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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; font-family: Times New Roman; font-size: 16px">UNITED
STATES</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 16px">SECURITIES
AND EXCHANGE COMMISSION</font></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: 13px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Washington, D.C.
20549</font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 16px">FORM
20-F</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 style="font-family: Times New Roman">&#x2610;</font>&#xA0;REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES
EXCHANGE ACT OF 1934. OR</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 style="font-family: Times New Roman">&#x2612;</font> 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; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">For the
fiscal year ended <font style="font-weight: bold">December 31,
2019</font></font><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; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">&#x2610;</font>&#xA0;TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the transition period
from&#xA0;to</font><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><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 style="font-family: Times New Roman">&#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; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Commission file
number: <font style="font-weight: bold">000-55985</font></font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 16px">SILVER
ELEPHANT MINING CORP.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></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: 13px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Exact
name of Registrant as specified in its charter)</font></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: 13px; text-indent: 0px">
<font style="text-decoration: underline; 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>
<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="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">Suite 1610 - 409
Granville Street <font style="text-decoration: underline">Vancouver, British Columbia, Canada
V6C 1T2</font></font></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">(Address of
principal executive offices)</font></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">Michael
Doolin</font><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">Suite
1610 - 409 Granville Street Vancouver, British Columbia, Canada V6C
1T2</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; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Telephone: 604-569-3661, Facsimile: 604-569-3617 Email:
info@silverelef.com</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">(Name,
Telephone, E-Mail and/or Facsimile number and Address of Company
Contact Person)</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">Copy of
communications to:</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">James
Guttman Dorsey &amp; Whitney LLP Brookfield Place 161 Bay Street,
Suite 4310 Toronto, Ontario, Canada M5J 2S1</font><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="text-decoration: underline"><font style="font-family: Times New Roman; font-size: 13px">Telephone:
<font style="text-decoration: underline">(416) 367-7370 Facsimile:
(416) 367-7371</font></font></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
registered or to be registered pursuant to Section 12 (b) of the
Act: <font style="font-weight: bold">None</font></font><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.</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="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Common Shares without par value</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">(Title
of Class) Securities for which there is a reporting obligation
pursuant to Section 15(d) of the Act: <font style="font-weight: bold">None</font></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: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate the number
of outstanding shares of each of the issuer&#x2019;s classes of
capital or common stock as of the close of the period covered by
the annual report: <font style="font-weight: bold">121,299,508</font> <font style="font-weight: bold">Common Shares as at December 31,
2019</font></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">Indicate by check
mark if the registrant is a well-known seasoned issuer, as defined
in Rule 405 of the Securities Act. Yes <font style="font-family: Times New Roman">&#x2610;</font> No <font style="font-family: Times New Roman">&#x2612;</font></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: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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 style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Yes
<font style="font-family: Times New Roman">&#x2612;</font> No
<font style="font-family: Times New Roman">&#x2612;</font></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">Indicate by check
mark whether the 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 such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90
days.</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">Yes
<font style="font-family: Times New Roman">&#x2612;</font> No
<font style="font-family: Times New Roman">&#x2610;</font></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">Indicate by check
mark whether the registrant has submitted electronically every
Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (Sec.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 style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Yes
<font style="font-family: Times New Roman">&#x2612;</font> No
<font style="font-family: Times New Roman">&#x2610;</font></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">Indicate by check
mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or an emerging growth
company. See the definition of &#x201C;large accelerated
filer,&#x201D; &#x201C;accelerated filer,&#x201D; and &#x201C;emerging
growth company&#x201D; in Rule 12b-2 of the Exchange
Act.</font></div>
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Large accelerated
filer <font style="font-family: Times New Roman">&#x2610;</font>&#xA0;Accelerated
filer <font style="font-family: Times New Roman">&#x2610;</font>&#xA0;Non-accelerated
filer&#xA0;<font style="font-family: Times New Roman">&#x2612;</font></font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Emerging growth
company <font style="font-family: Times New Roman">&#x2612;</font></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">If an
emerging growth company that prepares its financial statements in
accordance with U.S. GAAP, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. <font style="font-family: Times New Roman">&#x2610;</font></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>
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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: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicate by check
mark which basis of accounting the registrant has used to prepare
the financial statements included in this filing:</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: 180px; margin-right: 46px; text-indent: -168px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
GAAP <font style="font-family: Times New Roman">&#x2610;</font>&#xA0;International
Financial Reporting Standards as issued By the International
Accounting Standards Board <font style="font-family: Times New Roman">&#x2612;</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><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-family: Times New Roman; font-size: 13px">Other
<font style="font-family: Times New Roman">&#x2610;</font></font></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: 82px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If
&#x201C;Other&#x201D; has been checked in response to previous
question, indicate by check mark which financial statement item the
registrant has elected to follow. Item 17 <font style="font-family: Times New Roman">&#x2610;</font> Item 18 <font style="font-family: Times New Roman">&#x2610;</font></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: 124px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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 <font style="font-family: Times New Roman">&#x2610;</font> No
<font style="font-family: Times New Roman">&#x2612;</font></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-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
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<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>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td rowspan="2" style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 240px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TABLE
OF CONTENTS</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Page</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">PART
I</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
1.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">IDENTITY OF
DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
2</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">OFFER
STATISTICS AND EXPECTED TIMETABLE</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
3.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">KEY
INFORMATION</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Selected
Financial Data</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Capitalization
and Indebtedness</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Reasons
for the Offer and Use of Proceeds</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Risk
Factors</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">9<br></font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
4.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">INFORMATION ON THE
COMPANY</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">19<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;History
and Development of the Company</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">19<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Business
Overview</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">26<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Organizational
Structure</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">30<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Property,
Plants and Equipment</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">30<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
4A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;UNRESOLVED
STAFF COMMENTS</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">67<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
5.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">OPERATING AND
FINANCIAL REVIEW AND PROSPECTS</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">67<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Operating
Results</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">67<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Liquidity
and Capital Resources</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">70<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Research
and Development, Patents and Licenses, etc.</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">74<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Trend
Information</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">74<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">E.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Off-Balance
Sheet Arrangements</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">74<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Tabular
Disclosure of Contractual Obligations</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">75<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">G.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Safe
Harbor</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">75<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
6.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">DIRECTORS, SENIOR
MANAGEMENT AND EMPLOYEES</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">75<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Directors
and Senior Management</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">75<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Compensation</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">82<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Board
Practices</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">84<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Employees</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">86<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">E.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Share
Ownership</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">87<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
7.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">88<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Major
Shareholders</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">88<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Related
Party Transactions</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">89<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Interests
of Experts and Counsel</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">89<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
8.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">FINANCIAL
INFORMATION</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">90<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Consolidated
Statements and Other Financial Information</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">90<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Significant
Changes</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">91<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 11px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
9.</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">THE
OFFER AND LISTING</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">91<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Offer
and Listing Details</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">91<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Plan
of Distribution</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">91<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Markets</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">91<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Selling
Shareholders</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">E.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Dilution</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" style="vertical-align: top; width: 68%">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Expenses
of the Issuer</font></div>
</td>
<td style="vertical-align: top; width: 23%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: top; width: 9%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 67%; border-bottom: 2px solid #000000">
<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: center; margin-left: 0px; margin-right: 200px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">i</font></div>
</td>
<td colspan="2" style="vertical-align: top; width: 23%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; 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>
<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>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
10.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ADDITIONAL
INFORMATION</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Share
Capital</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Memorandum
and Articles of Association</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">92<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Material
Contracts</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">95<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Exchange
Controls</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">95<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">E.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Taxation</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">95<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">F.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Dividends
and Paying Agents</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">102<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">G.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Statement
by Experts</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">102<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">H.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Documents
on Display</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">102<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">I.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Subsidiary
Information</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">102<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 10px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
11.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">103<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
12.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<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
SECURITIES OTHER THAN EQUITY SECURITIES</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">104<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A. -
C.</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">104<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;American
Depository Receipts</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">104<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">PART
II</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
13.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">DEFAULTS, DIVIDEND
ARREARAGES AND DELINQUENCIES</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
14.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="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: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
15.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">CONTROLS AND
PROCEDURES</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Disclosure
Controls and Procedures</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Management's
Annual Report on Internal Control Over Financial
Reporting</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Attestation
Report of the Registered Public Accounting Firm</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">105<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;Changes
in Internal Control Over Financial Reporting</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">106<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">[RESERVED]</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">106<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16A.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;AUDIT
COMMITTEE FINANCIAL EXPERT</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">106<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16B.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;CODE
OF ETHICS</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">106<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16C.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;PRINCIPAL
ACCOUNTANT FEES AND SERVICES</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">106<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16D.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">107<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16E.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;PURCHASES
OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">107<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16F.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;CHANGE
IN REGISTRANT&#x2019;S CERTIFYING ACCOUNTANT</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">107<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16G.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;CORPORATE
GOVERNANCE</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">107<br>
</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
16H.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;MINE
SAFETY DISCLOSURE</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">107<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">PART
III</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
17.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">FINANCIAL
STATEMENTS</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">108<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
18.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">FINANCIAL
STATEMENTS</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">108<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 9%">
<div style="text-align: right; margin-left: 0px; margin-right: 9px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ITEM
19.</font></div>
</td>
<td style="vertical-align: top; width: 78%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">EXHIBITS</font></div>
</td>
<td style="vertical-align: top; width: 13%">
<div style="text-align: right"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;108</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 9%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 78%; border-bottom: 2px solid #000000">
<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: center; margin-left: 0px; margin-right: 200px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ii</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; 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>
<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: 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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">INTRODUCTORY
NOTES</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 style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
GENERAL INFORMATION</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">In this
annual report on Form 20-F (the &#x201C;Annual Report&#x201D;), the
terms &#x201C;we&#x201D;, &#x201C;our&#x201D;, &#x201C;us&#x201D;, the
&#x201C;Company&#x201D; refer, unless the context requires otherwise,
to Silver Elephant Mining Corp. and its subsidiaries.</font></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-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PRESENTATION OF FINANCIAL AND OTHER DATA</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="color: #000000; font-family: Times New Roman; font-size: 13px">We
prepare our audited consolidated financial statements in accordance
with International Financial Reporting Standards, or
&#x201C;IFRS&#x201D;, as issued by the International Accounting
Standards Board, or the &#x201C;IASB&#x201D;. The financial
information and related discussion and analysis contained in this
annual report on Form 20-F are presented in United States dollars,
except as otherwise specified. Unless otherwise specified, the
financial information analysis in this annual report on Form 20-F
is based on our consolidated financial statements as of December
31, 2019, 2018 and 2017, included elsewhere in this document.
Percentages and some amounts in this annual report on Form 20-F
have been rounded for ease of presentation. Any discrepancies
between totals and the sums of the amounts listed are due to
rounding.</font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CURRENCY</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">Unless
otherwise indicated, all references to &#x201C;dollars&#x201D; or
&#x201C;$&#x201D; are to Canadian dollars and all references to
&#x201C;US dollars,&#x201D; &#x201C;USD&#x201D; or &#x201C;USD$&#x201D;
are to United States of America dollars.</font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SHARE
CONSOLIDATION AND FORWARD SPLIT</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-style: italic; font-family: Times New Roman; font-size: 13px">
Share Consolidation</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
7, 2016, we completed a consolidation of our issued and outstanding
common shares on the basis of one post consolidation common share,
option and warrant, for 100 pre- consolidation common shares,
options and warrants, as applicable (we refer to this as the
&#x201C;Share Consolidation&#x201D;).</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-style: italic; font-family: Times New Roman; font-size: 13px">
Forward 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 8, 2018, we completed a split of our issued and outstanding
common shares on the basis of ten post-split common shares, options
and warrants for 1 pre-split common share, option and warrant, as
applicable (the &#x201C;Forward Split&#x201D;).</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
share and per share information in this Annual Report have been
retroactively adjusted to reflect the Forward Split and the
cumulative effect of the Share Consolidation and Forward Split, as
applicable, for all periods presented, unless otherwise
indicated.</font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CAUTIONARY
NOTE REGARDING FORWARD-LOOKING 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certain
statements contained in this Annual Report constitute
&#x201C;forward-looking statements&#x201D; within the meaning of
United States securities laws and &#x201C;forward-looking
information&#x201D; within the meaning of Canadian securities laws
and are intended to be covered by the safe harbors provided by such
regulations (we refer to such forward-looking statements and
forward-looking information collectively as &#x201C;forward-looking
statements&#x201D;). Forward-looking statements in this Annual
Report are frequently, but not always, identified by words such as
&#x201C;expects&#x201D;, &#x201C;anticipates&#x201D;,
&#x201C;intends&#x201D;, &#x201C;believes&#x201D;,
&#x201C;estimates&#x201D;, &#x201C;potentially&#x201D; or similar
expressions, or statements that events, conditions or results
&#x201C;will&#x201D;, &#x201C;may&#x201D;, &#x201C;would&#x201D;,
&#x201C;could&#x201D;, &#x201C;should&#x201D; occur or are &#x201C;to
be&#x201D; achieved, and statements related to matters which are not
historical facts. Information concerning management&#x2019;s
expectations regarding our future growth, results of operations,
performance, business prospects and opportunities may also be
deemed to be forward-looking statements, as such information
constitutes predictions based on certain factors, estimates and
assumptions subject to significant business, economic, competitive
and other uncertainties and contingencies, and involve known and
unknown risks which may cause the actual results, performance, or
achievements to be different from future results, performance, or
achievements contained in our forward- looking
statements.</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">Such
forward-looking statements include, but are not limited to,
statements regarding:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">our future
financial and operating performance;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 timing and
amount of estimated future operating and exploration
expenditures;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 permitting,
feasibility, and plans for the development of the Gibellini Project
(which we define later in this Annual Report);</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 development of
the Pulacayo Paca silver-lead- zinc property located in Quijarro
province, Bolivia (the &#x201C;Pulacayo Project) ;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 development of
the Titan Project, l<font style="color: #000000; background-color: #FFFFFF">ocated at Flett and
Angus Townships, 120 kilometres northeast of Sudbury,
Ontario</font>, Canada (the &#x201C;Titan Project&#x201D;)
;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 development of
the Chandgana 600MW Coal-Fired Mine Mouth Power Plant project
planned in Khentii province, Mongolia (the &#x201C;Chandgana
Project&#x201D;) (which we define later in this Annual Report),
including the finalizing of any power purchase
agreement;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 costs and
timing of the development of new deposits;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 costs and
timing of future exploration;</font></div>
</div>
</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>
<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><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">requirements for
additional capital;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 likelihood of
securing project financing;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">estimated future
coal production at the Ulaan Ovoo coal property (the &#x201C;Ulaan
Ovoo Property&#x201D;) and the Chandgana Project;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 impacts of
changes in the legal and regulatory environment in which we
operate;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 timing and
possible outcome of any pending litigation and regulatory
matters;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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
transactions; 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: 49px">
<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">other information
concerning possible or assumed future results of our
operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
forward-looking statements in this Annual Report are based upon our
current business and operating plans, and are subject to certain
risks, uncertainties and assumptions. Many factors could cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements that
may be expressed or implied by our forward-looking statements,
including, among others:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">global outbreaks,
including the coronavirus;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">changes in general
economic and business 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: 49px">
<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">changes in currency
exchange rates and interest rates;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">fluctuations in
mineral prices;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">operational risks
associated with mining and mineral processing, including risks
related to accidents, equipment breakdowns, labor disputes or other
unanticipated difficulties with or interruptions in operations
which may or may not be insured;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">domestic and
foreign laws or regulations, particularly relating to the
environment, mining and processing;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">changes in tax
laws;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">domestic and
international economic and political 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: 49px">
<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 need for
additional financing, and our ability to obtain or maintain
necessary financing;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">changes in business
strategy; 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: 49px">
<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">various other
factors, both referenced and not referenced in this Annual
Report.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
foregoing list is not exhaustive of the factors that may affect any
of our forward-looking statements. Some of the important risks and
uncertainties that could affect forward- looking statements are
described further under the heading &#x201C;<font style="font-style: italic">Risk Factors</font>&#x201D; in this Annual
Report. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described herein. For
the reasons set forth above and elsewhere in this Annual Report, we
caution you not to place undue reliance on forward-looking
statements in this Annual Report.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
forward-looking statements in this Annual Report speak only as to
the date of this Annual Report and are based on our beliefs,
opinions and expectations at the time they are made. Except as
required by law, we undertake no obligation to update or review any
forward-looking statements whether as a result of new information,
future developments or otherwise.</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>
<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><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CAUTIONARY
NOTE TO U.S. INVESTORS CONCERNING RESERVE AND RESOURCE
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
terms &#x201C;mineral reserve&#x201D;, &#x201C;proven mineral
reserve&#x201D; and &#x201C;probable mineral reserve&#x201D; are
Canadian mining terms as defined in accordance with Canadian
<font style="font-style: italic">National Instrument 43- 101
&#x2013; Standards of Disclosure for Mineral Projects</font>
(&#x201C;NI 43-101&#x201D;) and the Canadian Institute of Mining,
Metallurgy and Petroleum (the &#x201C;CIM&#x201D;) - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended. These definitions differ from the
definitions in the United States Securities and Exchange Commission
Industry Guide 7 (&#x201C;SEC Industry Guide 7&#x201D;) under the
<font style="font-style: italic">United States Securities Exchange
Act of 1934</font>, as amended (the &#x201C;Exchange
Act&#x201D;).</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
SEC Industry Guide 7 standards, 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. Pursuant to SEC Industry Guide 7, a mineral reserve may not
be designated as such unless: (i) competent professional engineers
conduct a detailed engineering and economic study, and the
&#x201C;bankable&#x201D; or &#x201C;final&#x201D; feasibility study
demonstrates that a mineral deposit can be mined profitably at a
commercial rate; (ii) a historic three-year average commodity price
is used in any reserve or cash flow analysis used to designate
reserves; and (iii) the company has demonstrated that the mineral
property will receive its governmental permits, and the primary
environmental document has been filed with the appropriate
governmental 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
terms &#x201C;mineral resource&#x201D;, &#x201C;measured mineral
resource&#x201D;, &#x201C;indicated mineral resource&#x201D; and
&#x201C;inferred mineral resource&#x201D; are defined in and required
to be disclosed by NI 43-101; however, these terms are not defined
terms under SEC Industry Guide 7 and have historically not been
permitted to be used in reports and annual reports filed with the
SEC. Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. An &#x201C;Inferred mineral resource&#x201D; has a lower
level of confidence than an &#x201C;indicated mineral
resource&#x201D; and must not be converted to a mineral
&#x201C;reserve&#x201D;. The quantity and grade of reported
&#x201C;Inferred Resources&#x201D; in this estimation are uncertain
in nature and there has been insufficient exploration to define
these &#x201C;Inferred Resources&#x201D; as an &#x201C;Indicated or
Measured&#x201D; Mineral Resource and it is uncertain if further
exploration will result in upgrading them to an &#x201C;Indicated or
Measured&#x201D; Mineral Resource category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare
cases.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Disclosure of
&#x201C;contained ounces&#x201D; in a resource is permitted
disclosure under Canadian regulations; however, under SEC Industry
Guide 7 the United States Securities and Exchange Commission (the
&#x201C;SEC&#x201D;) historically only permitted issuers to report
mineralization that does not constitute &#x201C;reserves&#x201D; by
SEC Industry Guide 7 standards as in place tonnage and grade
without reference to unit measures.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
term &#x201C;mineralized material&#x201D; as used in this Annual
Report, although permissible under SEC Industry Guide 7, does not
indicate &#x201C;reserves&#x201D; by SEC Industry Guide 7 standards.
We cannot be certain that any part of the mineralized material will
ever be confirmed or converted into SEC Industry Guide 7 compliant
&#x201C;reserves&#x201D;. Investors are cautioned not to assume that
all or any part of the mineralized material will ever be confirmed
or converted into reserves or that mineralized material can be
economically or legally extracted.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Accordingly,
information contained in this Annual Report may contain
descriptions of our mineral deposits that may not be comparable to
similar information made public by U.S. companies pursuant to SEC
Industry Guide 7.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The SEC
has adopted amendments to its disclosure rules to modernize the
mineral property disclosure requirements for issuers whose
securities are registered with the SEC. These amendments became
effective February 25, 2019 (the &#x201C;SEC Modernization
Rules&#x201D;) and, following a two-year transition period, the SEC
Modernization Rules will replace the historical property disclosure
requirements for mining registrants that are included in SEC
Industry Guide 7. Following the transition period, as a foreign
private issuer that files its annual report on Form 20-F with the
SEC, the Company is not required to provide disclosure on its
mineral properties under the SEC Modernization Rules and will
continue to provide disclosure under NI 43-101 and the CIM. If the
Company ceases to be a foreign private issuer or loses its
eligibility to file its annual report on Form 20-F, then the
Company will be subject to the SEC Modernization Rules which differ
from the requirements of NI 43-101 and the CIM.</font></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: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">METRIC
CONVERSION TABLE</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="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 41%; border-bottom: 2px solid rgb(0, 0, 0);">
<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">
To Convert Imperial Measurement Units</font></div>
</td>
<td style="vertical-align: top; width: 43%; border-bottom: 2px solid rgb(0, 0, 0);">
<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">To
Metric Measurement Units</font></div>
</td>
<td style="vertical-align: top; width: 16%; border-bottom: 2px solid rgb(0, 0, 0);">
<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">Multiply
by</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Acres</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; 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: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.4047</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Feet</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; 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: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.3048</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Miles</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; 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: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">1.6093</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Tons
(short)</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Tonnes</font></div>
</td>
<td style="vertical-align: top; width: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.9072</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Gallons</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Liters</font></div>
</td>
<td style="vertical-align: top; width: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">3.785</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ounces
(troy)</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; 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: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">31.103</font></div>
</td>
</tr><tr style="background-color: #ccedff">
<td style="vertical-align: top; width: 41%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ounces
(troy) per ton (short)</font></div>
</td>
<td style="vertical-align: top; width: 43%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Grams
per tonne</font></div>
</td>
<td style="vertical-align: top; width: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">34.286</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: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TECHNICAL
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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Annual Report contains information of a technical or scientific
nature respecting the Company's mineral properties (the "Technical
Information"). Technical Information is primarily derived from the
documents referenced herein. All Technical Information which
appears in this Annual Report has been reviewed and approved by
<font style="color: #000000; background-color: #FFFFFF">Danniel
Oosterman, Vice President Exploration of Silver Elephant who is a
&#x201C;Qualified Person&#x201D; as defined by the guidelines in NI
43-101. Silver Elephant</font> operates quality assurance and
quality control of sampling and analytical procedures.</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>
<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: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">GLOSSARY
OF TERMS</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: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ag</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">silver</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Au</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">gold</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Fe</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">iron</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ft</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; 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: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">g/t</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Grams
per tonne</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">lb.</font></div>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">pound
(2,000 lbs. to 1 ton, 2,204.6 lbs. to 1 tonne)</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="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicated Coal
Resource</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">That
part of a Coal Resource for which quantity or quality, densities,
shape, and physical characteristics can be estimated with a level
of confidence sufficient to allow the appropriate application of
technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough for geological and quality continuity to be
reasonably assumed.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Indicated Mineral
Resources</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">That
part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Inferred
Coal</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">Resource</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">That
part of a Coal Resource for which quantity and quality can be
estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and quality
continuity. The estimate is based on limited information and
sampling, gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings, and drill
holes.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #111111; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
Inferred Mineral Resource</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #111111; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
Inferred Mineral Resource is the part of a mineral resource for
which&#xA0;tonnage, grade and mineral content can be estimated with
a low level of confidence. It is inferred from geological evidence
and assumed but not verified geological or grade
continuity.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">m</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">meters</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Measured Mineral
Resource</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">That
part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be
estimated with a high level of confidence. It is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are spaced
closely enough to confirm geological and grade
continuity.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ni
43-101</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Canadian National
Instrument 43-101 Standards of Disclosure for Mineral
Projects.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">oz.</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">troy
ounce (12 oz. to 1 pound)</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Preliminary
Economic Assessment</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>
</td>
<td style="vertical-align: top; width: 73%">
<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
preliminary assessment study (the &#x201C;PEA&#x201D;) which includes
an economic analysis of the potential viability of a material
resource prior to the completion of a prefeasibility study. Based
on the Society for Mining, Metallurgy and Exploration (SME) study
types a PEA (also known as a conceptual or scoping study used to
support a NI 43-101 Technical Report is within +/-35% degree of
accuracy.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Preliminary</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">Feasibility
Study</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">(PFS)</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>
</td>
<td style="vertical-align: top; width: 73%">
<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
comprehensive study of the viability of a project that has advanced
to a stage where the mining method and pit configuration has been
established and an effective method of coal processing has been
determined, and includes a financial analysis based on reasonable
assumptions of technical, engineering, legal, operating, economic,
social, and environmental factors, and the evaluation of other
relevant factors which are sufficient for a Qualified Person (QP),
acting reasonably, to determine if all or part of a Resource can be
classified as a Reserve (CIM Standards). Based on the SME study
types a PFS used to support a NI 43-101 Technical Report is within
+/-25% degree of accuracy.</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<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-family: Times New Roman; font-size: 13px">Qualified
Person</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">Or
QP</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">An
individual who is an engineer or geoscientist with at least five
years of experience in mineral exploration, mine development or
operation, or mineral project assessment, or any combination of
these; has experience relevant to the subject matter of the mineral
project and the technical report; and is a member or licensee in
good standing of a professional association recognized under Nl
43-101 (CIM Standards).</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ti</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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Titanium</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>
</td>
</tr><tr>
<td style="vertical-align: top; width: 27%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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>
</td>
<td style="vertical-align: top; width: 73%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Vanadium</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>
</td>
</tr></table>
</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">
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<div id="hdr">
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="p1">P</a>ART I</font></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; font-family: Times New Roman; font-size: 13px"><a name="i1">I</a>TEM 1.&#xA0;IDENTITY OF DIRECTORS, SENIOR MANAGEMENT
AND ADVISERS</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="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="i2">I</a>TEM 2. OFFER STATISTICS AND EXPECTED
TIMETABLE</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">Not
applicable.</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="i3">I</a>TEM 3. KEY INFORMATION</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#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">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">Selected
Financial Data</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following selected financial and other data summarize our
historical financial information. We derived the selected balance
sheet information as of December 31, 2019 and 2018, and the
selected statement of operations information for the years ended
December 31, 2019 and 2018, from our audited financial statements
as of those dates. The consolidated financial statements were
prepared in accordance with International Financial Reporting
Standards (&#x201C;IFRS&#x201D;) issued by the International
Accounting Standards Board, which differ in certain respects from
the principles we would have followed had our consolidated
financial statements been prepared in accordance with generally
accepted accounting principles in the United States (&#x201C;U.S.
GAAP&#x201D;).</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
information in the following tables should be read in conjunction
with the information appearing under the heading
&#x201C;<font style="font-style: italic">Item 5. Operating and
Financial Review and Prospects</font>&#x201D; and our audited annual
financial statements under the heading &#x201C;<font style="font-style: italic">Item 18. Financial
Statements</font>&#x201D;.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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="text-align: left; text-indent: 0px; margin-right: 0px; padding-bottom: 2px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Statement
of Operations</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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2016</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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">Revenue</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2014;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2014;</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2014;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#x2014;</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; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Net income
(loss)</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;">17,513,854</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;">(18,184,468</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: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;">(18,592,981</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: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;">(2,007,305</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: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">Comprehensive
income (loss)</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;">17,513,854</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;">(18,196,628</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: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;">(18,580,821</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: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;">(2,007,305</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: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">Basic net (loss)
income per share</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;">0.17</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;">(0.23</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: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;">(0.33</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: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;">(0.05</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: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">Diluted net (loss)
income per share</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;">0.17</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;">(0.23</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: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;">(0.33</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: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;">(0.05</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></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="margin-left: 12px;">
<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="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Balance
Sheet Data</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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2016</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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">Total
Asset</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">27,448,088</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">9,264,205</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">18,368,843</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">27,828,109</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;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share
Capital</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">181,129,012</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">173,819,546</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">165,862,805</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">156,529,025</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: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">Number of Shares
(as adjusted to reflect changes in capital)</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;">121,299,508</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;">95,316,127</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;">74,721,790</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;">48,076,530</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;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total
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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,740,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">10,023,943</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">9,681,322</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">11,032,616</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: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">Total
shareholders&#x2019; equity</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">24,708,088</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(759,738</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: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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">8,687,521</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">16,795,493</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="display: table; margin-left: 9px">
<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: 9px">
<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: 9px">
<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">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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
section describes some of the risks and uncertainties faced by us.
An investment in the Company involves a high degree of risk. You
should carefully consider the risks described below and the risks
described elsewhere in this Annual Report when making an investment
decision related to the Company. We believe the risk factors
summarized below are most relevant to our business. These are
factors that, individually or in the aggregate, could cause our
actual results to differ significantly from anticipated or
historical results. The occurrence of any of the risks could harm
our business and cause you to lose all or part of your investment.
However, you should understand that it is not possible to predict
or identify all such factors. The risks and uncertainties described
and discussed below and elsewhere in this Annual Report are not the
only risks and uncertainties that we face. Additional risks and
uncertainties not presently known to us or that we currently deem
immaterial may also impair our business operations. If any of these
risks actually occurs, our business, financial condition and
results of operations would suffer. The risks discussed below also
include forward-looking statements, and our actual results may
differ substantially from those discussed in these forward-looking
statements. See the discussion under the heading
&#x201C;<font style="font-style: italic">Cautionary Note Regarding
Forward-Looking Statements</font>&#x201D; at the beginning of this
Annual Report for more detail.</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">Except
as required by law, we undertake no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events, or otherwise.</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">9</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: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We have a history of net losses and do not anticipate having
positive cash flow in the foreseeable future.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
not received any material revenue or net profit to date.
Exploration and development of mineral properties requires large
amounts of capital and usually results in accounting losses for
many years before profitability is achieved, if ever. We have
incurred losses and negative operating cash flow during our most
recently completed financial year and for the current financial
year to date. We believe that commercial mining activity is
warranted on our Gibellini and Pulacayo Projects. Even if we
undertake future development activity on any of our properties,
there is no certainty that we will produce revenue, operate
profitably or provide a return on investment in the future. The
exploration of our properties depends on our ability to obtain
additional required financing. There is no assurance that we will
be successful in obtaining the required financing, which could
cause us to postpone our exploration plans or result in the loss or
substantial dilution of our interest in our
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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We will need a significant amount of capital to carry out our
proposed business plan. Unless we are able to raise sufficient
funds, we may be forced to discontinue our operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
in the exploration stage and will likely operate at a loss until
our business becomes established. We will require additional
financing in order to fund future operations. Our ability to secure
any required financing in order to commence and sustain our
operations will depend in part upon prevailing capital market
conditions as well as our business success. There can be no
assurance that we will be successful in our efforts to secure any
additional financing on terms satisfactory to our management. If
additional financing is raised by issuing common shares, control
may change, and shareholders may suffer additional dilution. If
adequate funds are not available or they are unavailable on
acceptable terms, we may be required to scale back our business
plan or cease operating.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Our mineral exploration efforts are highly speculative in nature
and may be unsuccessful.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
exploration for and development of minerals involve significant
risks, which even a combination of careful evaluation, experience
and knowledge may not eliminate. Few properties which are explored
are ultimately developed into producing mines. There can be no
guarantee that the estimates of quantities and qualities of
minerals disclosed will be economically recoverable. With all
mining operations there is uncertainty and, therefore, risk
associated with operating parameters and costs resulting from the
scaling up of extraction methods tested in pilot conditions.
Mineral exploration is speculative in nature and there can be no
assurance that any minerals discovered will result in an increase
in our resource base.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
operations are subject to all of the hazards and risks normally
encountered in the exploration, development and production of
minerals. These include unusual and unexpected geological
formations, rock falls, seismic activity, flooding and other
conditions involved in the extraction of material, any of which
could result in damage to, or destruction of, mines and other
producing facilities, damage to life or property, environmental
damage and possible legal liability. Although precautions to
minimize risk will be taken, operations are subject to hazards that
may result in environmental pollution and consequent liability that
could have a material adverse impact on our business, operations
and financial performance.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Substantial
expenditures are required to establish ore reserves through
drilling, to develop metallurgical processes to extract the metal
from the ore and, in the case of new properties, to develop the
mining and processing facilities and infrastructure at any site
chosen for mining. Although substantial benefits may be derived
from the discovery of a major mineralized deposit, 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. The economics of
developing vanadium, silver, coal and other mineral properties is
affected by many factors including the cost of operations,
variations in the grade of ore mined, fluctuations in metal
markets, costs of processing equipment and such other factors such
as government regulations, including regulations relating to
royalties, allowable production, importing and exporting of
minerals and environmental protection. The remoteness and
restrictions on access of properties in which we have an interest
will have an adverse effect on profitability as a result of higher
infrastructure costs. There are also physical risks to the
exploration personnel working in the terrain in which our
properties are located, often in poor climate
conditions.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
long-term commercial success depends on our ability to find,
acquire, develop and commercially produce vanadium, silver, coal
and other minerals. No assurance can be given that we will be able
to locate satisfactory properties for acquisition or participation.
Moreover, if such acquisitions or participations are identified, we
may determine that current markets, terms of acquisition and
participation or pricing conditions make such acquisitions or
participations uneconomic.</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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We have no history of profitably commercially producing vanadium,
silver, coal or other metals from our mineral exploration
properties and there can be no assurance that we will successfully
establish mining operations or profitably produce vanadium, silver,
coal or other base or precious metals.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None of
our properties are currently under development. The future
development of any property found to be economically feasible will
require the construction and operation of mines, processing plants
and related infrastructure. As a result, we are subject to all of
the risks associated with establishing new mining operations and
business enterprises, including:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 timing and cost
of the construction of mining and processing
facilities;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 availability
and costs of skilled labor and mining equipment;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 availability
and cost of appropriate smelting and/or refining
arrangements;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 need to obtain
necessary environmental and other governmental approvals and
permits and the timing of those approvals and permits;
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: 49px">
<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 availability of
funds to finance construction and development
activities.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#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 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
costs, timing and complexities of mine construction and development
are increased by the remote location of our mining properties. It
is common in new mining operations to experience unexpected
problems and delays during development, construction and mine
start-up. In addition, delays in the commencement of mineral
production often occur. Accordingly, there are no assurances that
our activities will successfully establish mining operations,
result in profitable operations or that vanadium, silver, coal or
other metals will be produced at any of our
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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
All of the properties in which we hold an interest are considered
to be in the exploration stage only and do not contain a known body
of commercial minerals. The figures for our resources are estimates
based on interpretation and assumptions and may yield less mineral
production under actual operating conditions than is currently
estimated.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
the properties in which we hold an interest are considered to be in
the exploration stage only and do not contain a known body of
commercial minerals. The figures for our resources are estimates
based on interpretation and assumptions and may yield less mineral
production under actual operating conditions than is currently
estimated. Unless otherwise indicated, mineralization figures
presented in this Annual Report and in our other filings with
securities regulatory authorities, news releases and other public
statements that may be made from time to time are based upon
estimates made by our personnel and independent geologists. These
estimates may be imprecise because they are based upon geological
and engineering interpretation and statistical inferences drawn
from drilling and sample analysis, stated operating conditions, and
mineral processing tests, which may prove to be unreliable. There
can be no assurance that:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">these estimates
will be accurate;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">resource or other
mineralization figures will be accurate; 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: 49px">
<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 resource or
mineralization could be mined or processed profitably.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
we have not commenced production at any of our properties, other
than Ulaan Ovoo, and have not defined or delineated any proven or
probable reserves on any of our properties, the mineralization
estimates for our properties may require adjustments including
possible downward revisions based upon further exploration or
development work, actual production experience, or current costs
and sales prices. In addition, the quality of coal or grade of ore
ultimately mined, if any, may differ from that indicated by
drilling and beneficiation testing results. There can be no
assurance that the type and amount of minerals recovered in
laboratory analyses and small-scale beneficiation tests will be
duplicated in large-scale tests under on-site conditions or in
production scale.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
resource estimates contained in this Annual Report have been
estimated based on assumed future prices, cut-off grades and
operating costs that may prove to be inaccurate. Extended declines
in market prices for vanadium, silver, coal or other metals may
render portions of our mineralization uneconomic and result in
reduced reported mineralization. Any material reductions in
estimates of mineralization, or of our ability to extract this
mineralization, could have a material adverse effect on our results
of operations or financial condition.</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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Actual capital costs, operating costs, production and economic
returns may differ significantly from those we have anticipated and
there are no assurances that any future development activities will
result in profitable mining operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Actual
capital costs, operating costs, production and economic returns may
differ significantly from those we have anticipated, and we cannot
assure you that any future development activities will result in
profitable mining operations. The capital costs required to take
our projects into production may be significantly higher than
anticipated. None of our mineral properties has a sufficient
operating history upon which we can base estimates of future
operating costs. Any potential decisions about the possible
development of these and other mineral properties would ultimately
be based upon feasibility studies which may or may not be
undertaken. Feasibility studies derive estimates of cash operating
costs based upon, among other things:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">anticipated
tonnage, grades and metallurgical characteristics of the ore or
quality of the vanadium, silver, coal or other minerals to be mined
and/or processed;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">anticipated
recovery rates of metals from the ore;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">cash operating
costs of comparable facilities and equipment; 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: 49px">
<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">anticipated
climatic conditions.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">11</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Cash
operating costs, production and economic returns, and other
estimates contained in studies or estimates prepared by or for us
may differ significantly from those anticipated by our current
studies and estimates, and there can be no assurance that our
actual operating costs will not be higher than currently
anticipated.</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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
The outbreak of contagious diseases, including the spread of the
coronavirus, could impact our business operations, results of
operations and/or financial condition.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
business operations could be significantly adversely affected by
the effects of a widespread global outbreak of contagious disease,
including the recent outbreak of respiratory illness caused by a
novel coronavirus (the &#x201C;COVID-19&#x201D;). We cannot
accurately predict the impact COVID-19 will have on third parties,
including our employees or contractors, ability to fulfil their
obligations to the Company, including due to uncertainties relating
to the ultimate geographic spread of the virus, its severity, the
duration of the outbreak, and the restrictions imposed by
governments of affected countries to combat COVID-19. In addition,
a significant outbreak of contagious diseases in the human
population could result in a widespread health crisis that could
adversely affect the economies and financial markets of many
countries (including those countries in which our properties are
located and other countries we rely on to conduct our business
operations), resulting in an economic downturn that could
negatively impact our operating results and financial condition.
There can be no assurance that any policies or procedures that have
been or that may be put in place by the Company will mitigate the
risks associated with, or that they will not cause us to
experience, less favourable health, safety and economic outcomes,
including the ability to obtain financing for business operations
as needed or on terms acceptable to 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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We are subject to substantial government regulation in the United
States and Canada. Changes to regulation or more stringent
implementation could have a material adverse effect on our results
of operations and financial condition.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mining
and exploration activities at our properties in North America are
subject to various laws and regulations relating to the protection
of the environment, such as the U.S. federal Clean Water Act and
the Nevada Water Pollution Control Law. Although we intend to
comply with all existing environmental and mining laws and
regulations, no assurance can be given that we will be in
compliance with all applicable regulations or that new rules and
regulations will not be enacted or that existing rules and
regulations will not be applied in a manner that could limit or
curtail development of our 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
claims held by us in the United States are unpatented lode mining
claims and all claims held by us in Ontario are patented claims. At
present, there is no royalty payable to the United States on
production from unpatented mining claims, but exploration and
development on these claims is subject to regulation and requires
permits from the U.S. Department of Interior and various state
agencies. There is a tax imposed on profits from the extraction of
mineral substances raised and sold by operators of Ontario mines.
There have been legislative attempts to impose a royalty on
production from unpatented mining claims in the United States in
recent years. Amendments to current laws and regulations governing
exploration, development and mining or more stringent
implementation thereof could have a material adverse effect on our
business and cause increases in exploration expenses or capital
expenditures or require delays or abandonment in the development of
our 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
operations are also subject to laws and regulations governing the
protection of endangered and other specified species. In May 2015,
the U.S. Department of the Interior released a plan to protect the
greater sage grouse, a species whose natural habitat is found
across much of the western United States, including Nevada. The
U.S. Department of the Interior&#x2019;s plan is intended to guide
conservation efforts on approximately 70 million acres of national
public lands. No assurances can be made that restrictions relating
to conservation will not have an adverse impact on our operations
in impacted areas.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
also required to expend significant resources to comply with
numerous corporate governance and disclosure regulations and
requirements adopted by Canadian federal and provincial
governments, as well as the Toronto Stock Exchange (the
&#x201C;TSX&#x201D;). These additional compliance costs and related
diversion of the attention of management and key personnel could
have a material adverse effect on our business.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Reform of the General Mining Law could adversely impact our results
of operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
our unpatented mining claims are on U.S. federal lands. Legislation
has been introduced regularly in the U.S. Congress over the last
decade to change the General Mining Law of 1872, as amended (the
&#x201C;General Mining Law&#x201D;), under which we hold these
unpatented mining claims. It is possible that the General Mining
Law may be amended or replaced by less favorable legislation in the
future. Previously proposed legislation contained a production
royalty obligation, new environmental standards and conditions,
additional reclamation requirements and extensive new procedural
steps which would likely result in delays in permitting. The
ultimate content of future proposed legislation, if enacted, is
uncertain. If a royalty on unpatented mining claims were imposed,
the profitability of our U.S. operations could be materially
adversely affected.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Any
such reform of the General Mining Law could increase the costs of
our U.S. mining activities or could materially impair our ability
to develop or continue our U.S. operations, and as a result, could
have an adverse effect on us and our results of
operations.</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-style: italic; font-family: Times New Roman; font-size: 13px">
We are required to obtain government approvals and permits in order
to conduct operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Government
approvals and permits are currently required in connection with all
of our operations, and further approvals and permits may be
required in the future. We must obtain and maintain a variety of
licenses and permits, which include or cover, without limitation,
air quality, water quality, water rights, dam safety, fire safety,
emergency preparedness, hazardous materials, mercury control, waste
rock management, solid waste disposal, storm water runoff, water
pollution control, water treatment, rights of way and tailings
operations. Such licenses and permits are subject to change in
regulations and in various operating circumstances. The duration
and success of our efforts to obtain permits are contingent upon
many variables outside of our control. Obtaining governmental
approvals and permits may increase costs and cause delays depending
on the nature of the activity to be permitted and the applicable
requirements implemented by the permitting authority.</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">12</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
can be no assurance that all necessary approvals and permits will
be obtained or timely obtained. In addition, there can be no
assurance that, if obtained, the costs of the approvals and permits
will not exceed our estimates or that we will be able to maintain
such approvals and permits. To the extent such approvals or permits
are required and not obtained or maintained, our operations may be
curtailed, or we may be prohibited from proceeding with planned
exploration, development or operation of our mineral
properties.</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"><font style="font-style: italic">
Certain of our current exploration properties are located in
Bolivia and Mongolia, and their operations may be exposed to
various levels of political, economic, and other risks and
uncertainties</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Certain
of our current exploration properties are located in Bolivia and
Mongolia. In these countries, their operations may be exposed to
various levels of political, economic, and other risks and
uncertainties. These risks and uncertainties include, but are not
limited to, political and bureaucratic corruption and uncertainty,
terrorism, hostage taking, military repression, fluctuations in
currency exchange rates, high rates of inflation, labor unrest,
civil unrest, expropriation and nationalization, renegotiation or
nullification of existing concessions, licenses, permits and
contracts, illegal mining, changes in taxation policies,
restrictions on foreign exchange and repatriation, changing
political conditions, currency controls, and governmental
regulations that favor or require the awarding of contracts to
local contractors or require foreign contractors to employ citizens
of, or purchase supplies from, a particular
jurisdiction.</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-family: Times New Roman; font-size: 13px">Future
political and economic conditions may result in a government
adopting different policies with respect to foreign development and
ownership of mineral resources. Any changes in policy may result in
changes in laws affecting ownership of assets, foreign investment,
taxation, rates of exchange, resource sales, environmental
protection, labour relations or practices, price controls,
repatriation of income, and return of capital which may affect both
our ability to undertake exploration and development activities in
respect of future properties in the manner currently contemplated,
as well as our ability to continue to explore, develop, and operate
those properties to which we have rights relating to exploration,
development, and operations.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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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"><font style="font-style: italic">
Changes in regulations or shifts in political attitudes in Bolivia
and Mongolia, as well as in neighbouring countries, are beyond our
control and may adversely affect our business, financial condition
and prospects</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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Any
changes in regulations or shifts in political attitudes in Bolivia
and Mongolia are beyond our control and may adversely affect our
business, financial condition and prospects.</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-family: Times New Roman; font-size: 13px">The
Bolivian government adopted a new constitution (which we refer to
as the &#x201C;NCPE&#x201D;) in early 2009 which increased state
control over key economic sectors, including mining. The NCPE
provides that all minerals, among all natural resources, belong to
the Bolivian people who are represented by the government. Such
entity is the only one capable of managing all minerals throughout
the production chain. Consequently, only the Bolivian central
government possesses the authority to grant mining rights. Bolivian
President Evo Morales signed a new law, the Law of Mining Rights,
increasing the State&#x2019;s expropriation powers over the mining
sector. It was specifically drafted to target mines deemed by the
state as unproductive, inactive or idle. The Bolivian government
has assigned responsibility for determining whether a concession is
idle to the Vice Ministry of Regulation, Auditing and Mining
Policy. Mining areas occupied by cooperatives or local groups will
not be regarded as idle. There have been recent actions by the
government of Bolivia to ease concerns of foreign exploration and
mining investors. As reported in the <font style="font-style: italic">Mining Journal</font>, at a UK-Bolivia trade
and investment forum in London in June of 2016, F&#xE9;lix
C&#xE9;sar Navarro, Minister of Mining and Metallurgy
(&#x201C;Minister Navarro&#x201D;), talked of new safeguards for
foreign investors looking to put cash into the country, stating,
that new contracts governing exploration, mining and processing
were currently going through Bolivia&#x2019;s congress that would
give foreign investors the legal security they need to invest in
the country (<font style="font-style: italic">report by Mining
Journal June 10, 2016</font>). Certain Company officials also met
with Minister Navarro in March, October and November of 2016.
During the meeting in March at the 2016 <font style="font-style: italic">PDA</font>C convention, Minister Navarro
expressed his full support for the start-up and development of the
Pulacayo mine. During the October meeting, Minister Navarro stated
that the aim of the recent mining regulation is to support the
investors and ensure the inclusion of cooperative labor in their
projects. At the November meeting, Minister Navarro stated that
both public and private mining sectors will try to attract foreign
investment disclosing and sharing their experience with investors
from several parts of the world. We consider our investment in the
Pulacayo Project to be safe. However, we cannot provide any
assurance that our operations at the Pulacayo Project will not be
affected by changes in the political environment of Bolivia or the
political attitudes of the Bolivian government. Further, there can
be no assurance that neighboring countries&#x2019; political and
economic policies in relation to Bolivia will also not have adverse
economic effects on our business, including our ability to
transport and sell our product and access construction labor,
supplies and materials.</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-family: Times New Roman; font-size: 13px">The
Mongolian legal system shares several of the qualitative
characteristics typically found in a developing country and many of
its laws, particularly with respect to matters of environment and
taxation, are still evolving. A transaction or business structure
that would likely be regarded under a more established legal system
as appropriate and relatively straightforward might be regarded in
Mongolia as outside the scope of existing Mongolian law, regulation
or legal precedent. As the legal framework in Mongolia is in many
instances based on recent political reforms or newly enacted
legislation which may not be consistent with long-standing
conventions and customs, certain business arrangements or
structures and certain tax planning mechanisms may carry
significant risks. In particular, when business objectives and
practicalities dictate the use of arrangements and structures that,
while not necessarily contrary to settled Mongolian law, are
sufficiently novel within a Mongolian legal context, it is possible
that such arrangements may be invalidated.</font></div>
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<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">The
legal system in Mongolia has inherent uncertainties that could
limit the legal protections available to us. These uncertainties
include, without limitation: (i) inconsistencies between laws; (ii)
limited judicial and administrative guidance on interpreting
Mongolian legislation; (iii) substantial gaps in the regulatory
structure due to delay or absence of implementing regulations; (iv)
the lack of established interpretations of new principles of
Mongolian legislation, particularly those relating to business,
corporate and securities laws; (v) a lack of judicial independence
from political, social and commercial forces; and (vi) bankruptcy
procedures that are not well developed and are subject to abuse.
The Mongolian judicial system has relative little experience in
enforcing the laws and regulations that currently exist, leading to
a degree of uncertainty as to the outcome of any litigation, it may
be difficult to obtain swift and equitable enforcement, or to
obtain enforcement of a judgment by a court of another
jurisdiction.</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
addition, while legislation has been enacted to protect private
property against expropriation and nationalization, due to the lack
of experience in enforcing these provisions and political factors,
these protections may not be enforced in the event of an attempted
expropriation or nationalization. Whether legitimate or not,
expropriation or nationalization of any of our assets, or portions
thereof, potentially without adequate or any compensation, could
materially and adversely affect our business and results of
operations. Further, there can be no assurance that neighboring
countries&#x2019; political and economic policies in relation to
Mongolia will not have adverse economic effects on our business,
including our ability to transport and sell our product and access
construction labor, supplies and materials.</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-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">In Bolivia, recent and
anticipated changes to mining laws and policies and mining taxes
and expected changes in governmental regulation or governmental
actions may adversely affect us</font><font style="font-weight: bold">.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
Bolivia, recent and anticipated changes to mining laws and policies
and mining taxes and expected changes in governmental regulation or
governmental actions may adversely affect us. On May 28, 2014, Law
535 of Mining and Metallurgy (which we refer to as the &#x201C;May
Mining Law&#x201D;) was adopted and placed into effect. Pursuant to
the May Mining Law, we must develop our mining activities to comply
with the economic and social function, which means observing the
sustainability of the mining activities, work creation, respecting
the rights of our mining workers, and ensuring the payment of
mining patents and the continuity of existing
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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Framework Law on Mother Earth and Integral Development for Living
Well (together with the May Mining Law, the &#x201C;New Mining
Laws&#x201D;), in effect since October 15, 2012, prioritizes the
importance of nature to the Bolivian people and could have
significant consequences to the country&#x2019;s mining industry.
This law established 11 new rights for &#x201C;mother earth&#x201D;
including, the right to life and to exist; the right to continue
vital cycle and processes free from human alteration; the right to
pure water and clean air; the right to balance; the right not to be
polluted; and the right to not have cellular structure modified or
genetically altered. At present, it is unclear how the New Mining
Laws will affect exploration companies with projects in the area or
how the law will be enforced.</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 the
past, the Government of Bolivia has nationalized the assets of
certain companies in various industries. Nationalization or other
expropriation of our assets, without adequate compensation, could
have a material adverse effect on our business and/or result in the
total loss of our investment in Bolivia.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Our mineral rights may be terminated or not renewed by governmental
authorities and we may be negatively impacted by changes to mining
laws and 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
activities are subject to government approvals, various laws
governing prospecting, development, land resumptions, production
taxes, labor standards and occupational health, mine safety, toxic
substances and other matters, including issues affecting local
native populations. Although we believe that our activities are
currently carried out in accordance with all applicable rules and
regulations, no assurance can be given that new rules and
regulations will not be enacted or that existing rules and
regulations will not be applied in a manner which could limit or
curtail production or development. Amendments to current laws and
regulations governing operations and activities of exploration and
mining, or more stringent implementation thereof, could have a
material adverse impact on our business, operations and financial
performance. Further, the mining licenses and permits issued in
respect of our projects may be subject to conditions which, if not
satisfied, may lead to the revocation of such licenses. In the
event of revocation, the value of our investments in such projects
may decline.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In the
United States, the tenures are in the form of claims where
exploration and development rights are retained so long as annual
maintenance fees are paid and certain forms filed. The maintenance
fees may be substantial with a large number of claims and the fees
are adjusted periodically. Diligent periodic assessment of the
resource and development value of claims by the claimant is
required.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Title to our mineral properties may be disputed by third
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Title
to mineral properties, as well as the location of boundaries on the
grounds may be disputed. Moreover, additional amounts may be
required to be paid to surface right owners in connection with any
mining development. At all of such properties where there are
current or planned exploration activities, we believe that we have
either contractual, statutory, or common law rights to make such
use of the surface as is reasonably necessary in connection with
those activities. Although we believe we have taken reasonable
measures to ensure proper title to our properties, there is no
guarantee that title to our properties will not be challenged or
impaired. Successful challenges to the title of our properties
could impair the development of operations on those
properties.</font></div>
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<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Environmental regulations worldwide have become increasingly
stringent over the last decade which will require us to dedicate
more time and money to compliance and remediation
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
phases of the mining business present environmental risks and
hazards and are subject to environmental regulation pursuant to a
variety of international conventions, and federal, state and
municipal laws and regulations. Environmental legislation provides
for, among other things, restrictions and prohibitions on spills
and releases or emissions of various substances produced in
association with mining operations. The legislation also requires
that wells and facility sites be operated, maintained, abandoned
and reclaimed to the satisfaction of applicable regulatory
authorities. Compliance with such legislation can require
significant expenditures and a breach may result in the imposition
of fines and penalties, some of which may be material.
Environmental legislation is evolving in a manner expected to
result in stricter standards and enforcement, larger fines and
liability and potentially increased capital expenditures and
operating costs. Environmental assessments of proposed projects
carry a heightened degree of responsibility for companies and their
directors, officers and employees. The cost of compliance with
changes in governmental regulations has a potential to reduce the
profitability of operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Failure
to comply with applicable laws, regulations, and permitting
requirements may result in enforcement actions under, including
orders issued by regulatory or judicial authorities causing
operations to cease or be curtailed, and may include corrective
measures requiring capital expenditures, installation of additional
equipment, or remedial actions. Entities engaged in mining
operations may be required to compensate those suffering loss or
damage by reason of the mining activities and may have civil or
criminal fines or penalties imposed for violations of applicable
laws or regulations and, in particular, environmental
laws.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Amendments to
current laws, regulations and permits governing operations and
activities of mining companies, or more stringent implementation
thereof, could have a material adverse impact on our business and
cause increases in capital expenditures, production costs or
reduction in levels of production at producing properties, or
require abandonment or delays in the development of new mining
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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Certain of our properties are located on land that is or may become
subject to traditional territory, title claims and/or claims of
cultural significance by certain Native American tribes or
Aboriginal communities and stakeholders, and such claims and the
attendant obligations of the provincial and federal governments to
those tribal or Aboriginal communities and stakeholders may affect
our current and future operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Native
American and Aboriginal interests and rights as well as related
consultation issues may impact our ability to pursue exploration
and development at our U.S. and Canadian properties. There is no
assurance that claims or other assertion of rights by tribal or
Aboriginal communities and stakeholders or consultation issues will
not arise on or with respect to our properties or activities. These
could result in significant costs and delays or materially restrict
our activities. Opposition by Native American tribes or Aboriginal
communities and stakeholders to our presence, operations or
development on land subject to their traditional territory or title
claims or in areas of cultural significance could negatively impact
us in terms of public perception, costly legal proceedings,
potential blockades or other interference by third parties in our
operations, or court-ordered relief impacting our operations. In
addition, we may be required to, or may voluntarily, enter into
certain agreements with such Native American tribes or Aboriginal
communities and stakeholders in order to facilitate development of
our properties, which could reduce the expected earnings or income
from any future production.</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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
The mining industry in general is intensely competitive.
Furthermore, there is no assurance that, even if commercial
quantities are discovered, a ready market will exist for sale of
the same mineral ore.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
mining industry in general is intensely competitive and there is no
assurance that, even if commercial quantities of ore are
discovered, a ready market will exist for the sale of same.
Marketability of natural resources which we may discover will be
affected by numerous factors beyond our control, such as market
fluctuations, the proximity and capacity of natural resource
markets and processing equipment, government regulations including
regulations relating to prices, royalties, land tenure, land use,
importing and exporting of minerals and environmental protection.
The exact effect of such factors cannot be predicted but they may
result in us not receiving an adequate return on our
investment.</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-style: italic; font-family: Times New Roman; font-size: 13px">
The mining business is subject to inherent risks, some of which are
not insurable.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
business is subject to a number of risks and hazards, including
adverse environmental conditions, industrial accidents, labor
disputes, unusual or unexpected geological conditions, ground or
slope failures, cave-ins, changes in the regulatory environment and
natural phenomena such as inclement weather conditions, floods and
earthquakes. Such occurrences could result in damage to mineral
properties or production facilities, personal injury or death,
environmental damage to our properties or the properties of others,
delays in development or mining, monetary losses and possible legal
liability.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Although we
maintain insurance to protect against certain risks in amounts that
we consider reasonable, our insurance will not cover all the
potential risks associated with our operations. We may also be
unable to maintain insurance to cover these risks at economically
feasible premiums. Insurance coverage may not continue to be
available or may not be adequate to cover any resulting liability.
Moreover, insurance against risks such as environmental pollution
or other hazards as a result of exploration and production is not
generally available to us or to other companies in the mining
industry on acceptable terms. We may also become subject to
liability for pollution or other hazards which may not be insured
against or which we may elect not to insure against because of
premium costs or other reasons. Losses from these events may cause
us to incur significant costs that could have a material adverse
effect upon our financial performance, results of operations and
business outlook.</font></div>
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<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We depend on a number of key personnel, including our directors and
executive officers, the loss of any one of whom could have an
adverse effect on our operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
depend on a number of key personnel, including our directors and
executive officers, the loss of any one of whom could have an
adverse effect on our operations. We have employment and consulting
contracts with several key personnel, and we do not have key man
life insurance.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
ability to manage growth effectively will require us to continue to
implement and improve management systems and to recruit and train
new employees. We cannot assure you that we will be successful in
attracting and retaining skilled and experienced
personnel.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Our business is highly dependent on the international market prices
of the metals we plan to produce, which are both cyclical and
volatile.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
revenues, if any, are expected to be in large part derived from the
mining and sale of vanadium, silver, coal and other minerals. The
prices of those commodities have fluctuated widely, particularly in
recent years, and are affected by numerous factors beyond our
control including international economic and political trends,
expectations of inflation, currency exchange fluctuations, interest
rates, global or regional consumption patterns, speculative
activities and increased production due to new mine developments
and improved mining and production methods.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
price of vanadium, silver and coal may have a significant influence
on the market price of our securities and the value of our mineral
properties. Mineral prices fluctuate widely and are affected by
numerous factors beyond our control. The level of interest rates,
the rate of inflation, the world supply of mineral commodities and
the stability of exchange rates can all cause significant
fluctuations in prices. Such external economic factors are in turn
influenced by changes in international investment patterns,
monetary systems and political developments. The price of mineral
commodities has fluctuated widely in recent years, and future price
declines could cause commercial production to be impracticable,
thereby having a material adverse effect on our business, financial
condition and result of operations.</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-style: italic; font-family: Times New Roman; font-size: 13px">
We may be subject to misconduct by third-party
contractors.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We will
be heavily reliant upon our contractors during the development of
large scale projects. Companies are often measured and evaluated by
the behavior and performance of their representatives, including in
large part their contractors. We work hard to build in controls and
mechanisms to choose and retain employees and contractors with
similar values to our own; however, these controls may not always
be effective. Sound judgment, safe work practices, and ethical
behavior is expected from our contractors both on and off-site. Any
work disruptions, labor disputes, regulatory breach or
irresponsible behavior of our contractors could reflect on us
poorly and could lead to loss of social license, delays in
production and schedule, unsafe work practices and accidents and
reputational harm.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Our business requires substantial capital expenditures and is
subject to financing 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
estimate that our current financial resources are insufficient to
undertake presently planned exploration and development programs.
Further exploration on and development and construction of our
mineral properties may require additional capital. One source of
future funds presently available to us is through the sale of
equity capital. There is no assurance that this source will
continue to be available as required or at all. If it is available,
future equity financings may result in substantial dilution to
shareholders. Another alternative for the financing of further
exploration and/or development would be the offering of an interest
in our mineral properties to be earned by another party or parties
carrying out further exploration or development thereof. There can
be no assurance that we will be able to conclude any such
agreements on favorable terms or at all.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Any
failure to obtain the required financing on acceptable terms could
have a material adverse effect on our financial condition, results
of operations and liquidity and may require us to cancel or
postpone planned capital investments.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Currency fluctuation may affect our operations and financial
stability.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
transact business in a number of currencies including Canadian,
U.S., Bolivian and Mongolian currencies. Fluctuations in exchange
rates may have a significant effect on our cash flows. Future
changes in exchange rates could materially affect our results in
either a positive or negative direction. We do not currently engage
in foreign currency hedging 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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We are subject to anti-corruption, anti-bribery and anti-money
laundering laws and regulations in Canada and the United States,
among other countries. Any violations of any such laws or
regulations could have a material adverse impact on our reputation
and results of operations and financial condition.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
subject to anti-corruption legislation including the <font style="font-style: italic">Corruption of Foreign Public Officials
Act</font> (Canada) and other similar acts (which we refer to
collectively as &#x201C;Anti- Corruption Legislation&#x201D;), which
prohibit us or any of our officers, directors, employees or agents
or any of our stockholders acting on our behalf from paying,
offering to pay or authorizing the payment of anything of value to
any foreign government official, government staff member, political
party or political candidate in an attempt to obtain or retain
business or to otherwise influence a person working in an office
capacity. Anti-Corruption Legislation also requires public
companies to make and keep books and records that accurately and
fairly reflect their transactions and to devise and maintain an
adequate system of internal accounting controls. Our international
activities create the risk of unauthorized payments or offers of
payments by our employees, consultants or agents, even though they
may not always be subject to our control. We have policies and
procedures in place that strictly prohibit these practices by our
employees and agents. However, our existing safeguards and any
future improvements may prove to be less than effective, and our
employees, consultants and agents may engage in conduct for which
we may be held responsible. Any failure by us to adopt appropriate
compliance procedures and to ensure that our employees and agents
comply with Anti- Corruption Legislation and other applicable laws
and regulations in foreign jurisdictions could result in
substantial penalties or restrictions on our ability to conduct our
business, which may have a material adverse impact on us or our
share price.</font></div>
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</div>
</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: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Our results and financial condition are affected by global and
local market conditions that we do not control and cannot
predict.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Access
to financing has been negatively impacted by many factors as a
result of the global financial crisis. This may impact our ability
to obtain debt or equity financing in the future on terms favorable
to us and our ability to attain strategic partnerships or enter
into joint venture arrangements which may further negatively impact
the timeline for commencement of commercial production.
Additionally, global economic conditions may cause decreases in
asset values that are deemed to be other than temporary, which may
result in impairment losses. If such volatility and market turmoil
continue, our business and financial condition could be adversely
impacted.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Our insurance will not cover all the potential risks associated
with a mining company&#x2019;s operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
insurance will not cover all the potential risks associated with a
mining company&#x2019;s operations. We may also be unable to
maintain insurance to cover these risks at economically feasible
premiums. Insurance coverage may not continue to be available or
may not be adequate to cover any resulting liability. Moreover,
insurance against risks such as environmental pollution or other
hazards as a result of exploration and production is not generally
available to us or to other companies in the mining industry on
acceptable terms. We may also become subject to liability for
pollution or other hazards which may not be insured against or
which we may elect not to insure against because of premium costs
or other reasons. Losses from these events may cause the Company to
incur significant costs that could have a material adverse effect
upon its financial condition and results of
operations.</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-style: italic; font-family: Times New Roman; font-size: 13px">
We have never paid any dividends and we are unlikely to do so in
the foreseeable future.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">To
date, we have never paid any dividends on our outstanding common
shares and we are unlikely to do so in the foreseeable future. Any
decision to pay dividends on our common shares will be made by our
Corporate Governance and Compensation Committee on the basis of our
earnings, financial requirements and other conditions.</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-style: italic; font-family: Times New Roman; font-size: 13px">
We engage in extensive related party transactions, which may result
in conflicts of interest involving our 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
engaged in the past, and continue to engage, in extensive related
party transactions involving certain of our management. See the
discussion under the heading &#x201C;<font style="font-style: italic">Item 7.B. Related Party
Transactions</font>&#x201D; for further detail. Such related party
transactions could cause us to become materially dependent on the
related parties in the ongoing conduct of our business, and related
parties may be motivated by personal interests to pursue courses of
action that are not necessarily in the best interests of the
Company and our stockholders. Related party transactions often
present conflicts of interest, could result in disadvantages to the
Company, and may impair investor confidence, all of which could
materially and adversely affect us.</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-style: italic; font-family: Times New Roman; font-size: 13px">
We rely on information technology systems and networks in our
operations which are provided and maintained by third-party
contractors.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We rely
on information technology (&#x201C;IT&#x201D;) systems and networks
in our operations which are provided and maintained by third-party
contractors. The availability, capacity, reliability and security
of these IT systems could be subject to network disruptions caused
by a variety of malicious sources, including computer viruses,
security breaches, cyber-attacks and theft, as well as network
and/or hardware disruptions resulting from unexpected failures such
as human error, software or hardware defects, natural disasters,
fire, flood or power loss. Our operations also depend on the timely
maintenance, upgrade and replacement of networks, equipment, IT
systems and software, as well as pre-emptive expenses to mitigate
the risks of failures.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
ability of the IT function to support our business in the event of
any such failure and the ability to recover key systems from
unexpected interruptions cannot be fully tested. There is a risk
that if such an event were to occur, our response may not be
adequate to immediately address all of the potential repercussions
of the incident. In the event of a disaster affecting our head
office, key systems may be unavailable for a number of days,
leading to inability to perform some business processes in a timely
manner. The failure of our IT systems or a component thereof could,
depending on the nature, materially impact our financial condition,
results of operations, reputation and share price.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Unauthorized access
to our IT systems as a result of cyber-attacks could lead to
exposure, corruption or loss of confidential information, and
disruption to our communications, operations, business activities
or our competitive position. Further, disruption of critical IT
services, or breaches of information security, could expose us to
financial losses and regulatory or legal action. Our risk and
exposure to these matters cannot be fully mitigated because of,
among other things, the evolving nature of these threats. As a
result, cyber- security and the continued development and
enhancement of controls, processes and practices designed to
protect systems, computers, software, data and networks from
attack, damage or unauthorized access remain a
priority.</font></div>
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<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
apply technical and process controls in line with industry-accepted
standards to protect information, assets and systems. Although
these measures are robust, they cannot possibly prevent all types
of cyber-threat. There is no assurance that we will not suffer
losses associated with cyber-security breaches in the future, and
we may be required to expend significant additional resources to
investigate, mitigate and remediate any potential vulnerabilities.
As cyber-threats continue to evolve, we may be required to expend
additional resources to continue to modify or enhance protective
measures or to investigate and remediate any security
vulnerabilities.</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-style: italic; font-family: Times New Roman; font-size: 13px">
As a foreign private issuer, we are permitted to file less
information with the SEC than a company that is not a foreign
private issuer or that files as a domestic issuer.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As a
&#x201C;foreign private issuer,&#x201D; we are exempt from certain
rules under the Exchange Act that impose disclosure requirements as
well as procedural requirements for proxy solicitations under
Section 14 of the Exchange Act. In addition, our officers,
directors and principal shareholders are exempt from the reporting
and &#x201C;short-swing&#x201D; profit recovery provisions of Section
16 of the Exchange Act. Moreover, we are not required to file
periodic reports and financial statements with the SEC as
frequently or as promptly as a company that files as a domestic
issuer whose securities are registered under the Exchange Act, nor
are we generally required to comply with the SEC&#x2019;s Regulation
FD, which restricts the selective disclosure of material non-public
information. For as long as we are a foreign private issuer we
intend to file our annual financial statements on Form 20-F and
furnish our quarterly financial statements on Form 6-K to the SEC
for so long as we are subject to the reporting requirements of
Section 13(g) or 15(d) of the Exchange Act. However, the
information we file or furnish will not be the same as the
information that is required in annual and quarterly reports on
Form 10-K or Form 10-Q for U.S. domestic issuers. Accordingly,
there may be less information publicly available concerning us than
there is for a company that files as a domestic
issuer.</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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We may lose our foreign private issuer status, which would then
require us to comply with the Exchange Act&#x2019;s domestic
reporting regime and cause us to incur additional legal, accounting
and other expenses.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
required to determine our status as a foreign private issuer on an
annual basis at the end of our second fiscal quarter. We will lose
our current status as a foreign private issuer if (1) a majority of
our common shares are directly or indirectly held of record by
residents of the United States; and (2) either (a) a majority of
our executive officers or directors are</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
citizens or residents, or (b) more than 50 percent of our assets
are located in the United States, or (c) our business is
administered principally in the United States. If we lose this
status, we would be required to comply with the Exchange Act
reporting and other requirements applicable to U.S. domestic
issuers, which are more detailed and extensive than the
requirements for foreign private issuers. We may also be required
to make changes in our corporate governance practices in accordance
with various SEC rules. Further, we would be required to comply
with United States generally accepted accounting principles, as
opposed to IFRS, in the preparation and issuance of our financial
statements for historical and current periods. The regulatory and
compliance costs to us under U.S. securities laws if we are
required to comply with the reporting requirements applicable to a
U.S. domestic issuer may be higher than the cost we would incur as
a foreign private issuer. As a result, we expect that a loss of
foreign private issuer status would increase our legal and
financial compliance costs.</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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
As a Canadian incorporated and domiciled company, our financial
statements are prepared using IFRS accounting principles which are
different than the accounting principles under U.S. Generally
Accepted Accounting Principles.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
financial statements have been prepared in accordance with IFRS.
