="background-color: white"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; background-color: white; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">914</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td>
<td style="border-bottom: black 2.25pt double; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,387</font></td>
<td style="border-bottom: black 2.25pt double; background-color: white"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>5.</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>CASH AND CASH EQUIVALENTS AND RESTRICTED CASH</b></font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Cash and Cash Equivalents</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group’s cash and cash equivalents
at December 31, 2019 and 2018, consisted of cash on hand and was invested in business and savings accounts.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4"><i>Supplementary cash flow
information</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Non-cash investing and financing activities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 6pt 0.5in; text-align: justify">In the year ended December 31, 2019:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">111,086 common shares were issued to settle the payout of restricted share units (note 6(f)). </font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Share purchase warrants were issued as part of the financing fee paid to the underwriters in the June bought deal financing (note 6(b)).</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">No additional consideration was received by the Group on the conversion of special warrants into shares (note6(b)).  </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 6pt 0.5in; text-align: justify">In the year ended December 31, 2018:</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">434,742 common shares were issued to settle the payout of vested RSUs (note 6(f)). </font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">In the special warrant financing in December 2018, a cheque received for $249 for the purchase of 300,000 special warrants was only deposited after the reporting period on January 7, 2019.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.25in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Restricted cash</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has cash deposited with a United
States financial institution that has been pledged as collateral to the surety provider for the surety bond accepted by the Alaskan
regulatory authorities in 2018 (see below). The cash deposit will be released once any reclamation work required has been performed
and assessed by the Alaskan regulatory authorities. The cash is invested in a money market fund. For the year ended December 31,
2019, income of $15 (2018 – $8) respectively, has been recognized which has been re-invested.  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">During the year ended December 31, 2018,
the Group posted a bond of US$2,000 with the Alaskan regulatory authorities for a performance guarantee related to any potential
reclamation liability as a condition of the Miscellaneous Land Use Permit granted to the Pebble Partnership for its ongoing activities
on the Pebble Project.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>9.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>RELATED PARTY BALANCES AND TRANSACTIONS</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 17.3pt">The components of transactions
to related parties are as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Payables to related parties</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">Key management personnel (a)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">971</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">104</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">Hunter Dickinson Services Inc. (b)</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">124</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">401</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt"><font style="font: 10pt Cambria, Times, Serif">RSU liability</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">80</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total payables</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,095</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">585</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Balances and transactions between the Company
and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation (note 2(d)). Details between
the Group and other related parties are disclosed below:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Transactions and Balances with Key Management Personnel ("KMP")</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The aggregate value of transactions with
KMP, being the Group’s directors, Chief Financial Officer ("CFO"), Company Secretary, Executive Vice President ("EVP"),
Environment and Sustainability, Vice President ("VP"), Corporate Communications, VP, Engineering and VP, Public Affairs,
and Pebble Partnership ("PLP") senior management including the Chief Executive Officer ("PLP CEO"), Executive VP
("EVP"), Public Affairs, Senior VP ("SVP"), Corporate Affairs, SVP Engineering, VP, Permitting, Chief of Staff
and Chair of Pebble Mines Corp ("PMC Chair"), was as follows for each of the years ended December 31:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Compensation</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 14.45pt; text-indent: -7.05pt"><font style="font: 10pt Cambria, Times, Serif">Amounts paid and payable to HDSI for services of KMP employed<br />
by HDSI <sup>1</sup></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,430</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,595</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Amounts paid and payable to KMP <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4,443</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,991</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Bonuses paid to KMP <sup>3</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,053</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,430</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Interest payable on loans received from KMP <sup>5</sup></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt; text-indent: -7.1pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,930</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">8,016</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 7.1pt; text-indent: 0.3pt"><font style="font: 10pt Cambria, Times, Serif">Share-based compensation <sup>4</sup></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,736</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,681</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total compensation</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,666</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">11,697</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Notes to table:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through Hunter Dickinson Services Inc. ("HDSI") (refer (b)). </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the PLP CEO, PMC Chair and PLP EVP, SVPs, VP and Chief of Staff. The SVP Engineering is employed by the Group through a wholly-owned US subsidiary of HDSI ("HDUS"). The Group reimburses HDUS for costs incurred. </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; text-align: justify"> </td>
<td style="width: 2%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="width: 93%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">In 2019, incentive bonuses were paid to the CFO, EVP, Environment and Sustainability, VP, Corporate Communications, SVP, Engineering, VP, Permitting, PLP CEO, the Company Secretary, and a performance bonus was paid to the PLP CEO for the 2018 fiscal year. In 2018, incentive bonuses were paid to the SVP, Environment and Sustainability, VP, Corporate Communications and VP, Permitting, and a performance bonus was paid to the PLP CEO for the 2017 fiscal year. </font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Represents cost of RSUs and share purchase options issued and/or vesting during the respective periods. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">5.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group’s Board Chair and CEO advanced $967 to the Group pursuant to the Credit Facility (note 8) and have accrued interest of $4 to December 31, 2019. Subsequent to the reporting period, these loans including interest earned to date were repaid (note 17). </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>RSUs</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">During the year ended December 31, 2019,
the Group settled vested KMP RSUs by issuing 111,086 (2018 – 434,742) common shares (note 6(f)).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Options</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">During the year ended December 31, 2019,
125,000 KMP incentive options with an exercise price of $0.49 per option and an expiry date of July 11, 2021 and 200,000 KMP incentive
options with an exercise price of $0.72 per option and an expiry date of September 15, 2019, were exercised at a weighted average
market share price on exercise of $0.91 for proceeds to the Group of $205. No KMP options were exercised in 2018.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Transactions and Balances with other Related Parties</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Hunter Dickinson Services Inc. is a private
company that provides geological, engineering, environmental, corporate development, financial, administrative and management services
to the Group and its subsidiaries at annually set rates pursuant to a management services agreement. The annually set rates also
include a component of overhead costs such as office rent, information technology services and general administrative support services.
HDSI also incurs third party costs on behalf of the Group, which are reimbursed by the Group at cost. Several directors and other
key management personnel of HDSI, who are close business associates, are also key management personnel of the Group.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For the year ended December 31, 2019, and
2018, the aggregate value of transactions were as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Services rendered by HDSI:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Technical</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Engineering</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,018</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,199</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Environmental</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">459</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">706</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Socioeconomic</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">429</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">462</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Other technical services</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">154</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">316</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-indent: 2.6pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,060</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,683</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">General and administrative</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 22.4pt; text-indent: -14.15pt"><font style="font: 10pt Cambria, Times, Serif">Management, corporate communications, secretarial, financial and administration</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,292</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,326</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.65pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Shareholder communication</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">594</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">627</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-indent: 2.6pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,886</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,953</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total for services rendered</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4,946</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,636</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 8.25pt; text-indent: -8.25pt"><font style="font: 10pt Cambria, Times, Serif"><b>Reimbursement of third party expenses</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Conferences and travel</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">393</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">502</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Insurance</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">50</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">70</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Office supplies and information technology</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">431</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">319</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total reimbursed</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">874</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">891</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total value of transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,820</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,527</font></td>
<td style="padding-bottom: 1.5pt"></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>10.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>TRADE AND OTHER PAYABLES</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Falling due within the year</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Trade <sup>1</sup></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">12,401</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,935</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">286</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">12,687</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,935</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Non-current liabilities</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Trade <sup>1</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,194</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">934</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">934</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,194</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Notes:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; text-align: justify"> </td>
<td style="width: 3%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="width: 92%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">At December 31, 2019, trade payables in current liabilities includes legal fees due to legal counsel of US$5,274, which was previously due January 31, 2020 but has been extended to December 24, 2020 (note 17(c)), and US$635 payable on completion of a partnering transaction. The former legal fees were included in non-current liabilities at December 31, 2018.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Lease liabilities relate to lease of offices, site hangers, yard storage, an office copier and one vehicle, which have remaining lease terms of 4 to 125 months and interest rates of 7.5% – 10.5% over the term of the leases. During the year ended December 31, 2019, the Group recognized $120 in interest expense on lease liabilities, which is included in finance expense in the loss for the year.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following table provides the schedule
of undiscounted lease liabilities as at December 31, 2019:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">Total</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%"><font style="font: 10pt Cambria, Times, Serif">Less than one year</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">391</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">One to five years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">884</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Later than 5 years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Total undiscounted lease liabilities</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,618</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group had $158 in short-term lease commitments
of less than a year relating to property leases as at January 1, 2019. During the year ended December 31, 2019, the Group incurred
further short-term lease commitments of $206 and expensed $264.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>11.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>BASIC AND DILUTED LOSS PER SHARE</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The calculation of basic and diluted loss
per share for the year ended December 31, 2019 and 2018 was based on the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Loss attributable to common shareholders</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">69,193</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">15,957</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Weighted average number of shares outstanding (000s)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">358,343</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">312,265</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Basic and diluted loss per share excludes
the effect of 25,752,266 (2018 – 24,606,732) employee share purchase options outstanding, 31,306,275 (2018 – 31,366,800)
non-employee share purchase options and warrants, 458,129 DSUs and nil (2018 – 196,753) RSUs, as they are anti-dilutive.
In 2018, the weighted average number of shares outstanding included the special warrants issued in December 2018 (note 6(b)).</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>12.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>EMPLOYMENT COSTS</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">During the year ended December 31, 2019,
the Group recorded $15,648 (2018 – $17,168) in salaries and benefits, including share-based payments of $3,970 (2018 –
$4,734) and amounts paid to HDSI for services provided to the Group by HDSI personnel (note 9(b)).</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>14.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>INCOME TAX EXPENSE</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td colspan="5" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31</font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: black 1pt solid; background-color: #DBE5F1"> </td>
<td style="border-bottom: black 1pt solid; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="border-bottom: black 1pt solid; background-color: #DCE6F1"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid"> </td>
<td style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="border-bottom: black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Current tax (recovery) expense</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DCE6F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DCE6F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-bottom: 1.5pt; padding-left: 6.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current year (recovery) expense</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%; background-color: #DCE6F1; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current income tax (recovery) expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DCE6F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DCE6F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Deferred income tax (recovery) expense</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DCE6F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-align: justify"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DCE6F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 6.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Current year (recovery) expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DCE6F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Deferred income tax (recovery) expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DCE6F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="6" style="border-bottom: black 1pt solid; text-align: center"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31</font></td>
<td style="border-bottom: black 1pt solid; padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Reconciliation of effective tax rate</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Net loss</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(69,193</font></td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(15,957</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Total income tax (recovery) expense</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Loss excluding income tax</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(69,193</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(15,957</font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Income tax recovery using the Company's domestic tax rate</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(18,682</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(4,308</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Non-deductible expenses and other</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,375</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,175</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Change in tax rates</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">Deferred income tax assets not recognized</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">17,307</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,483</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Company's domestic tax rate for the
year was 27% (2018 – 27%).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt"><font style="font: 10pt Cambria, Times, Serif"><b>Deferred income tax assets (liabilities)</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Tax losses</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">                 2,342</font></td>
<td style="width: 1%; background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,140</font></td>
<td style="width: 1%; padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Net deferred income tax assets</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,342</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,140</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Resource property/investment in Pebble Partnership</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,342</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,140</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Equipment</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif"><b>Net deferred income tax liability</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: red"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group had the following temporary differences
at December 31, 2019 in respect of which no deferred tax asset has been recognized:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">Resource</font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Expiry</b></font></td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Tax losses</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">pools</font></td>
<td style="padding-bottom: 1pt"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="padding-bottom: 1pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Other</font></td>
<td style="padding-bottom: 1pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Within one year</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">                   –</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 58%; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">One to five years</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,159</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">After five years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">238,056</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">No expiry date</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">93,512</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">65</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">238,056</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">93,512</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,224</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has taxable temporary differences
in relation to investments in foreign subsidiaries or branches of $8.2 million (2018 – $7.5 million) which has not been
recognized because the Group controls the reversal of liabilities and it is expected it will not reverse in the foreseeable future.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>15.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>FINANCIAL RISK MANAGEMENT</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group is exposed in varying degrees
to a variety of financial instrument related risks. The Board approves and monitors the risk management processes, inclusive of
documented investment policies, counterparty limits, and controlling and reporting structures. The type of risk exposure and the
way in which such exposure is managed is provided as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Credit Risk</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Credit risk is the risk of potential loss
to the Group if a counterparty to a financial instrument fails to meet its contractual obligations. The Group’s credit risk
is primarily attributable to its liquid financial assets, including cash and cash equivalents, restricted cash and amounts receivable.
