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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">UNITED
STATES</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">SECURITIES AND
EXCHANGE COMMISSION</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">WASHINGTON, D.C.
20549</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">FORM
20-F</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font>&#x2610;</font>&#xA0;&#xA0; REGISTRATION STATEMENT PURSUANT TO
SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF
1934</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">OR</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px"><font>&#x2612;</font>&#xA0;&#xA0;&#xA0; ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">For the
fiscal year ended July 31, 2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">OR</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font>&#x2610;</font> &#xA0; TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">OR</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font>&#x2610;</font> &#xA0; SHELL COMPANY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Commission file
number 0-15490</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">QUARTZ
MOUNTAIN RESOURCES LTD.</font></div>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">(Exact
name of Registrant as specified in its charter)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">BRITISH
COLUMBIA, CANADA</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Jurisdiction of
incorporation or organization)</font></div>
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</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">15th
Floor, 1040 West Georgia Street Vancouver, British Columbia,
Canada, V6E 4H1</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">(Address of
principal executive offices)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Sebastian
Tang, Chief Financial Officer (appointed in August
2020)</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Facsimile
No.: 604-681-2741</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">15th
Floor, 1040 West Georgia Street</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Vancouver,
British Columbia, Canada, V6E 4H1</font></div>
</td>
</tr><tr>
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<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">(Name,
Telephone, E-mail and/or Facsimile number and Address of Company
Contact Person)</font></div>
</td>
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</div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(b) of the
Act.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Title
of Each Class:</font></div>
</td>
<td style="vertical-align: top; width: 50%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name of
each exchange on which registered</font></div>
</td>
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<td style="vertical-align: top; width: 50%;">
<div style="text-align: center; margin-left: 0px; margin-right: 42px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable</font></div>
</td>
<td style="vertical-align: top; width: 50%;">
<div style="text-align: center; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>

<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Securities
registered or to be registered pursuant to Section 12(g) of the Act
Common shares, no par value</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Securities for
which there is a reporting obligation pursuant to Section 15(d) of
the Act.</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">None</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Indicate the number
of outstanding shares of each of the issuer's classes of capital or
common stock as of the close of the period covered by the annual
report:</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">25,477,776 common
shares as of July 31, 2020</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Indicate by check
mark if the Registrant is a well-known seasoned issuer, as defined
in Rule 405 of the Securities Act.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center">
<table cellpadding="0" cellspacing="0" style="text-align: center; font-family: inherit; font-size: inherit; width: 50%; margin: 0px auto;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Yes</font>
<font style="font-family: Times New Roman, Times, Serif"><font style="font-size: 13px">[&#xA0;&#xA0;]</font></font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">No [X]</font></div>
</td>
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</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font>&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">If this report is
an annual or transition report, indicate by check mark if the
Registrant is not required to file reports pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934.</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Yes</font>
<font style="font-family: Times New Roman, Times, Serif"><font style="font-size: 13px">[&#xA0;&#xA0;]</font></font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">No [X]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
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</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">Indicate by check
mark whether Registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that
Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90
days.</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Yes</font>
<font style="font-family: Times New Roman, Times, Serif"><font style="font-size: 13px">[X]</font></font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">No
[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
</tr></table>
</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">Indicate by check
mark whether the registrant has submitted electronically and posted
on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of
Regulation S-T (&#xA7;232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was
required to submit and post such files).</font></div>

<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Yes</font>
<font style="font-family: Times New Roman, Times, Serif">[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">No [X]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
</tr></table>
</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">Indicate by check
mark whether the Registrant is a large accelerated filer, an
accelerated filer, or non-accelerated filer. See definition of
&#x201C;accelerated filer&#x201D; and &#x201C;large accelerated
filer&#x201D; in Rule 126-2 of the Exchange Act.</font></div>

<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 33%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Large Accelerated
Filer [&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 34%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Accelerated Filer
[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 33%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Non-Accelerated
Filer [X]</font></div>
</td>
</tr></table>
</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">Indicate by check
mark which basis of accounting the registrant has used to prepare
the financial statements included in this
filing:</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 21%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">U.S. GAAP
[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 65%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">International
Financial Reporting Standards as issued [X]<br>
by the International Accounting Standards Board</font></div>
</td>
<td style="width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Other
[&#xA0;&#xA0;]</font></div>
</td>
</tr></table>
</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">If
&#x201C;Other&#x201D; has been checked in response to the previous
question, indicate by check mark which financial statement item the
registrant has elected to follow.</font><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Item 17
[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">Item 18
[&#xA0;&#xA0;]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
</tr></table>
</div>
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"><font style="font-size: 13px; font-family: Times New Roman">If this is an
annual report, indicate by check mark whether the Registrant is a
shell company (as defined in Rule 12b-2 of the Exchange
Act):</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px">
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit;width: 100%;">
<tr style="vertical-align: top">
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Yes</font>
<font style="font-family: Times New Roman, Times, Serif"><font style="font-size: 13px">[&#xA0;&#xA0;]</font></font></div>
</td>
<td style="width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">No [X]</font></div>
</td>
<td style="width: 25%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-family: Times New Roman, Times, Serif">&#xA0;</font></div>
</td>
</tr></table>
</div>
&#xA0;&#xA0;</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: rgb(204, 238, 255);">
<td colspan="2" style="vertical-align: bottom;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">GENERAL</font>
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
5</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CURRENCY AND MEASUREMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
7</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="2" style="vertical-align: bottom; width: 88%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
NOTE ON FORWARD LOOKING STATEMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
7</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 1</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
7</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 2</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
OFFER STATISTICS AND EXPECTED TIMETABLE</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
8</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 3</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
KEY INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
8</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SELECTED FINANCIAL DATA</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
8</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CAPITALIZATION AND INDEBTEDNESS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
9</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
REASONS FOR THE OFFER AND USE OF PROCEEDS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
9</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
RISK FACTORS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
9</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 4</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
INFORMATION ON THE COMPANY</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
14</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
HISTORY AND DEVELOPMENT OF THE COMPANY</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
14</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
BUSINESS OVERVIEW</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
14</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MINERAL PROPERTIES AND EXPLORATION ACTIVITIES AND
PLANS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
15</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ORGANIZATIONAL STRUCTURE</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">E.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PROPERTY, PLANT AND EQUIPMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">F.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CURRENCY</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 4A</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
UNRESOLVED STAFF COMMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 5</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
OPERATING AND FINANCIAL REVIEW AND PROSPECTS <font style="color: #000000; font-family: Times New Roman; font-size: 13px">OVERVIEW</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%"><br></td>
<td style="vertical-align: bottom; width: 71%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
16</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
OPERATING RESULTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
17</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
LIQUIDITY AND CAPITAL RESOURCES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
18</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
RESEARCH EXPENDITURES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
18</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
TREND INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">E.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
OFF &#x2013; BALANCE SHEET ARRANGEMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">F.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">G.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SAFE HARBOR</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 6</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DIRECTORS AND SENIOR MANAGEMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
19</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
COMPENSATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
20</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
BOARD PRACTICES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
21</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EMPLOYEES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">E.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SHARE OWNERSHIP</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
25</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 7</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
25</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MAJOR SHAREHOLDERS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
25</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
RELATED PARTY TRANSACTIONS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
26</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
INTERESTS OF EXPERTS AND COUNSEL</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
27</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 8</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
FINANCIAL INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
28</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL
INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
28</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SIGNIFICANT CHANGES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
28</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 9</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
THE OFFER AND LISTING</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
28</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
OFFER AND LISTING DETAILS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
28</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PLAN OF DISTRIBUTION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
29</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MARKETS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
29</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SELLING SHAREHOLDERS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
29</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">E.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DILUTION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
29</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">F.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EXPENSES OF THE ISSUE</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
30</font></div>
</td>
</tr></table>
</div>
<div style="null"><font>&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="null"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 10</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ADDITIONAL INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
30</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SHARE CAPITAL</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
30</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MEMORANDUM AND ARTICLES OF ASSOCIATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
30</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MATERIAL CONTRACTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
32</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EXCHANGE CONTROLS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
32</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">E.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
TAXATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
32</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">F.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DIVIDENDS AND PAYING AGENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
40</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">G.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
STATEMENT BY EXPERTS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">H.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DOCUMENTS ON DISPLAY</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">I.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
SUBSIDIARY INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 11</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
TRANSACTION RISK AND CURRENCY RISK MANAGEMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EXCHANGE RATE SENSITIVITY</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">C.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
INTEREST RATE RISK AND EQUITY PRICE RISK</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">D.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
COMMODITY PRICE RISK</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 12</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 13</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
41</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 14</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
42</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 15</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CONTROLS AND PROCEDURES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
42</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">A.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
DISCLOSURE CONTROLS AND PROCEDURES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
42</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">B.</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
42</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 88%">
<div style="text-align: left; margin-left: 204px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
42</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="2" style="vertical-align: bottom; width: 88%">
<div style="text-align: left; margin-left: 204px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">LIMITATIONS
OF CONTROLS AND PROCEDURES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
43</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
[RESERVED]</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
43</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16A</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
AUDIT COMMITTEE FINANCIAL EXPERT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
43</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16B</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CODE OF ETHICS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
43</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16C</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PRINCIPAL ACCOUNTANT FEES AND SERVICES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
44</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16D</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT COMMITTEES</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
44</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16E</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
44</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16F</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
44</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16G</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
CORPORATE GOVERNANCE</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
44</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 16H</font></div>
</td>
<td style="vertical-align: bottom; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
MINE SAFETY DISCLOSURE</font></div>
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45</font></div>
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ITEM 17</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
FINANCIAL STATEMENTS</font></div>
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<td style="vertical-align: bottom; width: 12%">
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45</font></div>
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<td style="vertical-align: bottom; width: 18%">
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 18</font></div>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
FINANCIAL STATEMENTS</font></div>
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<td style="vertical-align: bottom; width: 12%">
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45</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
ITEM 19</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
EXHIBITS</font></div>
</td>
<td style="vertical-align: bottom; width: 12%">
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45</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="ftr">
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</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; color: #0000FF; font-family: Times New Roman; font-size: 13px">
GENERAL</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">In this
Annual Report on Form 20-F, all references to "we", the
"Company&#x201D;, or "Quartz Mountain" refer to Quartz Mountain
Resources Ltd. and its consolidated subsidiary.</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
Company uses the Canadian dollar as its reporting currency. All
references in this document to "dollars" or "$" are expressed in
Canadian dollars, unless otherwise indicated. See also <a href="#_bookmark5"><font style="text-decoration: underline; color: #0000FF">Item 3 &#x2013;
"Key</font></a><font style="color: #0000FF">&#xA0;</font><a href="#_bookmark5"><font style="text-decoration: underline; color: #0000FF">Information"</font><font style="color: #0000FF">&#xA0;</font></a>for
more detailed currency and conversion information.</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Except
as noted, the information set forth in this Annual Report is as of
November 20, 2020 and all information included in this document
should only be considered correct as of such date.</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Certain
terms used herein are defined as follows:</font></div>
<div>
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<tr style="vertical-align: top">
<td style="width: 20%; border-top: solid 2px black; border-left: solid 2px black; border-right: solid 2px black; padding-bottom: 5px; border-bottom: 2px solid black">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mineral
Reserve</font></div>
</td>
<td style="width: 80%; border-top: solid 2px black; border-right: solid 2px black; padding-bottom: 5px; border-bottom: 2px solid black">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Securities and
Exchange Commission Industry Guide 7 &#x201C;Description of Property
by Issuers Engaged or to be Engaged in Significant Mining
Operations&#x201D; (under the United States Securities Exchange Act
of 1934, as amended) defines a &#x2018;reserve&#x2019; as that part
of a mineral deposit which could be economically and legally
extracted or produced at the time of the reserve determination.
Reserves consist of:</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(1) Proven
(Measured) Reserves. Reserves for which: (a) quantity is computed
from dimensions revealed in outcrops, trenches, workings or drill
holes; grade and/or quality are computed from the results of
detailed sampling; and (b) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so
well defined that size, shape, depth and mineral content of
reserves are well-established.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(2) Probable
(Indicated) Reserves. Reserves for which quantity and grade and/or
quality are computed from information similar to that used for
proven (measured) reserves, but the sites for inspection, sampling
and measurement are farther apart or are otherwise less adequately
spaced. The degree of assurance, although lower than that for
proven (measured) reserves, is high enough to assume continuity
between points of observation.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As a reporting
issuer under the Securities Acts of British Columbia and Alberta,
the Company is subject to National Instrument 43-101
&#x201C;Standards of Disclosure for Mineral Projects&#x201D; of the
Canadian Securities Administrators. Securities and Exchange
Commission Industry Guide 7, as interpreted by Securities and
Exchange Commission Staff, applies standards that are different
from those prescribed by National Instrument 43-101 in order to
classify mineralization as a reserve. In particular, Mineral
Reserves under National Instrument 43-101 are defined as the
economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted and is
defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors, which
are considerations used to convert Mineral Resources to Mineral
Reserves and include, but are not restricted to, mining,
processing, metallurgical, infrastructure, economic, marketing,
legal, environmental, social and governmental factors. Such studies
demonstrate that, at the time of reporting, extraction could
reasonably be justified. The reference point at which Mineral
Reserves are defined, usually the point where the ore is delivered
to the processing plant, must be stated. It is important that, in
all situations where the reference point is different, such as for
a saleable product, a clarifying statement is included to ensure
that the reader is fully informed as to what is being reported. The
public disclosure of a Mineral Reserve must be demonstrated by a
Pre-Feasibility Study or Feasibility Study.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Under the standards
of the Securities and Exchange Commission, mineralization may not
be classified as a &#x201C;reserve&#x201D; unless the determination
has been made that the mineralization could be economically and
legally produced or extracted at the time the reserve determination
is made. Among other things, all necessary permits would be
required to be in hand or issued imminently in order to classify
mineralized material as reserves under Securities and Exchange
Commission Industry Guide 7. Accordingly, mineral reserve estimates
established in accordance with National Instrument 43-101 may not
qualify as &#x201C;reserves&#x201D; under SEC standards. The Company
does not currently have any mineral deposits that have been
classified as reserves.</font></div>
</td>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;"><br></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px; padding-top: 6px; padding-bottom: 6px"></div>
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<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="text-align: left; vertical-align: top">
<td style="width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;</font></div>
</td>
<td style="width: 34%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>4</font></div>
</td>
<td style="width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;</font></div>
</td>
</tr></table>
</div>
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<div id="ftr">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">5</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>

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<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<br></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 13px; text-indent: 0px">
<br></div>
</div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px; margin: 0px auto 0px 0px;">
<tr>
<td style="vertical-align: top; width: 20%; border-left: 0.5pt solid rgb(0, 0, 0); border-top: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 33px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mineral
Resource</font></div>
</td>
<td style="vertical-align: top; width: 80%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 0.5pt 0.5pt 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">National Instrument
43-101 &#x201C;Standards of Disclosure for Mineral Projects&#x201D;
issued by the Canadian Securities Administrators defines a
&#x201C;mineral Resources as a concentration or occurrence of solid
material of economic interest in or on the Earth&#x2019;s crust in
such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade or quality, continuity and other geological characteristics
of a Mineral Resource are known, estimated, or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated, and Measured
categories. An Inferred Mineral Resource has a lower level of
confidence that that applied to an Indicated Mineral Resource, and
an Indicated Mineral resource has a lower level of confidence than
that applied to a Measured Mineral Resource.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(1)&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;An
Inferred Mineral Resource is that part of a Mineral Resource for
which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity; it has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to a
Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 15px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(2)&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;An
Indicated Mineral Resource is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit. Geological evidence is derived from adequately
detailed and reliable exploration, sampling and testing and is
sufficient to assume geological and grade or quality continuity
between points of observation; it has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be
converted to a Probable Mineral Reserve.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 15px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(3)&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;A
Measured Mineral Resource is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are estimated with confidence sufficient to allow
the application of Modifying Factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and reliable
exploration, sampling and testing and is sufficient to confirm
geological and grade or quality continuity between points of
observation. It has a higher level of confidence than that applying
to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proven Mineral Reserve or to a
Probable Mineral Reserve.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Industry Guide 7
&#x2013; "Description of Property by Issuers Engaged or to be
Engaged in Significant Mining Operations" of the Securities and
Exchange Commission does not define or recognize resources. In
addition, disclosure of resources using "contained ounces" is
permitted under Canadian regulations; however, the Securities and
Exchange Commission only permits issuers to report mineralization
that does not qualify as a reserve as in place tonnage and grade
without reference to unit measures. As used in this Form 20-F,
"resources" are as defined in National Instrument
43-101.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
above reasons, information in the Company's publicly-available
documents containing descriptions of the Company's mineral deposits
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements
under the United States federal securities laws and the rules and
regulations thereunder.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 20%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 37px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mineral
Symbols</font></div>
</td>
<td style="vertical-align: top; width: 80%; border-left: 0.5pt solid rgb(0, 0, 0); border-right: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 17px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
&#x2013; arsenic; Au &#x2013; gold; Ag &#x2013; silver; Cu &#x2013;
copper; Fe &#x2013; iron; Hg &#x2013; mercury; Mo &#x2013; molybdenum;
Na &#x2013; sodium; Ni &#x2013; nickel; O &#x2013; oxygen; Pd -
palladium; Pt &#x2013; platinum; Pb &#x2013; lead; S &#x2013; sulphur;
Sb &#x2013; antimony; Zn &#x2013; zinc.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 17px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 20%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Net
Smelter Return (NSR)</font></div>
</td>
<td style="vertical-align: top; width: 80%; border-left: 0.5pt solid rgb(0, 0, 0); border-right: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 17px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Monies
received for concentrate delivered to a smelter net of
metallurgical recovery losses, transportation costs, smelter
treatment-refining charges, and penalty charges.</font></div>
</td>
</tr></table>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">6</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10"><br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CURRENCY
AND MEASUREMENT</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">All
currency amounts in this Annual Report are stated in Canadian
dollars unless otherwise indicated. Conversion of metric units into
imperial equivalents is as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #d9d9d9">
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Metric
Units</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Multiply
by</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Imperial
Units</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Hectares</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2.471</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">=
acres</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Meters</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">3.281</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">=
feet</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">kilometers</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.621</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">= miles
(5,280 feet)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Grams</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.032</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">= troy
ounces</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Tons</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.102</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">= short
tons (2,000 lbs.)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">grams
per ton</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.029</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">= troy
ounces per ton</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark2"><!--anchor--></a>NOTE ON FORWARD LOOKING
STATEMENTS</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">This
Annual Report on Form 20-F contains statements that constitute
"forward-looking statements". Any statements that are not
statements of historical facts may be deemed forward-looking
statements. These statements appear in a number of different places
in this Annual Report and, in some cases, can be identified by
words such as "anticipates", "estimates", "projects", "expects",
"intends", "believes", "plans", or their negatives or other
comparable words. The forward-looking statements, including the
statements contained in <a href="#_bookmark9"><font style="text-decoration: underline; color: #0000FF">Item 3D "Risk
Factors",</font></a> <a href="#_bookmark12"><font style="text-decoration: underline; color: #0000FF">Item 4B
"Business</font></a><font style="color: #0000FF">&#xA0;</font><a href="#_bookmark12"><font style="text-decoration: underline; color: #0000FF">Overview"</font></a><a href="#_bookmark18"><font style="text-decoration: underline">,</font>
<font style="text-decoration: underline; color: #0000FF">Item 5
"Operating and Financial Review and Prospects"</font><font style="color: #0000FF">&#xA0;</font></a>and <a href="#_bookmark58"><font style="text-decoration: underline; color: #0000FF">Item 11 "Quantitative
and</font></a><font style="color: #0000FF">&#xA0;</font><a href="#_bookmark58"><font style="text-decoration: underline; color: #0000FF">Qualitative
Disclosures About Market Risk",</font></a> involve known and
unknown risks, uncertainties and other factors which may cause the
Company's actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such statements.
Forward-looking statements include statements regarding the outlook
for the Company's future operations, plans and timing for the
Company's exploration programs, statements about future market
conditions, supply and demand conditions, forecasts of future costs
and expenditures, the outcome of legal proceedings, and other
expectations, intentions and plans that are not historical
facts.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">You are
cautioned that forward-looking statements are not guarantees. The
risks and uncertainties that could cause the Company's actual
results to differ materially from those expressed or implied by the
forward-looking statements include:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">changes in general
economic and business conditions, including commodity prices, costs
associated with mineral exploration and development, changes in
interest rates and the availability of financing on reasonable
terms;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">natural phenomena,
including geological and meteorological phenomena;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">actions by
government authorities, including changes in government regulation
and permitting requirements;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">uncertainties
associated with legal proceedings;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">future decisions by
management in response to changing conditions;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the Company's
ability to execute prospective business plans; and</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">misjudgments in the
course of preparing forward-looking statements.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
Company advises you that these cautionary remarks expressly
qualify, in their entirety, all forward-looking statements
attributable to Quartz Mountain or persons acting on the Company's
behalf. The Company assumes no obligation to update the Company's
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such statements.
You should carefully review the cautionary statements and risk
factors contained in this and other documents that the Company
files from time to time with the Securities and Exchange
Commission.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM
1</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0; IDENTITY OF
DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable for an annual report.</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">7</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 100%"><br></td>
</tr></table>
</div>
</div>
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 100%"><br></td>
</tr></table>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px;">
&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font>
<table cellpadding="0" cellspacing="0" style="text-align: justify; width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 100%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; color: #0000FF; font-family: Times New Roman; font-size: 13px">
ITEM 2</font><font style="font-weight: bold; color: #0000FF; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;
OFFER STATISTICS AND EXPECTED TIMETABLE</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable for an annual report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<a name="_bookmark5"><!--anchor--></a><font style="color: #0000FF">ITEM 3</font>&#xA0;&#xA0;&#xA0;&#xA0; KEY
INFORMATION</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark6"><!--anchor--></a>A.&#xA0; SELECTED FINANCIAL
DATA</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
following tables summarize selected financial data for the Company
(stated in Canadian dollars) prepared, in respect of the years
ended July 31, 2020 and July 31, 2019, in accordance with
International Financial Reporting Standards (&#x201C;IFRS&#x201D;) as
issued by the International Accounting Standards Board
(&#x201C;IASB&#x201D;) (&#x201C;IFRS-IASB&#x201D;).</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">As
permitted by SEC Release No. 33-8879 &#x201C;Acceptance from Foreign
Private Issuers of Financial Statements Prepared in Accordance with
International Reporting Standards without Reconciliation to U.S.
GAAP&#x201D;, the Company includes selected financial data prepared
in compliance with IFRS-IASB without reconciliation to U.S.
GAAP.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
selected financial data of the Company for the fiscal years
presented was derived from the consolidated financial statements of
the Company that have been audited by Davidson &amp; Company LLP,
independent Registered Public Accountants, as indicated in their
audit report which is included at Exhibit 99.1 in this Annual
Report.</font></div>
<div style="text-align: justify; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
auditors conducted their audits in accordance with United States
and Canadian generally accepted auditing standards, and the
standards of the Public Company Accounting Oversight Board (United
States).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:50%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Year ended July
31, 2020</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Year ended July
31, 2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Year ended July
31, 2018</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Year ended July
31, 2017</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Year ended July
31, 2016</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Sales
revenue</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:15px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Loss (income) from
operating expenses</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">249,442</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">149,170</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">236,319</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">201,081</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">322,605</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:14px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Loss (income) and
comprehensive loss (income)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,524,763</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">153,715</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">234,467</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">199,953</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(92,549</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:11px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Basic loss
(earnings) per common share</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.16</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:36px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Diluted loss
(earnings) per common share</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.13</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.02</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Dividends per
share</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Working
capital</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">138,550</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,995,655</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,841,940</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(3,066,336</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2,866,383</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Total
assets</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">218,559</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">80,562</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">75,034</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">232,153</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">313,168</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholder&#x2019;s</font></div>
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">deficiency
(equity)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(138,551</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,995,654</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,841,939</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,066,335</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,866,382</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Share
capital</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">27,158,423</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">26,548,981</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">26,548,981</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">26,090,118</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">26,090,118</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Shares
outstanding</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">25,477,776</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,347,137</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,347,137</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,929,989</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,929,989</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Currency
and Exchange Rates</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 20, 2020 the rate of exchange of the Canadian dollar,
based on the daily noon rate in Canada as published by the Bank of
Canada, was US$1 = Canadian $1.3083.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 6px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following tables set out the exchange rates, based on the daily
noon rates in Canada as published by Bank of Canada for the
conversion of Canadian dollars per U.S. dollar.</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">8</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:50%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="5" rowspan="1" style="vertical-align:bottom;width:50%;">
<div><font style="text-align: left; vertical-align: bottom; width: 2%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 96%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">For
the fiscal year ended July 31, (Canadian Dollars per U.S.
Dollar)</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 2%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">2020</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;">2016</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">End of
Period</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3404</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3193</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3008</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2485</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3056</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Average for the
Period <font style="font-size: 13px">(1)</font></font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3463</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3235</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2760</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3237</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3285</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">High for the
Period</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.4496</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3641</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3137</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3743</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.4661</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Low for the
Period</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2970</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2815</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2314</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2447</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.2497</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(1) The
average rate for each period is the average of the daily noon rates
on the last day of each month during the period.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:100%;">
<div style="padding-bottom: 2px;"><font style="text-align: left; vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:94%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Monthly High and Low
Exchange Rate (Canadian Dollars per U.S. Dollar)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">Month</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">High</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0); font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Low</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">October
2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3349</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3122</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">September
2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3396</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3055</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">August
2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3377</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3042</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">July
2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3616</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3360</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">June
2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3682</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1.3383</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CAPITALIZATION
AND INDEBTEDNESS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">REASONS
FOR THE OFFER AND USE OF PROCEEDS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark9"><!--anchor--></a>D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RISK
FACTORS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
risk factors associated with the principal business of the Company
are discussed below. The Company does not currently hold any
mineral properties but is looking for new opportunities. If it
acquires a new mineral property(s), the Company would be subject to
the highly speculative nature of the resources industry
characterized by the requirement for large capital investments from
an early stage and a very small probability of finding economic
mineral deposits. In addition to the general risks of mining, there
are country-specific risks, including currency, political, social,
permitting and legal risk. An investor should carefully consider
the risks described below and the other information that Quartz
Mountain furnishes to, or files with, the Securities and Exchange
Commission and with Canadian securities regulators before investing
in Quartz Mountain's common shares, and should not consider an
investment in Quartz Mountain unless the investor is capable of
sustaining an economic loss of the entire investment. The Company's
actual exploration and operating results may be very different from
those expected as at the date of this MD&amp;A.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Going
Concern Assumption</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's financial statements have been prepared assuming the
Company will continue on a going concern basis. However, unless
additional funding is obtained, this assumption will have to
change. The Company has positive working capital, and incurred
losses since inception. Failure to continue as a going concern
would require that Quartz Mountain's assets and liabilities be
restated on a liquidation basis, which could differ significantly
from the going concern basis.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">9</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Additional
Funding Requirements</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Further
development of the Company's continued operations will require
additional capital. The Company currently does not have sufficient
funds to explore the properties it holds. It is possible that the
financing required by the Company will not be available, or, if
available, will not be available on acceptable terms. If the
Company does issue treasury shares to finance its operations or
expansion plans, shareholders will suffer dilution of their
investment and control of the Company may change. If adequate funds
are not available, or are not available on acceptable terms, the
Company will not be able to remain in business. In addition, a
positive production decision at any of the Company's current
projects or any other development projects acquired in the future
will require significant resources and funding for project
engineering and construction. Accordingly, any development of the
Company's properties depends upon the Company's ability to obtain
financing through debt financing, equity financing, the joint
venturing, or disposition of its current projects, or other means.
There is no assurance that the Company will be successful in
obtaining financing for these or other purposes, including for
general working capital.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Future
Profits/Losses and Production Revenues/Expenses</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no history of mining operations or earnings, and
expects that its losses and negative cash flow will continue for
the foreseeable future. The Company does not currently hold a
mineral property and there can be no assurance that the Company
will, if needed, be able to acquire a property(s) of sufficient
technical merit to represent a compelling investment opportunity.
If the Company is unable to acquire a property(s), its entire
prospects will rest solely with its current net smelter royalty
interest in the Angel Camp Project and accordingly, the risk of
being unable to identify a mineral deposit will be higher than if
the Company had additional properties to explore. There can be no
assurance that the Company will ever be profitable in the future.
The Company's operating expenses and capital expenditures may
increase in subsequent years as consultants, personnel and
equipment associated with advancing exploration, development and
commercial production of any properties that the Company may
acquire are added. The amounts and timing of expenditures will
depend on the progress of on-going exploration, the results of
consultants' analyses and recommendations, the rate at which
operating losses are incurred, the execution of any joint venture
agreements with strategic partners, and the Company's acquisition
of a property(s) and other factors, many of which are beyond the
Company's control. The Company does not expect to receive revenues
from operations in the foreseeable future, and expects to incur
losses unless and until such time as it acquires a property(s),
commence commercial production, and generate sufficient revenues to
fund its continuing operations. The development of any properties
the Company may acquire will require the commitment of substantial
resources to conduct the time-consuming exploration and development
of properties. The Company anticipates that it would retain any
cash resources and potential future earnings for the future
operation and development of the Company's business. The Company
has not paid dividends since incorporation and the Company does not
anticipate paying any dividends in the foreseeable future. There
can be no assurance that the Company will generate any revenues or
achieve profitability. There can be no assurance that the
underlying assumed levels of expenses will prove to be accurate. To
the extent that such expenses do not result in the creation of
appropriate revenues, the Company's business will be materially
adversely affected. It is not possible to forecast how the business
of the Company will develop.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Exploration,
Development and Mining Risks</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Resource
exploration, development, and operations are highly speculative,
characterized by a number of significant risks, which even a
combination of careful evaluation, experience and knowledge may not
reduce, including among other things, unsuccessful efforts
resulting not only from the failure to discover mineral deposits
but from finding mineral deposits which, though present, are
insufficient in quantity and quality to return a profit from
production. Few properties that are explored are ultimately
developed into producing mines. Unusual or unexpected formations,
formation pressures, fires, power outages, labor disruptions,
flooding, explosions, cave-ins, landslides, and the inability to
obtain suitable or adequate machinery, equipment, or labor are
other risks involved in the operation of mines and the conduct of
exploration programs. The Company will rely upon consultants and
others for exploration, development, construction, and operating
expertise. Substantial expenditures are required to establish
mineral resources and mineral reserves through drilling, to develop
metallurgical processes to extract the metal from mineral
resources, and in the case of new properties, to develop the mining
and processing facilities and infrastructure at any site chosen for
mining.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
assurance can be given that minerals will be discovered in
sufficient quantities to justify commercial operations or that
funds required for development can be obtained on a timely basis.
Whether a mineral deposit will be commercially viable depends on a
number of factors, some of</font> <font style="font-family: Times New Roman; font-size: 13px">which are: the
particular attributes of the deposit, such as size, grade and
proximity to infrastructure; metal prices, which are highly
cyclical; and government regulations, including regulations
relating to prices, taxes, royalties, land tenure, land use,
importing and exporting of minerals, and environmental protection.
The exact effect of these factors cannot accurately be predicted,
but the combination of these factors may result in the Company not
receiving an adequate return on invested capital.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">10</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Permits
and Licenses</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company acquires a new mineral property(s), its operations would
require licenses and permits from various governmental authorities.
There can be no assurance that the Company will be able to obtain
all necessary licenses and permits which may be required to carry
out exploration and development for the Company&#x2019;s
Projects.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Changes
in Local Legislation or Regulation</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Any
mining and processing operations that may be acquired and any
exploration activities that might be conducted would be subject to
extensive laws and regulations governing the protection of the
environment, exploration, development, production, exports, taxes,
labor standards, occupational health, waste disposal, toxic
substances, mine and worker safety, protection of endangered and
other special status species and other matters. The Company's
ability to obtain permits and approvals and to successfully operate
in particular communities may be adversely impacted by real or
perceived detrimental events associated with the Company's
activities or those of other mining companies affecting the
environment, human health and safety of the surrounding
communities. Delays in obtaining or failure to obtain government
permits and approvals may adversely affect the Company's
operations, including its ability to explore or develop properties,
commence production or continue operations. Failure to comply with
applicable environmental and health and safety laws and regulations
may result in injunctions, fines, suspension, or revocation of
permits and other penalties. The costs and delays associated with
compliance with these laws, regulations and permits could prevent
the Company from proceeding with the development of a project or
the operation or further development of a mine or increase the
costs of development or production and may materially adversely
affect the Company's business, results of operations or financial
condition. The Company may also be held responsible for the costs
of addressing contamination at the site of current or former
activities or at third party sites. The Company could also be held
liable for exposure to hazardous substances.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Environmental
Matters</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
the operations that the Company might acquire would be subject to
environmental regulations, which can make operations expensive or
prohibit them altogether. The Company may be subject to potential
risks and liabilities associated with pollution of the environment
and the disposal of waste products that could occur because of its
mineral exploration, development, and production. In addition,
environmental hazards may exist on a property in which the Company
directly or indirectly holds an interest, which are unknown to the
Company at present and have been caused by previous or existing
owners or operators of the Company's projects. Environmental
legislation provides for restrictions and prohibitions on spills,
releases or emissions of various substances produced in association
with certain mining industry operations that would result in
environmental pollution. A breach of such legislation may result in
the imposition of fines and penalties, or the requirement to remedy
environmental pollution, which would reduce funds otherwise
available to the Company and could have a material adverse effect
on the Company. If the Company is unable to remedy an environmental
problem, it could be required to suspend operations or undertake
interim compliance measures pending completion of the required
remedy, which could have a material adverse effect on the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is no assurance that future changes in environmental regulation, if
any, will not adversely affect the Company's operations. There is
also a risk that the environmental laws and regulations may become
more onerous, making the Company's operations more expensive. Many
of the environmental laws and regulations will require the Company
to obtain permits for its activities. The Company will be required
to update and review its permits from time to time, and may be
subject to environmental impact analyses and public review
processes prior to approval of the additional activities. It is
possible that future changes in applicable laws, regulations, and
permits or changes in their enforcement or regulatory
interpretation could have a significant impact on some portion of
the Company's business, causing those activities to be economically
re-evaluated at that time.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Groups
Opposed to Mining May Interfere with the Company's Efforts to
Explore and Develop its Properties</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Organizations
opposed to mining may be active in the regions in which the Company
conducts its exploration activities. Although the Company intends
to comply with all environmental laws and maintain good relations
with local communities, there is still the possibility that those
opposed to mining will attempt to interfere with the development of
any property(s) the Company might acquire. Such interference could
have an impact on the Company's ability to explore and develop its
properties in a manner that is most efficient or appropriate, or at
all and any such impact could have a material adverse effect on the
Company's financial condition and the results of its
operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Market
for Securities and Volatility of Share Price</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
can be no assurance that an active trading market in the Company's
securities will be established or sustained. The market price for
the Company's securities is subject to wide fluctuations. Factors
such as announcements of exploration results, as well as market
conditions in the industry or the economy as a whole, may have a
significant adverse impact on the market price of the securities of
the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
stock market has from time to time experienced extreme price and
volume fluctuations that have often been unrelated to the operating
performance of particular companies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Conflicts
of Interest</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's directors and officers may serve as directors or officers
of other companies, joint venture partners, or companies providing
services to the Company or they may have significant shareholdings
in other companies. Situations may arise where the directors and/or
officers of the Company may be in competition with the Company. Any
conflicts of interest will be subject to and governed by the law
applicable to directors' and officers' conflicts of interest. In
the event that such a conflict of interest arises at a meeting of
the Company's directors, a director who has such a conflict will
abstain from voting for or against the approval of such
participation or such terms. In accordance with applicable laws,
the directors of the Company are required to act honestly, in good
faith and in the best interests of the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">General
Economic Conditions</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Global
financial markets have experienced a sharp increase in volatility
during the last few years. Market conditions and unexpected
volatility or illiquidity in financial markets may adversely affect
the prospects of the Company and the value of the Company's
shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Reliance
on Key Personnel</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is dependent on the continued services of its senior
management team, and its ability to retain other key personnel. The
loss of such key personnel could have a material adverse effect on
the Company. There can be no assurance that any of the Company's
employees will remain with the Company or that, in the future, the
employees will not organize competitive businesses or accept
employment with companies competitive with the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
can be no assurance that the Company will be able to attract,
train, or retain qualified personnel in the future, which would
adversely affect its business.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Competition</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
resources industry is highly competitive in all its phases, and the
Company will compete with other mining companies, many of which
have greater financial, technical, and other resources. Competition
in the mining industry is primarily for attractive mineral rich
properties capable of being developed and producing economically;
the technical expertise to find, develop, and operate such
properties; the labor to operate the properties; and the capital
for the purpose of funding such properties. Many competitors not
only explore for and mine certain minerals, but also conduct
production and marketing operations on a worldwide basis. Such
competition may result in the Company being unable to acquire
desired properties, to recruit or retain qualified employees or to
acquire the capital necessary to fund its operations and develop
any property(s) the Company might acquire. The Company's inability
to compete with other mining companies for these resources could
have a materially adverse effect on the Company's results of
operation and its business.</font></div>
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</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><br></font>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Uninsurable
Risks</font></div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In the
course of exploration, development and production of mineral
properties, certain risks, and in particular, unexpected or unusual
geological operating conditions including rock bursts, cave ins,
fires, flooding and earthquakes may occur. It is not always
possible to fully insure against such risks and the Company may
decide not to take out insurance against such risks because of high
premiums or other reasons.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">The
Mineral Property Underlying the Company's Net Smelter Return
Royalty Interest Contains no Known Ore</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company holds a 1% net smelter return ("NSR") royalty interest on
the Quartz Mountain Property (recently renamed "Angel's Camp"), an
exploration stage prospect in Oregon. The Company's interest in the
property will be limited to any future NSR that would be
forthcoming only if or when any mining commences on the property.