IFRS is an internationally recognized body of accounting principles
that are used by many companies outside of the United States to
prepare their financial statements. IFRS accounting principles are
different from those of U.S. GAAP. Investors who are not familiar
with IFRS may misunderstand certain information presented in our
financial statements. Accordingly, we suggest that readers of our
financial statements familiarize themselves with the provisions of
IFRS accounting principles in order to better understand the
differences between these two sets of principles.</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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Because we are a Canadian company and the majority of our directors
and officers are resident in Canada or countries other than the
United States, it may be difficult for investors in the United
States to enforce civil liabilities against us based solely upon
the federal securities laws of the United States.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
governed by the corporate legislation of British Columbia, where we
amalgamated, and our principal place of business is in Canada. Our
auditors and a majority of our directors and officers are residents
of Canada or countries other than the United States. All or a
substantial portion of our assets and those of such persons are
located outside the United States. Consequently, it may be
difficult for U.S. investors to effect service of process within
the United States upon us or our directors, officers and auditors
who are not residents of the United States or to realize in the
United States upon judgments of U.S. courts predicated upon civil
liabilities under the Securities Act (as defined below). Investors
should not assume that Canadian or other foreign courts: (1) would
enforce judgments of U.S. courts obtained in actions against us or
such persons predicated upon the civil liability provisions of the
U.S. federal securities laws or the securities or &#x201C;blue
sky&#x201D; laws of any state within the United States or (2) would
enforce, in original actions, liabilities against us or such
persons predicated upon the U.S. federal securities laws or any
such state securities or blue-sky laws.</font></div>
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<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: 8px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
We are an emerging growth company and we cannot be certain if the
reduced disclosure requirements applicable to emerging growth
companies may make our securities less attractive to investors and,
as a result, adversely affect the price of our securities and
result in a less active trading market for our
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
an emerging growth company as defined in Rule 12b-2 under the
Exchange Act, and we may take advantage of certain exemptions from
various reporting requirements that are applicable to other public
companies that are not emerging growth companies. For example, we
have elected to rely on an exemption from the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act relating to
internal control over financial reporting, and we will not provide
such an attestation from our auditors.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We may
avail ourselves of these disclosure exemptions until we are no
longer an emerging growth company. We cannot predict whether
investors will find our securities less attractive because of our
reliance on some or all of these exemptions. If investors find our
securities less attractive, it may adversely impact the price of
our securities and there may be a less active trading market for
our securities.</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">We will
cease to be an emerging growth company upon the earliest
of:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 last day of the
fiscal year during which we have total annual gross revenues of
$1,070,000,000 or more;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 last day of our
fiscal year following the fifth anniversary of the completion of
our first sale of common equity securities pursuant to an effective
registration statement under the U.S. Securities Act of 1933 (the
&#x201C;Securities Act&#x201D;);</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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 date on which
we have, during the previous three-year period, issued more than
$1,000,000,000 in non-convertible debt; 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: 49px">
<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 date on which
we are deemed to be a &#x201C;large accelerated filer&#x201D;, as
defined in Rule 12b&#x2013;2 of the Exchange Act, which would occur
if the market value of our common shares that are held by
non-affiliates exceeds $700,000,000 as of the last day of our most
recently-completed second fiscal quarter.</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-style: italic; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s Passive Foreign Investment Company status has
possible adverse tax consequences for U.S. 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
the Company is an exploration stage company and its only material
revenues consist of passive investment income on its cash
investments, U.S. shareholders of common shares should be aware
that the Company believes it was classified as a passive foreign
investment company (&#x201C;PFIC&#x201D;) during the tax year ended
December 31, 2019, and based on current business plans and
financial expectations, the Company anticipates that it may be a
PFIC for the current tax year and may be a PFIC in future tax
years. If the Company is a PFIC for any year during a U.S.
shareholder&#x2019;s holding period of the common shares, then such
U.S. shareholder generally will be required to treat any gain
realized upon a disposition of common shares, or any &#x201C;excess
distribution&#x201D; received on its common shares, as ordinary
income, and to pay an interest charge on a portion of such gain or
distribution, unless the shareholder makes a timely and effective
"qualified electing fund" election (&#x201C;QEF Election&#x201D;) or
a "mark-to-market" election with respect to 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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 the 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 a 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&#x2019;s adjusted tax basis therein. This paragraph is
qualified in its entirety by the discussion below under the heading
&#x201C;Certain United States Federal Income Tax
Consequences.&#x201D; Each U.S. shareholder should consult its own
tax advisors 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: 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="i4">I</a>TEM 4.&#xA0; INFORMATION ON THE COMPANY</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="display: table-row">
<div style="display: table-cell; width: 41px"><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;</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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Silver
Elephant Mining Corp. (formerly Prophecy Development Corp.) is an
exploration stage company specializing in mine permitting,
construction, and operations in the United States, Canada, Bolivia
and Mongolia. The Company, in its current form, is primarily the
product of an April 16, 2010 business combination between Red Hill
Energy Inc. and Prophecy Resource Corp. We are currently governed
under the Business Corporations Act (British Columbia)
(&#x201C;BCBCA&#x201D;). Our head and registered offices are located
at Suite 1610 &#x2013; 409 Granville Street, Vancouver, British
Columbia, V6C 1T2, Telephone: 604-569-3661.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Red
Hill Energy Inc. was incorporated on November 6, 1978 under the
Corporations Act (British Columbia) under the name &#x201C;Banbury
Gold Mines Ltd.&#x201D; Banbury changed its name to &#x201C;Enerwaste
Minerals Corp.&#x201D; on July 3, 1992 and to &#x201C;Universal
Gun-Loc Industries Ltd.&#x201D; on December 17, 1993. On April 24,
2002, Universal Gun-Loc changed its name to &#x201C;UGL Enterprises
Ltd.&#x201D; and then to &#x201C;Red Hill Energy Inc.&#x201D; on May
29, 2006.</font></div>
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</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">On
April 16, 2010, Red Hill Energy Inc. changed its name to
&#x201C;Prophecy Resource Corp.&#x201D; in conjunction with the
merger of Red Hill Energy Inc. and Prophecy Resource
Corp.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
13, 2011, the Prophecy Resource Corp. changed its name to
&#x201C;Prophecy Coal Corp.&#x201D; in connection with its
amalgamation with Northern Platinum Ltd. and Prophecy Holdings Inc.
and an asset spin-off to capitalize the Company&#x2019;s
then-controlled affiliate, Wellgreen Platinum Ltd.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 2, 2015, we completed, by way of a share purchase
agreement, the acquisition of 100% of Apogee Silver Ltd.&#x2019;s
(&#x201C;<font style="font-weight: bold">Apogee</font>&#x201D;)
interest in and to ASC Holdings Limited and ASC Bolivia LDC (which
together, indirectly held through ASC Bolivia LDC Sucursal Bolivia,
Apogee&#x2019;s joint venture interest in the Pulacayo Project and
Apogee Minerals Bolivia S.A. by paying to Apogee $250,000 in cash
and issuing to Apogee 60 million common shares 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 5, 2015, Prophecy Coal Corp. changed its name to
&#x201C;Prophecy Development Corp.&#x201D; in connection with an
acquisition of assets located in Bolivia and to better reflect its
various interests in its mining and energy projects at the time in
the United States, Canada, Bolivia and Mongolia.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 12, 2015, we entered into a credit facility (which, as
amended, we refer to as the &#x201C;Credit Facility&#x201D;) with
Linx Partners Ltd. (which we refer to as &#x201C;Linx&#x201D;), a
private company wholly-owned and controlled by John Lee, our
Interim Chief Executive Officer and Executive Chairman, and a
member of our board of directors (which we refer to as the
&#x201C;Board&#x201D;), in order to meet interim working capital
requirements to fund our business operations and financial
commitments. The Credit Facility was amended on May 5, 2015 and
February 24, 2016. The Credit Facility was revolving and had a
maximum principal amount available for advance of $2.5 million. The
Credit Facility had a two-year term with an option to extend for
any number of subsequent one-year terms subject to approval by the
TSX and had a simple interest rate of 18% per annum. We closed out
and terminated the Credit Facility on November 28,
2017.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
5, 2015, the Company, through our wholly-owned subsidiary, Red
Hill, entered into a purchase agreement with Khishig Arvin
Industrial LLC, an arm&#x2019;s-length party in Mongolia, to sell
substantially all of our mining and transportation equipment at our
Ulaan Ovoo Property for total proceeds of approximately $2.34
million. The sale, together with the sale of additional equipment
to other arm&#x2019;s-length parties, was completed in June 2015 and
we received approximately $2.9 million in cash. In consideration
for our receiving consent to the sales of the equipment from Linx,
which held a general security interest over all of our property
(including property indirectly held through our subsidiaries such
as Red Hill), we issued the equivalent of 1,200,000 common share
purchase warrants of the Company to Mr. Lee, the beneficial owner
of Linx, exercisable at the equivalent of $0.50 per share for a
period of five years expiring on May 22, 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 1, 2015, we announced a non-brokered private placement
involving the issuance of up to the equivalent of 4,000,000 units
at a price of the equivalent of $0.50 per unit. Each unit consisted
of one common share of the Company and one common share purchase
warrant entitling the holder thereof to acquire an additional
common share of the Company at a price of the equivalent of $0.70
per common share for a period of five years from the date of
issuance. On September 30, 2015, we closed on a first cash tranche
of the aforementioned private placement for gross cash proceeds of
$556,000 through the issuance of the equivalent of 1,112,000 units
(the &#x201C;Sept. 1, 2015 Private Placement&#x201D;) . The remainder
of this private placement was cancelled on November 4,
2015.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 12, 2015, we announced a non-brokered private placement
involving the issuance of up to the equivalent of 2,500,000 units
at a price of the equivalent of $0.40 per unit (the &#x201C;Nov. 12,
2015 Private Placement&#x201D;). Each unit consisted of one common
share of the Company and one common share purchase warrant
entitling the holder thereof to acquire an additional common share
of the Company at a price of the equivalent of $0.70 per common
share for a period of five years from the date of issuance. On
November 13, 2015 we closed on a first tranche of the
aforementioned private placement for gross cash proceeds of
$250,000 through the issuance of the equivalent of 625,000 units.
On December 18, 2015, we announced the closure of the
aforementioned private placement with no further
subscriptions.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 25, 2016, we completed a non-brokered private placement
involving the issuance of the equivalent of 800,000 units at a
price of the equivalent of $0.25 per unit (the &#x201C;Jan. 25, 2016
Private Placement&#x201D;) , with each unit consisting of one common
share and one warrant to purchase one common share at a price of
the equivalent of $0.40 per common share for a period of five years
from the date of issuance.</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
January 29, 2016, we voluntarily delisted our common shares from
the OTCQX.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 30, 2016, we entered into a debt settlement agreement with
Linx and Mr. Lee, the beneficial owner of Linx, pursuant to which,
we agreed to issue the equivalent of 7,500,000 units to Mr. Lee, in
satisfaction of $1,500,000 of indebtedness owed by us to Linx under
the Credit Facility (the &#x201C;Mar. 30, 2016 Linx
Settlement&#x201D;) . Each unit consists of one common share and one
warrant to purchase one common share at a price of the equivalent
of $0.40 per common share for a period of five years from the date
of issuance. We issued the aforementioned equivalent of 7,500,000
units on June 6, 2016.</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
7, 2016, we completed the Consolidation.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 29, 2016, we completed a non-brokered private placement
involving the issuance of the equivalent of 2,027,350 units at a
price of the equivalent of $0.38 per unit for gross proceeds of
$770,393 (the &#x201C;Aug. 29, 2016 Private Placement&#x201D;). Each
unit consisted of one common share and one-half of one common share
purchase warrant, with each full purchase warrant entitling the
holder thereof to purchase one common share at a price equivalent
of $0.44 per common share for a period of five years from the date
of issuance.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 22, 2016, we sold our 60% interest in the Okeover,
copper-molybdenum project located in British Columbia, Canada to
Lorraine Copper Corp. (which we refer to as
&#x201C;Lorraine&#x201D;). Under the terms of the agreement, Lorraine
issued 2,200,000 common shares of Lorraine (valued at $0.08 per
share) to us and assumed our $19,079 payment obligation to
Eastfield Resources Ltd. under such parties&#x2019; existing joint
venture agreement. We are additionally entitled to receive 30% of
any payments or proceeds resulting from third party agreements
related to the project entered into within five years of the date
of the sale, up to a maximum amount of $1,000,000.</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">THREE
YEAR HISTORY</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: 8px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2017</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 13, 2017, we closed a non-brokered private placement
involving the issuance of the equivalent of 499,990 units at a
price of the equivalent of $0.30 per unit, with each unit
consisting of one common share and one warrant to purchase one
common share at a price of the equivalent of $0.40 per common share
for a period of five years from the date of issuance.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 13, 2017, we entered into another debt settlement agreement
with Linx and Mr. Lee, the beneficial owner of Linx, to settle most
of the outstanding balance we owed to Linx under the Credit
Facility. We agreed to issue the equivalent of 3,000,000 common
shares of the Company to Mr. Lee, in satisfaction of $900,000 of
indebtedness owed by us to Linx under the Credit Facility. Linx
agreed to accrue and postpone the repayment of any principal,
interest and fees due under the Credit Facility until the earlier
of October 1, 2017, or such time as the Company is in a reasonable
financial position to repay all or a portion of the amounts
owing.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 10, 2017, we acquired the remaining 20% title interest
held by Ransburg International Gold Corp. in the patented claims
that comprise the Titan Project, and issued the equivalent of
200,000 common shares of the Company in consideration
therefor.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 12, 2017, we closed a non-brokered private placement
involving the issuance of the equivalent of 1,032,500 units at a
price of the equivalent of $0.40 per unit, with each unit
consisting of one common share and one warrant to purchase one
common share at a price of the equivalent of $0.50 per common share
for a period of five years from the date of issuance.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
22, 2017, we acquired through lease, the Gibellini Project, by
paying USD$35,000 in cash to Janelle Dietrich, (whom we refer to as
the &#x201C;Gibellini Lessor&#x201D;) with the intent to carry-out
mining operations there. Under the mineral lease agreement, we
agreed to lease the Gibellini mining claims by paying to the
Gibellini Lessor, annual advance royalty payments which will be
tied, based on an agreed formula (not to exceed USD$120,000 per
year), to the average vanadium pentoxide price of the preceding
year. Upon commencement of production, we intend to maintain our
acquisition through lease of the Gibellini mining claims by paying
to the Gibellini Lessor, a 2.5% net smelter return (which we refer
to as &#x201C;NSR&#x201D;) until a total of USD$3 million is paid.
Thereafter, the NSR will be reduced to 2% over the remaining life
of the mine. All advance royalty payments made, will be deducted as
credits against future production royalty payments. The lease is
for a term of 10 years, which can be extended for an additional 10
years at our option. On April 23, 2018, we amended the mineral
lease agreement to provide us with an option at any time during the
term of the mineral lease agreement, to require the Gibellini
Lessor to transfer her title over all of the leased Gibellini
mining claims (excluding four claims which will be retained by the
Gibellini Lessor and which contain minimal resources) to us in
exchange for USD$1,000,000, to be paid as an advance royalty
payment (we refer to this as the &#x201C;Transfer Payment&#x201D;).
We received a credit of USD$99,027 towards the Transfer Payment
upon signing of the amendment, with the remaining USD$900,973
portion of the Transfer Payment due and payable by us to the
Gibellini Lessor upon completion of the transfer of the
aforementioned claims from the Gibellini Lessor to us. The advance
royalty obligation and production royalty will not be affected,
reduced or relieved by the transfer of title.</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-family: Times New Roman; font-size: 13px">On July
10, 2017, we acquired through lease, the Louie Hill group of claims
in Nevada, USA, by paying USD$10,000 in cash to Richard A. McKay,
Nancy M. Minoletti and Pamela</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">S.
Scutt (whom we refer to collectively as the &#x201C;Louie Hill
Lessors&#x201D;) with the intent to carry out mining operations
there. Under the mineral lease agreement, we will lease the Louie
Hill group of claims by paying, to the Louie Hill Lessors, annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed USD$28,000 per year), to the average
vanadium pentoxide price for the preceding year. Upon commencement
of production, we intend to maintain our acquisition through lease
of the Louie Hill group of claims by paying to the Louie Hill
Lessors, a 2.5% NSR of which, 1.5% of the NSR may be purchased by
us at any time for USD$1 million, leaving the total NSR to be
reduced to 1% over the remaining life of the mine. All advance
royalty payments made, will be deducted as credits against future
production royalty payments. The lease is for a term of 10 years,
which can be extended for an additional 10 years at our
option.</font></div>
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</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
September 20 and October 16, 2017, we closed on the first and
second tranches, respectively, of a non-brokered private placement,
pursuant to which we issued a total of the equivalents of 7,845,460
units and 11,397,110 special warrants each, at a price of the
equivalent of $0.35 per unit or special warrant. Each unit
consisted of one common share and one-half of one share purchase
warrant. Each whole warrant entitles the holder thereof to acquire
one common share at a price equivalent of $0.40 and is exercisable
for a period of three years from the date of issuance. Each Special
Warrant was to be exercisable for one unit at no additional cost to
the holder provided TSX and shareholder approval for the issuance
was obtained within a specified time. On December 18, 2017, all the
special warrants were converted into units, with each such unit
comprised of one common share and one-half of one share purchase
warrant. Each such whole warrant entitled the holder thereof to
acquire one common share at a price equivalent of $0.40 for a
period of three years from the date of issuance.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 5, 2017, we announced we had significantly expanded the
land position at our Gibellini Project by staking 198 new claims
immediately adjacent to the Gibellini Project covering 4091 acres
sufficient to enable future vanadium mining, processing and
extraction.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
common shares are listed for trading on the TSX under the symbol
&#x201C;PCY&#x201D;, the OTCQX under the symbol &#x201C;PRPCF&#x201D;
and the Frankfurt Stock Exchange under the symbol
&#x201C;1P2N&#x201D;.</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: 8px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2018</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 15, 2018, we acquired an additional 105 unpatented lode
mining claims located adjacent to our existing Gibellini Project,
through the acquisition of 1104002 B.C. Ltd. and its Nevada
subsidiary, by paying a total of $335,661 in cash, settling $14,338
in debt and issuing the equivalent of 500,000 share purchase
warrants to arm&#x2019;s-length, private parties.</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
February 27, 2018, we re-listed our common shares on the OTCQX,
which began trading again under the symbol
&#x201C;PRPCF&#x201D;.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 23, 2018, we announced an amendment to the Gibellini mineral
lease agreement dated June 22, 2017, whereby we were granted the
option to cause the Gibellini Lessor to transfer title to
substantially all of the Gibellini mining claims to us in exchange
for US$1,000,000, to be paid as an advance royalty
payment.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 14, 2018, we closed the Company&#x2019;s non-brokered private
placement for gross proceeds of $1,137,197 through the issuance of
4,061,417 units of the Company. Each unit is comprised of one
common share of the Company and one common share purchase warrant.
Each warrant entitles the holder to purchase one additional common
share of the Company at an exercise price of $0.40 for a period of
three years from the closing of the first tranche of the
placement.</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
August 8, 2018, we completed the Forward 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
August 20, 2018, the Company secured water supply for the Gibellini
Project&#x2019;s construction and operation. The Company signed a
10-year water lease agreement (the &#x201C;<font style="font-weight: bold">Agreement</font>&#x201D;) with the owner of a
private ranch, located approximately 14.5 km from the Gibellini
Project. The Agreement can be extended for any number of additional
7-year terms, not to exceed (with the primary term) a total of 99
years. Per the terms of the Agreement, the lessor has granted to
the Company the rights to 805 acre-feet (approximately 262.4
million gallons) of water per year for the Gibellini Project, at a
minimum flow rate of 500 gallons per minute from its year-round
springs surface water stream.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 2, 2018, the Company signed a Memorandum of Agreement for
voluntary cost recovery with the Bureau of Land Management Battle
Mountain District office (who we refer to as &#x201C;BLM&#x201D;) to
expedite Gibellini Project permitting efforts. The Company and the
BLM agreed in principal to a fixed cost structure that will have
the Company reimburse the BLM for the cost of all anticipated work
for the BLM to complete its review of the Company&#x2019;s
submission of mine plan of operations and any updates to existing
baseline studies.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
November 22, 2018, we closed a bought deal financing previously
announced on November 1, 2018, which raised gross proceeds of
$5,520,000. The Company entered into an agreement with BMO Nesbitt
Burns Inc. (&#x201C;BMO&#x201D;), under which BMO agreed to buy on a
bought deal basis 12,000,000 Shares, at a price of $0.46 per Share.
The Shares were offered by way of a short form prospectus in each
of the provinces and territories of Canada, except Qu&#xE9;bec. The
Company incurred $560,576 in common share issuance
costs</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: 15px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 18, 2018, the Company announced that it selected M3
Engineering &amp; Technology Corporation to provide engineering,
procurement, construction and management services for its Gibellini
Project in response to its Request for Proposal issued on August
15, 2018.</font></div>
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<div style="text-align: justify; margin-left: 12px; margin-right: 8px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2019</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 name="_Hlk32234008"><!--anchor--></a>On February 14, 2019, the
Company announced that it had retained Amec Foster Wheeler E&amp;C
Services Inc. (Wood) to undertake updating of the mineral resource
and mining section for the Company&#x2019;s upcoming feasibility
study (&#x201C;FS&#x201D;) to be completed to the standards of NI
43-101 of its Gibellini Project.</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">On
March 18, 2019 the Company announced that the Ulaan Ovoo Property
had started up. The Company also reported that it had executed a
lease agreement with an arms-length private Mongolian company (the
&#x201C;Lessee&#x201D;) whereby the Lessee performs mining operations
at the Company&#x2019;s Ulaan Ovoo Property, and will pay the
Company $2 (the &#x201C;Production Royalty&#x201D;) for every tonne
of coal shipped from the Ulaan Ovoo site premises. The Lessee is
responsible for all capital and operating expenses, government
taxes and royalties related to Ulaan Ovoo operation.</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">On
March 26, 2019 the Company announced its vanadium assay results
from its fall 2018 exploration reconnaissance program on the
Gibellini Project. There were 155 assays taken from three
prospective exploration areas which all were within 5 km to the
existing Gibellini vanadium NI 43-101 compliant resource
pit.</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"><font style="background-color: #FFFFFF">On May 1, 2019 the Company announced
that it had received guidance regarding expected permitting
timelines following the Company meeting with regulators in late
April 2019. The Company estimated Q1 2020 as the target date for
publication of the Notice of Intent (&#x201C;NOI&#x201D;) to prepare
an Environment Impact Statement (&#x201C;EIS&#x201D;) in the Federal
Register. Upon publication of the NOI the review process is
mandated to be completed within a 12-month period</font> under the
US Department of the Interior&#x2019;s Secretarial Order No. 3355.
<font style="background-color: #FFFFFF">Based on this guidance, an
EIS Record of Decision (&#x201C;ROD&#x201D;) would be expected no
later than Q1 2021. Upon receipt of a positive ROD and issuance of
Nevada State permits, the Company plans to start mine construction
in 2021 and begin vanadium production by Q4
2022.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On May
27, 2019 the Company announced<font style="font-weight: bold">&#xA0;</font>that its Annual General Meeting
(&#x201C;AGM&#x201D;) had been scheduled for September 12, 2019. Due
to some recent changes in the Company&#x2019;s Management, the AGM
was delayed from being held within six months of its year end. TSX
approval had been obtained to delay the Company&#x2019;s AGM to
September 12, 2019.</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-family: Times New Roman; font-size: 13px">On June
19, 2019, the Company announced the appointment of a third party
NEPA contractor and SWCA Environmental Consultants to work under
the direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company, to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record. The <font style="color: #000000">EIS was prepared pursuant to Secretarial Order
3355 in the Federal Register to BLM.</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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">On
July 8, 2019 the Company announced that it had submitted its
updated Plan of Operations (the &#x201C;POO&#x201D;) through the
Company&#x2019;s U.S. subsidiary for the Gibellini Project to the
BLM and the Reclamation Permit Application to the Nevada Division
of Environmental Protection, Bureau of Mining Regulation and
Reclamation (the &#x201C;BMRR&#x201D;). The POO was submitted on
schedule and prepared under budget. The POO submission is the last
major step before the publication of the NOI which will initiate
the EIS process under the Secretary of Interior Order No. 3355
(Streamlining National Environmental Policy Reviews and
Implementation of Executive Order 13807; see Company&#x2019;s news
release dated March 28, 2018 filed on SEDAR). The streamlined EIS
process from NOI to the ROD is 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company further announced that a positive resolution was issued
from the Mongolia city tax tribunal regarding the Company&#x2019;s
VAT dispute with the Mongolia tax office. The resolution, which is
binding and final, affirmed the Company&#x2019;s outstanding VAT
credit of 1.169 billion MNT (USD$439,470 based on today&#x2019;s
exchange rate of 2,660 MNT to 1 USD$) which resulted from past
mining equipment purchases. The VAT credit can be used to offset
the Company&#x2019;s taxes and royalty payments; or be refunded in
cash by Mongolia&#x2019;s Ministry of Finance within 12 to 24 months
processing time. In addition, the Company also reported that it had
successfully converted its Chandgana Khavtgai coal exploration
license to a mining license in central Mongolia.</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">On July
19, 2019, the Company announced its objectives for the second half
of 2019 for its Gibellini Project. The Company plans <font style="color: #000000">to submit the key Nevada state permit applications
required for project construction by the end of the third quarter
of 2019 (Completed). It is anticipated that all approvals will be
received by first quarter of 2021.</font></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 July
29, 2019, the Company the Company granted in aggregate 1,685,000
incentive stock options to its directors, officer and employees of
the Company. The options are exercisable at a price of $0.20 per
common share for a term of five years expiring on November 1, 2024
and vest at 12.5% per quarter for the first two years following the
date of grant.</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">On
August 19, 2019 the Company announced the formation of two wholly
owned Canadian BC subsidiaries: Silver Elephant Mining Corp. and
Asia Mining Inc. in order to facilitate potential future spinoffs
of the Company&#x2019;s wholly owned Bolivian silver operation and
Mongolian coal operation.</font></div>
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<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">On
August 26, 2019 the Company announced that it was undertaking a
non-brokered private placement involving the issuance of 13 million
common shares at a price of $0.20 per share to raise aggregate
gross proceeds of $2,600,000 (the &#x201C;Aug. 26, 2019 Private
Placement&#x201D;). The Company&#x2019;s management and directors
subscribed to 2 million common shares in the Aug. 26, 2019 Private
Placement. These common shares were subject, under applicable
Canadian securities laws, to a minimum hold period of four months
plus one day from the date of issue.</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">On
September 6, 2019, the Company closed the Aug. 26, 2019 Private
Placement. The Placement raised gross cash proceeds of $2,600,000
through the issuance of 13,000,000 common shares of the Company at
a price of $0.20 per share. The Company paid $10,000 in cash and
issued 525,000 shares as finder&#x2019;s fees. Proceeds of the Aug.
26, 2019 Private Placement are to be used to develop the
Company&#x2019;s mineral projects and for general working capital
purposes.</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">On
September 24, 2019 the Company announced the successful completion
of its internal reorganization. The Company further announced,
subject to approval by the TSX, that it would issue 175,000 common
shares, with a four-month hold period under applicable Canadian
securities laws, to Mr. Bryan Slusarchuk in exchange for consulting
services to 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-family: Times New Roman; font-size: 13px">On
September 30, 2019, the Company announced a 5,000-meter diamond
drilling at its Pulacayo Project had started with first set of
assay results expected in early November, 2019.</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">On
October 3, 2019, the Pulacayo Mining Production Contract
(&#x201C;MPC&#x201D;) was executed between the Company and the
Corporaci&#xF3;n Minera de Bolivia (&#x201C;COMIBOL&#x201D;), a
branch of the Bolivian Ministry of Mining and Metallurgy.
Notification of the final government resolution approving the MPC
was received on September 27, 2019. The MPC granted the Company the
100% exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years, which is comparable to a mining
license in Canada or the United States. The Company&#x2019;s
Bolivian subsidiaries had spent $25 million on Pulacayo and Paca as
of October 3, 2019 with over 80,000 meters of drilling, with a
completed historic independent FS study, and an approved detailed
environment impact assessment (&#x201C;DEIA&#x201D;).</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">On
October 7, 2019, the Company announced that it was undertaking a
non-brokered private placement involving the issuance of 10 million
common shares at a price of $0.40 per share (the &#x201C;Oct. 7,
2019 Private Placement&#x201D;) to raise aggregate gross proceeds of
$4,000,000.</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
October 9, 2019, the Company issued 104,951 common shares at a
value of $43,060 to its directors to settle outstanding director
fees.</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">On
October 21, 2019, the Company announced that it has closed the Oct.
7, 2019 Private Placement. The Oct. 7, 2019 Private Placement
raised gross cash proceeds of $3,900,000 for Company through the
issuance of 9,750,000 common shares of the Company at a price of
$0.40&#xA0;per share. Mr. Eric Sprott, through 2176423 Ontario
Ltd., a corporation that is beneficially owned by him, acquired
5,000,000 shares under the Oct. 7, 2019 Private Placement for a
total consideration of $2,000,000. Following the completion of the
private placement, Mr. Sprott&#x2019;s holdings represented 9% of
the issued and outstanding common shares of the Company at the time
the Oct. 7, 2019 Private Placement. Mr. Sprott beneficially owned
5,9000,000 common shares in the Company prior to this investment.
The Company&#x2019;s management and directors purchased 0.4 million
common shares for proceeds of $160,000. The Company issued 654,500
common shares as finder&#x2019;s fees to Mackie Research Capital
Corp. All shares issued in the Oct. 7, 2019 Private Placement were
subject to a four month and one day hold period under applicable
Canadian securities laws. Proceeds are to be used for the
Company&#x2019;s mineral project development and for general working
capital purposes.</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">On
October 28, 2019, the Company announced the diamond drilling
results from the Company&#x2019;s 100% controlled Paca silver
project in the Potosi department of Bolivia</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 1, 2019, the Company granted in aggregate 1,680,000
incentive stock options to its directors, officer and employees of
the Company. The options are exercisable at a price of $0.44 per
common share for a term of five years expiring on November 1, 2024
and vest at 12.5% per quarter for the first two years following the
date of grant.</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">On
November 7, 2019, the Company <font style="font-weight: bold">a</font>nnounced that it had submitted, through
its wholly owned US subsidiary Nevada Vanadium, LLC (&#x201C;Nevada
Vanadium&#x201D;), the applications and Engineering Design Reports
for the primary mining permits that govern project construction,
operations and closure for its Gibellini Project located in Eureka
County, Nevada, U.S., to BLM and the Gibellini Project EIS
contractor SWCA Environmental Consultants. The permit applications
were submitted on October 31, 2019 for the Water Pollution Control
Permit and the Class II Air Quality Permit. These Nevada state
permits have been developed to provide construction level
engineering that supports the mine plan previously submitted to the
BLM in the POO. Comments received from both the BLM and SWCA were
used as guidance in the engineering design to ensure the State and
Federal Permits are aligned and reflect the most current guidance
provided by both the Company and Nevada Vanadium
LLC.(&#x201C;NDEP&#x201D;) and BLM.</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">On
December 4, 2019, the Company announced that it had received on
November 18, 2019, the 18-page Resolution No. 195/2018 issued by
the Supreme Court of Bolivia (the &#x201C;2019 Resolution&#x201D;),
signed by all of its nine judges. It declared that the contentious
tax claim of US$6,556,787 (US$816,769.54 income tax on alleged 2003
profits and US$5,740,017.81 in interests and penalties) brought by
Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary was not proven. The 2019
Resolution is final and binding. Hence neither the Company nor the
Company's Bolivian subsidiaries owe any outstanding back taxes to
the Bolivian General Revenue Authority.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">24</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 18, 2019, the Company <font style="color: #000000; background-color: #FFFFFF">announced that the
phase two drilling had commenced at the Pulacayo Project. It is a
5,000-meter program that will consist mainly of wide step-out
drilling up to 1.5km west (Western Block) of the current 43-101
Pulacayo resource. That current Pulacayo resource covers 1.4 km in
strike and represents only a small portion of the Tajo vein system
(the &#x201C;TVS&#x201D;) which is over 3 km in strike and open to
least 1,000 meters at depth, according to historical records of
underground mining</font><font style="background-color: #FFFFFF">.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company experienced various
changes in Directors, Officers and Management of the Company as
follows:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<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">Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">John Lee ceased to
act as Head of International Affairs on February 15,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Louis Dionne ceased
to be a Director on February 28, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Marc Leduc was
appointed as a Director on July 22, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Ronald Clayton was
appointed as a Director on November 4, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019;</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Subsequent Events to December 31, 2019</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 8, 2020, the Company announced the following:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 17px">
<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">a special meeting
(the &#x201C;Special Meeting&#x201D;) of the shareholders to be held
on March 16, 2020 to seek shareholder approval the
following:</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 72px">
<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">changing the name
of Prophecy Development Corp. to Silver Elephant Mining Corp. (the
"Name Change");</font></div>
</div>
</div>
<div style="display: table; margin-left: 72px">
<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">to consolidate the
Company&#x2019;s issued and outstanding common shares at a ratio
between one (1) new common share for every five (5) to ten (10)
issued and outstanding common shares (the &#x201C;2020
Consolidation&#x201D;).</font></div>
</div>
</div>
<div style="display: table; margin-left: 72px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-size: 13px">&#x25CF;&#xA0;</font></div>
</div>
</div>
<div style="display: table; margin-left: 72px">
<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">proposed new symbol
of &#x201C;ELEF&#x201D; for the trading of the Company&#x2019;s common
shares on the TSX; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 72px">
<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">ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company&#x2019;s 20% fixed share-based
compensation plan, as amended (the &#x201C;Share-Based Compensation
Plan&#x201D;).</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 19px">
<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 engagement of
Ken Cotiamco to provide investor relations and shareholder
communications services effective January 6, 2020. The Company
further announced that Ken Cotiamco entered into a consulting
agreement whereby Ken Cotiamco would receive from the Company
remuneration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
per common share for a term of five years expiring on January 6,
2025;</font></div>
</div>
</div>
<div style="display: table; margin-left: 19px">
<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">pursuant to the
Company&#x2019;s Share-Based Compensation Plan, the issuance of an
aggregate of 1,601,000 common shares (subject to a minimum hold
period of four months plus one date from the date of issuance,
under applicable Canadian securities laws) as 2019 bonus payments
to certain directors, officers, employees and consultants of the
Company;</font></div>
</div>
</div>
<div style="display: table; margin-left: 19px">
<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">that further to the
Company&#x2019;s news release dated December 18, 2019, the Company
had completed the first of 3 holes of the planned 17 drill holes at
the Pulacayo Project; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 19px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the Company had
mobilized a second drilling rig to the Pulacayo Project and expects
to complete the proposed 5,000 meter drill program in February 2020
with full assay results by March 2020On January 21, 2020, the
Company provided its <font style="color: #000000">first step-out
diamond drilling results from its 100%-controlled Pulacayo
Project.</font></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>
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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">25</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">
<br>
</div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">On
March 6, 2020, the Company provided its 2,598-meter, 16-hole
Pulacayo step out drill program from its 100%-controlled Pulacayo
Project.</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="color: #000000; font-family: Times New Roman; font-size: 13px">On
March 9, 2020, the Company commenced its district exploration
program at its Pulacayo Project.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 16, 2020, the company held its Special Meeting of
Shareholders. The Company received shareholder approval of the
following:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">changing its name
of Prophecy Development Corp. to Silver Elephant Mining
Corp.;</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the 2020
Consolidation; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company&#x2019;s Share-Based
Compensation Plan.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 16, 2020, the Company amended its articles of incorporation
(the &#x201C;Articles&#x201D;) and changed its name to &#x201C;Silver
Elephant Mining Corp.&#x201D;</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
March 19, 2020, the Company changed its&#x2019; symbol on the TSX
from PCY to &#x201C;ELEF&#x201D;.</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
March 23, 2020, the Company changed its&#x2019; symbol on the OTCQX
from PRPCF to &#x201C;SILEF&#x201D;.</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="color: #000000; font-family: Times New Roman; font-size: 13px">In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company&#x2019;s business or results of
operations at this time.</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 has not made any capital divestitures during the past three
fiscal years.</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 made no capital divestitures during the past three fiscal
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Currently, we do
not have operating revenues, and we do not anticipate generating
operating revenues during the fiscal year 2020. Our primary source
of funds since inception has been through the issuance of equity
securities. At December 31, 2019, the Company had cash flow of $3
million (2018 - $5.3 million; 2017 - $4.1 million) representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company&#x2019;s working capital at December 31, 2019 was
a surplus of $ 0.95 million (2018 - $3.8 million; 2017 - $2.6
million). We will continue to seek capital through the issuance of
equity, strategic alliances or joint ventures, and debt, of which
the Company currently has none.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The SEC
maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers
that file electronically with the SEC at: <font style="text-decoration: underline">http://www.sec.gov</font>. The
Company&#x2019;s Internet address is <font style="text-decoration: underline">https://www.silverelef.com</font>.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Business
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
an exploration stage company focusing on mining and energy projects
in the United States, Canada, Bolivia and Mongolia. We are involved
in two vanadium projects in North America including the Gibellini
Project which is comprised of the Gibellini and Louie Hill vanadium
deposits and associated claims located in the State of Nevada, in
the United States and the Titan vanadium-titanium-iron project
comprised of the Titan vanadium-titanium-iron deposit and related
claims located in the Province of Ontario, Canada. We also own a
100% interest in the Pulacayo Project, a silver-lead-zinc property
located in Bolivia. We also own a 100% interest in three coal
properties in Mongolia: the Ulaan Ovoo Property, the Khavtgai Uul
coal property located in Khentii province, Mongolia
(&#x201C;Khavtgai Uul Property&#x201D;) and the Chandgana Tal
Property, in addition to the land use right and construction
license for the Chandgana Project. We do not currently consider our
properties in Canada, Bolivia or Mongolia to be material
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
principal business is the acquisition, exploration and development
of mineral and energy projects. Our business strategy focus is to
make our Gibellini Project the first operating primary vanadium
mine in North America, offering the best quality vanadium pentoxide
product that exceeds customer requirements in a variety of
high-tech applications such as batteries and aerospace. We are also
considering development of our Titan Project and the acquisition of
other vanadium resources to augment Gibellini and position us as a
major producer of vanadium.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
vanadium resources are part of a portfolio of projects we are
building that, through their diversity of locations, commodities
and products, reduces our exposure to adverse regulation and
political climates and changes in specific commodity prices. A
diverse portfolio of projects from which a variety of minerals are
mined and sold provides multiple opportunities to maintain revenue
and is one facet of our efforts to attain our ultimate objective of
stable positive cash flow.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All of
the properties in which we hold an interest are considered to be in
the exploration stage only and do not contain a known body of
commercial minerals. As of the date of this Annual Report, we have
not commenced production at any of our properties, other than Ulaan
Ovoo Property.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Principal Products, Markets and Marketing</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At the
moment, we are not in production and we do not produce any products
or minerals. Based on the projects that we are developing, our
possible future products may include, but will not be limited to,
raw thermal coal, zinc-silver concentrate, lead-silver concentrate
and vanadium pentoxide product.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
working to bring Gibellini into production as soon as possible in
order to address the supply-demand gap for vanadium projected to
2020. The projected demand is largely driven by
environmental-related actions by the Chinese government which is
intensified by increasing demand for vanadium redox flow storage
batteries. The supply-demand gap will affect all uses of vanadium
including steel manufacture, high tech applications and large
capacity vanadium redox flow batteries.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
marketing efforts have mostly been in assessing the reasons and
sources of demand, but we have also conducted concept-level
negotiations for supplying Gibellini vanadium to traders and
battery manufacturers. As the Gibellini Project develops and more
reliable information concerning timing, volume and quality become
available, we will increase our marketing efforts. We will be
primarily competing with other mining projects that produce raw
thermal coal, zinc-silver concentrate, lead-silver concentrate and
vanadium pentoxide. Our possible principle markets for vanadium
pentoxide product may be Europe and/or China. Below are the 3-year
historical industry pricing charts, USD$ per lb., for the vanadium
pentoxide flake, minimum 98% vanadium pentoxide content, delivered
in China and Europe.</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-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">27</font></div>
</div>
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<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">&#xA0;</font></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: 7px; text-indent: 0px"><img src="silef_20-f000.jpg"></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">International
mineral commodity pricing is generally established in US dollars
and the competitive positioning between producers can be
significantly affected by fluctuations in exchange rates. The
competitiveness of mineral producers is significantly determined by
the grade or quality of the deposit, production costs and
transportation costs relative to other producers. Such costs are
largely influenced by the location and nature of mineral deposits,
mining and processing costs, transportation and port costs,
currency exchange rates, operating and management skills, and
differing taxation systems between countries.</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">28</font></div>
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</div>
</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: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Seasonality</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
mining business is subject to mineral commodities price cycles. If
the global economy stalls and commodity prices decline, as a
consequence, a continuing period of lower prices could
significantly affect the economic potential of our properties and
result in us determining to cease work on or drop our interest in,
some or all of our properties.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Sources and Availability of Raw Materials</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">All of
the raw materials we require to carry on our business are available
through normal supply or business contracting
channels.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Economic Dependence</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">Our
business is not substantially dependent on any one contract such as
a property option agreement or a contract to sell the major part of
our output.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Government 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
exploration and future development activities are subject to
various national, state, provincial and local laws and regulations
in the Unites States, Bolivia, Canada and Mongolia, which govern
prospecting, development, mining, production, exports, taxes, labor
standards, occupational health, waste disposal, protection of the
environment, mine safety, hazardous substances and other
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mining
and exploration activities at our properties in North America are
subject to various laws and regulations relating to the protection
of the environment, such as the General Mining Law, U.S. federal
Clean Water Act and the Nevada Water Pollution Control Law, both of
which we discuss under the heading &#x201C;<font style="font-style: italic">Risk Factors</font>&#x201D; in this Annual
Report. Although, we intend to comply with all existing
environmental and mining laws and regulations, no assurance can be
given that we will be in compliance with all applicable regulations
or that new rules and regulations will not be enacted or that
existing rules and regulations will not be applied in a manner that
could limit or curtail development of our properties. Amendments to
current laws and regulations governing exploration and development
or more stringent implementation thereof could have a material
adverse effect on our business and cause increases in exploration
expenses or require delays or abandonment in the development of
mining properties. In addition, we are required to expend
significant resources to comply with numerous corporate governance
and disclosure regulations and requirements adopted by U.S. federal
and Canadian federal and provincial governments. These additional
compliance costs and related diversion of the attention of
management and key personnel could have a material adverse effect
on our business.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as described in this Annual Report, we believe that we are in
compliance in all material respects with applicable mining, health,
safety and environmental statutes and 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For a
more detailed discussion of the various government laws and
regulations in the United States applicable to our operations and
the potential negative effects of such laws and regulations, see
the section &#x201C;<font style="font-style: italic">Item 3.D. Risk
Factors</font>.&#x201D;</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">29</font></div>
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</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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Organizational
Structure</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">The
chart below illustrates the inter-corporate relationships among us
and our subsidiaries, the percentage of voting securities of such
subsidiaries owned by us, and each subsidiary&#x2019;s jurisdiction
of incorporation as of the date of this Annual Report.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center"><img src="silef_20-f001.jpg"></div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 96px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; 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: 85px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(1)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">On March 16, 2020,
Prophecy Development Corp. changed its name to Silver Elephant
Mining Corp.</font></div>
</div>
</div>
<div style="display: table; margin-left: 85px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(2)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">On June 14, 2019,
Vanadium Gibellini Company LLC. changed its name to Nevada Vanadium
LLC.</font></div>
</div>
</div>
<div style="display: table; margin-left: 85px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(3)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">On December 17,
2019, the Company completed an internal reorganization by
transferring ASC Holdings Limited (Cayman) from the Company to its
Silver Elephant Mining Corp. subsidiary.</font></div>
</div>
</div>
<div style="display: table; margin-left: 85px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(4)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">On January 6, 2020,
the Company&#x2019;s Silver Elephant Mining Corp. subsidiary changed
its name to Illumina Silver Mining Corp.</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">We hold
mining and energy properties and projects through the following
subsidiaries:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 29%; border-bottom: 2px solid rgb(0, 0, 0);">
<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: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Subsidiary</font></font></div>
</td>
<td style="vertical-align: bottom; width: 71%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Mining
Properties and Projects</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Nevada
Vanadium LLC.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
(formerly &#x201C;Vanadium Gibellini Company
LLC.&#x201D;)</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;Has
claimed 209 lode mining claims that comprise a portion of the
Gibellini Project in Nevada, including three of the 17 claims that
comprise the expanded Louie Hill group of claims.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">VC
Exploration (US) Inc.</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;100%
interest in 105 unpatented lode mining claims that comprise a
portion of the Gibellini Project in Nevada, USA.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">912601
B.C. Ltd.</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;100%
interest in the Titan vanadium-titanium-iron property located in
the Province of Ontario, Canada.</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Red
Hill Mongolia LLC</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;100%
interest in the Ulaan Ovoo Property located in Selenge province,
Mongolia.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 29%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Chandgana Coal
LLC</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;100%
interest in the Chandgana Tal coal property (the &#x201C;Chandgana
Tal Property&#x201D;) and Khavtgai Uul Property located in Khentii
province, Mongolia. We refer to the Chandgana Tal Property and the
Khavtgai Uul Property collectively as the &#x201C;Chandgana
Project.&#x201D;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Prophecy Power
Generation LLC</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;Holds
the land use right and construction license for the Chandgana
Project planned in Khentii province, Mongolia.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 29%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">ASC
Bolivia LDC Sucursal Bolivia</font></div>
</td>
<td style="vertical-align: top; width: 71%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;&#xA0;Holds
the mining joint venture interest in the Pulacayo
Project.</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">Additionally, we
hold, through lease, the 40 unpatented lode mining claims that make
up the Gibellini group of claims.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Property,
Plants and Equipment</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-style: italic; font-family: Times New Roman; font-size: 13px">
General</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">Currently, we
consider only the Gibellini Project to be material. We do not
currently consider the Titan Project or any of our Bolivian or
Mongolian properties to be material.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Portions of the
following excerpts are based on the assumptions, qualifications and
procedures set forth in the respective technical reports which,
while not fully described herein, have been filed on SEDAR
(available at <font style="text-decoration: underline; color: #0000FF">www.sedar.ca</font>)
and EDGAR (<font style="text-decoration: underline; color: #0000FF">www.sec.gov</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Please
refer to the discussion under the heading &#x201C;Cautionary Note
Regarding Forward-Looking Statements&#x201D; at the beginning of
this Annual Report for important information concerning certain
mining terms and descriptions of our mineral deposits used or
contained in this section.</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">30</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: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">GIBELLINI
PROJECT</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
scientific and technical information in this section of the Annual
Report relating to the Gibellini Project has been extracted or
summarized from the technical report titled &#x201C;Gibellini
Vanadium Project, Eureka County, Nevada, NI 43-101 Technical Report
on Preliminary Economic Assessment&#x201D; with an effective date of
May 29, 2018 (the &#x201C;Gibellini Technical Report&#x201D;). The
Gibellini Technical Report was prepared by Kirk Hanson, P.E.,
Edward J.C. Orbock III, RM SME, Edwin Peralta, P.E., and Lynton
Gormely, P.Eng., all of Amec Foster Wheeler E&amp;C Services Inc.
(&#x201C;AMEC&#x201D;).</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini Project discussion below includes the Gibellini and Louie
Hill vanadium deposits, claims leased by us and claims held by our
subsidiaries Nevada Vanadium, LLC. (formerly &#x201C;Vanadium
Gibellini Company LLC&#x201D;) and VC Exploration (US), Inc. located
in the state of Nevada, USA.</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">Project
Location</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini project includes the Gibellini group of claims leased by
the Company, the VC Exploration (US) Inc. group of claims and the
Nevada Vanadiumgroup of claims (the &#x201C;Gibellini
Project&#x201D;)]. Figure 1 below shows the location of the claims.
On June 22, 2017, the Company acquired (through lease) the
Gibellini group of claims which is located in Eureka County,
Nevada, Unites States of America about 25 miles south of the town
of Eureka. The Gibellini group of claims is comprised of 40
unpatented lode claims totaling approximately 771 acres. Under the
mineral lease agreement, we leased the mining claims by committing
to pay to the Gibellini Lessors, annual advance royalty payments
which will be tied, based on an agreed formula (not to exceed
USD$120,000 per year), to the average vanadium pentoxide price of
the prior year. Upon commencement of production, we will maintain
our acquisition through lease of the Gibellini mining claims by
paying to the Gibellini Lessors, a 2.5% NSR until a total of USD$3
million is paid. Thereafter, the NSR will be reduced to 2% over the
remaining life of the mine (and referred to thereafter, as
&#x201C;production royalty payments&#x201D;). All advance royalty
payments made, will be deducted as credits against future
production royalty payments.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
lease is for a term of 10 years, which can be extended for an
additional 10 years at our option. On April 23, 2018, we amended
the mineral lease agreement to provide us with an option at any
time during the term of the mineral lease agreement, to require the
Gibellini Lessor to transfer her title over all of the leased
Gibellini mining claims (excluding four claims which will be
retained by the Gibellini Lessor and which contain minimal
resource) to us in exchange for USD$1,000,000, to be paid as an
advance royalty payment (the &#x201C;Transfer Payment&#x201D;). We
were credited with USD$99,027 towards the Transfer Payment upon
signing of the amendment, and the remaining USD$900,973 portion of
the Transfer Payment will be due and payable by us to the Gibellini
Lessor upon completion of the transfer of the aforementioned claims
from the Gibellini Lessor to us. The advance royalty obligation and
production royalty payments will not be affected, reduced or
relieved by the transfer of title. The Gibellini group of claims
were previously leased to American Vanadium US Inc., which lease
expired on February 29, 2016.</font></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: 7px; text-indent: 0px"><img src="silef_20-f002.jpg"></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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-family: Times New Roman; font-size: 13px">
FIGURE 1</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">31</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On July
13, 2017, we acquired (through lease) 10 unpatented lode claims
totaling approximately 207 gross acres that formerly comprised the
Louie Hill group of claims located approximately 500 meters south
of the Gibellini group of claims. These claims were subsequently
abandoned by the holders, and on March 11, 2018 and March 12, 2018,
the Company&#x2019;s wholly owned US subsidiaries, Nevada Vanadium
and VC Exploration (US) Inc., staked the area within and under 17
new claims totaling approximately 340 gross acres which now
collectively comprise the expanded Louie Hill group of claims. We
believe opportunities exist to further expand the project beyond
its current definition.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
December 5, 2017, we expanded the land position at the Gibellini
Project, by staking a total of 198 new claims immediately adjacent
to the Gibellini Project covering 4091 acres that are sufficient to
enable future vanadium mining, processing and
extraction.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 22, 2018, the Company entered into a royalty agreement (the
&#x201C;Royalty Agreement&#x201D;) with the Former Louie Hill Lessors
to replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company&#x2019;s subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Upon
commencement of production, the Company will pay to the Former
Louie Hill Lessors, a 2.5% NSR of which, 1.5% of the NSR may be
purchased at any time by the Company for USD$1 million, leaving the
total NSR to be reduced to 1% over the remaining life of the mine
(and referred to thereafter, as &#x201C;Production Royalty
Payments&#x201D;). All advance royalty payments made, will be
deducted as credits against future Production Royalty Payments. The
Royalty Agreement shall be for an indefinite period and shall be
valid and in full force and effect for as long as the Company, its
subsidiaries, or any of their permitted successors or assigns holds
a valid and enforceable mining concession over the
area.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
expanded Louie Hill group of claims is located in the same
formation and lithologic units as the Gibellini group of claims.
The general geology in this area is considered to be similar to the
Gibellini group of claims.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The VC
Exploration group of claims include 105 lode claims that were
acquired indirectly by the Company through the indirect acquisition
of VC Exploration (US), Inc. in early 2018. The Gibellini group of
claims consist of 209 lode claims staked by Nevada Vanadium in late
2017 and early 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"><font style="background-color: #FFFFFF">The Gibellini Project consists of a
total of 354 unpatented lode mining claims that include: the
Gibellini group of 40 claims, the VC Exploration group of 105
claims, and the Company group of 209 claims. The Gibellini group of
claims is referred to by the Company as a &#x201C;project&#x201D;.
All the claims are</font> located in Eureka County, Nevada,
approximately 25 miles south of the town of Eureka and are easily
accessed from US Highway 50 to a paved road that becomes a graded,
gravel road.</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
Gibellini Project is without known reserves and is exploratory in
nature.</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">History</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Work
completed on the Gibellini Project prior to our involvement was
undertaken by a number of companies, including the Nevada Bureau of
Mines and Geology (NBMG, 1946), Terteling &amp; Sons
(1964&#x2013;1965), Atlas and TransWorld Resources (1969), Noranda
(1972&#x2013;1975), and Inter-Globe (1989). Rocky Mountain Resources
(RMP), later renamed to American Vanadium, conducted work from
2006&#x2013;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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Nevada Bureau of Mines and Geology completed four core holes in
1946. Work in the period 1964&#x2013;1989 comprised rotary drilling,
trenching, mapping, metallurgical testing, and mineral resource
estimation. From 2006 to 2011, work programs included review of
existing data, geological mapping, an XRF survey, reverse
circulation (RC) and core drilling, additional metallurgical test
work, and Mineral Resource estimation. A preliminary assessment was
completed in 2008 and a FS was commissioned in late 2010. Both
studies were based on the Gibellini deposit and did not include the
Louie Hill deposit. We do not consider these studies to be current
and are considered historic under the guidelines of NI
43-101.</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">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">On May
29, 2018, we received the Gibellini Technical Report providing an
updated the resource on the Gibellini Project.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">32</font></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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Gibellini 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini Technical Report disclosed an estimated 7.94 million tons
at a weighted average grade of 0.314% vanadium pentoxide
(V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>) in the Measured
category and 15.02 million tons at a weighted average grade of
0.271% V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font> in the Indicated
category leading to a total combined Measured and Indicated Mineral
Resource of 22.95 million tons at a weighted average grade of
0.286% V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>. Total contained
metal content of the Measured and Indicated Mineral Resources is
131.34 million pounds V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>. The Inferred
Mineral Resource estimate is 14.97 million tons at a weighted
average grade of 0.175% V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>. The total
contained metal content of the Inferred Mineral Resource estimate
is 52.30 million pounds V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>. The table below
contains a summary of the Gibellini deposit resource
estimate:</font></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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Confidence
Category</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:26%;">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px; border-bottom: 2px solid rgb(0, 0, 0);"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Domain</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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Cut-offV<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font>
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Tons(Mt)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;"><font style="font-weight:bold;">GradeV</font><font style="vertical-align:bottom;font-weight:bold;font-size:70%;">2</font><font style="font-weight:bold;">O</font><font style="vertical-align:bottom;font-weight:bold;font-size:70%;">5</font>(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">ContainedV<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font>
(Mlb)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Measured</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Oxide</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;">0.101</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;">3.96</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;">0.251</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;">19.87</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:26%;"><br></td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Transition</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;">0.086</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;">3.98</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;">0.377</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;">29.98</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:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Indicated</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Oxide</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;">0.101</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;">7.83</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;">0.222</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;">34.76</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:26%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Transition</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;">0.086</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;">7.19</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;">0.325</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;">46.73</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:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Total Measured and Indicated</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">22.95</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;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;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">0.286</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;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;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">131.34</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0; </font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Oxide</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;">0.101</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;">0.16</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;">0.170</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: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;">0.55</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:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Inferred</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Transition</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;">0.086</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;">0.01</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;">0.180</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;">0.03</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:26%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: right; text-indent:0px;margin-right:6px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Reduced</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;">0.116</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;">14.80</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;">0.175</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;">51.72</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:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Total Inferred</font></font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">14.97</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;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;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">0.175</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;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;font-style:italic;display:inline-block;font-weight:bold;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;width:75%;font-size:13px;">52.30</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-style:italic;display:inline-block;font-weight:bold;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: 36px; margin-right: 86px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Notes to accompany Mineral Resource table for
Gibellini</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
1.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME. The Mineral Resources have an effective date of May 29,
2018.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
2.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources are reported at various cut-off grades for oxide,
transition, and reduced material.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
4.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources are reported within a conceptual pit shell that
uses the following assumptions: Mineral Resource V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font> price: $14.64/lb;
mining cost: $2.21/ton mined; process cost: $13.62/ton; general and
administrative (G&amp;A) cost: $0.99/ton processed; metallurgical
recovery assumptions of 60% for oxide material, 70% for transition
material and 52% for reduced material; tonnage factors of 16.86
ft3/ton for oxide material, 16.35 ft3/ton for transition material
and 14.18 ft3/ton for reduced material; royalty: 2.5% NSR; shipping
and conversion costs: $0.37/lb. An overall 40&#xBA; pit slope angle
assumption was used.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
5.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.</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="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Louie Hill Deposit</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
Louie Hill deposit lies approximately 1,600 ft south of the
Gibellini deposit.</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: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini Technical Report provides an Inferred Mineral Resource of
7.52 million tons at a weighted average grade of 0.276% vanadium
pentoxide (V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>). The oxidation
domains were not modeled. The total contained metal content of the
estimate is 41.49 million pounds V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>. The table below
summarizes the Louie Hill deposit resource estimate:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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:4px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 4px;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 4px;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 4px;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; padding-bottom:4px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">ContainedV<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<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-weight: bold; font-family: Times New Roman; font-size: 13px">Confidence
Category</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;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;<font style="font-weight:bold;">Cut-offV</font><font style="vertical-align:bottom;font-weight:bold;font-size:70%;">2</font><font style="font-weight:bold;">O</font><font style="vertical-align:bottom;font-weight:bold;font-size:70%;">5</font>
<font style="font-weight:bold;">(%)</font></font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Tons(Mt)</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">GradeV<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font>
(%)</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0); display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">(Mlb)</font></div>
</font><font style="text-align: left; padding-bottom: 2px; width: 10%; vertical-align: bottom; display: inline-block;">&#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-weight: bold; font-family: Times New Roman; font-size: 13px">Inferred</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;">0.101</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;">7.52</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;">0.276</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;">41.49</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>
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<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Notes to accompany Mineral Resource table for Louie
Hill</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
1.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME. The Mineral Resources have an effective date of May 29, 2018.
The resource model was prepared by Mr. Mark Hertel, RM
SME.</font></div>
</div>
</div>
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2.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
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3.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Oxidation state was not modeled.</font></div>
</div>
</div>
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4.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources are reported within a conceptual pit shell that
uses the following assumptions: Mineral Resource V2O5 price:
$14.64/lb.; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative (G&amp;A) cost: $0.99/ton processed;
metallurgical recovery assumptions of 60% for mineralized material;
tonnage factors of 16.86 ft3/ton for mineralized material, royalty:
2.5% NSR; shipping and conversion costs: $0.37/lb. For the purposes
of the resource estimate, an overall 40&#xBA; slope angle
assumption was used.</font></div>
</div>
</div>
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<div style="display: table-row">
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5.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.</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: 15px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A total
of 280 drill holes (about 51,265 ft) have been completed on the
Gibellini Project since 1946, comprising 16 core holes (4,046 ft),
169 rotary drill holes (25,077 ft; note not all drill holes have
footages recorded) and 95 reverse circulation holes (22,142
ft).</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: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
vanadium-host shale unit ranges from 175 to over 300 ft thick and
overlies gray mudstone. The shale has been oxidized to various hues
of yellow and orange to a depth of 100 ft. Alteration (oxidation)
of the rocks is classified as one of three oxide codes: oxidized,
transitional, and reduced.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">No
significant work has been conducted on the Gibellini Project since
2011. Some minor prospecting was completed in October 2018, We have
completed no trenching or drilling activities since the Gibellini
Project acquisition.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
power supply for the Gibellini Project site is assumed to be at
24.9 kV and will supplied from a planned substation to be located
near Fish Creek Ranch. This substation will tap and step-down the
69kV supply carried by the line to the Pan Mine to 24.9kV and place
it on a line to the Gibellini Project. Negotiations with the power
utility, Mt. Wheeler Power, would need to be undertaken to secure
any future power supply contract and transmission line to the
site.</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: 389px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Summary
of Geological Setting and Mineralization Regional
Geology</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini property occurs on the east flank of the southern part of
the Fish Creek Range. The southern part of the Fish Creek Range,
consists primarily of Paleozoic sedimentary rocks of Ordovician to
Mississippian Age of the eastern carbonate, western siliceous, and
overlap assemblages. Tertiary volcanic rocks crop out along the
eastern edge of the range and Tertiary to Quaternary sedimentary
rocks and alluvium bound the range to the west and east in the
Antelope and Little Smoky valleys, respectively. North to
northeast-trending faults dominate in the region, particularly
along the eastern range front.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini property lies within the Fish Creek Mining District. The
limestone hosted Gibellini Manganese-Nickel mine and the Gibellini
and Louie Hill black-shale hosted vanadium deposits are the most
significant deposits in the district, and all occur within the
Gibellini property boundary. The Bisoni-McKay black-shale hosted
vanadium deposit occurs several miles south of the Gibellini
property. A fluorite&#x2013;beryl prospect and
silver&#x2013;lead&#x2013;zinc vein mines with minor production are
also reported to occur in the district.</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">Project
Geology</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini deposit occurs within an allocthonous fault wedge of
organic-rich siliceous mudstone, siltstone, and chert, which forms
a northwest trending prominent ridge. These rocks are mapped as the
Gibellini facies of the Woodruff Formation of Devonian Age
(Desborough et al., 1984). These rocks are described by Noranda as
thin-bedded shales, very fissile and highly folded, distorted and
fractured (Condon, 1975). In general, the beds strike
north-northwest and dip from 15 to 50&#xB0; to the west. Outcrops
of the shale are scarce except for along road cuts and trenches.
The black shale unit which hosts the vanadium resource is from 175
ft to over 300 ft thick and overlies gray mudstone. The shale has
been oxidized to various hues of yellow and orange up to a depth of
100 ft.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Woodruff Formation is interpreted to have been deposited as
eugeosynclinal rocks (western assemblage) in western Nevada that
have been thrust eastward over miogeosynclinal rocks (eastern
assemblage) during the Antler Orogeny in late Devonian
time.</font></div>
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</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Gibellini facies is structurally underlain by the Bisoni facies of
the Woodruff Formation. The Bisoni unit consists of dolomitic or
argillaceous siltstone, siliceous mudstone, chert, and lesser
limestone and sandstone (Desborough and others, 1984).</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Structurally
underlying the Woodruff Formation are the coarse clastic rocks of
the Antelope Range Formation. These rocks are interpreted to have
been deposited during the Antler Orogeny and are attributed to the
overlap assemblage.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Louie Hill deposit is located in the same formation and lithologic
units as the Gibellini deposit. The general geology in this area is
thought to be similar to the Gibellini deposit area.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
ridge on which the Gibellini Manganese-Nickel mine (Niganz mine)
lies is underlain by yellowish-gray, fine-grained limestone. This
limestone is well bedded with beds averaging 2 ft thick. A
fossiliferous horizon containing abundant Bryozoa crops out on the
ridge about 100 ft higher than the mine. The lithologic and faunal
evidence suggest that this unit is part of the Upper Devonian
Nevada Limestone. Beds strike at N18E to N32W and dip at 18 degrees
to 22 degrees west. The manganese&#x2013;nickel mineralization
occurs within this unit. Alluvium up to 10 ft thick overlies part
of the area and is composed mostly of limy detritus from the high
ridge north of the mine. Minor faulting has taken place in the
limestone near the</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: 482px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Deposit Descriptions</font></font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 482px; 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: 482px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; text-decoration: underline">Gibellini
Deposit</font></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
Gibellini deposit occurs within organic-rich siliceous mudstone,
siltstone, and chert of the Gibellini facies of the Devonian Age
Woodruff Formation.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
general, the beds strike north-northwest and dip from 15&#xBA; to
50&#xBA; to the west. The black shale unit which hosts the vanadium
Mineral Resource is from 175 ft to over 300 ft thick and overlies
gray mudstone of the Bisoni facies. The shale has been oxidized to
various hues of yellow and orange up to a depth of 100
ft.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Alteration
(oxidation) of the rocks is classified as one of three oxide codes:
oxidized, transitional, and reduced. Vanadium grade changes across
these boundaries. The transitional zone reports the highest average
grades and RMP geologists interpreted this zone to have been
upgraded by supergene processes.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Louie Hill</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Louie Hill deposit lies approximately 500 m south of the Gibellini
deposit, being separated from the latter by a prominent drainage.
Mineralization at Louie Hill is hosted by organic-rich siliceous
mudstone, siltstone, and chert of the Gibellini facies of the
Devonian Woodruff Formation and probably represents a dissected
piece of the same allochthonous fault wedge containing the
Gibellini deposit.</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">Mineralized beds
cropping out on Louie Hill are often contorted and shattered but in
general strike in a north&#x2013;south direction, and dip to the
west 0 to 40&#xBA;.</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: 45px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Rocks
underlying the Louie Hill Deposit consist of mudstone, siltstone
and fine-grained sandstone probably of Mississippian age (Webb
and/or Chainman Formations). Oxidation of the mineralized rocks has
produced light-colored material with local red and yellow bands of
concentrated vanadium minerals.</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">Activities
and Developments</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-style: italic; font-family: Times New Roman; font-size: 13px">
2017</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"><font style="background-color: #FFFFFF">On July 10, 2017, the Company acquired
(through lease) from the holders (</font>the &#x201C;Former Louie
Hill Lessors&#x201D;) <font style="background-color: #FFFFFF">10
unpatented lode claims totaling approximately 207 gross acres that
comprised the Louie Hill group of claims</font> located
approximately 500 meters south of the Gibellini group of claims.
These claims were subsequently abandoned by the Former Louie Hill
Lessors, and on March 11 and 12, 2018, the Company staked the area
within and under 17 new claims totaling approximately 340 gross
acres which now collectively comprise the expanded Louie Hill group
of claims.</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"><font style="color: #000000; background-color: #FFFFFF">On November 20, 2017,
the Company received an independent technical report titled
&#x201C;Gibellini Vanadium Project Nevada, USA NI 43-101 Technical
Report&#x201D; with an effective date of November 10, 2017
(the&#xA0;&#x201D;</font><font style="font-weight: bold; color: #000000; background-color: #FFFFFF">Gibellini
Report</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;) prepared by
Wood The Gibellini Report</font> was filed with Canadian securities
regulatory authorities on SEDAR (available at <font style="text-decoration: underline; color: #0000FF">www.sedar.com</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
December 2017, we significantly expanded the land position at the
Gibellini Project by staking 198 new claims immediately adjacent to
the Gibellini Project covering 4091 acres that are sufficient to
enable future vanadium mining, processing and
extraction.</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-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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<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="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
2018</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">On
February 15, 2018, the Company indirectly acquired an additional
105 unpatented lode mining claims located adjacent to its existing
Gibellini claims through the indirect acquisition of VC Exploration
(US) Inc. <font style="background-color: #FFFFFF">by paying</font>
a total of $335,661 <font style="background-color: #FFFFFF">in cash
and issuing the equivalent of 500,000 common share purchase
warrants to</font> arm&#x2019;s-length, private parties<font style="background-color: #FFFFFF">.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
April 19, 2018, the Gibellini MLA was amended to grant the Company
the option, at any time during the term of the agreement, to
require the Gibellini Lessor to transfer their title over all of
the leased mining claims (excluding four claims which will be
retained by the Gibellini Lessor and which contain minimal
resource) to the Company in exchange for USD$1,000,000, to be paid
as an advance royalty payment.</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="color: #000000; background-color: #FFFFFF">On</font> <font style="color: #000000">May 9, 2018, the Company submitted its
Management&#x2019;s POO to the BLM and the Reclamation Permit
Application to the&#xA0;BMRR.</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: 0px; text-indent: 0px">
<font style="color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
On May 29, 2018, the Company received an independent technical
report providing an updated the resource on the Gibellini project.