The Group limits the exposure to credit risk by only investing its cash and cash equivalents and restricted cash with high-credit
quality financial institutions in business and saving accounts, guaranteed investment certificates, in government treasury bills,
low risk corporate bonds and money market funds which are available on demand by the Group when required. Amounts receivable (note
4) include receivable balances with government agencies and refundable deposits. The following is the Group’s maximum exposure:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Exposure</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">239</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">769</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Restricted cash</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">851</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">830</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Cash and cash equivalents</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,038</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,872</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total exposure</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">15,128</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">16,471</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Liquidity Risk</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Liquidity risk is the risk that the Group
will not be able to meet its financial obligations when they become due. The Group ensures, as far as reasonably possible, it will
have sufficient capital in order to meet short to medium term business requirements, after taking into account cash flows from
operations and the Group’s holdings of cash and cash equivalents and restricted cash, where applicable. The Group however,
has noted material uncertainty that raises substantial doubt about the Group’s ability to continue as a going concern (note
1). The Group’s cash and cash equivalents at the reporting date were invested in business and savings accounts (note 5(a)).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group’s financial liabilities
are comprised of current trade and other payables (note 10) and payables to related parties (note 9), which are due for payment
within 12 months from the reporting date, and non-current trade payables, which are due for payment more than 12 months from the
reporting date. The carrying amounts of the Group’s financial liabilities represent the Group’s contractual obligations.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(e)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Foreign Exchange Risk</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Company is subject to both currency
transaction risk and currency translation risk: the Pebble Partnership, Pebble Services Inc. and U5 Resources Inc. have the US
dollar as functional currency, and certain of the Company’s corporate expenses are incurred in US dollars. The operating
results and financial position of the Group are reported in Canadian dollars in the Group’s consolidated financial statements.
As a result, the fluctuation of the US dollar in relation to the Canadian dollar will have an impact upon the losses incurred by
the Group as well as the value of the Group’s assets and the amount of shareholders’ equity.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has not entered into any agreements
or purchased any instruments to hedge possible currency risks.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">The exposure of the Group's US dollar- denominated
financial assets and liabilities to foreign exchange risk is as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Financial assets:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Amounts receivable</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">263</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">627</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 0.1in"><font style="font: 10pt Cambria, Times, Serif">Cash and cash equivalents and restricted cash</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,090</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,523</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14,353</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">11,150</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Financial liabilities:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Non-current trade payables</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(932</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(7,194</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Warrant liabilities</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(43</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Current trade and other payables</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(12,426</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(5,834</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Payables to related parties</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(24</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(146</font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 7.1pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(13,425</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(13,174</font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">Net financial liabilities exposed to foreign currency risk</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(928</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(2,024</font></td>
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-indent: 35.45pt"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Based on the above net exposures and assuming
that all other variables remain constant, a 10% change in the value of the Canadian dollar relative to the US dollar would result
in a gain or loss of $93 (2018 – $202) in the year. This sensitivity analysis includes only outstanding foreign currency
denominated monetary items.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(f)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Interest Rate Risk</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group is subject to interest rate cash
flow risk with respect to its investments in cash and cash equivalents. The Group’s policy is to invest cash at fixed rates
of interest and cash reserves are to be maintained in cash and cash equivalents or short-term low risk investments in order to
maintain liquidity, while achieving a satisfactory return for shareholders. Fluctuations in interest rates when cash and cash equivalents
mature impact interest income earned.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">Assuming that all other variables remain
constant, a 100 basis points change representing a 1% increase or decrease in interest rates would have resulted in a decrease
or increase in loss of $145 (2018 – $174).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(g)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Capital Management </i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group's policy is to maintain a strong
capital base to maintain investor and creditor confidence and to sustain future development of the business. The capital structure
of the Group consists of equity, comprising share capital and reserves, net of accumulated deficit. There were no changes in the
Group's approach to capital management during the year. The Group is not subject to any externally imposed capital requirements.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(h)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Fair Value</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value of the Group’s financial
assets and liabilities approximates the carrying amount.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Financial instruments measured at fair
value are classified into one of three levels in the fair value hierarchy according to the relative reliability of the inputs used
to estimate the fair values. The three levels of the fair value hierarchy are:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">•</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">•</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Level 2 – Inputs other than quoted prices that are observable for the asset or liability either directly or indirectly; and</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">•</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Level 3 – Inputs that are not based on observable market data.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value hierarchy gives the highest
priority to Level 1 inputs and the lowest priority to Level 3 inputs. Fair value measurements which are determined by using valuation
techniques are classified in their entirety as either Level 2 or Level 3 based on the lowest level input that is significant to
the measurement.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value measurement of the warrant
liabilities (note 7) until their expiry are categorized within Level 2 of the hierarchy as it is exposed to market risk as they
employ the quoted market price of shares and foreign exchange rates.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>16.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>COMMITMENTS AND CONTINGENCIES</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Legal Proceedings</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On February 14, 2017, short seller investment
firm Kerrisdale Capital Management LLC published a negative piece (the "Kerrisdale Report") regarding the Pebble Project.
Three putative shareholder class actions were filed against the Company and certain of its current officers and directors in US
federal courts, specifically the Central District of California (Los Angeles) and the Southern District of New York (New York City).
The cases are captioned: <i>Diaz v. Northern Dynasty Minerals Ltd. et al, Case No. 17-cv-01241 (C.D. Cal.), Kirwin v. Northern
Dynasty Minerals Ltd. et al</i>, <i>Case No. 17-cv-01238 (S.D.N.Y.) </i>and <i>Schubert v. Northern Dynasty Minerals, Ltd., et
al., Case No. 1:17-CV-02437 (S.D.N.Y.)</i>. The complaints relied on the claims made in the Kerrisdale Report and alleged damages
to a class of investors who purchased shares of the Company prior to the publication of the Kerrisdale Report and allege liability
for losses pursuant to Section 10(b) of the Exchange Act of 1934 and SEC Rule 10b-5 thereunder, as well as control person liability
against the individual defendants pursuant to Section 20(a) of the Exchange Act.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The plaintiffs in both the <i>Kirwin</i>
and <i>Schubert</i> actions voluntarily dismissed their claims without prejudice. The plaintiffs in the <i>Diaz</i> action continued
to litigate and filed an amended complaint. The Company filed a motion to dismiss the amended complaint in the <i>Diaz </i>action,
which the plaintiffs opposed. In April 2018, the United States District Court for the Central District of California (the "California
District Court") granted the Company’s motion and dismissed the plaintiffs’ amended complaint in full, noting that
its reliance on the sources in the Kerrisdale Report was an insufficient basis to allege securities fraud. The Court allowed the
plaintiffs an opportunity to amend their complaint, which they did in June 2018. The Company again moved to dismiss the new complaint,
and briefing on the motion concluded in November 2018.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On February 22, 2019, the California District
Court again dismissed all of the securities class action claims brought against the Company and certain of its officers and directors
in the <i>Diaz</i> action, this time without leave to amend. The Court ruled in favor of the Company and its officers and directors
on all claims and ordered the case closed.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">In March 2019, the <i>Diaz</i> plaintiffs
filed notice of an appeal of the district court’s dismissal order, and their appeal was filed with the Ninth Circuit Court
of Appeals, in California, in June 2019. The Company filed its response in August 2019 and the plaintiffs submitted their reply
in October 2019, closing the briefing before the appellate court. The appeal will be reviewed <i>de novo</i>, meaning that no deference
will be given to the earlier lower court rulings. A hearing on the appeal is scheduled for May 2020. Given the nature of the claims
on appeal, it is not currently possible for the Company to predict the outcome nor practical to determine their possible financial
effect until their ultimate resolution. The Company intends to continue defending itself vigorously in this action.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Short-term lease commitments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.25in; text-align: justify; text-indent: 17.45pt"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">As of December 31, 2019, the Group has $93
in short-term lease commitments. These leases have fixed monthly payments for the remaining term.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 17.85pt"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Right-of-Way Annual Payment Commitments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">With the signing of Right-of-Way Agreements
("ROW Agreements") in November 2018 and May 2019, with the Alaska Peninsula Corporation ("APC") and Iliamna Natives
Limited ("INL") respectively, the Group secured the right to use defined portions of APC and INL lands for the construction
and operation of transportation infrastructure to access the Pebble Project site. Pursuant to the ROW Agreements, the Group issued
the required notice to APC and INL in November 2019, as to which defined portions of APC and INL lands that it requires the rights
for access in 2020 and as such has a commitment for the annual toll payments due in 2020.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Pipeline Right-of-Way Bond Commitment</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group posted a bond of US$300 with
the Alaskan regulatory authorities for a performance guarantee related to any potential reclamation liability as a condition for
a pipeline right-of-way to a subsidiary of the Pebble Partnership, the Pebble Pipeline Corporation. The Group is liable to the
surety provider for any funds drawn by the Alaskan regulatory authorities.</p>
2402
417 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.
417 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.