There is currently no known body of ore on the property. Extensive
additional exploration work will be required to ascertain if any
mineralization may be economic.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Likely
PFIC status has consequences for United States
investors</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Potential investors
who are U.S. taxpayers should be aware that the Company expects to
be classified for U.S. tax purposes as a passive foreign investment
company ("PFIC") for the current fiscal year, and may also have
been a PFIC in prior years and may be a PFIC in future years. If
the Company is a PFIC for any year during a U.S. taxpayer's holding
period, then such U.S. taxpayer generally will be required to treat
any so-called "excess distribution" on its common shares, or any
gain realized upon a disposition of common shares, as ordinary
income which would be taxed at the shareholder's highest marginal
rates and to pay an interest charge on a portion of such
distribution or gain, unless the taxpayer has made a timely
qualified electing fund ("QEF") election or a mark-to-market
election with respect to the shares of the Company. In certain
circumstances, the sum of the tax and the interest charge may
exceed the amount of the excess distribution received, or the
amount of proceeds of disposition realized, by the taxpayer. A U.S.
taxpayer who makes a QEF election generally must report on a
current basis its share of the Company's net capital gain and
ordinary earnings for any year in which the Company is a PFIC,
whether or not the Company distributes any amounts to its
shareholders. A U.S. taxpayer who makes the mark-to-market election
generally must include as ordinary income each year the excess of
the fair market value of the common shares over the taxpayer's tax
basis therein. See also <a href="#_bookmark53"><font style="text-decoration: underline; color: #0000FF">Item 10E &#x2013;
"Passive Foreign Investment Company</font></a>".</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Potential investors
should also note that recently enacted legislation may require U.S.
shareholders to report their interest in a PFIC on an annual basis.
US shareholders of the Company should consult their tax advisors as
to these reporting requirements as well as the consequences of
investing in the Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Penny
stock classification</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Penny
stock classification could affect the marketability of the
Company's common stock and shareholders could find it difficult to
sell their stock</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
penny stock rules in the United States require a broker-dealer,
prior to a transaction in a penny stock not otherwise exempt from
the rules, to deliver a standardized risk disclosure document that
provides information about penny stocks and the nature and level of
risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the
penny stock, the compensation of the broker-dealer and its
salesperson in the transaction, and monthly account statements
showing the market value of each penny stock held in the customer's
account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer
orally or in writing prior to effecting the transaction and must be
given to the customer in writing before or with the customer's
confirmation.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Further, the penny
stock rules require that prior to a transaction in a penny stock
not otherwise exempt from such rules; the broker-dealer must make a
special written determination that the penny stock is a suitable
investment for the purchaser and receive the purchaser's written
agreement to the transaction. These additional broker-dealer
practice and disclosure requirements may have the effect of
reducing the level of trading activity in the secondary market for
the Company's common shares in the U.S., and shareholders may find
it more difficult to sell their shares.</font></div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><br>
</font>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #0000FF; font-family: Times New Roman; font-size: 13px">
ITEM 4</font><font style="font-weight: bold; color: #0000FF; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;
INFORMATION ON THE COMPANY</font></div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">HISTORY
AND DEVELOPMENT OF THE COMPANY</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Incorporation</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
legal name of the Company is "Quartz Mountain Resources
Ltd."</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain Resources Ltd. was incorporated on August 3, 1982, in
British Columbia, Canada, and it continues to subsist under the
laws of the Province of British Columbia.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company was originally incorporated as Wavecrest Resources Ltd. but
changed its name to Quartz Mountain Gold Corp. on June 18, 1986. On
November 5, 1997, the name of the Company was changed from Quartz
Mountain Gold Corp. to Quartz Mountain Resources Ltd., and the
common shares were consolidated on a ten-old-for-one-new share
basis.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Market
for the Company's Securities</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's common shares were quoted on NASDAQ SmallCap Market in
the United States from September 17, 1987 until May 12, 1994. The
Company's common shares were also listed on the Toronto Stock
Exchange until November 10, 1994. The Company voluntarily
surrendered its listing on the Vancouver Stock
Exchange.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
2000, the Company listed on a newly created Tier 3 of the Canadian
Venture Exchange (now renamed the TSX Venture Exchange ("TSX-V")).
In December 2003, the Company was reclassified as a Tier 2 company
on the TSX-V. On February 17, 2005, the Company transferred its
listing to NEX, a separate board of the TSX-V established in 2003
to provide a new trading forum for listed companies that had fallen
below the TSX-V's continued listing standards, due to low levels of
business activity.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company was relisted on the TSX-V on December 30,
2011.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Currently, the
Company's common shares trade on the TSX-V under the symbol QZM,
and certain broker-dealers in the United States make market in the
Company's common shares on the OTC Grey Market under the symbol
QZMRF.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Offices</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's business office is located at 15th Floor, 1040 West
Georgia Street, Vancouver, British Columbia V6E 4H1; telephone
(604) 684-6365. The Company's registered office is Suite 1500
&#x2013; 1055 West Georgia Street, Vancouver, British Columbia V6E
4N7, telephone (604) 689-9111.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark12"><!--anchor--></a>B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">BUSINESS
OVERVIEW</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">The
Company's Business Strategy and Principal Activities</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain has been in the business of exploring and developing
mineral properties. The Company&#x2019;s activities on the
properties have been primarily focused on ascertaining whether the
properties host commercially viable mineral deposits.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In the
first three years of its existence, the Company was active in the
exploration of small gold and silver prospects in Canada, but none
of these prospects warranted further exploration or development. In
1986, the Company acquired the Quartz Mountain gold property,
located in south central Oregon, and until January 2002, most of
the Company's efforts were expended on the exploration and
maintenance of these claims. The Company's interests in the Quartz
Mountain gold property, and in its other properties, were acquired
by direct purchase, lease, and option, or through joint
ventures.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company sold the Quartz Mountain gold property during 2002, to
Seabridge Resources Ltd. and Seabridge Resources Inc. (collectively
"Seabridge"). Seabridge subsequently changed its name to Seabridge
Gold Inc. At closing, Quartz Mountain received 300,000 Seabridge
common shares, 200,000 Seabridge common share purchase warrants,
US$100,000, and a 1% NSR from any future production on the Quartz
Mountain gold property. The Seabridge warrants were exercised and
all Seabridge common shares held by the Company have been sold. The
Company's interest in the Quartz Mountain gold property is limited
to the 1% NSR royalty. The Company does not expect to generate any
royalty revenue from the Quartz Mountain gold property (renamed
"Angel's Camp" by its subsequent owners) for several years, and it
is not known at this time when any mining will commence, if at all,
on that property.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">14</font></div>
</div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Following the sale
of the Quartz Mountain gold property, the Company continued in its
efforts to find a suitable mineral property for potential
acquisition and exploration during the period of 2002 to
2011.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
December 2011, the Company acquired an option to earn a 100%
interest in the Buck gold-silver property near the town of Houston
in central British Columbia (the &#x201C;Buck Project&#x201D;).
Concurrently with the Buck Project acquisition, the Company
completed a $4.2 million private placement financing and began
trading on the TSX-V. Exploration programs were carried out at Buck
in 2011 and 2012, confirming targets. Difficult financing
conditions for junior companies in 2013 necessitated that the
Company limit its exploration expenditures and prioritize its
property holdings. As a result, Quartz Mountain terminated its
option on the Buck Project in July 2013.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
August 2012, the Company acquired 100% of the Galaxie copper-gold
property in northwestern British Columbia (the &#x201C;Galaxie
Project&#x201D;), and carried out exploration programs in 2012 at
five new prospects within the property as well as at the Gnat
porphyry copper deposit.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain acquired the ZNT Project by utilizing British
Columbia&#x2019;s on-line mineral tenure system in 2012. The ZNT
Project is located 15 kilometers southeast of the town of Smithers,
British Columbia. Exploration in 2012 and 2013 has identified
potential for the discovery of a bulk tonnage silver deposit at
ZNT.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
November 2012, Quartz Mountain entered into an option and joint
venture agreement with Amarc Resources Ltd. (&#x201C;Amarc&#x201D;)
pursuant to which Amarc could earn a 40% ownership interest, with
an option to acquire an additional 10% ownership interest, in the
Galaxie and ZNT Projects. Amarc gained an initial 40% interest in
the Galaxie and ZNT Projects by funding a drilling program at Gnat
porphyry copper deposit at the Galaxie Project in late 2012. In
June 2013, Quartz Mountain and Amarc entered into an amendment
agreement through which Amarc had an option until October 31, 2013
to earn a 60% interest in each of the ZNT and Galaxie properties,
by making certain property expenditures. Amarc earned a 60%
interest in the ZNT Project but earned only a 40% interest in the
Galaxie Project. In April 2014, Amarc terminated joint ventures
with the Company and returned earned interests in the Galaxie and
ZNT Projects in British Columbia and Quartz Mountain owned 100% of
the Galaxie and ZNT Projects.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">After
carrying out exploration in 2012 and 2013, the ZNT Project did not
warrant further work. The mineral claims comprising the property
were allowed to lapse subsequent to the year ended July 31,
2016.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Work
was also conducted at the Galaxie Project in 2012 and 2013 but,
largely because of the prevailing difficult market conditions for
mineral exploration companies, the Company has since been unable to
secure a joint venture or option agreement to further advance
exploration. As a result, during the year ended July 31, 2016,
three mineral claims were returned to a vendor and the remaining
mineral claims comprising the property were allowed to lapse
subsequent to year-end.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is currently investigating new opportunities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not have any operating revenue and anticipates that it
will rely on sales of its equity securities in order to finance its
acquisition and exploration activities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MINERAL
PROPERTIES Angel's Camp Property</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company retains a 1% net smelter return royalty payable to the
Company on any production from the Angel's Camp property located in
Lake County, Oregon. The Angel's Camp property is currently held by
Alamos Gold Inc.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended July 31, 2002, the Company sold 100% of its title,
rights and interest in the Angel's Camp property located in Lake
County, Oregon to Seabridge Resources Inc. ("Seabridge"), which
later changed its name to Seabridge Gold Inc., for 300,000 common
shares of Seabridge (sold in prior years), 200,000 common share
purchase warrants of Seabridge (exercised and sold in prior years),
cash of $100,000, and a 1% net smelter return royalty payable to
the Company on any production from the Angel's Camp
property.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
2003, Seabridge optioned a 50% interest in the property to Quincy
Gold Inc., which later changed its name to Golden Predator Mines
Inc., then to Golden Predator Royalty &amp; Development
Corporation, then to Golden Predator Corporation, and is now named
Americas Bullion Royalty Corp (TSX:AMB).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
April 2012, Orsa Ventures Corp. (&#x201C;Orsa&#x201D;) (TSX-V: ORN)
exercised its option to acquire all of Seabridge's remaining
undivided 50% beneficial joint venture interest in the Angel's Camp
property. In March 2013, Orsa announced it had entered into an
agreement with Americas Bullion Royalty Corp. to acquire, over a
number of years, the 50% of Angel&#x2019;s Camp that it did not own.
Additionally, in March 2013 Orsa announced that it had received
regulatory approval for, and fulfilled closing</font> <font style="font-family: Times New Roman; font-size: 13px">requirements for
the joint venture purchase agreement with Americas Bullion Royalty
Corp. to acquire their 50% joint venture interest in the Angel's
Camp Property.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
September 2013, Alamos Gold Inc. reported the completion of the
acquisition of all of the issued and outstanding common shares of
Orsa Ventures Corp.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">15</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Other
Properties</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">After
carrying out exploration in 2012 and 2013, the ZNT Project did not
warrant further work. The mineral claims comprising the property
lapsed during the year ended July 31, 2016.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Work
was conducted at the Galaxie Project in 2012 and 2013 but, largely
because of the prevailing difficult market conditions for mineral
exploration companies, the Company has since been unable to secure
a joint venture or option agreement to further advance exploration.
As a result, three mineral claims were returned to a vendor and the
remaining mineral claims comprising the property were allowed to
lapse.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is currently investigating new opportunities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">ORGANIZATIONAL
STRUCTURE</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company operates in a single reportable operating segment &#x2013;
the acquisition, exploration, and development of mineral property
interests. The Company is currently focused on the acquisition and
exploration of mineral property interests in Canada, and conducts
most of its business affairs through its Canadian parent
entity.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has two inactive wholly owned subsidiaries, QZMG Resources
Ltd., a Nevada corporation who owns 100% interest in Wavecrest
Resources Inc., a Delaware corporation.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">E.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PROPERTY,
PLANT AND EQUIPMENT</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10"><br></font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no material tangible fixed assets, such as mining
equipment or plant facilities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">F.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CURRENCY</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
currency amounts in this Annual Report are stated in Canadian
dollars unless otherwise indicated (see <a href="#_bookmark6"><font style="text-decoration: underline; color: #0000FF">Item
3</font><font style="color: #0000FF">&#xA0;</font></a>for exchange
rate information).</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 96px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="color: #0000FF">
ITEM 4A</font></font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
UNRESOLVED STAFF COMMENTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 96px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark18"><!--anchor--></a><font style="color: #0000FF">ITEM
5</font>&#xA0;&#xA0;&#xA0;&#xA0;<br></font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="color: #0000FF">
OPERATING AND FINANCIAL REVIEW AND PROSPECTS</font><font style="color: #0000FF">&#xA0;</font>OVERVIEW</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Effective May 27,
2020, the Company completed a forward share split (the &#x201C;Share
Split&#x201D;) on the basis of two additional common shares for
every common share outstanding prior to the Share Split.
Outstanding warrants were adjusted by the same share split ratio.
All references to shares and per share amounts have been
retroactively restated to give effect to the Share
Split.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
fiscal 2020, the Company completed a private placement financing, a
settlement of debt owed to a related party and forward share
split.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's financial statements are prepared on the basis that it
will continue as a going concern. The Company has incurred losses
since inception, and the ability of the Company to continue as a
going concern depends upon its ability to continue to raise
adequate financing and to develop profitable operations. Quartz
Mountain's financial statements do not reflect adjustments, which
could be material, to the carrying values of assets and
liabilities, which may be required should the Company not be able
to continue as a going concern.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion should be read in conjunction with the audited
annual consolidated financial statements for the years ended July
31, 2020, 2019 and 2018 and the related notes accompanying this
Annual Report. The Company prepares its financial statements in
accordance with</font> <font style="font-family: Times New Roman; font-size: 13px">IFRS. The Company
includes selected financial data prepared in compliance with IFRS
without reconciliation to U.S. GAAP.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">16</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CRITICAL
ACCOUNTING POLICIES AND ESTIMATES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
required disclosure is provided in note 2 of the accompanying
audited financial statements as of and for the year ended July 31,
2020, which are presented in Exhibit 99.1 of this Annual Report on
Form 20-F.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark20"><!--anchor--></a>A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">OPERATING
RESULTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Comprehensive
income (loss) for the year ended July 31, 2020 vs.
2019</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company recorded an income from operations of $2,524,763 during the
current fiscal year (2019</font> <font style="font-family: Times New Roman; font-size: 13px">&#x2013; loss of
$153,715). The increase in income in fiscal 2020 was due to the
gain of $2,779,882 on debt settlement.</font> <font style="font-family: Times New Roman; font-size: 13px">$23,275 of property
investigation costs were incurred during the year ended July 31,
2020 (2019 - $nil).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table provides a breakdown of the administration costs
incurred:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 76%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 11px"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-size: 13px">General and
Administration costs</font></font></font></div>
</div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">2020</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">2019</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Administrative
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">77,603</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">50,406</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Insurance</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">35,730</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">31,779</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">IT
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Legal, accounting
and audit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">29,885</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">20,306</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Office and
miscellaneous</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,572</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,245</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Property
investigation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">23,275</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Regulatory, trust
and filing</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">64,233</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">28,682</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholder
communications</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">5,144</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">4,752</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">249,442</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">149,170</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Administrative
costs have increased from 2019 as the Company had several capital
restructuring and financing activities during fiscal 2020 and began
to search for the next mineral project.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Comprehensive
income (loss) for the year ended July 31, 2019 vs.
2018</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company recorded a loss from operations of $149,170 during the
current fiscal year (2018 &#x2013;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$236,319).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 93px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
exploration costs were incurred during the year ended July 31, 2019
and 2018. The following table provides a breakdown of the
administration costs incurred:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 76%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-weight: bold; font-size: 11px;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-weight: bold;">General and
Administration costs</font></div>
</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">2019</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="font-weight: bold; font-size: 11px;"><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold;">
<div><font style="font-family: Times New Roman; font-weight: bold;">2018</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Administrative
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">50,406</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">71,458</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Insurance</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">31,779</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">46,282</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">IT
Services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Legal, accounting
and audit</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">20,306</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">20,400</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Office and
miscellaneous</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,245</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">16,148</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Property
investigation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">24,117</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Regulatory, trust
and filing</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">28,682</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">39,628</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Shareholder
communications</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">4,752</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:5%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">6,286</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:12px;"><font style="font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">149,170</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">236,319</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Administrative
costs have decreased from 2018 in line with reduced spending to
conserve capital.</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">17</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark21"><!--anchor--></a>B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">LIQUIDITY
AND CAPITAL RESOURCES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Historically, the
Company's source of funding has been the issuance of equity
securities for cash, primarily through private placements to
sophisticated investors and institutions. The Company continues
evaluating mineral prospects for potential acquisition and
exploration in British Columbia. The Company's continuing
operations are dependent upon new projects, the ability of the
Company to obtain the necessary financing to complete exploration
of any new projects, the ability to obtain the necessary permits to
explore, develop, and mine new projects, and the future profitable
production of any mine. These material uncertainties raise
substantial doubt on the ability of the Company to continue as a
going concern.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At July
31, 2020, the Company had an accumulated deficit of $27,611,883 and
has a working capital of $138,550.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
January 2016, the Company arranged with Hunter Dickinson Services
Inc. (&#x201C;HDSI&#x201D;) to settle debt owing for services by HDSI
whereby HDSI would forgive debt in the net amount owing at that
time of $3,086,089, if the Company made a cash payment of $180,207
and issued 1,800,000 shares (pre- forward split basis of 600,000
shares) to HDSI. The TSX Venture Exchange approved the transaction
with HDSI, the cash payment has been made, and issuance of the
shares to HDSI was executed in December 2019. Additional debt or
equity financing will be required to fund exploration or
development programs. However, there can be no assurance that the
Company will continue to obtain additional financial resources or
that it will be able to achieve positive cash flows.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Financial market
conditions for junior exploration companies have resulted in very
depressed equity prices. A further and continued deterioration in
market conditions will increase the cost of obtaining capital and
significantly limit the availability of funds to the Company in the
future. Accordingly, management is actively monitoring the effects
of the current economic and financing conditions on the
Company&#x2019;s business and reviewing discretionary spending,
capital projects and operating expenditures, and implementing cash
and cash management strategies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Capital
Resources</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company had no material commitments for capital expenditures as at
July 31, 2020.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no lines of credit or other sources of financing which
have been arranged but are as of yet, unused.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At July
31, 2020, there were no externally imposed capital requirements to
which the Company is subject and with which the Company has not
complied.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Requirement
of Financing</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is in the process of assessing mineral property interests
held by third parties for potential acquisition. The Company's
continuing operations are entirely dependent upon the existence of
economically recoverable mineral reserves, the ability of the
Company to obtain the necessary financing to complete the
exploration and development of these projects, obtaining the
necessary permits to mine, on future profitable production of any
mine and the proceeds from the disposition of the mineral property
interests.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Additional debt or
equity financing will be required to fund additional exploration or
development programs. The Company has a reasonable expectation that
additional funds will be available when necessary to meet ongoing
exploration and development costs. However, there can be no
assurance that the Company will continue to obtain additional
financial resources and/or achieve profitability or positive cash
flows, which raises substantial doubt on the ability of the Company
to continue as a growing concern. If the Company is unable to
obtain adequate additional financing, the Company will be required
to re-evaluate its planned expenditures until additional funds can
be raised through financing activities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no "Purchase Obligations" defined as any agreement to
purchase goods or services that is enforceable and legally binding
on the Company that specifies all significant terms, including
fixed or minimum quantities to be purchased; fixed, minimum or
variable price provisions; and the approximate timing of the
transaction.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RESEARCH
EXPENDITURES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain does not carry out any research or development activities.
Please refer to <a href="#_bookmark20"><font style="text-decoration: underline; color: #0000FF">Item
5A</font></a><font style="color: #0000FF">&#xA0;</font>and <a href="#_bookmark21"><font style="text-decoration: underline; color: #0000FF">Item
5B</font><font style="color: #0000FF">&#xA0;</font></a>above for a
discussion of the expenditures that the Company has incurred in
connection with its business activities.</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">18</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TREND
INFORMATION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not currently hold any properties.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark24"><!--anchor--></a>E.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">OFF
&#x2013; BALANCE SHEET ARRANGEMENTS</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain has no off-balance sheet arrangements.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark25"><!--anchor--></a>F.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TABULAR
DISCLOSURE OF CONTRACTUAL OBLIGATIONS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following obligations existed at July 31, 2020:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 52%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="4" rowspan="1" style="vertical-align: bottom; width: 48%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 2%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 96%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Payments due by
period</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 2%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="margin-left:0px;padding-bottom:2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Total</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">Less than 1
year</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">1-5
years</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;border-left:solid 1px #000000;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block; font-weight: bold; font-size: 11px;">
<div><font style="font-family: Times New Roman; font-weight: bold;">After 5
years</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block; font-weight: bold; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Amounts payable and
other liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,176</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,176</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;border-left:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2013;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; padding-bottom: 2px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Due to a related
party</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">75,832</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">75,832</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;border-left:solid 1px #000000;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; padding-bottom: 2px; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:4px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">80,008</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">80,008</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#x2013;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;border-left:solid 1px #000000;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">&#x2013;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:4px;font-size:13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<br>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no material capital lease or operating lease
obligations. The Company has no "Purchase Obligations", defined as
any agreement to purchase goods or services that is enforceable and
legally binding on the Company that specifies all significant
terms, including: fixed or minimum quantities to be purchased;
fixed, minimum or variable price provisions; and the approximate
timing of the transaction.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">G.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SAFE
HARBOR</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
safe harbor provided in Section 27A of the Securities Act and
Section 21E of the Exchange Act applies to forward-looking
information provided pursuant to <a href="#_bookmark24"><font style="text-decoration: underline; color: #0000FF">
Item 5E</font></a> and <a href="#_bookmark25"><font style="text-decoration: underline; color: #0000FF">Item
5F</font><font style="color: #0000FF">&#xA0;</font></a>above.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 96px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><font style="color: #0000FF">
ITEM 6</font>&#xA0;&#xA0;&#xA0;&#xA0;<br></font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DIRECTORS
AND SENIOR MANAGEMENT Leonie Tomlinson (1964) &#x2013;
Director</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Leonie
Tomlinson is a professional director and experienced business
executive who over the course of her career has advised numerous
private and public companies on investment structuring, corporate
governance, financial reporting, HR matters, and exit
strategy.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ms.
Tomlinson is, or was within the past five years, a director of the
following public companies:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Company</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 24%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Positions
Held</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 21%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">From</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">To</font></font></font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 35%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 24%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td style="vertical-align: top; width: 21%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">December
2017</font></div>
</td>
<td style="vertical-align: top; width: 20%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Matthew
Dickinson (1997) &#x2013; Director</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Matthew
Dickinson is a recent McGill University graduate, where he studied
Management of Information Systems and Computer Science. He is
currently working as a Software Developer for Genesis Advanced
Technology, a development stage industrial hardware company, and is
consulting for Genesis Robotics where he builds software to support
the firms commercialization efforts. Additionally he has background
in early-stage venture financing and product strategy.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mr.
Dickinson is, or was within the past five years, a director of the
following public companies:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Company</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 24%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Positions
Held</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 21%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">From</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">To</font></font></font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 35%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 24%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td style="vertical-align: top; width: 21%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">February
2019</font></div>
</td>
<td style="vertical-align: top; width: 20%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">19</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Trevor
Thomas, LLB (1967), Chairman, Chief Executive Officer, Corporate
Secretary</font></div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px">Trevor Thomas has
practiced in the areas of corporate commercial, corporate finance,
securities and mining law since 1995, both in a private practice
environment as well as in in-house positions and is</font>
<font style="font-family: Times New Roman; font-size: 13px">currently general
counsel for Hunter Dickinson Inc. (&#x201C;HDI&#x201D;). Prior to
joining HDI, he served as in- house legal counsel with Placer Dome
Inc. Mr. Thomas is, or was within the past five years, an officer
or director of the following public companies:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 33%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Company</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 31%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Positions
Held</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 18%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">From</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 18%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">To</font></font></font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Amarc
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">February
2008</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Curis
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">June
2013</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">November
2014</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Heatherdale
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">June
2013</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mineral
Mountain Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">September
2016</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Northcliff
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">June
2011</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Northern Dynasty
Minerals Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">February
2008</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quadro
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Director</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">July
2017</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">June
2013</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Rathdowney
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">March
2011</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Taseko
Mines Limited</font></div>
</td>
<td style="vertical-align: top; width: 31%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Secretary</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">July
2008</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Sebastian
Tang, CPA CA (1976) &#x2013; Chief Financial Officer</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Sebastian Tang is
Chartered Professional Accountant (CPA CA) with more than 15 years
of professional experience in accountancy and financial reporting.
He previously held positions with professional services firms Ernst
&amp; Young providing financial auditing services to companies in
Asia and the Americas.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Company</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 30%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">Positions
Held</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">From</font></font></font></font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold;">To</font></font></font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Amarc
Resources Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 30%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">July
2020</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Lucky
Minerals Inc.</font></div>
</td>
<td style="vertical-align: top; width: 30%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">May
2019</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">March
2020</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 33%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Global
Hemp Group</font></div>
</td>
<td style="vertical-align: top; width: 30%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Chief
Financial Officer</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">May
2020</font></div>
</td>
<td style="vertical-align: top; width: 18%;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Present</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">COMPENSATION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the Company's financial year ended July 31, 2020, the aggregate
cash compensation paid or payable by the Company to its directors
and senior officers was $19,896.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Trevor
Thomas, Chairman, President, and CEO, and Michael Lee, CFO, are
each "Named Executive Officers" of the Company for the purposes of
the following disclosure.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
compensation paid to the Named Executive Officers during the
Company's most recently completed financial year is as set out
below:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the fiscal year ended July 31, 2020, the above named NEOs did not
serve the Company solely on a full-time basis, and their
compensation from the Company is allocated based on the estimated
amount of time spent providing services to the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-top:0px;margin-left:0px;width:100%;margin-bottom:0px;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">Name and
principal position</font></font></font></font></div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">Fiscal
year</font></font></font></font></div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:11px;"><font style="font-weight:bold;"><font style="font-weight:bold;"><font style="font-family:Times New Roman;font-weight:bold;">Salary</font></font></font></font>
<div><font style="font-size:11px;"><font style="font-weight:bold;"><font style="font-weight:bold;"><font style="font-family:Times New Roman;font-weight:bold;">($)</font></font></font></font></div>
</div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font>&#xA0;</font>
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 12px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">Share- based
awards</font></font></font></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">($)</font></font></font></font></div>
</div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font>&#xA0;</font>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">Option</font></font></font></font></div>
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 12px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">-based
awards</font></font></font></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">($)</font></font></font></font></div>
</div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font>&#xA0;</font>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">Pension</font></font></font></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">value</font></font></font></font></div>
<div style="text-align: right; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">($)</font></font></font></font></div>
</div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left: 0px;"><font>&#xA0;</font>
<div style="text-align: right; margin-left: 24px; margin-right: 4px; text-indent: 36px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">All other
compensation</font></font></font></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-size: 11px"><font style="font-weight: bold"><font style="font-weight: bold"><font style="font-family: Times New Roman; font-weight: bold">($)</font></font></font></font></div>
</div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font>&#xA0;</font>
<div><font style="font-size:11px;"><font style="font-weight:bold;"><font style="font-weight:bold;"><font style="font-family:Times New Roman;font-weight:bold;">Total</font></font></font></font></div>
<div><font style="font-size:11px;"><font style="font-weight:bold;"><font style="font-weight:bold;"><font style="font-family:Times New Roman;font-weight:bold;">compensation</font></font></font></font></div>
<font style="font-size:11px;"><font style="font-weight:bold;"><font style="font-weight:bold;"><font style="font-family:Times New Roman;font-weight:bold;">($)</font></font></font></font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Trevor
Thomas,</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,263</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,263</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px">CEO
(1)</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">414</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">414</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="2" style="vertical-align:bottom;width:24%;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Robert</font>
<font style="font-family: Times New Roman; font-size: 13px">Dickinson,</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;">
<font style="font-family: Times New Roman; font-size: 13px">CEO</font>
<font style="font-family: Times New Roman; font-size: 13px">(1)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="2" style="vertical-align:bottom;width:24%;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;">
<font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Michael
Lee,</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">15,633</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">15,633</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">CFO
[2]</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">10,561</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">10,561</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font><br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">10,578</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: right; margin-left:0px;"><font>&#xA0;
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,578</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 96px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Note
(1) Mr. Thomas replaced Mr. Dickinson as Chairman, President, and
CEO on February 15, 2019 Note (2) Mr. Tang replaced Mr. Lee as CFO
on August 15, 2020</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">20</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Director
Compensation</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
compensation provided to the directors, excluding a director who is
already set out in disclosure for a NEO for the Company's most
recently completed financial year ended July 31, 2020 is as set out
below:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:21%;padding-bottom:2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name</font></div>
</td>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:10%;padding-bottom:2px;">
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px">Fees
earned</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(1)</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">($)</font></div>
</td>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:9%;padding-bottom:2px;">
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 12px">
<font style="font-family: Times New Roman; font-size: 13px">Share-
based awards</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">($)</font></div>
</td>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:9%;padding-bottom:2px;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Option</font></div>
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 12px">
<font style="font-family: Times New Roman; font-size: 13px">-based
awards</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">($)</font></div>
</td>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:17%;padding-bottom:2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman; font-size: 13px">
Non-equity incentive plan compensation</font> ($)</font></div>
</td>
<td rowspan="1" style="border-left:solid 1px #000;border-top:solid 1px #000;vertical-align:bottom;width:9%;padding-bottom:2px;">
<div style="text-align: right; margin-left: 12px; margin-right: 4px; text-indent: 12px">
<font style="font-family: Times New Roman; font-size: 13px">Pensio
n value</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">($)</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;padding-bottom:2px;width:17%;border-left:solid 1px #000;border-top:solid 1px #000;">
<div style="text-align: right; margin-left: 24px; margin-right: 4px; text-indent: 36px">
<font style="font-family: Times New Roman; font-size: 13px">All
other compensation</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">($)</font></div>
</td>
<td rowspan="1" style="border-top:solid 1px #000000;border-left:solid 1px #000000;border-right:solid 1px #000000;width:8%;vertical-align:top;">
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 3px; text-indent: -12px">
<font style="font-family: Times New Roman; font-size: 13px">Total
($)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:top;width:21%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Leonie
Tomlinson<font style="font-size: 13px">(2)</font></font></div>
</td>
<td style="vertical-align:top;width:10%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:8%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;border-right:solid 1px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
</tr><tr>
<td style="vertical-align:top;width:21%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Matthew
Dickinson<font style="font-size: 13px">(2)</font></font></div>
</td>
<td style="vertical-align:top;width:10%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:8%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;border-right:solid 1px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:top;width:21%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Trevor
Thomas<font style="font-size: 13px">(2)</font></font></div>
</td>
<td style="vertical-align:top;width:10%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:9%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:17%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align:top;width:8%;border-left:solid 1px #000000;border-bottom:solid 2px #000000;border-right:solid 1px #000000;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(1)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">January 2016 and
onward, fees were reduced to $nil.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(2)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">These directors are
members of the Audit Committee and Nominating and Governance
Committee.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Pension
and Retirement Benefits</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Neither
the Company nor its subsidiary provides any pension, retirement, or
similar benefits.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">BOARD
PRACTICES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 15, 2017, Ronald Thiessen resigned as President, CEO and
Director, Robert Dickinson was appointed Quartz Mountain's
Executive Chairman and CEO, and Rene Carrier and Leonie Tomlinson
were appointed Directors of the Company. On February 15, 2019,
Robert Dickinson resigned as Executive Chairman and CEO and Rene
Carrier resigned as director. Trevor Thomas was appointed Chairman,
President, and CEO, and Matthew Dickinson was appointed director.
All directors have a term of office expiring at the next annual
general meeting of the Company's shareholders, which is expected to
be held in early 2020. All officers have a term of office lasting
until their removal or replacement by the Board of
Directors.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Directors
Service Contracts</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is no written employment contract between the Company and any
director.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is no service contract between any director of the Company and
either the Company or its subsidiary, which provides for any
benefits upon termination of employment.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Audit
Committee</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Composition of Audit Committee</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
members of the Audit Committee are Trevor Thomas, Matthew
Dickinson, and Leonie Tomlinson (Chair).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Relevant Education and Experience</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As a
result of their education and experience, each member of the Audit
has familiarity with, an understanding of, or experience in the
accounting principles used by the Company to prepare its financial
statements, and the ability to assess the general application of
those principles in connection with estimates, accruals and
reserves; reviewing or evaluating financial statements that present
a breadth and level of complexity of accounting issues that are
generally comparable to the breadth and complexity of issues that
can reasonably be expected to be raised by the Company's financial
statements; and an understanding of internal controls and
procedures for financial reporting.</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">21</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ms.
Tomlinson is an experienced businessperson with corporate finance
experience. See disclosure</font> <font style="font-family: Times New Roman; font-size: 13px">under &#x201C;A.
Directors and Senior Management&#x201D; above.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline; font-family: Times New Roman">&#xA0;</font><font style="text-decoration: underline">Audit
Committee&#x2019;s Charter</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
function of the Audit Committee is to oversee the employment and
compensation of the Company&#x2019;s independent auditor, and other
matters under the authority of the Committee. The Committee also
assists the Board of Directors in carrying out its oversight
responsibilities relating to the Company&#x2019;s financial,
accounting, and reporting processes, the Company&#x2019;s system of
internal accounting and financial controls, the Company&#x2019;s
compliance with related legal and regulatory requirements, and the
fairness of transactions between the Company and related
parties.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Audit Committee has a charter that sets out its mandate and
responsibilities, which is contained in Appendix 6 of the Corporate
Governance Policies and Procedures Manual (available for download
from the Company&#x2019;s website under Corporate Governance at
<font style="text-decoration: underline; color: #0000FF">www.quartzmountainresources.com</font>).