The report is titled &#x201C;Gibellini Vanadium Project Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment&#x201D; (PEA) prepared by Mr. Kirk Hanson, P.E.,
Technical Director, Open Pit Mining; Mr. Edward J.C. Orbock III, RM
SME, Principal Geologist and US Manager of Consulting; Mr. Edwin
Peralta, P.E., Senior Mining Engineer; and Mr. Lynton Gormely,
P.Eng., Consultant Metallurgist of Wood. The report has an
effective date of May 29, 2018. The PEA replaces the technical
report entitled &#x201C;Gibellini Vanadium Project, Nevada, USA, NI
43-101 Technical Report&#x201D;, effective November 10, 2017 and
filed November 20, 2017.</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-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Highlights of the PEA (after tax)</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="color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
All dollar values are expressed in US dollars unless otherwise
noted</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="margin-left: 12px;">
<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: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-top: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Internal rate of
return</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-top: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">50.8%</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Net
present value (&#x201C;<font style="font-weight: bold">NPV</font>&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$338.3
million at 7% discount rate</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Payback
period</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">1.72
years</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Average
annual production</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">9.65
million lbs V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Average
V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>&#xA0;selling
price</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$12.73
per lb</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Operating cash
cost</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$4.77
per lb V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<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-in
sustaining costs<font style="font-size: 70%; vertical-align: top">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$6.28
per lb V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font></font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Breakeven
price<font style="font-size: 70%; vertical-align: top">**</font></font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$7.76
per lb V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Initial
capital cost including 25% contingency</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">$116.76
million</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Average
grade</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.26%
V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Strip
ratio</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.17
waste to leach material</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Mining
operating rate</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">3.4
million tons (leach material and waste) per year</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Average
V<font style="font-size: 70%; vertical-align: bottom">2</font>O<font style="font-size: 70%; vertical-align: bottom">5</font>&#xA0;recovery
through Direct Heap Leaching</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">62%</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Life of
mine</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-left: 0.75pt solid #CCCCCC; border-right: 0.75pt solid #CCCCCC; border-bottom: 2px solid #cccccc">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">13.5
years</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: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 70%; vertical-align: top">*</font>includes
selling costs, royalties, operating cash cost, reclamation,
exploration and sustaining capital costs.</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-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 70%; vertical-align: top">**</font>includes
selling costs, royalties, operating cash costs, taxes (local,
state, and federal), working capital, and sustaining and capital
costs.</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 PEA
is preliminary in nature and includes inferred mineral resources
that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the PEA will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic
viability.</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
tables below show the sensitivity analysis to the vanadium
pentoxide price, grade, and to the PEA capital cost and operating
costs. This sensitivity analysis indicates strong project economics
even in very challenging conditions, and that the project is well
positioned to benefit from the current rising vanadium price
environment. A 20% increase in the vanadium price relative to the
base case translates to a USD$491.3 million after-tax NPV at a 7%
discount rate.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
<div style="text-align: left; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">36</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; page-break-after: always; width: 100%; height: 1px; background-color: #000000">
<!--page break line--></div>
<div id="hdr">
<div style="text-align: right; width: 100%"><font style="font-family: Times New Roman; font-size: 11px">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">V<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font>&#xA0;price
USD$/lb</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxIRR</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td rowspan="1" style="border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-style: solid; border-width: 1px 1px 2px; width: 10%; vertical-align: bottom;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">16.55</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">69%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">568.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">996.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">15.28</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">63%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">491.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">864.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">14.00</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">57%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">415.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">733.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">12.73</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">51%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">338.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">600.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">11.46</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">44%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">261.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">467.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">10.18</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">36%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">183.1</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">333.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">8.91</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">26%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">103.9</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">196.9</font><font style="font-family: Times New Roman; 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="margin-left: 12px;">
<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: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">V<font style="font-size:70%;vertical-align:bottom;">2</font>O<font style="font-size:70%;vertical-align:bottom;">5</font>grade</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxIRR</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td rowspan="1" style="border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-style: solid; border-width: 1px 1px 2px; width: 10%; vertical-align: bottom;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.34</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">68</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">554.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">972.8</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.31</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">63</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">482.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">849.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.28</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">57</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">410.7</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">725.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.26</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">51</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">338.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">600.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.23</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">44</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">265.6</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">475.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.21</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">37</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">192.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">348.9</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">0.18</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">28</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">118.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">221.6</font><font style="font-family: Times New Roman; 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="margin-left: 12px;">
<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: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">CapexUSD$M</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxIRR</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td rowspan="1" style="border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-style: solid; border-width: 1px 1px 2px; width: 10%; vertical-align: bottom;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">151.8</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">40</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">307.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">564.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">140.1</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">43</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">317.6</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">576.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">128.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">47</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">328.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">588.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">116.8</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">51</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">338.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">600.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">105.1</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">55</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">348.6</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">612.5</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">93.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">61</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">358.9</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">624.6</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">81.7</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">67</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">369.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">636.8</font><font style="font-family: Times New Roman; 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="margin-left: 12px;">
<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: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">OpexUSD$M</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxIRR</font></div>
</td>
<td rowspan="1" style="border-left: 1px solid rgb(204, 204, 204); border-top: 1px solid rgb(204, 204, 204); vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td rowspan="1" style="border-color: rgb(204, 204, 204) rgb(204, 204, 204) rgb(0, 0, 0); border-style: solid; border-width: 1px 1px 2px; width: 10%; vertical-align: bottom;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">After-taxcash
flowUSD$M</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">6.20</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">45</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">257.9</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">450.2</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">5.72</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">47</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">284.8</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">500.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">5.25</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">49</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">311.6</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">550.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">4.77</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">51</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">338.3</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">600.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">4.29</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">53</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">364.8</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">650.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">3.82</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">55</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">390.7</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">698.4</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">3.34</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">56</font><font style="font-family: Times New Roman; font-size: 13px;">%</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-left: 1px solid rgb(204, 204, 204); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">416.0</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="border-left: 1px solid rgb(204, 204, 204); vertical-align: bottom; border-right: 1px solid rgb(204, 204, 204); width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">
<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;">745.4</font><font style="font-family: Times New Roman; 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 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">37</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: 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">On June
19, 2019, the Company announced the appointment of a third party
NEPA contractor and SWCA Environmental Consultants to work under
the direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record.</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">On June
25, 2018, the Company released the Gibellini Vanadium Technical
Report on Preliminary Economic Assessment, with an effective date
of May 29, 2018 and signed June 25, 2018 authored by Independent
Qualified Persons Kirk Hanson, P.E.; Edward J.C. Orbock III, RM
SME; Edwin Peralta, P.E.; and Dr. Lynton Gormely, P. Eng. of Wood
and is in accordance with NI 43-101. The PEA was filed with
Canadian securities regulatory authorities on SEDAR (available at
www.sedar.com).</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="color: #000000; font-family: Times New Roman; font-size: 13px">On
July 8, 2019, the Company announced it submitted an enhanced mining
POO that is designed to meet the needs set out by Secretarial Order
3355.</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="color: #000000; font-family: Times New Roman; font-size: 13px">August
15, 2018, the Company engaged NewFields, an environmental,
engineering, and construction management consulting &#xFB01;rm to
advance EIS preparation for the Gibellini Project. NewFields
completed the Gibellini heap leach pad and waste dump designs as
part of an overall basic engineering design lead by Scotia
International of Nevada, Inc. in 2014.</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">On
August 20, 2018, the Company<font style="font-weight: bold">&#xA0;</font>secured water supply for the
Gibellini Project construction and operation. The Company signed a
10-year Agreement with the owner of a private ranch, located
approximately 14.5 km from the Gibellini Project. The Agreement can
be extended for any number of additional 7-year terms, not to
exceed (with the primary term) a total of 99 years. Per the terms
of the Agreement, the lessor granted to the Company the rights to
805 acre-feet (approximately 262.4 million gallons) of water per
year for the Gibellini Project, at a minimum flow rate of 500
gallons per minute (&#x201C;gpm&#x201D;) from its year-round springs
surface water stream. The water flow rate was measured at the ranch
springs in 1965, in 1981, from December 2011 to September 2013, and
most recently, in 2017. The water flow rate ranges from 1,000 to
3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the
project&#x2019;s maximum water operational requirement of 420 gpm
based on the process engineering design prepared by Scotia
International of Nevada, Inc. as a part of engineering,
procurement, construction and management work done in 2014. The
Gibellini Project completed water-related baseline studies
including the drilling of water-test wells, water source data
collection, characterization, flow rate testing and modeling. Due
to the fact that the Agreement provides a source of water from
surface springs located on a private ranch and baseline studies
related to it have been completed, the Company expects to
significantly expedite the permitting process by eliminating the
need to appropriate water rights from the Nevada Division of Water
Resources (&#x201C;DWR&#x201D;).</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">On
October 22, 2018, the Company entered into a royalty agreement (the
&#x201C;Royalty Agreement&#x201D;) with the Former Louie Hill Lessors
to replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company&#x2019;s subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year.</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-family: Times New Roman; font-size: 13px">Upon
commencement of production, the Company will pay to the Former
Louie Hill Lessors, a 2.5% NSR of which, 1.5% of the NSR may be
purchased at any time by the Company for USD$1 million, leaving the
total NSR to be reduced to 1% over the remaining life of the mine
(and referred to thereafter, as &#x201C;Production Royalty
Payments&#x201D;). All advance royalty payments made, will be
deducted as credits against future Production Royalty Payments. The
Royalty Agreement shall be for an indefinite period and shall be
valid and in full force and effect for as long as the Company, its
subsidiaries, or any of their permitted successors or assigns holds
a valid and enforceable mining concession over the
area.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, we incurred total costs of
$2,727,759 (2017 - $490,3556) for the Gibellini Project including
$425,605 (2017 - $58,790) for claims acquisition cost, $387,149
(2017 - $74,876) for claims registration, royalties, and annual
maintenance, $1,509,587 (2017 &#x2013; 272,620) for geological
services, and $831,023 (2017 - $ 84,070) for general and
administrative expenses.</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-style: italic; font-family: Times New Roman; font-size: 13px">
2019</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
March 26, 2019,<font style="font-weight: bold">&#xA0;</font>the
Company announced vanadium assay results from the Company&#x2019;s
Fall 2018 exploration reconnaissance program on the Gibellini
Project. The 155 assays were taken from three prospective
exploration areas all within 5km to existing Gibellini vanadium
NI43-101 compliant resource pit outline whereat 49.9 million lbs.
measured and 81.5 million lbs. indicated vanadium resource have
already been identified (see Company&#x2019;s news release dated May
29, , 2018). Surface grab samples assay as high as 2% vanadium
pentoxide (V2O5) and 75 samples (48% of total 155) have V2O5 grades
greater than the Gibellini deposit&#x2019;s cut-off grade of 0.101%
V2O5 at $12.5/lb. V2O5; V2O5 currently trades at approximately
$16/lb.</font></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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
high vanadium assay results along the 5-kilometer
northeast-southwest trend which line-up the Northeast Prospect,
through Gibellini Hill, Louie Hill, Middle Earth Prospect, and Big
Sky Prospect providing an indication of potential and possibly
significant future expansion of vanadium mineralization along this
corridor.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Detailed maps are
available at<font style="text-decoration: underline; color: #0000FF">&#xA0;</font><font style="text-decoration: underline">www.silverelef.com</font>.</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">38</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: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Big Sky Prospect (300m by 50m)</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The Big
Sky prospect occurs 3.1 km southwest of the Gibellini Hill measured
and indicated resource and 1.8 km southwest of Louie Hill inferred
resource. A total of 62 samples were taken, of which 40%
(<font style="font-style: italic">n</font>=25) returned assays
greater than Gibellini cut-off grade. Sixteen (16) samples returned
assays &gt;0.200 V2O5. The distribution of samples occur along a
300 meter exposure of the Woodruff Formation. Assays showing
&gt;0.200 V2O5 are shown in the table 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><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">V2O5%
grab sample assay results at Big Sky prospect for samples with
&gt;0.200%</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px;">
<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: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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">
SAMPLE ID</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-top: 0.25pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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">Prospect</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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">V2O5
%</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301910</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.261</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301913</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.223</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301915</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.346</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301916</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.400</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301918</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.712</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301920</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.264</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301926</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.580</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301927</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">2.008</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301928</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.848</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301944</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.264</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301946</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.280</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301947</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.218</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301950</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.261</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302050</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.214</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302054</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.787</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302055</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Big
Sky</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">1.982</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="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Middle Earth Prospect (200m by 70m)</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Middle Earth prospect occurs 1.7 km southeast of the Gibellini Hill
deposit and 300 meters south of the Louie Hill deposit. A total of
50 samples were collected of which 68% (<font style="font-style: italic">n</font>=34) returned assays &gt;0.101% V2O5
or the Gibellini cut-off grade. Twenty-seven (27) samples returned
assays &gt;0.200 V2O5. The samples are distributed over 3 road cuts
of exposed Woodruff Formation making up a 200 meter by 70-meter
areal footprint. Assays showing &gt;0.200 V2O5 are shown in the
table 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">V2O5%
grab sample assay results at Middle Earth prospect for samples with
&gt;0.200%</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px;">
<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: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
SAMPLE ID</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
Prospect</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
V2O5 %</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301951</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.350</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301952</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.482</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301968</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.628</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301969</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.605</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301970</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.634</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301972</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.252</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301973</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.687</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301974</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.470</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301975</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.612</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301976</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.637</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301978</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.559</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301979</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.557</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301980</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.259</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301981</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.405</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%; 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">39</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"><br>
</font></div>
<div style="text-align: left; margin-left: 12px;">
<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: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
SAMPLE ID</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
Prospect</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
V2O5 %</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301983</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.255</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301984</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.303</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301985</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.434</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301987</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.291</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301988</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">1.294</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301989</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.261</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301991</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.314</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301992</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.457</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301993</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.380</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301995</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.302</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301998</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.539</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">301999</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.618</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302000</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">Middle
Earth</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.532</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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Northeast Trench Prospect (500m by 300m)</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Northeast Trench prospect occurs 1.2 km northeast of the Gibellini
Hill deposit and 2.5 km northeast of the Louie Hill deposit. A
total of 43 samples were collected of which 37% (<font style="font-style: italic">n</font>=16) returned assays &gt;0.101% V2O5
or the Gibellini cut-off grade. Three (3) samples returned assays
&gt;0.200 V2O5. The samples are distributed through road cuts
(&#x201C;trenches&#x201D;) and dry gulches of exposed Woodruff
Formation making up a 500 meter by 350-meter areal footprint. The
exposure at the Northeast Trench is greatly obscured by colluvium
material however the extent where it is exposed might indicate a
large volume of Woodruff Formation yet to be explored. Assays
showing &gt;0.200 V2O5 are shown in the table 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">V2O5%
grab sample assay results at Northeast Trench prospect for samples
with &gt;0.200%</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px;">
<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: bottom; width: 35%; border-left: 0.25pt solid rgb(0, 32, 96); border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">
SAMPLE ID</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">Prospect</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-top: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<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">V2O5
%</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-left: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302004</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">NE
Trench</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.239</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 35%; border-left: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302005</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">NE
Trench</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.380</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 35%; border-left: 0.25pt solid rgb(0, 32, 96); border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">302016</font></div>
</td>
<td style="vertical-align: bottom; width: 30%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">NE
Trench</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; border-bottom: 2px solid rgb(0, 32, 96);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">0.303</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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; color: #000000; background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
Water supply</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-family: Times New Roman; font-size: 13px">On
August 20, 2018, the Company<font style="font-weight: bold">&#xA0;</font>secured water supply for the
Gibellini Project construction and operation. The Company signed a
10-year agreement with the owner of a private ranch, located
approximately 14.5 km from the Gibellini Project (the
&#x201C;Agreement&#x201D;). The Agreement can be extended for any
number of additional 7-year terms, not to exceed (with the primary
term) a total of 99 years.</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-family: Times New Roman; font-size: 13px">Per the
terms of the Agreement, the lessor granted to the Company the
rights to 805 acre-feet (approximately 262.4 million gallons) of
water per year for the Gibellini Project, at a minimum flow rate of
500 gpm from its year-round springs surface water stream. The water
flow rate was measured at the ranch springs in 1965, in 1981, from
December 2011 to September 2013, and most recently, in 2017. The
water flow rate ranges from 1,000 to 3,900 gpm with an average flow
rate of 2,690 gpm, which exceeds the Gibellini Project&#x2019;s
maximum water operational requirement of 420 gpm based on the
process engineering design prepared by Scotia International of
Nevada, Inc. as a part of engineering, procurement, construction
and management work done in 2014.license. The Gibellini Project
completed water-related baseline studies including the drilling of
water-test wells, water source data collection, characterization,
flow rate testing and modeling. Due to the fact that the Agreement
provides a source of water from surface springs located on a
private ranch and baseline studies related to it have been
completed, the Company expects to significantly expedite the
permitting process by eliminating the need to appropriate water
rights from the DWR.</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="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">
Offtake and project financing</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-family: Times New Roman; font-size: 13px">The
Company has received unsolicited expressions of interest from
various potential investment sources and is currently engaged in
discussions with potential cornerstone investors, vanadium product
off-takers and banks on potential equity, debt and prepaid off-take
financing possibilities. The Company expects to report material
progress in due course.</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-family: Times New Roman; font-size: 13px"><font style="color: #000000; background-color: #FFFFFF">On October 31, 2019,
the Company</font> submitted permit applications for the Water
Pollution Control Permit and the Class II Air Quality Permit. These
Nevada state permits have been developed to provide construction
level engineering that supports the mine plan previously submitted
to the BLM in the POO. Comments received from both the BLM and SWCA
Environmental Consultants were used as guidance in the engineering
design to ensure the State and Federal Permits are aligned and
reflect the most current guidance provided by both the NDEP and
BLM.</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">
NDEP Water Pollution Control Permit</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-family: Times New Roman; font-size: 13px">Mining
in Nevada is regulated under the authority of the Nevada Revised
Statutes (&#x201C;NRS&#x201D;) 445A.300-NRS 445A.730 and the Nevada
Administrative Code (&#x201C;NAC&#x201D;) 445A.350-NAC 445A.447.
Water Pollution Control Permits (&#x201C;WPCP&#x201D;) are issued to
an operator prior to the construction of any mining, milling, or
other beneficiation process activity. Facilities utilizing
chemicals for processing ores are required to meet a zero-discharge
performance standard such that waters of the state will not be
degraded.</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-family: Times New Roman; font-size: 13px">The
engineering design for heap leaching, the processing facility, and
the mine design (M3 Engineering and Newfields Companies, LLC) was
integrated into to the site Closure Plan that was also submitted as
part of the WPCP application. This design will facilitate
concurrent closure of the heap as each heap cell is finished
leaching. This will allow the Closure Plan to be initiated during
operations. At the end of active mining, the site can be closed at
minimal technical risk. This reduces the closure duration and
liability and the commensurate reclamation bond.</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">
Air Quality Class II Permit</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-family: Times New Roman; font-size: 13px">The
Nevada Bureau of Air Pollution Control issues air quality operating
permits to stationary and temporary mobile sources that emit
regulated pollutants to ensure that these emissions do not harm
public health or cause significant deterioration in areas that
presently have clean air. This is achieved by stipulating specific
permit conditions designed to limit the amount of pollutants that
sources may emit into the air as a regular part of their business
processes.</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-family: Times New Roman; font-size: 13px">Any
process/activity that is an emission source requires an air quality
permit. Nevada Revised Statute (NRS) 445B.155 defines an emission
source as &#x201C;any property, real or personal, which directly
emits or may emit any air contaminant.&#x201D;</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-family: Times New Roman; font-size: 13px">The
Class II Permit for Gibellini is for facilities that emit less than
100 tons per year for any one regulated pollutant. Since the
vanadium processing will utilize a heap leach, the emissions will
be under the threshold for more complex air permits. The
engineering design incorporates stringent emission control
technology to minimize emissions. The modeled emissions from the
entire Gibellini Project are well below the National Ambient Air
Quality Standards.</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-family: Times New Roman; font-size: 13px">The
Enhanced Baseline Reports (the &#x201C;EBR&#x2019;s&#x201D;) were
extensively used in the Project engineering design to ensure that
potential environmental impacts identified in the EBR&#x2019;s would
be avoided or minimized by facility design. These engineering
controls help ensure that avoidance of potential environmental
impacts is &#x201C;built into&#x201D; the project from the start of
the design process. Doing so will allow Environmental Protection
Measures to be taken to minimize the risk of impacts that cannot be
completely avoided in the design and ensure up-front project
planning that is sensitive to all environmental
resources.</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">
Integration with BLM 12-month 3355 EIS Process</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-family: Times New Roman; font-size: 13px">The
Nevada state permit applications were brought forward in the
permitting process to identify any issues resulting from NDEP
review that could affect the project design in the POO early. By
resolving the State permitting issues prior to the start of the
EIS, it will help ensure that the 12-month schedule mandated by the
BLM Secretarial Order 3355 (S.O. 3355) can be met and interruptions
to the schedule can be avoided.</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-family: Times New Roman; font-size: 13px"><font style="color: #000000">The Company continues with its</font> <font style="color: #111111; background-color: #FFFFFF">Engineering,
Procurement and Construction Management</font> <font style="color: #000000">(the &#x201C;EPCM&#x201D;) work and expects Phase 1
of the EPCM, updating basic engineering design, to be completed by
2020; Phase 2, equipment procurement and detailed engineering
design, to be completed in 2021; Phase 3, facilities construction,
to start in 2021 and be completed in 2022 with the Gibellini
Project wet commissioning expected to be in
2022.</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 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">41</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company incurred total costs
of $4,956,938 (2018 - $2,727,759) for the Gibellini Project
including for $3,200,773 (2018 - $1,509,587) for geological and
engineering services, $1,470,007 (2018 - $831,023) for personnel,
legal, general and administrative expenses and $286,158 (2018 -
$387,149) for royalties, fees and taxes.</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">
Planning 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company intends to spend the available funds as set forth above
based on annual budgets approved by the Board of Directors
consistent with established internal control guidelines, and
programs recommended in the Gibellini PEA. However, there may be
circumstances where, for sound business reasons, a reallocation of
the net proceeds may be necessary. The actual amount that the
Company spends in connection with each of the intended uses of
proceeds may vary significantly from the amounts specified above
and will depend on a number of factors, including those referred to
under &#x201C;<font style="font-style: italic">Risk
Factors</font>&#x201D;.</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&#x2019;s 2020 Gibellini objectives are:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 25px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Trigger EIS NOI by
end of Quarter 1, 2020</font></div>
</div>
</div>
<div style="display: table; margin-left: 25px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Comprehensive
review of NI43-101</font></div>
</div>
</div>
<div style="display: table; margin-left: 25px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">&#x25CF;</font>&#xA0;</font></div>
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<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 14px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PULACAYO
PROJECT, BOLIVIA</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 14px; 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
scientific and technical information in this section of the
Registration Statement that specifically relates to the current
Pulacayo Project mineral resource estimates for the Pulacayo and
Paca deposits has been extracted or summarized from the technical
report titled &#x201C;Updated Mineral Resource Estimate Technical
Report for the Pulacayo Project&#x201D; dated November 14, 2017,
with an effective date of October 20, 2017 (the &#x201C;Pulacayo
Report&#x201D;). The Pulacayo Report was prepared by Peter Webster,
P.Geo and Michael Cullen, M.Sc., P. Geo of Mercator Geological
Services Limited. Additional information presented below that
pertains to the Pulacayo Project but does not specifically appear
in the Pulacayo Report has been provided by the Company. The
Pulacayo Report has been filed under the Company&#x2019;s SEDAR
profile at <font style="text-decoration: underline; color: #0000FF">www.SEDAR.com</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Pulacayo Project discussion below includes the Pulacayo and Paca
silver-lead-zinc deposits and related concessions located in
Bolivia.</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
Pulacayo Project consists of many licenses within which are located
the Pulacayo and Paca mineral deposits, several areas of potential
mineralization, and historic tailings piles.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 2, 2015, pursuant to the terms of the acquisition agreement
entered into between the Company and Apogee Silver Ltd. the Company
acquired the Pulacayo Project through the acquisition of the issued
and outstanding shares of ASC Holdings Limited and ASC Bolivia LDC,
which together, hold the issued and outstanding shares of ASC
Bolivia LDC Sucursal Bolivia. ASC Bolivia LDC Sucursal Bolivia
controls the mining rights to the concessions through a separate
joint venture agreement with the Pulacayo Ltda. Mining Cooperative
who hold the mining rights through a lease agreement with state
owned Mining Corporation of Bolivia, COMIBOL.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Pulacayo Project comprises seven concessions covering an area of
approximately 3,550 hectares of contiguous mining concessions
centered on the historical Pulacayo mine and town site. The
Pulacayo Project is located 18 km east of the town of Uyuni in the
Department of Potosi in southwestern Bolivia. It is located 460 km
south-southeast of the national capital of La Paz and 150 km
southwest of the city of Potosi, which is the administrative
capital of the department. The Pulacayo Project is fully permitted
with secured social licenses for mining.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">42</font></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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Project
Location</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
Pulacayo Project is located 18 km northeast of the city of Uyuni
(Canton of Pulacayo, Quijarro Province) in the Department of
Potos&#xED; in south western Bolivia, 460 km south east of the
capital city, La Paz, and 130 km south west of Potos&#xED;, the
department capital. The approximate coordinates of the center of
the project are 740 000 m East and 7 746 000 m North UTM Zone 19
south projection WGS84 datum, and at an elevation of 4,305 m
ASL.</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
Pulacayo Project has a semi-arid climate with low annual rainfall
and a mean summer temperature of 12&#xB0;C between October and
March. During winter, minimum temperatures reach the -20 to -25
&#xBA;C range and summer maximums in the 18 to 20&#xB0;C range
occur between June and July. The yearly mean temperature is
5.5&#xB0;C.</font></div>
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<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">43</font></div>
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<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-weight: bold; font-family: Times New Roman; font-size: 13px">Accessibility,
Climate, Local Resources, Infrastructure and
Physiography</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-style: italic; font-family: Times New Roman; font-size: 13px">
Project Access</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="color: #000000; font-family: Times New Roman; font-size: 13px">Local
Bolivian airlines fly regular domestic flights between major cities
to Uyuni city. The principal highways are generally paved and heavy
trucks and buses dominate road traffic outside of the major cities.
For the most part, road freight service functions adequately even
to small remote villages. The Pulacayo Project is accessed from La
Paz by means of a paved road through Oruro. It can also be accessed
by the gravel road between Oruro and Potos&#xED; and from
Potos&#xED; to Uyuni by a good quality gravel road. The road from
Potos&#xED; to Uyuni is paved. There is also a reasonably
well-developed rail system with connections south to Argentina,
east to Brazil and west to Chile and the port of Antofagasta. Rail
service from Uyuni connects with Oruro, Atocha, Tupiza, and
Villazon (on the border with Argentina). Uyuni is also connected by
railway to Chile through Estaci&#xF3;n Abaroa.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><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-style: italic; font-family: Times New Roman; font-size: 13px">
Climate</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="color: #000000; font-family: Times New Roman; font-size: 13px">Pulacayo
has a semi-arid climate, with annual rainfall of approximately 100
mm. During winter, minimum temperatures reach the -20&#xBA; to
-25&#xBA; C range and summer maximums in the 18 to 20&#xB0;C range.
The rainy period lasts from November to March corresponding with
the southern hemisphere&#x2019;s summer season. Potos&#xED; receives
regular snowfalls, typically between February and April at the end
of the rainy season. On the Altiplano and in higher altitude areas,
sub-zero temperatures are frequent at night throughout the
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: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Infrastructure and Local Resources</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
cemetery substation currently used for Pulacayo town and located at
the mine, will be enlarged and upgraded to include the equipment
for the complex and satisfy current government requirements.
Included in the substation will be a transformer, breakers,
switches, lightening protection and grounding. The transformer will
step down the 44 kV current from the grid to 380 V to be used by
the complex. Breakers will protect the transformer from incoming
line overloads. The switches will isolate the substation for
repairs and maintenance. Grounding will be provided for the
substation and lightning rods with proper grounding will protect
the substation from lightning strikes.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><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"><font style="color: #000000">The generator will provide back-up (reserve) power
should the incoming power quality or amount become unreliable or
power be lost</font>. Potable water is supplied for the Pulacayo
Mining Cooperative, the Pulacayo population, and the town of Uyuni
by pipeline from the Yanapollera dam and reservoir facility located
28 km from Pulacayo. To ensure an adequate consistent supply of
water for the mine and concentrator a water storage reservoir
possibly supplemented by groundwater sources is being considered.
Telephone services include an ENTEL-based long distance service and
a GSM signal cellular telephone service. Internet access is
available in most areas. Two antennae provide reception and
transmission of signals from national television stations. Apogee
Silver Ltd (&#x201C;Apogee&#x201D;) installed a satellite receiver to
provide internet access for its operation, which is shared with the
Cooperative Social del Riesgo Compartido (Shared Risk
Cooperative).</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="color: #000000; font-family: Times New Roman; font-size: 13px">Approximately
600 people currently live in Pulacayo on a permanent basis. The
village has a state-operated school and medical services. A
hospital and clinic function independently. Numerous dwellings and
mining related buildings in Pulacayo are owned by COMIBOL, some of
which have been donated to the Pulacayo Mining Cooperative. Under
the Shared Risk Contract, COMIBOL makes some mining infrastructure
available for use by Apogee. Many of the residents have mining
experience through working for the Pulacayo Mining
Cooperative.</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="color: #000000; font-family: Times New Roman; font-size: 13px">Basic
exploration services are available in Bolivia and include several
small diamond core drilling contractors, sample preparation (ALS
Group, located in Oruro), and assay laboratories (SGS Group located
in La Paz, and several locally owned assay facilities). The
Bolivian National School of Engineering operates a technical
college in Oruro (Universidad T&#xE9;cnica de Oruro) that includes
a mineral processing department and laboratory facilities that
provide commercial services to the mining industry. In general, an
adequate supply of junior to intermediate level geologists,
metallurgists, mining engineers and chemists is currently
considered to be present in Bolivia.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Physiography</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
Pulacayo Project area is located in the Altiplano region, a high
altitude plain broken by small mountains and hilly areas. It is
immediately south west of the Cosu&#xF1;o Caldera where local
topographic relief is gentle to moderate, with elevations ranging
between 4,000 m and 4,500 m above sea level.</font></div>
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<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
Paca and Pulacayo domes are volcanic structures that exist as
prominent topographic highs in this area.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ownership of the
Pulacayo Project properties is through joint venture agreements.
Apogee Minerals Ltd. (renamed &#x201C;Apogee Silver Ltd.&#x201D; in
March 2011) controlled 100% of the Pulacayo Project through an
agreement with Golden Minerals Company (&#x201C;GMC&#x201D;), the
successor of Apex Silver Company before its acquisition by us.
GMC&#x2019;s former Bolivian subsidiary, ASC Bolivia LDC Sucursal
Bolivia (&#x201C;ASC&#x201D;), holds the mining rights to the
concessions through a joint venture with the Pulacayo Mining
Cooperative, which in turn has a lease agreement with COMIBOL, the
state mining corporation of Bolivia. On January 21, 2011, Apogee
entered into a definitive agreement with GMC to acquire all of the
issued share capital of ASC, which holds a 100% interest in the
Pulacayo Project. Pursuant to the applicable agreement, Apogee
acquired all of the issued and outstanding shares of the subsidiary
from GMC in consideration for common shares of Apogee upon closing
of the transaction, and an additional block of common shares and a
cash fee eighteen (18) months following closing of the transaction.
In January 2015, Prophecy Coal Corp. (predecessor to the Company)
completed purchase of Apogee Minerals Bolivia S.A., ASC Holdings
Limited and ASC Bolivia LDC (which hold ASC, the holder of
Apogee&#x2019;s mining joint venture interest in the Pulacayo
Project) (collectively, the &#x201C;Apogee Subsidiaries&#x201D;) and
thus Apogee&#x2019;s interest in the mining joint venture.
<font style="color: #000000">Th</font>e <font style="color: #000000">term of the joint venture agreement is 23 years
starting July 30th, 2002. ASC Bolivia LDC is committed to pay to
COMIBOL USD$1,000 during the exploration period. During the mining
period ASC Bolivia LDC will pay to COMIBOL the equivalent of 2.5%
of the Net Smelter Return (NSR) and 1.5% of the NSR to the Pulacayo
Cooperative.</font> On September 1, 2016 the Bolivian government
issued Supreme Decree N&#xB0; 2891 which was confirmed by Law
N&#xB0; 845 dated October 24, 2016. Both regulations revert to the
domain of the State, areas over which joint venture agreements,
lease or sub-lease agreements have been executed between mining
cooperatives and private local or foreign companies, in order to
convert such agreements into mining production contracts between
the private parties party to such agreements and the government.
This affects our Pulacayo Joint Venture Agreement. We submitted the
required application on December 22, 2016. In October 2<font style="font-size: 70%; vertical-align: top">nd</font> 2019 a new Mining
Production Contract (replacing the Joint Venture Agreement) was
executed between Apogee Minerals Bolivia S.A. (a Silver Elephant
Mining Corp. subsidiary) and the state owned Bolivian Mining
Corporation (COMIBOL). The term is 15 years and subject to renewal
for another 15 years (total 30 years). COMIBOL is entitled to
receive 7% of the Gross Sales Value. No monthly fee payable to
COMIBOL has been agreed.</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-style: italic; font-family: Times New Roman; font-size: 13px">
History of Production</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="color: #000000; font-family: Times New Roman; font-size: 13px">Mining
of silver deposits at Pulacayo began in the Spanish Colonial Period
(c. 1545) but production details do not exist. The first recorded
work was carried out in 1833 when Mariano Ram&#xED;rez rediscovered
the Pulacayo deposit. In 1857 Aniceto Arce founded the Huanchaca
Mining Company of Bolivia and began development and production.
Revenue from the mine funded the first railway line in Bolivia
which in 1888 connected Pulacayo to the port of Antofagasta, Chile.
Annual silver production reached 5.7 million ounces in 1891 with
production predominantly from the rich Veta Tajo (Tajo vein
system). In 1923, mining operations ceased due to flooding of the
main working levels.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><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="color: #000000; font-family: Times New Roman; font-size: 13px">In
1927, Mauricio Hochschild bought the property and re-started mine
development with focus on the Veta Cuatro vein. During this time,
the 2.8 km long San Leon access tunnel was developed to facilitate
ore haulage and the first recorded exploration work in the area was
undertaken. Work continued through the intervening years, and in
1952, the Bolivian government nationalized the mines and
administration of the Pulacayo deposit and management was assumed
by the state mining enterprise COMIBOL. COMIBOL continued
operations producing 678 million ounces of silver, 200,000 tons of
zinc and 200 000 tons of lead until closure in 1959 due to
exhaustion of reserves and rising costs. COMIBOL also imposed
cutbacks on exploration at this time. In 1962, a local cooperative
group named Cooperativa Minera Pulacayo (the &#x201C;Pulacayo Mining
Cooperative&#x201D;) was founded and this group leased the Pulacayo
mine from COMIBOL. The Pulacayo Mining Cooperative has operated
small-scale mining in the district since that time and continues to
do so. During the period from November 2011 to May 2013 Apogee
performed trial mining, which is described in the
&#x201C;Mining&#x201D; section 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">There
is limited mining at the Paca deposit. But the dates of mining,
production, and grade are not known.</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 style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f004.jpg"></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%; 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">45</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-style: italic; font-family: Times New Roman; font-size: 13px">
Geology</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-style: italic; font-family: Times New Roman; font-size: 13px">
General</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="color: #000000; font-family: Times New Roman; font-size: 13px">In
south western Bolivia, the Andes Mountains consist of three
contiguous provinces, which are, from west to east, the Cordillera
Occidental, the Altiplano, and the Cordillera Oriental. The
basement beneath the area, which is as thick as 70 km, is believed
to be similar to the rocks exposed immediately to the east, in the
Cordillera Oriental, where a Phanerozoic-age fold and thrust belt
consists largely of Paleozoic and Mesozoic-age marine shales and
sandstones. Deposited mostly on Precambrian basement, the rocks of
the Cordillera Oriental were deformed during at least three
mountain-building cycles. The Altiplano is a series of high basins
located between mountain ranges that formed apparently in response
to folding and thrusting. Its formation involved the eastward
underthrusting of the basement rocks of the Cordillera Occidental,
concurrent with the westward overthrusting of the sedimentary rocks
of the Cordillera Oriental. These thrusts resulted in continental
foreland basins that received as much as 15,000 m of sediment and
interlayered volcanic rocks during the Cenozoic. Igneous activity
accompanying early Andean deformation was primarily focused further
west, in Chile. During the main pulse of Andean deformation, a
number of volcano-plutonic complexes were emplaced at several
localities on the Altiplano, particularly along its eastern margin
with the Cordillera Oriental and to the south. During glacial time,
most of the Altiplano was covered by large glacial lakes of which
the great salars of Uyuni and Coipasa are remnants. The Cordillera
Occidental consists of late Miocene to Recent volcanic rocks, both
lava flows and ash flow tuffs that have erupted in response to the
subduction of the Nazca plate beneath the continent of South
America. This underthrusting continues, and many of the volcanoes
that form the crest of the Andes and mark the international border
with Chile are presently active.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Exploration</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">Modern
era exploration in the project area included surface and
underground mapping, drilling and sampling by ASC and topographic
mapping, surface mapping, geophysical surveying and drilling by
Apogee. <font style="color: #000000">ASC performed preliminary
geologic mapping during 2003. They completed exploration drilling
using diamond coring method between July 2002 and November 2002,
February 2003, and September 2003. The drilling information is
summarized the table below</font>. These <font style="color: #000000">drilling programs outlined disseminated, veinlet
and stock work style mineralization occurring between previously
mined high-grade veins.</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: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Summary of Modern Era Drilling</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: top; width: 11%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Party</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Deposit</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Period</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Number of Drill Holes</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Meters of Drilling</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-top: 0.75pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Drill Holes By Spud Location</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<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">
ASC</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Jul&#x2013;Nov 2002</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; 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>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
3,905</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
11 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
3 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Feb 2003</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
554</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Sep&#x2013;Oct 2003</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; 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>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
1,302</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
6 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2002&#x2014;2005</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
36</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
4,344</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
36 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Total</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
61</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
10,105</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
54 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
7 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<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">
Apogee</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Feb&#x2013;Apr 2006</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
23</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
2,302</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
23 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Feb&#x2013;Jun 2006</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; 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>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
4,418</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
15 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
4 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Jun&#x2013;Nov 2006</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
46</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
10,444</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
46 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Nov&#x2013;Dec 2006</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; 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>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
886</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
7 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Nov 2007</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; 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>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
3,745</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
14 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Paca</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Jan&#x2013;May 2008</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
54</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
14,096</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
46 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
8 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Jun 2009</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
49</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
12,756</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
26 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
23 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Nov 2010&#x2013;Dec 2011</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
45</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
29,936</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
45 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Aug 2011&#x2013;Jun 2012</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
34</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
3,166</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
0 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
34 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Total</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
291</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
81,749</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
222 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
69 underground</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 11%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Grand Total</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
352</font></div>
</td>
<td style="vertical-align: top; width: 15%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
91,854</font></div>
</td>
<td style="vertical-align: top; width: 20%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
276 surface</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 15%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 20%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
76 underground</font></div>
</td>
</tr></table>
</div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">47</font></div>
</div>
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</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"><font style="color: #000000">Apogee commissioned a topographic survey of the
Pulacayo and Paca areas in 2006 to provide a topographic base map
for use in establishing road access, geological mapping and surface
sampling, and locating drill collars and geophysical lines. A
surface mapping and sampling program was done during 2005 and
initially utilized the ASC preliminary geological maps. The company
completed detailed surface mapping that covered all the exploration
licenses. The sampling consisted mostly of rock chip samples taken
from outcrops and accessible underground mine workings for a total
of 549 samples. During 2006 Apogee also commissioned a detailed,
three-dimensional digital model of the historic underground mine
workings. The model was subsequently modified by Apogee to conform
to the current datum and adjusted to align with the +1% incline
grade of the San Leon tunnel. An induced polarization (IP)
geophysical survey was carried out by Apogee between November and
December 2007.</font> A total of 29 line km of IP surveying was
completed on the Pulacayo Project including seven lines at Pulacayo
oriented north-south perpendicular to the east-west strike of the
TVS and five similarly oriented survey lines at Paca.</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"><font style="color: #000000">Following the acquisition of the Pulacayo Project,
Apogee initiated a diamond core exploration drill program that
consisted of 19 holes. During 2007-2008 Apogee focused on the Paca
deposit and completed 68 drill holes in two programs with 14
completed during</font> November 2007 and 54 holes completed during
2008. Subsequent drilling occurred during June 2009, between
November 2010 and December 2011, and between August 2011 and June
2012. <font style="color: #000000">The drilling information is
summarized in</font> the table above. Overall core recovery
reported by Apogee exceeds 90% in most cases though proximity to
old mine workings reduces the recovery potential due to associated
bedrock instability. Particular attention was paid to the planning
and documentation of drill holes. Planning is based on the logging
and interpretation of geological cross sections generated by Apogee
staff geologists. Drill hole coordinates are established from
digital maps and surface drill hole collars are located on the
ground by field geologists using a hand-held GPS receiver. The
completed drill hole is later surveyed by company surveyors. Drill
hole azimuth and inclination are established using a compass and
clinometer. Collar coordinates for underground drilling are
established by company surveyors and hole azimuth and inclination
are set by transit. Downhole deviation is determined for both
surface and underground holes at approximately 50 m intervals using
down hole survey tools.</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">Work
during 2015 included mapping, sampling, assays and metallurgical
tests under Phase 2 of the exploration plan, planning for Phase 2
(geophysics, drilling and assays), and preparation and submittal of
the permit application for Phase 2. The exploration centered on
assessing the historical tailings piles and potential mineralized
areas suggested by historical exploration. On February 2, 2015, the
Company announced the assay results received January 22, 2015 from
ALS Minerals Ltda., for samples obtained during the reconnaissance
sampling program of tailings piles materials. The tailings piles
are the remaining materials from processing ore, extracted from the
Pulacayo mining district between approximately 1850 and 1950. The
ore was processed by a mill on site which has since been
dismantled.</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-family: Times New Roman; font-size: 13px">A total
of 12 tailings piles were identified at the start of the mapping
and sampling program and a total of 299 samples from the 12
tailings piles were obtained. Samples were obtained at random
locations on the top surface of those piles from small holes
excavated with an excavator and systematically at 2 meter spacings
in the walls (slopes) of the piles from hand dug or excavated
trenches, all at depths of 1.2 to 1.5 meters. The samples were then
preserved, stored, secured, and transported following industry
standard methods. The assay program was performed by ALS Minerals
Ltda. of Lima, Per&#xFA; and included standard Quality Assurance
and Quality Control (QA/QC) samples to enforce the validity of the
results. The results indicate silver grades up to 1200 g/t, gold
grades up to 7 g/t and indium grades up to 154.5 g/t. On September
10, 2015, the Company reported results from preliminary
metallurgical test work conducted on samples collected from various
tailing piles at the Pulacayo Project showing up to 64.39% silver
recovery.</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">Surface
mapping and sampling was completed during June to August 2015 on
four potential mineralized areas (El Abra, Pero, Paca, and
Pacamayo). The sampling included close spaced grab and chip samples
obtained systematically where the trend of the mineralization is
apparent or in historic mine adits and random spot sampling where
the trend is not apparent. The samples were obtained through the
aid of trenching to allow sampling of fresher material, where
possible. The samples were then preserved, stored, secured, and
transported following industry standard methods. The assay program
was performed by ALS Minerals Ltda. and included standard QA/QC
samples to enforce the validity of the results. On August 27, 2015
and September 9, 2015, the Company announced assay results of the
first and second group of samples from the potential mineralized
areas at the district exploration program. On September 18, 2015,
the Company announced the assay results of the three Pacamayo
samples where the silver grade was reported as more than 1,500 g/t.
These samples have undergone reanalysis using the fire assay and
gravimetric finish method which has a greater upper detection
limit.</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">An
exploration permit application was submitted during early 2015. The
exploration permit would allow geophysical work to complete Phase 1
then after review of the Phase 1 information and previous
exploration information and planning, completion of Phase
2.</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">Planning and
budgeting for exploration to prove the planned stopes in the
internally-developed mining plans was completed. This exploration
plan included in-mine drilling and mining new drivages to explore
new areas, mapping of existing exposures and new drivages, sampling
of existing exposures, new drivages, and drill core for laboratory
analysis and metallurgical testing.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Mineralization</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"><font style="color: #000000">Pulacayo is a low sulphidation epithermal
polymetallic deposit hosted by sedimentary and igneous rocks of
Silurian and Neocene age (Pressacco et al., 2010). The Silurian
sediments underlie the volcanic rocks and include diamictites,
sandstones and shales. The Neocene rocks are predominantly
volcano-sedimentary in origin and include</font> conglomerates,
sandstones, rhyolitic tuffs, dacitic-rhyolitic domes, andesitic
porphyries and andesitic flows. The Pulacayo Project is located on
the western flank of a regional anticline that affects sedimentary
and igneous rocks of Silurian, Tertiary and Quaternary ages on the
western flank of the Cordillera Oriental, near the
Cordillera-Altiplano boundary. The major geologic features of the
area are faults and an anticline that are considered to be
important with respect to the location of
mineralization.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">48</font></div>
</div>
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</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">The
Uyuni-Khenayani Fault is a reverse fault located about 4 km west of
Pulacayo, which is believed to have controlled localization of
volcanic center complexes in the area and related mineralized areas
including at Pulacayo. The Pulacayo, Paca Mayo and Paca volcanic
dome complexes occur along a north-south corridor defined by two
parallel, north-south trending regional faults that are
approximately 2.7 km apart. The domes occur over a distance
measuring approximately 10 km in length. Polymetallic vein and wall
rock mineralization at Pulacayo is controlled by east-west trending
secondary faults that cut the Tertiary age sedimentary and volcanic
rocks of the Pulacayo dome. The stock work vein system was emplaced
on the southern side of the Pulacayo dome complex and is best
exemplified by the TVS which holds the largest metal resource. The
TVS bifurcates in andesitic rocks to form separate veins that
collectively form a dense network or stock work of veinlets along
strike. The bifurcating, polymetallic veins are commonly separated
by altered andesitic composition rock that contains disseminated
sulphide mineralization. The mineralized zones at Pulacayo, Paca
Mayu and Paca all occur on the west flank of a north-south striking
anticline primarily comprised of folded sedimentary rocks. Local
topographic highs define domes and stocks composed of Lower Miocene
age dacitic-andesitic composition igneous rocks that intrude the
folded sedimentary rocks. A younger phase of volcanic activity is
also superimposed on the anticline and is marked by volcanic rocks
of andesitic and rhyolitic composition. Volcanic ash deposits
associated with the Cosu&#xF1;o Caldera are the youngest volcanic
deposits in the area.</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">Hydrothermal
wallrock alteration is spatially associated with the main vein
system trends and includes propylitic, sericitic, moderate-advanced
argillic, and siliceous assemblages. Host rock composition exerts a
strong local influence on both the nature of alteration assemblages
present and their relative intensity of development. On this basis,
spatial distribution of hydrothermal alteration assemblages is a
useful indicator of proximity to mineralized structures. Moderate
argillic alteration is observed throughout the area and transitions
to intense argillic alteration in close proximity to veins and
disseminated-stock work zones. Haloes of silicification up to
several centimeters in width are developed around vein contacts in
some cases. Silicification grades into advanced argillic alteration
as distance into the wall rock increases and this gradually grades
to argillic and propylitic zones with greater
distance.</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
Pulacayo deposit is considered an example of a sub-volcanic
epithermal mineralization system showing well developed vertical
metal zonation. The TVS is the main mineralized vein and stock work
system at the Pulacayo Project. The east-west striking faults are
interpreted to have acted as a conduit system for mineralizing
fluids, with sulphide precipitation in open spaces to form veins
and along fractures or by replacement to form zones of disseminated
mineralization. Changes in temperature, pressure and the chemical
state between the wall rock and fluid are thought to have
influenced the style and intensity of mineralization. The high
grade parts of the TVS were historically mined as single 1 m to 3 m
wide veins but it transitions into zones of complex quartz-sulphide
or sulphide vein arrays that occur over widths ranging from less
than a meter up to 120 m. Mineralization of economic interest at
Pulacayo is predominantly comprised of sphalerite, galena and
tetrahedrite in sulphide-rich veins that are accompanied by locally
abundant quartz, barite and pyrite with disseminated sphalerite,
galena and tetrahedrite in the wallrock between the veins. To date,
the TVS system has been continuously proven by mining and/or
surface exposure along a strike length of 2,700 m and to a vertical
depth of 1,000 m below surface, is open in both strike and dip
components, and locally reaches approximately 120 m of mineralized
width.</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="color: #000000; font-family: Times New Roman; font-size: 13px">As
to the Paca deposit, faulting is also considered to have provided
conduits for mineralizing fluids. The faulting includes north-south
trending reverse faults and east-west trending extensional faults
that are located concentrically around Paca dome. The assemblage of
propylitic, sericitic, moderate to advanced argillic, and siliceous
wall rock alteration spatially associated with silver-zinc-lead
mineralization as at the Pulacayo deposit is also found at the Paca
deposit. But at Paca disseminated (mantos) style and breccia hosted
styles of mineralization are most common though a locally
mineralized conglomerate is also found. Generally, discrete veins
of mineralization having significant width and length are not
common. The sulphide mineral phases commonly associated with
economic grades recognized at Paca include sphalerite, galena,
silver sulphosalts, tennantite, smithsonite, barite, manganese
oxide, gypsum, jarosite, specularite, cerussite, dolomite,
aragonite and calcite. Information regarding sampling is contained
in the 2017 Pulacayo Technical Report.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Sampling</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
core is initially examined by core technicians and all measurements
are confirmed. Core is aligned and repositioned in the core box
where possible and individual depth marks are recorded at 1 m
intervals on the core box walls. Core technicians photograph all
core, measure core recovery between core depth blocks, complete
magnetic susceptibility readings and specific gravity measurements,
and record the information on hard copy data record sheets. This
information is initially entered into Excel digital spreadsheets
and then incorporated into the project digital database. Drill site
geologists then complete a written quick log of rock types along
with a graphical strip log that illustrates the rock types. They
subsequently complete a detailed written description of rock types,
alteration styles and intensities, structural features, and
mineralization features. The drill hole logs are drawn on paper
cross sections when logging is completed and lithologies are
graphically correlated from drill hole to drill hole. Mineralized
intervals are marked for sampling by the logging geologist using
colored grease pencils and the depths of the intervals and
associated sample numbers are recorded on a hardcopy sample record
sheet. All paper copy information for each hole, including quick
logs, detailed logs, graphical logs, sample record sheets and assay
certificates are secured together in a drill hole file folder to
provide a complete archival record for each drill hole. Subsequent
to logging and processing, down hole litho-coded intervals, sample
intervals and drill hole collar and survey information are entered
into digital spreadsheets and then incorporated into the project
digital database. The sample intervals marked by the logging
geologist are cut in half by the core technicians using a diamond
saw. Friable core is cut in half with a knife. Each half core
sample is assigned a unique sample tag and number and placed in a
correspondingly numbered 6 mil plastic sample bag. A duplicate tag
showing the same number is secured to the core box at the indicated
sample interval. All sample intervals and corresponding numbers are
recorded on a hardcopy sample data sheet and are subsequently
entered into a digital spreadsheet for later incorporation in the
project database. The secured 6 mil plastic sample bags are grouped
in batches of 6 to 10 samples and secured in a larger plastic mesh
bag in preparation for shipment to the laboratory.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
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<font style="font-family: Times New Roman; font-size: 13px">Drill
site procedures pertinent to the ASC drilling were confirmed by
Apogee staff familiar with the ASC program to be generally similar
to those employed by Apogee with respect to core logging and
sampling. All ASC drill core samples were processed at the Oruro,
Bolivia laboratory of ALS Chemex (formerly Bondar-Clegg), with
those from the first phase of drilling being analyzed at ALS Chemex
facilities in Vancouver, BC, Canada. In both instances, standard
core preparation methods were used prior to elemental
analysis.</font></div>
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<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Security of Samples</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">Apogee
staff was responsible for transport of core boxes by pick-up truck
from drill sites to the company&#x2019;s locked and secure core
storage and logging facility located in the town of Pulacayo. The
secured 6 mil plastic sample bags are grouped in batches of 6 to 10
samples and secured in a larger plastic mesh bag in preparation for
shipment to the ALS Chemex preparation laboratory located in Oruro,
Bolivia. All bagged samples remained in a locked storage facility
until shipment to the laboratory. Samples are transported from the
core storage area to the ALS Chemex facility by either Apogee
personnel or a reputable commercial carrier. Sample shipment forms
are used to list all samples in each shipment and laboratory
personnel crosscheck samples received against this list and report
any irregularities by fax or email to Apogee. Apogee has not
encountered any substantial issues with respect to sample
processing, delivery or security for the Pulacayo drilling
programs. The transport and security of samples pertinent to the
ASC drilling were confirmed by Apogee staff familiar with the ASC
program to be generally similar to those employed by Apogee. The
security of Paca exploration samples followed the same
procedures.</font></div>
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Sample Preparation, Analysis and Quality Assurance/Quality
Control</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><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">All
drill core samples from the ASC 2002 and 2003 drilling programs
were processed at the Oruro, Bolivia laboratory of ALS Chemex, with
those from the first phase of drilling being analyzed at ALS Chemex
facilities in Vancouver, BC, Canada. In both instances, standard
core preparation methods were used prior to elemental analysis.
During the 2006 to 2012 Apogee drilling programs Apogee staff
carried out immersion method specific gravity determinations but
did not carry out any form of direct sample preparation or
analytical work on project samples. Analytical work was completed
by ALS Minerals Ltda. at its analytical facility in Lima, Peru
after completion of sample preparation procedures at the ALS
facility located in Oruro, Bolivia. ALS was at the time and remains
an internationally accredited laboratory with National Association
of Testing Authorities certification and also complies with
standards of International Organization for Standardization (ISO)
9001:2000 and ISO 17025:1999. The laboratory utilizes industry
standard analytical methodology and utilizes rigorous internal
QA/QC procedures for self-testing. Samples from the ASC drilling
programs carried out in 2002 and 2003 were also prepared and
analyzed by ALS. However, after preparation at the facility in
Oruro, Bolivia under the same protocols as for Apogee, analytical
work was carried out at the company&#x2019;s laboratory in
Vancouver, BC, Canada. This facility was fully accredited at the
time and analytical protocols were the same as those described
above for Apogee.</font></div>
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<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Apogee
developed an internal QA/QC program that includes blind insertion
of reference standards, blanks and duplicates in each analytical
shipment that was used for the 2006 to 2012 drilling programs. A
blank is inserted at the beginning of each sample batch, standards
are inserted at random intervals throughout each batch of 50
samples and duplicates are analyzed at the end of each batch. All
data gathered for QA/QC purposes is captured, sorted and retained
in the QA/QC database. The QA/QC samples include commercial
reference standards, an in-house standard, and commercial prepared
blank materials. Coarse field blanks were also prepared by Apogee.
Analysis of duplicate samples of quarter core is accommodated
through their blind inclusion in the sample stream and analysis of
duplicate prepared pulp splits are also requested for each batch.
Apogee&#x2019;s protocol also includes a check sampling program
based on analysis of sample splits at a second accredited
laboratory. Bulk density measurements (specific gravity) were
systematically collected by Apogee staff using standard water
immersion methods and unsealed core samples. Characteristics of
lithology and alteration were also recorded as part of the density
program and all information was assembled in digital
spreadsheets.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">QA/QC
procedures pertinent to the ASC 2002-2003 drilling programs were
not documented. However, the first drilling program carried out by
Apogee in 2006 was intended to confirm earlier ASC analytical data.
Full QA/QC protocols instituted by Apogee were applied to this
program and results of the Apogee re-drill program correlate well
with those of ASC suggesting that acceptable standards were being
met by ASC. Though preparation, analysis, and QA/QC procedures were
not documented for the early ASC drilling on Paca, the results of
the 2006 re-drill program and check sampling by Mercator during
2015 were comparable and suggests acceptable procedures were
followed for the Paca deposit samples. Sampling from later drilling
at Paca followed Apogee&#x2019;s QA/QC procedures described above.
Bulk density measurements were also obtained.</font></div>
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Data Verification</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">Core
sample records, lithologic logs, laboratory reports and associated
drill hole information for all drill programs completed by Apogee
and ASC were digitally compiled by Apogee staff. Information
pertaining to the exploration history in the property area was also
compiled by Apogee and was reviewed to assess consistency and
validity of Apogee results. The digital drill hole records compiled
by Apogee were checked in detail against the parameters (collar
data, down hole survey values, hole depths, lithocodes) of the
original hard copy source documents to assess consistency and
accuracy. This was followed by review and validation of
approximately 10% of the compiled core sample dataset against
original source documents. Review of logging and sample records
showed consistently good agreement between original records and
digital database values. The drilling and sampling database records
were further assessed through digital error identification methods
available through the Gemcom-Surpac Version 6.2.1(R) software for
such errors as sample record duplications, end of hole errors,
survey and collar file inconsistencies and some potential lithocode
file errors. The digital review and import of the manually checked
datasets through Surpac provided a validated Microsoft Access(R)
database that is considered to be acceptable for resource
estimation.</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">Apogee
hosted two site visits by experts for review of procedures and
verification of conditions and work programs. The first during
August 2011 included review of drilling program components, core
check sampling, verification of drill hole locations, and
discussion with Apogee staff and consultants. The experts
determined that, to the extent reviewed during the visit, evidence
of work programs carried out to date on the property is consistent
with descriptions reported by the company and that procedures
employed by Apogee staff are consistent with current industry
standards and of good quality. The second site visit occurred
during April 2012 and included additional review of on-going
drilling and resource estimation program work pertaining to oxide
zone mineralization. The experts determined their drill hole
coordinates compared well with Apogee&#x2019;s coordinates and
reasonable correlation exists between the original sample analyses
and the check sample analyses.</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
data verification performed for the Paca deposit was similar to
that for the Pulacayo deposit described previously. Micon
International Limited of Toronto, Canada,&#xA0;considered the field
standard used by Apogee in its QA/QC program to be unacceptable and
suggested use of a commercial standard or an in-house standard
supported by industry best practices.</font></div>
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<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Processing and Metallurgical Testing</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">To
date, four metallurgical test programs were completed by outside
experts. These programs include: Resource Development Inc., Denver,
USA in 2003, UTO (Universidad T&#xE9;cnica de Oruro), Oruro, La
Paz, Bolivia in 2009, ED&amp;ED Ingenier&#xED;a y Servicios S.A.C.
(which we refer to as &#x201C;ED&amp;ED&#x201D;), Lima, Peru in 2011,
and UTO and Maelgwyn Mineral Services Laboratory in South Africa
during 2012. A fifth program was managed by Apogee where bulk
samples from trial mining were sent to local
concentrators.</font></div>
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<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
2003, Resource Development Inc. tested 120 kg of core sample from
two drill holes. Preliminary metallurgical test work was performed
to evaluate the silver and sulfide base metals recovery potential
including in-place densities, feed characterization, mineralogy,
leaching, gravity concentration, and bench-scale open circuit and
locked cycle tests (LCT&#x2019;s). Silver minerals were found not to
be amenable to leaching by NaCN or gravity concentration. Grinding
test data determined the time required to achieve a P80 of 150 #
(104 lm) was 20 minutes. Bench scale open circuit flotation tests
(OCT&#x2019;s) were performed using the flotation reagent suite
developed for the San Cristobal Project. The overall silver
recovery in the lead rougher concentrates was 97.1%. The lead
cleaner concentrate recovered 2.8% of the weight, 84.6% of lead,
3.1% of zinc and 46.9% of silver. The lead concentrate assayed
60.8% Pb, 4.22% Zn and 8,440 g/t Ag. The zinc cleaner concentrate
recovered 7.8% of weight, 1.3% of lead, 84.7% of zinc and 38.8% Ag.
The concentrate assayed 0.324% Pb, 41.2% Zn and 2,463 g/t Ag. Large
scale two cycle locked cycle flotation tests were performed using
the process flowsheet similar to that developed for San Cristobal
deposit. The lead concentrate assaying 62.2% Pb, 4.46% Zn and
10,891 g/t Ag, recovered 3.1% weight, 88.8% of lead, 3.9% of zinc
and 63.4% of silver. The zinc concentrate assayed 61.5% Zn, 0.9% Pb
and 3,303 g/t Ag, recovered 5% weight, 87.6% of zinc, 2.1% of lead
and 31.3% of silver. The tailings were very difficult to settle due
to high proportions of clay in the ore, which will impact the
process flow sheet and overall plant design. The lead and zinc
third cleaner concentrates were analyzed for impurities and found
that penalties may be incurred on the concentrates for several
impurities.</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">UTO
conducted a metallurgical test program during 2009 on three samples
comprising comminution (only Bond Ball Work Index), OCT&#x2019;s,
LCT&#x2019;s, OCT tailings (non-float) size by size analyses, and
OCT tailings (non-float) sedimentation tests. Clay mineralogy
studies were not carried out to determine the presence of clays
that may produce very fine slimes though during the test work,
slimes were produced affecting the flotation performance, settling
of tailings, and flotation pulp rheology. The samples were drill
cores composited to represent a higher grade, a medium grade, and a
lower grade. Comminution was evaluated using the Bond Ball Mill
Work Index test and categorized the samples as medium to hard.
Abrasion index, crushing work index, and rod work index tests were
not performed. Specific gravity tests were performed. Flotation
test work focused on lead and silver recovery using both batch open
circuit and closed circuit flotation tests. Locked cycle tests of
the high-grade sample indicated that conventional selective
lead-silver and zinc-silver flotation techniques recovered 56% of
the silver in the lead concentrate and 27% of the silver in the
zinc concentrate with lead recovery of 79% and zinc recovery of
81%. Silver grades were 6,620 g/t in the lead concentrate and 2,010
g/t in the zinc concentrate. LCT test results of the medium grade
sample indicated that it is possible to recover almost 34% of the
silver in the lead concentrate and 50% of the silver in the zinc
concentrate, with lead and zinc grades at 51% and 58%, lead and
zinc recoveries at 74% and 83%, and silver grades at 6,220 g/t and
2,990 g/t. LCT test results of the low-grade sample indicated that
it is possible to recover almost 30% of the silver in the lead
concentrate and 21% of the silver in the zinc concentrate, with
lead and zinc grades at 51% and 58%, lead and zinc recoveries at
74% and 83%, and silver grades at 6,220 g/t and 2,990 g/t,
respectively. The results seem to be reasonable and in accordance
with expectations from the mineralogy of the ore. These results
constitute the design basis for the flow sheet. Full OCT&#x2019;s of
sulphide minerals flotation were conducted initially on each sample
as a proof of concept of the overall circuit and to establish a
workable set of flotation conditions and reagents. These tests
demonstrated that sulphide flotation to saleable lead and zinc
concentrates at acceptable (for batch tests) recoveries was
possible.</font></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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
2011, the laboratory facility of ED&amp;ED, performed a series of
flotation tests and contracted mineralogical analyses on a high
grade and low-grade sample. The initial ED&amp;ED flotation test
work was not successful then after pre-conditioning the samples
with activated carbon and subsequent differential flotation, was
moderately successful. The minerals present included sphalerite,
galena, pyrite and quartzite gangue with galena-sphalerite
assemblages (intertwined specimens) present to some extent. Twelve
(12) OCT&#x2019;s were conducted on each of the samples to confirm
the previous flotation results by UTO and to evaluate the effect of
flotation response at finer grind sizes as seen in the flowcharts.
The flotation tests, carried out on the high-grade samples
indicated that it is possible to obtain commercial lead and zinc
concentrates with grades of lead and zinc of 42.1% and 43%,
respectively. The concentration of silver in the lead and zinc
concentrates were reported as 7,010 g/t and 198.2 g/t,
respectively. The straightforward conventional selective
lead-silver and zinc-silver flotation techniques after carbon
pre-treatment are able to recover 85.7% of silver in the lead
concentrate (with a mass pull of 3.1%) and 2.93% of silver in the
zinc concentrate (with a mass pull of 3.75%). The lead and zinc
recoveries are estimated as 80% and 77.8%, respectively. The
flotation tests, carried out on the low-grade samples indicated
that it is possible to obtain commercial lead and zinc concentrates
with grades of lead and zinc of 41% and 43.1%, respectively. The
concentration of silver in the lead and zinc concentrates were
reported as 6,734 g/t and 207 g/t, respectively. The
straightforward conventional selective lead-silver and zinc-silver
flotation techniques after carbon pre-treatment are able to recover
74% of silver in the lead concentrate (with a mass pull of 1.95%)
and 3.27% of silver in the zinc concentrate (with a mass pull of
2.8%). The lead and zinc recoveries are estimated as 77.6% and
71.9%, respectively. In overall, better flotation (open circuit
tests) performances are obtained at a grind size of P80 of 74 lm.
Locked cycle tests at this grind size will be necessary to confirm
these results. A set of paste thickening tests were run on dry
samples of the flotation test (tailings) to investigate the
performance of the FLSmidth Deep Cone Paste thickening technology.
Screening flocculent tests were carried out. Anionic flocculent
(Floenger PHP 50 Plus) was selected to improve sedimentation
performance based on settling rates and observed visual supernatant
clarity. Experience has shown that it is difficult to scale paste
flow characteristics from small-scale tests to full-scale pipeline
conditions, pilot-scale pumping tests are usually necessary. The
lab flotation concentrates (open circuit tests) were assayed to
determine the deleterious elements in the concentrate and for use
in the NSR calculations and included mineralogical analyses. The
results showed that the lead concentrate assayed 47.2% Pb and 6,273
g/t Ag with 1.3% Cu, 1.45% As and 1.23% Sb. The zinc concentrate
assayed 53.8% Zn with negligible copper, arsenic or antimony. The
lead, silver and zinc concentrate grades are in agreement with the
LCT carried out before. Concentrations of deleterious elements
appear below typical smelter penalty thresholds, with arsenic
appearing as the principal penalty element.</font></div>
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<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
2012, UTO conducted further metallurgical test work including a
single collective flotation test, a series of open circuit
differential flotation tests (with a de-sliming step), a single
locked cycle flotation test (with de-sliming step), and PORCO flow
sheet testing. This test work was designed to explore the flotation
response of the ore to conventional differential flotation and to
establish the operating conditions, reagent scheme, and
consumptions. The sample was prepared and provided by Apogee (ASL)
and consisted of a bulk composite sample from drill cores with
grain sizes up to 76.2 mm (3 inches). The first exploratory test
indicated that silver recovery to bulk concentrate is about 72%,
while the lead and zinc recoveries are approximately 66% and 78%
respectively. The floating fraction accounted for about 13%, the
slimes fraction 18%, and the rest is lost as final tailings. Lead
and silver losses are up to 23% and 13%, respectively. The open
batch flotation tests indicated that lead recovery is between 48%
and 54%, while zinc recovery is in the range from 50.1% to 72%.
Total silver recovery to both lead and zinc concentrates is between
30% and 68%. Lead concentrate grades range from 33.5% to 59%, zinc
concentrate grades range from 49% and 55%. Similarly, silver grades
in both concentrates range from 9,875 g/t to 15,333 g/t. A single
LCT, a repetitive batch used to simulate a continuous circuit where
all the intermediate material added to the appropriate location in
the flowsheet, was conducted to produce a metallurgical projection
of the sample tested and to assess if the flowsheet and reagent
suite is stable. A good locked cycle test typically achieves steady
state over the last three cycles. Steady state implies both
stability and mass conservation. Stability implies constancy. It
was not indicated whether the test reached stability or whether
mass conservation was achieved. Assuming that steady state was
reached, the results indicated that lead and zinc recoveries were
60.1% and 76.5%, respectively. Lead concentrate assayed 11,114 g/t
Ag, 49.1% Pb and 4.81% Zn. Additionally, the metal values in the
zinc concentrate were 2,220 g/t Ag, 2.29% Pb and 48.6% Zn.
Concentrates account for about 2.9% w/w of the feed (0.81% lead and
2.1% zinc). Silver metal loss in the slimes is as high as in the
tailings. Lead and silver losses in the final tails are 23.1% and
9.12% respectively. The PORCO flowsheet is basically a bulk
flotation followed by lead and zinc flotation, this processing
route should be carried out at high pH (12.2) intended to depress
pyrite at the outset. However, the Pulacayo ore did not respond
well mainly because of lead and silver selectivity issues and high
consumption of acid (H<font style="font-size: 70%; vertical-align: bottom">2</font>SO<font style="font-size: 70%; vertical-align: bottom">4</font>) to drop the pH
to a level suitable for lead flotation after the bulk
stage.</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">Maelgwyn Mineral
Services Africa carried out laboratory flotation optimization test
work on ore samples from the Pulacayo Project during 2012. The
objectives of the work were to: (i) test the flotation conditions
supplied by Apogee on the core samples to determine the metal
recoveries and grades achievable by differential flotation of the
Pb and Zn minerals; (ii) to optimize the flotation conditions for
effective differential of the Pb and Zn minerals and to achieve
saleable grades of Pb and Zn concentrates; and (iii) to perform
locked cycle testing of the optimized flotation conditions using
selected variability core samples. Laboratory rod milling curves
were produced for all the samples and found that the milling times
required for the samples indicated a high degree of variability in
hardness between the sample types. Flotation tests included 65
OCT&#x2019;s (exploratory test work) and four locked cycle flotation
tests. In summary, the locked cycle tests yielded Pb concentrates
of 55-69% Pb at recoveries between 88% and 93% and Zn concentrates
of 37% to 56% Zn at recoveries of 79% to 90% with a large variation
in head grade from 1.5% Pb to 4.3% Pb. The silver recoveries ranged
between 68% and 94% with a variation in head grade of between 136
g/t Ag and 375 g/t Ag.</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
test mining between November 2011 and May 2013 produced 12,550 tons
of ore that were used in a toll milling program to evaluate ore
processing. The ore was hauled by truck to four concentrators
&#x2013; Tatasi, Fedecomin, La Estrella, and Zabaleta. The Zabaleta
concentrator attained the best recoveries for which the results are
presented in the table below.</font></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-weight: bold; font-family: Times New Roman; font-size: 13px">
Pulcacayo Deposit Zabaleta Toll Milling Results</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="margin-left: 12px;">
<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:40%;">
<br></td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:30%;">
<div><font style="text-align: left; padding-bottom:2px;width:3%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:94%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Concentrate
Grade</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:3%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:30%;">
<div><font style="text-align: left; padding-bottom:2px;width:3%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:94%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Recoveries</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:3%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td rowspan="1" style="vertical-align:bottom;width:40%;">
<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">Material</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Pb
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Zn
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Ag
(g/t)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Pb
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Zn
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Ag
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lead
Concentrate</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;">47.95</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;">12.85</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;">6,295</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;">64.62</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;">16.26</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;">72.13</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Zinc
Concentrate</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;">8.47</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;">39.45</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;">941</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;">9.97</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;">43.57</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;">8.41</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:40%;">
<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">Tailings</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<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;">0.58</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:10%;">
<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;">0.97</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:10%;">
<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;">49</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:10%;">
<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;">25.41</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:10%;">
<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;">40.16</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:10%;">
<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;">18.45</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:#ffffff;">
<td colspan="7" style="vertical-align:bottom;width:100%;">
<div><font style="text-align: left; padding-bottom:2px;width:1%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:98%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Total
Ag recovery: 81.55%</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:1%;vertical-align:bottom;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><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">Only
one series of metallurgical tests were performed on samples from
the Paca deposit. The tests were completed on three samples
composited from drill cores and included feed characterization,
leaching, flotation and gravity tests, in-place bulk density
determination, and mineralogy. Study of the three composite samples
found the silver grade varied from 44.5 g/t Ag to 228.6 g/t Ag,
lead minerals 0.56% Pb to 0.8% Pb), and zinc minerals 0.05% Zn to
0.41% Zn). The other sulfide minerals identified were sulphosalts
and chalcocite. Coarse native silver was detected in one of the
samples. The silver minerals were amenable to cyanide leaching for
most of the composite samples (i.e. 28% to 82% Ag extraction)
however, extraction of silver was size dependent and improved with
fineness-of-size. The lime consumption in leach varied from 0.8 to
2.4 kg/t. The NaCN consumption was dependent on both ore type and
particle size, increasing with fineness of a particular size and in
general, averaged &#xB1; 1.5 kg/t. Due to the presence of coarse
native silver, the silver leaching was not completed in 120 hours,
hence, the data was extrapolated to 240 hours leach time to project
anticipated silver recovery and indicated that over 90% of silver
could potentially be recovered at fine particle size for two of the
three composites. Assay of the final pregnant solution from
selected tests found measurable quantities of gold, hence, it is
reasonable to conclude that gold is present in those samples. Some
of the copper minerals present in the samples are also readily
soluble in cyanide. Differential lead/zinc flotation process
recovered over 90% of silver in the combined lead and zinc
concentrate for the composite assaying 228.6 g/t Ag. The flotation
process shows promise of recovering silver. However, the flotation
process did not recover acceptable silver values from the other
composites. The gravity concentration process did not concentrate
silver in the gravity concentrate, hence, it cannot be used alone
as a process for recovering silver minerals. The average density
was &#xB1; 2.2 gm/cc for the samples tested, but the in-place bulk
densities were extremely variable for one composite (i.e., 1.79 and
2.58 gm/cc). In summary, the preliminary results were encouraging
to warrant additional drilling and metallurgical
testing.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">54</font></div>
</div>
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</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineralization
is found from the surface to at least 1,000 m depth at the Pulacayo
deposit thus both surface and underground mining methods are
likely. It is envisioned that surface mining will recover the
oxidized ore and some sulphide ore to an elevation below which a
crown pillar will be left and below which underground mining
methods would start. Mineralization at the Paca deposit is found
from the surface to approximately 60 m depth for the mantos-style
mineralization and from approximately 10 m to 240m depth for the
stockwork and vein style mineralization. Thus, it is anticipated
mining will be mostly by surface methods.</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-family: Times New Roman; font-size: 13px">Trial
mining was conducted between November 2011 and May 2013 at the
Pulacayo deposit. The trial mining was done to obtain geotechnical
information, better understand mining dilution, obtain a large
sample for process testing, and train the workforce. The mining
methods included jack leg drill and blast with tracked haulage for
development and drill and blast with trackless haulage for
production by the shrinkage and reusing stoping methods. The
haulage way was advanced and three stopes were mined. The trial
mining produced 12,550 tons of ore.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral Resources and Reserves</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"><font style="color: #000000">On November 22, 2017, we received an independent
technical report titled &#x201C;Updated Mineral Resource Estimate
and Technical Report for the Pulacayo Project&#x201D; dated November
14, 2017, with an effective date of October 20, 2017 (the 2017
Pulacayo Technical Report&#x201D;), prepared by</font> Peter
Webster, P.Geo and Michael Cullen, M.Sc., P. Geo of Mercator
Geological Services Limited.</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
2017 Pulacayo Technical Report describes resources estimated
following the guidelines of the CIM Standards. Two mineral resource
estimates were disclosed according to the requirements of NI
43-101. The first for the Pulacayo deposit and the second for the
Paca 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: 0px; text-indent: 0px">
<font style="text-decoration: underline; color: #000000; font-family: Times New Roman; font-size: 13px">
Pulacayo 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Results
of the mineral resource estimate prepared for the Pulacayo deposit
are presented in the table 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
2017 Pulacayo Technical Report outlined 2.08 million tonnes at a
weighted average grade of Ag 455 g/t, Pb 2.18%, Zn 3.19% (Ag Eq.
594 g/t) in the indicated category and 0.48 million tonnes at a
weighted average grade of Ag 406 g/t, Pb 2.08%, Zn 3.93% (Ag Eq.
572 g/t) in the inferred category. The contained metal content
estimated by the Company, of the indicated category resources is
30.4 million ounces of silver, 100.0 million pounds of lead, 146.3
million pounds of zinc. The contained metal content estimated by
the Company, of the inferred category resource is 6.3 million
ounces of silver, 22.0 million pounds of lead, and 41.6 million
pounds of zinc.</font></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="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Pulacayo Indicated and Inferred Mineral Resource Statement
Details</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: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Pulacayo Mineral Resource Statement &#x2013; Effective October 20,
2017&#xA0;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; display:inline-block;vertical-align:bottom;width:10%;padding-bottom:2px">&#xA0;</font><font style="text-align: center; display:inline-block;vertical-align:bottom;width:80%;padding-bottom:2px">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Ag Eq.
Cut-Off (g/t)</font></div>
</div>
</font><font style="text-align: left; display:inline-block;vertical-align:bottom;width:10%;padding-bottom:2px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; display:inline-block;vertical-align:bottom;width:10%;padding-bottom:2px">&#xA0;</font><font style="text-align: center; display: inline-block; vertical-align: bottom; width: 80%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Category</font></div>
</font><font style="text-align: left; display: inline-block; vertical-align: bottom; width: 10%; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;"><font style="color:#000000;">Tonnes</font><font style="vertical-align:top;font-size:70%;color:#000000;">*</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Ag
(g/t)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Pb
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Zn
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Ag Eq.
(g/t)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">400</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;">Indicated</div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">2,080,000</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">455</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">2.18</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">3.19</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:75%;border-bottom:solid 2px #000000;">594</font><font style="text-align: left; color:#000000;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:#ffffff;">
<td rowspan="1" style="width:10%;vertical-align:bottom;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">400</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:12px;">Inferred</div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">480,000</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">406</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2.08</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3.93</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;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; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">572</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;padding-bottom:2px;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="text-align: left; margin-left: 96px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; color: #000000; 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: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">1)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">2)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Raw silver assays were capped at 1,700 g/t, raw lead assays were
capped at 15% and raw zinc assays were capped at 15%.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">3)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Silver equivalent Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb% *(USD$0.94/
lb. Pb /14.583 Troy oz./lb./USD$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(USD$1.00/lb. Zn/14.583 Troy
oz./lb./USD$16.50 per Troy oz. Ag)*10,000*82.9%).</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">4)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Metal prices used in the silver equivalent calculation are
USD$16.50/Troy oz. Ag, USD$0.94/lb Pb and USD$1.00/lb. Zn. Metal
recoveries used in the silver equivalent equation reflect historic
metallurgical results disclosed by Apogee (Porter et al.,
2013).</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">5)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Metal grades were interpolated within wire-framed,
three-dimensional silver domain solids using Geovia-Surpac Ver.
6.6.1 software and inverse distance squared interpolation methods.
Block size is 10m(X) by 10m(Z) by 2m(Y). Historic mine void space
was removed from the model prior to reporting of
resources.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">6)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Block density factors reflect three-dimensional modeling of drill
core density determinations.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">7)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources are considered to have reasonable expectation for
economic development using underground mining methods based on the
deposit history, resource amount and metal grades, current metal
pricing and comparison to broadly comparable deposits
elsewhere.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">8)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Rounding of figures may result in apparent differences between
tonnes, grade and contained ounces.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">9)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="display: table; margin-left: 109px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">10)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Tonnes are rounded to nearest 10,000.</font></div>
</div>
</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">55</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
contained metals estimated by the Company based on in the 2017
Pulacayo Technical Report are presented in the table
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 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">
<font style="color: #000000">Contained Metals Based on October 20,
2017 Pulacayo Deposit</font><font style="font-size: 70%; vertical-align: top; color: #000000">**</font><font style="color: #000000">&#xA0;Mineral
Resource Estimate</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="margin-left: 12px;">
<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:middle;padding-bottom:2px;width:38%;border-top:solid 1px #000000;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Metal</font></div>
</td>
<td rowspan="1" style="vertical-align:middle;padding-bottom:2px;width:33%;border-top:solid 1px #000000;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Indicated Resource</font></div>
</td>
<td rowspan="1" style="vertical-align:middle;width:29%;border-top:solid 1px #000000;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Inferred Resource</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:middle;width:38%;">
<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">Silver</font></div>
</td>
<td style="vertical-align:middle;width:33%;">
<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">30.4
million oz.</font></div>
</td>
<td style="vertical-align:middle;width:29%;">
<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">6.3
million oz.</font></div>
</td>
</tr><tr>
<td style="vertical-align:middle;width:38%;">
<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">Lead</font></div>
</td>
<td style="vertical-align:middle;width:33%;">
<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">100.0
million lbs.</font></div>
</td>
<td style="vertical-align:middle;width:29%;">
<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">22.0
million lbs.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:middle;width:38%;border-bottom:solid 2px #000000;">
<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">Zinc</font></div>
</td>
<td style="vertical-align:middle;width:33%;border-bottom:solid 2px #000000;">
<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">146.3
million lbs.</font></div>
</td>
<td style="vertical-align:middle;width:29%;border-bottom:solid 2px #000000;">
<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">41.6
million lbs.</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: left; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 70%; vertical-align: top; color: #000000">**</font><font style="color: #000000">Based
on the resource estimate Ag Eq. cut-off value of 400 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment.</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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Between
2006 and 2012, a total of 69,739 meters of diamond drilling (226
surface and 42 underground drill holes) was conducted at Pulacayo,
results of which support the mineral resource estimate The Pulacayo
site is currently permitted for production at a milling rate of 560
tonnes per day and no known legal, political, environmental, or
other risks that would materially affect potential future
development were identified by us at the effective date of the 2017
Pulacayo Technical Report (October 20, 2017) or are known by us as
of the date of this filing.</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="color: #000000; font-family: Times New Roman; font-size: 13px">Approximately
85% of the resource tonnage identified at the 400 g/t Ag Eq.
cut-off value occurs within 150 meters vertical distance from the
main San Leon tunnel, which may facilitate future mineral
extraction.</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"><font style="color: #000000">Historic Pulacayo production was predominantly
from the TVS which extends over a strike length of more than 2.5 km
and to a depth of at least 1,000 meters. Prior resource drilling
only covered approximately 20% of the TVS strike length. With new
drilling,</font> the Company <font style="color: #000000">believes
that there is potential to discover additional resources along the
Tajo structure.</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: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Paca 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In June
2016, the Company commenced its sampling program at the Paca
deposit. Samples were obtained at one meter intervals from near
surface drifts within the Paca mine which appears to have limited
historic development. The area of sampled drifts has an estimated
dimension of 90 meters length (east to west) and 75 meters width
(north to south) and occurs at an average depth of 100 meters.