Unlimited
Unlimited
1
0.075
0.06
0.06
0.06
48751000
37500000
1.00
0.10
458129
458129
1185666
800499
11000
39500
33500
25333
650666
7500
33000
125000
39000
30000
81000
856666
54000
617000
477000
6000
31000
24000
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>13.</b></font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>OTHER INCOME ITEMS</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Non-Refundable Early Option Price Installment ("Early Option Price Installment")</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">In December 2017, on entering a framework
agreement with First Quantum Minerals Ltd. ("First Quantum"), the Group received a non-refundable early option payment
of US$37,500 ($48,751) ("non-refundable early option price installment"), which was to be applied solely for the purpose
of progressing with permitting of the Pebble Project. The framework agreement, which contemplated that an affiliate of First Quantum
would execute an option agreement to earn a 50% interest in the Pebble Partnership, was terminated in May 2018, as the Group and
First Quantum were unable to reach an agreement on the option and partnership transaction as contemplated therein. Accordingly,
the Group recorded the non-refundable early option price installment as income in the statement of comprehensive loss for the year
ended December 31, 2018.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Sale of Royalty</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">During the year ended December 31, 2018,
the Group completed the sale of a net proceeds interest royalty held by the Group on a non-core property, and which was carried
at a nominal value, to a third party for proceeds net of withholding taxes of US$24 ($31). Pursuant to the transaction, the Group
received accrued and outstanding royalty income of US$477 ($617).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">During the year ended December 31, 2019,
the Group received $6 for an over deduction in withholding taxes.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>17.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>EVENTS AFTER THE REPORTING DATE</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Private Placement</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On January 17, 2020, the Group closed a
private placement, which was announced in December 2019 as a concurrent financing with the bought deal offering (note 6(b)), of
11,346,783 shares at a price of $0.49 (US$0.37) per share for gross proceeds of approximately $5.6 million (US$4.2 million). Pursuant
to this private placement, the Group received subscriptions for 1,426,500 shares (note 6(b)) in December 2019. Further to this
private placement, the Group placed an additional 1,640,000 shares for gross proceeds to the Group of $804.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Repayment of Loans Payable</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">In January and February 2020, the Group
repaid the Credit Facility (note 8) including interest accrued to the date of payment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Extension of Repayment Term for Legal Fees Payable</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Effective January, 31, 2020, pursuant to
an amendment agreement, the Group’s US legal counsel have agreed to extend the payment due date for legal fees payable (note
10) to December 24, 2020. In consideration for the extension, until the payment of the fees, interest will accrue at 3.5% per annum
from the date of this amendment until payment of the outstanding amount.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Impact of the Novel Coronavirus ("COVID-19")</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The current outbreak of COVID-19, and
any future emergence and spread of similar pathogens, could have a material adverse effect on global and local economic and business
conditions which may adversely impact our business and results of operations and the operations of contractors and service providers.
The outbreak has now spread to the United States and Canada where we conduct our principal business operations. Our plans to advance
the development of the Pebble Project are dependent upon the continued progress of our approval and permitting process with the
USACE, the EPA and Alaskan state agencies, as well as our ability to continue the work required in connection with this process
through our employees and our contractors. While we have not been notified of any delay, it is possible that government efforts
to curtail the COVID-19 outbreak will result in delays in our permitting process, including a possible delay in the release by
the USACE of their Final EIS and the progress through to a Record of Decision. In addition, our personnel may be delayed in completing
the required work that we are pursuing in connection with this process due to quarantine, self-isolation, social distancing, restrictions
on travel, restrictions on meetings and work from home requirements. The extent to which the coronavirus impacts our operations
will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration
of the outbreak, new information that may emerge concerning the severity of the coronavirus and the actions taken to contain the
coronavirus or treat its impact, among others. Moreover, the spread of the coronavirus globally is expected to have a material
adverse effect on global and regional economies and to continue to negatively impact stock markets, including the trading price
of our shares. These adverse effects on the economy, the stock market and our share price could adversely impact our ability to
raise capital, with the result that our ability to pursue development of the Pebble Project could be adversely impacted, both
through delays and through increased costs. Any of these developments, and others, could have a material adverse effect on our
business and results of operations and could delay our plans for development of the Pebble Project.</p>
249000
300000
3769476000
10150322000
11346783000
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27934000
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0.91
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25752266
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31306275
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8200000
7500000
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2175000
17307000
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145000
174000
239000
769000
263000
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14090000
10523000
14353000
11150000
1154000
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0.37
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57811000
4200000
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0.95
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139672000
145665000
914000
1387000
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16259000
154624000
161924000
587448000
517327000
107163000
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934000
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154624000
161924000
1360000
43000
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9365000
8652000
68765000
66214000
13000
669000
48097000
69193000
15957000
-6321000
10752000
0.19
0.05
134000
647000
234000
237000
684000
-48097000
3970000
4734000
125000
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-3496000
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20000
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220000
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8175000
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63832000
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572000
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8061000
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6000
31000
14000
5326000
150000
2000
232000
354000
6000
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>7.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>WARRANT LIABILITIES</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Broker Warrants (note 6(c)) which were
issued pursuant to the June 2019 public offering (note 6(b)), have a US dollar exercise price, which is not the functional currency
of the Group, and as a result have been treated as cash-settled warrant liabilities. The warrant liabilities were recognized at
fair value on date of issue as a financing cost with subsequent changes in fair value recognized in loss. The following table reconciles
the change in fair value of the warrant liabilities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31<br />
2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31<br />
2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">           –</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%"><font style="font: 10pt Cambria, Times, Serif">Fair value on issue – financing cost</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">50</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Fair value gain on revaluation</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(7</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Ending balance</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">43</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value at December 31, 2019 was
estimated using the Black-Scholes option-pricing model with the following assumptions:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; width: 73%"><font style="font: 10pt Cambria, Times, Serif"><b>Assumptions</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="vertical-align: top; width: 10%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="vertical-align: top; width: 1%; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.57%</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected volatility <sup>1</sup></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">105.90%</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected life</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.50 years</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Share price on valuation date</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.56</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Note</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Expected volatility is based on the historical and implied volatility of the Company’s share price on the TSX.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><b>8.</b></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>LOANS PAYABLE</b></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31 2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31 2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Loans provided - principal</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,317</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">           –</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Accrued interest</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Transferred to payables to related parties (note 9)</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(971</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,360</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">In November 2019, the Group entered into
an unsecured non-revolving term loan credit facility agreement (the "Credit Facility") with a syndicate of lenders (the
"Lenders"), two of whom are related parties, of up to $3,500. Funds advanced by the Lenders bear interest at 10% per annum,
payable on repayment thereof. The funds including interest are to be repaid on a date that is the earlier of i) May 25, 2020 and
ii) the date the Group has completed one or more equity or debt financings raising an aggregate of US$20,000. Pursuant to the terms
of the Credit Facility, the Group may submit a drawdown request to the Lenders for a minimum of $500 per drawdown at any time until
the repayment date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">As consideration for entering into the
Credit Facility, the Group issued to the Lenders, on a pro rata basis, 466,666 share purchase warrants, each warrant exercisable
into one share at the exercise price of $0.75 per share until December 2, 2021, of which 153,333 warrants were issued to the two
related parties.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">As of December 31, 2019, the Group had
drawn $2,317 from the Credit Facility, of which $967 was received from the two related parties. Accrued interest, which includes
$4 owed to the two related parties, has been included in the finance expense in the loss for the year.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Subsequent to December 31, 2019, the Company
repaid the loans and accrued interest (note 17).</p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The following table reconciles the Group’s
operating lease commitments at December 31, 2018, as previously disclosed in the 2018 annual financial statements, to the lease
liabilities recognized on initial application of IFRS 16 as at January 1, 2019:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Adoption <br />
 of IFRS 16</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 86%"><font style="font: 10pt Cambria, Times, Serif"><b>Operating lease commitments as at December 31, 2018</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,284</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Adjustments on adoption of IFRS 16</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">235</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Operating lease commitments – December 31, 2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,519</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">IFRS 16 recognition exemption for short-term leases (note 14(b))</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(158</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Effect from discounting using the incremental borrowing rate – January 1, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(207</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">389</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Non-current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">765</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31<br />
2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31<br />
2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">           –</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%"><font style="font: 10pt Cambria, Times, Serif">Fair value on issue – financing cost</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">50</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Fair value gain on revaluation</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(7</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Ending balance</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">43</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value at December 31, 2019 was
estimated using the Black-Scholes option-pricing model with the following assumptions:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr>
<td style="vertical-align: bottom; width: 73%"><font style="font: 10pt Cambria, Times, Serif"><b>Assumptions</b></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="vertical-align: top; width: 10%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="vertical-align: top; width: 1%; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Risk-free interest rate</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.57%</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected volatility <sup>1</sup></font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">105.90%</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected life</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.50 years</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Share price on valuation date</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.56</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
<tr>
<td style="vertical-align: bottom"><font style="font: 10pt Cambria, Times, Serif">Expected dividend yield</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="vertical-align: top; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="vertical-align: top; background-color: #DBE5F1"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Note</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Expected volatility is based on the historical and implied volatility of the Company’s share price on the TSX.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31 2019</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31 2018</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Loans provided - principal</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,317</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">           –</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Accrued interest</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">14</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Transferred to payables to related parties (note 9)</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(971</font></td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,360</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
7911000
233000
1154000
0.10
1519000
1284000
1154000
235000
-158000
-207000
389000
765000
313417856
308237856
308237856
422942680
-15000
15000
52435000
52435000
641000
408000
408000
641000
800499
1185666
110000
2248000
2248000
110000
3944759
200075
52000
322000
322000
174000
-122000
434742
111086
-7000
-7000
210000
-210000
835000
-835000
3927000
4751000
4751000
3927000
8192000
8192000
40000
40000
104450
618000
-593000
-25000
87477084
8192000
-8192000
10150322
7911000
7911000
10296141
693000
693000
224000
No
0.37
0.75
0.41
0.64
15531000
20561000
15318000
11500000
6594000
5002000
15337000
11500000
5000000
41975000
15333334
12200000
17968750
18652000
14103000
5776000
13954000
3103000
1426500
699000
2866665
3660000
2844000
2150000
1500000
244000
1975
0.41
2020-06-24
0.0145
0.729
P1Y
0.61
0.86
0.64
3242000
2412000
On the settlement of the cash-settled RSUs, the RSU liability was reduced to $nil with $58 transferred to share capital for shares issued with the remainder remitted to the tax authorities.
31772941
41517122
35311559
710666
10150322
-10454847
-3944759
0.38
0.38
0.55
0.55
0.65
0.65
0.64
0.63
0.41
0.41
P2Y4M24D
P2Y5M20D
P0Y6M7D
P1Y6M7D
P1Y5M12D
P2Y5M9D
P0Y3M29D
P0Y
P0Y5M23D
P0Y
P1Y3M29D
P2Y3M29D
24606732
19847431
6610500
5635000
-4235000
-18500
-1185666
-800499
-10700
-32500
-33600
-24200
25752266
24606732
196753
506495
-434742
1.27
2.24
0.68
58886
The year ended December 31, 2019, 71,752 RSUs, being the second and third tranches of 107,629 equity-settled RSUs that were granted in September 2017, were settled by issuing 52,200 shares, with the balance of 19,553 RSUs being withheld to pay tax obligations.
3500000
The funds including interest are to be repaid on a date that is the earlier of i) May 25, 2020 and ii) the date the Group has completed one or more equity or debt financings raising an aggregate of US$20,000. Pursuant to the terms of the Credit Facility, the Group may submit a drawdown request to the Lenders for a minimum of $500 per drawdown at any time until the repayment date.