The Audit Committee has the following responsibilities and
authority:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Relationship with Independent Auditor</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Subject
to the law of British Columbia as to the role of the Shareholders
in the appointment of independent auditors, the Committee shall
have the sole authority to appoint or replace the independent
auditor.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall be directly responsible for the compensation and
oversight of the work of the independent auditor (including
resolution of disagreements between management and the independent
auditor regarding financial reporting) for the purpose of preparing
or issuing an audit report or related work.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
independent auditor shall report directly to the
Committee.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall approve in advance all audit and permitted
non-audit services with the independent auditor, including the
terms of the engagements and the fees payable; provided that the
Committee Chairman may approve services to be performed by the
independent auditor between Committee meetings if the amount of the
fee does not exceed $50,000, provided that any such approval shall
be reported to the Committee at the next meeting thereof. The
Committee may delegate to a subcommittee the authority to grant
pre-approvals of audit and permitted non-audit services, provided
that the decision of any such subcommittee shall be presented to
the full Committee at its next scheduled meeting.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
least annually, the Committee shall review and evaluate the
experience and qualifications of the lead partner and senior
members of the independent auditor team.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
least annually, the Committee shall obtain and review a report from
the independent auditor regarding:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the independent
auditor&#x2019;s internal quality-control procedures;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">any material issues
raised by the most recent internal quality-control review, or peer
review, of the auditor, or by any inquiry or investigation by
governmental or professional authorities within the preceding five
years respecting one or more independent audits carried out by the
firm;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">any steps taken to
deal with any such issues; and</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">all relationships
between the independent auditor and the Company.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
least annually, the Committee shall evaluate the qualifications,
performance, and independence of the independent auditor, including
considering whether the auditor&#x2019;s quality controls are
adequate and the provision of permitted non-audit services is
compatible with maintaining the auditor&#x2019;s
independence.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall ensure the rotation of the lead (or coordinating)
audit partner having primary responsibility for the audit, the
concurring partner responsible for reviewing the audit, and other
audit partners as required by law.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall consider whether, in order to assure continuing
auditor independence, it is appropriate to adopt a policy of
rotating the independent auditing firm on a regular
basis.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall recommend to the Board policies for the
Company&#x2019;s hiring of employees or former employees of the
independent auditor who were engaged on the Company&#x2019;s account
or participated in any capacity in the audit of the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall oversee the implementation by management of
appropriate information technology systems for the Company,
including as required for proper financial reporting and
compliance.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">22</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="text-decoration: underline">Financial Statement and Disclosure
Review</font>&#xA0;<br></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall review and discuss with management and the
independent auditor the annual audited financial statements,
including disclosures made in management&#x2019;s discussion and
analysis, and recommend to the Board whether the audited financial
statements should be filed with applicable securities regulatory
authorities and included in the Company&#x2019;s annual
reports.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall review and discuss with management (and, to the
extent the Committee deems it necessary or appropriate, the
independent auditor) the Company&#x2019;s quarterly financial
statements, including disclosures made in management&#x2019;s
discussion and analysis, and recommend to the Board whether such
financial statements should be filed with applicable securities
regulatory authorities.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall review and discuss with management and the
independent auditor significant financial reporting issues and
judgments made in connection with the preparation of the
Company&#x2019;s financial statements, including the independent
auditor&#x2019;s assessment of the quality of the Company&#x2019;s
accounting principles, any significant changes in the
Company&#x2019;s selection or application of accounting principles,
any major issues as to the adequacy of the Company&#x2019;s internal
controls over financial reporting, and any special steps adopted in
light of material control deficiencies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
least annually and prior to the publication of annual audited
financial statements, the Committee shall review and discuss with
management and the independent auditor a report from the
independent auditor on:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">all critical
accounting policies and practices used by the Company;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">all alternative
accounting treatments of financial information that have been
discussed with management since the prior report, ramifications of
the use of such alternative disclosures and treatments, the
treatment preferred by the independent auditor, and an explanation
of why the independent auditor&#x2019;s preferred method was not
adopted; and,</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">other material
written communications between the independent auditor and
management since the prior report, such as any management letter or
schedule of unadjusted differences, the development, selection and
disclosure of critical accounting estimates, and analyses of the
effect of alternative assumptions, estimates or GAAP methods on the
Company&#x2019;s financial statements.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Prior
to their filing or issuance, the Committee shall review the
Company&#x2019;s Annual Information Form, quarterly and annual
earnings press releases, and other financial press releases,
including the use of &#x201C;pro forma&#x201D; or
&#x201C;adjusted&#x201D; non-GAAP information.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall review and discuss with management the financial
information and earnings guidance provided to analysts and rating
agencies. Such discussion may be specific or it may be in general
regarding the types of information to be disclosed and the types of
presentations to be made.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Conduct of the Annual Audit</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall oversee the annual audit, and in the course of such
oversight, the Committee shall have the following responsibilities
and authority:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall meet with the independent auditor prior to the
audit to discuss the planning and conduct of the annual audit, and
shall meet with the independent auditor as may be necessary or
appropriate in connection with the audit.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall ascertain that the independent auditor is
registered and in good standing with the Canadian Public Accounting
Board and that the independent auditor satisfies all applicable
independence standards. The Committee shall obtain from the auditor
a written statement delineating all relationships between the
auditor and the Company as per applicable independence standards,
and review relationships that may impact the objectivity and
independence of the auditor.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall discuss with the independent auditor the matters
required to be discussed by Statement on Auditing Standards No. 61
relating to the conduct of the audit, including:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 36px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">the
adoption of, or changes to, the Company&#x2019;s significant
auditing and accounting principles and practices as suggested by
the independent auditor, internal auditors or
management;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 36px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 36px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">the
management letter provided by the independent auditor and the
Company&#x2019;s response to that letter; and</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 36px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px">any difficulties
encountered in the course of the audit work, including any
restrictions on the scope of activities or access to requested
information, and any significant disagreements with
management.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall make such inquiries to the management and the
independent auditor as the Committee members deem necessary or
appropriate to satisfy themselves regarding the efficacy of the
Company&#x2019;s financial and internal controls and procedures and
the auditing process.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">23</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px;"><font style="text-decoration: underline">Compliance and
Oversight</font><br></font></div>
<div><font style="font-family: Times New Roman; font-size: 13px;"><br></font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall meet periodically with management and the
independent auditor in separate executive sessions. The Committee
may also, to the extent it deems necessary or appropriate, meet
with the Company&#x2019;s investment bankers and financial analysts
who follow the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall discuss with management and the independent auditor
the effect of regulatory and accounting initiatives as well as
off-balance sheet structures on the Company&#x2019;s financial
statements.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall discuss with management the Company&#x2019;s major
financial risk exposures and the steps management has taken to
monitor and control such exposures, including the Company&#x2019;s
risk assessment and risk management policies, and regularly review
the top risks identified by management and the policies and
practices adopted by the Company to mitigate those
risks.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
required, the Committee shall annually review with management and
the independent auditor the disclosure controls and procedures and
confirm that the Company (with CEO and CFO participation) has
evaluated the effectiveness of the design and operation of the
controls within 90 days prior to the date of filing of the AIF. The
Committee also shall review with management and the independent
auditor any deficiencies in the design and operation of internal
controls and significant deficiencies or material weaknesses
therein, and any fraud involving management or other employees who
have a significant role in the Company&#x2019;s internal controls.
As a part of that review, the Committee shall review the process
followed in preparing and verifying the accuracy of the required
CEO and CFO annual certifications.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
required, the Committee shall annually review management&#x2019;s
internal control report and the independent auditor&#x2019;s
assessment of the internal controls and procedures prior to the
filing of the AIF.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall establish procedures for the receipt, retention and
treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters, and
the confidential, anonymous submission by employees of concerns
regarding questionable accounting or auditing matters.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall discuss with management and the independent auditor
any correspondence with regulators or governmental agencies and any
employee complaints or reports that raise material issues regarding
the Company&#x2019;s financial statements or accounting
policies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
least annually, the Committee shall meet with the Company&#x2019;s
legal counsel and discuss any legal matters that may have a
material impact on the financial statements or the Company&#x2019;s
compliance policies.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall oversee the preparation of reports relating to the
Audit Committee as required under applicable laws, regulations, and
stock exchange requirements.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall exercise oversight with respect to anti-fraud
programs and controls.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Related Party Transactions</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Committee shall review for fairness to the Company proposed
transactions, contracts and other arrangements between the Company
and its subsidiaries and any related party or affiliate, and make
recommendations to the Board whether any such transactions,
contracts and other arrangements should be approved or continued.
The foregoing shall not include any compensation payable pursuant
to any plan, program, contract, or arrangement subject to the
authority of the Company&#x2019;s Compensation
Committee.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As used
herein the term &#x201C;related party&#x201D; means any officer or
director of the Company or any subsidiary, or any shareholder
holding a greater than 10% direct or indirect financial or voting
interest in the Company, and the term &#x201C;affiliate&#x201D; means
any person, whether acting alone or in concert with others, that
has the power to exercise a controlling influence over the Company
and its subsidiaries. "Related party" includes HDSI.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EMPLOYEES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
November 20, 2020, the Company had no employees and had contracted
staff on an as-needed basis. The directors of the Company primarily
administer the Company's functions through the employees of HDSI, a
private company with certain directors in common with the Company
(see <a href="#_bookmark33"><font style="text-decoration: underline; color: #0000FF">Item</font></a><font style="color: #0000FF">&#xA0;</font><a href="#_bookmark33"><font style="text-decoration: underline; color: #0000FF">7
&#x2013; "Major Shareholders and Related Party
Transactions</font></a>").</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">24</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">E.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SHARE
OWNERSHIP</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Security
Holdings of Directors and Senior Management</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
November 20, 2020, the directors and officers of Quartz Mountain
and their respective affiliates, directly and indirectly, own or
control as a group an aggregate of 2,727,273 common shares or
10.22% and 1,527,273 share purchase warrants or 5.72%.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
November 20, 2020, the Company's directors and officers
beneficially own the following number of the Company's common
shares:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Name of
Insider</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Securities
Beneficially Owned</font></div>
</td>
<td style="vertical-align: bottom; width: 34%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 0.5pt 0.5pt 2px;">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As a %
of outstanding common</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">shares</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Matthew
Dickinson</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">2,727,273(Common
Shares)</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">10.22%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Matthew
Dickinson</font></div>
</td>
<td style="vertical-align: bottom; width: 34%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1,527,273
(Share purchase</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">warrants)</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">5.72%</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Sebastian
Tang</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Trevor
Thomas</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">500
(Common Shares)</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">0.00%</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 32%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Leonie
Tomlinson</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
<td style="vertical-align: top; width: 34%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Nil</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<a name="_bookmark33">
<!--anchor--></a><font style="color: #0000FF">ITEM
7</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MAJOR
SHAREHOLDERS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain is a publicly held corporation, with its shares held by
residents of Canada, the United States of America and other
countries. To the best of Quartz Mountain's knowledge, person,
corporation, or other entity beneficially owns, directly or
indirectly, or controls more than 5% of the common shares of Quartz
Mountain, the only class of securities with voting rights are
disclosed in the table below. For these purposes, "beneficial
ownership" means the sole or shared power to vote or direct the
voting or to dispose or direct the disposition of any
security.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
November 20, 2020, Quartz Mountain had authorized unlimited common
shares without par value, of which 26,677,776 were issued and
outstanding. The following table sets forth certain information
with respect to beneficial ownership of the Company's common stock
as of November 20, 2020, by each shareholder known to be the
beneficial owner of more than 5% of the common stock.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 76%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-size: 11px">
<div>
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman;">Identity of
Person or Group</font></div>
</div>
</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Shares</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="width: 12%; vertical-align: bottom;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Percentage
Beneficially Owned of Class</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Robert A.
Dickinson</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">10,909,092</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">40.89.</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Matthew
Dickinson</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">2,727,273</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">10.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Hunter Dickinson
Services Inc.</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,800,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">6.75</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
the common shares have the same voting rights and no major
shareholders of the Company have different voting
rights.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Geographic
Breakdown of Shareholders</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
November 20, 2020, Quartz Mountain's register of shareholders
indicates that Quartz Mountain's common shares are held as
follows:</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 64%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div>
<div>
<div style="text-align: justify; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 11px"><font style="font-family: Times New Roman;">&#xA0;</font></font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 11px"><font style="font-family: Times New Roman;">Location</font></font></div>
</div>
</div>
</div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Number of
registered shareholders of record</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">&#xA0;</font></div>
<div><font style="font-family: Times New Roman;">Number of
shares</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td rowspan="1" style="width: 12%; vertical-align: bottom;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Percentage of
total</font></div>
<div><font style="font-family: Times New Roman;">shares</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Canada</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">157</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">26,234,487</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">98.34</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">United
States</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,461</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">431,724</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,62</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Other</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">11,565</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.04</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 64%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">1,631</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">26,677,776</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">100</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">%</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Shares
registered in the names of intermediaries, were assumed to be held
by residents of the same country in which the intermediary is
located.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">25</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Transfer
Agent</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's common shares are recorded on the books of its transfer
agent, Computershare Investor Services Inc., located at 4th Floor,
510 Burrard Street, Vancouver, B.C. V6C 3B9; telephone (604)
661-9400 in registered form. However, the majority of the Company's
common shares are registered in the name of intermediaries such as
brokerage houses and clearinghouses (on behalf of their respective
brokerage clients). Quartz Mountain does not have knowledge or
access to the identities of the beneficial owners of such shares
registered through intermediaries.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Control</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">To the
best of its knowledge, the Company is not owned or controlled,
directly or indirectly, by any other corporation, by any foreign
government or by any other natural or legal person, severally or
jointly, other than as noted above under Major Shareholders. There
are no arrangements known to Quartz Mountain, which, at a
subsequent date, may result in a change in control of the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Insider
Reports under the Securities Acts of British Columbia, Alberta and
Ontario</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Since
the Company is a reporting issuer under the Securities Acts of
British Columbia, Alberta and Ontario, certain "insiders" of the
Company (including its directors, certain executive officers, and
persons who directly or indirectly beneficially own, control or
direct more than 10% of its common shares) are generally required
to file insider reports of changes in their ownership of Quartz
Mountain's common shares within five days following the trade under
National Instrument 55-104 &#x2013; Insider Reporting Requirements
and Exemptions, as adopted by the CSA, and the Securities Act
(Ontario). Copies of such reports are available for public
inspection at the offices of the British Columbia Securities
Commission, ninth Floor, 701 West Georgia Street, Vancouver,
British Columbia V7Y 1L2, (604) 899-6500 or at the British Columbia
Securities Commission web site, <font style="text-decoration: underline; color: #0000FF">www.bcsc.bc.ca.</font>
In British Columbia, all insider reports must be filed
electronically five days following the date of the trade at
<font style="text-decoration: underline; color: #0000FF">www.sedi.ca.</font>
The public is able to access these reports at <font style="text-decoration: underline; color: #0000FF">www.sedi.ca.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark35"><!--anchor--></a>B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RELATED
PARTY TRANSACTIONS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as disclosed herein, Quartz Mountain has not, since the beginning
of its last fiscal year ended July 31, 2020:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(1)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">entered into any
transactions which are material to Quartz Mountain, or a related
party or any transactions unusual in their nature or conditions
involving goods, services or tangible or intangible assets to which
Quartz Mountain or any of its former subsidiaries was a
party;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(2)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">entered into any
transactions or loans between the Company and:</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 56px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(a)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">enterprises that
directly or indirectly through one or more intermediaries, control
or are controlled by, or are under common control with, Quartz
Mountain;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 56px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(b)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">associates of
Quartz Mountain (unconsolidated enterprises in which Quartz
Mountain has significant influence or which has significant
influence over Quartz Mountain) including shareholders beneficially
owning 10% or more of the outstanding shares of Quartz
Mountain;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 56px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(c)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">individuals owning,
directly or indirectly, an interest in the common shares of Quartz
Mountain that gives them significant influence over Quartz
Mountain, and close members of any such individual&#x2019;s
family;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 56px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(d)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">key management
personnel (persons having authority in responsibility for planning,
directing and controlling the activities of Quartz Mountain
including directors and senior management and close members of such
individuals&#x2019; families); or</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 56px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(e)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">enterprises in
which a substantial voting interest is owned, directly or
indirectly, by any person described in (c) or (d) or over which
such a person is able to exercise significant
influence.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">26</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">HDSI</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">HDI and
its wholly<font style="font-family: Times New Roman">&#x2010;</font>owned subsidiary HDSI
are private companies established by a group of mining
professionals. HDSI provides contract services for a number of
mineral exploration and development companies, and also to
companies that are outside of the mining and mineral development
space. The Company acquires services from a number of related and
arms<font style="font-family: Times New Roman">&#x2010;</font>length
contractors, and it is at the Company&#x2019;s discretion that HDSI
provides certain contract services.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s Chief Executive Officer and Chairman, Chief
Financial Officer, and Corporate Secretary are employees of HDSI
and are contracted to work for the Company under an employee
secondment agreement between the Company and HDSI.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pursuant to an
agreement dated June 1, 2008, HDSI provides certain cost effective
technical, geological, corporate communications, regulatory
compliance, and administrative and management services to the
Company, on a non<font style="font-family: Times New Roman">&#x2010;</font>exclusive basis as
needed and as requested by the Company. Because of this
relationship, the Company has ready access to a range of diverse
and specialized expertise on a regular basis, without having to
engage or hire full<font style="font-family: Times New Roman">&#x2010;</font>time employees or
experts. The Company benefits from the economies of scale created
by HDSI, which itself serves several clients both within and
external to the exploration and mining sector.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is not obligated to acquire any minimum amount of services
from HDSI. The monetary amount of the services received from HDSI
in a given period of time is a function of annually set and agreed
charge<font style="font-family: Times New Roman">&#x2010;</font>out
rates for and the time spent by each HDSI employee engaged by the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">HDSI
also incurs third<font style="font-family: Times New Roman">&#x2010;</font>party costs on behalf
of the Company. Such third party costs include, for example,
directors and officers insurance, travel, conferences, and
communication services. Third<font style="font-family: Times New Roman">&#x2010;</font> party costs are
billed at cost, without markup.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no ongoing contractual or other commitments resulting from the
Company's transactions with HDSI, other than the payment for
services already rendered and billed. The agreement may be
terminated upon 60 days' notice by either the Company or
HDSI.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the fiscal year ended July 31, 2020, the Company had transactions
totaling $104,678 (2019 &#x2013;</font><font style="font-family: Times New Roman; font-size: 13px">$77,310; 2018
&#x2013; $114,890) to HDSI for services and reimbursements of third
party disbursements pursuant to this agreement.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
January 2016, the Company and HDSI reached a settlement agreement
whereby HDSI agreed to forgive the balance due to HDSI in the net
amount of $3,086,089 if the Company completes the
following:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">makes a cash
payment of $180,207; and</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">issues 1,800,000
shares (pre-forward split basis of 600,000 shares) valued at
$126,000.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
cash payment of $180,207 was paid during the year ended July 31,
2018 and the shares were issued to HDSI during the year ended July
31, 2020, completing the settlement and resulting in a gain on
settlement of debt of $2,779,882.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">United
Mineral Services Inc. ("UMS")</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">In December 2018, the Company entered into a loan
agreement with United Mineral Services Ltd. (the
&#x201C;Lender&#x201D;), a company owned by a former director,
pursuant to which the Lender advanced to the Company a principal
sum of $100,000 with a six-month term, at an interest rate of 10%
per annum calculated monthly and payable quarterly. T</font>he
principal amount and related interest were repaid during the year
ended July 31, 2020.</font></div>
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<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">INTERESTS
OF EXPERTS AND COUNSEL</font></div>
</div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">27</font></div>
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<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 8</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
FINANCIAL INFORMATION</font></div>
</div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CONSOLIDATED
STATEMENTS AND OTHER FINANCIAL INFORMATION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain's audited consolidated annual financial statements as at
and for the year ended July 31, 2020, 2019 and 2018 are attached in
Exhibit 99.1 to this Annual Report.</font></div>
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<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Legal
Proceedings</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is not, and has not been in the recent past, involved in
any legal or arbitration proceedings, including governmental
proceedings and those relating to bankruptcy, receivership, or
similar proceedings.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Dividend
Policy</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has not paid any dividends on its outstanding common shares
since its incorporation and does not anticipate that it will do so
in the foreseeable future. All funds of the Company are being
retained for administration expenses and mineral property
investigations.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SIGNIFICANT
CHANGES</font></div>
</div>
</div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
have been no significant changes to the accompanying financial
statements, except as disclosed in this Annual Report on Form
20-F.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 9</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
THE OFFER AND LISTING</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">OFFER
AND LISTING DETAILS Trading Markets</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following tables set forth for the periods indicated the price
history, rounded to nearest cent, of the Company's common shares on
the TSX-V and on the OTC Grey Market:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 52%;">
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</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 24%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">TSX-V</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td colspan="2" rowspan="1" style="width: 24%; vertical-align: bottom;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">OTC</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 52%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-size: 11px">
<div>
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman;">Fiscal year
ended July 31</font></div>
</div>
</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.45</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.05</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.04</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2019</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.27</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.09</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.08</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2018</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.50</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.22</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.40</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.00</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2017</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.04</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2016</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">2015</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.20</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.03</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">28</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left">
<table cellpadding="0" cellspacing="0" style="text-align: left; margin: 0px auto 0px 0px; width: 100%; font-size: inherit; font-family: inherit;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 52%;">
<div style="padding-bottom: 2px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px;">&#xA0;</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; font-size: 11px;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 24%;">
<div><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">TSX-V</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="width: 24%; vertical-align: bottom;">
<div><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">OTC</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; font-size: 11px; padding-bottom: 2px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-size: 11px"><font style="font-family: Times New Roman;">Fiscal Quarter</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; font-size: 11px; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px; font-size: 11px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q4, 2020</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.45</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.18</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.04</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q3, 2020</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.06</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q2, 2020</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.05</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.16</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q1, 2020</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.09</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.06</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.16</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q4, 2019</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.09</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.08</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.08</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q3, 2019</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.11</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q2, 2019</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.17</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.09</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 13px;">Q1, 2019</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.27</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.15</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 52%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 11px;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 24%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">TSX-V</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td colspan="2" rowspan="1" style="width: 24%; vertical-align: bottom;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">OTC</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 52%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-size: 11px"><font style="font-family: Times New Roman;">Month</font></font></div>
</div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(CDN$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">High
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Low
(US$)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">October
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.14</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.14</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.11</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">September
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.18</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.13</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">August
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.20</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.16</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.15</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.12</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">July
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.23</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.16</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.17</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">June
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.24</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.15</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.18</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.10</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 52%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">May
2020</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.45</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.07</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.18</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">0.04</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PLAN
OF DISTRIBUTION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MARKETS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 30, 2011, the Company acquired a qualifying property and
was relisted on the main board of the TSX Venture Exchange, trading
under the symbol QZM. The Company continues to trade on the OTC
Grey Market under the symbol QZMRF.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 17, 2005, the Company transferred its listing to NEX, a
separate board of TSX-V and the Company's common shares traded on
NEX under the symbol QZM.H.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Prior
to February 17, 2005, the Company's common shares were listed and
traded in Canada on Tier 2 on the TSX-V, under the symbol QZM.V.
The transition to Tier 2 became effective December 23, 2003. Prior
to this, the Company traded on Tier 3 on the TSX-V.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SELLING
SHAREHOLDERS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">E.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DILUTION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">29</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">F.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EXPENSES
OF THE ISSUE</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 10</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
ADDITIONAL INFORMATION</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SHARE
CAPITAL</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MEMORANDUM
AND ARTICLES OF ASSOCIATION Articles of Association</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain's original corporate constituting documents comprised of
the Memorandum and Articles of Association were registered with the
British Columbia Registrar of Companies under Corporation No.
BC0253743. The Company&#x2019;s Memorandum and Articles have
subsequently been replaced by a Notice of Articles and Articles
under the Business Corporations Act (British Columbia)
(&#x201C;BCA&#x201D;), and the Articles were last amended by
shareholder resolution at the Company&#x2019;s Annual General
Meeting, held on February 24, 2014. The Company's articles of
incorporation do not contain a description or place any
restrictions on the Company's objects and purposes. For more
information, see the Articles of Amalgamation filed as Exhibit 10.1
to this Form 20-F.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Certain Powers of Directors</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s articles require that a director or senior officer
who holds any office or possesses any property, right or interest
that could result, directly or indirectly, in the creation of a
duty or interest that materially conflicts with that
individual&#x2019;s duty or interest as a director or senior
officer, must disclose the nature and extent of the conflict as
required by the BCA.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The BCA
requires that every director or senior officer who is a party to,
or who is a director or officer of, or has a material interest in,
any person who is a party to, a material contract or transaction or
a proposed material contract or transaction with the Company, must
disclose in writing to the Company or request to have entered in
the minutes of a meeting or a consent resolution of directors, the
nature and extent of his or her interest, and must refrain from
voting in respect of the contract or transaction, unless the
contract or transaction is: (a) one relating primarily to his or
her remuneration as a director of the corporation or an affiliate;
(b) one for indemnity of or insurance for directors as contemplated
under the BCA; or (c) one with an affiliate of the Company.
However, a director who is prohibited by the BCA from voting on a
material contract or proposed material contract may be counted in
determining whether a quorum is present for the purpose of the
resolution, if the director disclosed his or her interest in
accordance with the BCA and the contract or transaction was
reasonable and fair to the corporation at the time it was
approved.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's Articles provide that the Board will from time to time
determine the remuneration to be paid to the directors. The Company
must reimburse each director for the reasonable expenses that he or
she may incur in and about the business of the Company. The Board
may also, by resolution, award special remuneration to any director
for undertaking any professional or other services on the Company's
behalf, outside than the ordinary duties of a director of the
Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's Articles provide that the directors may: (a) borrow money
in the manner and amount, on the security, from the sources and on
the terms and conditions that they consider appropriate; (b) issue
bonds, debentures and other debt obligations either outright or as
security for any liability or obligation of the Company or any
other person and at such discounts or premiums and on such other
terms as the directors consider appropriate; (c) guarantee the
repayment of money by any other person or the performance of any
obligation of any other person; and (d) mortgage, charge, whether
by way of specific or floating charge, grant a security interest
in, or give other security on, the whole or any part of the present
and future assets and undertaking of the Company.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
directors may, by resolution, amend or repeal any articles that
regulate the business or affairs of the Company. The BCA requires
the directors to submit any such amendment or repeal to the
Company's shareholders at the next meeting of shareholders, and the
shareholders may confirm, reject, or amend the amendment or
repeal.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Board does not have a mandatory retirement policy for directors
based solely on age. The Company has a practice of conducting
annual Board, Committee, and individual director evaluations,
pursuant to which each director's performance is evaluated
annually. There is no minimum share ownership requirement for
director&#x2019;s qualification.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Authorized
Share Capital</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's authorized share capital consists of an unlimited number
of common shares without par value, and an unlimited number of
preferred shares without par value.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
outstanding common shares of the Company are fully paid and
non-assessable. The holders of the common shares are entitled to
one vote per share at meetings of shareholders and to receive
dividends if, as, and when declared by the directors of the
Company. In the event of voluntary or involuntary liquidation,
dissolution or winding-up of the Company, after payment of all
outstanding debts, the remaining assets of the Company available
for distribution would be distributed ratably to the holders of the
common shares. Holders of the common shares of the Company have no
pre- emptive, redemption, exchange, or conversion
rights.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
preferred shares may be issued in series on such terms as
determined by the Company's directors in accordance with the class
rights and restrictions. The special rights and restrictions
attaching to the preferred shares are set forth in Part 26 of the
Articles, and provide the directors with wide latitude to create a
series of preferred shares which may be convertible into common
shares, and have attached to them rights that rank ahead of common
shares in respect of entitlement to dividends. The directors may,
by resolution, create, define, and attach special rights and
restrictions to the shares of each series, subject to the special
rights and restrictions attached to the preferred
shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as described above, the Company may not create any class or series
of shares or make any modification to the provisions attaching to
the Company's shares without the affirmative vote of a majority of
the votes cast by the holders of the common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Majority
Voting Policy</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
the Company&#x2019;s Corporate Governance Manual, in an uncontested
director election, if the votes &#x201C;for&#x201D; the election of a
director nominee at a meeting of shareholders are fewer than the
number voted &#x201C;withhold&#x201D;, the nominee is expected to
submit his or her resignation promptly after the meeting for the
consideration of the Nominating and Governance Committee. The
Nominating and Governance Committee will make a recommendation to
the Board of Directors after reviewing the matter, and the Board of
Directors will then decide whether to accept or reject the
resignation. The Board&#x2019;s decision to accept or reject the
resignation will be disclosed to shareholders. The nominee will not
participate in any Nominating and Governance Committee
deliberations whether to accept or reject the
resignation.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Meetings
of Shareholders</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The BCA
requires the Company to call an annual shareholders' meeting not
later than 15 months after holding the last preceding annual
meeting and permits the Company to call a special shareholders'
meeting at any time. In addition, in accordance with the BCA, the
holders of not less than 5% of the Company's shares carrying the
right to vote at a meeting sought to be held may requisition the
directors to call a special shareholders' meeting for the purposes
stated in the requisition. The Company is required to mail a notice
of meeting and management information circular to registered
shareholders not less than 21 days and not more than 2 months prior
to the date of any annual or special shareholders' meeting. These
materials are also filed with Canadian securities regulatory
authorities and furnished to the SEC. The Company's articles
provide that a quorum of two shareholders in person or represented
by proxy holding or representing by proxy at least 10% of the
Company's issued shares carrying the right to vote at the meeting
is required to transact business at a shareholders' meeting. In
addition to shareholders and their duly appointed proxies and
corporate representatives, the Company's directors, president,
secretary, lawyers, auditors, and invitees of the directors or
chairperson, are entitled to be admitted to the Company's annual
and special shareholders' meetings; provided that any such person
is not to be counted in the quorum and is not entitled to vote at
the meeting unless that person is a shareholder or proxy holder
entitled to vote at the meeting.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Disclosure
of Share Ownership</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Securities Act (British Columbia) currently provides that the
directors and certain officers of an issuer and its subsidiaries
and any person or company that beneficially owns, directly or
indirectly, voting securities of an issuer or that exercises
control or direction over voting securities of an issuer or a
combination of both, carrying more than 10% of the voting rights
attached to all the issuer's outstanding voting securities (a
"significant shareholder"), as well as the directors and officers
of any significant shareholder, (each an "insider") must, within 10
days of becoming an insider, file a report in the required form
effective the date on which the person became an insider,
disclosing any direct or indirect beneficial ownership of, or
control or direction over, securities of the reporting issuer. The
Securities Act (British Columbia) also provides for the filing of a
report by an insider of a reporting</font> <font style="font-family: Times New Roman; font-size: 13px">issuer who acquires
or transfers securities of the issuer or who enters into,
materially amends or terminates an arrangement the effect of which
is to alter the insider's economic interest in a security of the
issuer or the insider's economic exposure to the issuer. These
reports must be filed within five days after the reportable event.
The Securities Act (British Columbia) also requires these reports
to be filed by reporting insiders within five days after the
applicable event, though are only required by the Chief Executive
Officer, Chief Financial Officer, Chief Operating Officer,
directors, any person or company responsible for a principal
business unit and significant shareholders of the
Company.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">31</font></div>
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<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Securities Act (British Columbia) also provides that a person or
company that acquires (whether or not by way of a take-over bid,
offer to acquire or subscription from treasury) beneficial
ownership of voting or equity securities or securities convertible
into voting or equity securities of a reporting issuer that,
together with previously held securities brings the total holdings
of such holder to 10% or more of the outstanding securities of that
class, must (a) issue and file forthwith a news release containing
certain prescribed information and (b) file a report within two
business days containing the same information set out in the news
release. The acquiring person or company must also issue a news
release and file a report each time it acquires, in the aggregate,
an additional 2% or more of the outstanding securities of the same
class and every time there is a change to any material fact in the
news release and report previously issued and filed.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
rules in the United States governing the ownership threshold above
which shareholder ownership must be disclosed are more stringent
than those discussed above. Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), imposes
reporting requirements on persons who acquire beneficial ownership
(as such term is defined in Rule 13d-3 under the Exchange Act) of
more than 5% of a class of an equity security registered under
Section 12 of the Exchange Act. In general, such persons must file,
within ten days after such acquisition, a report of beneficial
ownership with the SEC containing the information prescribed by the
regulations under Section 13(d) of the Exchange Act and promptly
file an amendment to such report to disclose any material change to
the information reported, including any acquisition or disposition
of 1% or more of the outstanding securities of the registered
class. Certain institutional investors that acquire shares in the
ordinary course of business and not with the purpose or with the
effect of changing or influencing the control of the issuer are
subject to lesser disclosure obligations.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MATERIAL
CONTRACTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain's material contracts as of November 20, 2020,
are:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Corporate Services
Agreement with HDSI, dated for reference July 2, 2010.<font style="color: #0000FF">&#xA0;</font><a href="#_bookmark35"><font style="text-decoration: underline; color: #0000FF">See Item
7B</font></a>;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">HDSI debt
settlement agreement. See ITEM 19 EXHIBIT</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EXCHANGE
CONTROLS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Quartz
Mountain is incorporated pursuant to the laws of the Province of
British Columbia, Canada. There is no law or governmental decree or
regulation in Canada that restricts the export or import of
capital, or affects the remittance of dividends, interest, or other
payments to a non-resident holder of common shares, other than
withholding tax requirements. Any such remittances to United States
residents are generally subject to withholding tax, however no such
remittances are likely in the foreseeable future. See <a href="#_bookmark53"><font style="text-decoration: underline; color: #0000FF">"Taxation",</font></a>
below.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
is no limitation imposed by Canadian law or by the charter or other
constituent documents of the Company on the right of a non-resident
to hold or vote Common Shares of the Company, except that the
Investment Canada Act may require review and approval by the
Minister of Industry (Canada) of certain acquisitions of "control"
of the Company by a "non-Canadian". The threshold for acquisitions
of "control" is generally defined as being one-third or more of the
voting shares of the Company. "Non-Canadian" generally means an
individual who is not a Canadian citizen or a permanent resident of
Canada, or a corporation, partnership, trust or joint venture that
is ultimately controlled by non-Canadians.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">E.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TAXATION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="_bookmark53"><!--anchor--></a>Certain Canadian Federal Income
Tax Information for United States Residents</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following summarizes the principal Canadian federal income tax
considerations generally applicable to the holding and disposition
of common shares of the Company by a holder (a) who, for the
purposes of the Income Tax Act (Canada) the ("Tax Act"), is not
resident in Canada or deemed to be resident in Canada, deals at
arm's length and is not affiliated with the Company, holds the
common shares as capital property and does not use or hold the
common shares in the course of carrying on,</font> <font style="font-family: Times New Roman; font-size: 13px">or otherwise in
connection with, a business in Canada, and (b) who, for the
purposes of the Canada- United States Income Tax Convention (the
"Treaty"), is a resident of the United States, has never been a
resident of Canada, has not held or used (and does not hold or use)
common shares in connection with a permanent establishment or fixed
base in Canada, and who qualifies for the full benefits of the
Treaty. The Canada Revenue Agency has recently introduced special
forms to be used in order to substantiate eligibility for Treaty
benefits, and affected holders should consult with their own
advisors with respect to these forms and all relevant compliance
matters.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Holders
who meet all such criteria in clauses (a) and (b) above are
referred to herein as a "U.S. Holder" or "U.S. Holders", and this
summary only addresses such U.S. Holders. The summary does not deal
with special situations, such as particular circumstances of
traders or dealers, limited liability companies, tax-exempt
entities, insurers, financial institutions (including those to
which the mark- to-market provisions of the Tax Act apply), or
entities considered fiscally transparent under applicable law, or
otherwise.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">32</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is based on the current provisions of the Tax Act and the
regulations thereunder, all proposed amendments to the Tax Act and
regulations publicly announced by the Minister of Finance (Canada)
to the date hereof, the current provisions of the Treaty and our
understanding of the current administrative practices of the Canada
Revenue Agency. It has been assumed that all currently proposed
amendments to the Tax Act and regulations will be enacted as
proposed and that there will be no other relevant change in any
governing law, the Treaty or administrative policy, although no
assurance can be given in these respects. This summary does not
take into account provincial, U.S., or other foreign income tax
considerations, which may differ significantly from those discussed
herein.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is not exhaustive of all possible Canadian income tax
consequences. It is not intended as legal or tax advice to any
particular U.S. Holder and should not be so construed. The tax
consequences to a U.S. Holder will depend on that U.S. Holder's
particular circumstances. Accordingly, all U.S. Holders or
prospective U.S. Holders should consult their own tax advisors with
respect to the tax consequences applicable to them having regard to
their own particular circumstances. The discussion below is
qualified accordingly.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Dividends</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dividends paid or
deemed to be paid or credited by the Company to a U.S. Holder are
subject to Canadian withholding tax. Under the Treaty, the rate of
withholding tax on dividends paid to a U.S. Holder is generally
limited to 15% of the gross dividend (or 5% in the case of a U.S.
holder that is a corporate shareholder owning at least 10% of the
Company's voting shares), provided the U.S. Holder can establish
entitlement to the benefits of the Treaty.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Disposition</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder is generally not subject to tax under the Tax Act in respect
of a capital gain realized on the disposition of a common share in
the open market, unless the share is "taxable Canadian property" to
the holder thereof and the U.S. Holder is not entitled to relief
under the Treaty.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Provided that the
Company's common shares are listed on a "designated stock exchange"
for purposes of the Tax Act (which currently includes the TSX
Venture) at the time of disposition, a common share will generally
not constitute taxable Canadian property to a U.S. Holder unless,
at any time during the 60 month period ending at the time of
disposition, (i) the U.S. Holder or persons with whom the U.S.