Mineralization mainly consists of silver sulphides (mostly
tennantite), galena and sphalerite in the pores of the sedimentary
rocks and in breccias.</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-family: Times New Roman; font-size: 13px">On
August 12, 2016, the Company announced the assay results for the
first group of 40 samples collected from the Paca deposit
exploration program at its Pulacayo Project (see table below).
During the sampling program, 233 samples were collected. However,
due to a backlog at the testing laboratory, the Company prioritized
the 40 most prospective samples for assay. Thus, the assayed
samples are not representative of the sample population. These
results are taken from the first group of samples the Company
delivered.</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
samples were delivered to ALS Geochemistry Laboratory in Oruro,
Bolivia (which we refer to as &#x201C;ALS&#x201D;) for assay and
included QA/QC samples. Standard reference, duplicate and blank
samples were used &#x2013; all of which, produced acceptable
results. ALS is an independent laboratory and was qualified and
accredited by the Colombian Institute of Technical Standards and
Certification (which we refer to as the &#x201C;ICONTEC&#x201D;) and
the Standards Council of Canada for the methods used during the
time the samples were prepared and assayed. Records were maintained
to document the secure handling of the samples and to verify their
identities were maintained.</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">Chip
channel sample P225 returned a silver grade that is greater than
the 1,500 g/t detection limit. It is planned to submit the sample
for another assay for precious metals content using methods having
a greater upper detection limit.</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">56</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Samples
were obtained from shallow depth drifts within the Paca mine which
appear to have limited historic development. The area of sampled
drifts has an estimated dimension of 90 meters length (east to
west) and 75 meters width (north to south) and occurs at an average
depth of 100 meters. Mineralization mainly consists of silver
sulphides (mostly tennantite), galena and sphalerite in the pores
of the sedimentary rocks and in breccias.</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<font style="color: #333333; background-color: #FFFFFF">&#xA0;</font><font style="background-color: #FFFFFF">Company
has undertaken studies (for production scenarios ranging from 200
to 500 tonnes per day) with the aim to bring Pulacayo into
production at minimum capital expense given the current challenging
metals market.</font> A positive production decision would not be
based on FS of mineral reserves demonstrating economic and
technical viability so would carry increased uncertainty and the
risk of failure as to the mining method and
profitability.</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">On
September 29, 2016, the Company announced its two-fold priority
objective and plans for definition drilling at the Pulacayo
Project. The objective includes: (i) Study the possibility of
commissioning Pulacayo and/or Paca to production at current metal
prices, part of which includes definition drilling; and (ii) Apply
modern exploration techniques (District-wide Three-Dimensional
Induced Polarization Program (which we refer to as &#x201C;3D
IP&#x201D;)) to the Pulacayo district to test mineralization found
during reconnaissance exploration. The definition drilling to
support any decision to commission Pulacayo and/or Paca to
production and detailed three-dimensional induced polarization
surveys were described. <font style="background-color: #FFFFFF">A
detailed presentation about the exploration and maps showing prior
sample location and assay results and proposed IP line locations
are available on</font> the Company&#x2019;s <font style="background-color: #FFFFFF">website.</font> A positive production
decision would not be based on a FS of mineral reserves
demonstrating economic and technical viability so would carry
increased uncertainty and the risk of failure as to the mining
method and profitability.</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="color: #000000; font-family: Times New Roman; font-size: 13px">Results
of the mineral resource estimate for the Paca deposit are presented
in the table 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
2017 Pulacayo Technical Report outlined 2.54 million tonnes at a
weighted average grade of Ag 256 g/t, Pb 1.03%, Zn 1.10% (Ag Eq.
342 g/t) in the inferred category. The contained metal content
estimated by the Company, of the inferred category resources is
20.9 million ounces of silver, 57.7 million pounds of lead, 61.6
million pounds of zinc (more resource details in the table
below).</font></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-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Paca Inferred Mineral Resource Statement Details</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>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td colspan="8" style="vertical-align: middle; width: 100%;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Paca Mineral Resource Statement &#x2013; Effective October 20,
2017</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>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 14%; border-bottom: 2px solid rgb(0, 0, 0);">
<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">Ag
Eq. Cut-Off (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Category</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Tonnes</font><font style="font-size: 70%; vertical-align: top; color: #000000">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Ag
(g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Pb
(%)</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Zn
(%)</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Ag
Eq. (g/t)</font></div>
</td>
<td style="vertical-align: top; width: 0%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 14%; background-color: rgb(204, 238, 255);">
<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">200</font></div>
</td>
<td style="vertical-align: middle; width: 11%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 16%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">2,540,000</font></div>
</td>
<td style="vertical-align: middle; width: 13%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">256</font></div>
</td>
<td style="vertical-align: middle; width: 13%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">1.03</font></div>
</td>
<td style="vertical-align: middle; width: 14%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">1.10</font></div>
</td>
<td style="vertical-align: middle; width: 20%; background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">342</font></div>
</td>
<td style="vertical-align: top; width: 0%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</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: left; margin-left: 72px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Notes:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">1)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">2)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">3)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(USD$0.94/ lb. Pb
/14.583 Troy oz./lb./USD$16.50 per Troy oz. Ag)*10,000) + (Zn%
*(USD$1.00/lb. Zn/14.583 Troy oz./lb./USD$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">4)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Metal prices used in the silver equivalent calculation are
USD$16.50/Troy oz. Ag, USD$0.94/lb Pb and USD$1.00/lb. Zn and
reflect those used for the Pulacayo deposit mineral resource
estimate reported above.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">5)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting 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: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">6)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
A block density factor of 2.26g/cm&#xB3; was used and reflects the
average of 799 density measurements.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">7)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="color: #000000">8)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 67px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">9)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-style: italic; font-size: 70%; vertical-align: top; color: #000000">
*</font><font style="font-style: italic; color: #000000">Tonnes are
rounded to nearest 10,000.</font></font></div>
</div>
</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">57</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
contained metals estimated by the Company based on the 2017
Pulacayo Technical Report are presented in the table
below.</font></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-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Contained Metals Based on October 20, 2017 Paca Deposit** Mineral
Resource Estimate</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="margin-left: 12px;">
<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:middle;padding-bottom:2px;width:19%;border-top:solid 1px #000000;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Metal</font></div>
</td>
<td rowspan="1" style="vertical-align:middle;width:81%;border-top:solid 1px #000000;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Inferred Resource</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:middle;width:19%;">
<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">Silver</font></div>
</td>
<td style="vertical-align:middle;width:81%;">
<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">20.9
million oz.</font></div>
</td>
</tr><tr>
<td style="vertical-align:middle;width:19%;">
<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">Lead</font></div>
</td>
<td style="vertical-align:middle;width:81%;">
<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">57.7
million lbs.</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:middle;width:19%;border-bottom:solid 2px #000000;">
<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">Zinc</font></div>
</td>
<td style="vertical-align:middle;width:81%;border-bottom:solid 2px #000000;">
<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">61.6
million lbs.</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: left; margin-left: 96px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
<font style="font-size: 70%; vertical-align: top; color: #000000">**</font><font style="color: #000000">Based
on the resource estimate Ag Eq. cut-off value of 200 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment</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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
resource estimate is based on results of 97 diamond drill holes and
1 reverse circulation drill hole totaling 18,160 meters completed
between 2002 and 2007. The geology of the Paca deposit includes a
core zone of feeder-style mineralization associated predominantly
with brecciated andesite, plus additional zones of shallowly
dipping mantos-style mineralization that are hosted by the
surrounding volcano-sedimentary sequence. The Paca deposit remains
open at depth and along strike. The Paca mineralization starts from
surface and the deposit may be amenable to open-pit mining and this
will be evaluated further in the future.</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">Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be
materially affected by environmental permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant
issues.</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">
Environmental</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
Company, through acquisition of ASC and later transfer of the
environmental license, has a valid and in force environmental
license issued by the Bolivian Ministry of Environment and Water
that is valid to 2023 for the Pulacayo licenses. The license allows
for construction of a mine and concentrator with capacities up to
560 tons per day. Granting of the environmental license includes
approval of the Environmental Impact Evaluation Study and
Environmental Base Line Audit. Bolivian environmental law absolves
the Company of environmental liability created by its
predecessors.</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">
Project Risks and Mitigation</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
major risks to developing the Pulacayo Project include the
inability to obtain financing, decreases in metal prices, and
adverse political and social changes. The inability to obtain
financing will be mitigated through pursuit of equity investors and
cash flow from sale of available material. The risk from decrease
in metal prices will be mitigated by the timing of the project in
that the start of the project is at the time of lowest metal prices
in several years and concentrate sales will start when metal prices
are projected to be much higher. Adverse political and social
changes are also mitigated by the timing of the project. The
national government has started to become much more supportive of
mining and recently the local government and population have shown
strong support for re-starting the mine.</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">
Exploration</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">Exploration was
conducted in mid to late 2016 at the Pulacayo and Paca deposits.
Mapping and sampling at the Pulacayo deposit was performed at the
AVS located approximately 200 meters west of the Rothschild shaft,
at a level 50 meters above the San Leon adit level (level 0, 4128 m
elevation). The principal vein measures 1.0 to 1.5 meters in width.
The strike and vertical extent of the principal vein are unknown.
The location of the AVS is approximately 600 meters west of the San
Leon adit and passes outside the western boundary of the area where
Apogee conducted 70,000 meters of drilling between 2005 and 2012,
and therefore was not included in the Pulacayo deposit resource
estimate disclosed in the 2017 Pulacayo Technical Report.
Additional sampling was completed at underground mining area 1
(which we refer to as &#x201C;UG1&#x201D;) where initial mining may
occur. UG1 is located at level 0 approximately 110 meters east of
the San Leon adit and within 100 meters from the Central shaft. UG1
measures approximately 117 meters in strike, 93 meters in width and
38 meters in height. A total of 22 samples were obtained from the
AVS and UG1 areas and sent for assay and the results received.
These results are presented in the table below. The samples were
obtained by continuous chip channel sampling across the width of
the vein mineralization at locations one meter apart.</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">58</font></div>
</div>
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</div>
</div>
<div><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">
UG1 and AVS Sample Assay Results</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="margin-right:0px;width:100%;font-size:inherit;font-family:inherit;margin-left:0px;">
<tr>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:17%;">
<div><br></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Ag</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Zn</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Pb</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:17%;">
<br></td>
<td colspan="1" rowspan="1" style="vertical-align:bottom;width:17%;">
<div><br></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Width</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; border-bottom: 2px solid rgb(0, 0, 0); margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<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-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">SampleID</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: center; font-family:Times New Roman;color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;font-weight:bold;width:75%;font-size:13px;">(g/t)</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;font-weight:bold;padding-bottom:2px;width:10%;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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
(%)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">Area</font></div>
</div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">Sampling
Method</font></div>
</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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
(m)</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1912</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,400</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18.4</font><font style="text-align: left; color:#000000;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; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">&gt;20.0</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1920</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">915</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">22.7</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.0</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1908</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">490</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">20.0</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.6</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1907</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">688</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14.7</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3.3</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.6</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1918</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">405</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21.6</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.4</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1906</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">432</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">15.9</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.8</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1911</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">583</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8.4</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7.0</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1919</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">732</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7.8</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.3</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1909</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">682</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6.1</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.8</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1910</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">261</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11.8</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.7</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1921</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">161</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8.4</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.6</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1917</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">291</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6.8</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.4</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1916</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">101</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9.9</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.3</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1915</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">67</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5.0</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.3</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.3</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1922</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">54</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.9</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.1</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1913</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">62</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.6</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.5</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1914</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">39</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.3</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.1</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">UG1</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1905</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">392</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">23.0</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12.0</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">AVS</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1904</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">284</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">17.6</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6.6</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">AVS</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1901</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">250</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6.3</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6.2</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">AVS</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1903</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">96</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7.7</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.7</font><font style="text-align: left; color:#000000;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:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">AVS</font></div>
</td>
<td style="vertical-align:bottom;width:17%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.5</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">m</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align: bottom; width: 17%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">1902</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color:#000000;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; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">17</font><font style="text-align: left; color:#000000;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-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color:#000000;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; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">5.7</font><font style="text-align: left; color:#000000;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-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color:#000000;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; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px; padding-bottom: 2px;">0.5</font><font style="text-align: left; color:#000000;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: 17%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">AVS</font></div>
</td>
<td style="vertical-align: bottom; width: 17%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="padding-bottom: 2px;">
<div>
<div style="text-align: center; text-indent:0px;margin-right:0px;padding-bottom:2px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">chip
channel</font></div>
</div>
</div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1</font><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">m</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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
samples including QA/QC samples, were delivered to ALS Bolivia
Ltda. located in Oruro, Bolivia for preparation after which splits
were sent the ALS laboratory located in Lima, Peru (we refer to
both locations collectively as &#x201C;ALS&#x201D;). ALS is an
independent laboratory and was qualified and retains current
accreditation by the ICONTEC and the Standards Council of Canada
for the methods used during the time the samples were prepared and
assayed. Normal QA/QC procedures were followed when handling and
processing the samples as described in the Company&#x2019;s Sample
Procedures, QA/QC for Sampling manual (QA/QC manual), National
Instrument 43-101 Standards of Disclosure for Mineral Projects, and
the Canadian Institute of Mining, Metallurgical and Petroleum
Engineers Exploration Best Practices Guidelines. These procedures
included use of a chain of custody to document possession, delivery
and security of the samples from the Company to the laboratory and
secure storage until transported. The laboratory was assessed to
ensure it has the technical qualifications for preparation and
assay of the type of sample and range in mineral content, follows
proper procedures to ensure correct sample identification and
security, and maintains confidentiality of assay results. Quality
control materials including a blank and certified reference
materials were included with the sample group for assay. Duplicate
assays were also performed. The quality control material assay
results were found within acceptable limits of the known values and
the duplicate assay results were within acceptable limits
supporting acceptance of the assay results of the samples. Access
to the analytical results was restricted to the chief executive
officer, chief geologist, vice president of operations, and general
mining manager. The information was verified by Christopher M.
Kravits CPG, LPG, the Company&#x2019;s &#x201C;Qualified
Person&#x201D; and Chief Geologist, through discussion with relevant
parties, review of documents and comparison to known values. There
were no limitations on verification. Mr. Kravits has reviewed and
approved the data and records supporting the above
statements.</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">59</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: 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">Geologic mapping
and sampling at 233 locations was completed in the historic Paca
mine drifts. The area is within the boundary of the Paca deposit
resource estimate disclosed in the Paca Technical Report but was
not included in the block model used to estimate resources. Because
of a backlog at the assay laboratory the Company prioritized the
most prospective 40 samples for assay. Thus, the assayed samples
are not representative of the sample population. These results,
shown in the table below, are taken from the first group of samples
the Company delivered. Samples were obtained by continuous chip
channel sampling across the width of the vein mineralization at
locations one meter apart.</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 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">
Summary of Paca Mine Drift Sample Assay Results</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="margin-left: 12px;">
<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:6%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Ag (g/t)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:6%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Zn (%)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:6%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Pb (%)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:6%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Ag Eq (g/t)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:6%;border-top:solid 1px #000000;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">Number
of Samples</font></font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Min</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Max</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Avg</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Min</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Max</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Avg</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Min</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Max</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Avg</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Min</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Max</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Avg</font></div>
</font><font style="text-align: left; padding-bottom:2px;width:10%;vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">40</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">15.0</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">1500.0</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">331.2</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">0.1</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">2.5</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">6.0</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">0.5</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">6.7</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">1.9</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">45.7</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">1617.0</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:6%;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">407.3</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; 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: 144px; margin-right: 86px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Silver assays include one sample assayed at &gt;1500 g/t and used
as 1500 g/t in the summary table. Silver equivalent (AgEq.)
calculations are based on the following closing prices as of August
9, 2016: USD$19.79/oz. for Ag, USD$1.03/lb. for Zn and USD$0.81/lb.
for Pb (London Metals Exchange spot prices). Metal recoveries are
assumed to be 100%.</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">Silver
equivalent (Ag Eq.) calculations were based on the following
closing prices as of August 9, 2016: USD$19.79/oz. for Ag,
USD$1.03/lb. for Zn and USD$0.81/lb. for Pb (London Metals Exchange
spot prices). Metal recoveries were assumed to be
100%.</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
samples were delivered to ALS Geochemistry Laboratory in Oruro,
Bolivia (which we sometimes refer to as &#x201C;ALS Bolivia&#x201D;)
for assay and included QA/QC samples. Standard reference, duplicate
and blank samples were used &#x2013; all of which, produced
acceptable results. ALS Bolivia is an independent laboratory and
was qualified and accredited by the ICONTEC and the Standards
Council of Canada for the methods used during the time the samples
were prepared and assayed. Records were maintained to document the
secure handling of the samples and to verify their identities were
maintained.</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">
Legacy Financial Obligations</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">As part
of the transaction with Apogee, we agreed to assume, within certain
limitations, all liabilities associated with the Apogee
Subsidiaries and the Pulacayo Project. During 2014, Apogee received
notice from the national tax authority in Bolivia alleging that its
wholly owned subsidiary ASC owes approximately Bs42,000,000
(equaling in an amount originally assessed at approximately
$7,600,000 in 2004) of taxes, interest and penalties relating to a
historical tax liability. The Company continued to dispute the
assessment and hired local legal counsel to pursue an appeal of the
tax authority&#x2019;s assessment on both substantive and procedural
grounds. On May 26, 2015, the Company received a positive
&#x201C;resolution&#x201D; issued by the Bolivian Constitutional
Court&#xA0;that declared null and void the previous resolution of
the Bolivian Supreme Court issued in 2011 and sent the matter back
to the Supreme Court to consider and issue a new
resolution.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">On December 4, 2019, the Company received the 2019
Resolution issued by the Supreme Court of Bolivia which declares
that the contentious tax claim of US$ 6,556,787 brought by
Bolivia&#x2019;s General Revenue Authority against</font> the
Company&#x2019;s <font style="color: #000000">Bolivian subsidiary
is</font> <font style="text-decoration: underline; color: #000000">not
proven</font><font style="color: #000000">.</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: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Concessions</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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Concession
relinquishments were concluded in early 2016. The project is now
comprised of two groups of contiguous mining concessions. The
largest group is centered over the town of Pulacayo and includes
the extent of the Pulacayo deposit, several potential mineralized
areas and tailings piles. The smaller group is centered over the
Paca deposit and includes potential mineralized areas and several
tailings piles. Both groups of concessions include area for future
surface facilities. The groups of concessions are located
approximately 2 kilometers apart. The relinquishments reduced the
total gross concession holdings to 3,560 ha. The figure below shows
the resulting concession holdings of the Company.</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%"><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">60</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 style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f007.jpg"></div>
<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;">&#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">Recent
Activities &amp; Updates</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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
2017</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Work
during fiscal year 2017 included updating of mining scenarios and
budgets, negotiations to resolve the legacy financial obligations,
and deliberations to obtain permission to restart the mine. The
Company has <font style="color: #000000">worked with government
officials to obtain assurances that our investments in exploring
and mining at the Pulacayo Project are safe. Such efforts included
a meeting with the Bolivian government&#x2019;s mining minister and
other mine operators, a meeting with the minister at the Embassy of
Canada and assistance in coordinating and preparing for his
participation in the 2017</font> <font style="font-style: italic; color: #000000">Prospectors &amp; Developers
Association of Canada (PDAC)</font> <font style="color: #000000">convention.</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 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">61</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
2018</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, the Company determined there were
several indicators of potential impairment of the carrying value of
the Pulacayo Paca property including change in the Company primary
focus to Gibellini Project. While management believes that Pulacayo
Project is a property of merit and warrants continued development,
a write down in accordance with <font style="font-style: italic">IFRS 6 Exploration for and Evaluation of
Mineral Resources</font> and <font style="font-style: italic">IAS
36, Impairment of Assets</font> of $13,708,200 of previously
capitalized deferred exploration costs to $nil and an impairment
charge of $335,181 on the Pulacayo mining equipment has been
recognized. This non-cash accounting charge does not impact the
Company&#x2019;s financial liquidity, or any future operations and
management believes the adjustment to the book value of this
long-lived asset more accurately reflects the Company&#x2019;s
current market capitalization.</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
2019</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="color: #404040; font-family: Times New Roman; font-size: 13px">In
September 2019 the Company started 5,000-meter diamond drilling at
Pulacayo which include Phase 1 and Phase 2 Drilling programs as
follows.</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; color: #404040; font-family: Times New Roman; font-size: 13px">
Phase 1 Drilling</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="color: #404040; font-family: Times New Roman; font-size: 13px">To
be comprised of surface drilling to expand the NI43-101 compliant
Paca resource (see Company&#x2019;s news release dated November 22,
2017) in the northern and eastern directions where previous drill
holes encountered high grade surface intercepts, including PND-062,
which included 42 meters of 406 g/t Ag located on the edge of the
resource envelope. The Company will also evaluate upgrading the
Paca resource from an Inferred category to Measured and Indicated
categories through infill drilling. Some of the high grade zone
extensions being explored are shown below:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left"><font style="font-weight: bold; color: #404040; font-family: Times New Roman; font-size: 13px">
hole N&#xBA;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#404040;">
from - to (m)</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#404040;">
int (m)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#404040;">
Ag (g/t)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#404040;">
Pb (%)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#404040;">
Zn %</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #404040; font-family: Times New Roman; font-size: 13px">
PND008</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">18.0 &#x2013; 33.5</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">15.5</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">314</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.4</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #404040; font-family: Times New Roman; font-size: 13px">
PND029</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">12.0 &#x2013; 22.3</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">10.3</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">436</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #404040; font-family: Times New Roman; font-size: 13px">
PND062</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">10.0 &#x2013; 52.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">42.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">406</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.8</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.1</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 50%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #404040; font-family: Times New Roman; font-size: 13px">
ESM2</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.0 &#x2013; 38.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">38.0</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">411</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.4</font><font style="text-align: left; color: rgb(64, 64, 64); 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: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div><font style="text-align: left; color: rgb(64, 64, 64); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(64, 64, 64); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.2</font><font style="text-align: left; color: rgb(64, 64, 64); 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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; color: #404040; font-style: italic; font-family: Times New Roman; font-size: 13px">
Phase 2 Drilling</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="color: #404040; font-family: Times New Roman; font-size: 13px">Phase
2 Pulacayo surface drilling is scheduled to commence in November,
2019. The plan is to expand the Pulacayo resource base along strike
from 1km to 3km and at depth from 300m to 600m. There will also be
infill drilling to confirm the geological model and test continuity
of shallow high grade indicated resource blocks that are near the
San Leon tunnel and accessible through the existing adit. Some of
the high grade zone extensions being explored are shown
below:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
hole N&#xBA;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
from - to (m)</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
int (m)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Ag (g/t)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Pb (%)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Zn %</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Distance from adit (m)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align: bottom; width: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD005</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">96.2 &#x2013;
108.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">11.9</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">689</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.9</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.4</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-67.5</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
PUD007</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">70.0 &#x2013; 96.8</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">26.8</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">517</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">2.3</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">4.2</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-44.5</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD057</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">374.0 &#x2013;
378.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">4.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1,184</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.8</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">2.3</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-137.5</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD069</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">281.0 &#x2013;
294.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">13.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">624</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">2.1</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">4.2</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-46.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD109</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">293.6 &#x2013;
298.4</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">4.8</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">3,607</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">3.8</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">4.1</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-30.4</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD118</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">174.0 &#x2013;
184.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">10.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1,248</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.7</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">2.6</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-93.9</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD134</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">128.2 &#x2013;
151.5</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">23.3</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">514</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.3</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">1.9</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-55.7</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD150</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">290.0 &#x2013;
302.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">11.2</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">882</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.4</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.6</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-75.2</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD159</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">343.0 &#x2013;
354.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">11.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">790</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.6</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.6</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-116.6</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 40%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
PUD170</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">237.0 &#x2013;
239.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">2.0</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">3,163</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.1</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">0.9</font><font style="text-align: left; color: rgb(0, 0, 0); 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: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div><font style="text-align: left; color: rgb(0, 0, 0); font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 10%; font-size: 13px;">&#xA0;</font><font style="text-align: left; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 5%; font-family: Times New Roman; font-size: 13px;">&#xA0;</font><font style="text-align: right; color: rgb(0, 0, 0); vertical-align: bottom; display: inline-block; width: 75%; font-family: Times New Roman; font-size: 13px;">-32.5</font><font style="text-align: left; color: rgb(0, 0, 0); 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 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">62</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><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="color: #404040; font-family: Times New Roman; font-size: 13px">The
technical contents of the above phase I and Phase 2 Drilling were
prepared under the supervision of Danniel Oosterman, VP
Exploration. Mr. Oosterman is not independent of the Company in
that he is employed by the Company. Mr. Oosterman is a Qualified
Person (&#x201C;QP&#x201D;) as defined by the guidelines in NI
43-101. AgEq cutoffs discussed in this release are based on the
following formula: AgEg. (g/t) = Ag (g/t)*89.2% + (Pb%
*(US$0.94/lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9%). Metal prices used
in the silver equivalent calculation are US$16.50/Troy oz. Ag,
US$0.94/lb. Pb and US$1.00/lb. Zn.</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"><font style="color: #000000">On October 7, 2019, the Company announced that the
MPC between itself and COMIBAL was executed on October 3, 2019. The
MPC grants the Company the 100% exclusive right to develop and mine
at the Pulacayo and Paca concessions for up to 30 years.</font>
<font style="color: #000000; background-color: #FFFFFF">It is
comparable to a mining license in Canada or the United
States.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
December 2019 the Company started its phase two drilling program
which consists of a 5,000-meter program that will consist mainly of
wide step-out drilling up to 1.5 km west (Western Block) of the
current 43-101 Pulacayo resource. That current Pulacayo resource
covers 1.4 km in strike and <font style="background-color: #FFFFFF">represents only a small portion of the
TVS which is over 3 km in strike and open to least 1,000 meters at
depth, according to historical records of underground
mining.</font> The Pulacayo deposit currently has a NI43-101
compliant resource of 2.08 million tonnes at Ag 455 g/t, Pb 2.18%,
Zn 3.19% in the indicated category. It also has 0.48 million tonnes
at Ag 406 g/t, Pb 2.08%, Zn 3.93% in the inferred category. The
Company estimates that the amounts of metals of the indicated
category are 30.4 million ounces of silver, 100.0 million pounds of
lead, and 146.3 million pounds of zinc. The Company estimates that
the amounts of metals of the inferred category are 6.3 million
ounces of silver, 22.0 million pounds of lead, and 41.6 million
pounds of zinc (see the Company&#x2019;s report &#x201C;UPDATED
MINERAL RESOURCE ESTIMATE TECHNICAL REPORT for the PULACAYO
PROJECT,&#x201D; by Mercator effective October 20, 2017; available
at www.sedar.com).</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company incurred total costs
of $1,474,026 (same period 2018 - $898,650) for the Pulacayo
Project including for $970,955 (2018 - $51,112) for geological and
engineering services, $503,071 (2018 - $847,538) for personnel,
legal, general and administrative 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company assessed whether
there was any indication that the previously recognized impairment
loss in connection with the Pulacayo Paca property <font style="color: #0D0D0D">may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:</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: 28px">
<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 Company signed
a mining production contract granting the Company the 100%
exclusive right to develop and mine at the Pulacayo Paca
property;</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<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="color: #000000; font-family: Times New Roman; font-size: 13px">The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<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"><font style="color: #000000">The Company re-initiated active exploration and
drilling program on the property</font>;</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<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">Completed a
positive final settlement of Bolivian tax dispute (note
27).</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">As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property.</font></div>
<div style="text-align: justify; margin-left: 480px; 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">In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property&#x2019;s fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.</font></div>
<div style="text-align: justify"><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">With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.</font></div>
<div style="text-align: justify"><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 also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.</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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-family: Times New Roman; font-size: 13px">As the recoverable
amount estimated with respect to the above was $31.4 million an
impairment recovery of $13,708,200 was recorded during the year
ended December 31, 2019.</font></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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property. The recoverable
amount was determined using level 3 inputs on the fair value
hierarchy. In order to estimate the fair-value of the property, the
Company engaged a third-party valuation consultant to value the
property. The weighted average estimated fair-value of the Pulacayo
Property with weighting from 20%-50% was $29.7 million.
Accordingly, an impairment recovery of $13,708,200 was recorded
during the year ended December 31, 2019 in connection with the
Pulacayo Paca property.</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;"><font style="font-style: italic">
<font style="text-decoration: underline">2020</font></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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">On
January 8, 2020 the Company provided an update which highlighted
the following.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 28px">
<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">December 2019:
completion of the first 3 holes of the planned 17 drill holes at
the Pulacayo. These step-out drill holes are located 25-, 50- and
115 meters west of the existing Pulacayo resource
model.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 28px">
<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 Company has
mobilized a second drilling rig to Pulacayo and expects to complete
the proposed 5,000 meter drill program in February 2020 with full
assay results available by March 2020. The remainder step out drill
holes are collared up to 2km west from the existing resource
model.</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="color: #000000; font-family: Times New Roman; font-size: 13px">In
January 2020, the Company announced the first step-out diamond
drilling results from the Pulacayo silver project. PUD 267 marks
the Company&#x2019;s first Pulacayo drill hole of the 2020 drilling
campaign and the first drilling to be conducted on the property
since 2012. A total of 268 historic Pulacayo drill holes were
completed between 2008 and 2012 by the previous operator. The
results of PUD 267 comes on the back of the success of the
Company&#x2019;s first drill campaign at Paca (7km north of
Pulacayo), where PND 110 intersected highest-ever grade at Paca of
12 meters of mineralization grading 1,085g/t silver, starting 16
meters downhole. These near-surface, high-grade intersections
contribute positively to a potential district-style project
economic assessment with consideration of open-pit mining
scenarios. There are several other targets controlled by the
Company within the district that are yet to be drilled but highly
promising (e.g., Pacamayo, Al Abra, and Pero).</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">PUD 267
intercepted the TVS 83 meters west from PUD 041 which <font style="color: #000000">intersected 20 meters of mineralization grading
15.1g/t Ag, 2.43%Zn, 0.76% Pb at a similar depth to the
mineralization encountered at PUD 267</font>. PUD 041 (drilled in
2008) <font style="color: #000000">represents the westernmost
drillhole that comprises the Company&#x2019;s 2017 NI43-101
compliant Pulacayo resource (&#x201C;Eastern Block&#x201D;). These
results confirm that the TVS extends westward and occurs
near-surface, with a probable thickening component for a minimum
83-meter extension to the west of the Eastern
Block.</font></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">63</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><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="color: #000000; font-family: Times New Roman; font-size: 13px">PUD
267 was planned based on a vertical projection of Pulacayo&#x2019;s
historic underground workings which followed the TVS. These
workings exist between 400 meters and 1,000 meters from the surface
with mined grades of 10% to 25% Zn and 300g/t to 800g/t Ag
(according to Hochschild mining records from 1914 to 1960). The
results of PUD 267 reveal strong potential for existing
mineralization from near-surface in the intervening depths to the
workings approximately 400 meters 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
current 20-hole, 5,000 meter step-out program of which 2,598 meters
was completed in early February 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Complete
composited drill intersections of significant mineralization (in
meters) are tabulated below:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Hole ID</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
From (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
To (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Interval (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Zn (%)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Pb (%)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
AgEq</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Target</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD267*</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
31.5</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
67</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
35.5</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
54.3</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
4.31</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
0.92</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
229.6</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
West</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
117</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
123</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
6.0</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
47.8</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
1.11</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
0.25</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
89.7</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
West</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD268</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
21</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
23</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
2</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
20</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
1.34</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
0.77</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
92.6</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
West</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
75</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
77</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
2</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
93.5</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<div style="text-align: left"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
0.42</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
98.8</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
East</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 11%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
82</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
83</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
1</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
83</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
0.09</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-bottom: 2px solid #000000">
<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">
77.4</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
East</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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 61% of reported core lengths. Silver equivalent is
calculated as follows: Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb%
*(US$0.94/ lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9). This calculation
incorporates metallurgical recoveries from test work completed for
Pulacayo in 2013.</font></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="color: #000000; font-family: Times New Roman; font-size: 13px">
Header information for Drillholes</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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 #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Hole ID</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Azimuth</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Dip</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Depth (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Easting</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Northing</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-top: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
AMSL</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD267</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739823.4</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744735</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4336</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD268</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
192</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739866</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744723</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4366</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD269</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
210</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739750</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744727</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4321</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD270</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
201</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739626</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744618</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4284</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD271</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
156</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739670</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744655</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4293</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD272</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
300</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739540</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744860</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4329</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD273</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
201</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739343</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744869</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4385</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
200</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-65</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
95</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
741031</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744391</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4237</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD275</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
161</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739481</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744625</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4357</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD276</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
201</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739467</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744416</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4267</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD277</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
21</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-55</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
72</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
741196</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744229</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4181</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD278</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
120</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739170</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744599</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4317</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD279</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
130</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
737933</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744679</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4346</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD280</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
113</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739024</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744538</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4344</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD281</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739661</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7745113</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4396</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 12%; border-left: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
PUD282</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
0</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
-45</font></div>
</td>
<td style="vertical-align: bottom; width: 19%; border-bottom: 2px solid #000000">
<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">
86.4</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
739180</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-bottom: 2px solid #000000">
<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">
7744380</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-right: 0.5pt solid #000000; border-bottom: 2px solid #000000">
<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">
4296</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">Complete drill map and result cross sections can
be accessed</font> <font style="text-decoration: underline">www.silverelef.com/company-presentation</font>
and <font style="text-decoration: underline; color: #000000">www.silverlef.com/projects/pulacayo-silver-lead-zinc/</font><font style="text-decoration: underline; color: #000000">.</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 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">64</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-family: Times New Roman; font-size: 13px"><font style="color: #000000">The technical contents of above was prepared under
the supervision of Danniel Oosterman, VP Exploration (&#x201C;Mr.
Oosterman&#x201D;). Mr. Oosterman is not independent of the Company
in that he is employed by it. Mr. Oosterman is a qualified person
(&#x201C;QP&#x201D;) as defined by the guidelines in NI 43-101.
T</font>he Company <font style="color: #000000">adopts
industry-recognized best practices in its implementation of QA/QC
methods. A geochemical standard control sample and a blank sample
are inserted into the sample stream at every 20th sample.
Duplicates are taken at every 40th sample. Standards and duplicates
(including lab duplicates and standards) are analyzed using
Thompson-Howarth plots. Samples are shipped to ALS Global
Laboratories in Ururo, Bolivia for preparation and then shipped to
ALS Global laboratories in Lima, Peru for analysis. Samples are
analyzed using Intermediate Level Four Acid Digestion. Silver
overlimits (&#x201C;ore grade&#x201D;) are analyzed using fire assay
with a gravimetric finish. The ALS Laboratories sample management
system meets all the requirements of International Standards
ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub
laboratories are accredited to ISO/IEC 17025:2017 for specific
analytical procedures. All samples are taken from HQ-diameter core
and split in half by a diamond-blade masonry saw. One-half of the
core is submitted for laboratory analysis and the other half is
preserved for reference at the Company&#x2019;s secured core
facility. Prior to sampling, all core is geotechnically analyzed
and photographed and then logged by geologists.</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: 0px; text-indent: 0px">
<font style="color: #000000; font-style: italic; font-family: Times New Roman; font-size: 13px">
Planning 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: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s objectives in 2020 is to drill and expand the
Pulacayo silver resource base which open to the west and at depth,
as well as drill district-scale targets (Paca, Al Abra, Pero,
Pacamayo) and to increase investor awareness.</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s goals for 2020 include:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Refurbish
portions of the existing mine workings</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expand
the Pulacayo resource footprint</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Phase
I drill program</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Test
surface targets adjacent to existing workings</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Test
depth of mineralization with initial deep fan</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Compile
a production profile for Pulacayo</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expand
the Paca resource footprint</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Phase
II drill program</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Test
extent of manto/conglomerate formation</font></div>
</div>
</div>
<div style="display: table; margin-left: 33px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Update
Pulacayo/Paca Technical Report</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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Non
Material Properties</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-weight: bold; font-family: Times New Roman; font-size: 13px">
Coal Projects</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-style: italic; font-family: Times New Roman; font-size: 13px">
Ulaan Ovoo Coal Property, Mongolia</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company acquired a 100 % interest in the Ulaan Ovoo Property
located in the territory of Tushig soum of Selenge aimag (province)
in Northern Mongolia in 2010 from a private Mongolian company. On
November 9, 2010, the Company received the final permit to commence
mining operations at the Ulaan Ovoo Property. The focus of the
Ulaan Ovoo PFS was for the development of low ash coal reserves in
the form of a starter pit. During 2014, the Company faced
challenges, such as significant dewatering of the resource, lack of
demand, depressed coal sales prices, and higher than expected
operating/transportation costs, resulting in limited production
throughout the period. Pit dewatering has become a significant
impediment to achieving consistent production, especially following
mine standby during the periods of low market demand. The mine was
placed on standby in Spring 2014 but continued coal loading and
sales from the existing stockpiles. Due to the lack of sustained
production, management has not sufficiently tested the mine plant
and equipment to conclude that the mine has reached the commercial
production stage. During the beginning of 2015, due to minimal
increase in coal prices and decreased demand because of a mild
winter, the Company decided to maintain the operations on standby
though coal loading and sales from existing stockpiles continued to
customers. The Company decided to sell the mining equipment to
generate cash so that operations may continue.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
April 2015, the Company, through its wholly-owned subsidiary, Red
Hill, entered into a purchase agreement with an arm&#x2019;s-length
party in Mongolia to sell substantially all of its mining and
transportation equipment at the Ulaan Ovoo Property for total
proceeds of approximately $2.34 million. The sale of equipment was
completed in June 2015. Total proceeds (including the sale of
equipment to other arm&#x2019;s-length parties) amounted to $2.9
million in cash. The Ulaan Ovoo Property ceased pre-commercial
operations in June 2015, The Company continued to maintain the
Ulaan Ovoo Property operations on standby, incurring minimal
general and administrative costs.</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">65</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 16, 2018, the Company executed a lease agreement (the
&#x201C;Lease&#x201D;) with an arms-length private Mongolian company
(the &#x201C;Lessee&#x201D;) whereby the Lessee plans to perform
mining operations at Ulaan Ovoo Property and will pay the Company
USD$2.00 (the &#x201C;Production Royalty&#x201D;) for every tonne of
coal shipped from the Ulaan Ovoo Property&#x2019;s site premises.
The Lessee paid the Company USD$100,000 in cash, as a
non-refundable advance royalty payment and is preparing, at its own
and sole expense, to restart and operate the Ulaan Ovoo Property
with its own equipment, supplies, housing and crew. The Lessee will
pay all government taxes and royalties related to its proposed
mining operation. The Lease is valid for 3 years with an annual
advance royalty payment (&#x201C;ARP&#x201D;) for the first year of
USD$100,000 which was due and paid upon signing, and USD$150,000
and USD$200,000 due on the 1st and 2nd anniversary of the Lease,
respectively. The ARP can be credited towards the USD$2.00 per
tonne Production Royalty payments to be made to the Company as the
Lessee starts to sell Ulaan Ovoo coal. <font style="color: #212121">The 3-year Lease can be extended upon mutual
agreement.</font> Since the signing of the Lease, the Lessee has
spent approximately USD$700,000 on supplies, housing and crew and
restarted Ulaan Ovoo Property with its own equipment in March 2018
reporting approximately 21,000 tonnes of coal production and sales.
Lessee plans to start double shifts in April to meet
demand.</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
March 2019 was the startup of the Ulaan Ovoo Property and
approximately 21,000 tonnes of coal production and sales. The Ulaan
Ovoo Property has the production capacity of 2 million tonnes per
year and is a fully-permitted large coal field featuring a single,
massive coal seam of 40 to 80 metre thickness outcropping at
surface with a low strip ratio carrying minimal technical
risk.</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"><font style="color: #000000">In June 2019</font> the <font style="color: #000000">Ulaan Ovoo</font> Property <font style="color: #000000">achieved record monthly coal production of 37,800
tonnes.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">The Ulaan Ovoo</font> Property <font style="color: #000000">was commissioned in March 2019, however the
operation was stopped in April and May due to the late approval of
2019 environmental plan. The approval was issued in June
2019.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
the date of this Annual Report, pursuant to the Production Royalty
Agreement the Lessee has spent approximately USD$700,000 on
supplies, housing and crew, and the Lessee restarted Ulaan Ovoo
Property with its own equipment.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Chandgana Project, Mongolia</font></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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Chandgana Project consist of the Chandgana Tal property and the
Khavtgai Uul property (formerly named Chandgana Khavtgai) which are
within nine kilometres of each other in the Nyalga Coal Basin in
east central Mongolia and approximately 280 kilometres east of
Ulaanbaatar. On November 22, 2006 the Company (then Red Hill Energy
Inc.) entered into a letter agreement with a private Mongolian
company that set out the terms to acquire a 100% interest in the
Chandgana Tal property. On August 7, 2007, the Company (then Red
Hill Energy Inc.) entered into a letter agreement with another
private Mongolian company that set out the terms to acquire a 100%
interest in the Khavtgai Uul property. Under the terms of the
Chandgana Khavtgai agreement, the Company paid a total of
USD$570,000. On February 8, 2011, the Company received a full
mining license from the Mineral Resources Authority of Mongolia for
the Chandgana Tal property. The license can be updated to allow
mining of 3.5 million tonnes per year to meet the demand of the
Chandgana Power Plant within 90 days.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
2007, the Company performed geologic mapping, drilling and
geophysical surveys of the Chandgana Tal and Khavtgai Uul
properties. During June, 2010, The Company completed a 13 drill
hole, 2,373 metre resource expansion drilling program on the
Khavtgai Uul property, including 1,070 metres of core drilling, and
five lines of seismic geophysical survey for a total of 7.4 line
kilometres. The Company completed a 15 drill hole program during
June-July 2011 to better define the coal resource of the Chandgana
Tal licenses.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Chandgana Tal property has been mined previously and occasionally
during the Company&#x2019;s tenure to meet local demand. The Company
decided not to mine during the 2017- 2018 heating season because of
insufficient demand. A dry lake was determined by the Ministry of
Environment to overlap onto one of the Chandgana Tal licenses as
determined under the Mongolian Law to Prohibit Mineral Exploration
and Mining Operations at Headwaters of Rivers, Protected Zones of
Water Reservoirs and Forested Areas (the &#x201C;<font style="font-weight: bold">Long Named Law</font>&#x201D;) but was resolved
without loss to the Company. The Khavtgai Uul property has never
been mined. The Ministry of Environment determined that a dry lake
overlapped the Khavtgai Uul license as defined under the Long Named
Law. This was resolved by removing the lake area from the license
while not affecting the coal resource and mineability. The Company
will continue to monitor the developments and ensure that it
follows the necessary steps in the Amended Law on Implementation to
secure its operations and licenses and is fully compliant with
Mongolian law.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">66</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
2017, preparatory work to convert the Khavtgai Uul exploration
license to a mining license was completed. The Company engaged a
contractor to prepare the required documents to convert the license
to a mining license under which the right to explore is permanent.
In 2017, as preparatory work to convert the Khavtgai Uul
exploration license to a mining license necessary laboratory
analysis work was done such as coal chemical, mineral and element
analysis of duplicates of coal samples taken as a result of
drilling work in past years as well as radiation analysis of coal
ash. A report describing the results of geological and exploration
work completed during 2017 was delivered to Geological division of
Mineral Resources and Petroleum Authority of Mongolia (the former
Mineral Resources Authority of Mongolia (MRAM)). Based on previous
years of work a report of the reserves of the licensed area was
prepared, and an official letter requesting an expert be appointed
were submitted to the Mineral Resources Professional Council in
January 2018.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
2017 activities for the Chandgana Tal project included payment of
license fees and environmental sampling and reporting. No
exploration was completed on the Chandgana Tal licenses. The
Company assessed the local market for coal and found there was not
sufficient demand to warrant mining during the 2017-2018 heating
seasons. Thus, the annual mining and environmental plans were not
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company determined there were
several indicators of potential impairment of the carrying value of
the Chandgana Project. The indicators of potential impairment were
as follows:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 68px">
<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">a decreased coal
demand from local customers;</font></div>
</div>
</div>
<div style="display: table; margin-left: 68px">
<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">no positive
decision from the Mongolian Government to construct the Chandgana
Power Plant;</font></div>
</div>
</div>
<div style="display: table; margin-left: 68px">
<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">no further
exploration for evaluation in the area planned; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 68px">
<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">a change in the
Company&#x2019;s primary business focus to the Gibellini
Project.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As
result, in accordance with <font style="font-style: italic">IFRS 6,
Exploration for and Evaluation of Mineral Resources</font> and
<font style="font-style: italic">IAS 36, Impairment of
Assets</font>, at December 31, 2017, the Company assessed the
recoverable amount of the Chandgana Project deferred exploration
costs and determined that its value in use is $Nil. As at December
31, 2017, the recoverable amount of $Nil resulted in an impairment
charge of $14,733,067 against the value of the deferred exploration
costs, which was reflected on the consolidated statement of
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
Khavtgai Uul project, the Company intends to continue with work to
convert the license to a mining license and complete the
requirements to maintain the license. For the Chandgana Tal
project, the Company intends to discuss the need to update the
detailed environmental impact assessment and mining FS with the
relevant ministries and complete the requirements to maintain the
licenses.</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="i4a">I</a>TEM 4A. UNRESOLVED STAFF COMMENTS</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">Not
applicable.</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="i5">I</a>TEM 5. OPERATING AND FINANCIAL REVIEW AND
PROSPECTS</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion of the financial condition, changes in
financial condition and results of operations of the Company should
be read in conjunction with our consolidated financial statements
and related notes included in this Annual Report. The discussion
contains forward-looking information (as previously defined) which
are subject to numerous risks and uncertainties, as more fully
described elsewhere in this Annual Report under the heading
&#x201C;<font style="font-style: italic">Cautionary Note Regarding
Forward-Looking Statements</font>.&#x201D;</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2019 compared with Year Ended December 31,
2018.</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-family: Times New Roman; font-size: 13px">We
reported a net gain of $17.5 million ($0.17 gain per share) for the
year ended December 31, 2019, which represents a decreased loss of
$35.7 million when compared to the year 2018 ($0.23 loss per
share). The decrease in net loss was primarily due to an impairment
reversal of 13.7 million for Pulacayo property and a write-off the
Bolivian tax liability of $8 million in 2019 compared to impairment
charges of $18.2 million in 2018.</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-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2019, we incurred operating expenses of
$3,505,562 compared to $3,298,383 for 2018.</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">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">67</font></div>
</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-family: Times New Roman; font-size: 13px">The
$207,179 increase in operating expenses when compared to the year
2018 was due to a few factors. Advertising and promotion expenses
increased by $322,952 due to increased promotion efforts in the
U.S. and Europe to raise market awareness and to raise equity
financing. We incurred higher marketing costs because the Company
is working with the financial community to make its projects known.
Investor relations remains a priority due to the ongoing need to
attract investment capital. Consulting and management fees
decreased by $4,058. General and administrative costs comprising
head office costs including salaries, directors&#x2019; fees,
insurance and costs related to maintaining the Company&#x2019;s
exchange listings and complying with securities regulations.
General and administrative expenses decreased by $71,107 in the
year 2019 compared to the year 2018. Professional fees decreased by
$200,290, which was mainly due to reduced legal fees. Share-based
payments costs are non-cash charges which reflect the estimated
value of stock options granted. We use the fair value method of
accounting for stock options granted to directors, officers,
employees and consultants whereby the fair value of all stock
options granted is recorded as a charge to operations over the
period from the grant date to the vesting date of the option. The
fair value of common share options granted is estimated on the date
of grant using the Black-Scholes option pricing model. The increase
in share-based payments in 2019 by $154,372 compared to 2018 was
primarily related to the decrease in the number of options earned
during the year 2019 compared to the year 2018. Travel and
accommodation expenses slightly increased by $5,310. The Company
incurred additional travel expenses as it actively pursues the
Pulacayo and Gibellini projects moving toward production and seeks
financing.</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-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2019, we incurred other expenses classified
as &#x201C;Other Items&#x201D; amounting to a gain of $21,019,416
compared to a loss of $14,866,085 for the year 2018.</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-family: Times New Roman; font-size: 13px">The
decrease in loss of Other Items by $35,905,501 in the year 2019
compared to the year 2018 is the net result of changes to a number
of the following items:</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: 47px">
<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">in the year 2019
costs in excess of recovered coal for Ulaan Ovoo increased by
$26,019 compared to the year 2018 due to increased activities at
Ulaan Ovoo coal mine in Mongolia ;</font></div>
</div>
</div>
<div style="display: table; margin-left: 47px">
<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">foreign exchange
loss increased by $30,540 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
boliviano and Mongolian tugrik;</font></div>
</div>
</div>
<div style="display: table; margin-left: 47px">
<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">in the year 2019,
the Company recorded an impairment recovery of $13,708,200 on its
Pulacayo and impairment charges of $51,828 and $16,304 on prepaid
expenses and receivables respectively.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 72px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In the
year 2018, the Company recorded a total of $13,994,970 impairment
charges on its Pulacayo property and Chandgana Coal property
incurred expenses, an impairment charge of $425,925 on Bolivian
mining equipment, and impairment charges of $26,234 and $21,004 on
prepaid expenses and receivables respectively.</font></div>
<div style="display: table; margin-left: 47px">
<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">in the year 2018,
the Company sold 2.7 million shares of a public company for a
realized loss of $91,890. In the year 2017, the Company sold of 2.2
million Lorraine Copper Corp. shares for a realized loss of
$22,810.</font></div>
</div>
</div>
<div style="display: table; margin-left: 47px">
<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">in the year 2019,
the Company recorded a write off Bolivian tax liabilities of
$7,952,700 due to the decision of the Supreme Court of Bolivia to
discharge the Company of the contentious tax claim.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2018 compared with Year Ended December 31,
2017.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
reported a net loss of $18.2 million ($0.23 loss per share) for the
year ended December 31, 2018, which represents a decreased loss of
$0.4 million when compared to the same period in 2017 ($0.33 loss
per share). The decrease in net loss was primarily due to lesser
impairment charges of 14.5 million (2017 -$15.1 million) mostly
attributable to our non- core Bolivian property.</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">Our
annual operating expenses increased to $3.3 million in the fiscal
year 2018 compared to $2.4 million in the fiscal year
2017.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
increase by $0.9 million in operating expenses during the fiscal
year 2018 compared to the fiscal year 2017 was a result of the
overall increased activity levels of the Company related to the
acquisition of vanadium properties in Nevada and equity financings.
Notably our advertising and promotion expenses increased by
$369,718 due to increased promotion efforts in the US and Europe to
raise market awareness and to raise equity financing. The Company
incurred higher marketing costs because the Company is working with
the financial community to make its project known. Investor
relations remains a priority due to the ongoing need to attract
investment 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
consulting and management fees decreased by $496,002 in the year
2018 compared to the year 2017. The Company significantly reduced
external consulting services used during the fiscal year 2017
related to acquiring the Gibellini Project and hiring Skanderbeg
Capital Advisors Inc. to explore and evaluate strategic
alternatives. The amount of this decrease was partially offset by a
higher amount of internal consulting expenses due to hiring a new
Vice-President, Exploration and restored the Company interim CEO
previously reduced fees.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
general and administrative costs comprising head office costs
including salaries, directors&#x2019; fees, insurance and costs
related to maintaining the Company&#x2019;s exchange listings and
complying with securities regulations. General and administrative
expenses increased by $721,988 in the fiscal year 2018 compared to
the fiscal year 2017. The increase was the result of increased
salaries due to hiring a new President and CEO and restoring
salaries for officers of the Company, increased stock exchange and
shareholders&#x2019; services due to increased financing
activities.</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">68</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
professional fees increased by $233,972. The increase was mainly
due to increased legal, accounting and audit services related to
the Gibellini Project activities and the recently completed bought
deal 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
travel and accommodation expenses increased by $133,029. The
Company incurred additional travel expenses as it actively pursued
the Gibellini Project moving toward production. Additionally,
non-cash share-based expenses decreased in the fiscal year 2018 by
$45,687 compared to the fiscal year 2017 due to the decrease in the
number of options earned during the fiscal year 2018. The Company
uses the fair value method of accounting for stock options granted
to directors, officers, employees and consultants whereby the fair
value of all stock options granted is recorded as a charge to
operations over the period from the grant date to the vesting date
of the option. The fair value of common share options granted is
estimated on the date of grant using the Black-Scholes option
pricing model.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2018, we incurred other expenses classified
as &#x201C;Other Items&#x201D; amounting to $14,886,085 compared to
$16,211,616 for the fiscal year 2017. The decrease by $1,325,531 in
the fiscal year 2018 is the net result of changes to a number of
the following items: costs in excess of recovered coal for Ulaan
Ovoo decreased by</font> <font style="font-family: Times New Roman; font-size: 13px">$14,852 due to
changes at Ulaan Ovoo Property in Mongolia related to a lease
agreement with an arms-length private Mongolian company which plans
to perform mining operations at Ulaan Ovoo Property in the first
fiscal quarter 2019 with its own equipment and resources; foreign
exchange loss increased by $224,199 due to fluctuations in the
value of the Canadian dollar compared to the United States dollar,
Bolivian Boliviano and Mongolian Tugrik; we recorded a total of
$13,994,970 impairment charges on our non-core Pulacayo Property
and Chandgana Coal property incurred expenses, an impairment charge
of $425,925 on Bolivian mining equipment, and impairment charges of
$26,234 and $21,004 on prepaid expenses and receivables
respectively; we sold 2.7 million shares of a public company for a
realized gain of $91,890;we earned $50,000 from a debt settlement
with Nickel Creek Platinum Corp.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
total assets decreased by $9.1 million from $18.4 million in the
year 2017 to $9.3 million in the year 2018. The decrease was mainly
due to a write-off the non-core Pulacayo Property and its mining
equipment. Current assets increased by $1 million from $4.5 million
in the year 2017 to $5.5 million in the year 2018. The increase was
mainly due to the</font> <font style="font-family: Times New Roman; font-size: 13px">$5.2 million net
proceeds received from the bought deal financing in Q4
2018.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s total liabilities at December 31, 2018 were $10
million compared to $9.7 million at December 31, 2017. The increase
in liabilities was mainly due to a foreign exchange fluctuation of
Canadian Dollar against Bolivian Boliviano related to Bolivian tax
provision.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2017 compared with Year Ended December 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We
reported a net loss of $18.6 million ($0.33 loss per share) for the
fiscal year ended December 31, 2017, which represents an increased
loss of $16.6 million when compared to the same period in 2016
($0.05 loss per share). The increase in net loss was primarily due
to a $14.8 million write-off on our non-core Mongolian coal
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
annual operating expenses increased to $2.4 million in the fiscal
year 2017 compared to $1.3 million in the fiscal year 2016. The $1
million increase was due to increased activities related to the
acquisition of vanadium properties in Nevada and equity financings.
Notably, our consulting and management fees increased by $0.5
million due to increased external consulting services related to
the acquisition of the Gibellini Project and the hiring of
Skanderbeg Capital Advisors Inc. to explore and evaluate strategic
alternatives to maximize value for our non-core assets.
Additionally, non-cash share-based payments expenses increased by
$401,228 due to a larger number of outstanding stock options
vesting during the fiscal year 2017 compared to the prior year.
Share-based payments represent the value assigned to the granting
of stock options under our share-based compensation plan using the
Black-Scholes model. During the year ended December 31, 2017, we
granted the equivalent of 4,080,000 stock options with a fair value
of $599,117 (2016 - $197,889) which is recognized over the vesting
period of the stock options. Our advertising and promotion expenses
increased by $50,000 due to increased activities to promote and
market the Company in order to raise equity financing, while
professional fees increased by $70,000 due to increased legal
expenses related to financing and mineral property acquisitions.
These increases were partially offset by a $30,000 reduction in
office and administrative expenses as a result of lower insurance
premiums, amortization costs and lower office lease expenses as a
result of the head office moving to a smaller commercial
space.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
decrease in total assets to $18.4 million in the fiscal year 2017
from $27.8 million in the fiscal year 2016 was mainly due to the
$14.8 million write-off of the non-core Mongolian coal properties.
The increase in current assets to $4.5 million in the fiscal year
2017 from $0.5 million in the same period for 2016 was due to the
net equity proceeds raised in the fourth quarter of
2017.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
total liabilities at December 31, 2017 were $9.7 million compared
to $11 million at December 31, 2016. The decrease in liabilities
was mainly due to a repayment of the Credit Facility and trade
liabilities incurred at the end of the 2016 fiscal year and paid in
2017.</font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">69</font></div>
</div>
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</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2017, we incurred other expenses classified
as &#x201C;Other Items&#x201D; amounting to $16.2 million compared to
$0.7 million for the fiscal year ended 2016. The increase of $15.5
million is the net result of changes to a number of other items. Of
note are the following items:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">costs in excess of
recovered coal for Ulaan Ovoo decreased by $181,549 due to keeping
operations at the Ulaan Ovoo Property on standby and reducing
general and administrative costs;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">finance costs
decreased by $308,945 due to decreased draws from the Credit
Facility;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">foreign exchange
loss increased by $194,649 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
Boliviano and Mongolian Tugrik;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">in the year 2017,
we disposed of 2.2 million Lorraine Copper Corp. shares for
proceeds of $153,190 and a realized loss of $22,810. In the year
2016, we recorded a gain on the sale of Wellgreen Platinum Ltd.
shares released from trust of $59,698;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">a decrease in
interest expenses by $237,574 was due to a decrease in the
outstanding balance of the Credit Facility;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">in the fiscal year
2017, we recorded a loss on disbursement of office furniture and
equipment of $1,681 (2016 &#x2013; $67,348);</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">in the fiscal year
2017, we recorded a loss on debt settlements of $752,742 to account
for the difference in the fair value of the shares on the
settlement date and the debt settled; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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">in the year 2017,
we recorded an impairment charge of $14,829,267 on our non-core
Mongolian coal properties, an impairment charge of $57,420 on
prepaid expenses related to the impaired Mongolian properties, an
impairment charge of $159,666 on property and equipment, and an
impairment charge of $61,202 on receivables. In the comparable
period in 2016, we recorded a recovery on sale of our 60% interest
in the Okeover project, to Lorraine Copper Corp. of
$195,079.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
operating losses are a reflection of the Company&#x2019;s status as
a non-revenue producing mineral exploration company. As the Company
has no main source of income, losses are expected to continue for
the foreseeable future.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">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: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company utilizes existing cash received from prior issuances of
equity instruments to provide liquidity to the Company and finance
exploration projects. The Company is of the opinion that its
working capital is sufficient for its present requirements. The
business of mineral exploration involves a high degree of risk and
there can be no assurance that the Company&#x2019;s current
operations, including exploration programs, will result in
profitable mining operations. The recoverability of the carrying
value of mineral properties, and property and equipment interests
and the Company&#x2019;s continued on going existence is dependent
upon the preservation of its interest in the underlying properties,
the discovery of economically recoverable reserves, the achievement
of profitable operations, the ability of the Company to raise
additional sources of funding, and/or, alternatively, upon the
Company&#x2019;s ability to dispose of some or all of its interests
on an advantageous basis. Additionally, the current capital markets
and general economic conditions are significant obstacles to
raising the required funds. These conditions may cast significant
doubt upon the Company&#x2019;s ability to continue as a going
concern.</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-family: Times New Roman; font-size: 13px">Given
that COVID-19 may result in a widespread health crisis that could
adversely affect the economies and financial markets of many
countries, there is the possibility of an economic downturn which
may affect our ability to access or raise capital through the
issuance of our equity securities as and when needed for business
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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2019 compared with Year Ended December 31,
2018</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-family: Times New Roman; font-size: 13px">At
December 31, 2019, we had cash flow of $3 million representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company&#x2019;s working capital at December 31, 2019, was
$0.95 million compared to working capital of $3.8 million at
December 31, 2018.</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, cash used in operating activities
was $2,675,513 compared to $2,626,687 cash used during the prior
year. The increased outflows in 2019 primarily related to increased
activities of the Company to develop the Pulacayo Project and the
Gibellini 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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
year over year increase in cash used by operating activities is due
to increased funds required for working capital changes. The
Company has increased its efforts in managing operating costs in
advance of cash flows from operations but will require financing in
the near term to fund 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>
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<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">70</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 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">During
the year ended December 31, 2019, we used $6,236,965 in investing
activities (2018 &#x2013; $3,628,762). We used $113,564 (2018 -
$120,416) on purchase of property and equipment, $6,123,401 (2018 -
$1,398,207) on mineral property expenditures.</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, a total of $6,626,085 was
provided by financing activities including net proceeds from the
Company&#x2019;s common share issuances of $6,237,791, an additional
$174,250 from exercise of stock options, and $250,572 from the
exercise of warrants to purchase common shares of the Company. We
spent $36,528 for lease payments.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2018 compared with Year Ended December 31,
2017</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2018, we had cash flow of $5.3 million representing an
increase of $1.2 million from $4.1 million held at December 31,
2017. The Company&#x2019;s working capital at December 31, 2018, was
a surplus of $3.8 million compared to working capital of $2.6
million at December 31, 2017.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, cash used in operating activities
was $2,626,687 compared to $707,231 cash used in the prior year.
The increased outflows in 2018 primarily related to increased
activities of the Company to develop the Gibellini Project. The
year over year increase in cash used by operating activities is due
to increased funds required for working capital
changes.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, we used $3,628,762 in investing
activities (2017 &#x2013; $1,988,566). The Company received net
proceeds of $101,550 from selling its marketable securities, used
$120,416 (2017 &#x2013; $515,609) on purchase of property and
equipment, $425,605 (2017 &#x2013; $58,790) on the acquisition of
the Gibellini Project, and $3,184,294 (2017 &#x2013; $1,339,417) on
mineral properties expenditures.</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2018, a total of $7,458,938 was
provided by financing activities including net proceeds of
$6,096,621 &#x2013; from the Company&#x2019;s share issuances,
$24,150 from exercise of stock options, and $1,338,167 from the
exercise of warrants to purchase common shares 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-style: italic; font-family: Times New Roman; font-size: 13px">
Year Ended December 31, 2017 compared with Year Ended December 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2017, we had a cash balance of $4,100,608 representing
an increase of $4,078,960 from $21,648 held at December 31, 2016.
Our cash balance at December 31, 2015, was $33,542. Our working
capital at December 31, 2017, was $2.6 million compared to a
working capital deficit of $3.2 million at December 31, 2016, and a
deficit of $3.9 million at December 31, 2015. The $5.8 million
increase in our working capital since the year ended December 31,
2016, is attributable to the increase in current assets as a result
of cash raised from equity financing and decrease in current
liabilities. We believe we have sufficient cash resources to meet
our short-term financial liabilities and our planned exploration
expenditures on our vanadium and silver projects for the
foreseeable future, for, but not limited to, the next 12
months.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, we used $1,988,566 in investing
activities (2016 &#x2013; $606,372, 2015 &#x2013; provided
$1,170,566). We spent $34,500 investing in a guaranteed investment
certificate (&#x201C;GIC&#x201D;), $58,790 on the acquisition of the
Gibellini Project, and $1,339,417 (2016 &#x2013; $712,901) on
mineral properties expenditures. In 2017, we spent $193,440 and
received $153,190 (2016 &#x2013; $59,698) from the purchase and sale
of available-for-sale investments, respectively.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A total
of $6,774,757 was provided by financing activities during the year
ended December 31, 2017 (2016 &#x2013; $1,048,078, 2015 &#x2013;
$1,057,941). We fully repaid and closed out the Credit Facility by
making cash payments totaling $364,142 and issuing the equivalent
of 3,000,000 shares of the Company to John Lee in satisfaction of
$900,000 worth of indebtedness owed by us to Mr. Lee&#x2019;s
personal holding company, Linx, under the Credit Facility. Funds
borrowed under the Credit Facility in the year 2017 were $163,405
(2016 &#x2013; $341,116). During the year ended December 31, 2017,
we received net proceeds of $6,864,809 (2016 &#x2013; $952,929) from
issuing units pursuant to private placements, $50,685 (2016 &#x2013;
$Nil) from exercise of stock options, and $60,000 (2016 &#x2013;
$Nil) from exercise of share purchase warrants.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
sufficient financial resources to keep our landholdings in good
standing through, at least, the next 12 months. As an exploration
stage company, we have no regular cash in- flow from operations,
and the level of operations is principally a function of
availability of capital resources. Our capital resources are
largely determined by the strength of the junior resource markets
and by the status of our projects in relation to these markets, and
our ability to compete for investor support of our projects. To
date, the principal sources of funding have been equity and debt
financing. Many factors influence our ability to raise funds, and
there is no assurance that we will be successful in obtaining
adequate financing and at favorable terms for these or other
purposes including general working capital purposes. Our
consolidated financial statements have been prepared on a going
concern basis which assumes that we will be able to realize our
assets and discharge our liabilities in the normal course of
business for the foreseeable future. Our ability to continue as a
going concern is dependent upon the continued support from our
shareholders, the discovery of economically recoverable reserves,
and our ability to obtain the financing necessary to complete
development and achieve profitable operations in the future. The
outcome of these matters cannot be predicted at this
time.</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">71</font></div>
</div>
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</div>
</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: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Financial Instruments</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">All
financial assets are initially recorded at fair value and
designated upon inception into one of the following four
categories: held<font style="font-family: Times New Roman">&#x2010;</font>to<font style="font-family: Times New Roman">&#x2010;</font>maturity, marketable
securities, loans and receivables or at fair value though profit
and loss (&#x201C;FVTPL&#x201D;). FVTPL comprises derivatives and
financial assets acquired principally for the purpose of selling or
repurchasing in the near term. They are carried at fair value with
changes in fair value recognized in profit or loss. The
Company&#x2019;s cash is classified as FVTPL.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Marketable
securities instruments are measured at fair value with changes in
fair value recognized in other comprehensive income. Where a
decline in the fair value of marketable securities constitutes
objective evidence of impairment, the amount of the loss is removed
from accumulated other comprehensive income and recognized in
profit or loss. The Company&#x2019;s investments are classified as
marketable securities. Marketable securities consist of investment
in common shares of public companies and therefore have no fixed
maturity date or coupon rate. The fair value of the listed
marketable securities has been determined directly by reference to
published price quotation in an active market.</font></div>
<div style="text-align: justify; 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: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">All
financial assets except those measured at fair value through profit
or loss are subject to review for impairment at least at each
reporting date. Financial assets are impaired when there is
objective evidence of impairment as a result of one or more events
that have occurred after initial recognition of the asset and that
event has an impact on the estimated future cash flows of the
financial asset or the group of financial assets.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Transactions costs
associated with FVTPL financial assets are expensed as incurred,
while transaction costs associated with all other financial assets
are included in the initial carrying amount of the
asset.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company assesses at each reporting date whether there is objective
evidence that a financial asset or a group of financial assets is
impaired. An evaluation is made as to whether a decline in fair
value is significant or prolonged based on an analysis of
indicators such as market price of the investment and significant
adverse changes in the technological, market, economic or legal
environment in which the investee operates.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If a
financial asset is impaired, an amount equal to the difference
between its carrying value and its current fair value is
transferred from Accumulated Other Comprehensive Income (Loss)and
recognized in the consolidated statement of operations. Reversals
of impairment charges in respect of equity instruments classified
as available-for-sale are not recognized in the consolidated
statement of operations.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company considers that the carrying amount of all its financial
assets and financial liabilities measure at amortized cost
approximates their fair value due to their short term nature.
Restricted cash equivalents approximate fair value due to the
nature of the instrument. The Company does not offset financial
assets with financial liabilities.</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
2019</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2019, our financial assets and financial liabilities
were categorized as follows: FVTPL &#x2013; cash and cash
equivalents of $3,017,704, amortized cost &#x2013; receivables of
$246,671, restricted cash equivalents of $34,500, accounts payable
and accrued liabilities of $2,420,392.</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
2018</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2018, our financial assets and financial liabilities
were categorized as follows: FVTPL &#x2013; cash and cash
equivalents of $5,304,097, amortized cost &#x2013; receivables of
$36,399, restricted cash equivalents of $34,500,accounts payable
and accrued liabilities of $1,636,786 <font style="color: #231F20; font-family: Times New Roman; font-size: 13px">and
lease liability of $52,818.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
December 31, 2018, the Company holds nil shares (December 31, 2017
&#x2013; 1,409,000) of a public company. During the year ended
December 31, 2018, the Company disbursed all its marketable
securities for proceeds of $101,550 and a realized loss of $91,890.