500000
466666
2021-07-11
2021-12-02
2019-09-15
153333
2317000
967000
4000
4000
2317000
14000
-971000
111086
434742
4946000
5636000
393000
502000
50000
70000
431000
319000
874000
891000
5820000
6527000
1018000
1199000
459000
706000
429000
462000
154000
316000
2060000
2683000
2292000
2326000
594000
627000
2886000
2953000
967000
206000
158000
264000
391000
884000
343000
1618000
69193000
15957000
358343000
312265000
15648000
17168000
2342000
2140000
2342000
2140000
238056000
238056000
93512000
93512000
6159000
65000
6224000
15128000
16471000
-13425000
-13174000
-928000
-2024000
93000
300000
1426500
1640000
0.035
true
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>6.</b></font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>CAPITAL AND RESERVES</b></font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(a)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Authorized Share Capital</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">At December 31, 2019, the authorized share
capital comprised an unlimited (2018 – unlimited) number of common shares (“shares”) with no par value.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Financings </i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>December 2019</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Bought Deal</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a bought deal offering
of 41,975,000 Shares at US$0.37 per share for gross proceeds of US$15,531 ($20,561). The Group incurred transaction costs of $1,909,
which includes a 7.5% commission paid to the underwriters, and raised net proceeds of $18,652.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Subscriptions Received
for Private Placement</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">With the offering discussed above, a concurrent
private placement of up to US$5,000 was also announced. The Group received subscriptions for 1,426,500 shares in the private placement
totalling $699. The private placement was only closed after the reporting period (note 17(a)). To December 31, 2019, transaction
costs of $6 were incurred.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>August 2019</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Bought Deal</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a bought deal offering
of 15,333,334 Shares at US$0.75 per share for gross proceeds of US$11,500 ($15,318). The Group incurred transaction costs of $1,215,
which includes a 6% commission paid to the underwriters, and raised net proceeds of $14,103.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Private Placement</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a non-brokered private
placement to investors of 2,866,665 shares for gross proceeds of approximately US$2,150 ($2,844). No commission or finder’s
fee were payable to the underwriters in connection to this private placement. After transaction costs of $7, the Group raised net
proceeds of $2,837.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>June 2019</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i> </i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Bought Deal</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a bought deal offering
of 12,200,000 shares at US$0.41 per share for gross proceeds of US$5,002 ($6,594). The Group paid the underwriters a 6% commission
and issued 244,000 non-transferable share purchase warrants ("Broker Warrants") to purchase shares at US$0.41 per share
until June 24, 2020. After transaction costs of $818, which excludes the estimate for the cost of the Broker Warrants (see below),
the Group raised net proceeds of $5,776.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">As the Broker Warrants are denominated in
US dollars, they have been treated as cash-settled warrant liabilities (note 7) and were valued at $50 upon initial recognition
using the Black Scholes option pricing model based on the following assumptions: risk free rate of 1.45%, expected volatility of
72.9%, expected life of 1 year, share price of Cdn$0.61 and dividend yield of nil. The equivalent amount has been recognized as
a financing cost.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Private Placement</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a non-brokered private
placement to investors of 3,660,000 shares for a gross proceeds of approximately US$1,500 ($1,975). No commission or finder’s
fee were payable to the underwriters in connection to this private placement. After transaction costs of $4, the Group raised net
proceeds of $1,971.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>March 2019</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i> </i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Bought Deal</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a bought deal offering
of 17,968,750 shares at US$0.64 per share for gross proceeds of US$11,500 ($15,337). The Group incurred transaction costs of $1,383,
which includes a 6% commission paid to the underwriters, and raised net proceeds of $13,954.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Private Placement</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group completed a private placement of
3,769,476 shares at $0.86 (US$0.64) per share for gross proceeds of approximately $3,242 (US$2,412). After transaction costs of
$139, the Group raised net proceeds of $3,103.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>February 2019</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Conversion of Special
Warrants</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">In February 2019, 10,150,322 special warrants
issued in a private placement in December 2018 at a price of $0.83 (US$0.62) per special warrant for gross proceeds of $8,424;
and net proceeds of $8,192 after transaction costs of $232 (refer also to note 5(a)), were converted into shares on a one-for-one
basis for no additional consideration to the Group. Additional transaction costs of $2 were paid during the year.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share Purchase Warrants and Options not Issued under the Group’s Incentive Plan</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following reconciles outstanding warrants
and non-employee options (options that were not issued under the Group’s incentive plan (see below)), each exercisable to
acquire one share, for the year ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Continuity</b></font></td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Cannon Point <br />
options <br />
(note 1)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Mission <br />
 Gold <br />
 warrants <br />
 (note 1)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Other warrants <br />
(note 2)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Special warrants<br />
(note 3)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Broker warrants <br />
(note 4)</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Total</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 34%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Beg. Balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">327,700</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,125,646</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,858,213</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 8%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">35,311,559</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(3,160,945</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(783,814</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(3,944,759</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Bal. Dec 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">327,700</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,964,701</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,074,399</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,150,322</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">41,517,122</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Issued</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">466,666</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">244,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">710,666</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(104,450</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(200,075</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,150,322</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,454,847</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif"><b>Bal. Dec 31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">223,250</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,764,626</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,541,065</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">244,000</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">31,772,941</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="25" style="text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted Averages per option/warrant as at December 31</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.38</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.55</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.65</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.64</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price US dollars</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">US$ 0.41 </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">US$ 0.41</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Remaining life in years</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.40</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.52</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.45</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.33</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Exercise price</font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.38</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.55</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.65</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">nil </font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.63</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double"><font style="font: 10pt Cambria, Times, Serif">Remaining life in years</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.47</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.52</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.44</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.33</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.33</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt/12pt Cambria, Times, Serif; margin: 0 0 0 71.45pt; text-align: justify; text-indent: -0.5in">Notes to table:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Pursuant to the acquisition of Cannon Point Resources Ltd. (“Cannon Point”) and Mission Gold Ltd. (“Mission Gold”) in October 2015 and December 2015 respectively, the Group exchanged options and warrants outstanding in these companies for options and warrants to purchase shares in the Company. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Warrants were issued pursuant to the June 2016 prospectus financing, July 2016 private placement and the 2019 non-revolving term loan credit facility agreement (note 8).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The special warrants were issued in a private placement at an exercise price of $0.83 (US$0.62) per special warrant in December 2018 (note 6(b)).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Broker warrants, which have a US dollar exercise price, were issued to the underwriters pursuant to the June 2019 prospectus financing (note 6(b)).</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share Purchase Option Compensation Plan</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group has a share purchase option plan
approved by the Group’s shareholders that allows the Board of Directors to grant share purchase options, subject to regulatory
terms and approval, to its officers, directors, employees, and service providers. The share purchase option plan (the "2017
Rolling Option Plan") is based on the maximum number of eligible shares (including any issuances from the Group’s RSU
and DSU plans ) equaling a rolling percentage of up to 10% of the Company's outstanding Shares, calculated from time to time. Pursuant
to the 2017 Rolling Option Plan, if outstanding share purchase options ("options") are exercised and the number of issued
and outstanding shares of the Company increases, then the options available to grant under the plan increase proportionately (assuming
there are no issuances under the RSU and DSU plans). The exercise price of each option is set by the Board of Directors at the
time of grant but cannot be less than the market price, being the 5-day volume weighted average trading price calculated the day
before the grant. Options can have a maximum term of five years and typically terminate 90 days following the termination of the
optionee’s employment or engagement. In the case of death or retirement, any outstanding vested options will expire the earlier
of the expiry date or one year from date of death or retirement. The vesting period for options is at the discretion of the Board
of Directors at the time the options are granted.  </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following is reconciles the Group’s
options outstanding for the years ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Continuity of options</b></font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Number of <br />
 options</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted  average <br />
 exercise  price <br />
 ($/option)</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 62%"><font style="font: 10pt Cambria, Times, Serif">Beginning Balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">19,847,431</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.08</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,635,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(18,500</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(800,499</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.51</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Forfeited</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(32,500</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.44</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Cancelled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(24,200</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.51</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,606,732</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.03</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,610,500</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.99</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(4,235,000</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.54</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,185,666</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.54</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Forfeited</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,700</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.82</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Cancelled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(33,600</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.10</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">25,752,266</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.96</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">In the years ended December 31, 2019 and
2018 respectively, options were granted with a weighted average fair value estimated at $0.56 (2018 – $0.54) per option using
the Black-Scholes option pricing model with the following assumptions:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted Average Assumptions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DCE6F1; padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="padding-bottom: 1.5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 62%; padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Risk-free interest rate</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DCE6F1"> </td>
<td style="width: 16%; background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.39</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">%</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2.21</font></td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected life</font></td>
<td> </td>
<td style="background-color: #DCE6F1"> </td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5.00 years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">4.25 years</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected volatility <sup>1</sup></font></td>
<td> </td>
<td style="background-color: #DCE6F1"> </td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">94.73</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">%</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">95.60</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Grant date share price</font></td>
<td> </td>
<td style="background-color: #DCE6F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.81</font></td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.78</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2.25pt double; padding-left: 5.65pt; text-align: justify; text-indent: -5.65pt"><font style="font: 10pt Cambria, Times, Serif">Expected dividend yield</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #DCE6F1"> </td>
<td style="border-bottom: black 2.25pt double; background-color: #DCE6F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Nil</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-indent: 0.5in">Note:</p>
<p style="font: 10pt/12pt Cambria, Times, Serif; margin: 0 0 0 53.9pt; text-indent: -18.45pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Expected volatility is based on the historical and implied volatility of the Company’s share price on the TSX.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For the year ended December 31, 2019, the
Group recognized share-based compensation ("SBC") on options of $3,898 (2018 – $4,656).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Details of options exercised during the current
and prior year were as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: #DBE5F1; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 35%"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><b>Year ended December 31, 2019</b></font></td>
<td style="border-bottom: black 1pt solid; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number<br />
 of options </font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 exercise price <br />
 ($/option)</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 market share price <br />
on exercise <br />
 ($/option)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">January 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">125,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.87 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">February 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">30,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1.23 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">June 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">39,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.59 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">July 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">81,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.49 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.68 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">August 2019</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">856,666</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.55 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.90 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">September 2019</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">54,000</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.72 </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.85 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1,185,666</font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.54 </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.88 </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 37%; padding-right: 5.4pt"><font style="font: 10pt Cambria, Times, Serif">Year ended December 31, 2018</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number<br />