Holder did not deal at arm's length (or the U.S. Holder together
with such persons) owned 25% or more of the issued shares of any
class or series of the Company AND (ii) more than 50% of the fair
market value of the share was derived directly or indirectly from
certain types of assets, including real or immoveable property
situated in Canada, Canadian resource properties or timber resource
properties, and options, interests or rights in respect of any of
the foregoing. Common shares may also be deemed taxable Canadian
property under the Tax Act in certain specific circumstances. A
U.S. Holder holding Common shares as taxable Canadian property
should consult with the U.S. Holder's own tax advisors in advance
of any disposition of Common shares or deemed disposition under the
Tax Act in order to determine whether any relief from tax under the
Tax Act may be available by virtue of the Treaty, and any related
compliance procedures.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">United
States Federal Income Tax Consequences</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company believes it is likely a "passive foreign investment
company" which may have adverse</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
federal income tax consequences for U.S. shareholders.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
shareholders should be aware that the Company believes it was
classified as a passive foreign investment company ("PFIC") during
the tax year ended July 31, 2020, and may be a PFIC in future tax
years. If the Company is a PFIC for any year during a U.S.
shareholder's holding period, then such</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
shareholder generally will be required to treat any gain realized
upon a disposition of common shares, or any so-called "excess
distribution" received on its common shares, as ordinary income,
and</font> <font style="font-family: Times New Roman; font-size: 13px">to pay an interest
charge on a portion of such gain or distributions, unless the
shareholder makes a timely and effective "qualified electing fund"
election ("QEF Election") or a "mark-to-market" election with
respect to the common shares. A U.S. shareholder who makes a QEF
Election generally must report on a current basis its share of the
Company's net capital gain and ordinary earnings for any year in
which the Company is a PFIC, whether or not the Company distributes
any amounts to its shareholders. However, U.S. shareholders should
be aware that there can be no assurance that the Company will
satisfy record keeping requirements that apply to a qualified
electing fund, or that the Company will supply U.S. shareholders
with information that such U.S. shareholders require to report
under the QEF Election rules, in the event that the Company is a
PFIC and a U.S. shareholder wishes to make a QEF Election. Thus,
U.S. shareholders may not be able to make a QEF Election with
respect to their common shares. A U.S. shareholder who makes the
mark-to-market election generally must include as ordinary income
each year the excess of the fair market value of the common shares
over the taxpayer's basis therein. This paragraph is qualified in
its entirety by the discussion below under the heading "Certain
United States Federal Income Tax Considerations.&#x201D; Each U.S.
shareholder should consult its own tax advisor regarding the PFIC
rules and the U.S. federal income tax consequences of the
acquisition, ownership, and disposition of common
shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Certain
United States Federal Income Tax Considerations</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following is a general summary of certain material U.S. federal
income tax considerations applicable to a U.S. Holder (as defined
below) arising from and relating to the acquisition, ownership, and
disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is for general information purposes only and does not
purport to be a complete analysis or listing of all potential U.S.
federal income tax considerations that may apply to a U.S. Holder
arising from and relating to the acquisition, ownership, and
disposition of common shares. In addition, this summary does not
take into account the individual facts and circumstances of any
particular U.S. Holder that may affect the U.S. federal income tax
consequences to such U.S. Holder, including specific tax
consequences to a U.S. Holder under an applicable tax treaty.
Accordingly, this summary is not intended to be, and should not be
construed as, legal or U.S. federal income tax advice with respect
to any U.S. Holder. This summary does not address the U.S. federal
alternative minimum,</font> <font style="font-family: Times New Roman; font-size: 13px">U.S. federal estate
and gift, U.S. state and local, and foreign tax consequences to
U.S. Holders of the acquisition, ownership, and disposition of
common shares. Each prospective U.S. Holder should consult its own
tax advisor regarding the U.S. federal, U.S. federal alternative
minimum, U.S. federal estate and gift, U.S. state and local and
foreign tax consequences relating to the acquisition, ownership,
and disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">33</font></div>
</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
legal opinion from U.S. legal counsel or ruling from the Internal
Revenue Service (the "IRS") has been requested, or will be
obtained, regarding the U.S. federal income tax consequences of the
acquisition, ownership, and disposition of common shares. This
summary is not binding on the IRS, and the IRS is not precluded
from taking a position that is different from, and contrary to, the
positions taken in this summary. In addition, because the
authorities on which this summary is based are subject to various
interpretations, the IRS and the U.S. courts could disagree with
one or more of the conclusions described in this
summary.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Scope of this Summary</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Authorities</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary is based on the Internal Revenue Code of 1986, as amended
(the "Code"), Treasury Regulations (whether final, temporary, or
proposed), published rulings of the IRS, published administrative
positions of the IRS, the Convention Between Canada and the United
States of America with Respect to Taxes on Income and on Capital,
signed September 26, 1980, as amended (the "Canada-U.S. Tax
Convention"), and U.S. court decisions that are applicable and, in
each case, as in effect and available, as of the date of this
document. Any of the authorities on which this summary is based
could be changed in a material and adverse manner at any time, and
any such change could be applied on a retroactive or prospective
basis, which could affect the U.S. federal income tax
considerations described in this summary. This summary does not
discuss the potential effects, whether adverse or beneficial, of
any proposed legislation that, if enacted, could be applied on a
retroactive or prospective basis.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
U.S. Holders</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this summary, the term "U.S. Holder" means a beneficial
owner of common shares that is for U.S. federal income tax
purposes:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 12px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px">an individual who
is a citizen or resident of the U.S.;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 12px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 12px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px">a corporation (or
other entity taxable as a corporation for U.S. federal income tax
purposes) organized under the laws of the U.S., any state thereof
or the District of Columbia;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 12px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 12px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px">an estate whose
income is subject to U.S. federal income taxation regardless of its
source; or</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 12px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 12px;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 24px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px">a trust that (1) is
subject to the primary supervision of a court within the U.S. and
the control of one or more U.S. persons for all substantial
decisions or (2) has a valid election in effect under applicable
Treasury Regulations to be treated as a U.S. person.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Non-U.S. Holders</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this summary, a "non-U.S. Holder" is a beneficial owner
of common shares that is not a U.S. Holder. This summary does not
address the U.S. federal income tax consequences to non-U.S.
Holders arising from and relating to the acquisition, ownership,
and disposition of common shares. Accordingly, a non-U.S. Holder
should consult its own tax advisor regarding the U.S. federal, U.S.
federal alternative minimum, U.S. federal estate and gift, U.S.
state and local, and foreign tax consequences (including the
potential application of and operation of any income tax treaties)
relating to the acquisition, ownership, and disposition of common
shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
U.S. Holders Subject to Special U.S. Federal Income Tax Rules Not
Addressed</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
summary does not address the U.S. federal income tax considerations
applicable to U.S. Holders that are subject to special provisions
under the Code, including, but not limited to, the following:
(a)</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
Holders that are tax-exempt organizations, qualified retirement
plans, individual retirement accounts, or other tax-deferred
accounts; (b) U.S. Holders that are financial institutions,
underwriters, insurance companies, real estate investment trusts,
or regulated investment companies; (c) U.S. Holders that are
broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (d) U.S.
Holders that have a "functional currency" other than the U.S.
Dollar; (e) U.S. Holders that own common shares as part of a
straddle, hedging transaction, conversion transaction, constructive
sale, or other arrangement involving more than one position; (f)
U.S. Holders that acquired common shares in connection with the
exercise of employee stock options or otherwise as compensation for
services; (g) U.S. Holders that hold common shares other than as a
capital asset within the meaning of Section 1221 of the Code
(generally, property held for investment purposes); or (h) U.S.
Holders that own or have owned (directly, indirectly, or by
attribution) 10% or more of the total combined voting power of the
outstanding shares of the Company. This summary also does not
address the U.S. federal income tax considerations applicable to
U.S. Holders who are: (a) U.S. expatriates or former long-term
residents of the U.S.; (b) persons that have been, are, or will be
a resident or deemed to be a resident in Canada for purposes of the
Income Tax Act (Canada) (the "Tax Act"); (c) persons that use or
hold, will use or hold, or that are or will be deemed to use or
hold common shares in connection with carrying on a business in
Canada; (d) persons whose common shares constitute "taxable
Canadian property" under the Tax Act; or (e) persons that have a
permanent establishment in Canada for the purposes of the
Canada-U.S. Tax Convention. U.S. Holders that are subject to
special provisions under the Code, including, but not limited to,
U.S. Holders described immediately above, should consult their own
tax advisor regarding the U.S. federal, U.S. federal alternative
minimum, U.S. federal estate and gift, U.S. state and local and
foreign tax consequences relating to the acquisition, ownership,
and disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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</div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If an
entity or arrangement that is classified as a partnership (or other
"pass-through" entity) for U.S. federal income tax purposes holds
common shares, the U.S. federal income tax consequences to such
entity and the partners (or other owners) of such entity generally
will depend on the activities of the entity and the status of such
partners (or owners). This summary does not address the tax
consequences to any such owner. Partners (or other owners) of
entities or arrangements that are classified as partnerships or as
"pass-through" entities for U.S. federal income tax purposes should
consult their own tax advisors regarding the U.S. federal income
tax consequences arising from and relating to the acquisition,
ownership, and disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Passive Foreign Investment Company Rules</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company were to constitute a "passive foreign investment company"
under the meaning of Section 1297 of the Code (a "PFIC", as defined
below) for any year during a U.S. Holder's holding period, then
certain potentially adverse rules will affect the U.S. federal
income tax consequences to a U.S. Holder resulting from the
acquisition, ownership and disposition of common shares. The
Company believes that it was classified as a PFIC during the tax
year ended July 31, 2020, and may be a PFIC in future tax years.
The determination of whether any corporation was, or will be, a
PFIC for a tax year depends, in part, on the application of complex
U.S. federal income tax rules, which are subject to differing
interpretations. In addition, whether any corporation will be a
PFIC for any tax year depends on the assets and income of such
corporation over the course of each such tax year and, as a result,
cannot be predicted with certainty as of the date of this document.
Accordingly, there can be no assurance that the IRS will not
challenge any determination made by the Company (or any subsidiary
of the Company) concerning its PFIC status. Each U.S. Holder should
consult its own tax advisor regarding the PFIC status of the
Company and any subsidiary of the Company.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">35</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
addition, in any year in which the Company is classified as a PFIC,
such holder would be required to file an annual report with the IRS
containing such information as Treasury Regulations and/or other
IRS guidance may require. U.S. Holders should consult their own tax
advisors regarding the requirements of filing such information
returns under these rules, including the requirement to file an IRS
Form 8621.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
PFIC Status of the Company</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company generally will be a PFIC if, for a tax year, (a) 75% or
more of the gross income of the Company is passive income (the
"income test") or (b) 50% or more of the value of the Company's
assets either produce passive income or are held for the production
of passive income, based on the quarterly average of the fair
market value of such assets (the "asset test"). "Gross income"
generally includes all sales revenues less the cost of goods sold,
and income from investments and from incidental or outside
operations or sources, and "passive income" generally includes, for
example, dividends, interest, certain rents and royalties, certain
gains from the sale of stock and securities, and certain gains from
commodities transactions.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Active
business gains arising from the sale of commodities generally are
excluded from passive income if substantially all (85% or more) of
a foreign corporation's commodities are stock in trade or
inventory, depreciable property used in a trade or business, or
supplies regularly used or consumed in a trade or business and
certain other requirements are satisfied.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of the PFIC income test and asset test described above, if
the Company owns, directly or indirectly, 25% or more of the total
value of the outstanding shares of another corporation, the Company
will be treated as if it (a) held a proportionate share of the
assets of such other corporation and (b) received directly a
proportionate share of the income of such other corporation. In
addition, for purposes of the PFIC income test and asset test
described above, and assuming certain other requirements are met,
"passive income" does not include certain interest, dividends,
rents, or royalties that are received or accrued by the Company
from certain "related persons" (as defined in Section 954(d) (3) of
the Code), to the extent such items are properly allocable to the
income of such related person that is not passive
income.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
certain attribution rules, if the Company is a PFIC, U.S. Holders
will generally be deemed to own their proportionate share of the
Company's direct or indirect equity interest in any company that is
also a PFIC (a ''Subsidiary PFIC''), and will be subject to U.S.
federal income tax on their proportionate share of (a) any "excess
distributions," as described below, on the stock of a Subsidiary
PFIC and (b) a disposition or deemed disposition of the stock of a
Subsidiary PFIC by the Company or another Subsidiary PFIC, both as
if such U.S. Holders directly held the shares of such Subsidiary
PFIC. In addition, U.S. Holders may be subject to U.S. federal
income tax on any indirect gain realized on the stock of a
Subsidiary PFIC on the sale or disposition of common shares.
Accordingly, U.S. Holders should be aware that they could be
subject to tax even if no distributions are received and no
redemptions or other dispositions of common shares are
made.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Default PFIC Rules under Section 1291 of the Code</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company is a PFIC for any tax year during which a U.S. Holder owns
common shares, the U.S. federal income tax consequences to such
U.S. Holder of the acquisition, ownership, and disposition of
common shares will depend on whether and when such U.S. Holder
makes an election to treat the Company and each Subsidiary PFIC, if
any, as a "qualified electing fund" or "QEF" under Section 1295 of
the Code (a "QEF Election") or makes a mark-to-market election
under Section 1296 of the Code (a "Mark-to-Market Election"). A
U.S. Holder that does not make either a QEF Election or a Mark-to-
Market Election will be referred to in this summary as a
"Non-Electing U.S. Holder."</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
Non-Electing U.S. Holder will be subject to the rules of Section
1291 of the Code (described below) with respect to (a) any gain
recognized on the sale or other taxable disposition of common
shares and (b) any excess distribution received on the common
shares. A distribution generally will be an "excess distribution"
to the extent that such distribution (together with all other
distributions received in the current tax year) exceeds 125% of the
average distributions received during the three preceding tax years
(or during a U.S. Holder's holding period for the common shares, if
shorter).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
Section 1291 of the Code, any gain recognized on the sale or other
taxable disposition of common shares (including an indirect
disposition of the stock of any Subsidiary PFIC), and any "excess
distribution" received on common shares or with respect to the
stock of a Subsidiary PFIC, must be ratably allocated to each day
in a Non-Electing U.S. Holder's holding period for the respective
common shares. The amount of any such gain or excess distribution
allocated to the tax year of disposition or distribution of the
excess distribution and to years before the entity became a PFIC,
if any, would be taxed as ordinary income. The amounts allocated to
any other tax year would be subject to U.S. federal income tax at
the highest tax rate applicable to ordinary income in each such
year, and an interest charge would be imposed on the tax liability
for each such year, calculated as if</font> <font style="font-family: Times New Roman; font-size: 13px">such tax liability
had been due in each such year. A Non-Electing U.S. Holder that is
not a corporation must treat any such interest paid as "personal
interest," which is not deductible.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company is a PFIC for any tax year during which a Non-Electing U.S.
Holder holds common shares, the Company will continue to be treated
as a PFIC with respect to such Non-Electing U.S. Holder, regardless
of whether the Company ceases to be a PFIC in one or more
subsequent tax years. A Non-Electing U.S. Holder may terminate this
deemed PFIC status by electing to recognize gain (which will be
taxed under the rules of Section 1291 of the Code discussed above),
but not loss, as if such common shares were sold on the last day of
the last tax year for which the Company was a PFIC.</font></div>
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</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
QEF Election</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a timely and effective QEF Election for the first
tax year in which its holding period of its common shares begins
generally will not be subject to the rules of Section 1291 of the
Code discussed above with respect to its common shares. A U.S.
Holder that makes a timely and effective QEF Election will be
subject to U.S. federal income tax on such U.S. Holder's pro rata
share of (a) the net capital gain of the Company, which will be
taxed as long-term capital gain to such U.S. Holder, and (b) the
ordinary earnings of the Company, which will be taxed as ordinary
income to such</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
Holder. Generally, "net capital gain" is the excess of (a) net
long-term capital gain over (b) net short-term capital loss, and
"ordinary earnings" are the excess of (a) "earnings and profits"
over (b) net capital gain. A U.S. Holder that makes a QEF Election
will be subject to U.S. federal income tax on such amounts for each
tax year in which the Company is a PFIC, regardless of whether such
amounts are actually distributed to such U.S. Holder by the
Company. However, for any tax year in which the Company is a PFIC
and has no net income or gain, U.S. Holders that have made a QEF
Election would not have any income inclusions as a result of the
QEF Election. If a U.S. Holder that made a QEF Election has an
income inclusion, such a U.S. Holder may, subject to certain
limitations, elect to defer payment of current U.S. federal income
tax on such amounts, subject to an interest charge. If such U.S.
Holder is not a corporation, any such interest paid will be treated
as "personal interest," which is not deductible.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a timely and effective QEF Election with respect
to the Company generally</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 40px"><font style="font-family: Times New Roman; font-size: 13px">(a)&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">may receive a
tax-free distribution from the Company to the extent that such
distribution represents "earnings and profits" of the Company that
were previously included in income by the U.S. Holder because of
such QEF Election and (b) will adjust such U.S. Holder's tax basis
in the common shares to reflect the amount included in income or
allowed as a tax-free distribution because of such QEF Election. In
addition, a U.S. Holder that makes a QEF Election generally will
recognize capital gain or loss on the sale or other taxable
disposition of common shares.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
procedure for making a QEF Election, and the U.S. federal income
tax consequences of making a QEF Election, will depend on whether
such QEF Election is timely. A QEF Election will be treated as
"timely" if such QEF Election is made for the first year in the
U.S. Holder's holding period for the common shares in which the
Company was a PFIC. A U.S. Holder may make a timely QEF Election by
filing the appropriate QEF Election documents at the time such U.S.
Holder files a U.S. federal income tax return for such year. If a
U.S. Holder does not make a timely and effective QEF Election for
the first year in the U.S. Holder's holding period for the common
shares, the U.S. Holder may still be able to make a timely and
effective QEF Election in a subsequent year if such U.S. Holder
meets certain requirements and makes a "purging" election to
recognize gain (which will be taxed under the rules of Section 1291
of the Code discussed above) as if such common shares were sold for
their fair market value on the day the QEF Election is effective.
If a U.S. Holder owns PFIC stock indirectly through another PFIC,
separate QEF Elections must be made for the PFIC in which the U.S.
Holder is a direct shareholder and the Subsidiary PFIC for the QEF
rules to apply to both PFICs.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A QEF
Election will apply to the tax year for which such QEF Election is
timely made and to subsequent tax years, unless such QEF Election
is invalidated or terminated or the IRS consents to revocation of
such QEF Election. If a U.S. Holder makes a QEF Election and, in a
subsequent tax year, the Company ceases to be a PFIC, the QEF
Election will remain in effect (although it will not be applicable)
during those tax years in which the Company is not a PFIC.
Accordingly, if the Company becomes a PFIC in another subsequent
tax year, the QEF Election will be effective and the U.S. Holder
will be subject to the QEF rules described above during any
subsequent tax year in which the Company qualifies as a
PFIC.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
Holders should be aware that there can be no assurances that the
Company will satisfy the record keeping requirements that apply to
a QEF, or that the Company will supply U.S. Holders with
information that such U.S. Holders are required to report under the
QEF rules, in the event that the Company is a PFIC. Thus, U.S.
Holders may not be able to make a QEF Election with respect to
their common shares. Each U.S. Holder should consult its own tax
advisor regarding the availability of, and procedure for making, a
QEF Election.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder makes a QEF Election by attaching a completed IRS Form 8621,
including a PFIC Annual Information Statement, to a timely filed
United States federal income tax return. However, if the</font>
<font style="font-family: Times New Roman; font-size: 13px">Company cannot
provide the required information with regard to the Company or any
of its Subsidiary PFICs, U.S. Holders will not be able to make a
QEF Election for such entity and will continue to be subject to the
rules discussed above that apply to Non-Electing U.S. Holders with
respect to the taxation of gains and excess
distributions.</font></div>
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<div><font>&#xA0;</font></div>
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<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mark-to-Market Election</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder may make a Mark-to-Market Election only if the common shares
are marketable stock. The common shares generally will be
"marketable stock" if the common shares are regularly traded on (a)
a national securities exchange that is registered with the
Securities and Exchange Commission,</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 40px"><font style="font-family: Times New Roman; font-size: 13px">(b)&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the national market
system established pursuant to section 11A of the Securities and
Exchange Act of 1934, or (c) a foreign securities exchange that is
regulated or supervised by a governmental authority of the country
in which the market is located, provided that (i) such foreign
exchange has trading volume, listing, financial disclosure, and
surveillance requirements, and meets other requirements and the
laws of the country in which such foreign exchange is located,
together with the rules of such foreign exchange, ensure that such
requirements are actually enforced and (ii) the rules of such
foreign exchange effectively promote active trading of listed
stocks. If such stock is traded on such a qualified exchange or
other market, such stock generally will be "regularly traded" for
any calendar year during which such stock is traded, other than in
de minimis quantities, on at least 15 days during each calendar
quarter.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election with respect to its
common shares generally will not be subject to the rules of Section
1291 of the Code discussed above with respect to such common
shares. However, if a U.S. Holder does not make a Mark-to-Market
Election beginning in the first tax year of such U.S. Holder's
holding period for the common shares or such U.S. Holder has not
made a timely QEF Election, the rules of Section 1291 of the Code
discussed above will apply to certain dispositions of, and
distributions on, the common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election will include in
ordinary income, for each tax year in which the Company is a PFIC,
an amount equal to the excess, if any, of (a) the fair market value
of the common shares, as of the close of such tax year over (b)
such U.S. Holder's tax basis in such common shares. A U.S. Holder
that makes a Mark-to-Market Election will be allowed a deduction in
an amount equal to the excess, if any, of (a) such U.S. Holder's
adjusted tax basis in the common shares, over (b) the fair market
value of such common shares (but only to the extent of the net
amount of previously included income as a result of the
Mark-to-Market Election for prior tax years).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that makes a Mark-to-Market Election generally also will
adjust such U.S. Holder's tax basis in the common shares to reflect
the amount included in gross income or allowed as a deduction
because of such Mark-to-Market Election. In addition, upon a sale
or other taxable disposition of common shares, a U.S. Holder that
makes a Mark-to-Market Election will recognize ordinary income or
ordinary loss (not to exceed the excess, if any, of (a) the amount
included in ordinary income because of such Mark-to-Market Election
for prior tax years over (b) the amount allowed as a deduction
because of such Mark-to-Market Election for prior tax years).
Losses that exceed this limitation are subject to the rules
generally applicable to losses provided in the Code and Treasury
Regulations.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
Mark-to-Market Election applies to the tax year in which such
Mark-to-Market Election is made and to each subsequent tax year,
unless the common shares cease to be "marketable stock" or the IRS
consents to revocation of such election. Each U.S. Holder should
consult its own tax advisor regarding the availability of, and
procedure for making, a Mark-to-Market Election.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Although a U.S.
Holder may be eligible to make a Mark-to-Market Election with
respect to the common shares, no such election may be made with
respect to the stock of any Subsidiary PFIC that a U.S. Holder is
treated as owning, because such stock is not marketable. Hence, the
Mark-to-Market Election will not be effective to eliminate the
application of the default rules of Section 1291 of the Code
described above with respect to deemed dispositions of Subsidiary
PFIC stock or excess distributions from a Subsidiary
PFIC.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Other PFIC Rules</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
Section 1291(f) of the Code, the IRS has issued proposed Treasury
Regulations that, subject to certain exceptions, would cause a U.S.
Holder that had not made a timely QEF Election to recognize gain
(but not loss) upon certain transfers of common shares that would
otherwise be tax-deferred (e.g., gifts and exchanges pursuant to
corporate reorganizations). However, the specific U.S. federal
income tax consequences to a U.S. Holder may vary based on the
manner in which common shares are transferred.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certain
additional adverse rules may apply with respect to a U.S. Holder if
the Company is a PFIC, regardless of whether such U.S. Holder makes
a QEF Election. For example, under Section 1298(b)(6) of the Code,
a U.S. Holder that uses common shares as security for a loan will,
except as may be</font> <font style="font-family: Times New Roman; font-size: 13px">provided in
Treasury Regulations, be treated as having made a taxable
disposition of such common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Special
rules also apply to the amount of foreign tax credit that a U.S.
Holder may claim on a distribution from a PFIC. Subject to such
special rules, foreign taxes paid with respect to any distribution
in respect of stock in a PFIC are generally eligible for the
foreign tax credit. The rules relating to distributions by a PFIC
and their eligibility for the foreign tax credit are complicated,
and a U.S. Holder should consult with its own tax advisor regarding
the availability of the foreign tax credit with respect to
distributions by a PFIC.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
PFIC rules are complex, and each U.S. Holder should consult its own
tax advisor regarding the PFIC rules and how the PFIC rules may
affect the U.S. federal income tax consequences of the acquisition,
ownership, and disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Ownership and Disposition of Common Shares</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion is subject to the rules described above under
the heading "Passive Foreign Investment Company
Rules."</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Distributions on Common Shares</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder that receives a distribution, including a constructive
distribution, with respect to a common share will be required to
include the amount of such distribution in gross income as a
dividend (without reduction for any Canadian income tax withheld
from such distribution) to the extent of the current or accumulated
"earnings and profits" of the Company, as computed for U.S. federal
income tax purposes. A dividend generally will be taxed to a U.S.
Holder at ordinary income tax rates if the Company is a PFIC. To
the extent that a distribution exceeds the current and accumulated
"earnings and profits" of the Company, such distribution will be
treated first as a tax- free return of capital to the extent of a
U.S. Holder's tax basis in the common shares and thereafter as gain
from the sale or exchange of such common shares. (See "Sale or
Other Taxable Disposition of common shares" below). However, the
Company may not maintain the calculations of earnings and profits
in accordance with U.S. federal income tax principles, and each
U.S. Holder should therefore assume that any distribution by the
Company with respect to the common shares will constitute ordinary
dividend income. Dividends received on common shares generally will
not be eligible for the "dividends received deduction". In
addition, the Company does not anticipate that its distributions
will constitute qualified dividend income eligible for the
preferential tax rates applicable to long-term capital gains. The
dividend rules are complex, and each U.S. Holder should consult its
own tax advisor regarding the application of such
rules.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Sale or Other Taxable Disposition of Common Shares</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Upon
the sale or other taxable disposition of common shares, a U.S.
Holder generally will recognize capital gain or loss in an amount
equal to the difference between the U.S. Dollar value of cash
received plus the fair market value of any property received and
such U.S. Holder's tax basis in such common shares sold or
otherwise disposed of. A U.S. Holder's tax basis in common shares
generally will be such holder's U.S. Dollar cost for such common
shares. Gain or loss recognized on such sale or other disposition
generally will be long-term capital gain or loss if, at the time of
the sale or other disposition, the common shares have been held for
more than one year.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Preferential tax
rates currently apply to long-term capital gain of a U.S. Holder
that is an individual, estate, or trust. There are currently no
preferential tax rates for long-term capital gain of a U.S. Holder
that is a corporation. Deductions for capital losses are subject to
significant limitations under the Code.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Additional Tax on Passive Income</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For tax
years beginning after December 31, 2012, certain individuals,
estates and trusts whose income exceeds certain thresholds will be
required to pay a 3.8% Medicare surtax on "net investment income"
including, among other things, dividends and net gain from
dispositions of property (other than property held in a trade or
business). U.S. Holders should consult with their own tax advisors
regarding the effect, if any, of this tax on their ownership and
disposition of common shares.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Receipt of Foreign Currency</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
amount of any distribution paid to a U.S. Holder in foreign
currency, or on the sale, exchange or other taxable disposition of
common shares, generally will be equal to the U.S. Dollar value of
such foreign currency based on the exchange rate applicable on the
date of receipt (regardless of whether such foreign currency is
converted into U.S. Dollars at that time). A U.S. Holder will have
a basis in the foreign currency equal to its U.S. Dollar value on
the date of receipt. Any U.S. Holder who converts or otherwise
disposes of the foreign currency after the date of receipt may have
a foreign currency exchange gain or loss that would be treated as
ordinary income or loss, and generally will be U.S.</font>
<font style="font-family: Times New Roman; font-size: 13px">source income or
loss for foreign tax credit purposes. Each U.S. Holder should
consult its own U.S. tax advisor regarding the U.S. federal income
tax consequences of receiving, owning, and disposing of foreign
currency.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Foreign Tax Credit</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Subject
to the PFIC rules discussed above, a U.S. Holder that pays (whether
directly or through withholding) Canadian income tax with respect
to dividends paid on the common shares generally will be entitled,
at the election of such U.S. Holder, to receive either a deduction
or a credit for such Canadian income tax. Generally, a credit will
reduce a U.S. Holder's U.S. federal income tax liability on a
Dollar-for-Dollar basis, whereas a deduction will reduce a U.S.
Holder's income subject to U.S. federal income tax. This election
is made on a year-by-year basis and applies to all foreign taxes
paid (whether directly or through withholding) by a U.S. Holder
during a year.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Complex
limitations apply to the foreign tax credit, including the general
limitation that the credit cannot exceed the proportionate share of
a U.S. Holder's U.S. federal income tax liability that such U.S.
Holder's "foreign source" taxable income bears to such U.S.
Holder's worldwide taxable income. In applying this limitation, a
U.S. Holder's various items of income and deduction must be
classified, under complex rules, as either "foreign source" or
"U.S. source." Generally, dividends paid by a foreign corporation
should be treated as foreign source for this purpose, and gains
recognized on the sale of stock of a foreign corporation by a U.S.
Holder should be treated as U.S. source for this purpose, except as
otherwise provided in an applicable income tax treaty, and if an
election is properly made under the Code. However, the amount of a
distribution with respect to the common shares that is treated as a
"dividend" may be lower for U.S. federal income tax purposes than
it is for Canadian federal income tax purposes, resulting in a
reduced foreign tax credit allowance to a U.S. Holder. In addition,
this limitation is calculated separately with respect to specific
categories of income. The foreign tax credit rules are complex, and
each U.S. Holder should consult its own U.S. tax advisor regarding
the foreign tax credit rules.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">39</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Backup Withholding and Information Reporting</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
U.S. federal income tax law and Treasury Regulations, certain
categories of U.S. Holders must file information returns with
respect to their investment in, or involvement in, a foreign
corporation. For example, recently enacted legislation generally
imposes new U.S. return disclosure obligations (and related
penalties) on individuals who are U.S. Holders that hold certain
specified foreign financial assets in excess of $50,000. The
definition of specified foreign financial assets includes not only
financial accounts maintained in foreign financial institutions,
but also, unless held in accounts maintained by a financial
institution, any stock or security issued by a non-U.S. person, any
financial instrument or contract held for investment that has an
issuer or counterparty other than a U.S. person and any interest in
a foreign entity. U.S. Holders may be subject to these reporting
requirements unless their common shares are held in an account at a
domestic financial institution. Penalties for failure to file
certain of these information returns are substantial. U.S. Holders
should consult with their own tax advisors regarding the
requirements of filing information returns, including the
requirement to file an IRS Form 8938.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Payments made
within the U.S. or by a U.S. payor or U.S. middleman, of dividends
on, and proceeds arising from the sale or other taxable disposition
of, common shares will generally be subject to information
reporting and backup withholding tax, at the rate of 28% (and
increasing to 31% for payments made after December 31, 2012), if a
U.S. Holder (a) fails to furnish such U.S. Holder's correct U.S.
taxpayer identification number (generally on Form W-9), (b)
furnishes an incorrect U.S. taxpayer identification number, (c) is
notified by the IRS that such U.S. Holder has previously failed to
properly report items subject to backup withholding tax, or (d)
fails to certify, under penalty of perjury, that such U.S. Holder
has furnished its correct U.S. taxpayer identification number and
that the IRS has not notified such U.S. Holder that it is subject
to backup withholding tax. However, certain exempt persons
generally are excluded from these information reporting and backup
withholding rules. Backup withholding is not an additional tax. Any
amounts withheld under the U.S. backup withholding tax rules will
be allowed as a credit against a U.S. Holder's U.S. federal income
tax liability, if any, or will be refunded, if such U.S. Holder
furnishes required information to the IRS in a timely manner. Each
U.S. Holder should consult its own tax advisor regarding the
information reporting and backup withholding rules.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">F.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DIVIDENDS
AND PAYING AGENTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">G.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">STATEMENT
BY EXPERTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">H.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DOCUMENTS
ON DISPLAY</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Exhibits attached
to this Form 20-F are also available for viewing on EDGAR at
<font style="text-decoration: underline; color: #0000FF">http://www.sec.gov/,</font>
or at the offices of the Company, 15th Floor - 1040 West Georgia
Street, Vancouver, British Columbia V6E 4H1 or on request of the
Company at 604-684-6365, attention: Investor Relations Department.
Copies of the Company's IFRS financial statements and other
continuous disclosure documents required under the British Columbia
Securities Act are available for viewing on the internet at
<font style="text-decoration: underline; color: #0000FF">www.sedar.com.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">I.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SUBSIDIARY
INFORMATION</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<a name="_bookmark58">
<!--anchor--></a><font style="color: #0000FF">ITEM
11</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TRANSACTION
RISK AND CURRENCY RISK MANAGEMENT</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company 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 treasury policies,
counterparty limits, and controlling and reporting
structures.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EXCHANGE
RATE SENSITIVITY</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company incurs substantially all of its expenditures in Canada and
substantially all of its cash is denominated in Canadian dollars.
Consequently, the Company is not subject to material foreign
exchange risk.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">C.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">INTEREST
RATE RISK AND EQUITY PRICE RISK</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is subject to interest rate risk with respect to its
investments in cash. The Company's policy is to invest cash at
fixed rates of interest and cash reserves are to be maintained in
cash and cash equivalents in order to maintain liquidity, while
achieving a satisfactory return for shareholders. Fluctuations in
interest rates when the cash and cash equivalents mature impact
interest income earned.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">40</font></div>
</div>
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">COMMODITY
PRICE RISK</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">While
the value of the Company's resource properties, if any, can always
be said to relate to the price of precious metals and the outlook
for same, the Company does not have any resource properties or
operating mines and hence does not have any hedging or other
commodity based operational risks respecting to its business
activities.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 12</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 13</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 14</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 15</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
CONTROLS AND PROCEDURES</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">A.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DISCLOSURE
CONTROLS AND PROCEDURES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At the
end of the period covered by this annual report on Form 20-F, an
evaluation was carried out with the participation of the Company's
management, including the President and Chief Executive Officer
("CEO") and the Chief Financial Officer ("CFO"), of the
effectiveness of the Company's disclosure controls and procedures
(as defined in Rules 13a &#x2013; 15(e) and 15d &#x2013;15(e) under
the Securities Exchange Act of 1934, as amended (the "Exchange
Act")). Based on that evaluation, the President and CEO and the CFO
have concluded that as of the end of the period covered by this
annual report on Form 20-F, the Company's disclosure controls and
procedures were effective in providing reasonable assurance that:
(i) information required to be disclosed by the Company in reports
that it files or submits to the SEC under the Exchange Act was
recorded, processed, summarized and reported within the time
periods specified in applicable rules and forms, and (ii) material
information required to be disclosed in the Company's reports filed
under the Exchange Act was accumulated and communicated to the
Company's management, including the President and CEO and the CFO,
as appropriate, to allow for accurate and timely decisions
regarding required disclosure.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MANAGEMENT'S
ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's management, including the President and CEO and CFO, is
responsible for establishing and maintaining adequate internal
control over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act. The Company's internal control
over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation and fair presentation of financial
statements for external purposes in accordance with IFRS. The
Company's internal control over financial reporting includes those
policies and procedures that:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of
the Company;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with IFRS, and
that receipts and expenditures of the Company are being made only
in accordance with authorizations of management and directors of
the Company; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could
have a material effect on the financial statements.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">With
the participation of the President and CEO and CFO, management
conducted an evaluation of the design and operation of the
Company's internal control over financial reporting as of July 31,
2020, based on the criteria set forth in Internal
Control-Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. This
evaluation included review of the documentation of controls,
evaluation of the design effectiveness of controls, testing of the
operating effectiveness of controls and a conclusion on this
evaluation. Based on this evaluation, management concluded in its
report that the Company's internal control over financial reporting
was effective as of July 31, 2020.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
annual report does not include an attestation report of the
Company's registered public accounting firm regarding internal
control over financial reporting. Management's report was not
subject to attestation by the Company's registered public
accounting firm pursuant to rules that permit the Company to
provide only management's report in this annual
report.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the period covered by this Annual Report on Form 20-F, no changes
occurred in the Company's internal control over financial reporting
that have materially affected, or are reasonably likely to
materially affect, the Company's internal control over financial
reporting.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">41</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">LIMITATIONS
OF CONTROLS AND PROCEDURES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's management, including its President and CEO and CFO, does
not expect that its disclosure controls and procedures or internal
controls and procedures will prevent all errors and all fraud. A
control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a
control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute
assurance that all control issues and instances of fraud, if any,
within the Company have been detected. These inherent limitations
include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or
mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more
people, or by management override of the controls. The design of
any system of controls is also based in part upon certain
assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated
goals under all potential future conditions; over time, controls
may become inadequate because of changes in conditions, or the
degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud
may occur and not be detected.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
[RESERVED]</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16A</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
AUDIT COMMITTEE FINANCIAL EXPERT</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
members of the Audit Committee are Trevor Thomas, Matthew
Dickinson, and Leonie Tomlinson. The Board of Directors has
determined that Ms. Thomlinson qualifies as a "financial expert"
under the rules of the Securities and Exchange Commission, based on
her education and experience. Ms. Tomlinson is "independent", as
that term is defined in section 803 of the NYSE MKT Company
Guide.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Each
Audit Committee member is able to read and understand fundamental
financial statements.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 72px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16B</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
CODE OF ETHICS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's board of directors has adopted a written Code of Ethics
governing directors, officers, and employees. The Code of Ethics
sets forth written standards that are designed to deter wrongdoing
and to meet the Company's core vision: to become a successful and
innovative mining and mineral exploration corporation.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
order to achieve the Company's vision the following values are to
be included in all activities:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Responsibly explore
for and develop mineral resources;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Be respectful of
the environment;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Be an industry
leader and participate in industry organizations devoted to
improving the industry;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Be a strong and
honest competitor;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Be a responsible
corporate citizen and contribute to the community;</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Deal fairly with
our customers, suppliers and joint venture
participants;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Provide a safe and
rewarding work environment; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 32px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Deliver value to
shareholders.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
board of directors monitors compliance with the Code of Ethics by
ensuring that all Company personnel have read and understood the
Code of Ethics, and by charging management with bringing to the
attention of the board of directors any issues that arise with
respect to the Code of Ethics.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A copy
of the Code of Ethics was filed with the Securities and Exchange
Commission as an exhibit to the Company's Annual Report filed on
Form 20-F for the fiscal year ended July 31, 2012 and is available
at <font style="text-decoration: underline; color: #0000FF">www.sec.gov.</font>
The Company will also provide a copy of the Code of Ethics to any
person without charge, upon request. Requests can be sent by mail
to: 15th Floor, 1040 West Georgia Street, Vancouver, British
Columbia, Canada, V6E 4H8; or submitted by telephone at
604-684-6365, attention: Investor Relations
Department.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the most recently completed fiscal year, the Company has neither:
(a) amended its Code of Ethics; nor (b) granted any waiver
(including any implicit waiver) form any provision of its Code of
Ethics.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">42</font></div>
</div>
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<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 84px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16C</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PRINCIPAL ACCOUNTANT FEES AND SERVICES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table discloses the aggregate fees billed for each of the
last two fiscal years for professional services rendered by the
Company's audit firm, Davidson &amp; Company LLP for various
services.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px; padding-bottom: 2px;"><font style="font-size: 11px"><font style="font-family: Times New Roman;">Services:</font></font></div>
</td>
<td colspan="2" rowspan="1" style="width: 24%; vertical-align: bottom;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">Year
ended</font></div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 76%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 11px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">July 31,
2020</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="font-size: 11px"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-family: Times New Roman;">July 31,
2019</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block; padding-bottom: 2px;">&#xA0;</font></font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Audit Fees
<font style="font-size: 13px">(1)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">18,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">15,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Audit Related Fees
<font style="font-size: 13px">(2)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Tax Fees
<font style="font-size: 13px">(3)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">All Other Fees
<font style="font-size: 13px">(4)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 5%;">&#xA0;</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 75%;">&#x2013;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 76%;">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 12px;"><font style="font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">18,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">15,000</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(1)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">"Audit Fees"
include fees necessary to perform the annual audit and quarterly
reviews of the Company's consolidated financial statements. Audit
Fees include fees for review of tax provisions and for accounting
consultations on matters reflected in the financial statements.