Following the disposal of the shares, the Company reclassified the
cumulative income previously recognized in other comprehensive
income of $68,840 to profit and loss on the sale of marketable
securities.</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">72</font></div>
</div>
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</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: 7px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
2017</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2017, our financial assets and financial liabilities
were categorized as follows: FVTPL &#x2013; cash and cash
equivalents of $4,100,608; loan and receivables &#x2013; receivables
of $34,653 and restricted cash equivalents of $34,500; and other
financial liabilities &#x2013; accounts payable and accrued
liabilities of $1,895,983.</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">
Commitments</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
subsidiary, ASC, controls the mining rights to the Pulacayo Project
through a joint venture agreement entered into between itself and
the Pulacayo Ltda. Mining Cooperative on July 30, 2002 (the
&#x201C;ASC Joint Venture&#x201D;). The ASC Joint Venture has a term
of 23 years which commenced the day the ASC Joint Venture was
entered into. Pursuant to the ASC Joint Venture, ASC is committed
to pay monthly rent of USD$1,000 to the state-owned Mining
Corporation of Bolivia, COMIBOL and USD$1,500 monthly rent to the
Pulacayo Ltd. Mining Cooperative until the Pulacayo Project starts
commercial production</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
the terms of the lease agreement through which we acquired the
Gibellini Project, we are required to make annually, on each
anniversary of the execution date of the agreement, advance royalty
payments which will be tied, based on an agreed formula (not to
exceed USD$120,000 per year), to the average vanadium pentoxide
price of the prior year. Further, upon commencement of production,
we will maintain our acquisition by paying to the Lessors, a 2.5%
NSR until a total of USD$3 million is paid. Thereafter, the NSR
will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as &#x201C;production royalty
payments&#x201D;). Under the terms of the lease agreement, all
advance royalty payments made, will be deducted as credits against
future production royalty payments. The Gibellini Project lease is
for a term of 10 years but can be extended for an additional 10
years at our option.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
the terms of the lease agreement through which we acquired the
Louie Hill Project in Nevada, we are required to pay, annually, on
each anniversary of the execution date of the agreement, advance
royalty payments which will be tied, based on an agreed formula
(not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year. Further, upon commencement of
production, we will maintain our acquisition by paying to the Louie
Hill Lessor, a 2.5% NSR of which, 1.5% of the NSR may be purchased
at any time by us for USD$1 million leaving the total NSR to be
reduced to 1% over the remaining life of the mine (and referred to
thereafter, as &#x201C;production royalty payments&#x201D;). Under
the terms of the lease agreement, all advance royalty payments
made, will be deducted as credits against future production royalty
payments. The Louie Hill Project lease is for a term of 10 years
but can be extended for an additional 10 years at our
option.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As part
of the transaction with Apogee, we agreed to assume within certain
limitations all liabilities associated with the Apogee Subsidiaries
and the Pulacayo Project.</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
Apogee&#x2019;s financial year ended June 30, 2014, it received
notice from the Servicio de Impuestos Nacionales, the national tax
authority in Bolivia, that ASC Bolivia LDC Sucursal Bolivia, now
the Company&#x2019;s wholly-owned subsidiary, owed approximately
Bs42,000,000 in taxes, interest and penalties relating to a
historical tax liability in an amount originally assessed at
approximately $7,600,000 in 2004, prior to Apogee acquiring the
subsidiary in 2011.&#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-family: Times New Roman; font-size: 13px">Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.&#xA0; The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority&#x2019;s assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court&#xA0;that
among other things, declared null and void the previous Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.</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="color: #000000; font-family: Times New Roman; font-size: 13px">On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary as&#xA0;not
proven.</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="color: #000000; font-family: Times New Roman; font-size: 13px">The
Resolution is final and binding. Hence neither the Company nor the
Company&#x2019;s Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.</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 year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2014, the Company&#x2019;s wholly-owned
subsidiary, Red Hill Mongolia LLC (&#x201C;Red Hill&#x201D;) was
issued a letter from the Sukhbaatar District Tax Division notifying
it of the results of the Sukhbaatar District Tax Division&#x2019;s
VAT inspection of Red Hill&#x2019;s 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill&#x2019;s claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division&#x2019;s findings as the tax assessment appeared to the
Company to be unfounded.&#xA0; The Company disputed the Sukhbaatar
District Tax Division&#x2019;s assessment and submitted a complaint
to the Capital City Tax Tribunal.&#xA0;&#xA0;On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill&#x2019;s VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.</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">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">73</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 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; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;&#xA0;Due
to the uncertainty of realizing the VAT balance, the Company
recorded an impairment charge for the full VAT balance in the year
ended December 31, 2015.</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-family: Times New Roman; font-size: 13px">In
<font style="color: #000000">June 2019, the Company received a
positive resolution issued from the</font> Capital City Tax
Tribunal, <font style="color: #000000">which is binding and final,
affirmed Red Hill&#x2019;s outstanding VAT credit of 1.169 billion
MNT resulted from past mining equipment purchases. The VAT credit
can be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia&#x2019;s Ministry of Finance within 12 to 24 months
processing time. Due to the credit risk associated with the VAT
credit, the Company has provided a full valuation provision against
the balance.</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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
and Development, Patents and Licenses, etc.</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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">While
the Company is an exploration company that does not have any
producing mines, it is directly affected by trends in the metal
industry. At the present time global metal prices are extremely
volatile. Base metal prices, driven by rising global demand,
climbed dramatically and approached near historic highs several
years ago. Prices have declined significantly since those highs,
other than in the case of vanadium, which has risen
significantly.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Overall
market prices for securities in the mineral resource sector and
factors affecting such prices, including base metal prices,
political trends in the countries in which such companies operate,
and general economic conditions, may have an effect on the terms on
which financing is available to the Company, if available at
all.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Additionally, any
outbreaks of contagious diseases and other adverse public health
developments in countries where we operate could have a material
and adverse effect on our business, financial condition and results
of operations. For example, the recent outbreak of COVID-19 first
identified in Wuhan, Hubei Province, China, has resulted in
significant restrictive measures being implemented by governments
of affected countries to control the spread of COVID-19. Such
COVID-19 related restrictions and disruptions, including for
employees, manufacturers, suppliers and customers across different
industries, may negatively impact our business operations and
therefore our operational results and financial condition. In
addition, COVID-19 may result in a widespread health crisis that
could adversely affect the economies and financial markets of many
countries, resulting in an economic downturn that could affect our
ability to access or raise capital through issuances of our
securities as and when needed for business operations.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Except
as disclosed, the Company does not know of any trends, demand,
commitments, events or uncertainties that will result in, or that
are reasonably likely to result in, its liquidity either materially
increasing or decreasing at present or in the foreseeable future.
Material increases or decreases in liquidity are substantially
determined by the success or failure of the Company&#x2019;s
exploration programs.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s financial assets and liabilities generally consist
of cash and cash equivalents, receivables, deposits, accounts
payable and accrued liabilities, some of which are denominated in
foreign currencies including Canadian dollars, United States
dollars, Mongolian Tugriks and Bolivian Bolivianos. The Company is
at risk to financial gain or loss as a result of foreign exchange
movements against the Canadian dollar. The Company does not
currently have major commitments to acquire assets in foreign
currencies, but historically it has incurred the majority of its
exploration costs in foreign currencies. The Company currently does
not and also does not expect to engage in currency hedging to
offset any risk of currency fluctuations.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Off-Balance
Sheet Arrangements</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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 11px">
<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">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
Company has the following financial obligations in the ordinary
course of business:</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="margin-left: 12px;">
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr>
<td style="vertical-align: bottom; width: 31%; border-top: 0.25pt solid #002060; border-bottom: 2px solid #002060">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="5" style="vertical-align: bottom; width: 68%; border-top: 0.25pt solid #002060; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: 122px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Payments
due by period</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<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">Contractual
Obligations</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: 22px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<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">
Less than 1 year</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<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">
1-3 years</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<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">
3-5 years</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<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">
More than 5 years</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Long-term
debt</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Capital
(finance) lease obligations</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; 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: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Operating
lease obligations</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$79,603</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$45,489</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$34,114</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Purchase
obligations</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Other
long-term liabilities</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Loan</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 31%; border-bottom: 2px solid #002060">
<div style="text-align: right; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Total</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$79,603</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$45,489</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$34,114</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">$Nil</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-bottom: 2px solid #002060">
<div style="text-align: center; margin-left: 0px; margin-right: -2px; 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="display: table; margin-left: 11px">
<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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company seeks safe harbor for our forward-looking statements
contained in Items 5.E and F. See the heading "Cautionary Note
Regarding Forward-Looking Statements" 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="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="i6">I</a>TEM 6.&#xA0; DIRECTORS, SENIOR MANAGEMENT AND
EMPLOYEES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Directors
and Senior 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following are the names and ages of our directors and senior
management of the Company as of December 31, 2019 and March 30,
2020, with their positions and offices with the Company and
corresponding start dates, and their principal occupations during
the last five years. There are no family relationships between any
of the persons named below. There are no arrangements or
understandings with any major shareholders, customers, suppliers or
other parties pursuant to which any person named below was selected
as a director or executive officer. Mr. Lee, the Company&#x2019;s
Executive Chairman and Director was not selected as a Director of
the Company in connection with the consulting agreement dated
February 28, 2019 entered between the Company and Linx (a
wholly-owned subsidiary of Mr. Lee).</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%; 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">75</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="null"><font>&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #ffffff">
<td style="vertical-align: bottom; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<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;<br></font></div>
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Name
and Age</font></font></div>
</td>
<td style="vertical-align: bottom; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">

<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">
Current Office Held</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">
with the Company</font></div>
</div>
</div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">

<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">
Current director and/or</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">
Executive Office Since</font></div>
</div>
</div>
</td>
<td style="vertical-align: bottom; width: 56%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); background-color: rgb(204, 238, 255);">
<br>
<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="font-weight: bold; font-style: italic">&#xA0;</font> <font style="font-weight: bold">&#xA0;</font> &#xA0; <font style="font-size: 13px">&#xA0;</font> &#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="font-weight: bold; font-style: italic">&#xA0;</font> <font style="font-style: italic">&#xA0;</font> &#xA0; <font style="font-size: 13px">&#xA0;</font> &#xA0; <font style="font-size: 13px">&#xA0;</font> &#xA0; <font style="font-size: 13px">&#xA0;</font> &#xA0; <font style="font-size: 13px">&#xA0;</font> &#xA0;</font> &#xA0; <font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Principal
Occupation During Last Five Years (3)</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<img src="silef_20-f008.jpg"></font></div>
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px;">John
Lee (5)<br></font></div>
<font style="font-family: Times New Roman; font-size: 13px">Age:
46</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Executive
Chairman</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">Non-Independent
Director</font></div>
</div>
</td>
<td style="vertical-align: top; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">January
1, 2013</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">October
21, 2009</font></div>
</div>
</td>
<td style="vertical-align: top; width: 56%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<br>
<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="font-weight: bold; font-style: italic">Present</font><font style="font-weight: bold">:</font> President of Mau Capital Management
LLC (private investor relations firm) from July 2004 to present;
and Executive Chairman and a Director of <font style="font-size: 13px">the Company</font> from January 2013 to
present.</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="font-weight: bold; font-style: italic">Former</font><font style="font-style: italic">:</font> Chairman of <font style="font-size: 13px">the Company</font>. from June 2011 to January
2013; Interim President from June 2011 to October 2018; Interim CEO
of <font style="font-size: 13px">the Company</font> from November
2012 to October 2018; Head of Internal Affairs of <font style="font-size: 13px">the Company</font> from October 2018 to February
2019; and Interim President and Interim Chief Executive Officer of
<font style="font-size: 13px">the Company</font> from February 2019
to April 2019.</font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><br></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><img src="silef_20-f009.jpg"></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Michael
Doolin</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">Age:
58</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Interim
Chief Executive Officer</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">Chief
Operating Officer</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">April
1, 2019</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">April
1, 2019</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-top: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<br>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font> Interim,
Chief Financial Officer and Chief Operating Officer of <font style="font-size: 13px">the Company</font> from April 1, 2019 to
present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> Chief
Operating Officer of <font style="color: #000000; background-color: #FFFFFF">Klondex Mines Unlimited
Liability (Formerly &#x201C;</font><font style="font-style: italic">Klondex Mines Ltd</font>.&#x201D;) from March
2016 to July 20, 2018; Vice President, Business Development and
Technical Services of Klondex Mines Ltd. November 2012 to March
2016; Esmeralda Mill Manager at Great Basin Gold Ltd. from April
2010 to November 2013.</font></div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
</td>
</tr></table>
</div>
<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: 14%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<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"><img src="silef_20-f010.jpg"></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">Greg
Hall (1)(2)</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">Age:
62</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Independent
Director</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">October
21, 2009</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px 1pt;">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font> Director of
<font style="font-size: 13px">the Company</font> from October 21,
2009 to present; President of Water Street Inc. from September 2013
to present; Advisor to Market One Media Group Inc. from 2013 to
present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> Director of
Fidelity Minerals Corp. from September 23, 2016 to December 4,
2018; and Director of Intertainment Media Inc. from January 19,
2011 to May 29, 2015.</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>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f011.jpg"></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">Marc
Leduc (1)(2)</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">Age:
58</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; 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">Independent
Director</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>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; 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">July
22, 2019</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>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font> Independent
Director of <font style="font-size: 13px">the Company</font> from
July 22, 2019 to present; Chief Operating Officer of KORE Mining
Ltd. from October 29, 2019 to present; Director of South Star
Mining Corp. from March 25, 2019 to present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> President,
Chief Executive and a Director of Luna Gold Corp. from January 30,
2015 to August 14, 2016; and Director of Rupert Resources Ltd. from
April 10, 2013 to December 7, 2016.</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>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f012.jpg"></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">Masa
Igata, (1)(2)</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">Age:
59</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; 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">Independent
Director</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; 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">April
23, 2014</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic; font-family: Times New Roman">
Present:</font><font style="font-family: Times New Roman">&#xA0;</font>Director of the Company
from April 23, 2014 to present; Founder and Chef Executive
Officer&#xA0;of Frontier LLC (Mongolia)&#xA0;from March 2007 to
present and Founder and Chief Executive Officer of Frontier Japan
from January 2015 to present.&#xA0;</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><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>
</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">77</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: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f013.jpg"></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">Ronald
Clayton</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">Age:
61</font></div>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Independent
Director</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-top: 2px solid rgb(0, 0, 0);">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">November
4, 2019</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px 1pt;">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font> Independent
Director of <font style="font-size: 13px">the Company</font> from
November 4, 2019 to present; President, Chief Executive Officer and
a Director of <font style="color: #000000; background-color: #FFFFFF">1911 Gold Corporation
(formerly Havilah Mining Corporation) from November 26, 2018 to
present; and a Director of Gold Standard Ventures Corp. from
January 30, 2018 to present.</font></font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> President,
Chief Executive Officer and a Director of Tahoe Resources Inc. from
May 25, 2010 to June 15, 2018.</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>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f014.jpg"></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">Ronald
Espell</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">Age:
59</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; 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">Vice-President,</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">Environment
and Sustainability</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; 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">October
29, 2018</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font>
Vice-President, Environment and Sustainability of <font style="font-size: 13px">the Company</font> from November 2018 to
present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> VP
Environment of American Vanadium Corp. from April 2012 to April,
2015; Principal Consultant of SRK Consulting from April, 2015 to
April, 2016; Corporate Environmental Director of McEwen Mining Inc.
from April, 2016 to November, 2017.</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>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f015.jpg"></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">Danniel
Oosterman</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">Age:
47</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; 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">Vice-President,</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">Exploration</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; 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">February
20, 2018</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font>
Vice-President, Exploration of <font style="font-size: 13px">the
Company</font> from February 2018 to present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> President
&amp; CEO of Canstar Resources Inc. from March 2013 to December
2017.</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>
</td>
</tr></table>
</div>
<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: 14%; border-left: 1pt 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f016.jpg"></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Joaquin
Merino-Marquez</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">Age:
52</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Vice-President,</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
South American</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Operation</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><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>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
November 1, 2019</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font>
Vice-President, South American Operations of <font style="font-size: 13px">the Company</font> from November 1, 2019 to
present; President and a Director of Emerita Resources Corp.
(<font style="font-style: italic">Formerly &#x201C;Emerita Gold
Corp.&#x201D;)</font> from January 11, 2013 to present.</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><img src="silef_20-f017.jpg"></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">Irina
Plavutska</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">Age:
62</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>
</td>
<td style="vertical-align: top; width: 17%; border-left: 1pt solid #000000; 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">Chief
Financial Officer</font></div>
</td>
<td style="vertical-align: top; width: 14%; border-left: 1pt solid #000000; 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">September
11, 2013</font></div>
</td>
<td style="vertical-align: top; width: 56%; border-left: 1pt solid #000000; border-right: 1pt solid #000000; border-bottom: 2px solid #000000">
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Present:</font> Chief
Financial Officer of <font style="font-size: 13px">the
Company</font> from September 13, 2013 to present.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Former:</font> Controller
at <font style="font-size: 13px">the Company</font> from November
2012 to September 9, 2013; Interim CFO of <font style="font-size: 13px">the Company</font> from August 2011 to November
2012; and Controller of <font style="font-size: 13px">the
Company</font> from August 2010 to August 2011.</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>
</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 20px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(1)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Member of the Audit
Committee.</font></div>
</div>
</div>
<div style="display: table; margin-left: 20px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(2)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Member of the
Corporate Governance and Compensation Committee.</font></div>
</div>
</div>
<div style="display: table; margin-left: 20px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(3)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The information as
to principal occupation, business or employment is not within the
knowledge of our management and has been furnished by the
respective individuals. Each director or officer has held the same
or similar principal occupation with the organization indicated or
a predecessor thereof for the last five years.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019 the Company experienced various
changes in Directors, Officers and Management of the Company as
follows:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 37px">
<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">Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Louis Dionne ceased
to be a Director on February 28, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Marc Leduc was
appointed as a Director on July 22, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Ronald Clayton was
appointed as a Director on November 4, 2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and</font></div>
</div>
</div>
<div style="display: table; margin-left: 37px">
<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">Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019.</font></div>
</div>
</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">79</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: 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">Biographical
Information 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following are brief biographies of our directors and senior
management as of December 31, 2019:</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">John Lee</font><font style="font-weight: bold">&#xA0;</font>is the Executive Chairman has been
a Director of the Company since October 2009. Mr. Lee has been an
accredited investor in the resource industry since 2001. Under
John&#x2019;s leadership, the Company raised over $110 million and
grew from having minimal assets to owning substantial assets in
USA, Bolivia and Mongolia. Mr. Lee is a CFA charter holder and has
degrees in economics and engineering from Rice University. Since
joining the Company Mr. Lee has led the Company in making several
timely project acquisitions and has also identified, negotiated and
financed Pulacayo Project acquisition in 2015 and the Gibellini
Project acquisition in 2017.</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"><font style="font-weight: bold; font-style: italic">Michael Doolin</font>
<font style="color: #000000">was appointed as Interim Chief
Executive Office replacing Gerald Panneton on April 1, 2019. Mr.
Doolin was also appointed Chief Operating Officer of the Company on
April 1, 2019. Mr. Doolin is a mining professional with over 30
years of operational and management experience in Nevada with an
emphasis on planning and budgeting. Mr. Doolin manages the
Company&#x2019;s worldwide operations while collaborating with
Prophecy&#x2019;s executive chairman John Lee on investor marketing,
fundraising and the Company&#x2019;s overall strategic direction.
Prior to joining the Company, Mr. Doolin was Chief Operating
Officer at Klondex Mines Ltd. (&#x201C;Klondex&#x201D;) a mid-tier
precious metals mining company with over 200,000 oz. annual gold
production prior to its takeover by Hecla Mining Company for US$462
million in July 2018. From 2012 to 2018, Mr. Doolin was an integral
part of Klondex management team that upgraded Klondex to major NYSE
American listing, grew the staff count to over 250, and raised over
US$200 million in equity to develop Klondex&#x2019;s Fire Creek,
Hollister and Midas, gold and silver mines located in Nevada from
permitting to construction to commissioning stages and then further
expansion. At Klondex, Mr. Doolin&#x2019;s team obtained an
Environmental Assessment for the Fire Creek Mine in nine months
from the Battle Mountain BLM office who are overseeing
Prophecy&#x2019;s current Gibellini permitting, which is the
Company&#x2019;s top priority.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Greg
Hall</font><font style="font-weight: bold">&#xA0;</font>has been an
Independent Director of the Company since October 2009. Mr. Hall is
a self-employed businessman with over 25 years&#x2019; experience as
a broker, senior executive officer and founder of several
successful Vancouver-based brokerage firms. For over 25 years, Mr.
Hall has focused on significant international exploration,
development, and mining ventures, and all aspects of their
structuring and finance. Mr. Hall previously served as a director
of Silvercorp Metals Inc. (NYSE: SVM, TSX: SVM), China&#x2019;s
largest primary silver producer and the lowest cost silver producer
among its industry peers. Mr. Hall&#x2019;s previous positions
include: Director at Haywood Securities Inc.; Vice-President,
Canaccord Capital Corporation; and Senior Vice-President of Leede
Financial Markets Inc. Mr. Hall is a graduate of the Rotman School
of Management, University of Toronto, SME Enterprise Board Program,
and a Member of the Institute of Corporate 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Masa
Igata</font><font style="font-weight: bold">&#xA0;</font>has been
an Independent Director of the Company since April 2014.
<font style="color: #000000">Mr. Masa Igata, Founder &amp; CEO of
Frontier LLC and Frontier Japan, has more than 30 years of
professional experience in Asian financial markets. Prior to
establishing Frontier Securities(Later renamed as Frontier LLC) in
2007, he had been a Managing Director at Salomon
Brother/Citigroup/Nikko Citigroup in Tokyo leading the company to
be the most profitable foreign investment bank in Japan for more
than the decade. After leaving the firm in 2004, Mr. Igata became
interested in Mongolia&#x2019;s fast-growing economy, and began to
develop close relationships with many Mongolian businesses since
then. Mr. Igata has since invested in Mining, Finance and real
estate sector in Japan, Mongolia, Canada and China through his own
companies in each region. In addition, with proven expertise on
cross-border capital raising, Mr. Igata has been actively promoting
Mongolian investment opportunities to foreign investors and
advocating capital market&#x2019;s best practices in Mongolia to
ensure and enhance its access to foreign investors through a full
range of financial services, corporate access and research. In
addition, he has extensively advised the Government of Mongolia,
several government agencies and major corporate in Mongolia on fund
raising, corporate governance and value enhancement. In Japan, Mr.
Igata has been advising to major mining companies on corporate
governance, investor relations and the outlook on the global mining
sector. Hosting Invest Mongolia Tokyo is one of the service to
facilitate himself and Japanese investors to access to the
Government and the Business in Mongolia. In addition, Mr. Igata has
been actively advising to Japanese Government and Government
related agencies on the various issues on the global mining
industry. Mr. Igata is a certified member of the Securities Analyst
Association of Japan and an Advisory Member of the Board at
Business Council of Mongolia (BCM).</font> Mr. Igata was conferred
a decoration of <font style="color: #222222; background-color: #FFFFFF">Nairamdal</font>
(Friendship) from President of Mongolia Tsakhiagiin Elbegdorj on
June 2017.</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-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Marc Leduc</font> has been
an Independent Director of the Company since July 2019. Mr. Leduc
<font style="color: #000000">is a mining engineer and geologist
with more than 30 years&#x2019; experience involving all aspects of
the development, operations, planning and evaluation of mining
projects. Mr. Leduc holds a B.Sc. (Hons) degree in Mining
Engineering from Queen&#x2019;s University Kingston, and B.Sc.
degree in Geology from the University of Ottawa, and he is a
registered professional engineer in both Ontario and BC. Mr. Leduc
has led technical teams in the design and construction of large
mines, heap leach and tailings facilities. Mr. Leduc has held top
management positions with several mining companies including most
recently Chief Operating Officer and Interim CEO of NewCastle Gold
Ltd before it was acquired in 2017 via merger with Trek Mining Inc.
and Anfield Gold Corp. (now named Equinox Gold Corp.). Mr. Leduc,
following the merger, remained with Equinox Gold for all of 2018
and into 2019 holding the position of Senior Vice President of US
Operations. Mr. Leduc currently holds the position of COO with Kore
Mining and is an independent director of South Star Mining. Mr.
Leduc spent several years working in Peru as the President and COO
for Bear Creek Mining Corp, a silver exploration and development
company.</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Ronald Clayton</font> has
been an Independent Director of the Company since November 4, 2019.
<font style="color: #000000">Mr. Clayton is a seasoned executive
with over 40 years of mine operating experience. He was the CEO of
Tahoe Resources and led the successful construction and operation
of Tahoe&#x2019;s flagship Escobal silver mine, which at its peak
(2015 to 2017) produced over 20 million ounces of silver annually.
Tahoe was acquired by Pan American Silver Corp for US$1.07 billion
in February 2019. Prior to his 8-year tenure at Tahoe, Mr. Clayton
was senior vice president for operations and general manager of
several underground mines for Hecla Mining Company. Mr. Clayton
earned a Bachelor of Science degree in mining engineering from the
Colorado School of Mines and is a graduate of the Tuck School of
Business Executive Program at Dartmouth
College.</font></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">80</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Irina
Plavutska</font><font style="font-weight: bold">&#xA0;</font>has
been with the Company since 2010 and was appointed Chief Financial
Officer in April 2011. Ms. Plavutska is a professional accountant
with over 20 years of international experience in financial
reporting, auditing, and accounting. Ms. Plavutska is a member of
Chartered Professional Accountants Canada.</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"><font style="font-weight: bold; font-style: italic">Ronald Espell</font> was
appointed Vice President, Environment and Sustainability in October
2018. Mr. Espell is a highly regarded specialist in U.S. federal
and Nevada state mine permitting, with over 30 years of experience
in corporate environmental management, permitting in conformance
with applicable regulatory and performance standards, mine waste
management, reclamation, and closure planning. Prior to joining the
Company, Mr. Espell was the corporate environmental director of
McEwen Mining Inc. Within 18 months from the time he joined McEwen
Mining, Mr. Espell led his team to successfully obtain the Gold Bar
project&#x2019;s environmental impact statement (EIS) approval from
the BLM in November 2017. Prior to his time with McEwen Mining, Mr.
Espell was a principal consultant at SRK Consulting and
Vice-President of Environment for the Gibellini Project&#x2019;s
prior operator, where he led efforts in the preparation of
Gibellini&#x2019;s baseline studies and plan of operation. Mr.
Espell&#x2019;s wealth of experience includes being an environmental
management specialist at the Nevada Division of Environmental
Protection, as well as working for 17 years in positions of
increasing responsibility at Barrick Gold Corp., from being
Environmental Superintendent, Environmental Manager of Barrick
Goldstrike, Regional Environmental Director &#x2014; Australia
Pacific, and Corporate Environmental 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">Danniel
Oosterman</font><font style="font-weight: bold">&#xA0;</font>was
appointed Vice-President, Exploration in February 2018. Mr.
Oosterman worked for 20 years in the mining and exploration
business specializing in exploration and development of projects
from grass roots, brown field, to feasibility stage. Mr.
Oosterman&#x2019;s background includes occupying both technical and
executive roles, with an early career joining exploration efforts
for mining companies such as Falconbridge Ltd. and Inco Limited
before transitioning to the junior mining sector to manage many
technical projects across Canada before advancing to President and
CEO of Canstar Resources Inc., a TSX Venture Exchange-listed
company. He holds a B.Sc. (Hons) degree in Geology from Laurentian
University and is a member of the Association of Professional
Geoscientists of Ontario. Mr. Oosterman is closely involved in
development of the Company&#x2019;s Gibellini Project and
exploration of its Bolivian project. Mr. Oosterman is a
&#x201C;qualified person&#x201D; within the meaning of NI
43&#x2013;101.</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"><font style="font-weight: bold; font-style: italic; color: #000000">Joaquin
Merino-Marquez</font> <font style="color: #000000">was appointed
Vice-President, South American Operations in November 2019. Based
in Bolivia, Mr. Merino-Marquez is a professional geologist with 27
years of experience in the mining industry. Mr. Merino-Marquez is
currently the President and a Director of Emerita Resources Corp.
(</font><font style="font-style: italic; color: #000000">Formerly
&#x201C;Emerita Gold Corp.&#x201D;)</font> <font style="color: #000000">since January 11, 2013. Prior industry
affiliations include roles as vice-president of exploration for
Primero Mining Corp. and vice-president of exploration for Apogee
Minerals Ltd. Prior to Apogee, Mr. Merino-Marquez was the
exploration manager for Placer Dome at the Porgera mine and a mine
geologist at Hecla Mining&#x2019;s La Camorra mine. Mr.
Merino-Marquez is a native Spanish speaker and fluent in English.
He holds a Master of Science from Queens University and a Bachelor
of Science in geology from University of Seville (Spain). He is a
member of the Association of Professional Geoscientists of Ontario.
From 2006 to 2010, Mr. Merino-Marquez lived in Bolivia and led
Apogee&#x2019;s 85,000-metre drill campaign at Pulacayo and Paca
silver projects. The drill campaign was a success and defined over
90 million ounces of silver resources according to independent,
third party estimates (which are now considered historic in nature
and should not be relied up on as they are no longer National
Instrument 43-101 compliant).</font></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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">

<div style="display: table; margin-left: 9px">
<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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Executive Officers</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
purposes of this Annual Report, &#x201C;executive officer&#x201D; of
the Company means an individual who at any time during the year was
the Chief Executive Officer (&#x201C;CEO&#x201D;), President or Chief
Financial Officer (&#x201C;CFO&#x201D;) of the Company; any
Vice-President in charge of a principal business unit, division or
function; and any individual who performed a policy-making function
in respect of the Company.</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">Set out
below are particulars of compensation paid to the following persons
(the &#x201C;Named Executive Officers&#x201D; or &#x201C;NEOs&#x201D;)
for the fiscal year ended December 31, 2019:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the
CEO;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<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: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">the
CFO;</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">3.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">each of the three
most highly compensated executive officers, or the three most
highly compensated individuals acting in a similar capacity, other
than the CEO and CFO, at the end of the most recently completed
financial year whose total compensation was, individually, more
than C$150,000 for that financial year; and</font></div>
</div>
</div>
<div style="display: table; margin-left: 49px">
<div style="display: table-row">
<div style="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">4.&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">any individual who
would be a NEO under paragraph (3) but for the fact that the
individual was neither an executive officer of the Company, nor
acting in a similar capacity, at the end of that financial
year.</font></div>
</div>
</div>
&#xA0; <font style="font-family: Times New Roman; font-size: 13px;"><br>
</font></div>
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<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">81</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has no pension, defined contribution, or deferred
compensation plans for its directors, executive officers or
employees.</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 style="margin-left: 12px;">
<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: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;
<font style="font-size:70%;vertical-align:top;">&#xA0;</font></font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;
<font style="font-size:70%;vertical-align:top;">&#xA0;</font></font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;
<font style="font-size:70%;vertical-align:top;">&#xA0;</font></font>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;
<font style="font-size:70%;vertical-align:top;">&#xA0;</font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block;">&#xA0;</font> <font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font>
<font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 90%; display: inline-block;">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Non-equity
incentive</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">plan
compensation</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font></div>
</div>
</font><font style="text-align: left; width: 5%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
<font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Name
and Position</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Salary<font style="font-size:70%;vertical-align:top;">(1)</font></font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Share</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">based</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">awards<font style="font-size:70%;vertical-align:top;">(2)</font></font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Option-based
awards <font style="font-size:70%;vertical-align:top;">(3)</font></font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font></div>
<font style="font-size:13px;font-family:Times New Roman;"></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Annual</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">incentive</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">plans</font><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Long-term</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">incentive</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">plans</font></div>
</div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">All
other</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">compensation</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</div>
</td>
<td style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Total</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">compensation</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">($)</font>
<font style="font-size:13px;font-family:Times New Roman;"><br>
</font></div>
</div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">John Lee
(1)(2)</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Executive Chairman
&amp; Director</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">320,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">21,908</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(6)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font>&#xA0;</font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font>&#xA0;</font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">377,370</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">719,278</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Michael Doolin
(1)(2)(4)</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">CEO, COO &amp;
Director</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">298,469</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">265,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">74,387</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(7)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">10,672</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">648,528</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Irina Plavutska
(2)</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">CFO</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">143,152</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">40,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">7,303</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(8)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">6,370</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">196,825</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Ronald Espell
(2)</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 9px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">VP, Environment and
Sustainability</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">331,674</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">60,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">7,303</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(9)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">29,548</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">428,525</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Michael Drozd
(5)</font></div>
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Former VP, Operations</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">322,942</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">3,188</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(10)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font>&#xA0;</font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">41,038</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<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;">367,168</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div><font style="font-family: Times New Roman; font-size: 10"><br></font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; 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: 24px">
<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">John Lee and
Michael Doolin (&#x201C;Mr. Doolin&#x201D;) do not receive
compensation for acting as a Director of the Company.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">After the year end,
the Company issued bonus common shares with a fair value of $0.40
per Share to executive officers under the Share- Based Compensation
Plan.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">The stock options
issued, included and described under these Option-based awards were
granted to executive officers under the Share- Based Compensation
Plan. Stock options granted on July 29, 2019 to John Lee, Irina
Plavutska and Ronald Espell were not valued at December 31, 2019
due to the following: further to the voluntary forfeiture of share
options with expire dates on April 7, 202, June 22, 2020, and
November 14, 2023, at exercise prices ranging from $0.50 to $0.65,
the Company granted 794, 000 new stock options with an expire date
of July 29, 2024 at an exercise price of $0.20 per share. As at
December 31, 2019, the re-issuing of these options had been
approved by the TSX, but they had not been approved by the
shareholders; consequently, these options were no
valued.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Mr. Doolin was
appointed Chief Executive Officer and Chief Operating Officer on
April 1, 2019. The <font style="color: #000000; background-color: #FFFFFF">Company issued 500,000
sign-on bonus Shares with a fair value of $0.23 per share to Mr.
Doolin.</font></font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(5)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Michael Drozd was
appointed Vice-President, Operations on August 16, 2018, and ceased
to be Vice&#x2013;President, Operations effective November 7,
2019.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(6)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">300,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(7)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The equivalent of
500,000 and 300,000 stock options, exercisable at the equivalent of
$0.21 and $0.44, respectively, and expiring on April 1, 2024 and
November 1, 2024, respectively.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(8)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">100,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(9)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">100,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(10)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">100,000 stock
options exercisable at $0.20 and expiring on July 29,
2024.</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%"><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">82</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Independent
directors are paid varying amounts depending on the degree to which
they are active on behalf of the Company. See the table below for
amounts paid or accrued in fiscal year 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
compensation provided to directors who were not an executive
officer for the Company&#x2019;s most recently completed financial
year of December 31, 2019, are as follows:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Name</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Fees
Earned ($)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Share-Based</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Awards
($)<font style="font-size:70%;vertical-align:top;">4)</font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Option-Based</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Awards
($) <font style="font-size:70%;vertical-align:top;">(5)</font></font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Non-equity
Incentive</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Plan
Compensation (4)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Pension</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Value
(4)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">All
other</font></div>
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Compensation
($)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="width: 10%; vertical-align: bottom; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 80%; display: inline-block;">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Total
($)</font></div>
</font><font style="text-align: left; width: 10%; vertical-align: bottom; display: inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Greg
Hall</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">21,400</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">6,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">5,842</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(6)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font>&#xA0;</font> <font>&#xA0;</font> <font><font style="font-family: Times New Roman; font-size: 13px">Nil</font>&#xA0;</font><font>&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">33,242</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Masa
Igata</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">19,600</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">6,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">5,842</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(7)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">31,442</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Marc Leduc
(1)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">4,962</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">6,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">13,401</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(8)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">20,443</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">38,806</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Ronald Clayton
(2)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">2,600</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">6,000</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;">14,606</font><font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 70%; vertical-align: top">(9)</font></font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<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;">23,206</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 30%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; text-indent: 0px; margin-right: 0px; margin-left: 0px;"><font style="font-family: Times New Roman; font-size: 13px">Louis Dionne
(3)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;">3,600</font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0);">
<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;"><font style="font-family: Times New Roman; font-size: 13px">Nil</font></font><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<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;">3,600</font><font style="font-family: Times New Roman; 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="text-align: justify; margin-left: 48px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; 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: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(1)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Marc Leduc was
appointed as a Director of the Company on July 22,
2019.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(2)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Ronald Clayton was
appointed as a Director of the Company on November 4,
2019.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(3)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Louis Dionne ceased
to be a Director on February 28, 2019.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(4)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">After the year end,
the Company issued bonus Shares with a fair value of $0.40 per
Share to directors under the Share-Based Compensation
Plan.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(5)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The stock options
issued, included and described under these Option-based awards were
granted to executive officers under the Share-Based Compensation
Plan. Stock options granted on July 29, 2019 to Messrs. Greg Hall
and Masa Igata were not valued at December 31, 2019, due to the
following: further to the voluntary forfeiture of share options
with expire dates on April 7, 2020, June 22, 2020, and November 14,
2023, at exercise prices ranging from $0.50 to $0.65, the Company
granted 794, 000 new stock options with an expire date of July 29,
2024, at an exercise price of $0.20 per share. As at December 31,
2019, the re-issuing of these options had been approved by the TSX,
but they had not been approved by the shareholders; consequently,
these options were not valued.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(6)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">80,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(7)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">80,000 stock
options exercisable at $0.20 and expiring on November 1,
2024.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(8)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">The equivalent of
150,000 and 80,000 stock options, exercisable at the equivalent of
$0.20 and $0.44, respectively, and expiring on July 29, 2024 and
November 1, 2024, respectively.</font></div>
</div>
</div>
<div style="display: table; margin-left: 48px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-size: 13px">(9)</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">200,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.</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">Description
of Compensation Plan</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
adopted the Share-Based Compensation Plan. The purpose of the
Share-Based Compensation Plan is to allow us to grant options,
bonus shares and stock appreciation rights (the
&#x201C;Awards&#x201D;) to directors, officers, employees and
consultants, as additional compensation, and as an opportunity to
participate in our success. The granting of Awards is intended to
align the interests of such persons with that of our
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Options
are exercisable for up to 10 years from the date of grant or as
determined by the corporate governance and compensation committee
of our Board (the &#x201C;CGCC&#x201D;) and are required to have
exercise prices equal to or greater than the market price (as
defined by the stock exchange on which our shares are principally
listed for trading and based on the volume weighted average trading
price of our shares as reported on such exchange for the five
trading days immediately preceding the day that the options are
granted). Options granted under the Share-Based Compensation Plan
vest at 12.5% per quarter over a two-year period unless determined
otherwise by the CGCC. In addition, the CGCC may accelerate the
vesting date, permit the conditional exercise of options, amend or
modify the terms of the options, or terminate options.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pursuant to the
Share-Based Compensation Plan, the CGCC may from time to time
authorize the issuance of Awards to directors, officers, employees
and consultants of the Company or employees of companies providing
management or consulting services to the Company. The maximum
number of common shares which may be reserved for issuance under
the Share-Based Compensation Plan is 14,374,419, which was approved
at the Company&#x2019;s AGM held September 12, 2019.</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">83</font></div>
</div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
Board has a formal mandate as outlined in our Corporate Governance
Policies and Procedures Manual, as amended (the
&#x201C;Manual&#x201D;). The Manual mandates the Board to: (i)
oversee management of the Company, (ii) exercise business judgment,
(iii) understand the Company and its business, (iv) establish
effective systems, (v) protect confidentiality and proprietary
information, and (vi) prepare for and attend Board, committee and
shareholder meetings. The Manual also includes written charters for
each committee and it contains a Code of Ethics, policies dealing
with issuance of news releases and disclosure documents, as well as
share trading black-out periods. Further, in the Manual, the Board
encourages but does not require continuing education for all the
Company&#x2019;s 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">Term
of Office</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Unless
the director&#x2019;s office is vacated earlier in accordance with
the provisions of the BCBCA, each of our current directors will
hold office until the conclusion of the next annual meeting of the
Company&#x2019;s shareholders or if no director is then elected,
until a successor is elected.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">John
Lee, our Executive Chairman, will hold his office for an indefinite
period until the termination of our consulting agreement dated
February 20, 2018 with his wholly-owned company, Linx. Our
consulting agreement with Linx may be terminated without cause by
either party upon 90 days&#x2019; written notice, or immediately by
us for cause.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Michael
Doolin, our Chief Executive Officer and Chief Operating Officer,
will hold his respective offices for an indefinite period until the
termination of our employment agreement dated March 5, 2019. Our
employment agreement with Mr. Doolin may be terminated by us
without cause upon the amount of written notice required by the
British Columbia Employment Standards Act based on each
employee&#x2019;s respective length of service, or immediately for
cause. Mr. Doolin may terminate his employment with us upon thirty
(30) days&#x2019; written notice.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Irina
Plavutska, our Chief Financial Officer, will hold her respective
offices for an indefinite period until the termination of our
employment agreement dated February 1, 2018. Our employment
agreement with Ms. Plavutska may be terminated by us without cause
upon the amount of written notice required by the British Columbia
Employment Standards Act based on each employee&#x2019;s respective
length of service, or immediately for cause. Ms. Plavutska may
terminate her employment with us upon two weeks&#x2019; written
notice.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ronald
Espell, our Vice-President, Environment and Sustainability, will
hold his office for an indefinite period until the termination of
our subsidiary Nevada Vanadium&#x2019;s employment agreement with
him dated October 23, 2018. Nevada Vanadium&#x2019;s employment
agreement with Mr. Espell may be terminated by Nevada Vanadium
without cause upon 30 days&#x2019; written notice and payment of a
severance amount equal to 6 months&#x2019; salary during the first
three years that Mr. Espell is employed, or one month&#x2019;s
salary for each full year that Mr. Espell is employed after three
years, by Nevada Vanadium, or immediately for cause. Mr. Espell may
terminate his employment with Nevada Vanadium upon 30 days&#x2019;
written notice.</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">Danniel
Oosterman, our Vice-President, Exploration, will hold his office
for an indefinite period on a month-to-month basis until the
termination of our consulting agreement dated February 12, 2018.
Our consulting agreement with Mr. Oosterman may be terminated by us
or by Mr. Oosterman upon thirty days&#x2019; written
notice.</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"><font style="color: #000000">Joaquin Merino-Marquez, our Vice-President, South
American Operation, will hold his office</font> for an indefinite
period on a month-to-month basis until the termination of our
consulting agreement dated November 1, 2019. Our consulting
agreement with Mr. <font style="color: #000000">Merino-Marquez</font> may be terminated by us or
by Mr. <font style="color: #000000">Merino-Marquez</font> upon
sixty days&#x2019; written notice.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
period during which each of our directors and executive officers
has held their respective office is specified in the table set
forth in &#x201C;<font style="font-style: italic">Item 6.A.
Directors, Senior Management and Employees - Directors and Senior
Management</font>.&#x201D;</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">Termination
and Change of Control 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Other
than as set out below, there are no contracts, agreements, plans or
arrangements that provide for payments to a NEO following or in
connection with any termination (whether voluntary, involuntary or
constructive), resignation, retirement, change of control of the
Company or change in responsibilities of the NEO.</font></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">84</font></div>
</div>
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</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
John Lee, Executive Chairman</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
January 1, 2010, the Company entered into a consulting agreement
with a holding company solely owned by Mr. Lee, at an annual fee of
$16,000 (as amended). On November 6, 2012 this agreement was
terminated and on November 7, 2012 a new consulting agreement was
entered into (which we refer to as the &#x201C;Mau
Agreement&#x201D;). On April 7, 2015, the Mau Agreement was
terminated, and the Company entered into an agreement with Linx
that subsequently, on October 9, 2018, was replaced with another
agreement with Linx (which we refer to as the &#x201C;New Link
Agreement&#x201D;) for an indefinite term. The New Linx Agreement
provides for: (1) consulting fees, with up to $36,600 per year
annual increases during fiscal years 2020 to 2022, at the
discretion of the Board of Directors; (2) bonus, based on
pre-determined criteria; (3) up to 3,000,000 common shares upon
meeting certain milestone targets described in the New Linx
Agreement; (4) stock options; (5) health and dental benefits; and
(6) vacation pay. The New Linx Agreement may be terminated by the
Company for any reason other than for cause upon 90 days&#x2019;
written notice with the Company having the option of paying the
consulting fees due under the New Linx Agreement for that 90-day
period in lieu thereof. In such case, provided the Company
successfully raises through one or more equity financing(s)
undertaken after the commencement of the New Linx Agreement: (a)
total gross aggregate proceeds of less than $25,000,000, the
Company will pay a termination payment of $1,000,000; or (b) total
gross aggregate proceeds of more than $25,000,000, the Company will
pay a termination payment of $1,600,000. The New Linx Agreement
with the Company also provides that in the event the New Linx
Agreement is terminated as a result of, or within six months
following, a significant change in the affairs of the Company such
as a take-over bid, change of control of the Board, the sale,
exchange or other disposition of a majority of the outstanding
common shares, the merger or amalgamation or other corporate
restructuring of the Company in a transaction or series of
transactions in which the Company&#x2019;s shareholders receive less
than 51% of outstanding common shares of the new or continuing
company (we refer to such significant change as a &#x201C;Change of
Control&#x201D;), Mr. Lee shall receive from the Company within 30
days, a payment equivalent to two years&#x2019; worth of his regular
annual consulting fees (currently $336,000). In the event Mr.
Lee&#x2019;s consulting agreement is terminated as a result of a
Change in Control, all of his rights to any stock options he holds
shall be governed by the provisions of his stock option agreements
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: 7px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Michael Doolin, Chief Executive Office and Chief Operating
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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mr.
Doolin entered into an employment agreement with the Company on
March 5, 2019 and a Change of Control agreement dated March 5,
2019. The employment agreement had an effective date of April 1,
2019 and is for an indefinite term and provides for: (1) salary;
(2) bonus, at the discretion of the Company; (3) stock options; (4)
employee benefits; and (5) vacation pay. In the event Mr.
Doolin&#x2019;s employment agreement is terminated as a result of a
Change in Control, all of his rights to any stock options he holds
shall be governed by the provisions of his stock option agreements
with the Company. Mr. Doolin&#x2019;s Change of Control agreement
provides that in the event his employment is terminated as a result
of, or within six months following, a Change in Control, Mr. Doolin
shall receive from the Company within 30 days, a payment equal to
two years of his regular annual salary.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Irina Plavutska, 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Ms.
Plavutska entered into her latest employment agreement with the
Company effective February 1, 2018, as amended January 31, 2019.
The employment agreement is for an indefinite term and provides
for: (1) salary; (2) bonus, at the discretion of the Company; (3)
stock options; (4) employee benefits; and (5) vacation pay. Her
employment agreement with the Company also provides that in the
event her employment is terminated as a result of, or within six
months following, a Change in Control, Ms. Plavutska shall receive
from the Company within 30 days, a payment equal to two years of
her regular annual salary (currently $132,000). In the event Ms.
Plavutska&#x2019;s employment agreement is terminated as a result of
a Change in Control, all of her rights to any stock options she
holds shall be governed by the provisions of her stock option
agreements 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
criteria used to determine the amounts payable to the NEOs is based
on industry standards and the Company&#x2019;s financial
circumstances. The agreements with the NEOs and subsequent changes
were accepted by the Board based on recommendations of the
CGCC.</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">Board
Committees</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Applicable
regulatory governance policies require that: (i) committees of the
our board of directors be composed of at least a majority of
independent directors; (ii) our Board expressly assume
responsibility, or assign to a committee of the Board,
responsibility for the development of the Company&#x2019;s approach
to governance issues; (iii) the audit committee of the Board (the
&#x201C;Audit Committee&#x201D;) be composed only of independent
directors, and the role of the Audit Committee be specifically
defined and include the responsibility for overseeing
management&#x2019;s system of internal controls; (iv) the Audit
Committee have direct access to the Company&#x2019;s external
auditor; and (v) the Board appoint a committee, composed of a
majority of independent directors, with the responsibility for
proposing new nominees to the Board and for assessing directors on
an on-going 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-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: 12px; margin-right: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
an Audit Committee comprised of directors Greg Hall (Chair), Masa
Igata and Marc Leduc. All members of the Audit Committee are
financially literate within the meaning of <font style="font-style: italic">National Instrument 52-110 Audit
Committees</font>. Messrs. Hall, Igata and Leduc are not
independent under the criteria established by SEC Rule 10A-3. The
relevant education and experience of each member of the Audit
Committee is described under &#x201C;<font style="font-style: italic">Item 6.A. Directors, Senior Management and
Employees - Directors and Senior Management</font>&#x201D; above.
The terms of reference of the Audit Committee are given in the
charter of the Audit Committee, which is available on the
Company&#x2019;s website.</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">85</font></div>
</div>
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</div>
</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: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Corporate
Governance and 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: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">The
Board has a CGCC (as previously defined) whose functions include
reviewing, on an annual basis, the compensation paid to the
Company&#x2019;s executive officers and directors, reviewing the
performance of the Company&#x2019;s executive officers, and making
recommendations on compensation to the Board. The CGCC periodically
considers the grant of incentive Awards under the Share-Based
Compensation Plan. The CGCC currently consists of Greg Hall
(Chairman), Masa Igata and Marc Leduc. All members have direct
experience relevant to their responsibilities on the CGCC. The
Board has not made a determination on whether Messrs. Hall, Igata
and Leduc meet the independence requirements for members of the
compensation committee established under NYSE American Company
Guide Section 805(c)(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; margin-left: 9px">
<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: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
December 31, 2019, we had three employees in Canada, ten employees
in Mongolia, and four non-independent consultants working in
Bolivia, Canada and the United States.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
December 31, 2018, we had four employees in Canada, seven employees
in Mongolia, and four non-independent consultants working in
Bolivia, Canada and the United States.</font></div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 4px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
December 31, 2017, we had three employees in Canada, fourteen
employees in Mongolia, and seven non-independent consultants
working in Bolivia, Canada and the United States.</font></div>
<div style="text-align: justify"><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">We rely
on and engage consultants on a contract basis to assist us to carry
on our administrative and exploration activities.</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">86</font></div>
</div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table sets forth certain information as of March 30, 2020
regarding the beneficial ownership of our common shares by the
executive officers and directors named herein. The percentage of
common shares beneficially owned is computed on the basis of
122,900,508 common shares outstanding as of March 30,
2020.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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:26%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Name
and Title</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Common
Shares</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Held</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Percentage
of Common</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Shares
as at</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">March
30, 2020</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Stock
Options</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Granted</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Exercise
Price of Stock Options ($)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Date
of Expiration (Stock Options)</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">John Lee, Executive
Chairman</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;">9,733,211</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">(1)</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;">7.9</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:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2-Jun-21</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">300,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.49</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jan-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">550,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jun-22</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">680,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.35</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Sep-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">400,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">6-Apr-23</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">350,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">17-Oct-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">700,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">300,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Michael Doolin,
Interim CEO &amp; COO</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;">1,525,000</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;">1</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: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;">500,000</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;">0.21</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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Apr-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">300,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">0.44</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Greg Hall,
Director</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;">238,092</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;">*</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;">120,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2-Jun-21</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.49</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jan-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jun-22</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.35</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Sep-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">40,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">6-Apr-23</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">17-Oct-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">120,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">80,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Marc Leduc,
Director</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;">23,585</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;">*</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">150,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">80,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Masa Igata,
Director</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;">1,138,928</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">(2)</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</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:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">120,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">2-Jun-21</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">70,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.49</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jan-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">50,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jun-22</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">50,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.35</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Sep-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">40,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">6-Apr-23</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">50,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">17-Oct-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">80,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Ronald Clayton,
Director</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">15,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">*</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Ronald Espell,
Vice-President,</font></div>
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Environment and
Sustainability</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;">150,000</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;">*</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Danniel Oosterman ,
Vice-President, Exploration</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;">100,000</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;">*</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">20-Feb-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">20,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">6-Apr-23</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">17-Oct-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">100,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">100,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Joaquin
Merino-Marquez, Vice-President,</font></div>
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">South
American Operations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">10,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">*</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Irina Plavutska,
Chief Financial Officer</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;">100,000</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;">*</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;">70,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.49</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">12-Jan-22</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">100,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.35</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Sep-22</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">37,500</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">6-Apr-23</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">50,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.33</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">17-Oct-23</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">100,000</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.20</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">29-Jul-24</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">100,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">1-Nov-24</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Louis Dionne,
(Former) Director (3)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">0</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">0</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">N/A</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">N/A</font></div>
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Michael Drozd,
(Former) VP, Operations (4)</font></div>
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">0</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">0</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">N/A</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">N/A</font></div>
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">TOTAL</font></div>
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><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;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,749,506</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;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; 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;">10.37</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:12%;">
<div><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; font-family:Times New Roman;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,557,500</font><font style="text-align: left; font-family:Times New Roman;font-weight:bold;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; 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;">&#xA0;</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:26%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; 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 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">87</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">
<br>
</div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px;">
<font style="text-decoration: underline; font-weight: bold; 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">
<div style="display: table-row">
<div style="display: table-cell; width: 36px"><font style="font-family: Times New Roman; font-size: 13px">(*)&#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">Indicates less than
1%.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 24px">
<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">The equivalent of
10,448,901 a total of 284,310 common shares are held by Merit
Holdings Ltd., a private company wholly owned and controlled by Mr.
Lee.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">The Common Shares
and Stock Option grants are held by Sophir Asia Limited, a private
company wholly owned and controlled by Mr. Igata.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Louis Dionne ceased
to be a Director on February 28, 2019.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">Michael Drozd was
appointed Vice-President, Operations on August 16, 2018 and ceased
to be Vice -President of the Company effective November 7,
2019.</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
&#x201C;<font style="font-style: italic">Description of Compensation
Plan</font>&#x201D; for more details.</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="i7">I</a>TEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no entities who, to our knowledge, own beneficially, directly
or indirectly, more than 5% of any class of our voting securities
(other than as set forth in the directors&#x2019; and
officers&#x2019; table).</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">John
Lee&#x2019;s share ownership was reduced from 14.2% on March 29,
2019 to 7.9%, on March 18, 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: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Voting Rights</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&#x2019;s major shareholders do not have different voting
rights from our other shareholders.</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">
Record 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
March 27, 2020, there were 261 holders of record of our common
shares, of which 77 were U.S. residents owning 2,234,727 (1.81%) of
our outstanding common shares outstanding at that
time.</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">
Control</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 is a publicly owned Canadian corporation, the shares of
which are owned by Canadian residents, U.S. residents, and
residents of other countries.</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">
Change in Control</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">To the
best of the Company&#x2019;s knowledge, there are no arrangements
the operation of which may result in a change in control of the
Company.</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%"><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">88</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="display: table; margin-left: 9px">
<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">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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
related party transactions of the Company since January 1, 2017 are
presented 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 style="display: table; margin-left: 29px">
<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">Linx Partners Ltd.,
a private company controlled by John Lee, our interim President,
interim CEO and a director of the Company, has provided management
and consulting services to the Company since April 7, 2015 (prior
to that, from June 13, 2011, Mr. Lee&#x2019;s management and
consulting services were provided to the Company though Mau Capital
Management LLC, another private company controlled by Mr. Lee)..
During the year ended December 31, 2019, we paid $371,000 (2018 -
$401,044; 2017 - $363,781) for management and consulting services
rendered to the Company by Linx Partners Ltd. Linx Partners Ltd.
provided a revolving credit facility for a maximum principal amount
of $2.5 million, with a two-year term at a simple interest rate of
18% per annum. The Company fully paid the amount owing under the
credit facility and subsequently terminated the same on November
28, 2017.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 29px">
<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">MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, a director of the
Company, provides consulting services to the Company. <font style="font-size: 13px">During the year ended December 31, 2019 we paid
$21,400 (2018 - $21,200; 2017 - $23,600) for consulting services
rendered to the Company by MaKevCo Consulting
Inc.</font></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: 48px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Sophir
Asia Ltd., a private company controlled by Masa Igata, a director
of the Company, provides consulting services to the
Company.<font style="font-size: 13px">&#xA0;</font>During the year
ended December 31, 2019, we paid $19,600 (2018 - $19,100; 2017 -
$19,700) for consulting services rendered to the Company by Sophir
Asia Ltd. A summary of related party transactions <font style="font-style: italic">by related party</font> and a summary of the
transactions <font style="font-style: italic">by nature</font>
among the related parties is as follows:</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Directors and
officers</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;">1,685,242</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,265,152</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">307,425</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>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Linx Partners
Ltd.</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;">371,000</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;">401,044</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;">363,781</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">MaKevCo Consulting
Inc.</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;">21,400</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>
<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;">21,200</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;">23,600</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>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Sophir Asia
Ltd.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">19,600</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">19,100</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">19,700</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 64%;">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 4px;"><font style="font-weight: bold; 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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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="margin-left: 12px;">
<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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Consulting and
management 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;">218,500</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">268,456</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">247,525</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>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Directors'
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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">103,805</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;">70,378</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;">60,600</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Mineral
properties</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;">1,171,585</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;">631,610</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;">201,875</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>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Salaries</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">603,352</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">736,052</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">204,506</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;border-bottom:double 4px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; 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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
December 31, 2019, amounts due to related parties were $30,533
(December 31, 2018 - $4,634, (December 31, 2017 &#x2013;
$160,503).</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Interests
of Experts and Counsel</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 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">89</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: 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="i8">I</a>TEM 8.&#xA0; FINANCIAL INFORMATION</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Consolidated 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
consolidated financial statements of the Company and the report of
the independent registered public accounting firm, Davidson &amp;
Company LLP, are filed as part of this Annual Report under Item
18.</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">
Legal or Arbitration 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Other
than as disclosed below, the Company has not been involved in any
legal or arbitration proceedings or regulatory actions which may
have, or have had in the recent past, significant effects on the
company&#x2019;s financial position or profitability. The Company
accrues for liabilities when it is probable and the amount can be
reasonably estimated.</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">ASC
Tax Claim</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">On
January 2, 2015, the Company acquired ASC Holdings Limited and ASC
Bolivia LDC (which together, hold ASC Bolivia LDC Sucursal Bolivia,
which in turn, held Apogee Silver Ltd.&#x2019;s
(&#x201C;Apogee&#x201D;) joint venture interest in the Pulacayo
Project) and Apogee Minerals Bolivia S.A. Pursuant to the terms of
the Agreement, the Company agreed to assume all liabilities of
these former Apogee subsidiaries, including legal and tax
liabilities associated with the Pulacayo Project.&#xA0; During
Apogee&#x2019;s financial year ended June 30, 2014, it received
notice from the Servicio de Impuestos Nacionales, the national tax
authority in Bolivia, that ASC Bolivia LDC Sucursal Bolivia, now
the Company&#x2019;s wholly-owned subsidiary, owed approximately
Bs42,000,000 in taxes, interest and penalties relating to a
historical tax liability in an amount originally assessed at
approximately $7,600,000 in 2004, prior to Apogee acquiring the
subsidiary in 2011.&#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-family: Times New Roman; font-size: 13px">Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.&#xA0; The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority&#x2019;s assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court&#xA0;that
among other things, declared null and void the previous Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.</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="color: #000000; font-family: Times New Roman; font-size: 13px">On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary as&#xA0;not
proven.</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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">The
Resolution is final and binding. Hence neither the Company nor the
Company&#x2019;s Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.</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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.</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">Red
Hill Tax Claim</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 year ended December 31, 2014, the Company&#x2019;s wholly-owned
subsidiary, Red Hill Mongolia LLC (&#x201C;Red Hill&#x201D;) was
issued a letter from the Sukhbaatar District Tax Division notifying
it of the results of the Sukhbaatar District Tax Division&#x2019;s
VAT inspection of Red Hill&#x2019;s 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill&#x2019;s claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division&#x2019;s findings as the tax assessment appeared to the
Company to be unfounded.&#xA0; The Company disputed the Sukhbaatar
District Tax Division&#x2019;s assessment and submitted a complaint
to the Capital City Tax Tribunal.&#xA0;&#xA0;On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill&#x2019;s VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.</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">90</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: 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">Due to
the uncertainty of realizing the VAT balance, the Company has
recorded an impairment charge for the full VAT balance in the year
ended December 31, 2015.</font></div>
<div style="text-align: justify; margin-left: 12px; 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: 12px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">In
<font style="color: #000000">June 2019, the Company received a
positive resolution issued from the</font> Capital City Tax
Tribunal, <font style="color: #000000">which is binding and final,
affirmed Red Hill&#x2019;s outstanding VAT credit of 1.169 billion
MNT resulted from past mining equipment purchases. The VAT credit
can be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia&#x2019;s Ministry of Finance within 12 to 24 months
processing time.</font> Due to the credit risk associated with the
VAT credit, the Company has provided a full valuation provision
against the balance.</font></div>
<div style="text-align: justify; margin-left: 12px; 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: 12px; margin-right: 0px; text-indent: 0px;">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Dividend Policy</font></div>
<div style="text-align: justify; margin-left: 12px; 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: 12px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">To
date, we have not paid any dividends on our outstanding common
shares and it is not contemplated that we will pay any dividends in
the immediate or foreseeable future. It is our intention to use all
available cash flow to finance further operations and exploration
of our resource properties. Holders of our common shares will be
entitled to receive dividends, if, as and when declared by the
Board out of profits, capital or otherwise.</font></div>
<div style="text-align: justify; margin-left: 12px; 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: 12px; margin-right: 0px; text-indent: 0px;">
<font style="font-family: Times New Roman; font-size: 13px">There
are no restrictions that could prevent us from paying dividends on
our common shares except that we may not pay dividends if that
payment would render us insolvent.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 8px; 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="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">None.</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="i9">I</a>TEM 9. THE OFFER AND LISTING</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Offer
and Listing Details</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s common shares trades on the TSX under the symbol
&#x201C;ELEF&#x201D;, the OTCQX under the symbol &#x201C;SILEF&#x201D;
and the Frankfurt Stock Exchange under the symbol
&#x201C;1P2N&#x201D;.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: 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: 9px">
<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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
common shares are listed for trading on the TSX, the OTCQX, and the
Frankfurt Stock Exchange. Our common shares were voluntarily
delisted from the OTCQX on January 29, 2016 and began trading again
on the OTCQX on February 27, 2018. The following tables set forth
the reported high and low prices on the TSX for the five most
recent fiscal years.</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 style="margin-left: 12px;">
<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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">YEAR</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">TSX</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">(CDN$)
HIGH</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">TSX</font></div>
<div style="text-align: left"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">(CDN$)
LOW</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
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;">0.49</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;">0.15</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>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
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;">4.35</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;">0.105</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2017</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;">6.19</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;">2.78</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>
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2016</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;">4.61</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;">0.015</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">December 31,
2015</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;">0.075</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;">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>
</tr></table>
</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">91</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: 13px;">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: 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: 9px">
<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: 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: 11px">
<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="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="i10">I</a>TEM 10.&#xA0; ADDITIONAL INFORMATION</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: 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: 9px">
<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">Memorandum
and Articles of Association</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="text-decoration: underline; font-style: italic; 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: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
amalgamated under the British Columbia Business Corporations Act
(BCBCA). Our British Columbia incorporation number is
BC0912924.</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
</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 style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Objects and Purposes of Our 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-family: Times New Roman; font-size: 13px">Our
articles do not contain a description of our objects and
purposes.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Voting on Proposals. Arrangements, Contracts or Compensation by
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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Other
than as disclosed below, our articles do not restrict directors'
power to (a) vote on a proposal, arrangement or contract in which
the directors are materially interested or (b) to vote compensation
to themselves or any other members of their body in the absence of
an independent quorum.</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
BCBCA does, however, contain restrictions in this regard. The BCBCA
provides that a director who holds a disclosable interest in a
contract or transaction into which we have entered or proposes to
enter is not entitled to vote on any directors' resolution to
approve that contract or transaction, unless all the directors have
a disclosable interest in that contract or transaction, in which
case any or all of those directors may vote on such resolution. A
director who holds a disclosable interest in a contract or
transaction into which we have entered or proposes to enter and who
is present at the meeting of directors at which the contract or
transaction is considered for approval may be counted in the quorum
at the meeting whether or not the director votes on any or all of
the resolutions considered at the meeting. A director or senior
officer generally holds a disclosable interest in a contract or
transaction if (a) the contract or transaction is material to our
company; (b) we have entered, or proposed to enter, into the
contract or transaction, and (c) either (i) the director or senior
officer has a material interest in the contract or transaction or
(ii) the director or senior officer is a director or senior officer
of, or has a material interest in, a person who has a material
interest in the contract or transaction. A director or senior
officer does not hold a disclosable interest in a contract or
transaction merely because the contract or transaction relates to
the remuneration of the director or senior officer in that person's
capacity as director, officer, employee or agent of our company or
of an affiliate of our company.</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">92</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: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Borrowing 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
articles provide that we, if authorized by our directors,
may:</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: 0%">
<div style="text-align: justify; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 100%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">borrow
money in the manner and amount, on the security, from the sources
and on the terms and conditions that they consider
appropriate;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 0%">
<div style="text-align: justify; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 100%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">issue
bonds, debentures and other debt obligations either outright or as
security for any liability or obligation of our company or any
other person and at such discounts or premiums and on such other
terms as they consider appropriate;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 0%">
<div style="text-align: justify; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 100%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">guarantee the
repayment of money by any other person or the performance of any
obligation of any other person; and</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 0%">
<div style="text-align: justify; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 100%">
<div style="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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 our
company.</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="text-decoration: underline; font-style: italic; font-family: Times New Roman; font-size: 13px">
Qualifications 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
our articles, a director is not required to hold a share in the
capital of the Company as qualification for his or her office but
must be qualified as required by the BCBCA to become, act or
continue to act as a director. Our articles contain no provisions
regarding retirement or non-retirement of directors under an age
limit requirement.</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; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Share 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-family: Times New Roman; font-size: 13px">The
holders of our common shares are entitled to vote at all meetings
of shareholders of the Company, to receive dividends if, as and
when declared by the Board and to participate ratably in any
distribution of property or assets upon the liquidation, winding-up
or other dissolution of the Company. Our common shares carry no
pre-emptive rights, conversion or exchange rights, redemption,
retraction, repurchase, sinking fund or purchase fund provisions.
There are no provisions requiring the holders of our common shares
to contribute additional capital and there are no restrictions on
the issuance of additional securities by the Company. There are no
restrictions on the repurchase or redemption of the Company&#x2019;s
common shares by the Company except to the extent that any such
repurchase or redemption would render the Company insolvent
pursuant to the BCBCA.</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; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Procedures to Change the Rights 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
articles state that subject to Article 9.2 of the BCBCA, the
Company may by ordinary resolution of its shareholders: (a) create
one or more classes or series of shares or, if none of the shares
of a class or series of shares are allotted or issued, eliminate
that class or series of shares; (b) increase, reduce or eliminate
the maximum number of shares that the Company is authorized to
issue out of any class or series of shares or establish a maximum
number of shares that the Company is authorized to issue out of any
class or series of shares for which no maximum is established; (c)
subdivide or consolidate all or any of its unissued, or fully paid
issued shares; (d) if the Company is authorized to issue shares of
a class of shares with par value: (i) decrease the par value of
those shares, or (ii) if none of the shares of that class of shares
are allotted or issued, increase the par value of those shares);
(e) change all or any of its unissued or fully paid issued shares
with par value into shares without par value or all or any of its
unissued shares without par value into shares with par value; (f)
alter the identifying name of any of its shares; or (g) otherwise
alter its shares or authorized share structure when required or
permitted to do so by the BCBCA.</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; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Meetings</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
director holds office until our next annual general meeting or
until his office is earlier vacated in accordance with our articles
or with the provisions of the BCBCA. A director appointed or
elected to fill a vacancy on our board also holds office until our
next annual general 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-family: Times New Roman; font-size: 13px">Our
articles and the BCBCA provide that our annual meetings of
shareholders must be held at least once in each calendar year and
not more than 15 months after the last annual general meeting at
such time and place as our Board may determine. Our directors may,
at any time, call a meeting of our shareholders.</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-family: Times New Roman; font-size: 13px">Under
the BCBCA, the holders of not less than five percent of our issued
shares that carry the right to vote at a meeting may requisition
our directors to call a meeting of shareholders for the purposes of
transacting any business that may be transacted at a general
meeting.</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">93</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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
our articles, the quorum for the transaction of business at a
meeting of our shareholders is two persons who are, present in
person or represent by proxy, shareholders holding, in the
aggregate, at least five percent of the issued shares entitled to
be voted 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-family: Times New Roman; font-size: 13px">Our
articles state that in addition to those persons who are entitled
to vote at a meeting of our shareholders, the only other persons
entitled to be present at the meeting are the directors, the
president (if any), the secretary (if any), the assistant secretary
(if any), the auditor for our company, and any other persons
invited by our directors but if any of those persons does attend a
meeting of shareholders, that 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Limitations on Ownership of 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Neither
Canadian law nor our articles limit the right of a non-resident to
hold or vote common shares of the Company, other than as provided
in the Investment Canada Act (the &#x201C;Investment Act&#x201D;), as
amended by the World Trade Organization Agreement Implementation
Act (the &#x201C;WTOA Act&#x201D;). The Investment Act generally
prohibits implementation of a direct reviewable investment by an
individual, government or agency thereof, corporation, partnership,
trust or joint venture that is not a &#x201C;Canadian,&#x201D; as
defined in the Investment Act (a &#x201C;non-Canadian&#x201D;),
unless, after review, the minister responsible for the Investment
Act is satisfied that the investment is likely to be of net benefit
to Canada. An investment in the common shares of the company by a
non-Canadian (other than a &#x201C;WTO Investor,&#x201D; as defined
below) would be reviewable under the Investment Act if it were an
investment to acquire direct control of the company, and the value
of the assets of the company were $5.0 million or more (provided
that immediately prior to the implementation of the investment the
Company was not controlled by WTO Investors). An investment in
common shares of the Company by a WTO Investor (or by a
non-Canadian other than a WTO Investor if, immediately prior to the
implementation of the investment the Company was controlled by WTO
Investors) would be reviewable under the Investment Act if it were
an investment to acquire direct control of the company and the
value of the assets of the Company equaled or exceeded an amount
determined by the Minister of Finance (Canada) (the
&#x201C;Minister&#x201D;) on an annual basis. The current threshold
for review for WTO Investors or vendors (other than Canadians) is
$1 billion. A non-Canadian, whether a WTO Investor or otherwise,
would be deemed to acquire control of the company for purposes of
the Investment Act if he or she acquired a majority of the common
shares of the company. The acquisition of less than a majority, but
at least one-third of the shares, would be presumed to be an
acquisition of control of the company, unless it could be
established that the company is not controlled in fact by the
acquirer through the ownership of the shares. In general, an
individual is a WTO Investor if he or she is a
&#x201C;national&#x201D; of a country (other than Canada) that is a
member of the World Trade Organization (&#x201C;WTO Member&#x201D;)
or has a right of permanent residence in a WTO Member. A
corporation or other entity will be a &#x201C;WTO Investor&#x201D; if
it is a &#x201C;WTO Investor-controlled entity,&#x201D; pursuant to
detailed rules set out in the Investment Act. The U.S. is a WTO
Member. Certain transactions involving our common shares would be
exempt from the Investment Act, including:</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: 1%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 99%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">an
acquisition of the shares if the acquisition were made in the
ordinary course of that person&#x2019;s business as a trader or
dealer in securities;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 1%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 99%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">an
acquisition of control of the Company in connection with the
realization of a security interest granted for a loan or other
financial assistance and not for any purpose related to the
provisions of the Investment Act; and</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 1%">
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x25CF;</font></div>
</td>
<td style="vertical-align: top; width: 99%">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">an
acquisition of control of the Company by reason of an amalgamation,
merger, consolidation or corporate reorganization, following which
the ultimate direct or indirect control in fact of the Company,
through the ownership of voting interests, remains
unchanged.</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>
</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-style: italic; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Change in 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no provisions in our articles or in the BCBCA that would have
the effect of delaying, deferring or preventing a change in control
of our company, and that would operate only with respect to a
merger, acquisition or corporate restructuring involving our
Company or our subsidiaries.</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; text-decoration: underline; font-family: Times New Roman; font-size: 13px">
Ownership Threshold</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">Our
articles or the BCBCA do not contain any provisions governing the
ownership threshold above which shareholder ownership must be
disclosed. Securities legislation in Canada, however, requires that
we disclose in our information circular for our annual general
meeting, holders who beneficially own more than 10% of our issued
and outstanding shares. Most state corporation statutes do not
contain provisions governing the threshold above which shareholder
ownership must be disclosed. Upon the effectiveness of this
Registration Statement, we expect that the United States federal
securities laws will require us to disclose, in our annual report
on Form 20-F, holders who own 5% or more of our issued and
outstanding shares.</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">94</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="display: table; margin-left: 9px">
<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="display: table; margin-left: 57px">
<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 Amendment to
the Mineral Lease Agreement dated April 19, 2018 between the
Company and Janelle Dietrich, concerning the lease by the Company
of those mining claims which constitute the Gibellini group of
claims; and</font></div>
</div>
</div>
<div style="text-align: justify"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 57px">
<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 Pulacayo Mining
Production Contract dated September 30, 2019, between the Company
and the Corporaci&#xF3;n Minera de Bolivia, a branch of the
Bolivian Mining Ministry.</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">There
are no governmental laws, decrees, regulations or other
legislation, including foreign exchange controls, in Canada which
may affect the export or import of capital or that may affect the
remittance of dividends, interest or other payments to non-resident
holders of the Company&#x2019;s securities. Any remittances of
dividends to United States residents, however, are subject to a
withholding tax pursuant to the Income Tax Act (Canada) and the
Canada-U.S. Income Tax Convention (1980) (the
&#x201C;Convention&#x201D;), each as amended. Remittances of interest
to U.S. residents entitled to the benefits of such Convention are
generally not subject to withholding taxes except in limited
circumstances involving participating interest payments. Certain
other types of remittances, such as royalties paid to U.S.
residents, may be subject to a withholding tax depending on all of
the circumstances.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: center; margin-left: 0px; margin-right: 13px; 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: 7px; 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: 7px; 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, without limitation,
specific tax consequences to a U.S. Holder under an applicable
income 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 net investment income, U.S. federal
alternative minimum, U.S. federal estate and gift, U.S. state and
local, and non-U.S. tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of common shares. In
addition, except as specifically set forth below, this summary does
not discuss applicable tax reporting requirements. Each prospective
U.S. Holder should consult its own tax advisors regarding the U.S.
federal, U.S. federal net investment income, U.S. federal
alternative minimum, U.S. federal estate and gift, U.S. state and
local, and non-U.S. 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>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; 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 &#x201C;IRS&#x201D;) 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 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">Scope
of this Summary</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">
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: 7px; 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 &#x201C;Code&#x201D;), 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
&#x201C;Canada-U.S. Tax Convention&#x201D;), 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
retroactively. This summary does not discuss the potential effects,
whether adverse or beneficial, of any proposed
legislation.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<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">95</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of this summary, the term &#x201C;U.S. Holder&#x201D; 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: 49px">
<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">an individual who
is a citizen or resident of the United States;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">a corporation (or
other entity treated as a corporation for U.S. federal income tax
purposes) organized under the laws of the United States, any state
thereof or the District of Columbia;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 49px">
<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">an estate whose
income is subject to U.S. federal income taxation regardless of its
source; or</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div style="display: table-row">
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<div style="text-align: left; display: table-cell"><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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 7px; 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, U.S. Holders that:
(a) are tax-exempt organizations, qualified retirement plans,
individual retirement accounts, or other tax-deferred accounts; (b)
are financial institutions, underwriters, insurance companies, real
estate investment trusts, or regulated investment companies; (c)
are broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (d) have a
&#x201C;functional currency&#x201D; other than the U.S. dollar; (e)
own common shares as part of a straddle, hedging transaction,
conversion transaction, constructive sale, or other arrangement
involving more than one position; (f) acquire common shares in
connection with the exercise of employee stock options or otherwise
as compensation for services; (g) hold common shares other than as
a capital asset within the meaning of Section 1221 of the Code
(generally, property held for investment purposes); (h) are subject
to special tax accounting rules with respect to common shares; (i)
own, have owned or will own (directly, indirectly, or by
attribution) 10% or more of the total combined voting power or
value of the outstanding shares of the Company; (j) are
partnerships or other pass-through entities; (k) U.S. expatriates
or former long-term residents of the U.S.; (l) are 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 &#x201C;Tax
Act&#x201D;); (m) are 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; (n) are persons
whose common shares constitute &#x201C;taxable Canadian
property&#x201D; under the Tax Act; or (o) are 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 advisors regarding the U.S. federal, U.S. federal net
investment income, U.S. federal alternative minimum, U.S. federal
estate and gift, U.S. state and local, and non-U.S. 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>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; 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
&#x201C;pass-through&#x201D; entity) for U.S. federal income tax
purposes holds common shares, the U.S. federal income tax
consequences to such entity or arrangement and the partners (or
other owners or participants) of such entity or arrangement
generally will depend on the activities of the entity or
arrangement and the status of such partners (or owners or
participants). This summary does not address the tax consequences
to any such partner (or owner or participants). Partners (or other
owners or participants) of entities or arrangements that are
classified as partnerships or as &#x201C;pass-through&#x201D;
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>
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</div>
</div>
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<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">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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">If the
Company were to constitute a &#x201C;passive foreign investment
company&#x201D; under the meaning of Section 1297 of the Code (a
&#x201C;PFIC&#x201D;, as defined below) for any year during a U.S.