 of options </font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average<br />
 exercise price<br />
 ($/option)</font></td>
<td style="border-bottom: black 1pt solid; width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average<br />
 market share price<br />
on exercise<br />
 ($/option)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">January 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">33,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.69 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">2.00 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">June 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">11,000</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.75 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">July 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">39,500</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.68 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">August 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">33,500</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.75 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">September 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">25,333</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">October 2018</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">650,666</font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.50 </font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.70 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">November 2018</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">7,500</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.76 </font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">1.00 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; text-align: justify"> </td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">800,499</font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.51 </font></td>
<td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">0.76 </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The following tables summarizes information
about the Group’s options as at December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td colspan="3" style="border-bottom: black 1pt solid; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options outstanding</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options exercisable</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Exercise prices ($)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Remaining <br />
 contractual <br />
 life (years)</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Remaining <br />
 contractual <br />
 life (years)</font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.21 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.21 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.49</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,105,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.53 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,105,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.53 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,316,666</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.81 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,316,666</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.81 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,538,000</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.87 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,538,000</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.87 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">0.99</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,610,500</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">4.75 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,305,250</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">4.75 </font></td></tr>
<tr style="vertical-align: top">
<td colspan="2"><font style="font: 10pt Cambria, Times, Serif">1.75</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,732,100</font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.10 </font></td>
<td style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,732,100</font></td>
<td colspan="2" style="background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.10 </font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif">Total and weighted average contractual life per option</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">25,752,266</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.70 </font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">22,447,016</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: #DBE5F1; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.40 </font></td></tr>
<tr>
<td style="width: 29%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%"> </td>
<td style="width: 19%"> </td>
<td style="width: 15%"> </td>
<td style="width: 19%"> </td>
<td style="width: 1%"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="border-bottom: black 1pt solid; vertical-align: bottom"> </td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options outstanding</b></font></td>
<td colspan="2" style="border-bottom: black 1pt solid; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font: 10pt Cambria, Times, Serif"><b>Options exercisable</b></font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Exercise prices ($)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"> Remaining <br />
 contractual <br />
 life (years)</font></td>
<td style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of options </font></td>
<td colspan="2" style="border-bottom: black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif"> Remaining <br />
 contractual <br />
 life (years)</font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.48</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.21 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">450,000</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.21 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.49</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,034,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.26 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,034,000</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.26 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,323,332</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.81 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,323,332</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">1.81 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.72</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">200,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">200,000</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.71 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,620,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.85 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,810,000</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.85 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">0.89</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,125,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.29 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,124,998</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.29 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">1.75</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,744,400</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.10 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,829,600</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">3.10 </font></td></tr>
<tr style="vertical-align: top">
<td><font style="font: 10pt Cambria, Times, Serif">1.77</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,110,000</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.16 </font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,110,000</font></td>
<td colspan="2" style="padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">0.16 </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif">Total and weighted average contractual life per option</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,606,732</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; background-color: white; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.41</font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">19,881,930</font></td>
<td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 0.5in; text-align: right; text-indent: -0.5in"><font style="font: 10pt Cambria, Times, Serif">2.14 </font></td></tr>
<tr>
<td style="width: 30%"> </td>
<td style="width: 18%"> </td>
<td style="width: 18%"> </td>
<td style="width: 15%"> </td>
<td style="width: 18%"> </td>
<td style="width: 1%"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The weighted average exercise price for
exercisable options as at December 31, 2019 was $0.95 (December 31, 2018 – $1.00) per option.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(e)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Deferred Share Units ("DSUs")</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has a DSU plan approved by the
Group’s shareholders in 2015, which allows the Board, at its discretion, to award DSUs to non-executive directors for services
rendered to the Group and also provides that non-executive directors may elect to receive up to 100% of their annual compensation
in DSUs. The aggregate number of DSUs outstanding pursuant to the DSU plan may not exceed 2% of the issued and outstanding shares
from time to time provided the total does not result in the total shares issuable under all the Group’s share-based compensation
plans (i.e. including share purchase option and RSU plans) exceeding 10% of the total number of issued outstanding shares. DSUs
are payable when the non-executive director ceases to be a director including in the event of death. DSUs may be settled in shares
issued from treasury, by the delivery to the former director of shares purchased by the Group in the open market, payment in cash,
or any combination thereof, at the discretion of the Group.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">In the years ended December 31, 2019 and
2018, there were no new grants of DSUs. At December 31, 2019, a total of 458,129 DSU were outstanding (2018 – 458,129).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(f)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Restricted Share Units ("RSUs")</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following reconciles RSUs outstanding
for the year ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; width: 57%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Continuity of RSUs</b></font></td>
<td style="border-bottom: black 1pt solid; width: 28%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Number of <br />
 RSUs </font></td>
<td style="border-bottom: black 1pt solid; width: 15%; background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Weighted average <br />
 fair value <br />
 ($/RSU)</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Beginning Balance</font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">506,495 </font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">2.24</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Granted <sup>1</sup></font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">125,000</font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">0.78</font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif">Shares issued</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(434,742)</font></td>
<td style="border-bottom: black 1pt solid; background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">0.68</font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2018</b></font></td>
<td style="background-color: white; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">196,753 </font></td>
<td style="background-color: white; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.27</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td><font style="font: 10pt Cambria, Times, Serif">Shares issued <sup>1,2</sup></font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(111,086)</font></td>
<td style="padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.57</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td><font style="font: 10pt Cambria, Times, Serif">Withheld <sup>1,2</sup></font></td>
<td style="padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">(85,667)</font></td>
<td style="padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">1.27</font></td></tr>
<tr style="vertical-align: bottom; background-color: #DBE5F1">
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2019</b></font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 12pt; text-align: right; text-indent: 12pt"><font style="font: 10pt Cambria, Times, Serif">– </font></td>
<td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding-right: 5.65pt; padding-left: 12pt; text-align: right; text-indent: 8.65pt"><font style="font: 10pt Cambria, Times, Serif">– </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Notes</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The RSUs were granted on August 9, 2018, to an officer of the Group with an expiry date of December 2021 and an initial one-year vesting period from date of grant. The Group treated these RSUs as cash-settled given the cash settlement of a previous grant. In January 2019, the Group’s Compensation Committee agreed with management that it was in the best interest of the Group to accelerate the vesting period to January 28, 2019. The Group settled the vested RSUs, by issuing 58,886 shares and withheld 66,114 RSUs to pay tax obligations. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">During the year ended December 31, 2019, 71,752 RSUs, being the second and third tranches of 107,629 equity-settled RSUs that were granted in September 2017, were settled by issuing 52,200 shares, with the balance of 19,553 RSUs being withheld to pay tax obligations. </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; background-color: white"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">During the year ended December 31, 2019,
the Group recognized $29 (2018 – $96) as SBC with a corresponding increase in the SBC Reserve for RSUs classified as equity-settled.
Over the same period, for RSUs classified as cash-settled, the Group recognized $43 (2018 – decrease of $17) in SBC with
a corresponding increase in the RSU liability (2018 – decrease). On the settlement of the cash-settled RSUs, the RSU liability
was reduced to $nil with $58 transferred to share capital for shares issued with the remainder remitted to the tax authorities.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; background-color: white"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(g)</i></font></td>
<td><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Foreign Currency Translation Reserve</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>December 31</b></font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">December 31</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%"><font style="font: 10pt Cambria, Times, Serif">Beginning balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">38,686</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">27,934</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Foreign exchange translation differences incurred:</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">(Loss) gain on translation of foreign subsidiaries</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">(6,321</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,752</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Ending balance</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">32,365</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">38,686</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The foreign currency translation reserve
represents accumulated exchange differences arising on the translation of the results of operations and net assets of the Group’s
subsidiaries with a US dollar functional currency, into the Group’s presentation currency, the Canadian dollar.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #1F497D"><i>(a)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Statement</i></font><i><font style="font-family: Times New Roman, Times, Serif"> </font><font style="font: 10pt Cambria, Times, Serif; color: #1F497D">of Compliance</font></i></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">These Financial Statements have been prepared
in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards
Board ("IASB") and interpretations issued by the IFRS Interpretations Committee ("IFRIC"s) that are effective
for the Group’s reporting for the year ended December 31, 2019. These Financial Statements were authorized for issue by
the Board of Directors on March 26, 2020.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(b)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Basis of Preparation</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">These Financial Statements have been prepared
on a historical cost basis using the accrual basis of accounting, except for cash flow information and for financial instruments
classified as fair value through other comprehensive income, which are stated at their fair value (notes 2(f)). The accounting
policies set out below have been applied consistently to all periods presented in these Financial Statements with exception to
the changes to accounting policies noted in below.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(c)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Changes in Accounting Standards</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>New and amended IFRS standards
that are effective for the current year</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group adopted IFRS 16 effective January
1, 2019, using the modified retrospective approach and therefore comparative information for the 2018 reporting period has not
been restated and continues to be reported under IAS 17, <i>Leases</i>, and IFRIC 4, <i>Determining Whether an Arrangement
Contains a Lease</i>, as permitted under the specific transitional provisions in the standard.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">IFRS 16 introduces a single, on-balance sheet
accounting model for lessees. As a result, the Group, as a lessee, has recognized right-of-use assets ("ROU Assets"), representing
its rights to use the underlying assets, and lease liabilities, representing its obligation to make lease payments.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">At inception of a contract, the Group assesses
whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control
the use of an identified asset for a period of time in exchange for consideration. The Group has elected not to recognize right-of-use
assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and leases of low-value assets.