Audit Fees also include audit or other attest services required by
legislation or regulation, such as comfort letters, consents,
reviews of securities filings and statutory audits.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(2)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">"Audit-Related
Fees" include services that are traditionally performed by the
auditor. These audit-related services include employee benefit
audits, due diligence assistance, accounting consultations on
proposed transactions, internal control reviews and audit or attest
services not required by legislation or regulation.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(3)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">"Tax Fees" include
fees billed for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax
planning.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 8px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(4)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">"All Other Fees"
include fees billed for products and services provided by the
principal accountant, other than the services reported in (1), (2),
or (3) above.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">From
time to time, management of the Company recommends to and requests
approval from the Audit Committee for non-audit services to be
provided by the Company's auditors. The Audit Committee routinely
considers such requests at committee meetings, and if acceptable to
a majority of the Audit Committee members, pre-approves such
non-audit services by a resolution authorizing management to engage
the Company's auditors for such non-audit services, with set
maximum dollar amounts for each itemized service. During such
deliberations, the Audit Committee assesses, among other factors,
whether the services requested would be considered "prohibited
services" as contemplated by the SEC, and whether the services
requested and the fees related to such services could impair the
independence of the auditors. No material non-audit services were
provided by the Company's auditors during the year ended July 31,
2020.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16D</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT COMMITTEES</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16E</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended July 31, 2020, the Company did not purchase any of
its issued and outstanding common shares pursuant to any repurchase
program or otherwise.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16F</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 16G</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
CORPORATE GOVERNANCE</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">43</font></div>
</div>
<div id="pb" style="text-align: center; page-break-after: always; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
<!--page break--></div>
<div id="hdr">
<div style="text-align: left; width: 100%; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<a name="_bookmark79">
<!--anchor--></a><font style="color: #0000FF">ITEM
16H</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
MINE SAFETY DISCLOSURE</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 17</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
FINANCIAL STATEMENTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Not
applicable. See <a href="#_bookmark79"><font style="text-decoration: underline; color: #0000FF">Item
1</font></a><font style="text-decoration: underline; color: #0000FF">8</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 18</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
FINANCIAL STATEMENTS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">See
Exhibit 99.1.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table;">
<div style="display: table-row;">
<div style="text-align: left; display: table-cell; width: 96px;">
<font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
<font style="color: #0000FF">ITEM 19</font></font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: #0000FF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
EXHIBITS</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following Exhibits have been filed with the Company's Annual Report
on Form 20-F in previous years:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-top: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 12px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Exhibit
Number</font></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Description of
Exhibit</font></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Note</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.1</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 25px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299306000061/exhibit1-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Transition
Application dated October 11, 2005</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.2</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299306000061/exhibit1-2.htm">
<font style="font-family: Times New Roman; font-size: 13px">Notice
of Articles dated October 11, 2005</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.3</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 43px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299306000061/exhibit1-3.htm">
<font style="font-family: Times New Roman; font-size: 13px">Notice
of Alteration of Articles dated October 11, 2005</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.4</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299307000320/exhibit1-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Notice
of Alteration dated February 17, 2006</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2006, filed on January 29, 2007.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.5</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299307000320/exhibit1-2.htm">
<font style="font-family: Times New Roman; font-size: 13px">Notice
of Articles dated February 17, 2006</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2006, filed on January 29, 2007.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">1.7</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299314006013/exhibit1-7.htm">
<font style="font-family: Times New Roman; font-size: 13px">Articles, as
amended the Company&#x2019;s Annual <font style="font-family: Times New Roman; font-size: 13px">General Meeting,
held on February 24, 2014.</font></font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2014, filed on October 17, 2014.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">4.2</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299310003459/exhibit4-5.htm">
<font style="font-family: Times New Roman; font-size: 13px">Services Agreement
between HDI and the Company dated July 2, 2010</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2010, filed on October 29, 2010.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">6.1</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299312005201/exhibit6-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Stock
Option Plan approved by Shareholders on March 15,
2012</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">6.2</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299312005201/exhibit6-2.htm">
<font style="font-family: Times New Roman; font-size: 13px">Audit
Committee Charter</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">10.1</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299312005201/exhibit10-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Articles approved
by Shareholders on March 15, 2012</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">10.2</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 25px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299316011615/exhibit10-2.htm">
<font style="font-family: Times New Roman; font-size: 13px">Articles approved
by Shareholders on February 24, 2014</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2016, filed on October 4, 2016.</font></div>
</td>
</tr></table>
</div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">11.1</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299316011615/exhibit11-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Settlement
agreement between Bearclaw and HDSI dated January 15,
2016</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2016, filed on October 4, 2016.</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 10%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">16B.</font></div>
</td>
<td style="vertical-align: bottom; width: 45%; border-left: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="http://www.sec.gov/Archives/edgar/data/811522/000106299312005201/exhibit16b-1.htm">
<font style="font-family: Times New Roman; font-size: 13px">Code of
Ethics and Trading Restrictions</font></a></div>
</td>
<td style="vertical-align: top; width: 45%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 14px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">44</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following exhibits are filed with this Annual Report on Form
20-F:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid rgb(0, 0, 0); border-top: 0.5pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 20px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Exhibit
Number</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Description of
Exhibit</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">12.1</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="qzm_ex121.htm"><font style="font-family: Times New Roman; font-size: 13px">Section 302
Certification of the Chief Executive Officer</font></a></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">12.2</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="qzm_ex122.htm"><font style="font-family: Times New Roman; font-size: 13px">Section 302
Certification of the Chief Financial Officer</font></a></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">13.1</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="qzm_ex131.htm"><font style="font-family: Times New Roman; font-size: 13px">Section 906
Certification of the Chief Executive Officer</font></a></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">13.2</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="qzm_ex132.htm"><font style="font-family: Times New Roman; font-size: 13px">Section 906
Certification of the Chief Financial Officer</font></a></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">99.1</font></div>
</td>
<td style="vertical-align: top; width: 88%; border-left: 0.5pt solid #000000; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 103px; text-indent: 0px"><a href="qzm_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">Independent
Auditor&#x2019;s Report, dated November 20, 2020; Statements of
financial position as at July 31, 2020, and July 31,
2019;</font></a></div>

<div style="text-align: left; margin-left: 12px; margin-right: 15px; text-indent: 0px"><a href="qzm_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">Statements of
income (loss) and comprehensive income (loss) for the years ended
July 31, 2020, July 31, 2019, and July 31, 2018;</font></a></div>

<div style="text-align: left; margin-left: 12px; margin-right: 9px; text-indent: 0px"><a href="qzm_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">Statements of cash
flows for the years ended July 31, 2020, July 31, 2019, and July
31, 2018; and</font></a></div>

<div style="text-align: left; margin-left: 12px; margin-right: 4px; text-indent: 0px"><a href="qzm_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">Statements of
changes in shareholders&#x2019; equity (deficiency) for the years
ended July 31, 2020, July 31, 2019, and July 31,
2018;</font></a></div>

<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><a href="qzm_ex991.htm"><font style="font-family: Times New Roman; font-size: 13px">Notes to audited
annual financial statements</font></a></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">45</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
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<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SIGNATURES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
registrant hereby certifies that it meets all of the requirements
for filing on Form 20-F and that it has duly caused and authorized
the undersigned to sign this Annual Report on its
behalf.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">QUARTZ
MOUNTAIN RESOURCES LTD.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; text-indent: 0px; margin-right: 0px;"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="text-decoration: underline">/s/ Trevor
Thomas</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
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<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Trevor
Thomas</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 304px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">President and Chief
Executive Officer</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 304px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Dated:
November 20, 2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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qzm_20f
UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C.
20549
FORM
20-F
☐
REGISTRATION STATEMENT PURSUANT TO
SECTION 12(b) or 12(g) OF THE SECURITIES EXCHANGE ACT OF
1934
OR
☒
ANNUAL REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the
fiscal year ended July 31, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
OR
☐
SHELL COMPANY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file
number 0-15490
QUARTZ
MOUNTAIN RESOURCES LTD.
(Exact
name of Registrant as specified in its charter)
BRITISH
COLUMBIA, CANADA
(Jurisdiction of
incorporation or organization)
15th
Floor, 1040 West Georgia Street Vancouver, British Columbia,
Canada, V6E 4H1
(Address of
principal executive offices)
Sebastian
Tang, Chief Financial Officer (appointed in August
2020)
Facsimile
No.: 604-681-2741
15th
Floor, 1040 West Georgia Street
Vancouver,
British Columbia, Canada, V6E 4H1
(Name,
Telephone, E-mail and/or Facsimile number and Address of Company
Contact Person)
Securities
registered or to be registered pursuant to Section 12(b) of the
Act.
Title
of Each Class:
Name of
each exchange on which registered
Not
applicable
Not
applicable
Securities
registered or to be registered pursuant to Section 12(g) of the Act
Common shares, no par value
Securities for
which there is a reporting obligation pursuant to Section 15(d) of
the Act.
None
Indicate the number
of outstanding shares of each of the issuer's classes of capital or
common stock as of the close of the period covered by the annual
report:
25,477,776 common
shares as of July 31, 2020
Indicate by check
mark if the Registrant is a well-known seasoned issuer, as defined
in Rule 405 of the Securities Act.
Yes
[  ]
No [X]
If this report is
an annual or transition report, indicate by check mark if the
Registrant is not required to file reports pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934.
Yes
[  ]
No [X]
Indicate by check
mark whether Registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that
Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90
days.
Yes
[X]
No
[  ]
Indicate by check
mark whether the registrant has submitted electronically and posted
on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was
required to submit and post such files).
Yes
[  ]
No [X]
Indicate by check
mark whether the Registrant is a large accelerated filer, an
accelerated filer, or non-accelerated filer. See definition of
"accelerated filer" and "large accelerated
filer" in Rule 126-2 of the Exchange Act.
Large Accelerated
Filer [  ]
Accelerated Filer
[  ]
Non-Accelerated
Filer [X]
Indicate by check
mark which basis of accounting the registrant has used to prepare
the financial statements included in this
filing:
U.S. GAAP
[  ]
International
Financial Reporting Standards as issued [X]
by the International Accounting Standards Board
Other
[  ]
If
"Other" has been checked in response to the previous
question, indicate by check mark which financial statement item the
registrant has elected to follow.
Item 17
[  ]
Item 18
[  ]
If this is an
annual report, indicate by check mark whether the Registrant is a
shell company (as defined in Rule 12b-2 of the Exchange
Act):
Yes
[  ]
No [X]
GENERAL
5
CURRENCY AND MEASUREMENT
7
NOTE ON FORWARD LOOKING STATEMENTS
7
ITEM 1
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
7
ITEM 2
OFFER STATISTICS AND EXPECTED TIMETABLE
8
ITEM 3
KEY INFORMATION
8
A.
SELECTED FINANCIAL DATA
8
B.
CAPITALIZATION AND INDEBTEDNESS
9
C.
REASONS FOR THE OFFER AND USE OF PROCEEDS
9
D.
RISK FACTORS
9
ITEM 4
INFORMATION ON THE COMPANY
14
A.
HISTORY AND DEVELOPMENT OF THE COMPANY
14
B.
BUSINESS OVERVIEW
14
C.
MINERAL PROPERTIES AND EXPLORATION ACTIVITIES AND
PLANS
15
D.
ORGANIZATIONAL STRUCTURE
16
E.
PROPERTY, PLANT AND EQUIPMENT
16
F.
CURRENCY
16
ITEM 4A
UNRESOLVED STAFF COMMENTS
16
ITEM 5
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
OVERVIEW
16
16
A.
OPERATING RESULTS
17
B.
LIQUIDITY AND CAPITAL RESOURCES
18
C.
RESEARCH EXPENDITURES
18
D.
TREND INFORMATION
19
E.
OFF – BALANCE SHEET ARRANGEMENTS
19
F.
TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
19
G.
SAFE HARBOR
19
ITEM 6
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
19
A.
DIRECTORS AND SENIOR MANAGEMENT
19
B.
COMPENSATION
20
C.
BOARD PRACTICES
21
D.
EMPLOYEES
24
E.
SHARE OWNERSHIP
25
ITEM 7
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
25
A.
MAJOR SHAREHOLDERS
25
B.
RELATED PARTY TRANSACTIONS
26
C.
INTERESTS OF EXPERTS AND COUNSEL
27
ITEM 8
FINANCIAL INFORMATION
28
A.
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL
INFORMATION
28
B.
SIGNIFICANT CHANGES
28
ITEM 9
THE OFFER AND LISTING
28
A.
OFFER AND LISTING DETAILS
28
B.
PLAN OF DISTRIBUTION
29
C.
MARKETS
29
D.
SELLING SHAREHOLDERS
29
E.
DILUTION
29
F.
EXPENSES OF THE ISSUE
30
ITEM 10
ADDITIONAL INFORMATION
30
A.
SHARE CAPITAL
30
B.
MEMORANDUM AND ARTICLES OF ASSOCIATION
30
C.
MATERIAL CONTRACTS
32
D.
EXCHANGE CONTROLS
32
E.
TAXATION
32
F.
DIVIDENDS AND PAYING AGENTS
40
G.
STATEMENT BY EXPERTS
41
H.
DOCUMENTS ON DISPLAY
41
I.
SUBSIDIARY INFORMATION
41
ITEM 11
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
41
A.
TRANSACTION RISK AND CURRENCY RISK MANAGEMENT
41
B.
EXCHANGE RATE SENSITIVITY
41
C.
INTEREST RATE RISK AND EQUITY PRICE RISK
41
D.
COMMODITY PRICE RISK
41
ITEM 12
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
41
ITEM 13
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
41
ITEM 14
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
42
ITEM 15
CONTROLS AND PROCEDURES
42
A.
DISCLOSURE CONTROLS AND PROCEDURES
42
B.
MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
42
CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING
42
LIMITATIONS
OF CONTROLS AND PROCEDURES
43
ITEM 16
[RESERVED]
43
ITEM 16A
AUDIT COMMITTEE FINANCIAL EXPERT
43
ITEM 16B
CODE OF ETHICS
43
ITEM 16C
PRINCIPAL ACCOUNTANT FEES AND SERVICES
44
ITEM 16D
EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT COMMITTEES
44
ITEM 16E
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
44
ITEM 16F
CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
44
ITEM 16G
CORPORATE GOVERNANCE
44
ITEM 16H
MINE SAFETY DISCLOSURE
45
ITEM 17
FINANCIAL STATEMENTS
45
ITEM 18
FINANCIAL STATEMENTS
45
ITEM 19
EXHIBITS
45
GENERAL
In this
Annual Report on Form 20-F, all references to "we", the
"Company", or "Quartz Mountain" refer to Quartz Mountain
Resources Ltd. and its consolidated subsidiary.
The
Company uses the Canadian dollar as its reporting currency. All
references in this document to "dollars" or "$" are expressed in
Canadian dollars, unless otherwise indicated. See also
Item 3 –
"Key
Information"
for
more detailed currency and conversion information.
Except
as noted, the information set forth in this Annual Report is as of
November 20, 2020 and all information included in this document
should only be considered correct as of such date.
Certain
terms used herein are defined as follows:
Mineral
Reserve
Securities and
Exchange Commission Industry Guide 7 "Description of Property
by Issuers Engaged or to be Engaged in Significant Mining
Operations" (under the United States Securities Exchange Act
of 1934, as amended) defines a 'reserve' as that part
of a mineral deposit which could be economically and legally
extracted or produced at the time of the reserve determination.
Reserves consist of:
(1) Proven
(Measured) Reserves. Reserves for which: (a) quantity is computed
from dimensions revealed in outcrops, trenches, workings or drill
holes; grade and/or quality are computed from the results of
detailed sampling; and (b) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so
well defined that size, shape, depth and mineral content of
reserves are well-established.
(2) Probable
(Indicated) Reserves. Reserves for which quantity and grade and/or
quality are computed from information similar to that used for
proven (measured) reserves, but the sites for inspection, sampling
and measurement are farther apart or are otherwise less adequately
spaced. The degree of assurance, although lower than that for
proven (measured) reserves, is high enough to assume continuity
between points of observation.
As a reporting
issuer under the Securities Acts of British Columbia and Alberta,
the Company is subject to National Instrument 43-101
"Standards of Disclosure for Mineral Projects" of the
Canadian Securities Administrators. Securities and Exchange
Commission Industry Guide 7, as interpreted by Securities and
Exchange Commission Staff, applies standards that are different
from those prescribed by National Instrument 43-101 in order to
classify mineralization as a reserve. In particular, Mineral
Reserves under National Instrument 43-101 are defined as the
economically mineable part of a Measured and/or Indicated Mineral
Resource. It includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted and is
defined by studies at Pre-Feasibility or Feasibility level as
appropriate that include application of Modifying Factors, which
are considerations used to convert Mineral Resources to Mineral
Reserves and include, but are not restricted to, mining,
processing, metallurgical, infrastructure, economic, marketing,
legal, environmental, social and governmental factors. Such studies
demonstrate that, at the time of reporting, extraction could
reasonably be justified. The reference point at which Mineral
Reserves are defined, usually the point where the ore is delivered
to the processing plant, must be stated. It is important that, in
all situations where the reference point is different, such as for
a saleable product, a clarifying statement is included to ensure
that the reader is fully informed as to what is being reported. The
public disclosure of a Mineral Reserve must be demonstrated by a
Pre-Feasibility Study or Feasibility Study.
Under the standards
of the Securities and Exchange Commission, mineralization may not
be classified as a "reserve" unless the determination
has been made that the mineralization could be economically and
legally produced or extracted at the time the reserve determination
is made. Among other things, all necessary permits would be
required to be in hand or issued imminently in order to classify
mineralized material as reserves under Securities and Exchange
Commission Industry Guide 7. Accordingly, mineral reserve estimates
established in accordance with National Instrument 43-101 may not
qualify as "reserves" under SEC standards. The Company
does not currently have any mineral deposits that have been
classified as reserves.
4
5
Mineral
Resource
National Instrument
43-101 "Standards of Disclosure for Mineral Projects"
issued by the Canadian Securities Administrators defines a
"mineral Resources as a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in
such form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade or quality, continuity and other geological characteristics
of a Mineral Resource are known, estimated, or interpreted from
specific geological evidence and knowledge, including sampling.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated, and Measured
categories. An Inferred Mineral Resource has a lower level of
confidence that that applied to an Indicated Mineral Resource, and
an Indicated Mineral resource has a lower level of confidence than
that applied to a Measured Mineral Resource.
(1)           An
Inferred Mineral Resource is that part of a Mineral Resource for
which quantity and grade or quality are estimated on the basis of
limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity; it has a lower level of confidence than that applying
to an Indicated Mineral Resource and must not be converted to a
Mineral Reserve. It is reasonably expected that the majority of
Inferred Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.
(2)           An
Indicated Mineral Resource is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape and physical
characteristics are estimated with sufficient confidence to allow
the application of Modifying Factors in sufficient detail to
support mine planning and evaluation of the economic viability of
the deposit. Geological evidence is derived from adequately
detailed and reliable exploration, sampling and testing and is
sufficient to assume geological and grade or quality continuity
between points of observation; it has a lower level of confidence
than that applying to a Measured Mineral Resource and may only be
converted to a Probable Mineral Reserve.
(3)           A
Measured Mineral Resource is that part of a Mineral Resource for
which quantity, grade or quality, densities, shape, and physical
characteristics are estimated with confidence sufficient to allow
the application of Modifying Factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and reliable
exploration, sampling and testing and is sufficient to confirm
geological and grade or quality continuity between points of
observation. It has a higher level of confidence than that applying
to either an Indicated Mineral Resource or an Inferred Mineral
Resource. It may be converted to a Proven Mineral Reserve or to a
Probable Mineral Reserve.
Industry Guide 7
– "Description of Property by Issuers Engaged or to be
Engaged in Significant Mining Operations" of the Securities and
Exchange Commission does not define or recognize resources. In
addition, disclosure of resources using "contained ounces" is
permitted under Canadian regulations; however, the Securities and
Exchange Commission only permits issuers to report mineralization
that does not qualify as a reserve as in place tonnage and grade
without reference to unit measures. As used in this Form 20-F,
"resources" are as defined in National Instrument
43-101.
For the
above reasons, information in the Company's publicly-available
documents containing descriptions of the Company's mineral deposits
may not be comparable to similar information made public by U.S.
companies subject to the reporting and disclosure requirements
under the United States federal securities laws and the rules and
regulations thereunder.
Mineral
Symbols
As
– arsenic; Au – gold; Ag – silver; Cu –
copper; Fe – iron; Hg – mercury; Mo – molybdenum;
Na – sodium; Ni – nickel; O – oxygen; Pd -
palladium; Pt – platinum; Pb – lead; S – sulphur;
Sb – antimony; Zn – zinc.
Net
Smelter Return (NSR)
Monies
received for concentrate delivered to a smelter net of
metallurgical recovery losses, transportation costs, smelter
treatment-refining charges, and penalty charges.
6
CURRENCY
AND MEASUREMENT
All
currency amounts in this Annual Report are stated in Canadian
dollars unless otherwise indicated. Conversion of metric units into
imperial equivalents is as follows:
Metric
Units
Multiply
by
Imperial
Units
Hectares
2.471
=
acres
Meters
3.281
=
feet
kilometers
0.621
= miles
(5,280 feet)
Grams
0.032
= troy
ounces
Tons
1.102
= short
tons (2,000 lbs.)
grams
per ton
0.029
= troy
ounces per ton
NOTE ON FORWARD LOOKING
STATEMENTS
This
Annual Report on Form 20-F contains statements that constitute
"forward-looking statements". Any statements that are not
statements of historical facts may be deemed forward-looking
statements. These statements appear in a number of different places
in this Annual Report and, in some cases, can be identified by
words such as "anticipates", "estimates", "projects", "expects",
"intends", "believes", "plans", or their negatives or other
comparable words. The forward-looking statements, including the
statements contained in
Item 3D "Risk
Factors",
Item 4B
"Business
Overview"
,
Item 5
"Operating and Financial Review and Prospects"
and
Item 11 "Quantitative
and
Qualitative
Disclosures About Market Risk",
involve known and
unknown risks, uncertainties and other factors which may cause the
Company's actual results, performance or achievements to be
materially different from any future results, performance or
achievements that may be expressed or implied by such statements.
Forward-looking statements include statements regarding the outlook
for the Company's future operations, plans and timing for the
Company's exploration programs, statements about future market
conditions, supply and demand conditions, forecasts of future costs
and expenditures, the outcome of legal proceedings, and other
expectations, intentions and plans that are not historical
facts.
You are
cautioned that forward-looking statements are not guarantees. The
risks and uncertainties that could cause the Company's actual
results to differ materially from those expressed or implied by the
forward-looking statements include:
●
changes in general
economic and business conditions, including commodity prices, costs
associated with mineral exploration and development, changes in
interest rates and the availability of financing on reasonable
terms;
●
natural phenomena,
including geological and meteorological phenomena;
●
actions by
government authorities, including changes in government regulation
and permitting requirements;
●
uncertainties
associated with legal proceedings;
●
future decisions by
management in response to changing conditions;
●
the Company's
ability to execute prospective business plans; and
●
misjudgments in the
course of preparing forward-looking statements.
The
Company advises you that these cautionary remarks expressly
qualify, in their entirety, all forward-looking statements
attributable to Quartz Mountain or persons acting on the Company's
behalf. The Company assumes no obligation to update the Company's
forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such statements.
You should carefully review the cautionary statements and risk
factors contained in this and other documents that the Company
files from time to time with the Securities and Exchange
Commission.
ITEM
1
IDENTITY OF
DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
Not
applicable for an annual report.
7
ITEM 2
OFFER STATISTICS AND EXPECTED TIMETABLE
Not
applicable for an annual report.
ITEM 3
KEY
INFORMATION
A.  SELECTED FINANCIAL
DATA
The
following tables summarize selected financial data for the Company
(stated in Canadian dollars) prepared, in respect of the years
ended July 31, 2020 and July 31, 2019, in accordance with
International Financial Reporting Standards ("IFRS") as
issued by the International Accounting Standards Board
("IASB") ("IFRS-IASB").
As
permitted by SEC Release No. 33-8879 "Acceptance from Foreign
Private Issuers of Financial Statements Prepared in Accordance with
International Reporting Standards without Reconciliation to U.S.
GAAP", the Company includes selected financial data prepared
in compliance with IFRS-IASB without reconciliation to U.S.
GAAP.
The
selected financial data of the Company for the fiscal years
presented was derived from the consolidated financial statements of
the Company that have been audited by Davidson & Company LLP,
independent Registered Public Accountants, as indicated in their
audit report which is included at Exhibit 99.1 in this Annual
Report.
The
auditors conducted their audits in accordance with United States
and Canadian generally accepted auditing standards, and the
standards of the Public Company Accounting Oversight Board (United
States).
Year ended July
31, 2020
Year ended July
31, 2019
Year ended July
31, 2018
Year ended July
31, 2017
Year ended July
31, 2016
Sales
revenue
$
–
$
–
$
–
$
–
$
–
Loss (income) from
operating expenses
$
249,442
$
149,170
$
236,319
$
201,081
$
322,605
Loss (income) and
comprehensive loss (income)
$
(2,524,763
)
$
153,715
$
234,467
$
199,953
$
(92,549
)
Basic loss
(earnings) per common share
$
(0.16
)
$
0.02
$
0.02
$
0.02
$
(0.01
)
Diluted loss
(earnings) per common share
$
(0.13
)
$
0.02
$
0.02
$
0.02
$
(0.01
)
Dividends per
share
$
–
$
–
$
–
$
–
$
–
Working
capital
$
138,550
$
(2,995,655
)
$
(2,841,940
)
$
(3,066,336
)
$
(2,866,383
)
Total
assets
$
218,559
$
80,562
$
75,034
$
232,153
$
313,168
Shareholder's
deficiency
(equity)
$
(138,551
)
$
2,995,654
$
2,841,939
$
3,066,335
$
2,866,382
Share
capital
$
27,158,423
$
26,548,981
$
26,548,981
$
26,090,118
$
26,090,118
Shares
outstanding
25,477,776
3,347,137
3,347,137
2,929,989
2,929,989
Currency
and Exchange Rates
On
November 20, 2020 the rate of exchange of the Canadian dollar,
based on the daily noon rate in Canada as published by the Bank of
Canada, was US$1 = Canadian $1.3083.
The
following tables set out the exchange rates, based on the daily
noon rates in Canada as published by Bank of Canada for the
conversion of Canadian dollars per U.S. dollar.
8
For
the fiscal year ended July 31, (Canadian Dollars per U.S.
Dollar)
2020
2019
2018
2017
2016
End of
Period
1.3404
1.3193
1.3008
1.2485
1.3056
Average for the
Period
(1)
1.3463
1.3235
1.2760
1.3237
1.3285
High for the
Period
1.4496
1.3641
1.3137
1.3743
1.4661
Low for the
Period
1.2970
1.2815
1.2314
1.2447
1.2497
(1) The
average rate for each period is the average of the daily noon rates
on the last day of each month during the period.
Monthly High and Low
Exchange Rate (Canadian Dollars per U.S. Dollar)
Month
High
Low
October
2020
1.3349
1.3122
September
2020
1.3396
1.3055
August
2020
1.3377
1.3042
July
2020
1.3616
1.3360
June
2020
1.3682
1.3383
B.
CAPITALIZATION
AND INDEBTEDNESS
Not
applicable.
C.
REASONS
FOR THE OFFER AND USE OF PROCEEDS
Not
applicable.
D.
RISK
FACTORS
The
risk factors associated with the principal business of the Company
are discussed below. The Company does not currently hold any
mineral properties but is looking for new opportunities. If it
acquires a new mineral property(s), the Company would be subject to
the highly speculative nature of the resources industry
characterized by the requirement for large capital investments from
an early stage and a very small probability of finding economic
mineral deposits. In addition to the general risks of mining, there
are country-specific risks, including currency, political, social,
permitting and legal risk. An investor should carefully consider
the risks described below and the other information that Quartz
Mountain furnishes to, or files with, the Securities and Exchange
Commission and with Canadian securities regulators before investing
in Quartz Mountain's common shares, and should not consider an
investment in Quartz Mountain unless the investor is capable of
sustaining an economic loss of the entire investment. The Company's
actual exploration and operating results may be very different from
those expected as at the date of this MD&A.
Going
Concern Assumption
The
Company's financial statements have been prepared assuming the
Company will continue on a going concern basis. However, unless
additional funding is obtained, this assumption will have to
change. The Company has positive working capital, and incurred
losses since inception. Failure to continue as a going concern
would require that Quartz Mountain's assets and liabilities be
restated on a liquidation basis, which could differ significantly
from the going concern basis.
9
Additional
Funding Requirements
Further
development of the Company's continued operations will require
additional capital. The Company currently does not have sufficient
funds to explore the properties it holds. It is possible that the
financing required by the Company will not be available, or, if
available, will not be available on acceptable terms. If the
Company does issue treasury shares to finance its operations or
expansion plans, shareholders will suffer dilution of their
investment and control of the Company may change. If adequate funds
are not available, or are not available on acceptable terms, the
Company will not be able to remain in business. In addition, a
positive production decision at any of the Company's current
projects or any other development projects acquired in the future
will require significant resources and funding for project
engineering and construction. Accordingly, any development of the
Company's properties depends upon the Company's ability to obtain
financing through debt financing, equity financing, the joint
venturing, or disposition of its current projects, or other means.
There is no assurance that the Company will be successful in
obtaining financing for these or other purposes, including for
general working capital.
Future
Profits/Losses and Production Revenues/Expenses
The
Company has no history of mining operations or earnings, and
expects that its losses and negative cash flow will continue for
the foreseeable future. The Company does not currently hold a
mineral property and there can be no assurance that the Company
will, if needed, be able to acquire a property(s) of sufficient
technical merit to represent a compelling investment opportunity.
If the Company is unable to acquire a property(s), its entire
prospects will rest solely with its current net smelter royalty
interest in the Angel Camp Project and accordingly, the risk of
being unable to identify a mineral deposit will be higher than if
the Company had additional properties to explore. There can be no
assurance that the Company will ever be profitable in the future.
The Company's operating expenses and capital expenditures may
increase in subsequent years as consultants, personnel and
equipment associated with advancing exploration, development and
commercial production of any properties that the Company may
acquire are added. The amounts and timing of expenditures will
depend on the progress of on-going exploration, the results of
consultants' analyses and recommendations, the rate at which
operating losses are incurred, the execution of any joint venture
agreements with strategic partners, and the Company's acquisition
of a property(s) and other factors, many of which are beyond the
Company's control. The Company does not expect to receive revenues
from operations in the foreseeable future, and expects to incur
losses unless and until such time as it acquires a property(s),
commence commercial production, and generate sufficient revenues to
fund its continuing operations. The development of any properties
the Company may acquire will require the commitment of substantial
resources to conduct the time-consuming exploration and development
of properties. The Company anticipates that it would retain any
cash resources and potential future earnings for the future
operation and development of the Company's business. The Company
has not paid dividends since incorporation and the Company does not
anticipate paying any dividends in the foreseeable future. There
can be no assurance that the Company will generate any revenues or
achieve profitability. There can be no assurance that the
underlying assumed levels of expenses will prove to be accurate. To
the extent that such expenses do not result in the creation of
appropriate revenues, the Company's business will be materially
adversely affected. It is not possible to forecast how the business
of the Company will develop.
Exploration,
Development and Mining Risks
Resource
exploration, development, and operations are highly speculative,
characterized by a number of significant risks, which even a
combination of careful evaluation, experience and knowledge may not
reduce, including among other things, unsuccessful efforts
resulting not only from the failure to discover mineral deposits
but from finding mineral deposits which, though present, are
insufficient in quantity and quality to return a profit from
production. Few properties that are explored are ultimately
developed into producing mines. Unusual or unexpected formations,
formation pressures, fires, power outages, labor disruptions,
flooding, explosions, cave-ins, landslides, and the inability to
obtain suitable or adequate machinery, equipment, or labor are
other risks involved in the operation of mines and the conduct of
exploration programs. The Company will rely upon consultants and
others for exploration, development, construction, and operating
expertise. Substantial expenditures are required to establish
mineral resources and mineral reserves through drilling, to develop
metallurgical processes to extract the metal from mineral
resources, and in the case of new properties, to develop the mining
and processing facilities and infrastructure at any site chosen for
mining.
No
assurance can be given that minerals will be discovered in
sufficient quantities to justify commercial operations or that
funds required for development can be obtained on a timely basis.
Whether a mineral deposit will be commercially viable depends on a
number of factors, some of
which are: the
particular attributes of the deposit, such as size, grade and
proximity to infrastructure; metal prices, which are highly
cyclical; and government regulations, including regulations
relating to prices, taxes, royalties, land tenure, land use,
importing and exporting of minerals, and environmental protection.
The exact effect of these factors cannot accurately be predicted,
but the combination of these factors may result in the Company not
receiving an adequate return on invested capital.
10
Permits
and Licenses
If the
Company acquires a new mineral property(s), its operations would
require licenses and permits from various governmental authorities.
There can be no assurance that the Company will be able to obtain
all necessary licenses and permits which may be required to carry
out exploration and development for the Company's
Projects.
Changes
in Local Legislation or Regulation
Any
mining and processing operations that may be acquired and any
exploration activities that might be conducted would be subject to
extensive laws and regulations governing the protection of the
environment, exploration, development, production, exports, taxes,
labor standards, occupational health, waste disposal, toxic
substances, mine and worker safety, protection of endangered and
other special status species and other matters. The Company's
ability to obtain permits and approvals and to successfully operate
in particular communities may be adversely impacted by real or
perceived detrimental events associated with the Company's
activities or those of other mining companies affecting the
environment, human health and safety of the surrounding
communities. Delays in obtaining or failure to obtain government
permits and approvals may adversely affect the Company's
operations, including its ability to explore or develop properties,
commence production or continue operations. Failure to comply with
applicable environmental and health and safety laws and regulations
may result in injunctions, fines, suspension, or revocation of
permits and other penalties. The costs and delays associated with
compliance with these laws, regulations and permits could prevent
the Company from proceeding with the development of a project or
the operation or further development of a mine or increase the
costs of development or production and may materially adversely
affect the Company's business, results of operations or financial
condition. The Company may also be held responsible for the costs
of addressing contamination at the site of current or former
activities or at third party sites. The Company could also be held
liable for exposure to hazardous substances.
Environmental
Matters
All of
the operations that the Company might acquire would be subject to
environmental regulations, which can make operations expensive or
prohibit them altogether. The Company may be subject to potential
risks and liabilities associated with pollution of the environment
and the disposal of waste products that could occur because of its
mineral exploration, development, and production. In addition,
environmental hazards may exist on a property in which the Company
directly or indirectly holds an interest, which are unknown to the
Company at present and have been caused by previous or existing
owners or operators of the Company's projects. Environmental
legislation provides for restrictions and prohibitions on spills,
releases or emissions of various substances produced in association
with certain mining industry operations that would result in
environmental pollution. A breach of such legislation may result in
the imposition of fines and penalties, or the requirement to remedy
environmental pollution, which would reduce funds otherwise
available to the Company and could have a material adverse effect
on the Company. If the Company is unable to remedy an environmental
problem, it could be required to suspend operations or undertake
interim compliance measures pending completion of the required
remedy, which could have a material adverse effect on the
Company.