Holder&#x2019;s holding period, then certain potentially adverse
rules may affect the U.S. federal income tax consequences to a U.S.
Holder as a result of the acquisition, ownership and disposition of
common shares. The Company believes that it was classified as a
PFIC during the tax year ended December 31, 2019, and based on
current business plans and financial expectations, the Company
expects that it will be a PFIC for the current tax year and may be
a PFIC in future tax years. No opinion of legal counsel or ruling
from the IRS concerning the status of the Company as a PFIC has
been obtained or is currently planned to be requested. 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 advisors regarding the PFIC status of the
Company and each subsidiary of the Company. In any year in which
the Company is classified as a PFIC, a U.S. Holder will be required
to file an annual report with the IRS containing such information
as Treasury Regulations and/or other IRS guidance may require. In
addition to penalties, a failure to satisfy such reporting
requirements may result in an extension of the time period during
which the IRS can assess a tax. 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 annually.</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: 7px; 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
&#x201C;PFIC income test&#x201D;) or (b) 50% or more of the value of
the Company&#x2019;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 &#x201C;PFIC
asset test&#x201D;). &#x201C;Gross income&#x201D; generally includes
all sales revenues less the cost of goods sold, plus income from
investments and from incidental or outside operations or sources,
and &#x201C;passive income&#x201D; 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: 7px; 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 of a foreign
corporation&#x2019;s commodities are stock in trade or inventory,
depreciable property used in a trade or business, or supplies
regularly used or consumed in the ordinary course of its 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For
purposes of the PFIC income test and PFIC 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 PFIC asset test
described above, and assuming certain other requirements are met,
&#x201C;passive income&#x201D; does not include certain interest,
dividends, rents, or royalties that are received or accrued by the
Company from certain &#x201C;related persons&#x201D; (as defined in
Section 954(d)(3) of the Code) also organized in Canada, 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: 7px; 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&#x2019;s direct or indirect equity interest in any company
that is also a PFIC (a &#x2018;&#x2018;Subsidiary
PFIC&#x2019;&#x2019;), and will generally be subject to U.S. federal
income tax on their proportionate share of (a) any &#x201C;excess
distributions,&#x201D; 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 under the PFIC rules even if no distributions are
received and no redemptions or other dispositions of common shares
are made.</font></div>
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<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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 8px; 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 &#x201C;qualified electing fund&#x201D; or
&#x201C;QEF&#x201D; under Section 1295 of the Code (a &#x201C;QEF
Election&#x201D;) or makes a mark-to-market election under Section
1296 of the Code (a &#x201C;Mark-to-Market Election&#x201D;). 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
&#x201C;Non-Electing U.S. Holder.&#x201D;</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: 8px; 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 &#x201C;excess distribution&#x201D; received on
the common shares. A distribution generally will be an
&#x201C;excess distribution&#x201D; 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&#x2019;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: 7px; 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
&#x201C;excess distribution&#x201D; 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&#x2019;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 (and not eligible for certain preferred rates). 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
&#x201C;personal interest,&#x201D; 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: 7px; 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>
<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">
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: 7px; 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 the 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&#x2019;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, &#x201C;net capital
gain&#x201D; is the excess of (a) net long-term capital gain over
(b) net short- term capital loss, and &#x201C;ordinary
earnings&#x201D; are the excess of (a) &#x201C;earnings and
profits&#x201D; 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 &#x201C;personal interest,&#x201D; 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: 7px; 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 (a) may receive a tax-free distribution
from the Company to the extent that such distribution represents
&#x201C;earnings and profits&#x201D; 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&#x2019;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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; 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
&#x201C;timely&#x201D; if such QEF Election is made for the first
year in the U.S. Holder&#x2019;s holding period for the common
shares in which the Company was a PFIC. A</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.
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</font></div>
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<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">U.S.
Holder does not make a timely and effective QEF Election for the
first year in the U.S. Holder&#x2019;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 &#x201C;purging&#x201D;
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 makes a QEF Election but does not
make a &#x201C;purging&#x201D; election to recognize gain as
discussed in the preceding sentence, then such U.S. Holder shall be
subject to the QEF Election rules and shall continue to be subject
to tax under the rules of Section 1291 discussed above with respect
to its common shares. 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: 7px; 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 all 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: 0px; 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</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">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 advisors regarding the availability of, and
procedure for making, a 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: 7px; 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 Company
does not 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 of Section 1291 of the Code discussed above
that apply to Non-Electing U.S. Holders with respect to the
taxation of gains and excess distributions.</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">
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: 7px; 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
&#x201C;marketable stock&#x201D; 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 &#x201C;regularly
traded&#x201D; 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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 7px; 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&#x2019;s holding period for the common shares for which the
Company is a PFIC and 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 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 style="text-align: justify; margin-left: 12px; margin-right: 7px; 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&#x2019;s adjusted 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&#x2019;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>
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<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">99</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: 7px; 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&#x2019;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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A U.S.
Holder makes a Mark-to-Market Election by attaching a completed IRS
Form 8621 to a timely filed United States federal income tax
return. 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 &#x201C;marketable
stock&#x201D; or the IRS consents to revocation of such election.
Each U.S. Holder should consult its own tax advisors 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: 7px; 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 avoid 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 to its
shareholder.</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">
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: 7px; 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: 7px; 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 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: 8px; 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 advisors
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: 7px; 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 advisors 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>
<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">General
Rules Applicable to the 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following discussion describes the general rules applicable to the
ownership and disposition of the common shares but is subject in
its entirety to the special rules described above under the heading
&#x201C;Passive Foreign Investment Company
Rules.&#x201D;</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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">100</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 7px; 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 and
accumulated &#x201C;earnings and profits&#x201D; 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 for the tax year of such distribution or the
preceding tax year. To the extent that a distribution exceeds the
current and accumulated &#x201C;earnings and profits&#x201D; of the
Company, such distribution will be treated first as a tax-free
return of capital to the extent of a U.S. Holder&#x2019;s tax basis
in the common shares and thereafter as gain from the sale or
exchange of such common shares. (See &#x201C;Sale or Other Taxable
Disposition of Common Shares&#x201D; below). However, the Company
may not maintain the calculations of its earnings and profits in
accordance with U.S. federal income tax principles, and each U.S.
Holder may have to assume that any distribution by the Company with
respect to the common shares will constitute ordinary dividend
income. Dividends received on common shares by corporate U.S.
Holders generally will not be eligible for the &#x201C;dividends
received deduction.&#x201D; Subject to applicable limitations and
provided the Company is eligible for the benefits of the
Canada-U.S. Tax Convention or the common shares are readily
tradable on a United States securities market, dividends paid by
the Company to non-corporate U.S. Holders, including individuals,
generally will be eligible for the preferential tax rates
applicable to long-term capital gains for dividends, provided
certain holding period and other conditions are satisfied,
including that the Company not be classified as a PFIC in the tax
year of distribution or in the preceding tax year. The dividend
rules are complex, and each U.S. Holder should consult its own tax
advisors 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 7px; 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&#x2019;s tax basis in such common shares sold or
otherwise disposed of. A U.S. Holder&#x2019;s tax basis in common
shares generally will be such holder&#x2019;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: 8px; 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Additional
Considerations</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">
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: 7px; 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. source income
or loss for foreign tax credit purposes. Different rules apply to
U.S. Holders who use the accrual method of tax accounting. Each
U.S. Holder should consult its own U.S. tax advisors regarding the
U.S. federal income tax consequences of receiving, owning, and
disposing of foreign currency.</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">
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: 7px; 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&#x2019;s U.S. federal income tax liability on a
dollar-for-dollar basis, whereas a deduction will reduce a U.S.
Holder&#x2019;s income that is 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. The foreign tax credit rules are complex
and involve the application of rules that depend on a U.S.
Holder&#x2019;s particular circumstances. Each U.S. Holder should
consult its own U.S. tax advisor regarding the foreign tax credit
rules.</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">101</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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Under
U.S. federal income tax law, certain categories of U.S. Holders
must file information returns with respect to their investment in,
or involvement in, a foreign corporation. For example, U.S. return
disclosure obligations (and related penalties) are imposed on
individuals who are U.S. Holders that hold certain specified
foreign financial assets in excess of certain thresholds. 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
certain financial institutions. 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: 7px; 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 24%, if a U.S.
Holder (a) fails to furnish such U.S. Holder&#x2019;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&#x2019;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.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
discussion of reporting requirements set forth above is not
intended to constitute a complete description of all reporting
requirements that may apply to a U.S. Holder. A failure to satisfy
certain reporting requirements may result in an extension of the
time period during which the IRS can assess a tax and, under
certain circumstances, such an extension may apply to assessments
of amounts unrelated to any unsatisfied reporting requirement. Each
U.S. Holder should consult its own tax advisors 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="text-align: justify; margin-left: 12px; margin-right: 7px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">THE
ABOVE SUMMARY IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF
ALL TAX CONSIDERATIONS APPLICABLE TO U.S. HOLDERS WITH RESPECT TO
THE ACQUISITION, OWNERSHIP, AND DISPOSITION OF COMMON SHARES. U.S.
HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX
CONSIDERATIONS APPLICABLE TO THEM IN THEIR OWN PARTICULAR
CIRCUMSTANCES.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 11px">
<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: 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: 11px">
<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: 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: 11px">
<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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
subject to the informational requirements of the Exchange Act and
file reports and other information with the SEC. You may read and
copy any of our reports and other information we file with the SEC
and obtain copies upon payment of any prescribed fees from the
Public Reference Room maintained by the SEC at 100 F Street, N.E.,
Washington, D.C. 20549. In addition, the SEC maintains a website
that contains reports and other information regarding registrants
that file electronically with the SEC at http://www.sec.gov. The
public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
documents concerning us referred to in this Annual Report may be
viewed during normal business hours at our executive offices at
Suite 1610 &#x2013; 409 Granville Street, Vancouver, British
Columbia, V6C 1T2.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We are
required to file reports and other information with the securities
commissions in Canada. You are invited to read and copy any
reports, statements or other information, other than confidential
filings, that we file with the provincial securities commissions.
These filings are also electronically available from SEDAR at
www.sedar.com, the Canadian equivalent of the SEC&#x2019;s
electronic document gathering and retrieval system.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 11px">
<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: 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 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">102</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: 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="i11">I</a>TEM 11.&#xA0; QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<div style="display: table-row">
<div style="display: table-cell; width: 43px"><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: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Quantitative
Information about market risk</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-style: italic; font-family: Times New Roman; font-size: 13px">
Market Risk</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
significant market risks to which the Company is exposed are
interest rate risk, foreign currency risk, and commodity and equity
price risk. Despite some signs of improvement, market challenges
for commodities and mining sector equities continued during the
first part of the year. These economic conditions create
uncertainty particularly over the price of vanadium, silver and
coal, the exchange rate between Canadian and US dollars and the
timing of any further recovery remains uncertain.</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">
Interest Rate Risk</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company&#x2019;s cash and cash equivalents primarily include
highly liquid investments that earn interest at market rates that
are fixed to maturity. Due to the short-term nature of these
financial instruments, fluctuations in market rates do not have
significant impact on the fair values of the financial instruments
as of December 31, 2019. The Company manages interest rate risk by
maintaining an investment policy that focuses primarily on
preservation of capital and liquidity.</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">
Foreign Currency Risk</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is exposed to foreign currency risk to the extent that
monetary assets and liabilities held by the Company are not
denominated in Canadian dollars. The Company has exploration
projects in the United States, Bolivia and Mongolia and undertakes
transactions in various foreign currencies. The Company is
therefore exposed to foreign currency risk arising from
transactions denominated in a foreign currency and the translation
of financial instruments denominated in US dollar, Bolivian
boliviano and Mongolian tugrik into its reporting currency, the
Canadian dollar.</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">Based
on the above, net exposures as at December 31, 2019, with other
variables unchanged, a 10% (December 31, 2018 &#x2013; 10%, December
31, 2017 &#x2013; 10%) strengthening (weakening) of the Canadian
dollar against the Mongolian tugrik would impact net loss with
other variables unchanged by $144,000. A 10% strengthening
(weakening) of the Canadian dollar against the Bolivian boliviano
would impact net loss with other variables unchanged by $70,000. A
10% strengthening (weakening) of the US dollar against the Canadian
dollar would impact net loss with other variables unchanged by
$60,000. The Company currently does not use any foreign exchange
contracts to hedge this currency risk.</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">
Commodity and Equity Price Risk</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Commodity price
risk is defined as the potential adverse impact on earnings and
economic value due to commodity price movements and volatilities.
Commodity prices fluctuate on a daily basis and are affected by
numerous factors beyond the Company&#x2019;s control. The supply and
demand for these commodities, the level of interest rates, the rate
of inflation, investment decisions by large holders of commodities
including governmental reserves and stability of exchange rates can
all cause significant fluctuations in prices. Such external
economic factors are in turn influenced by changes in international
investment patterns and monetary systems and political
developments.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is also exposed to price risk with regards to equity
prices. Equity price risk is defined as the potential adverse
impact on the Company&#x2019;s earnings due to movements in
individual equity prices or general movements in the level of the
stock market.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company closely monitors commodity prices, individual equity
movements and the stock market to determine the appropriate course
of action to be taken by the Company. Fluctuations in value may be
significant.</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">
Credit Risk</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Credit
risk is the risk that one party to a financial instrument will fail
to discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and cash equivalents and receivables. The
carrying amount of assets included on the statements of financial
position represents the maximum credit exposure.</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">103</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: 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="i12">I</a>TEM 12.&#xA0;&#xA0; DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES A.-C.</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 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: 9px">
<div style="display: table-row">
<div style="display: table-cell; width: 41px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">D.&#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">American
Depository Receipts</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 have securities registered as American Depository
Receipts.</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">104</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: 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="p3">P</a>ART II</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 266px; text-indent: 348px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</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"><a name="i13">I</a>TEM 13.&#xA0;DEFAULTS, DIVIDEND ARREARAGES AND
DELINQUENCIES</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">Not
applicable.</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="i14">I</a>TEM 14.&#xA0; MATERIAL MODIFICATIONS TO THE RIGHTS OF
SECURITY HOLDERS AND USE OF PROCEEDS</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">Not
applicable.</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="i15">I</a>TEM 15.&#xA0; CONTROLS AND PROCEDURES</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">An
evaluation was performed under the supervision and with the
participation of the Company&#x2019;s Audit Committee and
management, including the Company&#x2019;s CEO and the
Company&#x2019;s CFO, of the effectiveness of the design and
operation of the Company&#x2019;s disclosure controls and procedures
pursuant to Rules 13a-15(b) and 15d-15(b) of the U.S. Exchange Act
as of December 31, 2019. Based on their evaluation, the
Company&#x2019;s CEO and CFO have concluded that the disclosure
controls and procedures were effective to give reasonable assurance
that the information required to be disclosed by the Company in
reports that it files or submits under the U.S. Exchange Act is,
(a) recorded, processed, summarized and reported, within the time
periods specified in the SEC&#x2019;s rules and forms, and (b)
accumulated and communicated to management, including its principal
executive and principal financial officers, or persons performing
similar functions, as appropriate to allow timely decisions
regarding required disclosure.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Management&#x2019;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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s management, including the Company&#x2019;s CEO and
CFO, is responsible for establishing and maintaining adequate
internal control over the Company&#x2019;s internal control over
financial reporting, as such term is defined in Rule 13a-15(f)
under the U.S. Exchange Act. The Company&#x2019;s internal control
over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial
reporting and the preparation of consolidated financial statements
for external purposes in accordance with IFRS. The Company&#x2019;s
internal control over financial reporting includes policies and
procedures that: pertain to the maintenance of records that, in
reasonable detail accurately and fairly reflect the transactions
and disposition of assets; provide reasonable assurance that
transactions are recorded as necessary to permit preparation of the
consolidated financial statements in accordance with IFRS and that
receipts and expenditures are being made only in accordance with
authorization of management and directors of the Company; and
provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of assets
that could have a material effect on the consolidated 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Because
of their inherent limitations, internal control over financial
reporting can provide only reasonable assurance and may not prevent
or detect misstatements. Furthermore, projections of any evaluation
of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may
deteriorate.</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s management (with the participation of the CEO and
the CFO) conducted an evaluation of the effectiveness of the
Company&#x2019;s internal control over financial reporting as of
December 31, 2019. This evaluation was based on the criteria set
forth in the 2013 Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway
Commission. Based on its assessment, management has concluded that
the Company&#x2019;s internal control over financial reporting was
effective during the year ended December 31, 2019, and
management&#x2019;s assessment did not identify any material
weaknesses.</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table; margin-left: 9px">
<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">Attestation
Report of the Registered Public Accounting Firm</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">This
Annual Report does not include an attestation report of our
registered public accounting firm regarding internal control over
financial reporting. Management&#x2019;s report was not subject to
attestation by our registered public accounting firm due to: (1)
the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010, which permits the Company as a &#x201C;non-accelerated
filer&#x201D; to provide only management&#x2019;s report on internal
control over financial reporting in this Annual Report and omit an
attestation report of the issuer&#x2019;s registered public
accounting firm regarding management&#x2019;s report on internal
control over financial reporting; and (2) our qualifying as an
"emerging growth company" under section 3(a) of the Exchange Act
(as amended by the JOBS Act, enacted on April 5, 2012), providing
us an exemption from the attestation requirement</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">105</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="display: table; margin-left: 9px">
<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">Changes
in 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Based
upon their evaluation of our controls, our CEO and CFO have
concluded that there were no significant changes in our internal
control over financial reporting or in other factors during our
last fiscal year that have materially affected, or are reasonably
likely to materially affect, our 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: 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="i16">I</a>TEM 16. [RESERVED]</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">Not
applicable.</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="i16a">I</a>TEM 16A. AUDIT COMMITTEE FINANCIAL
EXPERT</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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company's Board has determined that Mr. Greg Hall, Chairman of the
Audit Committee possesses the educational and professional
qualifications as well as the experience to qualify as an
&#x201C;Audit Committee Financial Expert&#x201D; as defined in Item
407(d)(5) of Regulation S-K under the Exchange Act. Mr. Hall does
not meet the criteria for independence of an audit committee member
established under SEC Rule 10A-3. In addition, the Company believes
that the other members of the Audit Committee are capable of
analyzing and evaluating the financial statements and understanding
internal controls and procedures for financial
reporting.</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="font-weight: bold; font-family: Times New Roman; font-size: 13px"><a name="i16b">I</a>TEM 16B. 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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has adopted a Code of Ethics found at Appendix 4 of the
Company&#x2019;s Corporate Governance Policies and Procedures
Manual, that applies to all directors, senior officers and
employees of the Company including the CEO and CFO.</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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Shareholders may
request a copy of the Code of Ethics by written request directed to
Silver Elephant Mining Corp., Suite 1610, 409 Granville Street,
Vancouver, British Columbia, Canada V6C 1T2 or by reference to the
Company&#x2019;s website <font style="text-decoration: underline">www.silverelef.com</font>.</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
have been no waivers or amendments to the Code of Ethics during the
year ended December 31, 2019.</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="i16c">I</a>TEM 16C. PRINCIPAL ACCOUNTANT FEES AND
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: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
following table shows the aggregate amounts billed to the Company
by Davidson &amp; Company LLP and its affiliates, Chartered
Accountants, the Company&#x2019;s principal auditors for the three
fiscal years ended December 31, 2019 for audit fees, audit related
fees, tax fees and all other fees:</font></div>
<div style="text-align: justify; margin-left: 12px; margin-right: 8px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="margin-left: 12px;">
<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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2019 (4)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Year
Ended</font></div>
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Audit Fees
(1)</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;">100,000</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">100,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">100,000</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>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Audit-Related Fees
(2)</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><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;">52,340</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;">52,340</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Tax Fees
(3)</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;">20,000</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;">13,000</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;">13,000</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>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">All Other
Fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;border-bottom:double 4px #000000;">
<div style="text-align: justify; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; 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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">120,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">165,340</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:double 4px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">165,340</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:double 4px #000000;">&#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="text-align: left; margin-left: 36px; margin-right: 21px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; 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: 35px">
<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">&#x201C;Audit
Fees&#x201D; represent fees for the audit of the annual consolidated
financial statements, and review in connection with the statutory
and regulatory filings.</font></div>
</div>
</div>
<div style="display: table; margin-left: 35px">
<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">&#x201C;Audit
Related Fees&#x201D; represent fees for assurance and related
services that are related to the performance of the
audit.</font></div>
</div>
</div>
<div style="display: table; margin-left: 35px">
<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: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">&#x201C;Tax
Fees&#x201D; represent fees for tax compliance, tax advice and
planning.</font></div>
</div>
</div>
<div style="display: table; margin-left: 35px">
<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: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Fees for the year
ended December 31, 2019, are based, in part, upon estimates
received by the Company as final invoices are yet to be rendered as
of the date of this Annual Report.</font></div>
</div>
</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">106</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: 13px;">&#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="i16d">I</a>TEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR
AUDIT COMMITTEES</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">Not
applicable.</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="i16e">I</a>TEM 16E.&#xA0; PURCHASES OF EQUITY SECURITIES BY THE
ISSUER AND AFFILIATED PURCHASERS</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">Not
applicable.</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="i16f">I</a>TEM 16F.&#xA0; CHANGE IN REGISTRANT&#x2019;S
CERTIFYING ACCOUNTANT</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">Not
applicable.</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">ITEM
16G. CORPORATE GOVERNANCE</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">Not
applicable.</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="i16h">I</a>TEM 16H. MINE SAFETY 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: 7px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Pursuant to Section
1503(a) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, issuers that are operators, or that have a
subsidiary that is an operator, of a coal or other mine in the
United States are required to disclose in their periodic reports
filed with the SEC information regarding specified health and
safety violations, orders and citations, related assessments and
legal actions, and mining-related fatalities with respect to mining
operations and properties in the United States that are subject to
regulation by the Federal Mine Safety and Health Administration
(the &#x201C;MSHA&#x201D;) under the Federal Mine Safety and Health
Act of 1977 (the &#x201C;Mine Act&#x201D;). During the year ended
December 31, 2019, the Company had no operating mines in the United
States that were subject to regulation by the MSHA under the Mine
Act.</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">107</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: center; margin-left: 0px; margin-right: 13px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PART
III</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="i17">I</a>TEM 17. FINANCIAL STATEMENTS</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">Not
applicable.</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="i18">I</a>TEM 18. FINANCIAL
STATEMENTS&#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;&#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;&#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;&#xA0;&#xA0;<br>
</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">Document</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">Audited
Financial Statements of the Company for the years ended December
31, 2019 and 2018.</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="i19">I</a>TEM 19.&#xA0; EXHIBITS</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; margin: 0px auto 0px 0px; width: 100%; font-family: inherit; font-size: inherit;">
<tr>
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline; background-color: #FFFFFF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Exhibit Number</font></font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px"><font style="text-decoration: underline; background-color: #FFFFFF; font-weight: bold; font-family: Times New Roman; font-size: 13px">
Description</font></font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%; vertical-align: top;">
<div><font style="font-family: Times New Roman; font-size: 13px">1.1*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Articles of
Incorporation (incorporated by reference from our Registration
Statement on Form 20-F filed with the SEC on June 27, 2018 (SEC
File No.: 377- 02144) and Amendment to Articles dated March 16,
2020 under (SEC File No. 000-55985- Film No.
20718657))</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><a href="silef_ex21.htm"><font style="font-family: Times New Roman; font-size: 13px">2.1</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Description of
Registered Securities</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.1*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Debt Settlement
Agreement dated January 13, 2017 among Silver Elephant Mining
Corp., Linx and John Lee (incorporated by reference from our
Registration Statement on Form 20- F filed with the SEC on June 27,
2018 (SEC File No.: 377-02144))</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.2*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Mineral Lease
Agreement dated June 22, 2017 between Silver Elephant Mining Corp.
and Janelle Dietrich (incorporated by reference from our
Registration Statement on Form 20-F filed with the SEC on June 27,
2018 (SEC File No.: 377-02144))</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%; vertical-align: top;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.3*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Mineral Lease
Agreement dated July 10, 2017 among Silver Elephant Mining Corp.,
Richard A. McKay, Nancy M. Minoletti and Pamela S. Scutt
(incorporated by reference from our Registration Statement on Form
20-F filed with the SEC on June 27, 2018 (SEC File No.:
377-02144))</font></div>
</td>
</tr><tr>
<td style="width: 15%; vertical-align: top;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.4*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Share Purchase
Agreement dated February 7, 2018 among Silver Elephant Mining
Corp., Medalist Capital Ltd. and 631208 B.C. Ltd. (incorporated by
reference from our Registration Statement on Form 20-F filed with
the SEC on June 27, 2018 (SEC File No.: 377-02144))</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%; vertical-align: top;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.5*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Amendment to the
Mineral Lease Agreement dated April 19, 2018 between Silver
Elephant Mining Corp. and Janelle Dietrich (incorporated by
reference from our Annual Report on Form 20-F filed with the SEC on
March 29, 2019 (SEC File No.: 000-55985))</font></div>
</td>
</tr><tr>
<td style="width: 15%; vertical-align: top;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.6*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Share-Based
Compensation Plan (incorporated by reference from our Registration
Statement on Form 20-F filed with the SEC on June 27, 2018 (SEC
File No.: 377-02144))</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">4.7*</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">English Summary of
Pulacayo Joint Venture Agreement (incorporated by reference from
our Annual Report on Form 20-F filed with the SEC on March 29, 2019
(SEC File No.: 000-55985))</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><a href="silef_ex81.htm"><font style="font-family: Times New Roman; font-size: 13px">8.1</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">List of
Subsidiaries</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><a href="silef_ex121.htm"><font style="font-family: Times New Roman; font-size: 13px">12.1</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Certification of
Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><a href="silef_ex122.htm"><font style="font-family: Times New Roman; font-size: 13px">12.
2</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Certification of
Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><a href="silef_ex131.htm"><font style="font-family: Times New Roman; font-size: 13px">13.1</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Certification of
Chief Executive Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><a href="silef_ex132.htm"><font style="font-family: Times New Roman; font-size: 13px">13.2</font></a></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">Certification of
Chief Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">101.INS</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">XBRL Instance
Document</font></div>
</td>
</tr><tr>
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">101.
SCH</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">XBRL Taxonomy
Extension Schema Document</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="width: 15%;">
<div><font style="font-family: Times New Roman; font-size: 13px">101.CAL</font></div>
</td>
<td style="width: 85%;">
<div><font style="font-family: Times New Roman; font-size: 13px">XBRL Taxonomy
Extension Calculation Linkbase Document 101.DEF XBRL Taxonomy
Extension Definition Linkbase Document 101.LAB XBRL Taxonomy
Extension Label Linkbase Document 101.PRE XBRL Taxonomy Extension
Presentation Linkbase Document</font></div>
</td>
</tr></table>
</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">*
<font style="color: #000000; background-color: #FFFFFF">Incorporated by
reference from the Company&#x2019;s SEC filings.</font></font></div>
<div><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">108</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: center; margin-left: 0px; margin-right: 13px; 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: 4px; 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 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>
<div>
<table cellpadding="0" cellspacing="0" style="font-family: inherit; font-size: inherit; margin-right:0px;width:100%;margin-left:0px;">
<tr>
<td rowspan="1" style="width: 50%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 38%;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SILVER
ELEPHANT MINING CORP.</font></td>
<td rowspan="1" style="width: 12%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="width: 50%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 3%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 35%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 12%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 50%; border-bottom: medium solid rgb(255, 255, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Date: <font style="font-family: Times New Roman; font-size: 13px">March 30 ,
2020</font></font></div>
</td>
<td style="vertical-align: top; width: 3%; border-bottom: medium solid rgb(255, 255, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">By:&#xA0;&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 35%; border-bottom: 2px solid black; white-space: nowrap;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">/s/</font>
<font style="font-family: Times New Roman; font-size: 13px">Michael
Doolin</font></div>
</td>
<td style="vertical-align: top; width: 12%; border-bottom: medium solid rgb(255, 255, 255);">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="width: 50%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 3%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 35%; white-space: nowrap;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-family: Times New Roman; font-size: 13px">Michael
Doolin</font> &#xA0;</font></div>
</td>
<td style="width: 12%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="width: 50%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 3%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 35%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman"><font style="font-family: Times New Roman; font-size: 13px">Chief Executive
Officer and Chief Operating officer</font></font></div>
</td>
<td style="width: 12%; vertical-align: top;">
<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-size: 13px; font-family: Times New Roman">&#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 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">109</font></div>
</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 24px">SILVER
ELEPHANT MINING CORP.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Formerly
Prophecy Development Corp.)</font></div>
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Annual <a name="_Toc310341672">
<!--anchor--></a>Consolidated Financial Statements</font></div>
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For the years ended December 31, 2019, 2018 and 2017</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">(Expressed
in Canadian Dollars)</font></div>
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TABLE OF CONTENTS</font></div>
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<td colspan="2" style="vertical-align: bottom; width: 92%;">
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MANAGEMENT&#x2019;S RESPONSIBILITY FOR FINANCIAL
REPORTING</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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3</font></div>
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</tr><tr>
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Report of Independent Registered Public Accounting
Firm</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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4</font></div>
</td>
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<td colspan="2" style="vertical-align: bottom; width: 92%;">
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Financial Position</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
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6</font></div>
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<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Operations and Comprehensive Gain
(Loss)</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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7</font></div>
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Consolidated Statements of Changes in Equity</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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8</font></div>
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Consolidated Statements of Cash Flows</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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9</font></div>
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1</font></div>
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DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS</font></div>
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10</font></div>
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2</font></div>
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BASIS OF PRESENTATION</font></div>
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10</font></div>
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3</font></div>
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BASIS OF CONSOLIDATION</font></div>
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11</font></div>
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<td style="vertical-align: bottom; width: 2%">
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4</font></div>
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CHANGES IN ACCOUNTING POLICIES</font></div>
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11</font></div>
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5</font></div>
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SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS</font></div>
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12</font></div>
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<td style="vertical-align: bottom; width: 2%">
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6</font></div>
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></div>
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15</font></div>
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<td style="vertical-align: bottom; width: 2%">
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7</font></div>
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SEGMENTED INFORMATION</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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20</font></div>
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<td style="vertical-align: bottom; width: 2%">
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8</font></div>
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CASH AND CASH EQUIVALENTS</font></div>
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20</font></div>
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<td style="vertical-align: bottom; width: 2%">
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9</font></div>
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RECEIVABLES</font></div>
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21</font></div>
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<td style="vertical-align: bottom; width: 2%">
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10</font></div>
</td>
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PREPAID EXPENSES</font></div>
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21</font></div>
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<td style="vertical-align: bottom; width: 2%">
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11</font></div>
</td>
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MARKETABLE SECURITIES</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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21</font></div>
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<td style="vertical-align: bottom; width: 2%">
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12</font></div>
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<td style="vertical-align: bottom; width: 90%;">
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RIGHT-OF-USE ASSET</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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22</font></div>
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<td style="vertical-align: bottom; width: 2%">
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13</font></div>
</td>
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EQUIPMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
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22</font></div>
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<td style="vertical-align: bottom; width: 2%">
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14</font></div>
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MINERAL PROPERTIES</font></div>
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24</font></div>
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15</font></div>
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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES</font></div>
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<td style="vertical-align: bottom; width: 8%;">
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28</font></div>
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16</font></div>
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LEASE LIABILITY</font></div>
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29</font></div>
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17</font></div>
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PROVISION FOR CLOSURE AND RECLAMATION</font></div>
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29</font></div>
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18</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
TAX PROVISION</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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: 2%">
<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">
19</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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: 8%;">
<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">
31</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 2%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
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20</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
CAPITAL RISK MANAGEMENT</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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">
38</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 2%">
<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">
21</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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">
38</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 2%">
<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">
22</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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 RISK MANAGEMENT DISCLOSURES</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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">
39</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 2%">
<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">
23</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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 DISCLOSURES</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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 style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 2%">
<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">
24</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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 MANAGEMENT PERSONNEL COMPENSATION</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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: 2%">
<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">
25</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
SUPPLEMENTAL CASH FLOW INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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: 2%">
<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">
26</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
COMMITMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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: 2%">
<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">
27</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
CONTINGENCIES</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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: 2%">
<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">
28</font></div>
</td>
<td style="vertical-align: bottom; width: 90%;">
<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">
EVENTS AFTER THE REPORTING DATE</font></div>
</td>
<td style="vertical-align: bottom; width: 8%;">
<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></table>
</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-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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">2</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: 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">
MANAGEMENT&#x2019;S RESPONSIBILITY FOR FINANCIAL
REPORTING</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"><font style="color: #000000">
The annual audited consolidated financial statements (the
&#x201C;</font><font style="font-weight: bold; color: #000000">Annual Financial
Statements</font><font style="color: #000000">&#x201D;), the notes
thereto, and other financial information contained in the
accompanying Management&#x2019;s Discussion and Analysis
(&#x201C;</font><font style="font-weight: bold; color: #000000">MD&amp;A</font><font style="color: #000000">&#x201D;) have been prepared in accordance with
International Financial Reporting Standards as issued by the
International Accounting Standards Board and are the responsibility
of the management of Silver Elephant Mining Corp. The financial
information presented elsewhere in the MD&amp;A is consistent with
the data that is contained in the Annual Financial Statements. The
Annual Financial Statements, where necessary, include amounts which
are based on the best estimates and judgment of
management.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
In order to discharge management&#x2019;s responsibility for the
integrity of the Annual Financial Statements, the Company maintains
a system of internal accounting controls. These controls are
designed to provide reasonable assurance that the Company&#x2019;s
assets are safeguarded, transactions are executed and recorded in
accordance with management&#x2019;s authorization, proper records
are maintained, and relevant and reliable financial information is
produced. These controls include maintaining quality standards in
hiring and training of employees, policies and procedures manuals,
a corporate code of conduct and ethics and ensuring that there is
proper accountability for performance within appropriate and
well-defined areas of responsibility. The system of internal
controls is further supported by a compliance function, which is
designed to ensure that we and our employees comply with securities
legislation and conflict of interest rules.</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"><font style="color: #000000">
The Board of Directors is responsible for overseeing
management&#x2019;s performance of its responsibilities for
financial reporting and internal control. The Audit Committee,
which is composed of non-executive directors, meets with management
as well as the external auditors to ensure that management is
properly fulfilling its financial reporting responsibilities to the
Board who approve the Annual Financial Statements. The external
auditors have full and unrestricted access to the Audit Committee
to discuss the scope of their audits and the adequacy of the system
of internal controls</font><font style="color: #000000; font-family: Times New Roman">,</font>
<font style="color: #000000">and to review financial reporting
issues</font><font style="color: #000000; font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
external auditors, Davidson &amp; Company LLP, have been appointed
by the Company&#x2019;s shareholders to render their opinion on the
Annual Financial Statements and their report is included
herein.</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">&#xA0;</font></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: 25%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
&#x201C;Michael Doolin&#x201D;</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#x201C;<font style="font-style: italic">Irina
Plavutska</font>&#x201D;</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 25%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Michael
Doolin, Chief Executive Officer</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Irina
Plavutska, Chief Financial Officer</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 25%;">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Vancouver,
British Columbia</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 25%;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="width: 25%;">
<div><font>&#xA0;</font></div>
</td>
</tr></table>
</div>
<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>
<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">March
30, 2020</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<div id="ftr">
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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">3</font></div>
</div>
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<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">&#xA0;
<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">
<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">
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</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;<br>
</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">To the
Shareholders and Directors of</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">Silver
Elephant Mining Corp. (formerly Prophecy Development
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;<br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Opinion on the Consolidated 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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">We have
audited the accompanying consolidated statements of financial
position of Silver Elephant Mining Corp. (formerly Prophecy
Development Corp.) (the &#x201C;Company&#x201D;), as of December 31,
2019, 2018 and 2017 and the related consolidated statements of
operations and comprehensive gain (loss), changes in equity
(deficiency), and cash flows for the years ended December 31, 2019,
2018, and 2017, and the related notes (collectively referred to as
the &#x201C;financial statements&#x201D;). In our opinion, the
consolidated financial statements present fairly, in all material
respects, the financial position of Silver Elephant Mining Corp.
(formerly Prophecy Development Corp.) as of December 31, 2019 and
2018, and the results of its operations and its cash flows for the
years ended December 31, 2019, 2018, and 2017 in conformity with
International Financial Reporting Standards as issued by the
International Accounting Standards Board.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Going Concern</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">The
accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. As
discussed in Note 1 to the consolidated financial statements, the
Company has suffered recurring losses from operations that raise
substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in
Note 1. The consolidated financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.</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; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Basis for Opinion</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">These
consolidated financial statements are the responsibility of the
Company&#x2019;s management. Our responsibility is to express an
opinion on the Company&#x2019;s consolidated financial statements
based on our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States)
(&#x201C;PCAOB&#x201D;) and are required to be independent with
respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.</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">We
conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due
to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an
understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of
the Company&#x2019;s internal control over financial reporting.
Accordingly, we express no such opinion.</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">4</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: 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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Our
audits included performing procedures to assess the risks of
material misstatements of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audits
provide a reasonable basis for our opinion.</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">We have
served as the Company&#x2019;s auditor since 2013.</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">&#xA0;</font></div>
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#x201C;DAVIDSON &amp; COMPANY LLP&#x201D;</font></div>
<div style="text-align: right; 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">
<table cellpadding="0" cellspacing="0" style="text-align: left; margin: 0 auto;width: 100%;; font-family: inherit; font-size: inherit">
<tr>
<td style="width: 50%">
<div><font style="font-family: Times New Roman; font-size: 13px">Vancouver,
Canada&#xA0;<br></font></div>
</td>
<td style="width: 50%">
<div style="text-align: right"><font>&#xA0;</font><font style="font-family: Times New Roman; font-size: 13px">Chartered
Professional Accountants</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<br>
</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">March
30, 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="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 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; 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-weight: bold; font-family: Times New Roman; font-size: 13px">
SILVER ELEPHANT MINING 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">(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Financial Position</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">(Expressed
in Canadian Dollars)</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: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">As at</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Notes</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Assets</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Current
assets</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Cash and cash
equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">8</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">3,017,704</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,304,097</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,100,608</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Receivables</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">9</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">246,671</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;">36,399</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;">34,653</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Prepaid
expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">10</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">135,767</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;">123,272</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;">140,610</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Marketable
securities</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">11</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">205,600</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;">
<div style="margin-left:0px;"><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: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">3,400,142</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;">5,463,768</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;">4,481,471</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;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Non-current
assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Restricted cash
equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">8</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">34,500</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;">34,500</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;">34,500</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Reclamation
deposits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">21,055</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;">21,055</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;">21,055</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Right-of-use
asset</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">12</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">50,023</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;">-</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;">-</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">13</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">159,484</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;">101,162</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;">531,911</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Mineral
properties</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">14</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">23,782,884</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">3,643,720</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">13,299,906</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">&#xA0;</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">27,448,088</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,264,205</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,368,843</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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-weight: bold; font-family: Times New Roman; font-size: 13px">Liabilities
and Equity (Deficiency)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Current
liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accounts payable
and accrued liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">15</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">2,420,392</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,636,786</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,895,983</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lease
liability</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">16</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">32,285</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;">
<div style="margin-left:0px;"><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: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">2,452,677</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;">1,636,786</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;">1,895,983</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;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Non-current
liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lease
liability</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">16</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">20,533</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;">-</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;">-</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Provision for
closure and reclamation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">17</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">266,790</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;">265,239</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;">244,323</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Tax
provision</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">18</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">8,121,918</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">7,541,016</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">&#xA0;</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">2,740,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">10,023,943</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">9,681,322</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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-weight: bold; font-family: Times New Roman; font-size: 13px">Equity
(Deficiency)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share
capital</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">19</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">181,129,012</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;">173,819,546</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;">165,862,805</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Reserves</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">24,058,336</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;">23,413,830</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;">22,621,202</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accumulated other
comprehensive income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">-</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;">-</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;">12,160</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Deficit</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">&#xA0;</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(180,479,260</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(197,993,114</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(179,808,646</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><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;">&#xA0;</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">24,708,088</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(759,738</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">8,687,521</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div><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;">&#xA0;</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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">27,448,088</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,264,205</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,368,843</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="null"><font>&#xA0;</font></div>
<div>
<table cellpadding="0" cellspacing="0" style="width: 100%; font-family: Times New Roman; font-size: 13px">
<tr style="background-color: #ffffff">
<td colspan="6" style="vertical-align: bottom; width: 82%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Approved
on behalf of the Board:</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: bottom; width: 41%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
"John Lee"</font></div>
</td>
<td style="vertical-align: bottom; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%; border-bottom: 2px solid #000000">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
"Greg Hall"</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%; border-bottom: 2px solid #000000">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: bottom; width: 41%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">John
Lee, Director</font></div>
</td>
<td style="vertical-align: bottom; width: 6%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Greg
Hall, Director</font></div>
</td>
<td style="vertical-align: bottom; width: 2%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 16%">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <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">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Commitments</font> (Note 26)</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"><font style="font-weight: bold">
Contingencies</font> (Note 27)</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"><font style="font-weight: bold">
Events after the reporting date</font> (Note 28)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><br>
</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">The
accompanying notes form an integral part of these consolidated
financial statements.</font></div>
<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>
<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">6</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-weight: bold; font-family: Times New Roman; font-size: 13px">
SILVER ELEPHANT MINING 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">(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Operations and Comprehensive Gain
(Loss)</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">(Expressed
in Canadian Dollars)</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:52%;">
<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:12%;">
<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; padding-bottom: 2px;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 10%; display: inline-block; padding-bottom: 2px;">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 36%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Years
Ended December 31,</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Notes</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">General
and Administrative Expenses</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Advertising and
promotion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;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;">794,182</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">471,230</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">101,512</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Consulting and
management fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">23</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">251,552</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;">255,610</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;">751,612</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Depreciation and
accretion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">65,157</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;">28,024</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;">8,823</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Director
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">23</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">103,805</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;">70,378</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;">60,600</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Insurance</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">93,661</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;">55,546</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;">52,566</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Office and
administration</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">123,904</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;">137,289</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;">89,808</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Professional
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">228,594</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;">428,884</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;">194,912</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Salaries and
benefits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">23</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">760,182</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;">827,168</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>
<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;">260,710</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">19</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">707,802</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;">553,430</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;">599,117</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:#ffffff;">
<td colspan="2" style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 24px">
<font style="font-family: Times New Roman; font-size: 13px">Stock
exchange and shareholder services</font></div>
</font><font style="text-align: left; vertical-align:bottom;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;">139,908</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;">239,319</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: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;">163,229</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Travel and
accommodation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">236,815</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">231,505</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">98,476</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(3,505,562</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(3,298,383</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(2,381,365</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</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-weight: bold; font-family: Times New Roman; font-size: 13px">Other
Items</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Costs in excess of
recovered coal</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;">&#xA0;</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;">(120,354</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: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;">(94,335</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: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;">(109,187</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Finance
cost</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;">&#xA0;</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;">-</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;">-</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;">(8,111</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Foreign exchange
gain/(loss)</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;">&#xA0;</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;">(443,203</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: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;">(412,663</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: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;">(188,464</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">(Impairment)/recovery
of mineral property</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">14</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">13,708,200</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;">(13,994,970</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: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;">(14,829,267</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
prepaid expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">10</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">(51,828</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: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;">(26,234</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: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;">(57,420</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">13</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">-</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;">(425,925</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: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;">(159,666</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
receivables</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">9</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">(16,304</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: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;">(21,004</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: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;">(61,202</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">-</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;">-</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;">(21,066</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on sale of
marketable securities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font> <font style="font-size: 13px; font-family: Times New Roman;">&#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;">-</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;">(91,890</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: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;">(22,810</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on sale of
equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">13</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">(9,795</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: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><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;">(1,681</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">(Loss)/gain on debt
settlement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman;">27, 23</font><font style="font-size: 13px; font-family: Times New Roman;">&#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;">7,952,700</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;">50,000</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;">(752,742</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Other
income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">130,936</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">21,019,416</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(14,886,085</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(16,211,616</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Net
Gain/(Loss) for Year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">17,513,854</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(18,184,468</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(18,592,981</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</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:0px;"><font style="font-family: Times New Roman; font-size: 13px">Fair value loss on
marketable securities</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;">&#xA0;</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;">-</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;">(81,000</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: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;">12,160</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:64%;">
<div style="margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Reclassification
adjustment for realized loss</font></div>
</font><font style="text-align: left; vertical-align:bottom;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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;marketable
securities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">68,840</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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-weight: bold; font-family: Times New Roman; font-size: 13px">Comprehensive
Gain/(Loss) for Year</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;">&#xA0;</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">17,513,854</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,196,628</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: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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,580,821</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Gain/(Loss) Per Common Share,</font>
basic</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.17</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.23</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.33</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: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">&#xA0;&#xA0;diluted</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;">&#xA0;</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.17</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.23</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: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;">(0.33</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Weighted
Average Number of Common Shares Outstanding,</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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: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">&#xA0;&#xA0;basic</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;">&#xA0;</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;">102,208,111</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;">78,445,396</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;">55,760,700</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;diluted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">102,398,145</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">78,443,396</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">55,760,700</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<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>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
accompanying notes form an integral part of these consolidated
financial statements.</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 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="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-weight: bold; font-family: Times New Roman; font-size: 13px">
SILVER ELEPHANT MINING 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">(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Changes in Equity
(Deficiency)</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">(Expressed
in Canadian Dollars)</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:40%;border-bottom:solid 2px #000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Number of
Shares</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Share
Capital</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Reserves</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Accumulated
OtherComprehensive Income (Loss)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Deficit</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Total
Equity(Deficiency)</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Balance</font>, December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">48,076,530</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">156,529,025</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">21,482,133</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(161,215,665</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">16,795,493</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Private placements,
net of share issue costs</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;">20,775,060</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;">6,527,619</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;">337,190</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;">-</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;">-</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;">6,864,809</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued on
acquisition of property</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;">200,000</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: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;">96,200</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;">-</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;">-</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;">-</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;">96,200</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Debt
Settlements</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;">4,019,130</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;">2,039,269</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;">-</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;">-</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;">-</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;">2,039,269</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share bonus to
personnel</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;">390,000</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: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;">190,320</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;">-</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;">-</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;">-</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;">190,320</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share compensation
for services</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;">984,200</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;">344,470</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;">-</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;">-</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;">-</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;">344,470</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of stock
options</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;">126,870</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;">65,252</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;">(14,567</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">50,685</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of
warrants</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;">150,000</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: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;">70,650</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;">(10,650</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">60,000</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:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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;">-</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;">-</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;">827,096</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;">-</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;">-</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;">827,096</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss for the
year</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;">-</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;">-</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;">-</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;">-</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;">(18,592,981</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,592,981</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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Unrealized gain on
marketable securities</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">12,160</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">12,160</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Balance</font>, December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">74,721,790</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">165,862,805</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">22,621,202</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,160</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(179,808,646</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">8,687,521</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Private placements,
net of share issue costs</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;">16,061,417</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;">6,096,621</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;">-</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;">-</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;">-</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;">6,096,621</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Warrants issued for
mineral property</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;">-</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;">-</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;">181,944</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;">-</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;">-</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;">181,944</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of stock
options</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;">87,500</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;">39,500</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;">(15,350</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">24,150</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of
warrants</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;">3,445,420</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;">1,470,620</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;">(132,453</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">1,338,167</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Bonus
shares</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;">1,000,000</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: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;">350,000</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: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;">-</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;">-</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;">-</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;">350,000</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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;">-</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;">-</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;">758,487</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;">-</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;">-</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;">758,487</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss for the
year</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;">-</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;">-</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;">-</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;">-</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;">(18,184,468</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,184,468</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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Unrealized loss on
marketable securities</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(12,160</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(12,160</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Balance</font>, December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">95,316,127</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">173,819,546</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">23,413,830</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(197,993,114</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(759,738</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Private placements,
net of share issue costs</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;">22,750,000</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: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;">6,117,991</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;">-</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;">-</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;">-</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;">6,117,991</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Finders
shares</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;">1,179,500</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;">366,800</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;">-</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;">-</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;">-</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;">366,800</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Debt
Settlements</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;">104,951</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;">43,030</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;">-</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;">-</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;">-</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;">43,030</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of stock
options</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;">622,500</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;">328,095</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;">(153,845</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">174,250</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Exercise of
warrants</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;">651,430</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;">279,050</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;">(28,478</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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">-</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;">250,572</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>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Bonus
shares</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;">500,000</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: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;">115,000</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: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;">-</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;">-</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;">-</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;">115,000</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share compensation
for services</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;">175,000</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: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;">59,500</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;">-</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;">-</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;">-</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;">59,500</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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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;">-</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;">-</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;">826,829</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;">-</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;">-</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;">826,829</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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Gain for the
year</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">17,513,854</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">17,513,854</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Balance</font>, December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">121,299,508</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">181,129,012</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,058,336</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(180,479,260</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,708,088</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</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; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
accompanying notes form an integral part of these consolidated
financial statements.</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 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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
SILVER ELEPHANT MINING 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">(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Consolidated Statements of Cash Flows</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">(Expressed
in Canadian Dollars)</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="4" rowspan="1" style="vertical-align:bottom;width:100%;">
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">Years
Ended December 31,</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" style="vertical-align:bottom;width:24%;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;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%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Operating
Activities</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net gain/(loss) for
period</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;">17,513,854</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,184,468</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(18,592,981</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Adjustments to
reconcile net loss to net cash flows:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Depreciation and
accretion</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;">65,157</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;">28,024</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;">8,823</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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;">707,802</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;">553,430</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;">599,117</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Finance
cost</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><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;">-</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;">8,111</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest
costs</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><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;">-</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;">21,066</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Unrealized foreign
exchange (gain)/loss</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;">(169,218</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: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;">580,902</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;">480,325</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share compensation
for 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;">356,003</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;">350,000</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;">344,470</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment/(recovery)
of mineral property</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;">(13,708,200</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: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;">13,994,970</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;">14,829,267</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
prepaid expenses</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;">51,828</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;">26,234</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;">57,420</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
equipment</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><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;">425,925</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;">159,666</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Impairment of
receivables</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;">16,304</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;">21,004</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;">61,202</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss/(gain) on sale
of marketable securities</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><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;">91,890</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;">22,810</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss on sale of
equipment</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;">9,795</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;">-</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;">1,681</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Debt settlement
gain</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(7,952,700</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">752,742</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(3,109,375</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(2,112,089</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(1,246,281</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Working capital
adjustments</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Receivables</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;">(196,079</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: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;">(22,750</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: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;">(4,290</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Prepaid expenses
and reclamation deposits</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;">(29,323</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: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;">(8,896</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: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;">2,496</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accounts payable
and accrued liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">659,264</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(482,952</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">540,844</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">433,862</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(514,598</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">539,050</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Cash
Used in Operating Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(2,675,513</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(2,626,687</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(707,231</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Investing
Activities</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Purchase of
GIC</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><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;">-</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;">(34,500</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net
(purchases)/proceeds from marketable securities</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><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;">101,550</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: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;">(40,250</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Purchase of
property and equipment</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;">(113,564</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: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;">(120,416</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: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;">(515,609</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Mineral property
acquisition and expenditures</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(6,123,401</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(3,609,896</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(1,398,207</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Cash
Used in Investing Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(6,236,965</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(3,628,762</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(1,988,566</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Financing
Activities</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Funds borrowed
under credit facility</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><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;">-</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;">163,405</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Credit facilities
paid</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><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;">-</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;">(343,076</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest
paid</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><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;">-</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;">(21,066</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lease
payments</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;">(36,528</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: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><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;">-</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Proceeds from share
issuance, net of share issue costs</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;">6,237,791</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;">6,096,621</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;">6,864,809</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:64%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Proceeds from
exercise of optons</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;">174,250</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;">24,150</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;">50,685</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Proceeds from
exercise of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">250,572</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">1,338,167</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">60,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Cash
Provided by Financing Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">6,626,085</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">7,458,938</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">6,774,757</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</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:0px;"><font style="font-family: Times New Roman; font-size: 13px">Net Decrease in
Cash and Cash equivalents</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;">(2,286,393</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: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;">1,203,489</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;">4,078,960</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Cash and cash
equivalents- beginning of year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">5,304,097</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">4,100,608</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">21,648</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Cash and cash
equivalents - end of year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,304,097</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,100,608</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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"><font style="font-weight: bold">
Supplemental cash flow information</font> (Note 25)</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></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">The
accompanying notes form an integral part of these consolidated
financial statements.</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 id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">9</font></div>
</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">DESCRIPTION
OF BUSINESS AND NATURE OF OPERATIONS</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">Silver
Elephant Mining Corp. (formerly Prophecy Development Corp.) (the
&#x201C;<font style="font-weight: bold">Company</font>&#x201D;) is
incorporated under the laws of the province of British Columbia,
Canada. <font style="color: #000000">The Company&#x2019;s common
shares (the &#x201C;</font><font style="font-weight: bold; color: #000000">Shares</font><font style="color: #000000">&#x201D;) are listed for trading on the Toronto
Stock Exchange (the &#x201C;</font><font style="font-weight: bold; color: #000000">TSX</font><font style="color: #000000">&#x201D;) under the symbol
&#x201C;ELEF&#x201D;,</font> the OTCQX&#xAE; Best Market under the
symbol &#x201C;SILEF&#x201D;<font style="font-family: Times New Roman">,</font> <font style="color: #000000">and</font> the Frankfurt Stock Exchange under the
symbol &#x201C;1P2N&#x201D;<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is an exploration stage company<font style="font-family: Times New Roman">.</font> <font style="font-family: Times New Roman">The Company</font> <font style="font-family: Times New Roman">holds a mining joint venture
interest in the Pulacayo Paca silver-lead-zinc property located in
Bolivia.</font> The Company also has a 100% interest in two
vanadium projects in North America including the Gibellini vanadium
project which is comprised of the Gibellini and Louie Hill vanadium
deposits and associated claims located in the State of Nevada, USA
and the Titan vanadium-titanium-iron property located in the
Province of Ontario, Canada. <font style="font-family: Times New Roman">The Company also has a 100% interest
in the Ulaan Ovoo coal property located in Selenge province,
Mongolia and a 100% interest in the Chandgana Tal coal property and
Khavtgai Uul coal property located in Khentii province,
Mongolia.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company maintains its registered and records office at Suite 1610
&#x2013; 409 Granville Street, Vancouver, British Columbia, Canada,
V6C 1T2.</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-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">These consolidated audited annual
financial statements have been prepared under the assumption that
the Company is a going concern</font>, which contemplates the
realization of assets and the payment of liabilities in the
ordinary course of business. The Company has a deficit of $180
million.</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-family: Times New Roman; font-size: 13px">The
business of mineral exploration involves a high degree of risk and
there can be no assurance that the Company&#x2019;s current
operations, including exploration programs, will result in
profitable mining operations. The recoverability of the carrying
value of mineral properties, and property and equipment interests
and the Company&#x2019;s continued on going existence is dependent
upon the preservation of its interest in the underlying properties,
the discovery of economically recoverable reserves, the achievement
of profitable operations, the ability of the Company to raise
additional sources of funding, and/or, alternatively, upon the
Company&#x2019;s ability to dispose of some or all of its interests
on an advantageous basis. Additionally, the current capital markets
and general economic conditions are significant obstacles to
raising the required funds. These conditions may cast significant
doubt upon the Company&#x2019;s ability to continue as a going
concern.</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-family: Times New Roman; font-size: 13px">In
assessing whether the going concern assumption is appropriate,
management takes into account all available information about the
future, which is at least, but not limited to, twelve months from
the end of the reporting period. Management is aware, in making its
assessment, of uncertainties related to events or conditions that
may cast significant doubt upon the entity&#x2019;s ability to
continue as a going concern that these uncertainties are material
and, therefore, that it may be unable to realize its assets and
discharge its liabilities in the normal course of business.
Accordingly, they do not give effect to adjustments that would be
necessary should the Company be unable to continue as a going
concern and therefore to realize its assets and discharge its
liabilities and commitments in other than the normal course of
business and at amounts different from those in the accompanying
financial statements. These adjustments could be
material.</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">BASIS
OF PRESENTATION</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">These
Annual Financial Statements have been prepared in accordance with
International Financial Reporting Standards, (&#x201C;<font style="font-weight: bold">IFRS</font>&#x201D;) as issued by the
International Accounting Standards Board (&#x201C;<font style="font-weight: bold">IASB</font>&#x201D;).</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">The
preparation of financial statements in compliance with IFRS
requires the use of certain critical accounting estimates. It also
requires the Company&#x2019;s management to exercise judgment in
applying the Company&#x2019;s accounting policies. The areas where
significant judgments and estimates have been made in preparing
these Annual Financial Statements and their effect are disclosed in
Note 5.</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">These
Annual Financial Statements have been prepared on a historical cost
basis, except for financial instruments classified as marketable
securities and fair value through profit or loss
(&#x201C;<font style="font-weight: bold">FVTPL</font>&#x201D;), which
are stated at their fair values. These Annual Financial Statements
have been prepared using the accrual basis of accounting except for
cash flow information. These Annual Financial Statements are
presented in Canadian Dollars, except where otherwise
noted.</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;<br>
</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 id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">2.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">BASIS OF PRESENTATION</font>
(cont&#x2019;d&#x2026;)</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;<br>
</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
accounting policies set out in Note 6 have been applied
consistently by the Company and its subsidiaries to all periods
presented. Certain prior year amounts have been reclassified to
conform to the current year presentation.</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">The
Annual Consolidated Financial Statements were reviewed by the Audit
Committee and approved and authorized for issue by the Board of
Directors on March 24, 2019<font style="font-family: Times New Roman">.</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">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">BASIS
OF CONSOLIDATION</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"><font style="color: #000000">
The Annual Financial Statements comprise the financial statements
of the Company and its wholly owned and partially owned
subsidiaries as at December 31, 2019. Subsidiaries are consolidated
from the date of acquisition, being the date on which the Company
obtains control, and continue to be consolidated until the date
when such control ceases. Effects of transactions between related
companies are eliminated on consolidation. The financial statements
of the subsidiaries are prepared for the same reporting period as
the parent company</font><font style="color: #000000; font-family: Times New Roman">.</font>
<font style="color: #000000">Accounting policies of the
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the
Company.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company&#x2019;s significant subsidiaries at December 31, 2019 are
presented in the following table:</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: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="img001.jpg"></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><br>
</div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CHANGES
IN ACCOUNTING POLICIES</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"><font style="color: #000000; font-family: Times New Roman">
</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000; font-family: Times New Roman">
Effective January 1, 2019,</font> the Company, for the first time,
has applied IFRS 16 <font style="font-style: italic">Leases</font>
(as issued by the IASB in January 2016) effective January 1, 2019,
using the modified retrospective approach. The modified
retrospective approach does not require restatement of prior period
financial information and continues to be reported under IAS 17,
<font style="font-style: italic">Leases</font> and IFRIC 4,
<font style="font-style: italic">Determining Whether an Arrangement
Contains a Lease</font>. IFRS 16 introduces new or amended
requirements with respect to lease accounting. It introduces
changes to the lessee accounting by removing the distinction
between operating and finance leases and requiring the recognition
of a right-of-use asset and a lease liability at the lease
commencement for all leases, except for short-term leases and
leases of low value assets. In contrast to lessee accounting, the
requirements for lessor accounting have remained largely
unchanged.</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">The
Company&#x2019;s leases consist of corporate office lease
arrangements. The Company, on adoption of IFRS 16, recognized lease
liabilities in relation to office leases which had previously been
classified as operating leases under the principles of IAS 17. In
relation, under the principles of the new standard these leases are
measured as lease liabilities at the present value of the remaining
lease payments, discounted using the Company&#x2019;s incremental
borrowing rate as at January 1, 2019. The associated right-of-use
asset has been measured at the amount equal to the lease liability
on January 1, 2019. The right-of-use asset is subsequently
depreciated from the commencement date to the earlier of the end of
the lease term, or the end of the useful life of the asset (refer
to Note 12 and Note 16).</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">Furthermore,
the right-of-use asset may be reduced due to impairment
losses<font style="font-family: Times New Roman">.</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 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">11</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">4.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">CHANGES IN ACCOUNTING POLICIES</font>
(cont&#x2019;d&#x2026;)</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">The
following table reconciles the Company&#x2019;s operating lease
commitments at December 31, 2018, as previously disclosed in the
Company&#x2019;s Annual Financial Statements, to the lease liability
recognized on adoption of IFRS 16 at January 1, 2019:</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: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="img002.jpg"></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;<br>
</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SIGNIFICANT
JUDGMENTS, ESTIMATES AND ASSUMPTIONS</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">The
preparation of a company&#x2019;s financial statements in conformity
with IFRS requires management to make judgments, estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Estimates and
assumptions are continually evaluated and are based on
management&#x2019;s experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. Actual results could differ from these
estimates.</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">5.1&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Significant
Judgments</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">The
significant judgments that the Company&#x2019;s management has made
in the process of applying the Company&#x2019;s accounting policies,
apart from those involving estimation uncertainties (Annual
financial statements 5.2), that have the most significant effect on
the amounts recognized in the Annual Financial Statements include,
but are not limited to:</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="display: table-cell; width: 24px"><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">Functional currency
determination</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">The
functional currency for each of the Company&#x2019;s subsidiaries is
the currency of the primary economic environment and the Company
reconsiders the functional currency of its entities if there is a
change in events and conditions which determined the primary
economic environment. Management has determined the functional
currency of all entities to be the Canadian dollar.</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="display: table-cell; width: 24px"><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">Economic
recoverability and probability of future economic benefits of
exploration, evaluation and development costs</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">Management
has determined that exploratory drilling, evaluation, development
and related costs incurred which have been capitalized are
economically recoverable. Management uses several criteria in its
assessments of economic recoverability and probability of future
economic benefit including geologic and metallurgic information,
history of conversion of mineral deposits to proven and probable
reserves, scoping, prefeasibility and feasibility studies,
assessable facilities, existing permits and life of mine
plans.</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">Management
has determined that during the year ended December 31, 2019, none
of the Company&#x2019;s silver and vanadium projects have reached
technical feasibility and commercial viability and therefore remain
within Mineral Properties on the Statement of Financial
Position<font style="font-family: Times New Roman">.</font></font></div>
<div style="text-align: justify; margin-left: 72px; margin-right: 0px; text-indent: -72px">
<font style="font-family: Times New Roman; font-size: 13px">(c)&#xA0;Impairment
(recovery) assessment of deferred exploration
interests</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">The
Company considers both external and internal sources of information
in assessing whether there are any indications that mineral
property interests are impaired. External sources of information
the Company considers include changes in the market, economic and
legal environment in which the Company operates that are not within
its control and affect the recoverable amount of mineral property
interest. Internal sources of information the Company considers
include the manner in which mineral properties and plant and
equipment are being used or are expected to be used and indications
of economic performance of the assets.</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">12</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0;<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">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS</font> (cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.1</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Significant Judgments</font>
(cont&#x2019;d&#x2026;)</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">&#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">During
the year ended December 31, 2018, the Company wrote-off $13,994,970
of capitalized mineral property costs. During the year ended
December 31, 2019, the Company reversed $13,708,200 of impairment.
(Note 14).</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(d)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Deferred Tax
Liability</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">Judgement
is required to determine which types of arrangements are considered
to be a tax on income in contrast to an operating cost. Judgement
is also required in determining whether deferred tax liabilities
are recognised in the statement of financial position. Deferred tax
liabilities, including those arising from un-utilised tax gains,
require management to assess the likelihood that the Company will
generate sufficient taxable losses in future periods, in order to
offset recognised deferred tax liabilities<font style="font-family: Times New Roman">.</font> Assumptions about the
generation of future taxable losses depend on management&#x2019;s
estimates of future cash flows. These estimates of future taxable
losses are based on forecast cash flows from operations (which are
impacted by production and sales volumes, commodity prices,
reserves, operating costs, closure and rehabilitation costs,
capital expenditure, and other capital management transactions) and
judgement about the application of existing tax laws in each
jurisdiction. To the extent that future cash flows and taxable
losses differ significantly from estimates, the ability of the
Company to offset the net deferred tax liabilities recorded at the
reporting date could be impacted<font style="font-family: Times New Roman">.</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">
<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">5.2&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Estimates
and Assumptions</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">The
Company bases its estimates and assumptions on current and various
other factors that it believes to be reasonable under the
circumstances. Management believes the estimates are reasonable;
however, actual results could differ from those estimates and could
impact future results of operations and cash flows. The areas which
require management to make significant estimates and assumptions in
determining carrying values include, but are not limited
to:</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">(a)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineral
reserves</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"><font style="color: #000000">
The recoverability of the carrying value of the mineral properties
is dependent on successful development and commercial exploitation,
or alternatively, sale of the respective areas of
interest</font><font style="color: #000000; font-family: Times New Roman">.</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">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(b)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Depreciation</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">Significant
judgment is involved in the determination of useful life and
residual values for the computation of depreciation, depletion and
amortization and no assurance can be given that actual useful lives
and residual values will not differ significantly from current
assumptions.</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(c)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Impairment</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"><font style="color: #000000">
The carrying value of long-lived assets are reviewed each reporting
period to determine whether there is any indication of impairment.
If the carrying amount of an asset exceeds its recoverable amount,
the asset is impaired, and an impairment loss is recognized in the
consolidated statement of operations. The assessment of fair
values, including those of the cash generating units (the smallest
identifiable group of assets that generates cash inflows that are
largely independent of the cash inflow from other assets or groups
of assets) (&#x201C;</font><font style="font-weight: bold; color: #000000">CGUs</font><font style="color: #000000">&#x201D;) for purposes of testing goodwill, require
the use of estimates and assumptions for recoverable production,
long-term commodity prices, discount rates, foreign exchange rates,
future capital requirements and operating performance. Changes in
any of the assumptions or estimates used in determining the fair
value of goodwill or other assets could impact the impairment
analysis.</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 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">13</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS</font> (cont&#x2019;d...)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.2</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Estimates and Assumptions</font>
(cont&#x2019;d...)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(d)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Allowance for
doubtful accounts, and the recoverability of receivables and
prepaid expense amounts.</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">Significant
estimates are involved in the determination of recoverability of
receivables and no assurance can be given that actual proceeds will
not differ significantly from current estimations. Similarly,
significant estimates are involved in the determination of the
recoverability of services and/or goods related to the prepaid
expense amounts, and actual results could differ significantly from
current estimations.</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">Management
has made significant assumptions about the recoverability of
receivables and prepaid expense amounts. During the year ended
December 31,2019 the Company wrote-off $16,304 (2018 -
$21,004;2017-$61,202) of trade receivables which are no longer
expected to be recovered and $51,828 (2018 - $26,234;2017 -
$57,420) of prepaid expenses for which not future benefit is
expected to be received.</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="display: table-cell; width: 36px"><font style="font-family: Times New Roman; font-size: 13px">(e)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Provision for
closure and reclamation</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">The
Company assesses its mineral properties&#x2019; rehabilitation
provision at each reporting date or when new material information
becomes available. Exploration, development and mining activities
are subject to various laws and regulations governing the
protection of the environment. In general, these laws and
regulations are continually changing, and the Company has made, and
intends to make in the future, expenditures to comply with such
laws and regulations. Accounting for reclamation obligations
requires management to make estimates of the future costs that the
Company will incur to complete the reclamation work required to
comply with existing laws and regulations at each location. Actual
costs incurred may differ from those amounts
estimated.</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">Also,
future changes to environmental laws and regulations could increase
the extent of reclamation and remediation work required to be
performed by the Company. Increases in future costs could
materially impact the amounts charged to operations for reclamation
and remediation. The provision represents management&#x2019;s best
estimate of the present value of the future reclamation and
remediation obligation. The actual future expenditures may differ
from the amounts currently provided.</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(f)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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">Management
uses valuation techniques in measuring the fair value of share
purchase options granted. The fair value is determined using the
Black Scholes option pricing model which requires management to
make certain estimates, judgement, and assumptions in relation to
the expected life of the share purchase options and share purchase
warrants, expected volatility, expected risk-free rate, and
expected forfeiture rate. Changes to these assumptions could have a
material impact on the Annual 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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(f)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Contingencies</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">The
assessment of contingencies involves the exercise of significant
judgment and estimates of the outcome of future events. In
assessing loss contingencies related to legal proceedings that are
pending against the Company and that may result in regulatory or
government actions that may negatively impact the Company&#x2019;s
business or operations, the Company and its legal counsel evaluate
the perceived merits of the legal proceeding or unasserted claim or
action as well as the perceived merits of the nature and amount of
relief sought or expected to be sought, when determining the
amount, if any, to recognize as a contingent liability or when
assessing the impact on the carrying value of the Company&#x2019;s
assets. Contingent assets are not recognized in the Annual
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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(g)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Fair value
measurement</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">The
Company measures financial instruments at fair value at each
reporting date. The fair values of financial instruments measured
at amortized cost are disclosed in Note 21<font style="font-family: Times New Roman">.</font> Also, from time to time,
the fair values of non-financial assets and liabilities are
required to be determined, e.g., when the entity acquires a
business, completes</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">14</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS</font> (cont&#x2019;d...)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">5.2</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">Estimates and Assumptions</font>
(cont&#x2019;d...)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(g)&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Fair value
measurement (cont&#x2019;d&#x2026;)</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">an
asset acquisition or where an entity measures the recoverable
amount of an asset or cash-generating unit at fair value less costs
of disposal. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.</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">The
fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non-financial
asset takes into account a market participant&#x2019;s ability to
generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would
use the asset in its highest and best use. The Company uses
valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and minimising the
use of unobservable inputs. Changes in estimates and assumptions
about these inputs could affect the reported fair
value.</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">6.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES</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="display: table-cell; width: 24px"><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">Restricted cash
equivalents</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">Restricted
cash equivalents consist of highly liquid investments pledged as
collateral for the Company&#x2019;s credit card and are readily
convertible to known amounts of cash.</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="display: table-cell; width: 24px"><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">Mineral
properties</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">Mineral
property assets consist of exploration and evaluation costs. Costs
directly related to the exploration and evaluation of resource
properties are capitalized to mineral properties once the legal
rights to explore the resource properties are acquired or obtained.