For these leases, the Group recognizes the lease payments as an expense in loss on a straight-line basis over the term of the lease.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group recognizes a lease liability and
a right-of-use asset at the lease commencement date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is initially measured
as the present value of future lease payments discounted using the interest rate implicit in the lease or, if that rate cannot
be readily determined, using the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing
rate as the discount rate. The incremental borrowing rate is the rate which the Group would have to pay to borrow, over a similar
term and with a similar security, the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar
economic environment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Lease payments included in the measurement
of the lease liability comprise the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">fixed payments, including in-substance fixed payments, less any lease incentives receivable;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">amounts expected to be payable by the Group under residual value guarantees;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and</font></td></tr>
</table>
<p style="font: 1pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">payments of penalties for terminating the lease, if the Group expects to exercise an option to terminate the lease.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is subsequently measured
by:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">increasing the carrying amount to reflect interest on the lease liability;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">reducing the carrying amount to reflect the lease payments made; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">remeasuring the carrying amount to reflect any reassessment or lease modifications.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The lease liability is remeasured when there
is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate
of the amount expected to be payable under a residual value guarantee, or if the Group changes its assessment of whether it will
exercise a purchase, extension or termination option.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The ROU Asset is initially measured at cost,
which comprises the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">the amount of the initial measurement of the lease liability;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">any lease payments made at or before the commencement date, less any lease incentives received;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">any initial direct costs incurred by the Group; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease, unless those costs are incurred to produce inventories.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The ROU Asset is subsequently measured
at cost, less any accumulated depreciation and any accumulated impairment losses, and adjusted for any remeasurement of the lease
liability. It is depreciated from the commencement date to the earlier of the end of its useful life or the end of the lease term
using either the straight-line or units-of-production method depending on which method more accurately reflects the expected pattern
of consumption of the future economic benefits.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Each lease payment is allocated between
the lease liability and finance cost. The finance cost is charged to loss over the lease period so as to produce a constant periodic
rate of interest on the remaining balance of the liability for each period.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On the balance sheet, the ROU Assets are
presented in "<i>Mineral property, plant and equipment</i>" (note 3) and the lease liabilities are presented in "<i>Trade
and other payables</i>" (note 10).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify; text-indent: -21.25pt; color: #0054A4"><i>Transition
to IFRS 16</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">At transition, lease liabilities were measured
at the present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate as at January
1, 2019. ROU Assets were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease
payments, of which there were none.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group used the following practical
expedients when applying IFRS 16:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Applied the exemption not to recognize ROU Assets and lease liabilities for short-term leases that have a lease term of twelve months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Excluded initial direct costs from measuring the ROU Asset on initial application; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Symbol">·</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Used hindsight when determining the lease term if the contract contains options to extend.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group had no leases classified as finance
leases under IAS 17.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Incremental ROU Assets and lease liabilities
of $1,154 were recognized as of January 1, 2019, with no impact on accumulated deficit. The weighted average incremental borrowing
rate applied to the lease liabilities was 10%.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><br style="clear: both" />
The following table reconciles the Group’s operating lease commitments at December 31, 2018, as previously disclosed in the
2018 annual financial statements, to the lease liabilities recognized on initial application of IFRS 16 as at January 1, 2019:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td colspan="3" style="border-bottom: black 1pt solid; padding-right: 5pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif">Adoption<br />
 of IFRS 16</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 85%"><font style="font: 10pt Cambria, Times, Serif"><b>Operating lease commitments as at December 31, 2018</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,284</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Adjustments on adoption of IFRS 16</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">235</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Operating lease commitments – December 31, 2018</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,519</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">IFRS 16 recognition exemption for short-term leases (note 14(b))</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(158</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Effect from discounting using the incremental borrowing rate – January 1, 2019</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(207</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">389</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif">Non-current lease liability (note 10)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">765</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Lease liabilities recognized at January 1, 2019</b></font></td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,154</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(d)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Basis of Consolidation</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify">These Financial Statements incorporate the
financial statements of the Company, the Company’s subsidiaries, and entities controlled by the Company and its subsidiaries
listed below:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">3537137 Canada Inc. <sup>1</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Services Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Management and services company.  Wholly-owned subsidiary of the Company.  </font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Northern Dynasty Partnership</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holds 99.9% interest in the Pebble Partnership and 100% of Pebble Mines.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Limited Partnership<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Partnership</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Limited Partnership.  Ownership and Exploration of the Pebble Project.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Mines Corp.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Pebble Mines</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delaware, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">General Partner.  Holds 0.1% interest in the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble West Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble East Claims Corporation <sup>2</sup></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Pebble Pipeline Corporation</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Alaska, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Subsidiary of the Pebble Partnership.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">U5 Resources Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Holding Company.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Cannon Point Resources Ltd.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">MGL Subco Ltd.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"MGL")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of the Company.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Delta Minerals Inc.<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"Delta")</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of MGL.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 1pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border: #0070C0 1pt solid; width: 29%"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Name of Subsidiary</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 19%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Place of Incorporation</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 39%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Principal Activity</b></font></td>
<td style="border-top: #0070C0 1pt solid; width: 13%; border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B"><b>Percent<br />
owned</b></font></td></tr>
<tr style="vertical-align: top; background-color: #DBE5F1">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Imperial Gold Corporation<br />
(</font><font style="font: 10pt Cambria, Times, Serif">"<font style="color: #1A171B">Imperial Gold</font>"<font style="color: #1A171B">)</font></font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">British Columbia, Canada</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Delta.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
<tr style="vertical-align: top">
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; border-left: #0070C0 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Yuma Gold Inc.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Nevada, USA</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">Not active.  Wholly-owned subsidiary of Imperial Gold.</font></td>
<td style="border-right: #0070C0 1pt solid; border-bottom: #0070C0 1pt solid; padding-right: 5.4pt; text-align: right"><font style="font: 10pt Cambria, Times, Serif; color: #1A171B">100%<br />
(indirect)</font></td></tr>
</table>
<p style="font: 13.5pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 48px"><font style="font: 10pt Cambria, Times, Serif">Notes:</font></td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Both entities together hold 2,402 claims comprising the Pebble Project.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Control is achieved when the Group is exposed,
or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its
power over the investee. Specifically, the Group controls an investee if, and only if, the Company has power over the investee
(i.e. existing rights that give it the current ability to direct the relevant activities of the investee); exposure, or rights,
to variable returns from its involvement with the investee; and the ability to use its power over the investee to affect its returns.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Intra-Group balances and transactions,
including any unrealized income and expenses arising from intra-Group transactions, are eliminated in preparing the Financial
Statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to
the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains,
but only to the extent that there is no evidence of impairment.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(e)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Foreign Currencies</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The functional currency is the currency
of the primary economic environment in which the entity operates and has been determined for each entity within the Group. The
functional currency of U5 Resources Inc., Pebble Services Inc., Pebble Mines Corp., the Pebble Partnership and its subsidiaries,
and Yuma Gold Inc. is the US dollar and for all other entities within the Group, the functional currency is the Canadian dollar.
The functional currency determinations were conducted through an analysis of the factors for consideration identified in IAS 21,
<i>The Effects of Changes in Foreign Exchange Rates</i>.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Transactions in currencies
other than the functional currency are recorded at the rates of exchange prevailing on the dates of transactions. At the end of
each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing
at that date. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are translated
at rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical
cost in a foreign currency are not retranslated.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The results and financial position of
entities within the Group which have a functional currency that differs from that of the Group are translated into Canadian dollars
as follows: (i) assets and liabilities for each statement of financial position are translated at the closing exchange rate at
that date; (ii) income and expenses for each income statement are translated at average exchange rates for the period; and (iii)
the resulting exchange differences are included in the foreign currency translation reserve within equity.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(f)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Financial Instruments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On initial recognition, a financial asset
is classified as measured at amortized cost; fair value through other comprehensive income ("FVTOCI") (debt / equity investment);
or fair value through profit or loss ("FVTPL"). A financial asset (unless it is a trade receivable without a significant
financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item
not at FVTPL, transaction costs that are directly attributable to its acquisition.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The classification of financial assets is
generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Classification of financial
assets</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Amortized cost</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For a financial asset to be measured at amortized
cost, it needs to meet both of the following conditions and is <u>not</u> designated as at FVTPL:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">it is held within a business model whose objective is to hold assets to collect contractual cash flows; and</font></td></tr>
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif"> </td>
<td style="font: 12pt Times New Roman, Times, Serif"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 6pt 0 6pt 35.45pt; text-align: justify">The Group’s financial assets
at amortized cost comprise of restricted cash, amounts receivable, and cash and cash equivalents.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Fair value through other
comprehensive income ("FVTOCI")</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For a debt investment to be measured at FVTOCI,
it needs to meet both of the following conditions and is <u>not</u> designated as at FVTPL:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and </font></td></tr>
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif"> </td>
<td style="font: 12pt Times New Roman, Times, Serif"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4">Equity instruments at FVTOCI</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">On initial recognition, the Group may irrevocably
elect to present subsequent changes in the instrument’s fair value in other comprehensive income ("OCI") provided
it is not held for trading. This election is made on an investment-by-investment basis.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4">Fair Value through profit
or loss ("FVTPL")</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">All financial assets not classified as
measured at amortised cost or FVTOCI are measured at FVTPL. This includes all derivative financial assets. On initial recognition,
the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or
at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The following accounting policies apply
to the subsequent measurement of financial assets:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-top: black 1pt solid; width: 33%; border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Financial assets at FVTPL</font></td>
<td style="border-top: black 1pt solid; width: 67%; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognised in profit or loss.  </font></td></tr>
<tr style="vertical-align: top">
<td style="border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Financial assets at amortized cost</font></td>
<td style="border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at amortised cost using the effective interest method. The amortized cost is reduced by impairment losses (see below). Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss.  Any gain or loss on derecognition is recognised in profit or loss. </font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="border-top: black 1pt solid; width: 33%; border-bottom: black 1pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Debt investments at FVTOCI</font></td>
<td style="border-top: black 1pt solid; width: 67%; border-bottom: black 1pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. </font></td></tr>
<tr style="vertical-align: top">
<td style="border-bottom: black 2.25pt solid"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4">Equity investments at FVTOCI</font></td>
<td style="border-bottom: black 2.25pt solid; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">These assets are subsequently measured at fair value.  Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Financial assets are impaired
when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial
assets, the estimated future cash flows of the investments have been impacted. For marketable securities classified as FVTOCI,
a significant or prolonged decline in the fair value of the securities below their cost is considered to be objective evidence
of impairment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><u>Financial liabilities</u></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Non-derivative financial
liabilities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group’s non-derivative financial
liabilities comprise of trade and other payables, loans payable <font style="color: #1A171B">and payables to related parties. </font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"><font style="color: #1A171B">A</font>ll financial
liabilities that are not held for trading or designated as at FVTPL <font style="color: #1A171B">are recognized initially at fair
value net of any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured
at amortized cost using the effective interest method. </font></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4">Derivative financial assets
and liabilities:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">The Group’s warrant
liabilities are derivative financial liabilities and have been designated as at FVTPL (note 7).</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">On date of issue, the warrant liabilities
were recognized at fair value as a financing cost with the subsequent change in fair value recognized in loss<font style="color: #1A171B">.