There
is no assurance that future changes in environmental regulation, if
any, will not adversely affect the Company's operations. There is
also a risk that the environmental laws and regulations may become
more onerous, making the Company's operations more expensive. Many
of the environmental laws and regulations will require the Company
to obtain permits for its activities. The Company will be required
to update and review its permits from time to time, and may be
subject to environmental impact analyses and public review
processes prior to approval of the additional activities. It is
possible that future changes in applicable laws, regulations, and
permits or changes in their enforcement or regulatory
interpretation could have a significant impact on some portion of
the Company's business, causing those activities to be economically
re-evaluated at that time.
11
Groups
Opposed to Mining May Interfere with the Company's Efforts to
Explore and Develop its Properties
Organizations
opposed to mining may be active in the regions in which the Company
conducts its exploration activities. Although the Company intends
to comply with all environmental laws and maintain good relations
with local communities, there is still the possibility that those
opposed to mining will attempt to interfere with the development of
any property(s) the Company might acquire. Such interference could
have an impact on the Company's ability to explore and develop its
properties in a manner that is most efficient or appropriate, or at
all and any such impact could have a material adverse effect on the
Company's financial condition and the results of its
operations.
Market
for Securities and Volatility of Share Price
There
can be no assurance that an active trading market in the Company's
securities will be established or sustained. The market price for
the Company's securities is subject to wide fluctuations. Factors
such as announcements of exploration results, as well as market
conditions in the industry or the economy as a whole, may have a
significant adverse impact on the market price of the securities of
the Company.
The
stock market has from time to time experienced extreme price and
volume fluctuations that have often been unrelated to the operating
performance of particular companies.
Conflicts
of Interest
The
Company's directors and officers may serve as directors or officers
of other companies, joint venture partners, or companies providing
services to the Company or they may have significant shareholdings
in other companies. Situations may arise where the directors and/or
officers of the Company may be in competition with the Company. Any
conflicts of interest will be subject to and governed by the law
applicable to directors' and officers' conflicts of interest. In
the event that such a conflict of interest arises at a meeting of
the Company's directors, a director who has such a conflict will
abstain from voting for or against the approval of such
participation or such terms. In accordance with applicable laws,
the directors of the Company are required to act honestly, in good
faith and in the best interests of the Company.
General
Economic Conditions
Global
financial markets have experienced a sharp increase in volatility
during the last few years. Market conditions and unexpected
volatility or illiquidity in financial markets may adversely affect
the prospects of the Company and the value of the Company's
shares.
Reliance
on Key Personnel
The
Company is dependent on the continued services of its senior
management team, and its ability to retain other key personnel. The
loss of such key personnel could have a material adverse effect on
the Company. There can be no assurance that any of the Company's
employees will remain with the Company or that, in the future, the
employees will not organize competitive businesses or accept
employment with companies competitive with the
Company.
There
can be no assurance that the Company will be able to attract,
train, or retain qualified personnel in the future, which would
adversely affect its business.
Competition
The
resources industry is highly competitive in all its phases, and the
Company will compete with other mining companies, many of which
have greater financial, technical, and other resources. Competition
in the mining industry is primarily for attractive mineral rich
properties capable of being developed and producing economically;
the technical expertise to find, develop, and operate such
properties; the labor to operate the properties; and the capital
for the purpose of funding such properties. Many competitors not
only explore for and mine certain minerals, but also conduct
production and marketing operations on a worldwide basis. Such
competition may result in the Company being unable to acquire
desired properties, to recruit or retain qualified employees or to
acquire the capital necessary to fund its operations and develop
any property(s) the Company might acquire. The Company's inability
to compete with other mining companies for these resources could
have a materially adverse effect on the Company's results of
operation and its business.
12
Uninsurable
Risks
In the
course of exploration, development and production of mineral
properties, certain risks, and in particular, unexpected or unusual
geological operating conditions including rock bursts, cave ins,
fires, flooding and earthquakes may occur. It is not always
possible to fully insure against such risks and the Company may
decide not to take out insurance against such risks because of high
premiums or other reasons.
The
Mineral Property Underlying the Company's Net Smelter Return
Royalty Interest Contains no Known Ore
The
Company holds a 1% net smelter return ("NSR") royalty interest on
the Quartz Mountain Property (recently renamed "Angel's Camp"), an
exploration stage prospect in Oregon. The Company's interest in the
property will be limited to any future NSR that would be
forthcoming only if or when any mining commences on the property.
There is currently no known body of ore on the property. Extensive
additional exploration work will be required to ascertain if any
mineralization may be economic.
Likely
PFIC status has consequences for United States
investors
Potential investors
who are U.S. taxpayers should be aware that the Company expects to
be classified for U.S. tax purposes as a passive foreign investment
company ("PFIC") for the current fiscal year, and may also have
been a PFIC in prior years and may be a PFIC in future years. If
the Company is a PFIC for any year during a U.S. taxpayer's holding
period, then such U.S. taxpayer generally will be required to treat
any so-called "excess distribution" on its common shares, or any
gain realized upon a disposition of common shares, as ordinary
income which would be taxed at the shareholder's highest marginal
rates and to pay an interest charge on a portion of such
distribution or gain, unless the taxpayer has made a timely
qualified electing fund ("QEF") election or a mark-to-market
election with respect to the shares of the Company. In certain
circumstances, the sum of the tax and the interest charge may
exceed the amount of the excess distribution received, or the
amount of proceeds of disposition realized, by the taxpayer. A U.S.
taxpayer who makes a QEF election generally must report on a
current basis its share of the Company's net capital gain and
ordinary earnings for any year in which the Company is a PFIC,
whether or not the Company distributes any amounts to its
shareholders. A U.S. taxpayer who makes the mark-to-market election
generally must include as ordinary income each year the excess of
the fair market value of the common shares over the taxpayer's tax
basis therein. See also
Item 10E –
"Passive Foreign Investment Company
".
Potential investors
should also note that recently enacted legislation may require U.S.
shareholders to report their interest in a PFIC on an annual basis.
US shareholders of the Company should consult their tax advisors as
to these reporting requirements as well as the consequences of
investing in the Company.
Penny
stock classification
Penny
stock classification could affect the marketability of the
Company's common stock and shareholders could find it difficult to
sell their stock
The
penny stock rules in the United States require a broker-dealer,
prior to a transaction in a penny stock not otherwise exempt from
the rules, to deliver a standardized risk disclosure document that
provides information about penny stocks and the nature and level of
risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the
penny stock, the compensation of the broker-dealer and its
salesperson in the transaction, and monthly account statements
showing the market value of each penny stock held in the customer's
account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer
orally or in writing prior to effecting the transaction and must be
given to the customer in writing before or with the customer's
confirmation.
Further, the penny
stock rules require that prior to a transaction in a penny stock
not otherwise exempt from such rules; the broker-dealer must make a
special written determination that the penny stock is a suitable
investment for the purchaser and receive the purchaser's written
agreement to the transaction. These additional broker-dealer
practice and disclosure requirements may have the effect of
reducing the level of trading activity in the secondary market for
the Company's common shares in the U.S., and shareholders may find
it more difficult to sell their shares.
13
ITEM 4
INFORMATION ON THE COMPANY
A.
HISTORY
AND DEVELOPMENT OF THE COMPANY
Incorporation
The
legal name of the Company is "Quartz Mountain Resources
Ltd."
Quartz
Mountain Resources Ltd. was incorporated on August 3, 1982, in
British Columbia, Canada, and it continues to subsist under the
laws of the Province of British Columbia.
The
Company was originally incorporated as Wavecrest Resources Ltd. but
changed its name to Quartz Mountain Gold Corp. on June 18, 1986. On
November 5, 1997, the name of the Company was changed from Quartz
Mountain Gold Corp. to Quartz Mountain Resources Ltd., and the
common shares were consolidated on a ten-old-for-one-new share
basis.
Market
for the Company's Securities
The
Company's common shares were quoted on NASDAQ SmallCap Market in
the United States from September 17, 1987 until May 12, 1994. The
Company's common shares were also listed on the Toronto Stock
Exchange until November 10, 1994. The Company voluntarily
surrendered its listing on the Vancouver Stock
Exchange.
In
2000, the Company listed on a newly created Tier 3 of the Canadian
Venture Exchange (now renamed the TSX Venture Exchange ("TSX-V")).
In December 2003, the Company was reclassified as a Tier 2 company
on the TSX-V. On February 17, 2005, the Company transferred its
listing to NEX, a separate board of the TSX-V established in 2003
to provide a new trading forum for listed companies that had fallen
below the TSX-V's continued listing standards, due to low levels of
business activity.
The
Company was relisted on the TSX-V on December 30,
2011.
Currently, the
Company's common shares trade on the TSX-V under the symbol QZM,
and certain broker-dealers in the United States make market in the
Company's common shares on the OTC Grey Market under the symbol
QZMRF.
Offices
The
Company's business office is located at 15th Floor, 1040 West
Georgia Street, Vancouver, British Columbia V6E 4H1; telephone
(604) 684-6365. The Company's registered office is Suite 1500
– 1055 West Georgia Street, Vancouver, British Columbia V6E
4N7, telephone (604) 689-9111.
B.
BUSINESS
OVERVIEW
The
Company's Business Strategy and Principal Activities
Quartz
Mountain has been in the business of exploring and developing
mineral properties. The Company's activities on the
properties have been primarily focused on ascertaining whether the
properties host commercially viable mineral deposits.
In the
first three years of its existence, the Company was active in the
exploration of small gold and silver prospects in Canada, but none
of these prospects warranted further exploration or development. In
1986, the Company acquired the Quartz Mountain gold property,
located in south central Oregon, and until January 2002, most of
the Company's efforts were expended on the exploration and
maintenance of these claims. The Company's interests in the Quartz
Mountain gold property, and in its other properties, were acquired
by direct purchase, lease, and option, or through joint
ventures.
The
Company sold the Quartz Mountain gold property during 2002, to
Seabridge Resources Ltd. and Seabridge Resources Inc. (collectively
"Seabridge"). Seabridge subsequently changed its name to Seabridge
Gold Inc. At closing, Quartz Mountain received 300,000 Seabridge
common shares, 200,000 Seabridge common share purchase warrants,
US$100,000, and a 1% NSR from any future production on the Quartz
Mountain gold property. The Seabridge warrants were exercised and
all Seabridge common shares held by the Company have been sold. The
Company's interest in the Quartz Mountain gold property is limited
to the 1% NSR royalty. The Company does not expect to generate any
royalty revenue from the Quartz Mountain gold property (renamed
"Angel's Camp" by its subsequent owners) for several years, and it
is not known at this time when any mining will commence, if at all,
on that property.
14
Following the sale
of the Quartz Mountain gold property, the Company continued in its
efforts to find a suitable mineral property for potential
acquisition and exploration during the period of 2002 to
2011.
In
December 2011, the Company acquired an option to earn a 100%
interest in the Buck gold-silver property near the town of Houston
in central British Columbia (the "Buck Project").
Concurrently with the Buck Project acquisition, the Company
completed a $4.2 million private placement financing and began
trading on the TSX-V. Exploration programs were carried out at Buck
in 2011 and 2012, confirming targets. Difficult financing
conditions for junior companies in 2013 necessitated that the
Company limit its exploration expenditures and prioritize its
property holdings. As a result, Quartz Mountain terminated its
option on the Buck Project in July 2013.
In
August 2012, the Company acquired 100% of the Galaxie copper-gold
property in northwestern British Columbia (the "Galaxie
Project"), and carried out exploration programs in 2012 at
five new prospects within the property as well as at the Gnat
porphyry copper deposit.
Quartz
Mountain acquired the ZNT Project by utilizing British
Columbia's on-line mineral tenure system in 2012. The ZNT
Project is located 15 kilometers southeast of the town of Smithers,
British Columbia. Exploration in 2012 and 2013 has identified
potential for the discovery of a bulk tonnage silver deposit at
ZNT.
In
November 2012, Quartz Mountain entered into an option and joint
venture agreement with Amarc Resources Ltd. ("Amarc")
pursuant to which Amarc could earn a 40% ownership interest, with
an option to acquire an additional 10% ownership interest, in the
Galaxie and ZNT Projects. Amarc gained an initial 40% interest in
the Galaxie and ZNT Projects by funding a drilling program at Gnat
porphyry copper deposit at the Galaxie Project in late 2012. In
June 2013, Quartz Mountain and Amarc entered into an amendment
agreement through which Amarc had an option until October 31, 2013
to earn a 60% interest in each of the ZNT and Galaxie properties,
by making certain property expenditures. Amarc earned a 60%
interest in the ZNT Project but earned only a 40% interest in the
Galaxie Project. In April 2014, Amarc terminated joint ventures
with the Company and returned earned interests in the Galaxie and
ZNT Projects in British Columbia and Quartz Mountain owned 100% of
the Galaxie and ZNT Projects.
After
carrying out exploration in 2012 and 2013, the ZNT Project did not
warrant further work. The mineral claims comprising the property
were allowed to lapse subsequent to the year ended July 31,
2016.
Work
was also conducted at the Galaxie Project in 2012 and 2013 but,
largely because of the prevailing difficult market conditions for
mineral exploration companies, the Company has since been unable to
secure a joint venture or option agreement to further advance
exploration. As a result, during the year ended July 31, 2016,
three mineral claims were returned to a vendor and the remaining
mineral claims comprising the property were allowed to lapse
subsequent to year-end.
The
Company is currently investigating new opportunities.
The
Company does not have any operating revenue and anticipates that it
will rely on sales of its equity securities in order to finance its
acquisition and exploration activities.
C.
MINERAL
PROPERTIES Angel's Camp Property
The
Company retains a 1% net smelter return royalty payable to the
Company on any production from the Angel's Camp property located in
Lake County, Oregon. The Angel's Camp property is currently held by
Alamos Gold Inc.
During
the year ended July 31, 2002, the Company sold 100% of its title,
rights and interest in the Angel's Camp property located in Lake
County, Oregon to Seabridge Resources Inc. ("Seabridge"), which
later changed its name to Seabridge Gold Inc., for 300,000 common
shares of Seabridge (sold in prior years), 200,000 common share
purchase warrants of Seabridge (exercised and sold in prior years),
cash of $100,000, and a 1% net smelter return royalty payable to
the Company on any production from the Angel's Camp
property.
In
2003, Seabridge optioned a 50% interest in the property to Quincy
Gold Inc., which later changed its name to Golden Predator Mines
Inc., then to Golden Predator Royalty & Development
Corporation, then to Golden Predator Corporation, and is now named
Americas Bullion Royalty Corp (TSX:AMB).
In
April 2012, Orsa Ventures Corp. ("Orsa") (TSX-V: ORN)
exercised its option to acquire all of Seabridge's remaining
undivided 50% beneficial joint venture interest in the Angel's Camp
property. In March 2013, Orsa announced it had entered into an
agreement with Americas Bullion Royalty Corp. to acquire, over a
number of years, the 50% of Angel's Camp that it did not own.
Additionally, in March 2013 Orsa announced that it had received
regulatory approval for, and fulfilled closing
requirements for
the joint venture purchase agreement with Americas Bullion Royalty
Corp. to acquire their 50% joint venture interest in the Angel's
Camp Property.
In
September 2013, Alamos Gold Inc. reported the completion of the
acquisition of all of the issued and outstanding common shares of
Orsa Ventures Corp.
15
Other
Properties
After
carrying out exploration in 2012 and 2013, the ZNT Project did not
warrant further work. The mineral claims comprising the property
lapsed during the year ended July 31, 2016.
Work
was conducted at the Galaxie Project in 2012 and 2013 but, largely
because of the prevailing difficult market conditions for mineral
exploration companies, the Company has since been unable to secure
a joint venture or option agreement to further advance exploration.
As a result, three mineral claims were returned to a vendor and the
remaining mineral claims comprising the property were allowed to
lapse.
The
Company is currently investigating new opportunities.
D.
ORGANIZATIONAL
STRUCTURE
The
Company operates in a single reportable operating segment –
the acquisition, exploration, and development of mineral property
interests. The Company is currently focused on the acquisition and
exploration of mineral property interests in Canada, and conducts
most of its business affairs through its Canadian parent
entity.
The
Company has two inactive wholly owned subsidiaries, QZMG Resources
Ltd., a Nevada corporation who owns 100% interest in Wavecrest
Resources Inc., a Delaware corporation.
E.
PROPERTY,
PLANT AND EQUIPMENT
The
Company has no material tangible fixed assets, such as mining
equipment or plant facilities.
F.
CURRENCY
All
currency amounts in this Annual Report are stated in Canadian
dollars unless otherwise indicated (see
Item
3
for exchange
rate information).
ITEM 4A
UNRESOLVED STAFF COMMENTS
Not
applicable.
ITEM
5
OPERATING AND FINANCIAL REVIEW AND PROSPECTS
OVERVIEW
Effective May 27,
2020, the Company completed a forward share split (the "Share
Split") on the basis of two additional common shares for
every common share outstanding prior to the Share Split.
Outstanding warrants were adjusted by the same share split ratio.
All references to shares and per share amounts have been
retroactively restated to give effect to the Share
Split.
During
fiscal 2020, the Company completed a private placement financing, a
settlement of debt owed to a related party and forward share
split.
The
Company's financial statements are prepared on the basis that it
will continue as a going concern. The Company has incurred losses
since inception, and the ability of the Company to continue as a
going concern depends upon its ability to continue to raise
adequate financing and to develop profitable operations. Quartz
Mountain's financial statements do not reflect adjustments, which
could be material, to the carrying values of assets and
liabilities, which may be required should the Company not be able
to continue as a going concern.
The
following discussion should be read in conjunction with the audited
annual consolidated financial statements for the years ended July
31, 2020, 2019 and 2018 and the related notes accompanying this
Annual Report. The Company prepares its financial statements in
accordance with
IFRS. The Company
includes selected financial data prepared in compliance with IFRS
without reconciliation to U.S. GAAP.
16
CRITICAL
ACCOUNTING POLICIES AND ESTIMATES
The
required disclosure is provided in note 2 of the accompanying
audited financial statements as of and for the year ended July 31,
2020, which are presented in Exhibit 99.1 of this Annual Report on
Form 20-F.
A.
OPERATING
RESULTS
Comprehensive
income (loss) for the year ended July 31, 2020 vs.
2019
The
Company recorded an income from operations of $2,524,763 during the
current fiscal year (2019
– loss of
$153,715). The increase in income in fiscal 2020 was due to the
gain of $2,779,882 on debt settlement.
$23,275 of property
investigation costs were incurred during the year ended July 31,
2020 (2019 - $nil).
The
following table provides a breakdown of the administration costs
incurred:
General and
Administration costs
2020
2019
Administrative
fees
$
77,603
$
50,406
Insurance
35,730
31,779
IT
Services
12,000
12,000
Legal, accounting
and audit
29,885
20,306
Office and
miscellaneous
1,572
1,245
Property
investigation
23,275
–
Regulatory, trust
and filing
64,233
28,682
Shareholder
communications
5,144
4,752
Total
$
249,442
$
149,170
Administrative
costs have increased from 2019 as the Company had several capital
restructuring and financing activities during fiscal 2020 and began
to search for the next mineral project.
Comprehensive
income (loss) for the year ended July 31, 2019 vs.
2018
The
Company recorded a loss from operations of $149,170 during the
current fiscal year (2018 –
$236,319).
No
exploration costs were incurred during the year ended July 31, 2019
and 2018. The following table provides a breakdown of the
administration costs incurred:
General and
Administration costs
2019
2018
Administrative
fees
$
50,406
$
71,458
Insurance
31,779
46,282
IT
Services
12,000
12,000
Legal, accounting
and audit
20,306
20,400
Office and
miscellaneous
1,245
16,148
Property
investigation
–
24,117
Regulatory, trust
and filing
28,682
39,628
Shareholder
communications
4,752
6,286
Total
$
149,170
$
236,319
Administrative
costs have decreased from 2018 in line with reduced spending to
conserve capital.
17
B.
LIQUIDITY
AND CAPITAL RESOURCES
Historically, the
Company's source of funding has been the issuance of equity
securities for cash, primarily through private placements to
sophisticated investors and institutions. The Company continues
evaluating mineral prospects for potential acquisition and
exploration in British Columbia. The Company's continuing
operations are dependent upon new projects, the ability of the
Company to obtain the necessary financing to complete exploration
of any new projects, the ability to obtain the necessary permits to
explore, develop, and mine new projects, and the future profitable
production of any mine. These material uncertainties raise
substantial doubt on the ability of the Company to continue as a
going concern.
At July
31, 2020, the Company had an accumulated deficit of $27,611,883 and
has a working capital of $138,550.
In
January 2016, the Company arranged with Hunter Dickinson Services
Inc. ("HDSI") to settle debt owing for services by HDSI
whereby HDSI would forgive debt in the net amount owing at that
time of $3,086,089, if the Company made a cash payment of $180,207
and issued 1,800,000 shares (pre- forward split basis of 600,000
shares) to HDSI. The TSX Venture Exchange approved the transaction
with HDSI, the cash payment has been made, and issuance of the
shares to HDSI was executed in December 2019. Additional debt or
equity financing will be required to fund exploration or
development programs. However, there can be no assurance that the
Company will continue to obtain additional financial resources or
that it will be able to achieve positive cash flows.
Financial market
conditions for junior exploration companies have resulted in very
depressed equity prices. A further and continued deterioration in
market conditions will increase the cost of obtaining capital and
significantly limit the availability of funds to the Company in the
future. Accordingly, management is actively monitoring the effects
of the current economic and financing conditions on the
Company's business and reviewing discretionary spending,
capital projects and operating expenditures, and implementing cash
and cash management strategies.
Capital
Resources
The
Company had no material commitments for capital expenditures as at
July 31, 2020.
The
Company has no lines of credit or other sources of financing which
have been arranged but are as of yet, unused.
At July
31, 2020, there were no externally imposed capital requirements to
which the Company is subject and with which the Company has not
complied.
Requirement
of Financing
The
Company is in the process of assessing mineral property interests
held by third parties for potential acquisition. The Company's
continuing operations are entirely dependent upon the existence of
economically recoverable mineral reserves, the ability of the
Company to obtain the necessary financing to complete the
exploration and development of these projects, obtaining the
necessary permits to mine, on future profitable production of any
mine and the proceeds from the disposition of the mineral property
interests.
Additional debt or
equity financing will be required to fund additional exploration or
development programs. The Company has a reasonable expectation that
additional funds will be available when necessary to meet ongoing
exploration and development costs. However, there can be no
assurance that the Company will continue to obtain additional
financial resources and/or achieve profitability or positive cash
flows, which raises substantial doubt on the ability of the Company
to continue as a growing concern. If the Company is unable to
obtain adequate additional financing, the Company will be required
to re-evaluate its planned expenditures until additional funds can
be raised through financing activities.
The
Company has no "Purchase Obligations" defined as any agreement to
purchase goods or services that is enforceable and legally binding
on the Company that specifies all significant terms, including
fixed or minimum quantities to be purchased; fixed, minimum or
variable price provisions; and the approximate timing of the
transaction.
C.
RESEARCH
EXPENDITURES
Quartz
Mountain does not carry out any research or development activities.
Please refer to
Item
5A
and
Item
5B
above for a
discussion of the expenditures that the Company has incurred in
connection with its business activities.
18
D.
TREND
INFORMATION
The
Company does not currently hold any properties.
E.
OFF
– BALANCE SHEET ARRANGEMENTS
Quartz
Mountain has no off-balance sheet arrangements.
F.
TABULAR
DISCLOSURE OF CONTRACTUAL OBLIGATIONS
The
following obligations existed at July 31, 2020:
Payments due by
period
Total
Less than 1
year
1-5
years
After 5
years
Amounts payable and
other liabilities
$
4,176
$
4,176
$
–
$
–
Due to a related
party
75,832
75,832
–
Total
$
80,008
$
80,008
$
–
$
–
The
Company has no material capital lease or operating lease
obligations. The Company has no "Purchase Obligations", defined as
any agreement to purchase goods or services that is enforceable and
legally binding on the Company that specifies all significant
terms, including: fixed or minimum quantities to be purchased;
fixed, minimum or variable price provisions; and the approximate
timing of the transaction.
G.
SAFE
HARBOR
The
safe harbor provided in Section 27A of the Securities Act and
Section 21E of the Exchange Act applies to forward-looking
information provided pursuant to
Item 5E
and
Item
5F
above.
ITEM 6
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
A.
DIRECTORS
AND SENIOR MANAGEMENT Leonie Tomlinson (1964) –
Director
Leonie
Tomlinson is a professional director and experienced business
executive who over the course of her career has advised numerous
private and public companies on investment structuring, corporate
governance, financial reporting, HR matters, and exit
strategy.
Ms.
Tomlinson is, or was within the past five years, a director of the
following public companies:
Company
Positions
Held
From
To
Quartz
Mountain Resources Ltd.
Director
December
2017
Present
Matthew
Dickinson (1997) – Director
Matthew
Dickinson is a recent McGill University graduate, where he studied
Management of Information Systems and Computer Science. He is
currently working as a Software Developer for Genesis Advanced
Technology, a development stage industrial hardware company, and is
consulting for Genesis Robotics where he builds software to support
the firms commercialization efforts. Additionally he has background
in early-stage venture financing and product strategy.
Mr.
Dickinson is, or was within the past five years, a director of the
following public companies:
Company
Positions
Held
From
To
Quartz
Mountain Resources Ltd.
Director
February
2019
Present
19
Trevor
Thomas, LLB (1967), Chairman, Chief Executive Officer, Corporate
Secretary
Trevor Thomas has
practiced in the areas of corporate commercial, corporate finance,
securities and mining law since 1995, both in a private practice
environment as well as in in-house positions and is
currently general
counsel for Hunter Dickinson Inc. ("HDI"). Prior to
joining HDI, he served as in- house legal counsel with Placer Dome
Inc. Mr. Thomas is, or was within the past five years, an officer
or director of the following public companies:
Company
Positions
Held
From
To
Amarc
Resources Ltd.
Secretary
February
2008
Present
Curis
Resources Ltd.
Secretary
June
2013
November
2014
Heatherdale
Resources Ltd.
Secretary
June
2013
Present
Mineral
Mountain Resources Ltd.
Director
September
2016
Present
Northcliff
Resources Ltd.
Secretary
June
2011
Present
Northern Dynasty
Minerals Ltd.
Secretary
February
2008
Present
Quadro
Resources Ltd.
Director
July
2017
Present
Quartz
Mountain Resources Ltd.
Secretary
June
2013
Present
Rathdowney
Resources Ltd.
Secretary
March
2011
Present
Taseko
Mines Limited
Secretary
July
2008
Present
Sebastian
Tang, CPA CA (1976) – Chief Financial Officer
Sebastian Tang is
Chartered Professional Accountant (CPA CA) with more than 15 years
of professional experience in accountancy and financial reporting.
He previously held positions with professional services firms Ernst
& Young providing financial auditing services to companies in
Asia and the Americas.
Company
Positions
Held
From
To
Amarc
Resources Ltd.
Chief
Financial Officer
July
2020
Present
Lucky
Minerals Inc.
Chief
Financial Officer
May
2019
March
2020
Global
Hemp Group
Chief
Financial Officer
May
2020
Present
B.
COMPENSATION
During
the Company's financial year ended July 31, 2020, the aggregate
cash compensation paid or payable by the Company to its directors
and senior officers was $19,896.
Trevor
Thomas, Chairman, President, and CEO, and Michael Lee, CFO, are
each "Named Executive Officers" of the Company for the purposes of
the following disclosure.
The
compensation paid to the Named Executive Officers during the
Company's most recently completed financial year is as set out
below:
During
the fiscal year ended July 31, 2020, the above named NEOs did not
serve the Company solely on a full-time basis, and their
compensation from the Company is allocated based on the estimated
amount of time spent providing services to the
Company.
Name and
principal position
Fiscal
year
Salary
($)
Share- based
awards
($)
Option
-based
awards
($)
Pension
value
($)
All other
compensation
($)
Total
compensation
($)
Trevor
Thomas,
2020
4,263
Nil
Nil
Nil
Nil
4,263
CEO
(1)
2019
414
Nil
Nil
Nil
Nil
414
Robert
Dickinson,
2020
Nil
Nil
Nil
Nil
Nil
Nil
CEO
(1)
2019
Nil
Nil
Nil
Nil
Nil
Nil
Michael
Lee,
2020
15,633
Nil
Nil
Nil
Nil
15,633
CFO
[2]
2019
10,561
Nil
Nil
Nil
Nil
10,561
2018
10,578
Nil
Nil
Nil
Nil
12,578
Note
(1) Mr. Thomas replaced Mr. Dickinson as Chairman, President, and
CEO on February 15, 2019 Note (2) Mr. Tang replaced Mr. Lee as CFO
on August 15, 2020
20
Director
Compensation
The
compensation provided to the directors, excluding a director who is
already set out in disclosure for a NEO for the Company's most
recently completed financial year ended July 31, 2020 is as set out
below:
Name
Fees
earned
(1)
($)
Share-
based awards
($)
Option
-based
awards
($)
Non-equity incentive plan compensation
($)
Pensio
n value
($)
All
other compensation
($)
Total
($)
Leonie
Tomlinson
(2)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Matthew
Dickinson
(2)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Trevor
Thomas
(2)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Notes:
(1)
January 2016 and
onward, fees were reduced to $nil.
(2)
These directors are
members of the Audit Committee and Nominating and Governance
Committee.
Pension
and Retirement Benefits
Neither
the Company nor its subsidiary provides any pension, retirement, or
similar benefits.
C.
BOARD
PRACTICES
On
December 15, 2017, Ronald Thiessen resigned as President, CEO and
Director, Robert Dickinson was appointed Quartz Mountain's
Executive Chairman and CEO, and Rene Carrier and Leonie Tomlinson
were appointed Directors of the Company. On February 15, 2019,
Robert Dickinson resigned as Executive Chairman and CEO and Rene
Carrier resigned as director. Trevor Thomas was appointed Chairman,
President, and CEO, and Matthew Dickinson was appointed director.
All directors have a term of office expiring at the next annual
general meeting of the Company's shareholders, which is expected to
be held in early 2020. All officers have a term of office lasting
until their removal or replacement by the Board of
Directors.
Directors
Service Contracts
There
is no written employment contract between the Company and any
director.
There
is no service contract between any director of the Company and
either the Company or its subsidiary, which provides for any
benefits upon termination of employment.
Audit
Committee
Composition of Audit Committee
The
members of the Audit Committee are Trevor Thomas, Matthew
Dickinson, and Leonie Tomlinson (Chair).
Relevant Education and Experience
As a
result of their education and experience, each member of the Audit
has familiarity with, an understanding of, or experience in the
accounting principles used by the Company to prepare its financial
statements, and the ability to assess the general application of
those principles in connection with estimates, accruals and
reserves; reviewing or evaluating financial statements that present
a breadth and level of complexity of accounting issues that are
generally comparable to the breadth and complexity of issues that
can reasonably be expected to be raised by the Company's financial
statements; and an understanding of internal controls and
procedures for financial reporting.
21
Ms.
Tomlinson is an experienced businessperson with corporate finance
experience. See disclosure
under "A.
Directors and Senior Management" above.
Audit
Committee's Charter
The
function of the Audit Committee is to oversee the employment and
compensation of the Company's independent auditor, and other
matters under the authority of the Committee. The Committee also
assists the Board of Directors in carrying out its oversight
responsibilities relating to the Company's financial,
accounting, and reporting processes, the Company's system of
internal accounting and financial controls, the Company's
compliance with related legal and regulatory requirements, and the
fairness of transactions between the Company and related
parties.
The
Audit Committee has a charter that sets out its mandate and
responsibilities, which is contained in Appendix 6 of the Corporate
Governance Policies and Procedures Manual (available for download
from the Company's website under Corporate Governance at
www.quartzmountainresources.com
).
The Audit Committee has the following responsibilities and
authority:
Relationship with Independent Auditor
Subject
to the law of British Columbia as to the role of the Shareholders
in the appointment of independent auditors, the Committee shall
have the sole authority to appoint or replace the independent
auditor.
The
Committee shall be directly responsible for the compensation and
oversight of the work of the independent auditor (including
resolution of disagreements between management and the independent
auditor regarding financial reporting) for the purpose of preparing
or issuing an audit report or related work.
The
independent auditor shall report directly to the
Committee.
The
Committee shall approve in advance all audit and permitted
non-audit services with the independent auditor, including the
terms of the engagements and the fees payable; provided that the
Committee Chairman may approve services to be performed by the
independent auditor between Committee meetings if the amount of the
fee does not exceed $50,000, provided that any such approval shall
be reported to the Committee at the next meeting thereof. The
Committee may delegate to a subcommittee the authority to grant
pre-approvals of audit and permitted non-audit services, provided
that the decision of any such subcommittee shall be presented to
the full Committee at its next scheduled meeting.
At
least annually, the Committee shall review and evaluate the
experience and qualifications of the lead partner and senior
members of the independent auditor team.
At
least annually, the Committee shall obtain and review a report from
the independent auditor regarding:
●
the independent
auditor's internal quality-control procedures;
●
any material issues
raised by the most recent internal quality-control review, or peer
review, of the auditor, or by any inquiry or investigation by
governmental or professional authorities within the preceding five
years respecting one or more independent audits carried out by the
firm;
●
any steps taken to
deal with any such issues; and
●
all relationships
between the independent auditor and the Company.
At
least annually, the Committee shall evaluate the qualifications,
performance, and independence of the independent auditor, including
considering whether the auditor's quality controls are
adequate and the provision of permitted non-audit services is
compatible with maintaining the auditor's
independence.
The
Committee shall ensure the rotation of the lead (or coordinating)
audit partner having primary responsibility for the audit, the
concurring partner responsible for reviewing the audit, and other
audit partners as required by law.
The
Committee shall consider whether, in order to assure continuing
auditor independence, it is appropriate to adopt a policy of
rotating the independent auditing firm on a regular
basis.
The
Committee shall recommend to the Board policies for the
Company's hiring of employees or former employees of the
independent auditor who were engaged on the Company's account
or participated in any capacity in the audit of the
Company.
The
Committee shall oversee the implementation by management of
appropriate information technology systems for the Company,
including as required for proper financial reporting and
compliance.
22
Financial Statement and Disclosure
Review
The
Committee shall review and discuss with management and the
independent auditor the annual audited financial statements,
including disclosures made in management's discussion and
analysis, and recommend to the Board whether the audited financial
statements should be filed with applicable securities regulatory
authorities and included in the Company's annual
reports.
The
Committee shall review and discuss with management (and, to the
extent the Committee deems it necessary or appropriate, the
independent auditor) the Company's quarterly financial
statements, including disclosures made in management's
discussion and analysis, and recommend to the Board whether such
financial statements should be filed with applicable securities
regulatory authorities.
The
Committee shall review and discuss with management and the
independent auditor significant financial reporting issues and
judgments made in connection with the preparation of the
Company's financial statements, including the independent
auditor's assessment of the quality of the Company's
accounting principles, any significant changes in the
Company's selection or application of accounting principles,
any major issues as to the adequacy of the Company's internal
controls over financial reporting, and any special steps adopted in
light of material control deficiencies.
At
least annually and prior to the publication of annual audited
financial statements, the Committee shall review and discuss with
management and the independent auditor a report from the
independent auditor on:
●
all critical
accounting policies and practices used by the Company;
●
all alternative
accounting treatments of financial information that have been
discussed with management since the prior report, ramifications of
the use of such alternative disclosures and treatments, the
treatment preferred by the independent auditor, and an explanation
of why the independent auditor's preferred method was not
adopted; and,
●
other material
written communications between the independent auditor and
management since the prior report, such as any management letter or
schedule of unadjusted differences, the development, selection and
disclosure of critical accounting estimates, and analyses of the
effect of alternative assumptions, estimates or GAAP methods on the
Company's financial statements.
Prior
to their filing or issuance, the Committee shall review the
Company's Annual Information Form, quarterly and annual
earnings press releases, and other financial press releases,
including the use of "pro forma" or
"adjusted" non-GAAP information.
The
Committee shall review and discuss with management the financial
information and earnings guidance provided to analysts and rating
agencies. Such discussion may be specific or it may be in general
regarding the types of information to be disclosed and the types of
presentations to be made.
Conduct of the Annual Audit
The
Committee shall oversee the annual audit, and in the course of such
oversight, the Committee shall have the following responsibilities
and authority:
The
Committee shall meet with the independent auditor prior to the
audit to discuss the planning and conduct of the annual audit, and
shall meet with the independent auditor as may be necessary or
appropriate in connection with the audit.
The
Committee shall ascertain that the independent auditor is
registered and in good standing with the Canadian Public Accounting
Board and that the independent auditor satisfies all applicable
independence standards. The Committee shall obtain from the auditor
a written statement delineating all relationships between the
auditor and the Company as per applicable independence standards,
and review relationships that may impact the objectivity and
independence of the auditor.
The
Committee shall discuss with the independent auditor the matters
required to be discussed by Statement on Auditing Standards No. 61
relating to the conduct of the audit, including:
●
the
adoption of, or changes to, the Company's significant
auditing and accounting principles and practices as suggested by
the independent auditor, internal auditors or
management;
●
the
management letter provided by the independent auditor and the
Company's response to that letter; and
●
any difficulties
encountered in the course of the audit work, including any
restrictions on the scope of activities or access to requested
information, and any significant disagreements with
management.