These costs include acquisition of rights to explore, license and
application fees, topographical, geological, geochemical and
geophysical studies, exploratory drilling,&#xA0;trenching,
sampling, and activities in relation to evaluating the technical
feasibility and commercial viability of extracting a mineral
resource.</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">If it
is determined that capitalized acquisition, exploration and
evaluation costs are not recoverable, or the property is abandoned
or management has determined an impairment in value, the property
is written down to its recoverable amount. Mineral properties are
reviewed for impairment when facts and circumstances suggest that
the carrying amount may exceed its recoverable amount.</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">From
time to time, the Company acquires or disposes of properties
pursuant to the terms of option agreements. Options are exercisable
entirely at the discretion of the optionee and, accordingly, are
recorded as mineral property costs or recoveries when the payments
are made or received. After costs are recovered, the balances of
the payments received are recorded as a gain on option or
disposition of mineral property.</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: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(i)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Title to mineral
properties</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Although the
Company has taken steps to verify title to the properties on which
it is conducting exploration and in which it has an interest, in
accordance with industry standards for the current stage of
exploration of such properties, these procedures do not guarantee
the Company&#x2019;s title, nor has the Company insured title.
Property title may be subject to unregistered prior agreements and
non-compliance with regulatory requirements<font style="font-family: Times New Roman">.</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0;
<font style="font-family: Times New Roman; font-size: 13px"><br>
</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">15</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">6.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</font> (cont&#x2019;d&#x2026;)</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="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">Mineral properties
(cont&#x2019;d&#x2026;)</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: 72px; margin-right: 0px; text-indent: -48px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)&#xA0;Realization
of mineral property assets</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
investment in and expenditures on mineral property interests
comprise a significant portion of the Company&#x2019;s assets.
Realization of the Company&#x2019;s investment in these assets is
dependent upon the establishment of legal ownership, and the
attainment of successful production from properties or from the
proceeds of their disposal. Resource exploration and development is
highly speculative and involves inherent risks. While the rewards
if an ore body is discovered can be substantial, few properties
that are explored are ultimately developed into profitable
producing mines. There can be no assurance that current exploration
programs will result in the discovery of economically viable
quantities of ore.</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
amounts shown for acquisition costs and deferred exploration
expenditures represent costs incurred to date and do not
necessarily reflect present or future values.</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: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 36px"><font style="font-family: Times New Roman; font-size: 13px">(ii)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Environmental</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is subject to the laws and regulations relating to
environmental matters in all jurisdictions in which it operates,
including provisions relating to property reclamation, discharge of
hazardous material and other matters. The Company may also be held
liable should environmental problems be discovered that were caused
by former owners and operators of its properties and properties in
which it has previously had an interest.</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company conducts its mineral exploration activities in compliance
with applicable environmental protection legislation. Other than as
disclosed in Note 17, the Company is not aware of any existing
environmental issues related to any of its current or former
properties that may result in material liability to 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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Environmental
legislation is becoming increasingly stringent and costs and
expenses of regulatory compliance are increasing. The impact of new
and future environmental legislation on the Company&#x2019;s
operations may cause additional expenses and restrictions. If the
restrictions adversely affect the scope of exploration and
development on the mineral properties, the potential for production
on the property may be diminished or negated.</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="display: table-cell; width: 24px"><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">Equipment</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">Equipment
is stated at cost less accumulated depreciation and accumulated
impairment losses, if any. The cost of an item of property and
equipment consists of the purchase price, any costs directly
attributable to bringing the asset to the location and condition
necessary for its intended use, and an initial estimate of the
costs of dismantling and removing the item and restoring the site
on which it is located.</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">Depreciation
of equipment is recorded on a declining-balance basis at the
following annual rates:</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 style="background-color: rgb(204, 238, 255);">
<td style="vertical-align: top; width: 45%; border-top: 0.5pt 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">Computer
equipment</font></div>
</td>
<td style="vertical-align: top; width: 55%; border-top: 0.5pt solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">45%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 45%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Furniture
and equipment</font></div>
</td>
<td style="vertical-align: top; width: 55%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="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: top; width: 45%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Leasehold
improvement</font></div>
</td>
<td style="vertical-align: top; width: 55%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Straight
line / 5 years</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 45%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Mining
equipment</font></div>
</td>
<td style="vertical-align: top; width: 55%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="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: top; width: 45%">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Vehicles</font></div>
</td>
<td style="vertical-align: top; width: 55%">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">30%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 45%; 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">Right-of-use
asset</font></div>
</td>
<td style="vertical-align: top; width: 55%; border-bottom: 2px solid #000000">
<div style="text-align: right; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Straight
line / term of lease</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">When
parts of major components of equipment have different useful lives,
they are accounted for as a separate item of
equipment.</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;<br>
</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">16</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">6.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</font> (cont&#x2019;d&#x2026;)</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="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">Equipment
(cont&#x2019;d&#x2026;)</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">The
cost of major overhauls of part of equipment is recognized in the
carrying amount of the item if is probable that the future economic
benefits embodied within the part will flow to the Company, and its
cost can be measured reliably. The carrying amount of the replaced
part is derecognized. The costs of the day-to-day servicing of
equipment are recognized in profit or loss as
incurred.</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="display: table-cell; width: 24px"><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">Impairment of
non-current assets and Cash Generating Units (&#x201C;<font style="font-weight: bold">CGU</font>&#x201D;)</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">At the
end of each reporting period, the Company reviews the carrying
amounts of its tangible and intangible assets to determine whether
there is an indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any).</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">Where
it is not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable amount of
the CGU, where the recoverable amount of the CGU is the greater of
the CGU&#x2019;s fair value less costs to sell and its value in use
to which the assets belong. In assessing value in use, estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the
asset.</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">If the
recoverable amount of an asset (or CGU) is estimated to be less
than its carrying amount, the carrying amount of the asset (or CGU)
is reduced to its recoverable amount. An impairment loss is
recognized immediately in the statement of comprehensive loss,
unless the relevant asset is carried at a revalued amount, in which
case the impairment loss is treated as a revaluation decrease. Each
project or group of claims or licenses is treated as a CGU. The
Company uses its best efforts to fully understand all of the
aforementioned to make an informed decision based upon historical
and current facts surrounding the projects. Discounted cash flow
techniques often require management to make estimates and
assumptions concerning reserves and expected future production
revenues and expenses, which can vary from actual.</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">Where
an impairment loss subsequently reverses, the carrying amount of
the asset (or CGU) is increased to the revised estimate of its
recoverable amount, such that the increased carrying amount does
not exceed the carrying amount that would have been determined had
no impairment loss been recognized for the asset (or CGU) in prior
years.</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="display: table-cell; width: 24px"><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">Borrowing
costs</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">Borrowing
costs directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized as part of the
cost of that asset. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of
funds.</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">Where
funds are borrowed specifically to finance a project, the amount
capitalized represents the actual borrowing costs incurred. Where
surplus funds are available for a short-term from funds borrowed
specifically to finance a project, the income generated from the
temporary investment of such amounts is also capitalized and
deducted from the total capitalized borrowing cost. Where the funds
used to finance a project are from part of general borrowings, the
amount capitalized is calculated using a weighted average of rates
applicable to relevant general borrowings of the Company during the
period. All other borrowing costs are recognized in profit or loss
in the period in which they are incurred.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;<br></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">17</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">6.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</font> (cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(f)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Foreign currency
translation</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">Transactions
in currencies other than the functional currency are recorded at
the prevailing exchange rates on the dates of the transactions. At
each financial position reporting date, monetary assets and
liabilities denominated in foreign currencies are translated at the
prevailing exchange rates at the date of the consolidated statement
of financial position. Non-monetary items measured in terms of
historical cost in a foreign currency are not retranslated. Gains
and losses arising from this translation are included in the
determination of net gain or loss for the year.</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(g)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Revenue
recognition</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">The
Company recognizes interest income on its cash on an accrual basis
at the stated rates over the term to maturity.</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">Sales
of coal are recognized when the risks and rewards of ownership pass
to the customer and the price can be measured reliably. Sales
contracts and revenue is recognized based on the terms of the
contract. Revenue is measured at the fair value of the
consideration received, excluding discounts and rebates. Royalties
related to production are recorded in cost of sales. Sales of coal
are generated from incidental coal sales and are recorded net of
associated costs.</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(h)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Unit
offerings</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">Proceeds
received on the issuance of units, consisting of common shares and
warrants, are allocated first to common shares based on the market
trading price of the common shares at the time the units are
priced, and any excess is allocated to warrants.</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(i)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments</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">The
Company has a share purchase option plan that is described in Note
19. The Company accounts for share-based payments using a fair
value-based method with respect to all share-based payments to
directors, officers, employees, and service providers. Share-based
payments to employees are measured at the fair value of the
instruments issued and amortized over the vesting periods.
Share-based payments to non-employees are measured at the fair
value of the goods or services received or if such fair value is
not reliably measurable, at the fair value of the equity
instruments issued. The fair value is recognized as an expense or
capitalized to mineral properties or property and equipment with a
corresponding increase in option reserve. This includes a
forfeiture estimate, which is revised for actual forfeitures in
subsequent periods.</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">Where
the terms and conditions of options are modified before they vest,
the increase in the fair value of the options, measured immediately
before and after the modification, is also charged to the
consolidated statement of operations over the remaining vesting
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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Upon
the exercise of the share purchase option, the consideration
received, and the related amount transferred from option reserve
are recorded as share 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>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(j)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Loss per
share</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">Basic
loss per share is calculated using the weighted average number of
common shares outstanding during the period. The Company uses the
treasury stock method to compute the dilutive effect of options and
warrants. Under this method the dilutive effect on earnings per
share is calculated presuming the exercise of outstanding options
and warrants. It assumes that the proceeds of such exercise would
be used to repurchase common shares at the average market price
during the period. However, the calculation of diluted loss per
share excludes the effects of various conversions and exercise of
options and warrants that would be anti-dilutive. During the year
ended December 31, 2019, the weighted average number of diluted
common shares outstanding includes 190,034 dilutive stock
options.</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">18</font></div>
</div>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">6.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</font> (cont&#x2019;d&#x2026;)</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="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(k)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Income
taxes</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">The
Company uses the asset and liability method to account for income
taxes. Deferred income taxes are recognized for the future income
tax consequences attributable to differences between the carrying
values of assets and liabilities and their respective income tax
basis on the statement of financial position date. Deferred income
tax assets and liabilities are measured using the tax rates
expected to be in effect when the temporary differences are likely
to reverse. The effect on deferred income tax assets and
liabilities of a change in tax rates is included in operations in
the period in which the change is enacted or substantively enacted.
The amount of deferred income tax assets recognized is limited to
the amount of the benefit that is probable upon
recovery.</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="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(l)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Provision for
closure and reclamation</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">The
Company assesses its equipment and mineral property rehabilitation
provision at each reporting date. Changes to estimated future costs
are recognized in the statement of financial position by either
increasing or decreasing the rehabilitation liability and asset to
which it relates if the initial estimate was originally recognized
as part of an asset measured in accordance with IAS 16 <font style="font-style: italic">Property, Plant and
Equipment</font><font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company records the present value of estimated costs of legal and
constructive obligations required to restore operations in the
period in which the obligation is incurred. The nature of these
restoration activities includes dismantling and removing
structures; rehabilitating mineral properties; dismantling
operating facilities; closure of plant and waste sites; and
restoration, reclamation and vegetation of affected
areas.</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">Present
value is used where the effect of the time value of money is
material. The related liability is adjusted each period for the
unwinding of the discount rate and for changes in estimates,
changes to the current market-based discount rate, and the amount
or timing of the underlying cash flows needed to settle the
obligation.</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="display: table-cell; width: 48px"><font style="font-family: Times New Roman; font-size: 13px">(m)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Financial
instruments</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">Classification</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-family: Times New Roman; font-size: 13px">Financial assets
are classified at initial recognition as either: measured at
amortized cost, FVTPL or fair value through other comprehensive
income ("FVOCI"). The classification depends on the Company&#x2019;s
business model for managing the financial assets and the
contractual cash flow characteristics. For assets measured at fair
value, gains and losses will either be recorded in profit or loss
or OCI. Derivatives embedded in contracts where the host is a
financial asset in the scope of the standard are never separated.
Instead, the hybrid financial instrument as a whole is assessed for
classification. Financial liabilities are measured at amortized
cost, unless they are required to be measured at FVTPL or the
Company has opted to measure at FVTPL.</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-family: Times New Roman; font-size: 13px">Measurement</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-family: Times New Roman; font-size: 13px">Financial assets
and liabilities at FVTPL are initially recognized at fair value and
transaction costs are expensed in the consolidated statement of
loss and comprehensive loss. Realized and unrealized gains and
losses arising from changes in the fair value of the financial
assets or liabilities held at FVTPL are included in the
consolidated statement of operations and comprehensive loss in the
period in which they arise. Where the Company has opted to
designate a financial liability at FVTPL, any changes associated
with the Company's credit risk will be recognized in OCI. Financial
assets and liabilities at amortized cost are initially recognized
at fair value, and subsequently carried at amortized cost less any
impairment.</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-family: Times New Roman; font-size: 13px">Impairment</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-family: Times New Roman; font-size: 13px">The
Company assesses on a forward-looking basis the expected credit
losses ("ECL") associated with financial assets measured at
amortized cost, contract assets and debt instruments carried at
FVOCI. The impairment methodology applied depends on whether there
has been a significant increase in credit risk. Please refer to
Note 21 for relevant fair value measurement
disclosures.</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>
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<!--page break--></div>
<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">7.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SEGMENTED
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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company operates in one operating segment, being the acquisition,
exploration and development of mineral properties. Geographic
segmentation of the Company&#x2019;s non-current assets is as
follows:</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%;border-bottom:solid 2px #000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:96%;border-bottom:solid 2px #000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:2%;border-bottom:solid 2px #000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Canada</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">USA</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Mongolia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Bolivia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Reclamation
deposits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Equipment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,005</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">89,826</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">35,721</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,932</font><font style="text-align: left; color:#000000;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: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;">159,484</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineral
properties</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">8,600,658</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">15,182,226</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">23,782,884</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,005</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">8,690,484</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">56,776</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">15,204,158</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">23,963,423</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="null"><font>&#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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:96%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:2%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Canada</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">USA</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Mongolia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Bolivia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Reclamation
deposits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Equipment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14,839</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">22,713</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">33,440</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,170</font><font style="text-align: left; color:#000000;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: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;">101,162</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineral
properties</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,643,720</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">3,643,720</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,839</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,666,433</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">54,495</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">30,170</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,765,937</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="null"><font>&#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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:96%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:2%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Canada</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">USA</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Mongolia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Bolivia</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Reclamation
deposits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,055</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Equipment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,376</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">48,364</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">465,171</font><font style="text-align: left; color:#000000;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: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;">531,911</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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineral
properties</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">490,356</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,809,550</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">13,299,906</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">18,376</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">490,356</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">69,419</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">13,274,721</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">13,852,872</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;<br>
</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">8.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CASH
AND CASH EQUIVALENTS</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">Cash
and cash equivalents and restricted cash equivalents of the Company
are comprised of bank balances and a guaranteed investment
certificate which can be readily converted into cash without
significant restrictions, changes in value or
penalties.</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: 64%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">804,097</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash
equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,500,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Restricted
cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">34,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">34,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">34,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,052,204</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,338,597</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,135,108</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Cash Equivalents</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Restricted Cash Equivalents</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">As at
December 31, 2019, a guaranteed investment certificate of $34,500
(2018 - $34,500, 2017 &#x2013; $34,500) has been pledged as
collateral for the Company&#x2019;s credit card.</font></div>
<font style="font-family: Times New Roman; font-size: 10">&#xA0;</font>
<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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">9.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RECEIVABLES</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">Trade
receivables are non-interest-bearing and are generally on terms of
30 to 90 days.</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:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Input
tax recoverable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">20,741</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">36,399</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">10,562</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Trade
receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">195,433</font><font style="text-align: left; color:#000000;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; 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><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,091</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Subscriptions
receivable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">30,497</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">246,671</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">36,399</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">34,653</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;<br>
</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">During
the year ended December 31, 2019, the Company wrote-off $16,304
(2018 - $21,004. 2017 - $61,202) of receivables which are no longer
expected to be recovered.</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="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">10.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PREPAID
EXPENSES</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;<br>
</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%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">General</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">44,613</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">47,215</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; 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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">59,815</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">57,883</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">41,029</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Environmental
and taxes</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">6,850</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,789</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">47,508</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Rent</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,489</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,385</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11,458</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Market
advisors</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">40,615</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">135,767</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">123,272</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">140,610</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">During
the year ended December 31, 2019, the Company wrote-off $51,828
(2018 - $26,234, 2017 - $57,420) of prepaid expenses for which no
future benefit is expected to be received.</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="display: table-cell; width: 48px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">11.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">MARKETABLE
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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Marketable
securities consist of investment in common shares of public
companies and therefore have no fixed maturity date or coupon rate.
The fair value of the listed marketable securities has been
determined directly by reference to published price quotation in an
active market.</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">As at
and during the year ended December 31, 2019, the Company did not
have marketable securities. During the year ended December 31,
2018, the Company sold all its marketable securities for proceeds
of $162,490 and a realized loss of $91,890. Following the disposal
of the shares, the Company reclassified the cumulative loss
previously recognized in other comprehensive income of $68,840 to
profit and loss on the sale of marketable securities.</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">The
following table summarized information regarding the
Company&#x2019;s marketable securities as at December 31, 2017,
2018, and 2019:</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">&#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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Marketable
securities</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
beginning of period</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">205,600</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">176,000</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,940</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">193,440</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Disposals</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(162,490</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(153,190</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Realized
loss on disposal</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(91,890</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(22,810</font><font style="text-align: left; color:#000000;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 colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Unrealized
gain/(loss) on mark-to-market</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(12,160</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,160</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
end of period</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">205,600</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">12.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RIGHT-OF-USE
ASSET</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">During
the first-time application of IFRS 16 to the Company&#x2019;s office
lease, the recognition of a right of use asset was required and the
leased asset was measured at the amount of the lease liability
using the Company&#x2019;s current incremental borrowing rate of
10%. The lease contains no extension or termination options. The
following table presents the right-of-use-asset as at January 1,
2019 and December 31, 2019:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">13.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EQUIPMENT</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">During
the year ended December 31, 2018, the Company wrote-off $425,925 of
mining equipment in Bolivia that was no longer in use. During the
year ended December 31, 2017, the Company wrote-off $159,666 (2016
- $Nil) of equipment in Mongolia that was no longer in
use.</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"><font style="color: #000000">
On October 1</font><font style="color: #000000; font-family: Times New Roman">0</font><font style="color: #000000">, 2018, the Company signed a lease agreement (the
&#x201C;</font><font style="font-weight: bold; color: #000000">Lease</font><font style="color: #000000">&#x201D;) with an arms-length private Mongolian
company (the &#x201C;</font><font style="font-weight: bold; color: #000000">Lessee</font><font style="color: #000000">&#x201D;) whereby the Lessee plans to perform
mining operations at The Company&#x2019;s Ulaan Ovoo coal mine and
will pay The Company USD2.00 (the &#x201C;</font><font style="font-weight: bold; color: #000000">Production
Royalty</font><font style="color: #000000">&#x201D;) for every tonne
of coal shipped from the Ulaan Ovoo site
premises.</font><font style="font-size: 13px">&#xA0;</font><font style="color: #000000">The
Lessee paid The Company USD100,000 in cash (recorded as other
income on the consolidated statement of operations) as a
non-refundable advance royalty payment and is preparing, at its own
and sole expense, to restart and operate the Ulaan Ovoo mine with
its own equipment, supplies, housing and crew.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Lease is valid for 3 years with an annual advance royalty payment
(&#x201C;<font style="font-weight: bold">ARP</font>&#x201D;) for the
first year of USD100,000 which was due and paid upon signing, and
USD150,000 and USD200,000 due on the 1st and 2nd anniversary of the
Lease, respectively. The ARP can be credited towards the USD2.00
per tonne Production Royalty payments to be made to The Company as
the Lessee starts to sell Ulaan Ovoo coal. <font style="color: #222222; font-family: Times New Roman">The 3-year Lease can
be extended upon mutual agreement.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
impaired value of $Nil for deferred development costs at Ulaan Ovoo
property at December 31, 2019 (2018, 2017 - $Nil) remains
unchanged.</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">The
following table summarized information regarding the
Company&#x2019;s equipment as at December 31, 2017, 2018, and
2019:</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">22</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; color: #000000">13. EQUIPMENT</font>
<font style="color: #000000">(cont'd&#x2026;)</font></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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Computer</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Furniture
&amp;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Mining</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#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;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Equipment</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Equipment</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Vehicles</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Equipment</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:50%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Cost</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;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%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;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%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;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%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;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%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:50%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,221</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">279,213</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">453,854</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,534,745</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,368,033</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(147</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,383</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,530</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(281,162</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(219,916</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(501,078</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">100,074</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">276,830</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">172,692</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,314,829</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,864,425</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Accumulated depreciation</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">94,900</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">181,639</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">339,916</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">833,971</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,450,426</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Depreciation
for year</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,795</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">35,434</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">18,434</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">167,837</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">223,500</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(228,508</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(112,904</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(341,412</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">96,695</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">217,073</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">129,842</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">888,904</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,332,514</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Carrying amount at December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,379</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">59,757</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">42,850</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">425,925</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">531,911</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,074</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">276,830</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">172,692</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,314,829</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,864,425</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions/Disposals</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,180</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,015</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,476</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">29,671</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(1,314,829</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(1,314,829</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">103,254</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">278,845</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">172,692</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">24,476</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">579,267</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Accumulated depreciation</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">96,695</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">217,073</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">129,842</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">888,904</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,332,514</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Depreciation
for year</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,316</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">16,351</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">13,337</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,491</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,495</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
charge</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(888,904</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(888,904</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">98,011</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">233,424</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">143,179</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,491</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">478,105</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Carrying amount at December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,243</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">45,421</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">29,513</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">20,985</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">101,162</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">103,254</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">278,845</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">172,692</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,476</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">579,267</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Additions</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">95,887</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">95,887</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Disposals</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(48,973</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(48,973</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">103,254</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">278,845</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">219,606</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">24,476</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">626,181</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Accumulated depreciation</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">98,011</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">233,424</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">143,179</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,491</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">478,105</font><font style="text-align: left; color:#000000;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:50%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Disposals</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(39,178</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(39,178</font><font style="text-align: left; color:#000000;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:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Depreciation
for year</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">792</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,445</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">10,641</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,892</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">27,770</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Balance,
December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">98,803</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">245,869</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">114,642</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,383</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">466,697</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:50%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Carrying amount at December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,451</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">32,976</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">104,964</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">17,093</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">159,484</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">23</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <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">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
14. MINERAL PROPERTIES</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: 40%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Gibellini</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Chandgana
Tal</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Khavtgai
Uul</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Pulacayo
Paca</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Titan</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 10%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11,186,322</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,232,443</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">11,980,943</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">26,399,708</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Additions:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Acquisition
cost</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">58,790</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">96,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">154,990</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Deferred
exploration costs:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Licenses,
tax, and permits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">74,876</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">27,190</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">242,766</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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: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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">344,832</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Geological
and consulting</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">272,620</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">39,362</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">102,592</font><font style="text-align: left; color:#000000;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: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;">&#xA0;</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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">414,574</font><font style="text-align: left; color:#000000;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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Personnel,
camp and general</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">84,070</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,492</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,492</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">726,015</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">815,069</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">431,566</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">69,044</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">245,258</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">828,607</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,574,475</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(11,255,366</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(3,477,701</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(96,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(14,829,267</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">490,356</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">12,809,550</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">13,299,906</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Additions:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Acquisition
cost</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">425,605</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">425,605</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Deferred
exploration costs:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Licenses,
tax, and permits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">387,149</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,271</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">261,168</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">649,588</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Geological
and consulting</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,509,587</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">51,112</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,560,699</font><font style="text-align: left; color:#000000;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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Personnel,
camp and general</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">831,023</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">20,590</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,741</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">847,538</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,702,892</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,727,759</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">21,861</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">264,909</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">898,650</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,913,179</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(21,861</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(264,909</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(13,708,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(13,994,970</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,643,720</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,643,720</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Additions:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Acquisition
cost</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Deferred
exploration costs:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Licenses,
tax, and permits</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">286,158</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">286,158</font><font style="text-align: left; color:#000000;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:40%;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Geological
and consulting</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,200,773</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">970,955</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,171,728</font><font style="text-align: left; color:#000000;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:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:36px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Personnel,
camp and general</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,470,007</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">503,071</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,973,078</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,956,938</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,474,026</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">6,430,964</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Impairment
Recovery</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">13,708,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">13,708,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:40%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
Balance, December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">8,600,658</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">15,182,226</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:10%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">23,782,884</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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><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">
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">24</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</font></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-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</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 style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">14.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">MINERAL PROPERTIES</font>
(cont&#x2019;d...)</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="background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Gibellini Project, Nevada, 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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-style: italic; font-family: Times New Roman; font-size: 13px">
Gibellini 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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="background-color: #FFFFFF">
The Gibellini Project consists of a total of 354 unpatented lode
mining claims that include: the Gibellini group of 40 claims, the
VC Exploration group of 105 claims, and the Company group of 209
claims. All the claims are</font> <font style="font-family: Times New Roman">located in Eureka County, Nevada,
USA.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
Gibellini Group</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">The
Gibellini group of claims was acquired on June 22, 2017, through
lease from the claimant (the &#x201C;<font style="font-weight: bold">Gibellini Lessor</font>&#x201D;) and includes an
area of approximately 771 acres. Under the Gibellini Mineral Lease
Agreement (<font style="color: #000000; font-family: Times New Roman">the</font>
<font style="color: #000000; font-family: Times New Roman; background-color: #FFFFFF">
&#x201C;</font><font style="font-weight: bold; color: #000000; font-family: Times New Roman; background-color: #FFFFFF">Gibellini
MLA</font><font style="color: #000000; font-family: Times New Roman; background-color: #FFFFFF">&#x201D;)</font>
the Company leased the Gibellini group of claims which originally
constituted the Gibellini Project by among other things, agreeing
to pay to the Gibellini Lessor, US$35,000 (paid), and annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed US$120,000 per year), to the average
vanadium pentoxide price of the prior year. Upon commencement of
production, The Company will maintain its acquisition through lease
of the Gibellini group of claims by paying to the Gibellini Lessor,
a 2.5% NSR until a total of US$3,000,000 is paid. Thereafter, the
NSR will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as &#x201C;production royalty
payments&#x201D;). All advance royalty payments made, will be
deducted as credits against future production royalty payments. The
lease is for a term of 10 years, which can be extended for an
additional 10 years at The Company&#x2019;s option.</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">On
April 23, 2018, the Company announced <font style="color: #000000">an amendment to the</font> <font style="color: #000000; background-color: #FFFFFF">Gibellini MLA, whereby
the Company has been granted the right to cause the&#xA0;Gibellini
Lessor of the Gibellini mineral claims to transfer their title to
the claims to The Company. With the amendment, the Company will
have the option to, at any time during the term of the Gibellini
MLA, require the Gibellini Lessor to transfer title over all of the
leased, unpatented lode mining claims (excluding four claims which
will be retained by the Gibellini Lessor (the
&#x201C;</font><font style="font-weight: bold; color: #000000; background-color: #FFFFFF">Transferred
Claims</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;) to The Company
in exchange for US$1,000,000, to be paid as an advance royalty
payment (the &#x201C;</font><font style="font-weight: bold; color: #000000; background-color: #FFFFFF">Transfer
Payment</font><font style="color: #000000; background-color: #FFFFFF">&#x201D;). A credit of
US$99,027 in favour of The Company towards the Transfer Payment is
already paid upon signing of the amendment, with the remaining
US$900,973 portion of the Transfer Payment due and payable by The
Company to the Gibellini Lessor upon completion of transfer of the
Transferred Claims from the Gibellini Lessor to The Company. The
advance royalty obligation and production royalty will not be
affected, reduced or relieved by the transfer of
title.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
22, 2019, the Company paid US$120,000 (2018 &#x2013; US$101,943) of
the annual royalty payment to the Gibellini Lessor.</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-style: italic; font-family: Times New Roman; font-size: 13px">
VC Exploration Group</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"><font style="background-color: #FFFFFF">
On July 13, 2017, the Company acquired (through lease under the
mineral lease agreement &#x201C;</font><font style="font-weight: bold; background-color: #FFFFFF">Louie Hill
MLA</font><font style="background-color: #FFFFFF">&#x201D;) from the
holders (</font><font style="font-family: Times New Roman">the
&#x201C;</font><font style="font-weight: bold; font-family: Times New Roman">Former</font><font style="font-family: Times New Roman">&#xA0;</font><font style="font-weight: bold; font-family: Times New Roman">Louie
Hill Lessors</font><font style="font-family: Times New Roman">&#x201D;)</font> <font style="background-color: #FFFFFF">10 unpatented lode claims totaling
approximately 207 acres that comprised the Louie Hill group of
claims</font> located <font style="font-family: Times New Roman">approximately 500 metres south of
the Gibellini group of claims.</font> These claims were
subsequently abandoned by the holders, and on March 11, 2018 and
March 12, 2018, the Company&#x2019;s wholly owned US subsidiaries,
Vanadium Gibellini Company LLC and VC Exploration (US) Inc., staked
the area within and under 17 new claims totaling approximately 340
gross acres which now collectively comprise the expanded Louie Hill
group of claims.</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">Under
the Louie Hill MLA, the Company is required to make payments as
follows: cash payment of US$10,000 (paid), annual advance royalty
payments which will be tied, based on an agreed formula (not to
exceed US$28,000 per year), to the average vanadium pentoxide price
for the prior year. Upon commencement of production, the Company
will pay to the Former Louie Hill Lessors, a 2.5% NSR of which,
1.5% of the NSR may be purchased at any time by the Company for
US$1,000,000, leaving the total NSR to be reduced to 1% over the
remaining life of the mine (and referred to thereafter, as
&#x201C;production royalty payments&#x201D;). All advance royalty
payments made, will be</font></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-family: Times New Roman; font-size: 13px">&#xA0;</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">25</font></div>
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<div id="hdr">
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">14.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">MINERAL PROPERTIES</font>
(cont&#x2019;d...)</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"><font style="font-weight: bold; font-style: italic; background-color: #FFFFFF">
Gibellini Project, Nevada, United States</font>
(cont&#x2019;d&#x2026;)</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">deducted
as credits against future production royalty payments. The lease
will be for a term of 10 years, which can be extended for an
additional 10 years at The Company&#x2019;s option.</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">On
October 22, 2018, the Company and <font style="font-family: Times New Roman">Former Louie Hill
Lessors</font><font style="background-color: #FFFFFF">&#xA0;</font>entered into a royalty
agreement (the &#x201C;<font style="font-weight: bold">Royalty
Agreement</font>&#x201D;) that terminated the Louie Hill MLA and
provides for the Company to pay the following royalties to the
<font style="font-family: Times New Roman">Former Louie Hill
Lessors</font><font style="background-color: #FFFFFF">&#xA0;</font>
as an advance royalty: (i) US$75,000 upon the Company achieving
Commercial Production (as defined in the Royalty Agreement) at its
Gibellini Project; (ii) US$50,000 upon the Company selling,
conveying, transferring or assigning all or any portion of certain
claims defined in the Royalty Agreement to any third party and
(iii) annually upon the anniversary date of July 10, 2018 and the
like day thereafter during the term of the Royalty Agreement: (a)
if the average vanadium pentoxide price per pound as quoted on
<font style="text-decoration: underline; color: #0000FF">www.metalbulletin.com</font><font style="font-weight: bold">&#xA0;</font>(the
&#x201C;<font style="font-weight: bold">Metal
Bulletin</font>&#x201D;) or another reliable and reputable industry
source as agreed by the parties, remains below US$7.00/lb during
the preceding 12 months, US$12,500; or (b) if the average vanadium
pentoxide price per pound as quoted on Metal Bulletin or another
reliable and reputable industry source as agreed by the parties,
remains equal to or above US$7.00/lb during the preceding 12
months, US$2,000 x average vanadium pentoxide price per pound up to
a maximum annual advance royalty payment of US$28,000. Further, the
Company will pay to the <font style="font-family: Times New Roman">Former Louie Hill
Lessors</font><font style="background-color: #FFFFFF">&#xA0;</font>a production royalty of
2.5% of the net smelter returns of vanadium produced from the
royalty area and sold. The Company has an option to purchase 1.5%
of the 2.5% of the production royalty from the <font style="font-family: Times New Roman">Former Louie Hill
Lessors</font><font style="background-color: #FFFFFF">&#xA0;</font>for
US$1,000,000<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On June
18, 2019, the Company paid US$28,000 (2018 &#x2013; US$21,491) of
the annual royalty payment to the Louie Hill Lessor.</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"><font style="color: #000000">
On February 15, 2018, the Company acquired 105 unpatented lode
mining claims located adjacent to its Gibellini Project through the
acquisition of</font> <font style="background-color: #FFFFFF">1104002 B.C. Ltd. and its Nevada
subsidiary VC Exploration (US) Inc.</font> <font style="color: #000000">(&#x201C;</font><font style="font-weight: bold; color: #000000">VC
Exploration</font><font style="color: #000000">&#x201D;)</font>
<font style="font-family: Times New Roman">by paying a total of
$335,661 in cash and issuing 500,000 Share purchase warrants</font>
<font style="background-color: #FFFFFF">(</font>valued
at</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">$89,944)<font style="background-color: #FFFFFF">&#xA0;</font><font style="font-family: Times New Roman">to
arm&#x2019;s-length, private parties.</font> Each warrant entitles
the holder upon exercise, to acquire one Share of the Company at a
price of $0.50 per Share until February 15, 2021. The acquisition
of the VC Exploration has been accounted for as an asset
acquisition as their activities at the time of the acquisition
consisted of mineral claims only.</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-style: italic; font-family: Times New Roman; font-size: 13px">
The Company Group</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="color: #000000; font-family: Times New Roman; font-size: 13px">
During 2017 and 2018, the Company expanded the land position at the
Gibellini Project, by staking a total of 209 new claims immediately
adjacent to the Gibellini Project covering 4091 acres.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Pulacayo Paca Property, Bolivia</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"><font style="color: #000000">
The Pulacayo property, a</font> <font style="font-family: Times New Roman">silver-lead-zinc project</font>
<font style="color: #000000">located in southwestern Bolivia, was
acquired on January 2, 2015 through the acquisition of 100% of
Apogee&#x2019;s interest in ASC Holdings Limited and ASC Bolivia
LDC,</font> <font style="font-family: Times New Roman">which
together, hold ASC Bolivia LDC Sucursal Bolivia</font> <font style="color: #000000">(&#x201C;</font><font style="font-weight: bold; color: #000000">ASC</font><font style="color: #000000">&#x201D;)</font><font style="font-family: Times New Roman">, which in turn, holds a joint
venture interest in the Pulacayo Project.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">ASC
controls the mining rights to the Pulacayo Project through a joint
venture agreement entered into between itself and the Pulacayo
Ltda. Mining Cooperative on July 30, 2002 (the &#x201C;<font style="font-weight: bold">ASC Joint Venture</font>&#x201D;). The ASC Joint
Venture has a term of 23 years which commenced the day the ASC
Joint Venture was entered into. Pursuant to the ASC Joint Venture,
ASC is committed to pay monthly rent of US$1,000 to the state-owned
Mining Corporation of Bolivia, COMIBOL and US$1,500 monthly rent to
the Pulacayo Ltda. Mining Cooperative until the Pulacayo Project
starts commercial production.</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-family: Times New Roman; font-size: 13px">&#xA0;</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">26</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<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">During
the year ended December 31, 2018, the Company determined there were
several indicators of potential impairment of the carrying value of
the Pulacayo Paca property. The indicators of potential impairment
were as follows:</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="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">14.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">MINERAL PROPERTIES</font>
(cont&#x2019;d...)</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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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">
Pulacayo Paca Property, Bolivia</font>
(cont&#x2019;d...)</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: 24px"><font style="font-family: Times New Roman; font-size: 13px">(i)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">change in the
Company&#x2019;s primary focus to the Gibellini
Project;</font></div>
</div>
</div>
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<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(ii)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">management&#x2019;s
decision to suspend further exploration activities;
and</font></div>
</div>
</div>
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<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(iii)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">no positive
decision from the Bolivian Government to grant mining production
contract to develop the project.</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">As
result, in accordance with <font style="font-style: italic">IFRS 6,
Exploration for and Evaluation of Mineral</font> <font style="font-style: italic">Resources</font> and <font style="font-style: italic">IAS 36, Impairment of Assets</font>, at
December 31, 2018, the Company assessed the recoverable amount of
the Pulacayo Paca property exploration costs and determined that
its value in use is $nil. As at December 31, 2018, the recoverable
amount of $nil resulted in an impairment charge of $13,708,200
against the value of the deferred exploration costs, which was
reflected on the consolidated statement of 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-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2019, the Company assessed whether
there was any indication that the previously recognized impairment
loss in connection with the Pulacayo Paca property <font style="color: #0D0D0D">may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:</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">
<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 Company signed
a mining production contract granting the Company the 100%
exclusive right to develop and mine at the Pulacayo Paca
property;</font></div>
</div>
</div>
<div style="display: table">
<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="color: #000000; font-family: Times New Roman; font-size: 13px">The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;</font></div>
</div>
</div>
<div style="display: table">
<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"><font style="color: #000000">The Company re-initiated active exploration and
drilling program on the property</font>;</font></div>
</div>
</div>
<div style="display: table">
<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">Completed a
positive final settlement of Bolivian tax dispute (note
27).</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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property.</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">In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property&#x2019;s fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.</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">With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.</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
Company also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.</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">As the
recoverable amount estimated with respect to the above was $31.4
million an impairment recovery of $13,708,200 was recorded during
the year ended December 31, 2019.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Previously Impaired Properties</font></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-style: italic; font-family: Times New Roman; font-size: 13px">
Chandgana Properties, Mongolia</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">
Chandgana Tal</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-family: Times New Roman; font-size: 13px">In
March 2006, the Company acquired a 100% interest in the Chandgana
Tal property, a coal exploration property consisting of two
exploration licenses located in the northeast part of the Nyalga
coal basin, approximately 290 kilometers east of Ulaanbaatar,
Mongolia<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
March 2011, the Company obtained a mine permit from Ministry of
Mineral Resources and Energy for the Chandgana Tal coal
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: 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-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">27</font></div>
</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
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<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">14.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">MINERAL PROPERTIES</font>
(cont&#x2019;d...)</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"><font style="font-weight: bold; font-style: italic">
Previously Impaired Properties</font>
(cont&#x2019;d...)</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">
Khavtgai Uul Property, Mongolia</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-family: Times New Roman; font-size: 13px">In
2007, the Company acquired a 100% interest in the Chandgana
Khavtgai property, a coal exploration property consisting of one
license located in the northeast part of the Nyalga coal
basin<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company determined there were
several indicators of potential impairment of the carrying value of
the Chandgana Tal and Khavtgai Uul properties. As result, in
accordance with <font style="font-style: italic">IFRS 6,
Exploration for and Evaluation of Mineral</font> <font style="font-style: italic">Resources</font> and <font style="font-style: italic">IAS 36, Impairment of Assets</font>, at
December 31, 2017, the Company assessed the recoverable amount of
the Chandgana Properties deferred exploration costs and determined
that its value in use is $nil. As at December 31, 2017, the
recoverable amount of $nil resulted in an impairment charge of
$14,733,067 against the value of the deferred exploration costs,
which was reflected on the consolidated statement of operations. As
at and for the year ended December 31, 2019 and 2018, there were no
changes to the impairment assessment and accordingly all costs
remain impaired.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Titan Property, Ontario, Canada</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">The
Company has a 100% interest in the Titan property, a
vanadium-titanium-iron project located in Ontario, Canada. In
January 2010, the Company entered into an option agreement with
Randsburg International Gold 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">(&#x201C;<font style="font-weight: bold">Randsburg</font>&#x201D;)
whereby The Company Resource Corp. had the right to acquire an 80%
interest in the Titan property by paying Randsburg an aggregate of
$500,000 (paid), and by incurring exploration expenditures of
$200,000 by</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">December
31, 2010. Pursuant to the option agreement, Randsburg has the
option to sell the remaining 20% interest in the Titan property to
the Company for $150,000 cash or 400,000 Shares 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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">At
December 31, 2014, due to market conditions, the Company impaired
the value of the property to $nil. On February 10, 2017, the
Company negotiated with Randsburg to acquire the remaining 20%
title interest of Randsburg in the Titan project <font style="background-color: #FFFFFF">by issuing to Randsburg 20,000 Shares
at a value of $4.81 per Share. As there were no benchmark or market
changes from January 1, 2015 to December 31, 2019, the impaired
value of $nil for Titan property remains
unchanged.</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="text-align: justify; margin-left: 12px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
Therefore, the Company recorded an impairment loss of $96,200 on
the acquisition of the remaining title interest in Titan which was
reflected on the consolidated statement of operations and
comprehensive loss during the year ended December 31,
2017.</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="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">15.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES</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">Accounts
payable and accrued liabilities of the Company consist of amounts
outstanding for trade and other purchases relating to development
and exploration, along with administrative activities. The usual
credit period taken for trade purchases is between 30 to 90
days.</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="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="1" rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31, 2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Trade
accounts payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,420,392</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,536,786</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,644,995</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Accrued
liabilities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">250,988</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Lease
liability</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">32,285</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,452,677</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,636,786</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,895,983</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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 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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<font style="font-family: Times New Roman; font-size: 10"><br>
</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">16.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">LEASE
LIABILITY</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">As at
December 31, 2019, the Company recorded $52,818 of lease liability.
The incremental borrowing rate for lease liability initially
recognized as of January 1, 2019 was 10%.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <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">
<font style="font-family: Times New Roman; font-size: 13px">The
Company does not face a significant liquidity risk with regard to
its lease liability. Lease liability is monitored within the
Company treasury function. The non-current lease liability matures
in 2021.</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">17.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">PROVISION
FOR CLOSURE AND RECLAMATION</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="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s closure and reclamation costs consists of costs
accrued based on the current best estimate of mine closure and
reclamation activities that will be required at the Ulaan Ovoo site
upon completion of mining activity. These activities include costs
for earthworks, including land re-contouring and re-vegetation,
water treatment and demolition. The Company&#x2019;s provision for
future site closure and reclamation costs is based on the level of
known disturbance at the reporting date, known legal requirements
and estimates prepared by a third-party specialist.</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="color: #000000; font-family: Times New Roman; font-size: 13px">
It is not currently possible to estimate the impact on operating
results, if any, of future legislative or regulatory
developments.</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="color: #000000; font-family: Times New Roman; font-size: 13px">
Management used a risk-free interest rate of 1.72% (2018 &#x2013;
1.98%, 2017 &#x2013; 2.23%) and a risk premium of 7% (2018 &#x2013;
7%, 2017&#x2013; 7%) in preparing the Company&#x2019;s provision for
closure and reclamation. Although the ultimate amount of
reclamation costs to be incurred cannot be predicted with
certainty, the total undiscounted amount of estimated cash flows
required to settle the Company&#x2019;s estimated obligations is
$444,000 over the next 6 years. The cash expenditures are expected
to occur over a period of time extending several years after the
projected mine closure of the mineral 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: 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: 64%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, beginning
of year</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;">265,239</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">244,323</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">242,374</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accretion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">1,551</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">20,916</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">1,949</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Balance, end of
year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">266,790</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">265,239</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">244,323</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
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<font style="font-style: italic; font-family: Times New Roman; font-size: 13px">
&#xA0;[remainder of this page has been intentionally left
blank]</font></div>
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&#xA0;&#xA0;<font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
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<div id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">29</font></div>
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<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">18.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-weight: bold; font-family: Times New Roman; font-size: 13px">
TAX PROVISION</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="color: #000000; font-family: Times New Roman; font-size: 13px">
The Company&#x2019;s operations are, in part, subject to foreign tax
laws where interpretations, regulations and legislation are complex
and continually changing. As a result, there are usually some tax
matters in question that may, upon resolution in the future, result
in adjustments to the amount of deferred income tax assets and
liabilities, and those adjustments may be material to the
Company&#x2019;s financial position and results of
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: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
A reconciliation of income taxes at statutory rates with the
reported taxes is as follows:</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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Loss for the
year</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">17,513,854</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(18,184,468</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(18,592,981</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="margin-left:0px;"><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; 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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Expected income tax
(recovery)</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,729,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(4,910,000</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: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;">(4,834,000</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Change in
statutory, foreign tax, foreign exchange rates and
other</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;">(529,000</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: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;">389,000</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;">1,885,000</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:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Permanent
differences</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;">(4,861,000</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: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;">3,833,000</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;">450,000</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share issue
cost</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;">(103,000</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: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;">(151,000</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: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;">(25,000</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Adjustment to prior
years provision versus statutory tax returns and expiry of
non-capital losses</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;">1,205,000</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>
<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;">(118,000</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Change in
unrecognized deductible temporary differences</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(441,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">827,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">2,642,000</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;border-bottom:double 4px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Total income tax
expense (recovery)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#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;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:double 4px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</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;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:double 4px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; 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">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
In September 2017, the British Columbia (BC) Government proposed
changes to the general corporate income tax rate to increase the
rate from 11% to 12% effective January 1, 2018 and onwards. This
change in tax rate was substantively enacted on October 26, 2017.
The relevant deferred tax balances have been remeasured&#xA0;to
reflect the increase in the Company's combined Federal and
Provincial (BC) general corporate income tax rate from 26% to
27%.</font></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: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
The significant components of deductible and taxable temporary
differences, unused tax losses and unused tax credits that have not
been included on the consolidated statements of financial position
are as follows:</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0;<font style="font-family: Times New Roman; font-size: 13px"><br></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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">19.&#xA0;</font></div>
<div style="text-align: justify; 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: 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="display: table-cell; width: 24px"><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">Authorized</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">The
authorized share capital consists of an unlimited number of common
shares without par value (the &#x201C;<font style="font-weight: bold">Shares</font>&#x201D;). There are no authorized
preferred 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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
On</font> <font style="color: #000000">August 8, 2018, the Company
completed a common share split on the basis of ten (10) new Shares,
options and warrants for every one (1) old Share, option and
warrant outstanding (the &#x201C;</font><font style="font-weight: bold; color: #000000">Split</font><font style="color: #000000">&#x201D;).&#xA0;</font> <font style="color: #000000; font-family: Times New Roman">All information with
respect to the number of Shares and issuance prices for the time
periods prior to the Split was restated to reflect the Share
Consolidation and the Split.</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">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><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">Equity
issuances</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="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2019</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Private Placements</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"><font style="font-family: Times New Roman">
On September 6, 2019, the Company closed its non-brokered private
placement for $2,600,000 through the issuance of 13,000,0000 Shares
at a price of $0.20 per Share. The Company paid $15,209 and issued
525,000 Shares as a finder&#x2019;s fee valued at $105,000.</font>
$175,000 of the private placement was for prepaid consulting fees
for the Company&#x2019;s executive chairman, of which $35,000 is
included in prepaid expenses as at December 31, 2019 and $41,503
for services. Included in accounts receivable as at December 31,
2019 is $30,497 of subscriptions receivable.</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"><font style="color: #000000">
On October 18, 2019, the Company closed</font> its non-brokered
private placement for gross proceeds of $3,900,000 through the
issuance of 9,750,000 Shares at a price of $0.40 per Share. Also,
the Company issued 654,500 Shares as a finder&#x2019;s fee valued at
$261,800.</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; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Debt Settlement</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">On
October 9, 2019, the Company issued 104,951 Shares with a value of
$43,030, to its directors to settle director fees debts owing to
them.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Exercise of Stock Options and Warrants</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">During
the year ended December 31, 2019, the Company issued 622,500 and
651,430 Shares on the exercise of stock options and warrants
respectively for total proceeds of $424,822<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Share Bonus to Personnel</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">During
the year ended December 31, 2019, <font style="color: #000000; background-color: #FFFFFF">the Company issued
500,000 sign-on bonus Shares with a fair value of $0.23 per Share
to an officer valued at $115,000.</font></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-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Share Compensation for Services</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">On
September 26, 2019, the Company issued 175,000 Shares valued at
$59,500 for consulting services.</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="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2018</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Private Placements</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="color: #000000; font-family: Times New Roman; font-size: 13px">
On August 14, 2018, the Company closed its non-brokered private
placement for gross proceeds of $1,137,197 through the issuance of
4,061,417 units of The Company. Each unit is comprised of one Share
and one Share purchase warrant. Each warrant entitles the holder to
purchase one additional Share of the Company at an exercise price
of $0.40 for a period of three years from the closing of the first
tranche of the placement.</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">31</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><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="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><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">Equity issuances
(cont&#x2019;d&#x2026;)</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"><font style="font-weight: bold; font-style: italic; text-decoration: underline">
During the year ended December 31, 2018</font> <font style="font-family: Times New Roman">(cont&#x2019;d&#x2026;)</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Short Form Prospectus Offering</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"><font style="color: #000000">
On November 22, 2018, the Company closed its bought deal financing
for gross proceeds of $5,520,000. The Company entered into an
agreement with BMO Nesbitt Burns Inc. (&#x201C;</font><font style="font-weight: bold; color: #000000">BMO</font><font style="color: #000000">&#x201D;), under which BMO agreed to buy on a
bought deal basis 12,000,000 Shares, at a price of $0.46 per
share</font><font style="color: #000000; font-family: Times New Roman">.</font>
<font style="color: #000000">The shares were offered by way of a
short form prospectus in each of the provinces and territories of
Canada, except Qu&#xE9;bec. The Company incurred $560,576 in cash
Share issuance costs.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Exercise of Stock Options and Warrants</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">During
the year ended December 31, 2018, the Company issued 87,500 and
3,445,420 Shares on the exercise of stock options and warrants
respectively for total proceeds of $1,362,317<font style="font-family: Times New Roman">.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Share Bonus to Personnel</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">On
October 10, 2018, <font style="background-color: #FFFFFF">the
Company issued 1,000,</font><font style="font-family: Times New Roman; background-color: #FFFFFF">000</font>
<font style="background-color: #FFFFFF">Shares with a fair value of
$0.35 per Share as a bonus to its new CEO included in Salaries and
benefits.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="text-decoration: underline; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
During the year ended December 31, 2017</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Private Placements</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"><font style="font-family: Times New Roman; background-color: #FFFFFF">
On April</font> 12, 2017, the Company closed a non-brokered private
placement involving the issuance of 1,032,500 units (at a price of
$0.40 per unit) for gross proceeds of $413,000. Each unit consists
of one Share and one Share purchase warrant. Each Share purchase
warrant entitles the holder to acquire an additional Share at a
price of $0.50 per Share for a period of five years from the date
of issuance. The Company paid in cash, finder&#x2019;s fees totaling
$1,280.</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">On
September 20, 2017, the Company closed the first tranche of a
non-brokered private placement involving the issuance of
6<font style="font-family: Times New Roman">,</font>679<font style="font-family: Times New Roman">,</font>68<font style="font-family: Times New Roman">0</font> units and 6<font style="font-family: Times New Roman">,</font>290<font style="font-family: Times New Roman">,000</font> special warrants (the
&#x201C;<font style="font-weight: bold">Special
Warrants</font>&#x201D;) at a price of $<font style="font-family: Times New Roman">0</font>.35 per each unit and
Special Warrant and raised gross proceeds of $4,539,390. &#xA0;Each
unit consisted of one Share and one half of one Share purchase
warrant. Each first tranche warrant entitles the holder to purchase
one additional Share at an exercise price of $0.40 for a period of
three years from the date of closing of the first tranche of the
placement. Each Special Warrant was exercisable for one unit at no
additional cost to the holder.<font style="font-family: Times New Roman">&#xA0;</font>In connection with the
first tranche of the placement, the Company paid finder&#x2019;s
fees of $30,606 and issued 870<font style="font-family: Times New Roman">,</font>13<font style="font-family: Times New Roman">0</font> finder&#x2019;s Special
Warrants,</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">which
were exercisable on identical terms as those Special Warrants
issued to subscribers through the first tranche of the
placement.</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">On
October 16, 2017, the Company closed the second and final tranche
of the placement involving the issuance of 1<font style="font-family: Times New Roman">,</font>165<font style="font-family: Times New Roman">,</font>78<font style="font-family: Times New Roman">0</font> units and 4<font style="font-family: Times New Roman">,</font>143<font style="font-family: Times New Roman">,</font>71<font style="font-family: Times New Roman">0</font> Special Warrants at a price
of $0.35 per each unit and Special Warrant and raised gross
proceeds of $1,858,325. Each unit consists of one Share and one
half of one warrant. Each second tranche warrant entitles the
holder to purchase one additional Share of the Company at an
exercise price of $0.40 for a period of three years from the date
of closing of the second tranche of the placement. In connection
with the second tranche of the placement, the Company paid
finder&#x2019;s fees of $56,020 and issued 93<font style="font-family: Times New Roman">,</font>27<font style="font-family: Times New Roman">0</font> finder&#x2019;s Special
Warrants, which were exercisable on identical terms as those
Special Warrants issued to subscribers through the second tranche
of the placement.</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">32</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
total subscription proceeds of $3,651,800, which were raised from
the sale of the Special Warrants under the placement, were held in
an escrow account with the Company&#x2019;s Transfer Agent pending
shareholder approval for the issuance of the Units underlying the
Special Warrants.&#xA0; TSX and shareholder approval for the
issuance of the</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><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">Equity issuances
(cont&#x2019;d&#x2026;)</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"><font style="font-weight: bold; font-style: italic; text-decoration: underline">
During the year ended December 31, 2017</font> <font style="font-style: italic; text-decoration: underline">(</font><font style="font-family: Times New Roman">cont&#x2019;d&#x2026;)</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic">
Private Placements</font> <font style="font-style: italic">(</font><font style="font-family: Times New Roman">cont&#x2019;d&#x2026;)</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Units
underlying the Special Warrants was obtained on December 15,
2017.&#xA0; On December 18, 2017, the Company issued 11<font style="font-family: Times New Roman">,</font>397<font style="font-family: Times New Roman">,</font>11<font style="font-family: Times New Roman">0</font> units underlying an
equivalent number of Special Warrants previously issued under the
placement. &#xA0;On December 18, 2017, the Special Warrants
subscription proceeds, previously held in escrow, were released to
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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
finder&#x2019;s Special Warrants have been valued at $0.35 each
based upon the concurrent financing price of the placement to which
they relate. The Company has recorded the fair value of the
finder&#x2019;s warrants as share issuance costs.</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="background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Debt Settlements</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"><font style="background-color: #FFFFFF">
On January 12, 2017,</font> the Company issued 3,000,000 Shares
with a value of $1,599,000 to Mr. Lee pursuant a Debt Settlement
Agreement with Linx to settle $900,000 of the outstanding balance
owing by the Company to Linx under the Credit Facility. The Company
recorded a loss of $699,000 to account for the difference in the
fair value of the Company&#x2019;s shares on the settlement date and
the debt settled.</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">On June
13, 2017, the Company issued 596,590 units (&#x201C;<font style="font-weight: bold">Debt Settlement Units1</font>&#x201D;) with a
value of $267,869, to certain of its directors and officers to
settle various debts owing to them totalling $238,636 pursuant to
the terms of debt settlement agreements entered with those
directors and officers. Each Debt Settlement Unit1 is comprised of
one Share and one Share purchase warrant of the Company entitling
the holder thereof to purchase, upon exercise of a warrant, one
additional Share at a price of $0.50 per Share for a period of five
years from the date of issuance of the Debt Settlement Units1. The
Company recorded a loss of $29,233 to account for the difference in
the fair value of the Company&#x2019;s shares on the settlement date
and the debt settled.</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">On
December 18, 2017, the Company issued 422,540 units
(&#x201C;<font style="font-weight: bold">Debt Settlement
Units2</font>&#x201D;) with a value of $172,400, to certain of its
directors and officers to settle various debts owing to them
totalling $147,891 pursuant to the terms of debt settlement
agreements entered with those directors and officers. Each Debt
Settlement Unit2 is comprised of one Share and one Share purchase
warrant of the Company entitling the holder thereof to purchase,
upon exercise of a warrant, one additional Share at a price of
$0.40 per Share for a period of three years from the date of
issuance of the Debt Settlement Units2. The Company recorded a loss
of $24,509 to account for the difference in the fair value of the
Company&#x2019;s shares on the settlement date and the implied value
from the debt settled.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Shares Issued for Mineral 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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
February 10, 2017, the Company acquired the remaining 20% title
interest of Randsburg (Note 13) in the patented claims that
comprise the Titan project <font style="background-color: #FFFFFF">by issuing to Randsburg 200,000 Shares
at a value of $0.48 per Share.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Share Bonus to Personnel</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">On
January 12, 2017, <font style="background-color: #FFFFFF">the
Company issued 390</font><font style="font-family: Times New Roman; background-color: #FFFFFF">,000</font>
<font style="background-color: #FFFFFF">Shares with a fair value of
$0.49 per Share as a bonus to its directors, officers and
consultants.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-style: italic; color: #000000; font-family: Times New Roman; font-size: 13px">
Share Compensation for Services</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"><font style="background-color: #FFFFFF">
On December 18, 2017, the Company issued 984,200 units with a fair
value of $0.35 per unit, to Skanderbeg Capital Advisors Inc.
(&#x201C;</font><font style="font-weight: bold; background-color: #FFFFFF">Skanderbeg</font>
<font style="font-family: Times New Roman">(the
&#x201C;</font><font style="font-weight: bold; background-color: #FFFFFF">Skanderbeg</font>
<font style="font-weight: bold; font-family: Times New Roman">Units</font><font style="font-family: Times New Roman">&#x201D;)</font>.<font style="font-family: Times New Roman">&#xA0;</font>The
Company<font style="font-family: Times New Roman">&#xA0;</font><font style="background-color: #FFFFFF">entered into a consulting agreement
with Skanderbeg to explore and evaluate strategic alternatives to
maximize value for The Company&#x2019;s non-core
assets.</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 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">33</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><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="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><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">Equity issuances
(cont&#x2019;d&#x2026;)</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"><font style="font-weight: bold; font-style: italic; text-decoration: underline">
During the year ended December 31, 2017</font><font style="font-weight: bold; font-style: italic">&#xA0;</font><font style="font-style: italic">(</font><font style="font-family: Times New Roman">cont&#x2019;d&#x2026;)</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold; font-style: italic; color: #000000">
Share Compensation for Services</font>
(cont&#x2019;d&#x2026;)</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">Each
<font style="font-family: Times New Roman; background-color: #FFFFFF">Skanderbeg</font>
Unit consists of one Share and one half of one Share purchase
warrant. Each warrant entitles the holder to acquire an additional
Share at a price of $0.40 per Share for a period of three years
from the date of issuance.</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-weight: bold; font-style: italic; font-family: Times New Roman; font-size: 13px">
Exercise of Stock Options and Warrants</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">During
the year ended December 31, 2017, the Company issued
126<font style="font-family: Times New Roman">,</font>87<font style="font-family: Times New Roman">0</font>
and 15<font style="font-family: Times New Roman">0</font>,000
Shares on the exercise of stock options and warrants respectively
for total proceeds of $110,685.</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="display: table-cell; width: 24px"><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">Share-based
compensation plan</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">The
Company has a 20% fixed equity-based compensation plan in place, as
approved by the Company&#x2019;s shareholders on June 2, 2016 (the
&#x201C;<font style="font-weight: bold">2016 Plan</font>&#x201D;),
amended on June 13, 2017 and subsequently amended at the
Company&#x2019;s annual general meeting of shareholders held on
September 12, 2019 (the &#x201C;<font style="font-weight: bold">Amended 2016 Plan</font>&#x201D;). Under the
Amended 2016 Plan the Company may grant stock options, bonus shares
or stock appreciation rights to acquire the equivalent of a maximum
of 14,372,419 of the Company&#x2019;s Common Shares.&#xA0;All stock
options and other share-based awards granted by the Company, or to
be granted by the Company, since the implementation of the Amended
2016 Plan will be issued under, and governed by, the terms and
conditions of the Amended 2016 Plan.&#xA0; The stock option vesting
terms are determined by the Board of Directors on the date of grant
with a maximum term of 10 years.</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"><font style="font-family: Times New Roman">
During the year ended December 31, 2019, the Company granted
3,965,000 incentive stock options to its directors, officers,
employees and consultants.</font> <font style="background-color: #FFFFFF">The options are exercisable at an
exercise prices ranging from $0.20 to $0.44 per Share and expiry
dates ranging from April 1, 2024 to November 15, 2024 and vest at
12.5% per quarter for the first two years following the date of
grant.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">
During the year ended December 31, 2018, the Company granted
4,040,000 incentive stock options to its directors, officers,
employees and consultants.</font> <font style="background-color: #FFFFFF">The options are exercisable at an
exercise prices ranging from $0.22 to $0.65 per Share and expiry
dates ranging from February 20, 2023 to November 14, 2023 and vest
at 12.5% per quarter for the first two years following the date of
grant.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">During
the year ended December 31, 2017, the Company granted 4,080,000
incentive stock options to its directors, officers, employees and
consultants. <font style="font-family: Times New Roman; background-color: #FFFFFF">The
options are exercisable at an exercise prices ranging from $0.33 to
$0.49</font></font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="background-color: #FFFFFF; font-family: Times New Roman; font-size: 13px">
per Share and expiry dates ranging from January 12, 2022 to
November 6, 2022 and vest at 12.5% per quarter for the first two
years following the date of grant.</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">The
following is a summary of the changes in the Company&#x2019;s stock
options from December 31, 2016 to December 31, 2019:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <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">
<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-style: italic; font-family: Times New Roman; font-size: 13px">
[remainder of this page has been intentionally left
blank]</font></div>
<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>
<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">34</font></div>
</div>
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<div id="hdr">
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><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="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d&#x2026;)</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="display: table-cell; width: 24px"><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">Share-based
compensation plan (cont&#x2019;d&#x2026;)</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>
<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%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Number
of Options</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Weighted
Average Exercise Price</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,608,140</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.64</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Granted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,080,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.38</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(312,930</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2.08</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(126,870</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.40</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">8,248,340</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.46</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Granted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,040,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(349,720</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.21</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cancelled</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,815,120</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.45</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Forfeited</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(445,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.04</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(87,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,591,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.34</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Granted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,965,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(315,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.65</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cancelled</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,247,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.32</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Forfeited</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(794,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.54</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(622,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.28</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
September 30, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,577,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">As of
December 31, 2019, the following the Company stock options were
outstanding:</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: 26%;">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercise</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 26%;">
<div style="text-align: center; text-indent: 0px; margin-right: 0px; margin-left: 0px; padding-bottom: 2px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expiry</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 24%;">
<div><font style="text-align: left; vertical-align:bottom;width:5%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:90%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Options
Outstanding</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:5%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></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: center; vertical-align: bottom; width: 80%; display: inline-block; padding-bottom: 2px;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Exercisable</font></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><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; padding-bottom: 2px;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Unvested</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>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Price</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Date</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31,</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">December
31</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.33</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">November
15, 2024</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">87,500</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.44</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">November
1, 2024</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,610,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">201,250</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,408,750</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.20</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">July
29, 2024</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,565,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">391,250</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,173,750</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.21</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">April
1, 2024</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">187,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">312,500</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.65</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">November
14, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.33</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">October
17, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">705,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">940,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">352,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">352,500</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.26</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">October
10, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">550,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.22</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">July
23, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">400,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">400,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">250,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">150,000</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.31</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">May
1, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">150,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">112,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">37,500</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.28</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">April
6, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">862,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,225,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">646,875</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">215,625</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.31</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">February
20, 2023</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">200,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">175,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">25,000</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.35</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">September
1, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">980,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,250,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">980,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.33</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
12, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">805,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,225,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">805,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.49</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">January
12, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">620,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">820,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">620,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.20</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
2, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">990,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,420,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">990,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.50</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
22, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">311,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">30,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.50</font></div>
</td>
<td style="vertical-align:bottom;width:26%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">April
7, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">535,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:26%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">$0.65</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">May
1, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">315,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:26%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,577,500</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,591,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,814,375</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,763,125</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">35</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><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="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">&#xA0;</font><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d...)</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="display: table-cell; width: 72px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">(c)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#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">Share-based
compensation plan (cont&#x2019;d&#x2026;)</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">Share-based
payment expenses resulting from stock options are amortized over
the corresponding vesting periods. During the year ended December
31, 2019, 2018 and 2017, the share-based payment expenses were
calculated using the following weighted average
assumptions:</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:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 36%;">
<div><font style="text-align: left; vertical-align:bottom;width:3%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:94%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Year
ended December 31,</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:3%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Risk-free
interest rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.54</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.77</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1.25</font><font style="text-align: left; color:#000000;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 colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expected
life of options in years</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4.45</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4.40</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4.4</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expected
volatility</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">132.75</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">135.71</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">133.55</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expected
dividend yield</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;">Nil</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><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;">Nil</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><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;">Nil</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expected
forfeiture rate</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">%</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12</font><font style="text-align: left; color:#000000;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 colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Weighted
average fair value of options granted during the
period</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.31</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.32</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.32</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">The
expected volatility used in the Black-Scholes option pricing model
is based on the historical volatility of the Company&#x2019;s
shares<font style="font-family: Times New Roman">.</font> The
expected forfeiture rate is based on the historical forfeitures of
options issued.</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">Share-based
payments charged to operations and assets were allocated between
deferred mineral properties, and general and administrative
expenses. Share-based payments are allocated between being either
capitalized to deferred exploration costs where related to mineral
properties or expensed as general and administrative expenses where
otherwise related to the general operations 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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
year ended December 31, 2019, 2018, and 2017, share-based payments
were recorded as follows:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<br>
</div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="img004.jpg"></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">On July
29, 2019, further to the voluntary forfeiture of share options held
by certain directors, officers, and employees with expiry dates on
April 7, 2020, June 22, 2020, and November 14, 2023, at exercise
prices ranging</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">from
$0.50 to $0.65, the Company granted 1,275,000 new stock options to
such individuals with an expiry date of July 29, 2024 at an
exercise price of $0.20 per Share subject to a two-year vesting
schedule whereby 12.5% per quarter following the date of grant. As
at December 31, 2019, the re-issuing of these options had been
approved by the TSX, but they had not been approved by the
shareholders; consequently, these options were not valued. See Note
27.</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="display: table-cell; width: 24px"><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">Share purchase
warrants</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">The
following is a summary of the changes in The Company&#x2019;s share
purchase warrants from December 31, 2016 to <font style="font-family: Times New Roman">December 31</font>,
2019:</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">36</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">19.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">SHARE CAPITAL</font>
(cont&#x2019;d...)</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="display: table-cell; width: 24px"><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">Share purchase
warrants (cont&#x2019;d...)</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>
<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%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Number
of Warrants</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Weighted
Average Exercise Price</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2016</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">13,480,600</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.47</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">12,453,680</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.41</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(150,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.40</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(26,250</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.70</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">25,758,030</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Issued</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,061,417</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.40</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(3,445,420</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.39</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expired</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(56,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.40</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">27,318,027</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Exercised</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(651,430</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.38</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:76%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Outstanding,
December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">26,666,597</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">0.44</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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"><font style="color: #000000">
On February 15, 2018, the Company issued 500,000 Share purchase
warrants as a part of consideration for mining claims acquisition
(Note 13)</font>. The fair value of $89,944 of the issued warrants
determined using the Black-Scholes option pricing model using the
following assumptions: <font style="font-family: Times New Roman">(1) a risk-free interest rate of
1.9%; (2) warrant expected life of three years; (3) expected
volatility of 116%, and (4) dividend yield of
nil.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
On April 23</font><font style="color: #000000; font-family: Times New Roman">,</font>
<font style="color: #000000">2018, the Company issued 500,000 Share
purchase warrants as a part of consideration for services related
to the Gibellini Project.</font> The fair value of $92,000 of the
issued warrants determined using the Black-Scholes option pricing
model using the following assumptions: <font style="font-family: Times New Roman">(1) a risk-free interest rate of 2%;
(2) warrant expected life of three years; (3) expected volatility
of 97.4%, and (4) dividend yield of nil.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As of
<font style="font-family: Times New Roman">December 31</font>,
2019, the following The Company share purchase warrants were
outstanding:</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:12%;">
<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; padding-bottom: 2px;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></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:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 24%;">
<div><font style="text-align: left; vertical-align: bottom; width: 5%; 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-size:13px;font-family:Times New Roman;color:#000000;">Number
of warrants</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 5%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Exercise
Price</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: center; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Expiry
Date</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">&#xA0;at
December 31, 2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">at
December 31, 2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.50</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
13, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">596,590</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">596,590</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.50</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">April
12, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,032,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,032,500</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">January
13, 2022</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">499,990</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">499,990</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.44</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">August
29, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,013,670</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,013,670</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">August
13, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">198,237</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">198,237</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">July
6, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,863,180</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,863,180</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
2, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,500,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">7,500,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.30</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">April
23, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">100,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.50</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">February
15, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">500,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">January
25, 2021</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">650,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">650,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">December
18, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">211,250</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">211,250</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.70</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">November
13, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">625,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">625,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">October
16, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,533,020</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,533,020</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center"><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">
$</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">0.70</font><font style="color: rgb(0, 0, 0); font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">September
30, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,112,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,112,000</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.40</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">September
20, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,983,490</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,534,920</font><font style="text-align: left; color:#000000;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:12%;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
$0.60</font></div>
</font><font style="text-align: left; vertical-align:bottom;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">June
24, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,147,670</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,147,670</font><font style="text-align: left; color:#000000;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:12%;border-bottom:solid 2px #000000;">
<div style="text-align: center; margin-left:0px;"><font style="text-align: left; padding-bottom:2px;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="color: #000000; font-family: Times New Roman; font-size: 13px">
<br></font></div>
</font><font style="text-align: left; padding-bottom:2px;vertical-align:bottom;display:inline-block;">$0.50</font></div>
</td>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">May
22, 2020</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,200,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,200,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:12%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="text-align: left; padding-bottom:2px;vertical-align:bottom;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
</font><font style="text-align: left; padding-bottom:2px;vertical-align:bottom;display:inline-block;"><br></font></div>
</td>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">26,666,597</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">27,318,027</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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><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%; 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">37</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">20.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CAPITAL
RISK MANAGEMENT</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">Management
considers its capital structure to consist of share capital, share
purchase options and warrants. The Company manages its capital
structure and makes adjustments to it, based on the funds available
to, and required by the Company in order to support the
acquisition, exploration and development of mineral properties. The
Board of Directors does not establish quantitative returns on
capital criteria for management. In order to facilitate the
management of its capital requirement, the Company prepares annual
expenditure budgets that are updated as necessary depending on
various factors. The annual and updated budgets are approved by the
Board of Directors.</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">The
properties, to which the Company currently has an interest in, are
in the exploration stage; as such, The Company is dependent on
external financing to fund its activities. In order to carry out
the planned exploration and development and pay for administrative
costs, The Company will spend its existing working capital and
raise additional amounts as needed. There were no changes in
managements approach to capital management during the year ended
December 31, 2019. Neither the Company nor its subsidiaries are
subject to externally imposed capital 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="display: table">
<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">21.&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">FAIR
VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS</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-weight: bold; font-family: Times New Roman; font-size: 13px">
Fair Value Measurements</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-weight: bold; font-family: Times New Roman; font-size: 13px">
Fair value hierarchy</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">Fair
value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value hierarchy
establishes three levels to classify the inputs to valuation
techniques used to measure fair value. The Company utilizes a fair
value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value as follows:</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">Level 1
&#x2013; quoted prices (unadjusted) in active markets for identical
assets or liabilities;</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">Level 2
&#x2013; inputs are quoted prices in markets that are not active,
quoted prices for similar assets or liabilities in active markets,
inputs other than quoted prices that are observable for the asset
or liability (for example, interest rate and yield curves
observable at commonly quoted intervals, forward pricing curves
used to value currency and commodity contracts and volatility
measurements used to value option contracts), or inputs that are
derived principally from or corroborated by observable market data
or other means;and</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">Level 3
&#x2013; inputs for the asset or liability that are not based on
observable market data (unobservable inputs).</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">The
fair value hierarchy gives the highest priority to Level 1 inputs
and the lowest priority to Level 3 inputs. The following table sets
forth The Company&#x2019;s financial assets measured at fair value
by level within the fair value hierarchy<font style="font-family: Times New Roman">.</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>
<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%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Level
1</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Level
2</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Level
3</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Financial
assets</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash
and cash equivalents, December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash
and cash equivalents, December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash
and cash equivalents, December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Categories of financial instruments</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">The
Company considers that the carrying amount of all its financial
assets and financial liabilities measured at amortized cost
approximates their fair value due to their short term nature.