</font></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(g)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Exploration and Evaluation Expenditure</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Exploration and evaluation
expenditures include the costs of acquiring licenses, costs associated with exploration and evaluation activity, and the acquisition
date fair value of exploration and evaluation assets acquired in a business combination or an asset acquisition. Exploration and
evaluation expenditures are expensed as incurred except for expenditures associated with the acquisition of exploration and evaluation
assets through a business combination or an asset acquisition. Costs incurred before the Group has obtained the legal rights to
explore an area are expensed.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Acquisition costs, including general and
administrative costs, are only capitalized to the extent that these costs can be related directly to operational activities in
the relevant area of interest where it is considered likely to be recoverable by future exploitation or sale or where the activities
have not reached a stage which permits a reasonable assessment of the existence of reserves.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Exploration and evaluation ("E&E")
assets are assessed for impairment only when facts and circumstances suggest that the carrying amount of an E&E asset may exceed
its recoverable amount and when the Group has sufficient information to reach a conclusion about technical feasibility and commercial
viability.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Industry-specific indicators for an impairment
review arise typically when one of the following circumstances applies:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 24px"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Substantive expenditure on further exploration and evaluation activities is neither budgeted nor planned; </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">title to the asset is compromised;</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">adverse changes in the taxation and regulatory environment; </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">adverse changes in variations in commodity prices and markets; and</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Symbol">·</font></td>
<td style="font: 12pt Times New Roman, Times, Serif; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">variations in the exchange rate for the currency of operation.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Once the technical feasibility and commercial
viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable
to that area of interest are first tested for impairment and then reclassified to mining property and development assets within
property, plant and equipment.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Recoverability of the carrying amount
of any exploration and evaluation assets is dependent on successful development and commercial exploitation, or alternatively,
sale of the respective assets.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(h)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Mineral property, plant and equipment</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Mineral property, plant and equipment are
carried at cost, less accumulated depreciation and accumulated impairment losses.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The cost of mineral property, plant and equipment
consists of the acquisition costs transferred from E&E assets, any costs directly attributable to bringing the asset to the
location and condition necessary for its intended use, including costs to further delineate the ore body, development and construction
costs, removal of overburden to initially expose the ore body, an initial estimate of the costs of dismantling, removing the item
and restoring the site on which it is located and, if applicable, borrowing costs.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Mineral property acquisition and development
costs are not currently depreciated as the Pebble Project is still in the development stage and no saleable minerals are being
produced.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">The cost of an item of plant
and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition
necessary for its intended use, and an initial estimate of the costs of dismantling and removing the item and restoring the site
on which it is located.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Depreciation is provided
at rates calculated to write off the cost of plant and equipment, less their estimated residual value, using the declining balance
method at various rates ranging from 20% to 30% per annum.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">An item of equipment is derecognized
upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising
on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset,
is recognized in profit or loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Where an item of equipment
consists of major components with different useful lives, the components are accounted for as separate items of equipment. Expenditures
incurred to replace a component of an item of equipment that is accounted for separately, including major inspection and overhaul
expenditures, are capitalized.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B"><br style="clear: both" />
</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #1A171B">Residual values and estimated
useful lives are reviewed at least annually.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(i)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Impairment of Non-Financial Assets</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">At the end of each reporting period the
carrying amounts of the Group’s non-financial assets are reviewed to determine whether there is any indication that these
assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of an individual asset, the
Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is the higher
of fair value less costs of disposal and value in use. Fair value is determined as the amount that would be obtained from the sale
of the asset in an arm’s length transaction between knowledgeable and willing parties. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. If the recoverable amount of an asset is estimated to be less than
its carrying amount, the carrying amount of the asset is reduced to its recoverable amount and the impairment loss is recognized
in loss for the period. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined
for the cash generating unit to which the asset belongs.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #1A171B">Where an impairment loss
subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount. This increase in the carrying amount is limited to the carrying amount that would have been determined had
no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
recognized immediately in profit or loss. The Group has not recorded any impairment charges in the years presented.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(j)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share Capital, Special Warrants, Warrants and Subscriptions for Shares</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Common shares ("shares"), special
warrants, warrants and subscriptions received for shares are classified as equity. Transaction costs directly attributable to the
issue of these instruments are recognized as a deduction from equity, net of any tax effects. Where units comprising of shares
and warrants are issued the proceeds and any transaction costs are apportioned between the shares and warrants according to their
relative fair values.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Upon conversion of special warrants and
warrants into shares and the issue of shares for subscriptions received, the carrying amount, net of a pro rata share of the transaction
costs, is transferred to share capital.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
<td style="width: 0px"> </td>
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(k)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Share-based Payment Transactions</i></font></td></tr>
</table>
<p style="font: 10pt/13pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4"><i>Equity-settled share-based
Option Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group operates an equity-settled share-based
option plan for its employees and service providers (note 6(d)). The fair value of share purchase options granted is recognized
as an employee or consultant expense with a corresponding increase in the <i>equity-settled share-based payments reserve</i> in
equity (the "Equity Reserve"). An individual is classified as an employee when the individual is an employee for legal
or tax purposes ("direct employee") or provides services similar to those performed by a direct employee.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt/13pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The fair value is measured at grant
date for each tranche, which is expensed on a straight line basis over the vesting period, with a corresponding increase in the
Equity Reserve. The fair value of share purchase options granted is measured using the Black-Scholes option pricing model, taking
into account the terms and conditions upon which the share purchase options were granted and forfeiture rates as appropriate. At
the end of each reporting period, the amount recognized as an expense is adjusted to reflect the actual number of share purchase
options that are expected to vest.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Deferred Share Unit (“DSU”)
Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group has a DSU plan for its non-executive
directors. The Group determines whether to account for DSUs as equity-settled or cash-settled based on the terms of the contractual
arrangement. The fair value of DSUs granted is recognized as an employee expense with a corresponding increase in the Equity Reserve
if deemed equity-settled or a liability is raised if cash-settled at grant date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The fair value is estimated using the TSX
quoted market price of the Company’s common shares at grant date and expensed over the vesting period as share-based compensation
in loss until they are fully vested. If the DSUs are cash-settled, the expense and liability are adjusted each reporting period
for changes in the TSX quoted market price of the Company’s common shares.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #0054A4"><i>Restricted Share Unit
(“RSU”) Plan</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The Group has a RSU plan for its employees,
executive directors and eligible consultants of the Group. The Group determines whether to account for the RSUs as equity-settled
or cash-settled based on the terms of the contractual arrangement. The fair value of RSUs is recognized as an employee expense
with a corresponding increase in the Equity Reserve if deemed equity –settled or a liability is raised if cash settled at
grant date.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The fair value is estimated using the number
of RSUs and the quoted market price of the Company’s common shares at the grant date. It is then expensed over the vesting
period with the credit recognized in equity in the Equity Reserve. If cash-settled, the expense and liability are adjusted each
reporting period for changes in the quoted market value of the Company’s common shares.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(l)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Income Taxes</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Income tax on the profit or loss for the
years presented comprises current and deferred tax. Income tax is recognized in profit or loss except to the extent that it relates
to items recognized in other comprehensive income or loss or directly in equity, in which case it is recognized in other comprehensive
income or loss or equity.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Current tax expense is the expected tax
payable on the taxable income for the year, using tax rates enacted or substantively enacted at year end, adjusted for amendments
to tax payable with regard to previous years.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Deferred tax is provided using the balance
sheet liability method, providing for unused tax loss carry forwards and temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences
are not provided for: goodwill not deductible for tax purposes; the initial recognition of assets or liabilities that affect neither
accounting nor taxable profit; and differences relating to investments in subsidiaries, associates, and joint ventures to the extent
that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner
of realization or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted
at the end of the reporting period applicable to the period of expected realization or settlement.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">A deferred tax asset is recognized only
to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Additional income taxes that arise from
the distribution of dividends are recognized at the same time as the liability to pay the related dividend.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Deferred tax assets and liabilities are
offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate
to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on
a net basis.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(m)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Restoration, Rehabilitation, and Environmental Obligations</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.55pt"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; text-indent: -0.55pt">An obligation to incur
restoration, rehabilitation and environmental costs arises when environmental disturbance is caused by the exploration or development
of a mineral property interest. Such costs arising from the decommissioning of plant and other site preparation work, discounted
to their net present value, are provided for and capitalized at the start of each project to the carrying amount of the asset,
along with a corresponding liability as soon as the obligation to incur such costs arises. The timing of the actual rehabilitation
expenditure is dependent on a number of factors such as the life and nature of the asset, the operating license conditions and,
when applicable, the environment in which the mine operates.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Discount rates using a pre-tax rate that
reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over
the economic life of the related asset, through amortization using either the unit-of-production or the straight line method. The
corresponding liability is progressively increased as the effect of discounting unwinds, creating an expense recognized in loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Decommissioning costs are also adjusted
for changes in estimates. Those adjustments are accounted for as a change in the corresponding capitalized cost, except where a
reduction in costs is greater than the unamortized capitalized cost of the related assets, in which case the capitalized cost is
reduced to nil and the remaining adjustment is recognized in profit or loss.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The operations of the Group have been,
and may in the future be, affected from time to time in varying degree by changes in environmental regulations, including those
for site restoration costs. Both the likelihood of new regulations and their overall effect upon the Group are not predictable.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group has no material restoration,
rehabilitation and environmental obligations as the disturbance to date is not significant. As a condition for the issue of the
Miscellaneous Land Use Permit at the Pebble Project, the Pebble Partnership has posted a bond with the Alaskan regulatory authorities
as a performance guarantee for any potential reclamation liability (note 5(b)).</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(n)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Loss per Share</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group presents basic and diluted loss
per share information for its common shares, calculated by dividing the loss attributable to common shareholders of the Company
by the weighted average number of common shares and any fully prepaid special warrants outstanding during the year. Diluted loss
per share does not adjust the loss attributable to common shareholders or the weighted average number of common shares outstanding
when the effect is anti-dilutive.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 12pt Times New Roman, Times, Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(o)</i></font></td>
<td style="font: 12pt Times New Roman, Times, Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Segment Reporting</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">The Group operates in a single reportable
operating segment – the acquisition, exploration and development of mineral properties. The Group’s core asset, the
Pebble Project, is located in Alaska, USA.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 48px"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>(p)</i></font></td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"><font style="font: 10pt Cambria, Times, Serif; color: #0054A4"><i>Significant Accounting Estimates and Judgments</i></font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; color: #1A171B"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="color: #1A171B">The preparation
of these Financial Statements requires management to make certain estimates, judgments and assumptions that affect the reported
amounts of assets and liabilities at the date of the Financial Statements and reported amounts of expenses during the reporting
period. Actual outcomes could differ from these estimates. These Financial Statements include estimates, which, by their nature,
are uncertain. The impacts of such estimates are pervasive throughout the Financial Statements</font>, and may require accounting
adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is
revised and future periods if the revision affects both current and future periods. These estimates are based on historical experience,
current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable
under the circumstances.</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Sources of estimation
uncertainty</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">Significant assumptions about the future
and other sources of estimation uncertainty that management has made at the end of the reporting period, that could result in a
material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions
made, relate to, but are not limited to, the following:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group uses the Black-Scholes option pricing model to calculate an estimate of the fair value of share purchase options and certain warrants granted during the year. In the case of share purchase options, the fair value calculated is used to determine share-based compensation that is included in loss for the year. With the warrants, the fair value calculated is used to value the warrant liabilities on the statement of financial position, with gains or losses being recognized in loss for the year. Inputs used in this model require subjective assumptions, including the expected price volatility from less than one year to five years. Changes in the subjective input assumptions can affect the fair value estimate. The weighted average assumptions applied are disclosed in Notes 6(d) and 7 respectively.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Significant assumptions about the future and other sources of estimation uncertainty are made in determining the provision for any deferred income tax expense that is included in the loss for the year and the composition of any deferred income tax liabilities included in the Statement of Financial Position.</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify; color: #0054A4"><i>Critical accounting judgments</i></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.3pt; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify">These include:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">In terms of IFRS 6, <i>Exploration for and Evaluation of Mineral Resources, </i>management determined that there were no circumstance and facts that indicated that testing the Group’s mineral property interest (“MPI”) for impairment was necessary.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Pursuant to IAS 21, <i>The Effects of Changes in Foreign Exchange Rates</i> (“IAS 21”) in determining the functional currency of the parent and its subsidiaries, the Group used judgment in identifying the currency in which financing activities are denominated and the currency that mainly influences the cost of undertaking the business activities in each jurisdiction in which each entity operates.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group has employed judgement that going concern was an appropriate basis for the preparation of the Financial Statements, as the Group considered existing and future available financial resources in determining that such financial resources are able to meet key corporate and Pebble Project expenditure requirements for at least the next twelve months (note 1).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group used judgement in terms of accounting for leases in accordance with IFRS 16. IFRS 16 applies a control model to the identification of leases and the determination of whether a contract contains a lease on the basis of whether the customer has the right to control the use of an identified asset for a fixed period of time. In determining the appropriate lease term for a lease, the Group considered the right of either the lessee and lessor to terminate the lease without permission from the other party with no more than an insignificant penalty as well as whether the Group is reasonably certain to exercise the extension options on the contract.</font></td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following is reconciles the Group’s
options outstanding for the years ended December 31, 2019 and 2018 respectively:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Continuity of options</b></font></td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Number of <br />
 options</b></font></td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>Weighted  average <br />
 exercise  price <br />
 ($/option)</b></font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 62%"><font style="font: 10pt Cambria, Times, Serif">Beginning Balance</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">19,847,431</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 16%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.08</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,635,000</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.76</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(18,500</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.50</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(800,499</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.51</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Forfeited</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(32,500</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.44</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Cancelled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(24,200</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.51</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2018</b></font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">24,606,732</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.03</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Granted</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,610,500</font></td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.99</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Expired</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(4,235,000</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.54</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Exercised</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(1,185,666</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.54</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Forfeited</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(10,700</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.82</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td><font style="font: 10pt Cambria, Times, Serif">Cancelled</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">(33,600</font></td>
<td><font style="font: 10pt Cambria, Times, Serif">)</font></td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1.10</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #DCE6F1">
<td style="border-bottom: black 2.25pt double; text-align: justify"><font style="font: 10pt Cambria, Times, Serif"><b>Balance December 31, 2019</b></font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">25,752,266</font></td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double"> </td>
<td style="border-bottom: black 2.25pt double; text-align: right"><font style="font: 10pt Cambria, Times, Serif">0.96</font></td>
<td style="border-bottom: black 2.25pt double"> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">The following table provides the schedule
of undiscounted lease liabilities as at December 31, 2019:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 56.7pt; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">Total</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 73%"><font style="font: 10pt Cambria, Times, Serif">Less than one year</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 11%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 10%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">391</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">One to five years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">884</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Later than 5 years</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">343</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Total undiscounted lease liabilities</font></td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,618</font></td>
<td> </td></tr>
</table>
<p style="margin: 0pt"></p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif">Compensation</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 14.45pt; text-indent: -7.05pt"><font style="font: 10pt Cambria, Times, Serif">Amounts paid and payable to HDSI for services of KMP employed<br />
by HDSI <sup>1</sup></font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,430</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,595</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Amounts paid and payable to KMP <sup>2</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4,443</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,991</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Bonuses paid to KMP <sup>3</sup></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,053</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,430</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 0.3pt; text-indent: 7.1pt"><font style="font: 10pt Cambria, Times, Serif">Interest payable on loans received from KMP <sup>5</sup></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">–</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 7.1pt; text-indent: -7.1pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">7,930</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">8,016</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 7.1pt; text-indent: 0.3pt"><font style="font: 10pt Cambria, Times, Serif">Share-based compensation <sup>4</sup></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,736</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">3,681</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total compensation</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">10,666</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">11,697</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">Notes to table:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 48px; text-align: justify"> </td>
<td style="width: 24px; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">1.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through Hunter Dickinson Services Inc. ("HDSI") (refer (b)). </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">2.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the PLP CEO, PMC Chair and PLP EVP, SVPs, VP and Chief of Staff. The SVP Engineering is employed by the Group through a wholly-owned US subsidiary of HDSI ("HDUS"). The Group reimburses HDUS for costs incurred. </font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 63.8pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%; text-align: justify"> </td>
<td style="width: 2%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">3.</font></td>
<td style="width: 93%; text-align: justify"><font style="font: 10pt Cambria, Times, Serif">In 2019, incentive bonuses were paid to the CFO, EVP, Environment and Sustainability, VP, Corporate Communications, SVP, Engineering, VP, Permitting, PLP CEO, the Company Secretary, and a performance bonus was paid to the PLP CEO for the 2018 fiscal year. In 2018, incentive bonuses were paid to the SVP, Environment and Sustainability, VP, Corporate Communications and VP, Permitting, and a performance bonus was paid to the PLP CEO for the 2017 fiscal year. </font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">4.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">Represents cost of RSUs and share purchase options issued and/or vesting during the respective periods. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">5.</font></td>
<td style="text-align: justify"><font style="font: 10pt Cambria, Times, Serif">The Group’s Board Chair and CEO advanced $967 to the Group pursuant to the Credit Facility (note 8) and have accrued interest of $4 to December 31, 2019. Subsequent to the reporting period, these loans including interest earned to date were repaid (note 17).</font></td></tr>
</table>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in"></p>
<p style="margin: 0pt"></p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify">For the year ended December 31, 2019, and
2018, the aggregate value of transactions were as follows:</p>
<p style="font: 10pt Cambria, Times, Serif; margin: 0 0 0 0.5in; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif"><b>2019</b></font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td colspan="2" style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2018</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td><font style="font: 10pt Cambria, Times, Serif"><b>Services rendered by HDSI:</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Technical</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 72%; padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Engineering</font></td>
<td style="width: 1%"> </td>
<td style="width: 1%; background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,018</font></td>
<td style="width: 1%; background-color: #DBE5F1"> </td>
<td style="width: 1%"> </td>
<td style="width: 1%"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="width: 11%; text-align: right"><font style="font: 10pt Cambria, Times, Serif">1,199</font></td>
<td style="width: 1%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Environmental</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">459</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">706</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Socioeconomic</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">429</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">462</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Other technical services</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">154</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">316</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-indent: 2.6pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,060</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,683</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">General and administrative</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 22.4pt; text-indent: -14.15pt"><font style="font: 10pt Cambria, Times, Serif">Management, corporate communications, secretarial, financial and administration</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,292</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,326</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.65pt; text-indent: 2.6pt"><font style="font: 10pt Cambria, Times, Serif">Shareholder communication</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">594</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">627</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.65pt; text-indent: 2.6pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,886</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">2,953</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total for services rendered</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">4,946</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,636</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 5.4pt"> </td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 8.25pt; text-indent: -8.25pt"><font style="font: 10pt Cambria, Times, Serif"><b>Reimbursement of third party expenses</b></font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Conferences and travel</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">393</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">502</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Insurance</font></td>
<td> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">50</font></td>
<td style="background-color: #DBE5F1"> </td>
<td> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">70</font></td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 10pt; text-indent: 1.15pt"><font style="font: 10pt Cambria, Times, Serif">Office supplies and information technology</font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">431</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">319</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total reimbursed</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">874</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">891</font></td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt; padding-left: 5.4pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"> </td>
<td style="background-color: #DBE5F1; text-align: right"> </td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td> </td>
<td style="text-align: right"> </td>
<td style="padding-bottom: 1.5pt"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1.5pt"><font style="font: 10pt Cambria, Times, Serif"><b>Total value of transactions</b></font></td>
<td style="padding-bottom: 1.5pt"> </td>
<td style="background-color: #DBE5F1"><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="background-color: #DBE5F1; text-align: right"><font style="font: 10pt Cambria, Times, Serif">5,820</font></td>
<td style="background-color: #DBE5F1; padding-bottom: 1.5pt"> </td>
<td style="padding-bottom: 1.5pt"> </td>
<td><font style="font: 10pt Cambria, Times, Serif">$</font></td>
<td style="text-align: right"><font style="font: 10pt Cambria, Times, Serif">6,527</font></td>
<td style="padding-bottom: 1.5pt"></td></tr>
</table>
<p style="margin: 0pt"></p>
15000
8000
2000000
50
-7
0.0157
P6M
0.56
0.0000
2342000
2140000
53014000
50409000
2416000
2419000
3970000
4734000
0.75
0.10
20000000
Holds a 20% interest in the Northern Dynasty Partnership. The Company holds the remaining 80% interest.
Comprises the Pebble Project, a contiguous block of 2,402 mineral claims covering approximately 417 square miles located in southwest Alaska, 17 miles (30 kilometers) from the villages of Iliamna and Newhalen, and approximately 200 miles (320 kilometers) southwest of the city of Anchorage.
Depreciation is included in exploration and evaluation expenses.
Pursuant to the acquisition of Cannon Point Resources Ltd. ("Cannon Point") and Mission Gold Ltd. ("Mission Gold") in October 2015 and December 2015 respectively, the Group exchanged options and warrants outstanding in these companies for options and warrants to purchase shares in the Company.
Both entities together hold 2,402 claims comprising the Pebble Project.
Transactions and Balances with other Related Parties
Expected volatility is based on the historical and implied volatility of the Company's share price on the TSX.
Transactions and Balances with Key Management Personnel ("KMP")
Includes ROU Assets, which relate to the use of office space, hangers, yard storage, an office copier and one vehicle. The following reconciles ROU Assets for the year ended December 31, 2019
ROU Asset depreciation of $224 is included in general and administrative expenses. The remainder is included in exploration and evaluation expenses.
Warrants were issued pursuant to the June 2016 prospectus financing, July 2016 private placement and the 2019 non-revolving term loan credit facility agreement (note 8).
The special warrants were issued in a private placement at an exercise price of $0.83 (US$0.62) per special warrant in December 2018 (note 6(b)).
The Broker warrants, which have a US dollar exercise price, were issued to the underwriters pursuant to the June 2019 prospectus financing (note 6(b)).
The RSUs were granted on August 9, 2018, to an officer of the Group with an expiry date of December 2021 and an initial one-year vesting period from date of grant. The Group treated these RSUs as cash-settled given the cash settlement of a previous grant. In January 2019, the Group’s Compensation Committee agreed with management that it was in the best interest of the Group to accelerate the vesting period to January 28, 2019. The Group settled the vested RSUs, by issuing 58,886 shares and withheld 66,114 RSUs to pay tax obligations.
During the year ended December 31, 2019, 71,752 RSUs, being the second and third tranches of 107,629 equity-settled RSUs that were granted in September 2017, were settled by issuing 52,200 shares, with the balance of 19,553 RSUs being withheld to pay tax obligations.
The Group’s CEO, CFO, Board Chair and senior management, other than disclosed in note 2 below, are employed by the Group through Hunter Dickinson Services Inc. ("HDSI") (refer (b)).
Represents short-term employee benefits, including director’s fees paid to the Group’s independent directors, and salaries paid and payable to the PLP CEO, PMC Chair and PLP EVP, SVPs, VP and Chief of Staff. The SVP Engineering is employed by the Group through a wholly-owned US subsidiary of HDSI ("HDUS"). The Group reimburses HDUS for costs incurred.
In 2019, incentive bonuses were paid to the CFO, EVP, Environment and Sustainability, VP, Corporate Communications, SVP, Engineering, VP, Permitting, PLP CEO, the Company Secretary, and a performance bonus was paid to the PLP CEO for the 2018 fiscal year. In 2018, incentive bonuses were paid to the SVP, Environment and Sustainability, VP, Corporate Communications and VP, Permitting, and a performance bonus was paid to the PLP CEO for the 2017 fiscal year.
Represents cost of RSUs and share purchase options issued and/or vesting during the respective periods.
The Group’s Board Chair and CEO advanced $967 to the Group pursuant to the Credit Facility (note 8) and have accrued interest of $4 to December 31, 2019. Subsequent to the reporting period, these loans including interest earned to date were repaid (note 17).
At December 31, 2019, trade payables in current liabilities includes legal fees due to legal counsel of US$5,274, which was previously due January 31, 2020 but has been extended to December 24, 2020 (note 17(c)), and US$635 payable on completion of a partnering transaction. The former legal fees were included in non-current liabilities at December 31, 2018.
Lease liabilities relate to lease of offices, site hangers, yard storage, an office copier and one vehicle, which have remaining lease terms of 4 to 125 months and interest rates of 7.5% – 10.5% over the term of the leases. During the year ended December 31, 2019, the Group recognized $120 in interest expense on lease liabilities, which is included in finance expense in the loss for the year.
Expected volatility is based on the historical and implied volatility of the Company’s share price on the TSX.