The
Committee shall make such inquiries to the management and the
independent auditor as the Committee members deem necessary or
appropriate to satisfy themselves regarding the efficacy of the
Company's financial and internal controls and procedures and
the auditing process.
23
Compliance and
Oversight
The
Committee shall meet periodically with management and the
independent auditor in separate executive sessions. The Committee
may also, to the extent it deems necessary or appropriate, meet
with the Company's investment bankers and financial analysts
who follow the Company.
The
Committee shall discuss with management and the independent auditor
the effect of regulatory and accounting initiatives as well as
off-balance sheet structures on the Company's financial
statements.
The
Committee shall discuss with management the Company's major
financial risk exposures and the steps management has taken to
monitor and control such exposures, including the Company's
risk assessment and risk management policies, and regularly review
the top risks identified by management and the policies and
practices adopted by the Company to mitigate those
risks.
If
required, the Committee shall annually review with management and
the independent auditor the disclosure controls and procedures and
confirm that the Company (with CEO and CFO participation) has
evaluated the effectiveness of the design and operation of the
controls within 90 days prior to the date of filing of the AIF. The
Committee also shall review with management and the independent
auditor any deficiencies in the design and operation of internal
controls and significant deficiencies or material weaknesses
therein, and any fraud involving management or other employees who
have a significant role in the Company's internal controls.
As a part of that review, the Committee shall review the process
followed in preparing and verifying the accuracy of the required
CEO and CFO annual certifications.
If
required, the Committee shall annually review management's
internal control report and the independent auditor's
assessment of the internal controls and procedures prior to the
filing of the AIF.
The
Committee shall establish procedures for the receipt, retention and
treatment of complaints received by the Company regarding
accounting, internal accounting controls or auditing matters, and
the confidential, anonymous submission by employees of concerns
regarding questionable accounting or auditing matters.
The
Committee shall discuss with management and the independent auditor
any correspondence with regulators or governmental agencies and any
employee complaints or reports that raise material issues regarding
the Company's financial statements or accounting
policies.
At
least annually, the Committee shall meet with the Company's
legal counsel and discuss any legal matters that may have a
material impact on the financial statements or the Company's
compliance policies.
The
Committee shall oversee the preparation of reports relating to the
Audit Committee as required under applicable laws, regulations, and
stock exchange requirements.
The
Committee shall exercise oversight with respect to anti-fraud
programs and controls.
Related Party Transactions
The
Committee shall review for fairness to the Company proposed
transactions, contracts and other arrangements between the Company
and its subsidiaries and any related party or affiliate, and make
recommendations to the Board whether any such transactions,
contracts and other arrangements should be approved or continued.
The foregoing shall not include any compensation payable pursuant
to any plan, program, contract, or arrangement subject to the
authority of the Company's Compensation
Committee.
As used
herein the term "related party" means any officer or
director of the Company or any subsidiary, or any shareholder
holding a greater than 10% direct or indirect financial or voting
interest in the Company, and the term "affiliate" means
any person, whether acting alone or in concert with others, that
has the power to exercise a controlling influence over the Company
and its subsidiaries. "Related party" includes HDSI.
D.
EMPLOYEES
At
November 20, 2020, the Company had no employees and had contracted
staff on an as-needed basis. The directors of the Company primarily
administer the Company's functions through the employees of HDSI, a
private company with certain directors in common with the Company
(see
Item
7
– "Major Shareholders and Related Party
Transactions
").
24
E.
SHARE
OWNERSHIP
Security
Holdings of Directors and Senior Management
As at
November 20, 2020, the directors and officers of Quartz Mountain
and their respective affiliates, directly and indirectly, own or
control as a group an aggregate of 2,727,273 common shares or
10.22% and 1,527,273 share purchase warrants or 5.72%.
As at
November 20, 2020, the Company's directors and officers
beneficially own the following number of the Company's common
shares:
Name of
Insider
Securities
Beneficially Owned
As a %
of outstanding common
shares
Matthew
Dickinson
2,727,273(Common
Shares)
10.22%
Matthew
Dickinson
1,527,273
(Share purchase
warrants)
5.72%
Sebastian
Tang
Nil
Nil
Trevor
Thomas
500
(Common Shares)
0.00%
Leonie
Tomlinson
Nil
Nil
ITEM
7
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
A.
MAJOR
SHAREHOLDERS
Quartz
Mountain is a publicly held corporation, with its shares held by
residents of Canada, the United States of America and other
countries. To the best of Quartz Mountain's knowledge, person,
corporation, or other entity beneficially owns, directly or
indirectly, or controls more than 5% of the common shares of Quartz
Mountain, the only class of securities with voting rights are
disclosed in the table below. For these purposes, "beneficial
ownership" means the sole or shared power to vote or direct the
voting or to dispose or direct the disposition of any
security.
As of
November 20, 2020, Quartz Mountain had authorized unlimited common
shares without par value, of which 26,677,776 were issued and
outstanding. The following table sets forth certain information
with respect to beneficial ownership of the Company's common stock
as of November 20, 2020, by each shareholder known to be the
beneficial owner of more than 5% of the common stock.
Identity of
Person or Group
Shares
Percentage
Beneficially Owned of Class
Robert A.
Dickinson
10,909,092
40.89.
%
Matthew
Dickinson
2,727,273
10.22
%
Hunter Dickinson
Services Inc.
1,800,000
6.75
%
All of
the common shares have the same voting rights and no major
shareholders of the Company have different voting
rights.
Geographic
Breakdown of Shareholders
As of
November 20, 2020, Quartz Mountain's register of shareholders
indicates that Quartz Mountain's common shares are held as
follows:
Location
Number of
registered shareholders of record
Number of
shares
Percentage of
total
shares
Canada
157
26,234,487
98.34
%
United
States
1,461
431,724
1,62
%
Other
13
11,565
0.04
%
Total
1,631
26,677,776
100
%
Shares
registered in the names of intermediaries, were assumed to be held
by residents of the same country in which the intermediary is
located.
25
Transfer
Agent
The
Company's common shares are recorded on the books of its transfer
agent, Computershare Investor Services Inc., located at 4th Floor,
510 Burrard Street, Vancouver, B.C. V6C 3B9; telephone (604)
661-9400 in registered form. However, the majority of the Company's
common shares are registered in the name of intermediaries such as
brokerage houses and clearinghouses (on behalf of their respective
brokerage clients). Quartz Mountain does not have knowledge or
access to the identities of the beneficial owners of such shares
registered through intermediaries.
Control
To the
best of its knowledge, the Company is not owned or controlled,
directly or indirectly, by any other corporation, by any foreign
government or by any other natural or legal person, severally or
jointly, other than as noted above under Major Shareholders. There
are no arrangements known to Quartz Mountain, which, at a
subsequent date, may result in a change in control of the
Company.
Insider
Reports under the Securities Acts of British Columbia, Alberta and
Ontario
Since
the Company is a reporting issuer under the Securities Acts of
British Columbia, Alberta and Ontario, certain "insiders" of the
Company (including its directors, certain executive officers, and
persons who directly or indirectly beneficially own, control or
direct more than 10% of its common shares) are generally required
to file insider reports of changes in their ownership of Quartz
Mountain's common shares within five days following the trade under
National Instrument 55-104 – Insider Reporting Requirements
and Exemptions, as adopted by the CSA, and the Securities Act
(Ontario). Copies of such reports are available for public
inspection at the offices of the British Columbia Securities
Commission, ninth Floor, 701 West Georgia Street, Vancouver,
British Columbia V7Y 1L2, (604) 899-6500 or at the British Columbia
Securities Commission web site,
www.bcsc.bc.ca.
In British Columbia, all insider reports must be filed
electronically five days following the date of the trade at
www.sedi.ca.
The public is able to access these reports at
www.sedi.ca.
B.
RELATED
PARTY TRANSACTIONS
Except
as disclosed herein, Quartz Mountain has not, since the beginning
of its last fiscal year ended July 31, 2020:
(1)
entered into any
transactions which are material to Quartz Mountain, or a related
party or any transactions unusual in their nature or conditions
involving goods, services or tangible or intangible assets to which
Quartz Mountain or any of its former subsidiaries was a
party;
(2)
entered into any
transactions or loans between the Company and:
(a)
enterprises that
directly or indirectly through one or more intermediaries, control
or are controlled by, or are under common control with, Quartz
Mountain;
(b)
associates of
Quartz Mountain (unconsolidated enterprises in which Quartz
Mountain has significant influence or which has significant
influence over Quartz Mountain) including shareholders beneficially
owning 10% or more of the outstanding shares of Quartz
Mountain;
(c)
individuals owning,
directly or indirectly, an interest in the common shares of Quartz
Mountain that gives them significant influence over Quartz
Mountain, and close members of any such individual's
family;
(d)
key management
personnel (persons having authority in responsibility for planning,
directing and controlling the activities of Quartz Mountain
including directors and senior management and close members of such
individuals' families); or
(e)
enterprises in
which a substantial voting interest is owned, directly or
indirectly, by any person described in (c) or (d) or over which
such a person is able to exercise significant
influence.
26
HDSI
HDI and
its wholly
‐
owned subsidiary HDSI
are private companies established by a group of mining
professionals. HDSI provides contract services for a number of
mineral exploration and development companies, and also to
companies that are outside of the mining and mineral development
space. The Company acquires services from a number of related and
arms
‐
length
contractors, and it is at the Company's discretion that HDSI
provides certain contract services.
The
Company's Chief Executive Officer and Chairman, Chief
Financial Officer, and Corporate Secretary are employees of HDSI
and are contracted to work for the Company under an employee
secondment agreement between the Company and HDSI.
Pursuant to an
agreement dated June 1, 2008, HDSI provides certain cost effective
technical, geological, corporate communications, regulatory
compliance, and administrative and management services to the
Company, on a non
‐
exclusive basis as
needed and as requested by the Company. Because of this
relationship, the Company has ready access to a range of diverse
and specialized expertise on a regular basis, without having to
engage or hire full
‐
time employees or
experts. The Company benefits from the economies of scale created
by HDSI, which itself serves several clients both within and
external to the exploration and mining sector.
The
Company is not obligated to acquire any minimum amount of services
from HDSI. The monetary amount of the services received from HDSI
in a given period of time is a function of annually set and agreed
charge
‐
out
rates for and the time spent by each HDSI employee engaged by the
Company.
HDSI
also incurs third
‐
party costs on behalf
of the Company. Such third party costs include, for example,
directors and officers insurance, travel, conferences, and
communication services. Third
‐
party costs are
billed at cost, without markup.
There
are no ongoing contractual or other commitments resulting from the
Company's transactions with HDSI, other than the payment for
services already rendered and billed. The agreement may be
terminated upon 60 days' notice by either the Company or
HDSI.
During
the fiscal year ended July 31, 2020, the Company had transactions
totaling $104,678 (2019 –
$77,310; 2018
– $114,890) to HDSI for services and reimbursements of third
party disbursements pursuant to this agreement.
In
January 2016, the Company and HDSI reached a settlement agreement
whereby HDSI agreed to forgive the balance due to HDSI in the net
amount of $3,086,089 if the Company completes the
following:
●
makes a cash
payment of $180,207; and
●
issues 1,800,000
shares (pre-forward split basis of 600,000 shares) valued at
$126,000.
The
cash payment of $180,207 was paid during the year ended July 31,
2018 and the shares were issued to HDSI during the year ended July
31, 2020, completing the settlement and resulting in a gain on
settlement of debt of $2,779,882.
United
Mineral Services Inc. ("UMS")
In December 2018, the Company entered into a loan
agreement with United Mineral Services Ltd. (the
"Lender"), a company owned by a former director,
pursuant to which the Lender advanced to the Company a principal
sum of $100,000 with a six-month term, at an interest rate of 10%
per annum calculated monthly and payable quarterly. T
he
principal amount and related interest were repaid during the year
ended July 31, 2020.
C.
INTERESTS
OF EXPERTS AND COUNSEL
Not
applicable.
27
ITEM 8
FINANCIAL INFORMATION
A.
CONSOLIDATED
STATEMENTS AND OTHER FINANCIAL INFORMATION
Quartz
Mountain's audited consolidated annual financial statements as at
and for the year ended July 31, 2020, 2019 and 2018 are attached in
Exhibit 99.1 to this Annual Report.
Legal
Proceedings
The
Company is not, and has not been in the recent past, involved in
any legal or arbitration proceedings, including governmental
proceedings and those relating to bankruptcy, receivership, or
similar proceedings.
Dividend
Policy
The
Company has not paid any dividends on its outstanding common shares
since its incorporation and does not anticipate that it will do so
in the foreseeable future. All funds of the Company are being
retained for administration expenses and mineral property
investigations.
B.
SIGNIFICANT
CHANGES
There
have been no significant changes to the accompanying financial
statements, except as disclosed in this Annual Report on Form
20-F.
ITEM 9
THE OFFER AND LISTING
A.
OFFER
AND LISTING DETAILS Trading Markets
The
following tables set forth for the periods indicated the price
history, rounded to nearest cent, of the Company's common shares on
the TSX-V and on the OTC Grey Market:
TSX-V
OTC
Fiscal year
ended July 31
High
(CDN$)
Low
(CDN$)
High
(US$)
Low
(US$)
2020
0.45
0.05
0.23
0.04
2019
0.27
0.09
0.23
0.08
2018
0.50
0.22
0.40
0.00
2017
0.04
0.13
0.23
0.07
2016
0.13
0.13
0.13
0.13
2015
0.20
0.03
0.23
0.07
28
TSX-V
OTC
Fiscal Quarter
High
(CDN$)
Low
(CDN$)
High
(US$)
Low
(US$)
Q4, 2020
0.45
0.07
0.18
0.04
Q3, 2020
0.07
0.06
0.13
0.13
Q2, 2020
0.07
0.05
0.16
0.13
Q1, 2020
0.09
0.06
0.23
0.16
Q4, 2019
0.12
0.09
0.08
0.08
Q3, 2019
0.11
0.10
0.10
0.07
Q2, 2019
0.17
0.09
0.23
0.10
Q1, 2019
0.27
0.15
0.23
0.23
TSX-V
OTC
Month
High
(CDN$)
Low
(CDN$)
High
(US$)
Low
(US$)
October
2020
0.14
0.14
0.11
0.10
September
2020
0.18
0.13
0.12
0.10
August
2020
0.20
0.16
0.15
0.12
July
2020
0.23
0.16
0.17
0.10
June
2020
0.24
0.15
0.18
0.10
May
2020
0.45
0.07
0.18
0.04
B.
PLAN
OF DISTRIBUTION
Not
applicable.
C.
MARKETS
On
December 30, 2011, the Company acquired a qualifying property and
was relisted on the main board of the TSX Venture Exchange, trading
under the symbol QZM. The Company continues to trade on the OTC
Grey Market under the symbol QZMRF.
On
February 17, 2005, the Company transferred its listing to NEX, a
separate board of TSX-V and the Company's common shares traded on
NEX under the symbol QZM.H.
Prior
to February 17, 2005, the Company's common shares were listed and
traded in Canada on Tier 2 on the TSX-V, under the symbol QZM.V.
The transition to Tier 2 became effective December 23, 2003. Prior
to this, the Company traded on Tier 3 on the TSX-V.
D.
SELLING
SHAREHOLDERS
Not
applicable.
E.
DILUTION
Not
applicable.
29
F.
EXPENSES
OF THE ISSUE
Not
applicable.
ITEM 10
ADDITIONAL INFORMATION
A.
SHARE
CAPITAL
Not
applicable.
B.
MEMORANDUM
AND ARTICLES OF ASSOCIATION Articles of Association
Quartz
Mountain's original corporate constituting documents comprised of
the Memorandum and Articles of Association were registered with the
British Columbia Registrar of Companies under Corporation No.
BC0253743. The Company's Memorandum and Articles have
subsequently been replaced by a Notice of Articles and Articles
under the Business Corporations Act (British Columbia)
("BCA"), and the Articles were last amended by
shareholder resolution at the Company's Annual General
Meeting, held on February 24, 2014. The Company's articles of
incorporation do not contain a description or place any
restrictions on the Company's objects and purposes. For more
information, see the Articles of Amalgamation filed as Exhibit 10.1
to this Form 20-F.
Certain Powers of Directors
The
Company's articles require that a director or senior officer
who holds any office or possesses any property, right or interest
that could result, directly or indirectly, in the creation of a
duty or interest that materially conflicts with that
individual's duty or interest as a director or senior
officer, must disclose the nature and extent of the conflict as
required by the BCA.
The BCA
requires that every director or senior officer who is a party to,
or who is a director or officer of, or has a material interest in,
any person who is a party to, a material contract or transaction or
a proposed material contract or transaction with the Company, must
disclose in writing to the Company or request to have entered in
the minutes of a meeting or a consent resolution of directors, the
nature and extent of his or her interest, and must refrain from
voting in respect of the contract or transaction, unless the
contract or transaction is: (a) one relating primarily to his or
her remuneration as a director of the corporation or an affiliate;
(b) one for indemnity of or insurance for directors as contemplated
under the BCA; or (c) one with an affiliate of the Company.
However, a director who is prohibited by the BCA from voting on a
material contract or proposed material contract may be counted in
determining whether a quorum is present for the purpose of the
resolution, if the director disclosed his or her interest in
accordance with the BCA and the contract or transaction was
reasonable and fair to the corporation at the time it was
approved.
The
Company's Articles provide that the Board will from time to time
determine the remuneration to be paid to the directors. The Company
must reimburse each director for the reasonable expenses that he or
she may incur in and about the business of the Company. The Board
may also, by resolution, award special remuneration to any director
for undertaking any professional or other services on the Company's
behalf, outside than the ordinary duties of a director of the
Company.
The
Company's Articles provide that the directors may: (a) borrow money
in the manner and amount, on the security, from the sources and on
the terms and conditions that they consider appropriate; (b) issue
bonds, debentures and other debt obligations either outright or as
security for any liability or obligation of the Company or any
other person and at such discounts or premiums and on such other
terms as the directors consider appropriate; (c) guarantee the
repayment of money by any other person or the performance of any
obligation of any other person; and (d) mortgage, charge, whether
by way of specific or floating charge, grant a security interest
in, or give other security on, the whole or any part of the present
and future assets and undertaking of the Company.
The
directors may, by resolution, amend or repeal any articles that
regulate the business or affairs of the Company. The BCA requires
the directors to submit any such amendment or repeal to the
Company's shareholders at the next meeting of shareholders, and the
shareholders may confirm, reject, or amend the amendment or
repeal.
The
Board does not have a mandatory retirement policy for directors
based solely on age. The Company has a practice of conducting
annual Board, Committee, and individual director evaluations,
pursuant to which each director's performance is evaluated
annually. There is no minimum share ownership requirement for
director's qualification.
30
Authorized
Share Capital
The
Company's authorized share capital consists of an unlimited number
of common shares without par value, and an unlimited number of
preferred shares without par value.
All
outstanding common shares of the Company are fully paid and
non-assessable. The holders of the common shares are entitled to
one vote per share at meetings of shareholders and to receive
dividends if, as, and when declared by the directors of the
Company. In the event of voluntary or involuntary liquidation,
dissolution or winding-up of the Company, after payment of all
outstanding debts, the remaining assets of the Company available
for distribution would be distributed ratably to the holders of the
common shares. Holders of the common shares of the Company have no
pre- emptive, redemption, exchange, or conversion
rights.
The
preferred shares may be issued in series on such terms as
determined by the Company's directors in accordance with the class
rights and restrictions. The special rights and restrictions
attaching to the preferred shares are set forth in Part 26 of the
Articles, and provide the directors with wide latitude to create a
series of preferred shares which may be convertible into common
shares, and have attached to them rights that rank ahead of common
shares in respect of entitlement to dividends. The directors may,
by resolution, create, define, and attach special rights and
restrictions to the shares of each series, subject to the special
rights and restrictions attached to the preferred
shares.
Except
as described above, the Company may not create any class or series
of shares or make any modification to the provisions attaching to
the Company's shares without the affirmative vote of a majority of
the votes cast by the holders of the common shares.
Majority
Voting Policy
Under
the Company's Corporate Governance Manual, in an uncontested
director election, if the votes "for" the election of a
director nominee at a meeting of shareholders are fewer than the
number voted "withhold", the nominee is expected to
submit his or her resignation promptly after the meeting for the
consideration of the Nominating and Governance Committee. The
Nominating and Governance Committee will make a recommendation to
the Board of Directors after reviewing the matter, and the Board of
Directors will then decide whether to accept or reject the
resignation. The Board's decision to accept or reject the
resignation will be disclosed to shareholders. The nominee will not
participate in any Nominating and Governance Committee
deliberations whether to accept or reject the
resignation.
Meetings
of Shareholders
The BCA
requires the Company to call an annual shareholders' meeting not
later than 15 months after holding the last preceding annual
meeting and permits the Company to call a special shareholders'
meeting at any time. In addition, in accordance with the BCA, the
holders of not less than 5% of the Company's shares carrying the
right to vote at a meeting sought to be held may requisition the
directors to call a special shareholders' meeting for the purposes
stated in the requisition. The Company is required to mail a notice
of meeting and management information circular to registered
shareholders not less than 21 days and not more than 2 months prior
to the date of any annual or special shareholders' meeting. These
materials are also filed with Canadian securities regulatory
authorities and furnished to the SEC. The Company's articles
provide that a quorum of two shareholders in person or represented
by proxy holding or representing by proxy at least 10% of the
Company's issued shares carrying the right to vote at the meeting
is required to transact business at a shareholders' meeting. In
addition to shareholders and their duly appointed proxies and
corporate representatives, the Company's directors, president,
secretary, lawyers, auditors, and invitees of the directors or
chairperson, are entitled to be admitted to the Company's annual
and special shareholders' meetings; provided that any such person
is not to be counted in the quorum and is not entitled to vote at
the meeting unless that person is a shareholder or proxy holder
entitled to vote at the meeting.
Disclosure
of Share Ownership
The
Securities Act (British Columbia) currently provides that the
directors and certain officers of an issuer and its subsidiaries
and any person or company that beneficially owns, directly or
indirectly, voting securities of an issuer or that exercises
control or direction over voting securities of an issuer or a
combination of both, carrying more than 10% of the voting rights
attached to all the issuer's outstanding voting securities (a
"significant shareholder"), as well as the directors and officers
of any significant shareholder, (each an "insider") must, within 10
days of becoming an insider, file a report in the required form
effective the date on which the person became an insider,
disclosing any direct or indirect beneficial ownership of, or
control or direction over, securities of the reporting issuer. The
Securities Act (British Columbia) also provides for the filing of a
report by an insider of a reporting
issuer who acquires
or transfers securities of the issuer or who enters into,
materially amends or terminates an arrangement the effect of which
is to alter the insider's economic interest in a security of the
issuer or the insider's economic exposure to the issuer. These
reports must be filed within five days after the reportable event.
The Securities Act (British Columbia) also requires these reports
to be filed by reporting insiders within five days after the
applicable event, though are only required by the Chief Executive
Officer, Chief Financial Officer, Chief Operating Officer,
directors, any person or company responsible for a principal
business unit and significant shareholders of the
Company.
31
The
Securities Act (British Columbia) also provides that a person or
company that acquires (whether or not by way of a take-over bid,
offer to acquire or subscription from treasury) beneficial
ownership of voting or equity securities or securities convertible
into voting or equity securities of a reporting issuer that,
together with previously held securities brings the total holdings
of such holder to 10% or more of the outstanding securities of that
class, must (a) issue and file forthwith a news release containing
certain prescribed information and (b) file a report within two
business days containing the same information set out in the news
release. The acquiring person or company must also issue a news
release and file a report each time it acquires, in the aggregate,
an additional 2% or more of the outstanding securities of the same
class and every time there is a change to any material fact in the
news release and report previously issued and filed.
The
rules in the United States governing the ownership threshold above
which shareholder ownership must be disclosed are more stringent
than those discussed above. Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), imposes
reporting requirements on persons who acquire beneficial ownership
(as such term is defined in Rule 13d-3 under the Exchange Act) of
more than 5% of a class of an equity security registered under
Section 12 of the Exchange Act. In general, such persons must file,
within ten days after such acquisition, a report of beneficial
ownership with the SEC containing the information prescribed by the
regulations under Section 13(d) of the Exchange Act and promptly
file an amendment to such report to disclose any material change to
the information reported, including any acquisition or disposition
of 1% or more of the outstanding securities of the registered
class. Certain institutional investors that acquire shares in the
ordinary course of business and not with the purpose or with the
effect of changing or influencing the control of the issuer are
subject to lesser disclosure obligations.
C.
MATERIAL
CONTRACTS
Quartz
Mountain's material contracts as of November 20, 2020,
are:
●
Corporate Services
Agreement with HDSI, dated for reference July 2, 2010.
See Item
7B
;
●
HDSI debt
settlement agreement. See ITEM 19 EXHIBIT
D.
EXCHANGE
CONTROLS
Quartz
Mountain is incorporated pursuant to the laws of the Province of
British Columbia, Canada. There is no law or governmental decree or
regulation in Canada that restricts the export or import of
capital, or affects the remittance of dividends, interest, or other
payments to a non-resident holder of common shares, other than
withholding tax requirements. Any such remittances to United States
residents are generally subject to withholding tax, however no such
remittances are likely in the foreseeable future. See
"Taxation",
below.
There
is no limitation imposed by Canadian law or by the charter or other
constituent documents of the Company on the right of a non-resident
to hold or vote Common Shares of the Company, except that the
Investment Canada Act may require review and approval by the
Minister of Industry (Canada) of certain acquisitions of "control"
of the Company by a "non-Canadian". The threshold for acquisitions
of "control" is generally defined as being one-third or more of the
voting shares of the Company. "Non-Canadian" generally means an
individual who is not a Canadian citizen or a permanent resident of
Canada, or a corporation, partnership, trust or joint venture that
is ultimately controlled by non-Canadians.
E.
TAXATION
Certain Canadian Federal Income
Tax Information for United States Residents
The
following summarizes the principal Canadian federal income tax
considerations generally applicable to the holding and disposition
of common shares of the Company by a holder (a) who, for the
purposes of the Income Tax Act (Canada) the ("Tax Act"), is not
resident in Canada or deemed to be resident in Canada, deals at
arm's length and is not affiliated with the Company, holds the
common shares as capital property and does not use or hold the
common shares in the course of carrying on,
or otherwise in
connection with, a business in Canada, and (b) who, for the
purposes of the Canada- United States Income Tax Convention (the
"Treaty"), is a resident of the United States, has never been a
resident of Canada, has not held or used (and does not hold or use)
common shares in connection with a permanent establishment or fixed
base in Canada, and who qualifies for the full benefits of the
Treaty. The Canada Revenue Agency has recently introduced special
forms to be used in order to substantiate eligibility for Treaty
benefits, and affected holders should consult with their own
advisors with respect to these forms and all relevant compliance
matters.
Holders
who meet all such criteria in clauses (a) and (b) above are
referred to herein as a "U.S. Holder" or "U.S. Holders", and this
summary only addresses such U.S. Holders. The summary does not deal
with special situations, such as particular circumstances of
traders or dealers, limited liability companies, tax-exempt
entities, insurers, financial institutions (including those to
which the mark- to-market provisions of the Tax Act apply), or
entities considered fiscally transparent under applicable law, or
otherwise.
32
This
summary is based on the current provisions of the Tax Act and the
regulations thereunder, all proposed amendments to the Tax Act and
regulations publicly announced by the Minister of Finance (Canada)
to the date hereof, the current provisions of the Treaty and our
understanding of the current administrative practices of the Canada
Revenue Agency. It has been assumed that all currently proposed
amendments to the Tax Act and regulations will be enacted as
proposed and that there will be no other relevant change in any
governing law, the Treaty or administrative policy, although no
assurance can be given in these respects. This summary does not
take into account provincial, U.S., or other foreign income tax
considerations, which may differ significantly from those discussed
herein.
This
summary is not exhaustive of all possible Canadian income tax
consequences. It is not intended as legal or tax advice to any
particular U.S. Holder and should not be so construed. The tax
consequences to a U.S. Holder will depend on that U.S. Holder's
particular circumstances. Accordingly, all U.S. Holders or
prospective U.S. Holders should consult their own tax advisors with
respect to the tax consequences applicable to them having regard to
their own particular circumstances. The discussion below is
qualified accordingly.
Dividends
Dividends paid or
deemed to be paid or credited by the Company to a U.S. Holder are
subject to Canadian withholding tax. Under the Treaty, the rate of
withholding tax on dividends paid to a U.S. Holder is generally
limited to 15% of the gross dividend (or 5% in the case of a U.S.
holder that is a corporate shareholder owning at least 10% of the
Company's voting shares), provided the U.S. Holder can establish
entitlement to the benefits of the Treaty.
Disposition
A U.S.
Holder is generally not subject to tax under the Tax Act in respect
of a capital gain realized on the disposition of a common share in
the open market, unless the share is "taxable Canadian property" to
the holder thereof and the U.S. Holder is not entitled to relief
under the Treaty.
Provided that the
Company's common shares are listed on a "designated stock exchange"
for purposes of the Tax Act (which currently includes the TSX
Venture) at the time of disposition, a common share will generally
not constitute taxable Canadian property to a U.S. Holder unless,
at any time during the 60 month period ending at the time of
disposition, (i) the U.S. Holder or persons with whom the U.S.
Holder did not deal at arm's length (or the U.S. Holder together
with such persons) owned 25% or more of the issued shares of any
class or series of the Company AND (ii) more than 50% of the fair
market value of the share was derived directly or indirectly from
certain types of assets, including real or immoveable property
situated in Canada, Canadian resource properties or timber resource
properties, and options, interests or rights in respect of any of
the foregoing. Common shares may also be deemed taxable Canadian
property under the Tax Act in certain specific circumstances. A
U.S. Holder holding Common shares as taxable Canadian property
should consult with the U.S. Holder's own tax advisors in advance
of any disposition of Common shares or deemed disposition under the
Tax Act in order to determine whether any relief from tax under the
Tax Act may be available by virtue of the Treaty, and any related
compliance procedures.
United
States Federal Income Tax Consequences
The
Company believes it is likely a "passive foreign investment
company" which may have adverse
U.S.
federal income tax consequences for U.S. shareholders.
U.S.
shareholders should be aware that the Company believes it was
classified as a passive foreign investment company ("PFIC") during
the tax year ended July 31, 2020, and may be a PFIC in future tax
years. If the Company is a PFIC for any year during a U.S.
shareholder's holding period, then such
U.S.
shareholder generally will be required to treat any gain realized
upon a disposition of common shares, or any so-called "excess
distribution" received on its common shares, as ordinary income,
and
to pay an interest
charge on a portion of such gain or distributions, unless the
shareholder makes a timely and effective "qualified electing fund"
election ("QEF Election") or a "mark-to-market" election with
respect to the common shares. A U.S. shareholder who makes a QEF
Election generally must report on a current basis its share of the
Company's net capital gain and ordinary earnings for any year in
which the Company is a PFIC, whether or not the Company distributes
any amounts to its shareholders. However, U.S. shareholders should
be aware that there can be no assurance that the Company will
satisfy record keeping requirements that apply to a qualified
electing fund, or that the Company will supply U.S. shareholders
with information that such U.S. shareholders require to report
under the QEF Election rules, in the event that the Company is a
PFIC and a U.S. shareholder wishes to make a QEF Election. Thus,
U.S. shareholders may not be able to make a QEF Election with
respect to their common shares. A U.S. shareholder who makes the
mark-to-market election generally must include as ordinary income
each year the excess of the fair market value of the common shares
over the taxpayer's basis therein. This paragraph is qualified in
its entirety by the discussion below under the heading "Certain
United States Federal Income Tax Considerations." Each U.S.
shareholder should consult its own tax advisor regarding the PFIC
rules and the U.S. federal income tax consequences of the
acquisition, ownership, and disposition of common
shares.
Certain
United States Federal Income Tax Considerations
The
following is a general summary of certain material U.S. federal
income tax considerations applicable to a U.S. Holder (as defined
below) arising from and relating to the acquisition, ownership, and
disposition of common shares.
This
summary is for general information purposes only and does not
purport to be a complete analysis or listing of all potential U.S.
federal income tax considerations that may apply to a U.S. Holder
arising from and relating to the acquisition, ownership, and
disposition of common shares. In addition, this summary does not
take into account the individual facts and circumstances of any
particular U.S. Holder that may affect the U.S. federal income tax
consequences to such U.S. Holder, including specific tax
consequences to a U.S. Holder under an applicable tax treaty.
Accordingly, this summary is not intended to be, and should not be
construed as, legal or U.S. federal income tax advice with respect
to any U.S. Holder. This summary does not address the U.S. federal
alternative minimum,
U.S. federal estate
and gift, U.S. state and local, and foreign tax consequences to
U.S. Holders of the acquisition, ownership, and disposition of
common shares. Each prospective U.S. Holder should consult its own
tax advisor regarding the U.S. federal, U.S. federal alternative
minimum, U.S. federal estate and gift, U.S. state and local and
foreign tax consequences relating to the acquisition, ownership,
and disposition of common shares.
33
No
legal opinion from U.S. legal counsel or ruling from the Internal
Revenue Service (the "IRS") has been requested, or will be
obtained, regarding the U.S. federal income tax consequences of the
acquisition, ownership, and disposition of common shares. This
summary is not binding on the IRS, and the IRS is not precluded
from taking a position that is different from, and contrary to, the
positions taken in this summary. In addition, because the
authorities on which this summary is based are subject to various
interpretations, the IRS and the U.S. courts could disagree with
one or more of the conclusions described in this
summary.
Scope of this Summary
Authorities
This
summary is based on the Internal Revenue Code of 1986, as amended
(the "Code"), Treasury Regulations (whether final, temporary, or
proposed), published rulings of the IRS, published administrative
positions of the IRS, the Convention Between Canada and the United
States of America with Respect to Taxes on Income and on Capital,
signed September 26, 1980, as amended (the "Canada-U.S. Tax
Convention"), and U.S. court decisions that are applicable and, in
each case, as in effect and available, as of the date of this
document. Any of the authorities on which this summary is based
could be changed in a material and adverse manner at any time, and
any such change could be applied on a retroactive or prospective
basis, which could affect the U.S. federal income tax
considerations described in this summary. This summary does not
discuss the potential effects, whether adverse or beneficial, of
any proposed legislation that, if enacted, could be applied on a
retroactive or prospective basis.
U.S. Holders
For
purposes of this summary, the term "U.S. Holder" means a beneficial
owner of common shares that is for U.S. federal income tax
purposes:
●
an individual who
is a citizen or resident of the U.S.;
●
a corporation (or
other entity taxable as a corporation for U.S. federal income tax
purposes) organized under the laws of the U.S., any state thereof
or the District of Columbia;
●
an estate whose
income is subject to U.S. federal income taxation regardless of its
source; or
●
a trust that (1) is
subject to the primary supervision of a court within the U.S. and
the control of one or more U.S. persons for all substantial
decisions or (2) has a valid election in effect under applicable
Treasury Regulations to be treated as a U.S. person.
Non-U.S. Holders
For
purposes of this summary, a "non-U.S. Holder" is a beneficial owner
of common shares that is not a U.S. Holder. This summary does not
address the U.S. federal income tax consequences to non-U.S.
Holders arising from and relating to the acquisition, ownership,
and disposition of common shares. Accordingly, a non-U.S. Holder
should consult its own tax advisor regarding the U.S. federal, U.S.
federal alternative minimum, U.S. federal estate and gift, U.S.
state and local, and foreign tax consequences (including the
potential application of and operation of any income tax treaties)
relating to the acquisition, ownership, and disposition of common
shares.
U.S. Holders Subject to Special U.S. Federal Income Tax Rules Not
Addressed
This
summary does not address the U.S. federal income tax considerations
applicable to U.S. Holders that are subject to special provisions
under the Code, including, but not limited to, the following:
(a)
U.S.
Holders that are tax-exempt organizations, qualified retirement
plans, individual retirement accounts, or other tax-deferred
accounts; (b) U.S. Holders that are financial institutions,
underwriters, insurance companies, real estate investment trusts,
or regulated investment companies; (c) U.S. Holders that are
broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (d) U.S.
Holders that have a "functional currency" other than the U.S.
Dollar; (e) U.S. Holders that own common shares as part of a
straddle, hedging transaction, conversion transaction, constructive
sale, or other arrangement involving more than one position; (f)
U.S. Holders that acquired common shares in connection with the
exercise of employee stock options or otherwise as compensation for
services; (g) U.S. Holders that hold common shares other than as a
capital asset within the meaning of Section 1221 of the Code
(generally, property held for investment purposes); or (h) U.S.
Holders that own or have owned (directly, indirectly, or by
attribution) 10% or more of the total combined voting power of the
outstanding shares of the Company. This summary also does not
address the U.S. federal income tax considerations applicable to
U.S. Holders who are: (a) U.S. expatriates or former long-term
residents of the U.S.; (b) persons that have been, are, or will be
a resident or deemed to be a resident in Canada for purposes of the
Income Tax Act (Canada) (the "Tax Act"); (c) persons that use or
hold, will use or hold, or that are or will be deemed to use or
hold common shares in connection with carrying on a business in
Canada; (d) persons whose common shares constitute "taxable
Canadian property" under the Tax Act; or (e) persons that have a
permanent establishment in Canada for the purposes of the
Canada-U.S. Tax Convention. U.S. Holders that are subject to
special provisions under the Code, including, but not limited to,
U.S. Holders described immediately above, should consult their own
tax advisor regarding the U.S. federal, U.S. federal alternative
minimum, U.S. federal estate and gift, U.S. state and local and
foreign tax consequences relating to the acquisition, ownership,
and disposition of common shares.
34
If an
entity or arrangement that is classified as a partnership (or other
"pass-through" entity) for U.S. federal income tax purposes holds
common shares, the U.S. federal income tax consequences to such
entity and the partners (or other owners) of such entity generally
will depend on the activities of the entity and the status of such
partners (or owners). This summary does not address the tax
consequences to any such owner. Partners (or other owners) of
entities or arrangements that are classified as partnerships or as
"pass-through" entities for U.S. federal income tax purposes should
consult their own tax advisors regarding the U.S. federal income
tax consequences arising from and relating to the acquisition,
ownership, and disposition of common shares.
Passive Foreign Investment Company Rules
If the
Company were to constitute a "passive foreign investment company"
under the meaning of Section 1297 of the Code (a "PFIC", as defined
below) for any year during a U.S. Holder's holding period, then
certain potentially adverse rules will affect the U.S. federal
income tax consequences to a U.S. Holder resulting from the
acquisition, ownership and disposition of common shares. The
Company believes that it was classified as a PFIC during the tax
year ended July 31, 2020, and may be a PFIC in future tax years.
The determination of whether any corporation was, or will be, a
PFIC for a tax year depends, in part, on the application of complex
U.S. federal income tax rules, which are subject to differing
interpretations. In addition, whether any corporation will be a
PFIC for any tax year depends on the assets and income of such
corporation over the course of each such tax year and, as a result,
cannot be predicted with certainty as of the date of this document.
Accordingly, there can be no assurance that the IRS will not
challenge any determination made by the Company (or any subsidiary
of the Company) concerning its PFIC status. Each U.S. Holder should
consult its own tax advisor regarding the PFIC status of the
Company and any subsidiary of the Company.
35
In
addition, in any year in which the Company is classified as a PFIC,
such holder would be required to file an annual report with the IRS
containing such information as Treasury Regulations and/or other
IRS guidance may require. U.S. Holders should consult their own tax
advisors regarding the requirements of filing such information
returns under these rules, including the requirement to file an IRS
Form 8621.
PFIC Status of the Company
The
Company generally will be a PFIC if, for a tax year, (a) 75% or
more of the gross income of the Company is passive income (the
"income test") or (b) 50% or more of the value of the Company's
assets either produce passive income or are held for the production
of passive income, based on the quarterly average of the fair
market value of such assets (the "asset test"). "Gross income"
generally includes all sales revenues less the cost of goods sold,
and income from investments and from incidental or outside
operations or sources, and "passive income" generally includes, for
example, dividends, interest, certain rents and royalties, certain
gains from the sale of stock and securities, and certain gains from
commodities transactions.
Active
business gains arising from the sale of commodities generally are
excluded from passive income if substantially all (85% or more) of
a foreign corporation's commodities are stock in trade or
inventory, depreciable property used in a trade or business, or
supplies regularly used or consumed in a trade or business and
certain other requirements are satisfied.
For
purposes of the PFIC income test and asset test described above, if
the Company owns, directly or indirectly, 25% or more of the total
value of the outstanding shares of another corporation, the Company
will be treated as if it (a) held a proportionate share of the
assets of such other corporation and (b) received directly a
proportionate share of the income of such other corporation. In
addition, for purposes of the PFIC income test and asset test
described above, and assuming certain other requirements are met,
"passive income" does not include certain interest, dividends,
rents, or royalties that are received or accrued by the Company
from certain "related persons" (as defined in Section 954(d) (3) of
the Code), to the extent such items are properly allocable to the
income of such related person that is not passive
income.
Under
certain attribution rules, if the Company is a PFIC, U.S. Holders
will generally be deemed to own their proportionate share of the
Company's direct or indirect equity interest in any company that is
also a PFIC (a ''Subsidiary PFIC''), and will be subject to U.S.
federal income tax on their proportionate share of (a) any "excess
distributions," as described below, on the stock of a Subsidiary
PFIC and (b) a disposition or deemed disposition of the stock of a
Subsidiary PFIC by the Company or another Subsidiary PFIC, both as
if such U.S. Holders directly held the shares of such Subsidiary
PFIC. In addition, U.S. Holders may be subject to U.S. federal
income tax on any indirect gain realized on the stock of a
Subsidiary PFIC on the sale or disposition of common shares.
Accordingly, U.S. Holders should be aware that they could be
subject to tax even if no distributions are received and no
redemptions or other dispositions of common shares are
made.
Default PFIC Rules under Section 1291 of the Code
If the
Company is a PFIC for any tax year during which a U.S. Holder owns
common shares, the U.S. federal income tax consequences to such
U.S. Holder of the acquisition, ownership, and disposition of
common shares will depend on whether and when such U.S. Holder
makes an election to treat the Company and each Subsidiary PFIC, if
any, as a "qualified electing fund" or "QEF" under Section 1295 of
the Code (a "QEF Election") or makes a mark-to-market election
under Section 1296 of the Code (a "Mark-to-Market Election"). A
U.S. Holder that does not make either a QEF Election or a Mark-to-
Market Election will be referred to in this summary as a
"Non-Electing U.S. Holder."
A
Non-Electing U.S. Holder will be subject to the rules of Section
1291 of the Code (described below) with respect to (a) any gain
recognized on the sale or other taxable disposition of common
shares and (b) any excess distribution received on the common
shares. A distribution generally will be an "excess distribution"
to the extent that such distribution (together with all other
distributions received in the current tax year) exceeds 125% of the
average distributions received during the three preceding tax years
(or during a U.S. Holder's holding period for the common shares, if
shorter).
Under
Section 1291 of the Code, any gain recognized on the sale or other
taxable disposition of common shares (including an indirect
disposition of the stock of any Subsidiary PFIC), and any "excess
distribution" received on common shares or with respect to the
stock of a Subsidiary PFIC, must be ratably allocated to each day
in a Non-Electing U.S. Holder's holding period for the respective
common shares. The amount of any such gain or excess distribution
allocated to the tax year of disposition or distribution of the
excess distribution and to years before the entity became a PFIC,
if any, would be taxed as ordinary income. The amounts allocated to
any other tax year would be subject to U.S. federal income tax at
the highest tax rate applicable to ordinary income in each such
year, and an interest charge would be imposed on the tax liability
for each such year, calculated as if
such tax liability
had been due in each such year. A Non-Electing U.S. Holder that is
not a corporation must treat any such interest paid as "personal
interest," which is not deductible.
If the
Company is a PFIC for any tax year during which a Non-Electing U.S.
Holder holds common shares, the Company will continue to be treated
as a PFIC with respect to such Non-Electing U.S. Holder, regardless
of whether the Company ceases to be a PFIC in one or more
subsequent tax years. A Non-Electing U.S. Holder may terminate this
deemed PFIC status by electing to recognize gain (which will be
taxed under the rules of Section 1291 of the Code discussed above),
but not loss, as if such common shares were sold on the last day of
the last tax year for which the Company was a PFIC.
36
QEF Election
A U.S.
Holder that makes a timely and effective QEF Election for the first
tax year in which its holding period of its common shares begins
generally will not be subject to the rules of Section 1291 of the
Code discussed above with respect to its common shares. A U.S.
Holder that makes a timely and effective QEF Election will be
subject to U.S. federal income tax on such U.S. Holder's pro rata
share of (a) the net capital gain of the Company, which will be
taxed as long-term capital gain to such U.S. Holder, and (b) the
ordinary earnings of the Company, which will be taxed as ordinary
income to such
U.S.
Holder. Generally, "net capital gain" is the excess of (a) net
long-term capital gain over (b) net short-term capital loss, and
"ordinary earnings" are the excess of (a) "earnings and profits"
over (b) net capital gain. A U.S. Holder that makes a QEF Election
will be subject to U.S. federal income tax on such amounts for each
tax year in which the Company is a PFIC, regardless of whether such
amounts are actually distributed to such U.S. Holder by the
Company. However, for any tax year in which the Company is a PFIC
and has no net income or gain, U.S. Holders that have made a QEF
Election would not have any income inclusions as a result of the
QEF Election. If a U.S. Holder that made a QEF Election has an
income inclusion, such a U.S. Holder may, subject to certain
limitations, elect to defer payment of current U.S. federal income
tax on such amounts, subject to an interest charge. If such U.S.
Holder is not a corporation, any such interest paid will be treated
as "personal interest," which is not deductible.
A U.S.
Holder that makes a timely and effective QEF Election with respect
to the Company generally
(a)
may receive a
tax-free distribution from the Company to the extent that such
distribution represents "earnings and profits" of the Company that
were previously included in income by the U.S. Holder because of
such QEF Election and (b) will adjust such U.S. Holder's tax basis
in the common shares to reflect the amount included in income or
allowed as a tax-free distribution because of such QEF Election. In
addition, a U.S. Holder that makes a QEF Election generally will
recognize capital gain or loss on the sale or other taxable
disposition of common shares.
The
procedure for making a QEF Election, and the U.S. federal income
tax consequences of making a QEF Election, will depend on whether
such QEF Election is timely. A QEF Election will be treated as
"timely" if such QEF Election is made for the first year in the
U.S. Holder's holding period for the common shares in which the
Company was a PFIC. A U.S. Holder may make a timely QEF Election by
filing the appropriate QEF Election documents at the time such U.S.
Holder files a U.S. federal income tax return for such year. If a
U.S. Holder does not make a timely and effective QEF Election for
the first year in the U.S. Holder's holding period for the common
shares, the U.S. Holder may still be able to make a timely and
effective QEF Election in a subsequent year if such U.S. Holder
meets certain requirements and makes a "purging" election to
recognize gain (which will be taxed under the rules of Section 1291
of the Code discussed above) as if such common shares were sold for
their fair market value on the day the QEF Election is effective.
If a U.S. Holder owns PFIC stock indirectly through another PFIC,
separate QEF Elections must be made for the PFIC in which the U.S.
Holder is a direct shareholder and the Subsidiary PFIC for the QEF
rules to apply to both PFICs.
A QEF
Election will apply to the tax year for which such QEF Election is
timely made and to subsequent tax years, unless such QEF Election
is invalidated or terminated or the IRS consents to revocation of
such QEF Election. If a U.S. Holder makes a QEF Election and, in a
subsequent tax year, the Company ceases to be a PFIC, the QEF
Election will remain in effect (although it will not be applicable)
during those tax years in which the Company is not a PFIC.
Accordingly, if the Company becomes a PFIC in another subsequent
tax year, the QEF Election will be effective and the U.S. Holder
will be subject to the QEF rules described above during any
subsequent tax year in which the Company qualifies as a
PFIC.
U.S.
Holders should be aware that there can be no assurances that the
Company will satisfy the record keeping requirements that apply to
a QEF, or that the Company will supply U.S. Holders with
information that such U.S. Holders are required to report under the
QEF rules, in the event that the Company is a PFIC. Thus, U.S.
Holders may not be able to make a QEF Election with respect to
their common shares. Each U.S. Holder should consult its own tax
advisor regarding the availability of, and procedure for making, a
QEF Election.
A U.S.
Holder makes a QEF Election by attaching a completed IRS Form 8621,
including a PFIC Annual Information Statement, to a timely filed
United States federal income tax return. However, if the
Company cannot
provide the required information with regard to the Company or any
of its Subsidiary PFICs, U.S. Holders will not be able to make a
QEF Election for such entity and will continue to be subject to the
rules discussed above that apply to Non-Electing U.S. Holders with
respect to the taxation of gains and excess
distributions.
37
Mark-to-Market Election
A U.S.
Holder may make a Mark-to-Market Election only if the common shares
are marketable stock. The common shares generally will be
"marketable stock" if the common shares are regularly traded on (a)
a national securities exchange that is registered with the
Securities and Exchange Commission,
(b)
the national market
system established pursuant to section 11A of the Securities and
Exchange Act of 1934, or (c) a foreign securities exchange that is
regulated or supervised by a governmental authority of the country
in which the market is located, provided that (i) such foreign
exchange has trading volume, listing, financial disclosure, and
surveillance requirements, and meets other requirements and the
laws of the country in which such foreign exchange is located,
together with the rules of such foreign exchange, ensure that such
requirements are actually enforced and (ii) the rules of such
foreign exchange effectively promote active trading of listed
stocks. If such stock is traded on such a qualified exchange or
other market, such stock generally will be "regularly traded" for
any calendar year during which such stock is traded, other than in
de minimis quantities, on at least 15 days during each calendar
quarter.
A U.S.
Holder that makes a Mark-to-Market Election with respect to its
common shares generally will not be subject to the rules of Section
1291 of the Code discussed above with respect to such common
shares. However, if a U.S. Holder does not make a Mark-to-Market
Election beginning in the first tax year of such U.S. Holder's
holding period for the common shares or such U.S. Holder has not
made a timely QEF Election, the rules of Section 1291 of the Code
discussed above will apply to certain dispositions of, and
distributions on, the common shares.
A U.S.
Holder that makes a Mark-to-Market Election will include in
ordinary income, for each tax year in which the Company is a PFIC,
an amount equal to the excess, if any, of (a) the fair market value
of the common shares, as of the close of such tax year over (b)
such U.S. Holder's tax basis in such common shares. A U.S. Holder
that makes a Mark-to-Market Election will be allowed a deduction in
an amount equal to the excess, if any, of (a) such U.S. Holder's
adjusted tax basis in the common shares, over (b) the fair market
value of such common shares (but only to the extent of the net
amount of previously included income as a result of the
Mark-to-Market Election for prior tax years).
A U.S.
Holder that makes a Mark-to-Market Election generally also will
adjust such U.S. Holder's tax basis in the common shares to reflect
the amount included in gross income or allowed as a deduction
because of such Mark-to-Market Election. In addition, upon a sale
or other taxable disposition of common shares, a U.S. Holder that
makes a Mark-to-Market Election will recognize ordinary income or
ordinary loss (not to exceed the excess, if any, of (a) the amount
included in ordinary income because of such Mark-to-Market Election
for prior tax years over (b) the amount allowed as a deduction
because of such Mark-to-Market Election for prior tax years).
Losses that exceed this limitation are subject to the rules
generally applicable to losses provided in the Code and Treasury
Regulations.
A
Mark-to-Market Election applies to the tax year in which such
Mark-to-Market Election is made and to each subsequent tax year,
unless the common shares cease to be "marketable stock" or the IRS
consents to revocation of such election. Each U.S. Holder should
consult its own tax advisor regarding the availability of, and
procedure for making, a Mark-to-Market Election.
Although a U.S.
Holder may be eligible to make a Mark-to-Market Election with
respect to the common shares, no such election may be made with
respect to the stock of any Subsidiary PFIC that a U.S. Holder is
treated as owning, because such stock is not marketable. Hence, the
Mark-to-Market Election will not be effective to eliminate the
application of the default rules of Section 1291 of the Code
described above with respect to deemed dispositions of Subsidiary
PFIC stock or excess distributions from a Subsidiary
PFIC.
Other PFIC Rules
Under
Section 1291(f) of the Code, the IRS has issued proposed Treasury
Regulations that, subject to certain exceptions, would cause a U.S.
Holder that had not made a timely QEF Election to recognize gain
(but not loss) upon certain transfers of common shares that would
otherwise be tax-deferred (e.g., gifts and exchanges pursuant to
corporate reorganizations). However, the specific U.S. federal
income tax consequences to a U.S. Holder may vary based on the
manner in which common shares are transferred.
Certain
additional adverse rules may apply with respect to a U.S. Holder if
the Company is a PFIC, regardless of whether such U.S. Holder makes
a QEF Election. For example, under Section 1298(b)(6) of the Code,
a U.S. Holder that uses common shares as security for a loan will,
except as may be
provided in
Treasury Regulations, be treated as having made a taxable
disposition of such common shares.
Special
rules also apply to the amount of foreign tax credit that a U.S.
Holder may claim on a distribution from a PFIC. Subject to such
special rules, foreign taxes paid with respect to any distribution
in respect of stock in a PFIC are generally eligible for the
foreign tax credit. The rules relating to distributions by a PFIC
and their eligibility for the foreign tax credit are complicated,
and a U.S. Holder should consult with its own tax advisor regarding
the availability of the foreign tax credit with respect to
distributions by a PFIC.
The
PFIC rules are complex, and each U.S. Holder should consult its own
tax advisor regarding the PFIC rules and how the PFIC rules may
affect the U.S. federal income tax consequences of the acquisition,
ownership, and disposition of common shares.
38
Ownership and Disposition of Common Shares
The
following discussion is subject to the rules described above under
the heading "Passive Foreign Investment Company
Rules."
Distributions on Common Shares
A U.S.
Holder that receives a distribution, including a constructive
distribution, with respect to a common share will be required to
include the amount of such distribution in gross income as a
dividend (without reduction for any Canadian income tax withheld
from such distribution) to the extent of the current or accumulated
"earnings and profits" of the Company, as computed for U.S. federal
income tax purposes. A dividend generally will be taxed to a U.S.
Holder at ordinary income tax rates if the Company is a PFIC. To
the extent that a distribution exceeds the current and accumulated
"earnings and profits" of the Company, such distribution will be
treated first as a tax- free return of capital to the extent of a
U.S. Holder's tax basis in the common shares and thereafter as gain
from the sale or exchange of such common shares. (See "Sale or
Other Taxable Disposition of common shares" below). However, the
Company may not maintain the calculations of earnings and profits
in accordance with U.S. federal income tax principles, and each
U.S. Holder should therefore assume that any distribution by the
Company with respect to the common shares will constitute ordinary
dividend income. Dividends received on common shares generally will
not be eligible for the "dividends received deduction". In
addition, the Company does not anticipate that its distributions
will constitute qualified dividend income eligible for the
preferential tax rates applicable to long-term capital gains. The
dividend rules are complex, and each U.S. Holder should consult its
own tax advisor regarding the application of such
rules.
Sale or Other Taxable Disposition of Common Shares
Upon
the sale or other taxable disposition of common shares, a U.S.
Holder generally will recognize capital gain or loss in an amount
equal to the difference between the U.S. Dollar value of cash
received plus the fair market value of any property received and
such U.S. Holder's tax basis in such common shares sold or
otherwise disposed of. A U.S. Holder's tax basis in common shares
generally will be such holder's U.S. Dollar cost for such common
shares. Gain or loss recognized on such sale or other disposition
generally will be long-term capital gain or loss if, at the time of
the sale or other disposition, the common shares have been held for
more than one year.
Preferential tax
rates currently apply to long-term capital gain of a U.S. Holder
that is an individual, estate, or trust. There are currently no
preferential tax rates for long-term capital gain of a U.S. Holder
that is a corporation. Deductions for capital losses are subject to
significant limitations under the Code.
Additional Tax on Passive Income
For tax
years beginning after December 31, 2012, certain individuals,
estates and trusts whose income exceeds certain thresholds will be
required to pay a 3.8% Medicare surtax on "net investment income"
including, among other things, dividends and net gain from
dispositions of property (other than property held in a trade or
business). U.S. Holders should consult with their own tax advisors
regarding the effect, if any, of this tax on their ownership and
disposition of common shares.
Receipt of Foreign Currency
The
amount of any distribution paid to a U.S. Holder in foreign
currency, or on the sale, exchange or other taxable disposition of
common shares, generally will be equal to the U.S. Dollar value of
such foreign currency based on the exchange rate applicable on the
date of receipt (regardless of whether such foreign currency is
converted into U.S. Dollars at that time). A U.S. Holder will have
a basis in the foreign currency equal to its U.S. Dollar value on
the date of receipt. Any U.S. Holder who converts or otherwise
disposes of the foreign currency after the date of receipt may have
a foreign currency exchange gain or loss that would be treated as
ordinary income or loss, and generally will be U.S.
source income or
loss for foreign tax credit purposes. Each U.S. Holder should
consult its own U.S. tax advisor regarding the U.S. federal income
tax consequences of receiving, owning, and disposing of foreign
currency.
Foreign Tax Credit
Subject
to the PFIC rules discussed above, a U.S. Holder that pays (whether
directly or through withholding) Canadian income tax with respect
to dividends paid on the common shares generally will be entitled,
at the election of such U.S. Holder, to receive either a deduction
or a credit for such Canadian income tax. Generally, a credit will
reduce a U.S. Holder's U.S. federal income tax liability on a
Dollar-for-Dollar basis, whereas a deduction will reduce a U.S.
Holder's income subject to U.S. federal income tax. This election
is made on a year-by-year basis and applies to all foreign taxes
paid (whether directly or through withholding) by a U.S. Holder
during a year.
Complex
limitations apply to the foreign tax credit, including the general
limitation that the credit cannot exceed the proportionate share of
a U.S. Holder's U.S. federal income tax liability that such U.S.
Holder's "foreign source" taxable income bears to such U.S.
Holder's worldwide taxable income. In applying this limitation, a
U.S. Holder's various items of income and deduction must be
classified, under complex rules, as either "foreign source" or
"U.S. source." Generally, dividends paid by a foreign corporation
should be treated as foreign source for this purpose, and gains
recognized on the sale of stock of a foreign corporation by a U.S.
Holder should be treated as U.S. source for this purpose, except as
otherwise provided in an applicable income tax treaty, and if an
election is properly made under the Code. However, the amount of a
distribution with respect to the common shares that is treated as a
"dividend" may be lower for U.S. federal income tax purposes than
it is for Canadian federal income tax purposes, resulting in a
reduced foreign tax credit allowance to a U.S. Holder. In addition,
this limitation is calculated separately with respect to specific
categories of income. The foreign tax credit rules are complex, and
each U.S. Holder should consult its own U.S. tax advisor regarding
the foreign tax credit rules.
39
Backup Withholding and Information Reporting
Under
U.S. federal income tax law and Treasury Regulations, certain
categories of U.S. Holders must file information returns with
respect to their investment in, or involvement in, a foreign
corporation. For example, recently enacted legislation generally
imposes new U.S. return disclosure obligations (and related
penalties) on individuals who are U.S. Holders that hold certain
specified foreign financial assets in excess of $50,000. The
definition of specified foreign financial assets includes not only
financial accounts maintained in foreign financial institutions,
but also, unless held in accounts maintained by a financial
institution, any stock or security issued by a non-U.S. person, any
financial instrument or contract held for investment that has an
issuer or counterparty other than a U.S. person and any interest in
a foreign entity. U.S. Holders may be subject to these reporting
requirements unless their common shares are held in an account at a
domestic financial institution. Penalties for failure to file
certain of these information returns are substantial. U.S. Holders
should consult with their own tax advisors regarding the
requirements of filing information returns, including the
requirement to file an IRS Form 8938.
Payments made
within the U.S. or by a U.S. payor or U.S. middleman, of dividends
on, and proceeds arising from the sale or other taxable disposition
of, common shares will generally be subject to information
reporting and backup withholding tax, at the rate of 28% (and
increasing to 31% for payments made after December 31, 2012), if a
U.S. Holder (a) fails to furnish such U.S. Holder's correct U.S.
taxpayer identification number (generally on Form W-9), (b)
furnishes an incorrect U.S. taxpayer identification number, (c) is
notified by the IRS that such U.S. Holder has previously failed to
properly report items subject to backup withholding tax, or (d)
fails to certify, under penalty of perjury, that such U.S. Holder
has furnished its correct U.S. taxpayer identification number and
that the IRS has not notified such U.S. Holder that it is subject
to backup withholding tax. However, certain exempt persons
generally are excluded from these information reporting and backup
withholding rules. Backup withholding is not an additional tax. Any
amounts withheld under the U.S. backup withholding tax rules will
be allowed as a credit against a U.S. Holder's U.S. federal income
tax liability, if any, or will be refunded, if such U.S. Holder
furnishes required information to the IRS in a timely manner. Each
U.S. Holder should consult its own tax advisor regarding the
information reporting and backup withholding rules.
F.
DIVIDENDS
AND PAYING AGENTS
Not
applicable.
G.
STATEMENT
BY EXPERTS
Not
applicable.
H.
DOCUMENTS
ON DISPLAY
Exhibits attached
to this Form 20-F are also available for viewing on EDGAR at
http://www.sec.gov/,
or at the offices of the Company, 15th Floor - 1040 West Georgia
Street, Vancouver, British Columbia V6E 4H1 or on request of the
Company at 604-684-6365, attention: Investor Relations Department.
Copies of the Company's IFRS financial statements and other
continuous disclosure documents required under the British Columbia
Securities Act are available for viewing on the internet at
www.sedar.com.
I.
SUBSIDIARY
INFORMATION
Not
applicable.
ITEM
11
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
A.
TRANSACTION
RISK AND CURRENCY RISK MANAGEMENT
The
Company 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 treasury policies,
counterparty limits, and controlling and reporting
structures.
B.
EXCHANGE
RATE SENSITIVITY
The
Company incurs substantially all of its expenditures in Canada and
substantially all of its cash is denominated in Canadian dollars.
Consequently, the Company is not subject to material foreign
exchange risk.
C.
INTEREST
RATE RISK AND EQUITY PRICE RISK
The
Company is subject to interest rate risk with respect to its
investments in cash. The Company's policy is to invest cash at
fixed rates of interest and cash reserves are to be maintained in
cash and cash equivalents in order to maintain liquidity, while
achieving a satisfactory return for shareholders. Fluctuations in
interest rates when the cash and cash equivalents mature impact
interest income earned.
40
D.
COMMODITY
PRICE RISK
While
the value of the Company's resource properties, if any, can always
be said to relate to the price of precious metals and the outlook
for same, the Company does not have any resource properties or
operating mines and hence does not have any hedging or other
commodity based operational risks respecting to its business
activities.
ITEM 12
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
Not
applicable.
ITEM 13
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES
Not
applicable.
ITEM 14
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
Not
applicable.
ITEM 15
CONTROLS AND PROCEDURES
A.
DISCLOSURE
CONTROLS AND PROCEDURES
At the
end of the period covered by this annual report on Form 20-F, an
evaluation was carried out with the participation of the Company's
management, including the President and Chief Executive Officer
("CEO") and the Chief Financial Officer ("CFO"), of the
effectiveness of the Company's disclosure controls and procedures
(as defined in Rules 13a – 15(e) and 15d –15(e) under
the Securities Exchange Act of 1934, as amended (the "Exchange
Act")). Based on that evaluation, the President and CEO and the CFO
have concluded that as of the end of the period covered by this
annual report on Form 20-F, the Company's disclosure controls and
procedures were effective in providing reasonable assurance that:
(i) information required to be disclosed by the Company in reports
that it files or submits to the SEC under the Exchange Act was
recorded, processed, summarized and reported within the time
periods specified in applicable rules and forms, and (ii) material
information required to be disclosed in the Company's reports filed
under the Exchange Act was accumulated and communicated to the
Company's management, including the President and CEO and the CFO,
as appropriate, to allow for accurate and timely decisions
regarding required disclosure.
B.
MANAGEMENT'S
ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
The
Company's management, including the President and CEO and CFO, is
responsible for establishing and maintaining adequate internal
control over financial reporting as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act. The Company's internal control
over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation and fair presentation of financial
statements for external purposes in accordance with IFRS. The
Company's internal control over financial reporting includes those
policies and procedures that:
●
pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly reflect the transactions and dispositions of the assets of
the Company;
●
provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with IFRS, and
that receipts and expenditures of the Company are being made only
in accordance with authorizations of management and directors of
the Company; and
●
provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the Company's assets that could
have a material effect on the financial statements.
With
the participation of the President and CEO and CFO, management
conducted an evaluation of the design and operation of the
Company's internal control over financial reporting as of July 31,
2020, based on the criteria set forth in Internal
Control-Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. This
evaluation included review of the documentation of controls,
evaluation of the design effectiveness of controls, testing of the
operating effectiveness of controls and a conclusion on this
evaluation. Based on this evaluation, management concluded in its
report that the Company's internal control over financial reporting
was effective as of July 31, 2020.
This
annual report does not include an attestation report of the
Company's registered public accounting firm regarding internal
control over financial reporting. Management's report was not
subject to attestation by the Company's registered public
accounting firm pursuant to rules that permit the Company to
provide only management's report in this annual
report.
CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING
During
the period covered by this Annual Report on Form 20-F, no changes
occurred in the Company's internal control over financial reporting
that have materially affected, or are reasonably likely to
materially affect, the Company's internal control over financial
reporting.
41
LIMITATIONS
OF CONTROLS AND PROCEDURES
The
Company's management, including its President and CEO and CFO, does
not expect that its disclosure controls and procedures or internal
controls and procedures will prevent all errors and all fraud. A
control system, no matter how well conceived and operated, can
provide only reasonable, not absolute, assurance that the
objectives of the control system are met. Further, the design of a
control system must reflect the fact that there are resource
constraints, and the benefits of controls must be considered
relative to their costs. Because of the inherent limitations in all
control systems, no evaluation of controls can provide absolute
assurance that all control issues and instances of fraud, if any,
within the Company have been detected. These inherent limitations
include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or
mistake. Additionally, controls can be circumvented by the
individual acts of some persons, by collusion of two or more
people, or by management override of the controls. The design of
any system of controls is also based in part upon certain
assumptions about the likelihood of future events, and there can be
no assurance that any design will succeed in achieving its stated
goals under all potential future conditions; over time, controls
may become inadequate because of changes in conditions, or the
degree of compliance with the policies or procedures may
deteriorate. Because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud
may occur and not be detected.
ITEM 16
[RESERVED]
ITEM 16A
AUDIT COMMITTEE FINANCIAL EXPERT
The
members of the Audit Committee are Trevor Thomas, Matthew
Dickinson, and Leonie Tomlinson. The Board of Directors has
determined that Ms. Thomlinson qualifies as a "financial expert"
under the rules of the Securities and Exchange Commission, based on
her education and experience. Ms. Tomlinson is "independent", as
that term is defined in section 803 of the NYSE MKT Company
Guide.
Each
Audit Committee member is able to read and understand fundamental
financial statements.
ITEM 16B
CODE OF ETHICS
The
Company's board of directors has adopted a written Code of Ethics
governing directors, officers, and employees. The Code of Ethics
sets forth written standards that are designed to deter wrongdoing
and to meet the Company's core vision: to become a successful and
innovative mining and mineral exploration corporation.
In
order to achieve the Company's vision the following values are to
be included in all activities:
●
Responsibly explore
for and develop mineral resources;
●
Be respectful of
the environment;
●
Be an industry
leader and participate in industry organizations devoted to
improving the industry;
●
Be a strong and
honest competitor;
●
Be a responsible
corporate citizen and contribute to the community;
●
Deal fairly with
our customers, suppliers and joint venture
participants;
●
Provide a safe and
rewarding work environment; and
●
Deliver value to
shareholders.
The
board of directors monitors compliance with the Code of Ethics by
ensuring that all Company personnel have read and understood the
Code of Ethics, and by charging management with bringing to the
attention of the board of directors any issues that arise with
respect to the Code of Ethics.
A copy
of the Code of Ethics was filed with the Securities and Exchange
Commission as an exhibit to the Company's Annual Report filed on
Form 20-F for the fiscal year ended July 31, 2012 and is available
at
www.sec.gov.
The Company will also provide a copy of the Code of Ethics to any
person without charge, upon request. Requests can be sent by mail
to: 15th Floor, 1040 West Georgia Street, Vancouver, British
Columbia, Canada, V6E 4H8; or submitted by telephone at
604-684-6365, attention: Investor Relations
Department.
During
the most recently completed fiscal year, the Company has neither:
(a) amended its Code of Ethics; nor (b) granted any waiver
(including any implicit waiver) form any provision of its Code of
Ethics.
42
ITEM 16C
PRINCIPAL ACCOUNTANT FEES AND SERVICES
The
following table discloses the aggregate fees billed for each of the
last two fiscal years for professional services rendered by the
Company's audit firm, Davidson & Company LLP for various
services.
Services:
Year
ended
July 31,
2020
July 31,
2019
Audit Fees
(1)
$
18,000
$
15,000
Audit Related Fees
(2)
–
–
Tax Fees
(3)
–
–
All Other Fees
(4)
–
–
Total
$
18,000
$
15,000
Notes:
(1)
"Audit Fees"
include fees necessary to perform the annual audit and quarterly
reviews of the Company's consolidated financial statements. Audit
Fees include fees for review of tax provisions and for accounting
consultations on matters reflected in the financial statements.
Audit Fees also include audit or other attest services required by
legislation or regulation, such as comfort letters, consents,
reviews of securities filings and statutory audits.
(2)
"Audit-Related
Fees" include services that are traditionally performed by the
auditor. These audit-related services include employee benefit
audits, due diligence assistance, accounting consultations on
proposed transactions, internal control reviews and audit or attest
services not required by legislation or regulation.
(3)
"Tax Fees" include
fees billed for professional services rendered by the principal
accountant for tax compliance, tax advice, and tax
planning.
(4)
"All Other Fees"
include fees billed for products and services provided by the
principal accountant, other than the services reported in (1), (2),
or (3) above.
From
time to time, management of the Company recommends to and requests
approval from the Audit Committee for non-audit services to be
provided by the Company's auditors. The Audit Committee routinely
considers such requests at committee meetings, and if acceptable to
a majority of the Audit Committee members, pre-approves such
non-audit services by a resolution authorizing management to engage
the Company's auditors for such non-audit services, with set
maximum dollar amounts for each itemized service. During such
deliberations, the Audit Committee assesses, among other factors,
whether the services requested would be considered "prohibited
services" as contemplated by the SEC, and whether the services
requested and the fees related to such services could impair the
independence of the auditors. No material non-audit services were
provided by the Company's auditors during the year ended July 31,
2020.
ITEM 16D
EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT COMMITTEES
Not
applicable.
ITEM 16E
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
During
the year ended July 31, 2020, the Company did not purchase any of
its issued and outstanding common shares pursuant to any repurchase
program or otherwise.
ITEM 16F
CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT
None.
ITEM 16G
CORPORATE GOVERNANCE
Not
applicable.
43
ITEM
16H
MINE SAFETY DISCLOSURE
Not
applicable.
ITEM 17
FINANCIAL STATEMENTS
Not
applicable. See
Item
1
8
.
ITEM 18
FINANCIAL STATEMENTS
See
Exhibit 99.1.
ITEM 19
EXHIBITS
The
following Exhibits have been filed with the Company's Annual Report
on Form 20-F in previous years:
Exhibit
Number
Description of
Exhibit
Note
1.1
Transition
Application dated October 11, 2005
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.
1.2
Notice
of Articles dated October 11, 2005
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.
1.3
Notice
of Alteration of Articles dated October 11, 2005
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2005, filed on January 10, 2006.
1.4
Notice
of Alteration dated February 17, 2006
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2006, filed on January 29, 2007.
1.5
Notice
of Articles dated February 17, 2006
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2006, filed on January 29, 2007.
1.7
Articles, as
amended the Company's Annual
General Meeting,
held on February 24, 2014.
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2014, filed on October 17, 2014.
4.2
Services Agreement
between HDI and the Company dated July 2, 2010
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2010, filed on October 29, 2010.
6.1
Stock
Option Plan approved by Shareholders on March 15,
2012
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.
6.2
Audit
Committee Charter
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.
10.1
Articles approved
by Shareholders on March 15, 2012
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.
10.2
Articles approved
by Shareholders on February 24, 2014
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2016, filed on October 4, 2016.
11.1
Settlement
agreement between Bearclaw and HDSI dated January 15,
2016
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2016, filed on October 4, 2016.
16B.
Code of
Ethics and Trading Restrictions
Incorporated by
reference from our Annual Report on Form 20-F for the year ended
July 31, 2012, filed on November 30, 2012.
44
The
following exhibits are filed with this Annual Report on Form
20-F:
Exhibit
Number
Description of
Exhibit
12.1
Section 302
Certification of the Chief Executive Officer
12.2
Section 302
Certification of the Chief Financial Officer
13.1
Section 906
Certification of the Chief Executive Officer
13.2
Section 906
Certification of the Chief Financial Officer
99.1
Independent
Auditor's Report, dated November 20, 2020; Statements of
financial position as at July 31, 2020, and July 31,
2019;
Statements of
income (loss) and comprehensive income (loss) for the years ended
July 31, 2020, July 31, 2019, and July 31, 2018;
Statements of cash
flows for the years ended July 31, 2020, July 31, 2019, and July
31, 2018; and
Statements of
changes in shareholders' equity (deficiency) for the years
ended July 31, 2020, July 31, 2019, and July 31,
2018;
Notes to audited
annual financial statements
45
SIGNATURES
The
registrant hereby certifies that it meets all of the requirements
for filing on Form 20-F and that it has duly caused and authorized
the undersigned to sign this Annual Report on its
behalf.
QUARTZ
MOUNTAIN RESOURCES LTD.
/s/ Trevor
Thomas
Trevor
Thomas
President and Chief
Executive Officer
Dated:
November 20, 2020
46