Restricted cash equivalents approximate fair value due to the
nature of the instrument. The Company does not offset financial
assets with financial liabilities. There were no transfers between
Level 1, 2 and 3 for the year ended December 31, 2019.</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">&#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">38</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font>
<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-family: Times New Roman; font-size: 13px">The
Company&#x2019;s financial assets and financial liabilities are
categorized as follows:</font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">21.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">FAIR VALUE MEASUREMENTS AND FINANCIAL
INSTRUMENTS</font> (cont&#x2019;d...)</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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">
Categories of financial instruments</font>
(cont&#x2019;d...)</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: 64%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">December 31,
2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fair
value through profit or loss</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Cash</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;">3,017,704</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,304,097</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,100,608</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Fair
value through other comprehensive income</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Marketable
securities</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">205,600</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Amortized
cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Receivables</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;">246,671</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">36,399</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">34,653</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Restricted
cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,298,875</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,374,996</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,375,361</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Amortized
cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Accounts payable
and accrued 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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,420,392</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,636,786</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,895,983</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Lease
liability</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">52,818</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,473,210</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,636,786</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,895,983</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">22.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">FINANCIAL
RISK MANAGEMENT DISCLOSURES</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="display: table-cell; width: 48px"><font style="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: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Liquidity
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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Liquidity
risk is the risk that an entity will be unable to meet its
financial obligations as they fall due. The Company manages
liquidity risk by preparing cash flow forecasts of upcoming cash
requirements. As at December 31, 2019, the Company had a cash and
cash equivalents balance of $3,017,704 (December 31,
2018<font style="font-family: Times New Roman">&#xA0;</font>&#x2013;
$5,304,097, December 31, 2017<font style="font-family: Times New Roman">&#xA0;</font>&#x2013; $4,100,608). As
at December 31, 2019 the Company had accounts payable and accrued
liabilities of $2,452,677 (December 31, 2018<font style="font-family: Times New Roman">&#xA0;</font>- $1,636,786, December
31, 2017<font style="font-family: Times New Roman">&#xA0;</font>-
$1,895,983), which have contractual maturities of 90 days or
less.</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">The
Company has a planning and budgeting process in place by which it
anticipates and determines the funds required to support normal
operation requirements as well as the growth and development of its
mineral property interests. The Company coordinates this planning
and budgeting process with its financing activities through the
capital management process in normal circumstances.</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">The
following table details the Company&#x2019;s current and expected
remaining contractual maturities for its financial liabilities with
agreed repayment periods. The table is based on the undiscounted
cash flows of financial liabilities.</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: 64%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">0 to 6
months</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">6 to 12
months</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align: bottom; width: 12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Accounts
payable and accrued liabilities</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;As
at December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,452,677</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,452,677</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;As
at December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,636,786</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,636,786</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">&#xA0;&#xA0;&#xA0;As
at December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,895,983</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,895,983</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Lease
liability as at December 31,2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">16,143</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">16,143</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">32,285</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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="display: table-cell; width: 48px"><font style="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: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Credit
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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Credit
risk is the risk that one party to a financial instrument will fail
to discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and cash equivalents, restricted cash
equivalents and receivables, net of allowances. The carrying amount
of financial assets included on the statements of financial
position represents the maximum credit exposure.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<br>
</div>
<br>
<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">39</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">22.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">FINANCIAL RISK MANAGEMENT DISCLOSURES</font>
(cont&#x2019;d...)</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="display: table-cell; width: 48px"><font style="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: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">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: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(i)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Interest rate
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="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company&#x2019;s cash and cash equivalents and restricted cash
equivalents primarily include highly liquid investments that earn
interest at market rates that are fixed to maturity.&#xA0;Due to
the short<font style="font-family: Times New Roman">&#x2010;</font>
term nature of these financial instruments, fluctuations in market
rates do not have significant impact on the fair values of the
financial instruments as of December 31, 2019. The Company manages
interest rate risk by maintaining an investment policy that focuses
primarily on preservation of capital and liquidity.</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: 144px; margin-right: 0px; text-indent: -120px">
<font style="font-family: Times New Roman; font-size: 13px">(ii)&#xA0;Foreign
currency 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="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company is exposed to foreign currency risk to the extent that
monetary assets and liabilities held by the Company are not
denominated in Canadian dollars.</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company has exploration and development projects in Mongolia and
Bolivia and undertakes transactions in various foreign currencies.
The Company is therefore exposed to foreign currency risk arising
from transactions denominated in a foreign currency and the
translation of financial instruments denominated in US
dollars<font style="font-family: Times New Roman">,</font>
Mongolian tugrik, and Bolivian boliviano into its functional and
reporting currency, the Canadian dollar.</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: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Based
on the above, net exposures as at December 31, 2019, with other
variables unchanged, a 10% (December 31, 2018 &#x2013; 10%, December
31, 2017 &#x2013; 10%) strengthening (weakening) of the Canadian
dollar against the Mongolian tugrik would impact net loss with
other variables unchanged by $144,000. A 10% strengthening
(weakening) of the Canadian dollar against the Bolivian boliviano
would impact net loss with other variables unchanged by
$2<font style="font-family: Times New Roman">,000</font>. A 10%
strengthening (weakening) of the US dollar against the Canadian
dollar would impact net loss with other variables unchanged by
$60,000. The Company currently does not use any foreign exchange
contracts to hedge this currency 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: 24px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">(ii)&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Commodity and
equity price 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="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="font-family: Times New Roman">Commodity price risk is defined as
the potential adverse impact on earnings and economic value due to
commodity price movements and volatilities.</font> Commodity prices
fluctuate on a daily basis and are affected by numerous factors
beyond the Company&#x2019;s control. The supply and demand for these
commodities, the level of interest rates, the rate of inflation,
investment decisions by large holders of commodities including
governmental reserves and stability of exchange rates can all cause
significant fluctuations in prices. Such external economic factors
are in turn influenced by changes in international investment
patterns and monetary systems and political developments.
<font style="font-family: Times New Roman">The Company is also
exposed to price risk with regards to equity prices. Equity price
risk is defined as the potential adverse impact on the
Company&#x2019;s earnings due to movements in individual equity
prices or general movements in the level of the stock
market.</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="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
Company closely monitors commodity prices, individual equity
movements and the stock market to determine the appropriate course
of action to be taken by the Company. Fluctuations in value may be
significant.</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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">23.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">RELATED
PARTY DISCLOSURES</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">During
the year ended December 31, 2019, the Company had related party
transactions with the following companies, related by way of
directors and key management personnel:</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: 24px">
<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">Linx Partners Ltd.,
a private company controlled by John Lee, Director, CEO and
Executive Chairman of Prophecy, provides management and consulting
services to the Company.</font></div>
</div>
</div>
<div style="display: table; margin-left: 24px">
<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">MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, Director of The
Company, provides consulting services to 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 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">40</font></div>
</div>
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<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">23.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">RELATED PARTY DISCLOSURES</font>
(cont&#x2019;d...)</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: 24px">
<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">Sophir Asia Ltd., a
private company controlled by Masa Igata, Director of The Company,
provides consulting services to 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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">A
summary of related party transactions by related party is as
follows:</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="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 36%;">
<div><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 94%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Year
Ended December 31,</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Related
parties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Directors
and officers</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,685,242</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,265,152</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">307,425</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Linx
Partners Ltd.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">371,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">401,044</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">363,781</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">MaKevCo
Consulting Inc.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,400</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,200</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">23,600</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Sophir
Asia Ltd.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,600</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,100</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,700</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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">A
summary of the transactions by nature among the related parties is
as follows:</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:64%;">
<div style="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 36%;">
<div><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 94%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Year
Ended December 31,</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Related
parties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Consulting
and management fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">218,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">268,456</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">247,525</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Directors'
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">103,805</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">70,378</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,600</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Mineral
properties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,171,585</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">631,610</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">201,875</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Salaries</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">603,352</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">736,052</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">204,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">As at
December 31, 2019, amounts due to related parties were $30,533
(December 31, 2018 - $4,634), (December 31, 2017 - $160,503) and
included in accounts payable and accrued liabilities.</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">During
the years ended December 31, 2012 and 2013, the Company shared
administrative assistance, office space, and management with Nickel
Creek Platinum Corp. (&#x201C;<font style="font-weight: bold">Nickel</font>&#x201D;) pursuant to a Service
Agreement dated January 1, 2012, consisting of fixed monthly fees
of $40,000. During the year ended December 31, 2018, the Company
received $50,000 as a debt settlement in satisfaction of an amount
owing from Nickel for services rendered to Nickel and expenses
incurred on behalf of Nickel, which was reflected on the
consolidated statement of 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="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">24.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">KEY
MANAGEMENT PERSONNEL COMPENSATION</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">Key
management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of the Company, including directors 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>
<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="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;">
<div><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 94%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Year
Ended December 31,</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Key
Management Personnel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2019</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2018</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">2017</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Salaries
and short term benefits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">696,751</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">775,064</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">204,506</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Directors'
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">103,805</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">70,378</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,600</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">Share-based
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">431,037</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">621,339</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">596,232</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,231,593</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,466,781</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">861,338</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<br>
</div>
<br>
<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">41</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">25.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SUPPLEMENTAL
CASH FLOW 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>
<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="margin-left: 0px; padding-bottom: 2px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align: bottom; width: 36%;">
<div><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; padding-bottom: 2px;">&#xA0;</font><font style="text-align: center; vertical-align: bottom; width: 94%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">
<div><font style="font-size:13px;font-family:Times New Roman;color:#000000;">Year
Ended December 31</font></div>
</font><font style="text-align: left; vertical-align: bottom; width: 3%; display: inline-block; border-bottom: 2px solid rgb(0, 0, 0);">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<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%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<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%;border-bottom:solid 2px #000000;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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Supplementary
information</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: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Interest
paid</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;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">21,066</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Non-Cash Financing
and Investing Activities</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued to
pay credit facility</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">900,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued on
acquisition of mineral property</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">96,200</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Bonus shares and
shares</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">115,000</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">190,320</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares for
services</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">241,003</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued to
settle debt</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">43,030</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">386,527</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Shares issued
recorded as prepaid expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">35,000</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Subscriptions
receivable</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">30,497</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Warrants issued for
mineral property</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">181,944</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Depreciation
included in mineral property</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">3,487</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">27,387</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">216,653</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Equipment
expenditures included in accounts payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">472,213</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">489,890</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">580,634</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Fair value
loss/gain on marketable securities</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,160</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">12,160</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Mineral property
expenditures included in accounts payable</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,252,796</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">1,067,747</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">753,248</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:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Share-based
payments capitalized in mineral properties</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">119,028</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">205,057</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">227,979</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Reclassification of
contributed surplus on exercise of options</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">153,845</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">15,350</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">14,567</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Reclassification of
contributed surplus on exercise of warrants</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">28,478</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">132,453</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">10,650</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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="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="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">26.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">COMMITMENTS</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">Except
as disclosed elsewhere in these financial statements, the Company
has the following financial obligations in the ordinary course of
business:</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:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<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%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">2021</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">2022</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">Total</font></div>
</font><font style="text-align: left; vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="margin-left:0px;"><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; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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><font style="text-align: left; vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="text-align: center; vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">Office Lease
Obligations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">45,489</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">24,574</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,540</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">79,603</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="margin-left:0px;"><font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">45,489</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">24,574</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">9,540</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">79,603</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">27.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">CONTINGENCIES</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-style: italic; font-family: Times New Roman; font-size: 13px">
ASC tax claim</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">On
January 2, 2015, the Company acquired ASC Holdings Limited and ASC
Bolivia LDC (which together, hold ASC Bolivia LDC Sucursal Bolivia,
which in turn, held Apogee Silver Ltd.&#x2019;s (&#x201C;<font style="font-weight: bold">Apogee</font>&#x201D;) joint venture interest in
the Pulacayo Project) and Apogee Minerals Bolivia S.A. Pursuant to
the terms of the Agreement, the Company agreed to assume all
liabilities of these former Apogee subsidiaries, including legal
and tax liabilities associated with the Pulacayo Project.&#xA0;
During Apogee&#x2019;s financial year ended June 30, 2014, it
received notice from the Servicio de Impuestos Nacionales, the
national tax authority in Bolivia, that ASC Bolivia LDC Sucursal
Bolivia, now the Company&#x2019;s wholly-owned subsidiary, owed
approximately Bs42,000,000 in taxes, interest and penalties
relating to a historical tax liability in an amount originally
assessed at approximately $760,000 in 2004, prior to Apogee
acquiring the subsidiary in 2011.&#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: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.&#xA0; The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority&#x2019;s assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court&#xA0;that
among other things, declared null and void the
previous</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">Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.</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">42</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: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">27.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">CONTINGENCIES</font>
(cont&#x2019;d...)</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"><font style="font-style: italic">
ASC tax claim</font> (cont&#x2019;d...)</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="color: #000000; font-family: Times New Roman; font-size: 13px">
On November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary as&#xA0;not
proven.</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="color: #000000; font-family: Times New Roman; font-size: 13px">
The Resolution is final and binding. Hence neither the Company nor
the Company&#x2019;s Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.</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">During
the year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.</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-style: italic; font-family: Times New Roman; font-size: 13px">
Red Hill tax claim</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">During
the year ended December 31, 2014, the Company&#x2019;s wholly-owned
subsidiary, Red Hill Mongolia LLC (&#x201C;<font style="font-weight: bold">Red Hill</font>&#x201D;) was issued a letter
from the Sukhbaatar District Tax Division notifying it of the
results of the Sukhbaatar District Tax Division&#x2019;s VAT
inspection of Red Hill&#x2019;s 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill&#x2019;s claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division&#x2019;s findings as the tax assessment appeared to the
Company to be unfounded.<font style="font-family: Times New Roman">&#xA0;</font> The Company disputed
the Sukhbaatar District Tax Division&#x2019;s assessment and
submitted a complaint to the Capital City Tax Tribunal<font style="font-family: Times New Roman">.&#xA0;&#xA0;</font>On March 24,
2015, the Capital City Tax Tribunal resolved to refer the matter
back to the Sukhbaatar District Tax Division for revision and
separation of the action between confirmation of Red Hill&#x2019;s
VAT credit, and the imposition of the penalty/deduction for the tax
assessment. Due to the uncertainty of realizing the VAT balance,
the Company has recorded an impairment charge for the full VAT
balance in the year ended December 31, 2015.</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"><font style="font-family: Times New Roman">
In</font> <font style="color: #000000">June 2019, the Company
received a positive resolution issued from the City tax tribunal
regarding the Company&#x2019;s VAT dispute with the Mongolia tax
office. The resolution, which is binding and final, affirmed Red
Hill&#x2019;s outstanding VAT credit of 1.169 billion MNT resulted
from past mining equipment purchases.</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="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">
The VAT credit can be used to offset Red Hill&#x2019;s taxes and
royalty payments; or be refunded in cash by Mongolia&#x2019;s
Ministry of Finance within 12 to 24 months processing time.</font>
<font style="font-family: Times New Roman">Due to the credit risk
associated with the VAT credit, the Company has provided a full
valuation provision against the balance.</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">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">28.&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">EVENTS
AFTER THE REPORTING DATE</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="color: #000000; font-family: Times New Roman; font-size: 13px">
The following events occurred subsequent to December 31,
2019:</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: 19px">
<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">Effective January
6, 2020<font style="font-family: Times New Roman">,</font> the
Company engaged Mr. Ken Cotiamco to provide investor relations and
shareholder communications services by entering into a consulting
agreement whereby Ken Cotiamco would receive from the Company
renumeration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
Share for a term of five years expiring on January 6,
2025;</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: 19px">
<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">Pursuant to the
Company&#x2019;s Share-Based Compensation Plan, on January 6, 2020,
the Company issued an aggregate of 1,601,000 Shares as bonus
payments to certain directors, officers, employees and consultants
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="display: table; margin-left: 19px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">On March 16, 2020,
the Company held its Special Meeting of Shareholders. The Company
received shareholder approval of the following:</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: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">changing its name
to Silver Elephant Mining Corp.;</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>
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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">43</font></div>
</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;SILVER ELEPHANT MINING
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;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;(formerly
Prophecy Development Corp.)</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Notes
to Annual Consolidated Financial Statements</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">For the
years ended December 31, 2019, 2018 and 2017</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">(Expressed in
Canadian Dollars)</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">&#xA0;</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
&#xA0;&#xA0; <font style="font-family: Times New Roman; font-size: 13px"><br></font></div>
<div style="display: table">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">28.</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">EVENTS AFTER THE REPORTING DATE</font>
(cont&#x2019;d...)</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: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">consolidation of
the Company&#x2019;s issued and outstanding shares at a ratio
between one (1) new Common Share for every five (5) to ten (10) old
Common Shares (the &#x201C;2020 Consolidation&#x201D;). The effective
date of the Name Change and the 2020 Consolidation would be
determined at a later date by the Board of the Company;
and</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: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px">&#x27A2;&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company&#x2019;s Share-Based
Compensation Plan.</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: 28px">
<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">On March
16<font style="font-family: Times New Roman">,</font> 2020, the
Company amended its Articles and changed its name to &#x201C;Silver
Elephant Mining Corp.&#x201D;</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<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">On March 19, 2020,
the Company changed its&#x2019; symbol on the TSX from PCY to
&#x201C;ELEF&#x201D;.</font></div>
</div>
</div>
<div style="display: table; margin-left: 28px">
<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">On March 23, 2020,
the Company changed its&#x2019; symbol on the OTCQX from PRPCF to
&#x201C;SILEF&#x201D;.</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: 28px">
<div style="display: table-row">
<div style="display: table-cell; width: 24px"><font style="font-family: Times New Roman; font-size: 13px"><font style="color: #000000">&#x25CF;</font>&#xA0;</font></div>
<div style="text-align: justify; display: table-cell"><font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company&#x2019;s business or results of
operations at this time.</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">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<br>
</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>
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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">44</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: 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"><a name="_Toc310264297">&#xA0;</a><img src="silef_mda000.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Formerly Prophecy
Development Corp.)</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 24px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Currency expressed
in Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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>
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<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
CONTENTS</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">INTRODUCTION</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">YEAR
2018 HIGHLIGHTS AND SIGNIFICANT EVENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PROPERTY
SUMMARY</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10<br>
</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">5</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">SELECTED
ANNUAL FINANCIAL INFORMATION</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">41<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">SUMMARY
OF QUARTERLY RESULTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">RESULTS
OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2018</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">8</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">RESULTS
OF OPERATIONS FOR THE FOURTH QUARTER 2018</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">45</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PROPOSED
TRANSACTIONS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">46</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">LIQUIDITY
AND CAPITAL RESOURCES</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">46</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
11</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
CONTINGENCIES</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">49</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
12</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
ENVIRONMENTAL REGULATIONS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">50<br>
</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
13</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">
RELATED PARTY DISCLOSURES</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">50<br>
</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">14</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CRITICAL
ACCOUNTING ESTIMATES AND JUDGMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">52<br>
</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">15</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">ACCOUNTING
CHANGES AND RECENT ACCOUNTING PRONOUNCEMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">55</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">16</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">FINANCIAL
INSTRUMENTS AND RELATED RISKS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">55</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">17</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">RISKS
AND UNCERTAINTIES</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">58</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">18</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">DISCLOSURE
CONTROLS AND PROCEDURES</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">58</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">19</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">59</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">20</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">DISCLOSURE
OF OUTSTANDING SHARE DATA</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">60<br>
</font></div>
</td>
</tr><tr style="background-color: #cceeff">
<td style="vertical-align: bottom; width: 7%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">21</font></div>
</td>
<td style="vertical-align: bottom; width: 79%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">OFF-BALANCE
SHEET ARRANGEMENTS</font></div>
</td>
<td style="vertical-align: bottom; width: 14%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">60<br>
</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #993300; font-size: 13px; font-family: Times New Roman">1.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
INTRODUCTION</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">This
Management&#x2019;s Discussion and Analysis (&#x201C;<font style="font-weight: bold">MD&amp;A</font>&#x201D;) of Silver Elephant
Mining Corp. <font style="color: #000000">(formerly &#x201C;Prophecy
Development Corp.&#x201D;)</font> and its subsidiaries (the
&#x201C;<font style="font-weight: bold">Company</font>&#x201D;)
provides analysis of the Company&#x2019;s financial results for the
year ended December 31, 2019. The following discussion of
performance, financial condition and future prospects should be
read in conjunction with the accompanying December 31, 2019 audited
consolidated financial statements and the notes to those financial
statements <font style="color: #000000">(the
&#x201C;</font><font style="font-weight: bold; color: #000000">Annual Financial
Statements</font><font style="color: #000000">&#x201D;)</font>,
prepared in accordance with International Financial Reporting
Standards (&#x201C;<font style="font-weight: bold">IFRS</font>&#x201D;), as issued by the
International Accounting Standards Board, and the Company&#x2019;s
SEC Form 20-F Annual Report (&#x201C;<font style="font-weight: bold">AR</font>&#x201D;) for the year ended December
31, 2019, all of which are available <font style="color: #000000">under the Company&#x2019;s SEDAR profile at</font>
<font style="color: #0000ff">www.SEDAR.com</font>. This MD&amp;A is
current as of March 30, 2020, was reviewed, approved, and
authorized for issue by the Company&#x2019;s Board of
Directors.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Financial
information is expressed in Canadian dollars, unless stated
otherwise. Readers are encouraged to read the cautionary note
contained herein regarding such forward-looking statements.
<font style="color: #000000">Information on risks associated with
investing in the Company&#x2019;s securities as well as information
about mineral resources and reserves under National Instrument
43-101 &#x2013;</font> <font style="font-style: italic; color: #000000">Standards of Disclosure for
Mineral Projects</font> <font style="color: #000000">(&#x201C;</font><font style="font-weight: bold; color: #000000">NI 43-101</font><font style="color: #000000">&#x201D;) are contained in the Company&#x2019;s most
recently filed AR which is available on the Company&#x2019;s website
at</font> <font style="color: #0000ff; text-decoration: underline">www.silverelef.com</font><font style="color: #0000ff">&#xA0;</font><font style="color: #000000">or
on SEDAR at</font> <font style="color: #0000ff; text-decoration: underline">www.sedar.com</font><font style="color: #0000ff">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Description
of Business</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The Company amalgamated under the laws of the
Province of British Columbia, Canada. The Company&#x2019;s Common
Shares (the &#x201C;</font><font style="font-weight: bold; color: #000000">Shares</font><font style="color: #000000">&#x201D;, and each, a &#x201C;</font><font style="font-weight: bold; color: #000000">Share</font><font style="color: #000000">&#x201D;) are listed for trading on the Toronto
Stock Exchange (the &#x201C;</font><font style="font-weight: bold; color: #000000">TSX</font><font style="color: #000000">&#x201D;) under the symbol &#x201C;ELEF&#x201D;, the
OTCQX under the symbol &#x201C;SILEF&#x201D; and</font> the Frankfurt
Stock Exchange under the symbol &#x201C;1P2N&#x201D;.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company is an
exploration stage company specializing in mine permitting,
construction, and operations. The Company holds a mining joint
venture interest in the Pulacayo Paca silver-lead-zinc property
located in Bolivia (the &#x201C;<font style="font-weight: bold">Pulacayo Project</font>&#x201D;). The Company
also has a 100% interest in two vanadium projects in North America
including the Gibellini vanadium project which is comprised of the
Gibellini and Louie Hill vanadium deposits and associated claims
located in the State of Nevada, USA (the &#x201C;<font style="font-weight: bold">Gibellini Project</font>&#x201D;) and the Titan
vanadium-titanium-iron<font style="color: #333333">&#xA0;</font>project comprised of the Titan
vanadium-titanium-iron deposit and related claims located in the
Province of Ontario, Canada (the &#x201C;<font style="font-weight: bold">Titan Project)</font>. The Company also own a
100% interest in three coal properties in Mongolia which are the
Ulaan Ovoo property, the Khavtgai Uul property and the Chandgana
Tal property. In addition, the Company also has the land use right
and construction license for the Chandgana power plant
project.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
business strategy focus is to develop the Pulacayo Project and make
the Company&#x2019;s Gibellini Project the first operating primary
vanadium mine in North America. The vanadium resources are part of
a portfolio of projects the Company is building, through their
diversity of locations, commodities and products, reducing the
Company&#x2019;s exposure to adverse regulation and political
climates and changes in specific commodity prices.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A diverse portfolio
of projects from which a variety of minerals are mined and sold
provides multiple opportunities to maintain revenue and is one
facet of the Company&#x2019;s efforts to attain the Company&#x2019;s
ultimate objective of stable positive cash flow.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">3</font></div>
</div>
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<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">General
Corporate Information:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr>
<td style="vertical-align: top; width: 53%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">At December 31, 2019 and March 30, 2020, The
Company had: (i) 121,299,508 and 122,915,508 Shares issued and
outstanding respectively; (ii) 9</font><font style="font-variant: small-caps; color: #000000">,577,500</font><font style="font-variant: small-caps; color: #000000; font-size: 13px; font-family: Times New Roman">&#xA0;</font><font style="color: #000000">and
9,442,500 stock options for Shares outstanding respectively; (iii)
26,666,597 Share purchase warrants for Shares
outstanding.</font></font></div>
</td>
<td style="width: 1%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 46%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Transfer Agent and Registrar</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Computershare
Investor Services Inc.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3<font style="vertical-align: top; font-size: 70%">rd</font> Floor, 510 Burrard
Street,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Vancouver, BC,
Canada, V6C 3B9</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Tel: +1 (604)
661-9400</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 53%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="width: 1%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 46%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 53%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Investor and Contact Information</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">All financial
reports, news releases and corporate information can be accessed by
visiting the Company&#x2019;s website at: <font style="color: #0000ff">www.silverelef.com</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Investor &amp;
Media requests and queries:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Email: <font style="color: #0000ff">ir@silverelef.com</font></font></div>
</td>
<td style="width: 1%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 46%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
Head Office and</font> Registered Office</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Suite 1610 - 409
Granville Street,</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Vancouver, BC,
Canada, V6C 1T2</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Tel: +1 (604)
569-3661</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Directors
and Officers</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at the date of
this MD&amp;A, The Company&#x2019;s directors and officers were as
follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Directors</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Officers</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">John
Lee, Executive Chairman</font></div>
</td>
<td style="vertical-align: bottom; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Michael
Doolin, Chief Executive Officer &amp; Chief Operating
Officer</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Greg
Hall</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Irina
Plavutska, Chief Financial Officer</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Masa
Igata</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Ronald
Espell, Vice-President, Environment and Sustainability</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Marc
Leduc</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Danniel
Oosterman, Vice-President, Exploration</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Ronald
Clayton</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Joaquin
Merino-Marquez, Vice-President, South American
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Audit Committee</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Corporate Governance and Compensation Committee</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Greg Hall
(Chair)</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Greg Hall
(Chair)</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Masa
Igata</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Masa
Igata</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 33%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Marc
Leduc</font></div>
</td>
<td style="vertical-align: top; width: 67%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Marc
Leduc</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Qualified
Persons</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Danniel Oosterman,
B.Sc.(Hons), P.Geo., is a &#x201C;qualified person&#x201D; as defined
under NI 43-101. Mr. Oosterman serves as the Company&#x2019;s
Vice-President, Exploration and qualified person. He is not
considered independent of the Company given the large extent that
his professional time is dedicated solely to the Company. Mr.
Oosterman has reviewed and approved the technical and scientific
disclosure regarding the mineral properties of the Company
contained in this MD&amp;A.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
2.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
This MD&amp;A contains&#x201D; forward-looking information&#x201D;
and &#x201C;forward-looking statements&#x201D; within the meaning of
applicable Canadian securities legislation concerning anticipated
developments in the Company&#x2019;s continuing and future
operations in the United States, Canada, Bolivia and Mongolia, and
the adequacy of the Company&#x2019;s financial resources and
financial projections. Such forward-looking statements include but
are not limited to statements regarding the permitting,
feasibility, plans for development of the Gibellini Project;
development of the Titan Project; development of the Pulacayo
project; development and production of electricity from the
Company&#x2019;s Chandgana power plant, including finalizing of any
power purchase agreement; the likelihood of securing project
financing; estimated future coal production at the Chandgana
project; and coal production at the Ulaan Ovoo coal property and
the Chandgana project, and other information concerning possible or
assumed future results of operations of the Company. See in
particular, Section 4 &#x2013; Property Summary.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">4</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Forward-looking statements in this document are frequently
identified by words such as &#x201C;expects&#x201D;,
&#x201C;anticipates&#x201D;, &#x201C;intends&#x201D;,
&#x201C;plans&#x201D;, &#x201C;believes&#x201D;,
&#x201C;estimates&#x201D;, &#x201C;potentially&#x201D; or similar
expressions, or statements that events, conditions or results
&#x201C;will&#x201D;, &#x201C;may&#x201D;, &#x201C;would&#x201D;,
&#x201C;could&#x201D;, &#x201C;should&#x201D; occur or are &#x201C;to
be&#x201D; achieved, and statements related to matters which are not
historical facts. Information concerning management&#x2019;s
expectations regarding the Company&#x2019;s future growth, results
of operations, performance, business prospects and opportunities
may also be deemed to be forward-looking statements, as such
information constitutes predictions based on certain factors,
estimates and assumptions subject to significant business,
economic, competitive and other uncertainties and contingencies,
and involve known and unknown risks which may cause the actual
results, performance, or achievements to be different from future
results, performance, or achievements contained in such
forward-looking statements made by the Company.</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 style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
In making the forward-looking statements in this MD&amp;A, the
Company has made several assumptions that it believes are
appropriate, including, but not limited to assumptions that: all
required third party contractual, regulatory and governmental
approvals will be obtained for the development, construction and
production of the Company&#x2019;s properties and the Chandgana
power plant; there being no significant disruptions affecting
operations, whether due to labour disruptions or other causes;
currency exchange rates being approximately consistent with current
levels; certain price assumptions for vanadium, silver, other
metals and coal, prices for and availability of fuel, parts and
equipment and other key supplies remain consistent with current
levels; production forecasts meeting expectations; the accuracy of
the Company&#x2019;s current mineral resource estimates; labour and
materials costs increasing on a basis consistent with the
Company&#x2019;s current expectations; and any additional required
financing will be available on reasonable terms; market
developments and trends in global supply and demand for vanadium,
silver, other metals, coal and energy meeting expectations. The
Company cannot assure you that any of these assumptions will prove
to be correct.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-style: italic">Numerous factors could cause the
Company&#x2019;s actual results to differ materially from those
expressed or implied in the forward-looking statements, including
the following risks and uncertainties, which are discussed in
greater detail under the heading &#x201C;Risks and
Uncertainties&#x201D; in this MD&amp;A and &#x201C;Risk
Factors&#x201D; in the Company&#x2019;s most recent AR as
filed</font> <font style="font-style: italic; color: #000000">under
the Company&#x2019;s SEDAR profile at</font> <font style="font-style: italic; color: #0000ff">www.SEDAR.com</font><font style="color: #0000ff">&#xA0;</font><font style="font-style: italic">and
posted on the Company&#x2019;s website</font><font style="font-style: italic">: the Company&#x2019;s history of net losses
and lack of foreseeable positive cash flow; exploration,
development and production risks, including risks related to the
development of the Company&#x2019;s mineral properties; the Company
not having a history of profitable mineral production; commencing
mine development without a feasibility study; the uncertainty of
mineral resource and mineral reserve estimates; the capital and
operating costs required to bring the Company&#x2019;s projects into
production and the resulting economic returns from its projects;
foreign operations and political conditions, including the legal
and political risks of operating in Bolivia and Mongolia, which are
developing countries and being subject to their local laws; the
availability and timeliness of various government approvals,
permits and licenses; the feasibility, funding and development of
the Company&#x2019;s projects; protecting title to the
Company&#x2019;s mineral properties; environmental risks; the
competitive nature of the mining business; lack of infrastructure;
the Company&#x2019;s reliance on key personnel; uninsured risks;
commodity price fluctuations; reliance on contractors; the
Company&#x2019;s need for substantial additional funding and the
risk of not securing such funding on reasonable terms or at all;
foreign exchange risk; anti-corruption legislation; recent global
financial conditions; the payment of dividends; the inability of
insurance to cover all potential risks associated with mining
operations; conflicts of interest; reliance on information systems
with exposure to cyber-security risks, and global outbreaks,
including the coronavirus.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
In light of the risks and uncertainties inherent in all
forward-looking statements, the inclusion or incorporation by
reference of forward-looking statements in this MD&amp;A should not
be considered as a representation by the Company or any other
person that the Company&#x2019;s objectives or plans will be
achieved.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
These factors should be considered carefully, and readers should
not place undue reliance on the Company&#x2019;s forward-looking
statements. The Company believes that the expectations reflected in
the forward-looking statements contained in this MD&amp;A and the
documents incorporated by reference herein are reasonable, but no
assurance can be given that these expectations will prove to be
correct. In addition, although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. The Company undertakes no obligation to publicly update
any future revisions to forward-looking statements to reflect
events or circumstances after the date of this MD&amp;A or to
reflect the occurrence of unanticipated events, except as expressly
required by law.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
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<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">5</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
3.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
YEAR 2019 HIGHLIGHTS AND SIGNIFICANT EVENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For further
information please view the Company&#x2019;s 2019 news releases
<font style="color: #000000">under the Company&#x2019;s SEDAR
profile at</font> <font style="color: #0000ff">www.SEDAR.com</font><font style="color: #0000ff">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Pulacayo
Project</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On September 30,
2019 the Company announced a 5,000-meter diamond drilling at its
Pulacayo Project had started with first set of assay results
expected in early November 2019.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On October 3, 2019
the Pulacayo Mining Production Contract (&#x201C;<font style="font-weight: bold">MPC</font>&#x201D;) was executed between the
Company and the Corporaci&#xF3;n Minera de Bolivia
(&#x201C;<font style="font-weight: bold">COMIBOL</font>&#x201D;), a
branch of the Bolivian Ministry of Mining and Metallurgy.
Notification of the final government resolution approving the MPC
was received on September 27, 2019. The MPC grants the Company the
100% exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years which is comparable to a mining
license in Canada or the United States.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On October 28, 2019
the Company announced the diamond drilling results from the
Pulacayo Project, Paca part in the Potosi department of Bolivia.
The phase 1 drill results are anticipated to increase the overall
tonnage and upgrade the confidence level of the current NI 43-101
compliant resource estimate prepared independently by Mercator
Geological Services Ltd. in 2017.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On December 4, 2019
the Company announced that the Company had received on November 18,
2019 the Resolution No. 195/2018 issued by the Supreme Court of
Bolivia, which declared that the tax claim brought by
Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary was not proven. The Resolution
is final and binding. Hence neither the Company nor the Company's
Bolivian subsidiaries owe any outstanding back taxes to the
Bolivian General Revenue Authority.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On December 18,
2019, the Company <font style="color: #000000; background-color: #ffffff">announced that the
phase two drilling had commence at the Pulacayo Project. It is a
5,000-meter program that will consist mainly of wide step-out
drilling up to 1.5km west (Western Block) of the current 43-101
Pulacayo resource. That current Pulacayo resource covers 1.4 km in
strike and represents only a small portion of the Tajo vein system
which is over 3 km in strike and open to least 1,000 meters at
depth, according to historical records of underground
mining.</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Gibellini
Project</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On February 14,
2019 the Company announced that it had retained Amec Foster Wheeler
E&amp;C Services Inc. (&#x201C;<font style="font-weight: bold">Wood</font>&#x201D;) to undertake updating of
the mineral resource and mining section for the Company&#x2019;s
upcoming Feasibility Study to be completed to the standards of NI
43-101 for its Gibellini Project.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On March 26, 2019
the Company announced <font style="font-weight: bold">its</font>
vanadium assay results from its fall 2018 exploration
reconnaissance program on the Gibellini Project. The 155 assays
were taken from three prospective exploration areas all within 5km
to the existing Gibellini vanadium NI 43-101 compliant resource pit
outline whereat 49.9 million lbs. measured, and 81.5 million lbs.
indicated vanadium resource have already been identified (see
Company&#x2019;s news release dated May 29, 2018). Surface grab
samples assay as high as 2% vanadium pentoxide (V2O5) and 75
samples (48% of total 155) have V2O5 grades greater than the
Gibellini deposit&#x2019;s cut-off grade of 0.101% V2O5 at $12.5/lb.
V2O5; V2O5 currently trades at approximately $16/lb. The high
vanadium assay results along the 5-kilometer northeast-southwest
trend which line-up the Northeast Prospect, through Gibellini Hill,
Louie Hill, Middle Earth Prospect, and Big Sky Prospect providing
an indication of potential and possibly significant future
expansion of vanadium mineralization along this
corridor.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">On May 1, 2019 the Company announced
that it had received guidance regarding expected permitting
timelines following the Company meeting with regulators in late
April 2019. The Company estimated that Q1 2020 as the target date
for publication of the Notice of Intent (&#x201C;</font><font style="font-weight: bold; background-color: #ffffff">NOI</font><font style="background-color: #ffffff">&#x201D;)
to prepare an Environment Impact Statement
(&#x201C;</font><font style="font-weight: bold; background-color: #ffffff">EIS</font><font style="background-color: #ffffff">&#x201D;)
in the Federal Register. Upon publication of the NOI the review
process is mandated to be completed within a 12-month period</font>
under the US Department of the Interior&#x2019;s Secretarial Order
No. 3355. <font style="background-color: #ffffff">Based on this
guidance, an EIS Record of Decision (&#x201C;</font><font style="font-weight: bold; background-color: #ffffff">ROD</font><font style="background-color: #ffffff">&#x201D;)
would be expected no later than Q1 2021. Upon receipt of a positive
ROD and issuance of Nevada State permits, the Company plans to
start mine construction in 2021 and begin vanadium production by Q4
2022. The Company will be seeking project financing in the interim
of this process.</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">6</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman"><br>
</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On July 8, 2019 the Company announced that it had
submitted its updated Plan of Operations (the
&#x201C;</font><font style="font-weight: bold; color: #000000">POO</font><font style="color: #000000">&#x201D;) to the United States Department of the
Interior, Bureau of Land Management, Mount Lewis Field Office (the
&#x201C;</font><font style="font-weight: bold; color: #000000">BLM</font><font style="color: #000000">&#x201D;) and the Reclamation Permit Application to
the Nevada Division of Environmental Protection, Bureau of Mining
Regulation and Reclamation (the &#x201C;</font><font style="font-weight: bold; color: #000000">BMRR</font><font style="color: #000000">&#x201D;). The POO which was submitted on schedule
and prepared under budget. The POO submission is the last major
step before the publication of the NOI which will initiate the EIS
process under the Secretary of Interior Order No. 3355
(Streamlining National Environmental Policy Reviews and
Implementation of Executive Order 13807; see Company&#x2019;s news
release dated March 28, 2018).</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On July 19, 2019,
the Company announced its objectives for the second half of 2019
for the Gibellini Project. The Company plans <font style="color: #000000">to submit the key Nevada state permit applications
required for project construction by the end of the third quarter
of 2019. It is anticipated that all approvals will be received by
first quarter of 2021.</font></font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px"><br></font></div>
<div style="text-align: left; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On November 7, 2019
the Company announced that it had submitted, through its wholly
owned US subsidiary Nevada Vanadium, the applications and
Engineering Design Reports (&#x201C;<font style="font-weight: bold">EDRs</font>&#x201D;) for the primary mining
permits that govern project construction, operations and closure
for the Gibellini Project to the Nevada Division of Environmental
Protection (&#x201C;<font style="font-weight: bold">NDEP</font>&#x201D;) with copies provided to the
BLM and the EI contractor SWCA. The permit applications were
submitted on October 31, 2019 for the Water Pollution Control
Permit and the Class II Air Quality Permit. These Nevada state
permits have been developed to provide construction level
engineering that supports the mine plan previously submitted to the
BLM in the Plan of Operations. Comments received from both the BLM
and SWCA were used as guidance in the engineering design to ensure
the State and Federal Permits are aligned and reflect the most
current guidance provided by both the NDEP and BLM.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Corporate</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="text-decoration: underline">Appointments</font>:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 8px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019 the Company experienced various changes in
Directors, Officers and Management of the of the Company as
follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">John Lee ceased to
act as Head of International Affairs on February 15,
2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Louis Dionne ceased
to be a Director on February 28, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Marc Leduc was
appointed as a Director on July 22, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Ronald Clayton was
appointed as a Director on November 4, 2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On July 29, 2019
the Company the Company granted in aggregate 1,685,000 incentive
stock options to its directors, officer and employees of the
Company. The options are exercisable at a price of $0.20 per Share
for a term of five years expiring on November 1, 2024 and vest at
12.5% per quarter for the first two years following the date of
grant.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On August 19, 2019
the Company announced the formation of two wholly owned Canadian BC
subsidiaries; Silver Elephant Mining Corp. (&#x201C;Silver
Elephant&#x201D;) and Asia Mining Inc. (&#x201C;Asia Mining&#x201D;)
in order to facilitate potential future spinoffs of the
Company&#x2019;s wholly owned Bolivian silver operation and
Mongolian coal operation which was completed in September
2019.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">7</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On September 12,
2019, the Company reported that all proposed resolutions were
approved at the Company&#x2019;s Annual General Meeting of
shareholders held on September 12, 2019 in Vancouver, British
Columbia. The number of directors was set at 5 and all director
nominees, as listed in the Management Information Circular dated
July 25, 2019 were elected as directors of the Company at the
meeting to serve for a one-year term and hold office until the next
annual meeting of shareholders.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On September 24,
2019 the Company issued 175,000 common shares with a four-month
hold period to Mr. Bryan Slusarchuk, who provides consulting
services to the Company.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On October 9, 2019,
the Company issued 104,951 Common Shares at a value of $43,060 to
its directors to settle outstanding director fees.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On November 1, 2019
the Company granted in aggregate 1,680,000 incentive stock options
to its directors, officer and employees of the Company. The options
are exercisable at a price of $0.44 per Share for a term of five
years expiring on November 1, 2024 and vest at 12.5% per quarter
for the first two years following the date of grant.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 9px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="text-decoration: underline">Financings</font>:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On September 6,
2019, the Company closed a non-brokered private placement
previously announced on August 26, 2019. The placement raised gross
proceeds of $2,600,000 through the issuance of 13,000,000 Shares at
a price of $0.20 per Share. Also, the Company issued 525,000 Shares
and paid $10,000 as finder&#x2019;s fee. Proceeds of the placement
were expected to be used to develop The Company&#x2019;s mineral
projects and for general working capital purposes.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On October 21, 2019
the Company closed a non-brokered private placement announced on
October 7, 2019. The placement raised gross cash proceeds of
$3,900,000 through the issuance of 9,750,000 Shares at a price of
$0.40&#xA0;per Share. Mr. Eric Sprott, through 2176423 Ontario
Ltd., a corporation that is beneficially owned by him, acquired
5,000,000 shares under the placement for a total consideration of
$2,000,000. Following the completion of the private placement, Mr.
Sprott&#x2019;s holdings represented 9% of the issued and
outstanding common shares of the Company at the time of the
placement. Mr. Sprott beneficially owned 5,9000,000 common shares
in the Company prior to this investment. The Company&#x2019;s
management and directors purchased 0.4 million Shares for proceeds
of $160,000. The Company issued 654,500 Shares as finder&#x2019;s
fees to Mackie Research Capital Corp. All Shares were subject to a
four-month-and-one-day hold period. Proceeds were expected to be
used for the Company&#x2019;s mineral project development and for
general working capital purposes.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="text-decoration: underline">Other</font>:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #222222; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #222222; font-size: 13px; font-family: Times New Roman">On
March 18, 2019, the Company announced Ulaan Ovoo in Mongolia mine
start up in March and approximately 21,000 tonnes of coal
production and sales.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On July 9, 2019 the
Company announced <font style="font-weight: bold">t</font>hat the
Company&#x2019;s Ulaan Ovoo Mine achieved mine achieved monthly coal
production of 37,800 tonnes in June 2019.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company further
announced that a positive resolution was issued from the Mongolia
city tax tribunal regarding the Company&#x2019;s VAT dispute with
the Mongolia tax office. The resolution, which is binding and
final, affirmed the Company&#x2019;s outstanding VAT credit of 1.169
billion MNT (USD 439,470 based on today&#x2019;s exchange rate of
2,660 MNT to 1 USD) which resulted from past mining equipment
purchases. The VAT credit can be used to offset the Company&#x2019;s
taxes and royalty payments; or be refunded in cash by
Mongolia&#x2019;s Ministry of Finance within 12 to 24 months
processing time. n addition, the Company also reported that it had
successfully converted its Chandgana Khavtgai coal exploration
license to a mining license in central Mongolia. The Company
forecasts minimal Chandgana coal sales to local residents for the
2019 winter season.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 12px; margin-right: 7px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Subsequent
Events to December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On January 6, 2020
Silver Elephant Mining Corp., a wholly owned subsidiary of the
Company, changed its name to Illumina Silver Mining
Corp.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">8</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On January 8, 2020,
the Company announced the following:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">a special meeting
(the &#x201C;Special Meeting&#x201D;) of the shareholders to be held
on March 16, 2020 to seek shareholder approval the
following:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">changing the name
of The Company Development Corp. to Silver Elephant Mining Corp.
(the "Name Change");</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">to consolidate the
Company&#x2019;s issued and outstanding shares at a ratio between
one (1) new Common Share for every five (5) to ten (10) old Common
Shares (the &#x201C;2020 Consolidation&#x201D;).</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">The effective date
of the Name Change and the 2020 Consolidation would be determined
at a later date by the Board of the Company;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">proposed new symbol
of &#x201C;ELEF&#x201D; for the trading of the Company&#x2019;s Common
Shares on the Toronto Stock Exchange (&#x201C;TSX&#x201D;);
and</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 48px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company&#x2019;s Share-Based
Compensation Plan.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">the engagement of
Ken Cotiamco to provide investor relations and shareholder
communications services effective January 6, 2020. The Company
further announced that Ken Cotiamco entered into a consulting
agreement whereby Ken Cotiamco would receive from the Company
renumeration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
per Share for a term of five years expiring on January 6,
2025;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">pursuant to the
Company&#x2019;s Share-Based Compensation Plan, the issuance of an
aggregate of 1,601,000 Shares (subject to a minimum hold period of
four months plus one date from the date of issuance) as 2019 bonus
payments to certain directors, officers, employees and consultants
of the Company;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">that further to the
Company&#x2019;s news release dated December 18, 2019, the Company
had completed the first of 3 holes of the planned 17 drill holes at
the Pulacayo Project; and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">the Company had
mobilized a second drilling rig to the Pulacayo Project and expects
to complete the proposed 5,000 meter drill program in February 2020
with full assay results by March 2020;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">the Company
<font style="color: #000000">announced the first step-out diamond
drilling results from the Pulacayo property. Borehole PUD 267
intercepted 10 meters of mineralization grading 147 g/t silver,
9.8% zinc, and 2.0% lead (539 g/t AgEq) within 35.5 meter
mineralization grading 230 g/t AgEq starting 31.5 meters
downhole;</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">the Company
released <font style="color: #000000">the results of its first
2,598 meters of drilling which focused on the western portion of
the Pulacayo property;</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">the
Company announced a commencement district exploration program at
the Pulacayo Project. The exploration team will be conducting
geological mapping, with relevant sampling and possible trenching
on the property. Induced polarization geophysics will be conducted
in tandem with the field program, with 106 line-kilometers of
survey having been outlined. The program is expected to be
completed by June 2020, when the results will have been evaluated.
The intention is to then generate drilling targets in the
district.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: -12px; margin-right: 0px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 29px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">On March 16, 2020,
the Company held its Special Meeting of Shareholders. The Company
received shareholder approval of the following:</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 60px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x27A2;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">changing its name
to Silver Elephant Mining Corp.;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 60px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x27A2;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">consolidation of
the Company&#x2019;s issued and outstanding shares at a ratio
between one (1) new Common Share for every five (5) to ten (10) old
Common Shares (the &#x201C;2020 Consolidation&#x201D;). The effective
date of the Name Change and the 2020 Consolidation would be
determined at a later date by the Board of the Company;
and</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 60px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x27A2;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company&#x2019;s Share-Based
Compensation Plan.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">9</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman">On
March16, 2020, the Company amended its Articles and changed its
name to &#x201C;Silver Elephant Mining Corp.&#x201D;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman">On
March 19, 2020, the Company changed its&#x2019; symbol on the TSX
from PCY to &#x201C;ELEF&#x201D;.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman">On
March 23, 2020, the Company changed its&#x2019; symbol on the OTCQX
from PRPCF to &#x201C;SILEF&#x201D;.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-family: Times New Roman; font-size: 13px;"><font style="font-size: 13px">&#xA0;</font><font style="color: #000000; font-family: Times New Roman; font-size: 13px">In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company&#x2019;s business or results of
operations at this time.</font> &#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><br></font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
4.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
PROPERTY SUMMARY</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Gibellini Project, Nevada, USA</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
principal asset is its interest in the Gibellini Project. The
Company holds a 100% interest in the properties by way of a lease
agreement and staked claims. Claims are in the name of the
Company&#x2019;s indirect, wholly-owned Nevada subsidiaries, VC
Exploration (US), Inc. (&#x201C;<font style="font-weight: bold">VC
Exploration</font>&#x201D;) and Nevada Vanadium, LLC
(&#x201C;<font style="font-weight: bold">Nevada
Vanadium</font>&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">The Gibellini Project consists of a
total of 354 unpatented lode mining claims that include: the
Gibellini group of 40 claims, the VC Exploration group of 105
claims, and the Company group of 209 claims. The Gibellini group of
claims is referred to by the Company as a &#x201C;project&#x201D;.
All the claims are</font> located in Eureka County, Nevada,
approximately 25 miles south of the town of Eureka and are easily
accessed from US Highway 50 to a paved road that becomes a graded,
gravel road.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr>
<td style="vertical-align: top; width: 49%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_mda001.jpg"></div>
</td>
<td style="vertical-align: top; width: 51%">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Gibellini
Project is situated on the south flank of the Fish Creek Range in
the Fish Creek Mining District, about 25 miles south of Eureka,
Nevada and is accessed by dirt road extending westward from State
Route 379.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Gibellini group
of claims were acquired on June 22, 2017, through lease from the
claimant and current holder of the Gibellini mineral claims (the
&#x201C;<font style="font-weight: bold">Gibellini
Lessor</font>&#x201D;) and includes an area of approximately 771
acres. Under the Gibellini mineral lease agreement dated June 22,
2017 (the &#x201C;<font style="font-weight: bold">Gibellini
MLA</font>&#x201D;), The Company leased the Gibellini group of
claims which originally constituted the Gibellini Project by among
other things, agreeing to pay to the Gibellini Lessor, annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed USD$120,000 per year), to the average
vanadium pentoxide price of the prior year. Upon commencement of
production, The Company will maintain its acquisition through lease
of the Gibellini group of claims by paying to the Gibellini Lessor,
a 2.5% NSR until a total of USD$3 million is paid. Thereafter, the
NSR will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as &#x201C;<font style="font-weight: bold">Production Royalty Payments</font>&#x201D;). All
advance royalty payments made, will be deducted as credits against
future Production Royalty Payments.&#xA0;The lease is for a term of
10 years, which can be extended for an additional 10 years at the
Company&#x2019;s option.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">10</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On April 19, 2018,
the Gibellini MLA was amended to grant the Company the option, at
any time during the term of the agreement, to require the Gibellini
Lessor to transfer their title over all of the leased mining claims
(excluding four claims which will be retained by the Gibellini
Lessor and which contain minimal resource) to the Company in
exchange for USD1,000,000, to be paid as an advance royalty
payment.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">On July 10, 2017, the Company acquired
(through lease) from the holders (</font>the &#x201C;<font style="font-weight: bold">Former</font> <font style="font-weight: bold">Louie Hill Lessors</font>&#x201D;) <font style="background-color: #ffffff">10 unpatented lode claims totaling
approximately 207 gross acres that comprised the Louie Hill group
of claims</font> located approximately 500 meters south of the
Gibellini group of claims. These claims were subsequently abandoned
by the Former Louie Hill Lessors, and on March 11 and 12, 2018, the
Company staked the area within and under 17 new claims totaling
approximately 340 gross acres which now collectively comprise the
expanded Louie Hill group of claims.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 22,
2018, the Company entered into a royalty agreement (the
&#x201C;<font style="font-weight: bold">Royalty
Agreement</font>&#x201D;) with the Former Louie Hill Lessors to
replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company&#x2019;s subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Upon commencement
of production, the Company will pay to the Former Louie Hill
Lessors, a 2.5% NSR of which, 1.5% of the NSR may be purchased at
any time by the Company for USD$1 million, leaving the total NSR to
be reduced to 1% over the remaining life of the mine (and referred
to thereafter, as &#x201C;<font style="font-weight: bold">Production
Royalty Payments</font>&#x201D;). All advance royalty payments made,
will be deducted as credits against future Production Royalty
Payments. The Royalty Agreement shall be for an indefinite period
and shall be valid and in full force and effect for as long as the
Company, its subsidiaries, or any of their permitted successors or
assigns holds a valid and enforceable mining concession over the
area.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
December 5, 2017, the Company announced that it had significantly
expanded the land position at the Gibellini Project, by staking a
total of 198 new claims immediately adjacent to the Gibellini
Project covering 4091 acres that are sufficient to enable future
vanadium mining, processing and extraction.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On February 15,
2018, the <font style="background-color: #ffffff">Company
indirectly acquired</font> <font style="color: #000000">an
additional 105 unpatented lode mining claims located adjacent to
its existing Gibellini Project</font> <font style="background-color: #ffffff">in Nevada, USA through the indirect
acquisition of VC Exploration (US) Inc, by paying</font> a total of
$335,661 <font style="background-color: #ffffff">in cash and
issuing the equivalent of 500,000 Share purchase warrants to</font>
arm&#x2019;s-length, private parties<font style="background-color: #ffffff">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Gibellini
Project is situated entirely on public lands that are administered
by the BLM. No easements or rights of way are required for access
over public lands. Rights-of-way would need to be acquired for
future infrastructure requirements, such as pipelines and
powerlines.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">On November 20, 2017,
the Company received an independent technical report titled
&#x201C;Gibellini Vanadium Project Nevada, USA NI 43-101 Technical
Report&#x201D; with an effective date of November 10, 2017
(the&#xA0;&#x201D;</font><font style="font-weight: bold; color: #000000; background-color: #ffffff">Gibellini
Report</font><font style="color: #000000; background-color: #ffffff">&#x201D;) prepared by
Wood The Gibellini Report</font> was filed with Canadian securities
regulatory authorities on SEDAR (available at <font style="color: #0000ff; text-decoration: underline">www.sedar.com</font>).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 25, 2018,
the Company released the &#x201C;Gibellini Vanadium Project, Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment&#x201D; (the &#x201C;<font style="font-weight: bold">PEA</font>&#x201D;), with an effective date of
May 29, 2018 and signed June 25, 2018 authored by Independent
Qualified Persons Kirk Hanson, P.E.; Edward J.C. Orbock III, RM
SME; Edwin Peralta, P.E.; and Dr. Lynton Gormely, P. Eng. of Wood
and is in accordance with NI 43-101. The PEA was filed with
Canadian securities regulatory authorities on SEDAR (available at
www.sedar.com).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">11</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Gibellini Deposit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
On May 29, 2018, the Company received an independent technical
report providing an updated the resource on the Gibellini project.
The report is titled &#x201C;Gibellini Vanadium Project Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment&#x201D; prepared by Mr. Kirk Hanson, P.E., Technical
Director, Open Pit Mining; Mr. Edward J.C. Orbock III, RM SME,
Principal Geologist and US Manager of Consulting; Mr. Edwin
Peralta, P.E., Senior Mining Engineer; and Mr. Lynton Gormely,
P.Eng., Consultant Metallurgist of Wood. The report has an
effective date of May 29, 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The PEA replaces the technical report entitled &#x201C;Gibellini
Vanadium Project, Nevada, USA, NI 43-101 Technical Report&#x201D;,
effective November 10, 2017 and filed November 20, 2017. The PEA is
preliminary in nature and includes inferred mineral resources that
are too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the PEA results will be
realized. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">The PEA disclosed an
estimated 7.94 million tons at a weighted average grade of 0.314%
vanadium pentoxide (&#x201C;</font><font style="font-weight: bold; color: #000000; background-color: #ffffff">V</font><font style="font-weight: bold; vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="font-weight: bold; color: #000000; background-color: #ffffff">O</font><font style="font-weight: bold; vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">&#x201D;)
in the Measured category and 15.02 million tons at a weighted
average grade of 0.271% V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">&#xA0;in
the Indicated category leading to a total combined Measured and
Indicated Mineral Resource of 22.95 million tons at a weighted
average grade of 0.286% V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">.
Total contained metal content of the Measured and Indicated Mineral
Resources is 131.34 million pounds V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">.
The Inferred Mineral Resource estimate is 14.97 million tons at a
weighted average grade of 0.175% V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">.
The total contained metal content of the Inferred Mineral Resource
estimate is 52.30 million pounds V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">.
The table below contains a summary of the Gibellini deposit
resource estimate:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 1: Mineral Resource Statement, Gibellini</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Confidence
Category</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Domain</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Cut-offV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(%)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Tons(Mt)</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">GradeV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>(%)</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ContainedV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(Mlb)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td rowspan="2" style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Measured</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Oxide</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.101</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.96</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.251</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">19.87</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transition</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.086</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.98</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.377</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">29.98</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td rowspan="2" style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Indicated</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Oxide</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.101</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7.83</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.222</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">34.76</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transition</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.086</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7.19</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.325</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">46.73</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Total Measured and Indicated</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
22.95</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
0.286</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
131.34</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td rowspan="3" style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Oxide</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.101</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.16</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.170</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.55</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transition</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.086</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.01</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.180</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.03</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Reduced</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.116</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">14.80</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.175</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">51.72</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Total Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
14.97</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
0.175</font></div>
</td>
<td style="vertical-align: middle; width: 19%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
52.30</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Notes to accompany Mineral Resource table for
Gibellini:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">1.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">The
Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME,
a Wood</font> <font style="color: #000000; background-color: #ffffff">Group of companies
employee. The Mineral Resources have an effective date of May 29,
2018.</font></font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">2.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">3.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral Resources are reported at various cut-off grades for oxide,
transition, and reduced material.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">4.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">Mineral
Resources are reported within a conceptual pit shell that uses the
following assumptions: Mineral Resource V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font>
<font style="color: #000000; background-color: #ffffff">price:
$14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative (&#x201C;</font><font style="font-weight: bold; color: #000000; background-color: #ffffff">G&amp;A</font><font style="color: #000000; background-color: #ffffff">&#x201D;)
cost: $0.99/ton processed; metallurgical recovery assumptions of
60% for oxide material, 70% for transition material and 52% for
reduced material; tonnage factors of 16.86 ft3/ton for oxide
material, 16.35 ft3/ton for transition material and 14.18 ft3/ton
for reduced material; royalty: 2.5% net smelter return (NSR);
shipping and conversion costs: $0.37/lb. An overall 40&#xBA; pit
slope angle assumption was used.</font></font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">12</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">5.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Louie Hill Deposit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The Louie Hill deposit lies approximately 1,600 ft south of the
Gibellini deposit.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">The Gibellini Technical
Report provides an Inferred Mineral Resource of 7.52 million tons
at a weighted average grade of 0.276% vanadium pentoxide
(V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">).
The oxidation domains were not modeled. The total contained metal
content of the estimate is 41.49 million pounds
V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font><font style="color: #000000; background-color: #ffffff">.
The table below summarizes the Louie Hill deposit resource
estimate:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 2: Mineral Resources Statement, Louie Hill</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 23%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Confidence
Category</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Cut-offV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(%)</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Tons(Mt)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">GradeV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(%)</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ContainedV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(Mlb)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 23%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.101</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7.52</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.276</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">41.49</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Notes to accompany Mineral Resource table for Louie
Hill:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">1.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME, a Wood Group of companies employee. The Mineral Resources have
an effective date of May 29, 2018. The resource model was prepared
by Mr. Mark Hertel, RM SME.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">2.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">3.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Oxidation state was not modeled.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">4.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">Mineral
Resources are reported within a conceptual pit shell that uses the
following assumptions: Mineral Resource V</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">2</font><font style="color: #000000; background-color: #ffffff">O</font><font style="vertical-align: bottom; color: #000000; background-color: #ffffff; font-size: 70%">5</font>
<font style="color: #000000; background-color: #ffffff">price:
$14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative (G&amp;A) cost: $0.99/ton processed;
metallurgical recovery assumptions of 60% for mineralized material;
tonnage factors of 16.86 ft3/ton for mineralized material, royalty:
2.5% net smelter return (NSR); shipping and conversion costs:
$0.37/lb. For the purposes of the resource estimate, an overall
40&#xBA; slope angle assumption was used.</font></font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000; background-color: #ffffff">5.</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
A total of 280 drill holes (about 51,265 ft) have been completed on
the Gibellini Project since 1946, comprising 16 core holes (4,046
ft), 169 rotary drill holes (25,077 ft; note not all drill holes
have footages recorded) and 95 reverse circulation holes (22,142
ft).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The vanadium-hosted argillite unit ranges from 175 to over 300 ft
thick and overlies gray mudstone and black shales. The argillite
has been oxidized to various hues of yellow and orange to a depth
of 100 ft and is believed to have been part an overall homogenous
black shale unit. Alteration (oxidation) of the rocks is classified
as one of three oxide codes: oxidized, transitional, and
reduced.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
No significant work has been conducted on the Gibellini Project
since 2011 with some minor prospecting completed in October of
2018. The Company has not completed trenching or drilling
activities since the Gibellini Project acquisition.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The power supply for the Gibellini Project site is assumed to be at
24.9 kV and supplied from a planned substation to be located near
Fish Creek Ranch. This substation would tap and step-down the 69kV
supply carried by the line to the nearby Pan Mine to 24.9kV and
place it on a line to the Gibellini Project. Negotiations with the
power utility, Mt. Wheeler Power will need to be undertaken to
secure any future power supply contract and transmission line to
the site.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On May 9, 2018, the Company submitted its
Management&#x2019;s plan of operations
(the&#xA0;&#x201C;</font><font style="font-weight: bold; color: #000000">MPO</font><font style="color: #000000">&#x201D;) to the BLM and the Reclamation Permit
Application to the&#xA0;BMRR. On July 8</font><font style="vertical-align: top; color: #000000; font-size: 70%">t</font><font style="color: #000000">,
2019 the Company announced it submitted an enhanced mining Plan of
Operations that is designed to meet the needs set out by
Secretarial Order 3355.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">13</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
MPO was prepared by SRK Consulting (U.S.) Inc. with over 1,100
pages of detailed development plans for the open pit mining
operations and processing facilities to extract and recover
vanadium from the Gibellini Project with stated average mine
production during the seven-year mine life of 15.7 million tons of
ore material containing 120.5 million pounds of vanadium. The
primary facilities include the: pit, waste rock disposal facility,
mine office, auxiliary facilities such as water and power, crushing
facilities and stockpile, heap leach pad, process facility, water
ponds, borrow areas, and mine and access roads.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">A map of the proposed facilities is available
at&#xA0;</font><font style="color: #0000ff; text-decoration: underline">www.silverelef.com</font><font style="color: #000000">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">In
addition, the MPO includes the following designs along with
associated environmental baseline studies:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Quality
Assurance Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Storm
Water Management Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Adaptive
Waste Rock Management Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Monitoring
Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">5.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Noxious
Weed Management Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Spill
Contingency Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Feasibility
Study Level Pit Slope Design</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">8.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Heap
Leach and Waste Rock Dump Facility Stability Report</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Geochemical
Characterization Report</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Water
Management Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">11.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Closure
and Reclamation Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">12.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Transportation
Plan</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 24px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">13.</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Standardized
Reclamation Cost Estimate</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
baseline studies supplementing the MPO were completed by the
previous operator between 2010 and 2012, and included studies of
biological resources, cultural resources, surface water resources,
ground water resources, and waste rock geochemical
characterization.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">In
August 2018, the Company engaged NewFields, an environmental,
engineering, and construction management consulting &#xFB01;rm to
advance EIS preparation for the Gibellini Project.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">NewFields
completed the Gibellini heap leach pad and waste dump designs (over
40 pages) as part of an overall basic engineering design lead by
Scotia International of Nevada, Inc. in 2014. NewFields&#x2019;
familiarity with the project should help to expedite permitting
efforts at Gibellini.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PEA</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On May 29, 2018,
the Company received results of a PEA for the Gibellini Project.
The PEA reported an after tax cumulative cash flow of $601.5
million, an internal rate of return of 50.8%, a net present value
of $338.3 million at a 7% discount rate and a 1.72 years payback on
investment from start-up assuming an average vanadium pentoxide
price of $12.73 per pound. As of May 29, 2018, the price of
vanadium pentoxide is $14.20 per pound according
to&#xA0;<font style="text-decoration: underline">www.asianmetal.com</font>. The PEA was
prepared by Wood and is based on the NI 43-101 compliant resource
calculations reported above.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">14</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 3: Highlights of the PEA (after tax)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
All dollar values are expressed in US dollars unless otherwise
noted</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Internal rate of
return</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">50.8%</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Net present value
(&#x201C;<font style="font-weight: bold">NPV</font>&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$338.3 million at
7% discount rate</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Payback
period</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1.72
years</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Average annual
production</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">9.65 million lbs
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Average
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;selling
price</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$12.73 per
lb</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Operating cash
cost</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$4.77 per lb
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">All-in sustaining
costs<font style="vertical-align: top; font-size: 70%">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$6.28 per lb
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Breakeven
price<font style="vertical-align: top; font-size: 70%">**</font></font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$7.76 per lb
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Initial capital
cost including 25% contingency</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">$116.76
million</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Average
grade</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.26% V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Strip
ratio</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.17 waste to leach
material</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mining operating
rate</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.4 million tons
(leach material and waste) per year</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Average
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;recovery
through Direct Heap Leaching</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">62%</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 50%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Life of
mine</font></div>
</td>
<td style="vertical-align: middle; width: 50%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">13.5
years</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="vertical-align: top; font-size: 70%">*</font>includes
selling costs, royalties, operating cash cost, reclamation,
exploration and sustaining capital costs.</font></div>
<div style="text-align: left; 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: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="vertical-align: top; font-size: 70%">**</font>includes
selling costs, royalties, operating cash costs, taxes (local,
state, and federal), working capital, and sustaining and capital
costs.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The PEA is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
PEA will be realized. Mineral resources are not mineral reserves
and do not have demonstrated economic viability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Sensitivity Analysis</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The tables below
show the sensitivity analysis to the vanadium pentoxide price,
grade, and to the PEA capital cost and operating costs. This
sensitivity analysis indicates strong project economics even in
very challenging conditions, and that the project is well
positioned to benefit from the current rising vanadium price
environment. A 20% increase in the vanadium price relative to the
base case translates to a USD$491.3 million after-tax NPV at a 7%
discount rate.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">15</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 4: Sensitivity Analysis</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
All dollar values are expressed in US dollars unless otherwise
noted</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;price
change</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;price
USD$/lb</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxIRR</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">16.55</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">69%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">568.0</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">996.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">15.28</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">63%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">491.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">864.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">14.00</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">57%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">415.2</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">733.2</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Base
price</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.73</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">51%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">338.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">600.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">11.46</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">44%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">261.0</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">467.2</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10.18</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">36%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">183.1</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">333.2</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">8.91</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">26%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">103.9</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">196.9</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;gradechange</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>grade</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxIRR</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.34%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">68%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">554.4</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">972.8</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.31%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">63%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">482.4</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">849.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.28%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">57%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">410.7</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">725.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Base
grade</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.26%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">51%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">338.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">600.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.23%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">44%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">265.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">475.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.21%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">37%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">192.2</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">348.9</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.18%</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">28%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">118.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">221.6</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Capexchange</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">CapexUSD$M</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxIRR</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">151.8</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">40%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">307.2</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">564.3</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">140.1</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">43%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">317.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">576.3</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">128.4</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">47%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">328.0</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">588.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Base
Capex</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">116.8</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">51%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">338.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">600.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">105.1</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">55%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">348.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">612.5</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">93.4</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">61%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">358.9</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">624.6</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">81.7</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">67%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">369.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">636.8</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">16</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Opexchange</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">OpexUSD$M</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxIRR</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-tax
NPVUSD$M @ 7%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">After-taxcashflowUSD$M</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">6.20</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">45%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">257.9</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">450.2</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5.72</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">47%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">284.8</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">500.3</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5.25</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">49%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">311.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">550.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Base
Capex</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4.77</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">51%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">338.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">600.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-10%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4.29</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">53%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">364.8</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">650.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-20%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.82</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">55%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">390.7</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">698.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-30%</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.34</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">56%</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">416.0</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">745.4</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Mining &amp; Processing</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mining at the
Gibellini and Louie Hill projects is planned to be a conventional
open pit mine utilizing a truck and shovel fleet comprised of
100-ton trucks and front end loaders. Average mine production
during the 13.5 year mine life is 3.4 million tons of leach
material (3 million tons) and waste (0.4 million tonnes) per year
at a strip ratio of 0.17. Mining is to be completed through
contract, with the Company&#x2019;s mining staff overseeing the
contracted mining operation and performing the mine engineering and
survey work.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 5</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Oxide&#x2018;000
tons</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Transition&#x2018;000
tons</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Reduced&#x2018;000
tons</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Grade%
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Metal
containedV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(Mlb)</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Metal
ProducedV<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;(Mlb)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 1</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,600</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">400</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.291</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">17.440</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10.633</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 2</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,400</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">600</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.278</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">16.690</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10.480</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 3</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,760</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,240</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.310</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">18.580</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.067</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 4</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">650</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,350</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.372</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">22.320</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">15.217</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 5</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">310</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,680</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.366</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">21.950</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">15.185</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 6</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,240</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">750</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.315</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">18.920</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">11.928</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 7</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3,000</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.316</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">18.980</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">11.394</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 8</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,910</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">700</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">380</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.189</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">11.310</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7.085</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 9</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">690</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,220</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,090</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.216</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.940</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">8.023</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 10</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">110</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">370</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,520</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.208</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.480</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">6.898</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 11</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">450</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">360</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,180</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.182</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10.910</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">6.103</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 12</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">50</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">140</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,820</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.166</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">9.980</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5.349</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 13</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">390</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,600</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.183</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">10.970</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">5.839</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">YR 14</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,710</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#x2014;</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.195</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">6.670</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4.096</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Totals:</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">18,290</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">10,830</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">11,590</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">0.258</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">210.15</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">130.297</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">17</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The processing
method envisioned for the Gibellini Project will be to feed leach
material from the mine via loader to a hopper that feeds the
crushing plant. The leach material will then be fed to an
agglomerator where sulfuric acid, flocculent and water will be
added to achieve adequate agglomeration. The agglomerated leach
material will be transported to a stacker on the leach pad, which
will stack the material to a height of 15 feet. Once the material
is stacked, solution will be added to the leach heap at a rate of
0.0025 gallons per minute per square foot. The solution will be
collected in a pond and this pregnant leach solution will be sent
to the process building for metal recovery where it will go through
solvent extraction and stripping processes to produce the vanadium
pentoxide.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Vanadium Recoveries and Metallurgical Testing</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Approximately 130.3
million pounds of V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;is expected
to be produced from Gibellini and Louie Hill leaching operations at
an average recovery of 62% (oxide: 60%, transition: 70% and
reduced: 52%). The heap leaching is performed at ambient
temperature and atmospheric pressure without pre-roasting or other
beneficiation process. The pregnant leach solution is continuously
collected with leach material undergoing, on average, a 150-day
heap-leaching cycle. Table 6 below summarizes the projected
metallurgical recoveries used in the PEA for the three defined
oxidation-type domains.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 6</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 41%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Mill
Feed Material Type</font></div>
</td>
<td style="vertical-align: middle; width: 59%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Direct
Leaching Recovery</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 41%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Oxide</font></div>
</td>
<td style="vertical-align: middle; width: 59%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">60%</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 41%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transition</font></div>
</td>
<td style="vertical-align: middle; width: 59%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">70%</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 41%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Reduced</font></div>
</td>
<td style="vertical-align: middle; width: 59%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">52%</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The direct heap
leach vanadium recovery estimates used in the PEA were based on
extensive metallurgical testing work performed by SGS Lakefield
Research Laboratories, Dawson Minerals Laboratories, and McClelland
Laboratories. Samples were selected from a range of depths within
the deposit, representative of the various types and styles of
mineralization. Samples were obtained to ensure that tests were
performed on sufficient sample mass. The end results demonstrated
low acid consumption (less than 100 lb acid consumption per ton
leached) and high recovery through direct leaching. Notable test
results included the following:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Acid Heap Leach Testing of a Gibellini Bulk Sample, McClelland
Laboratories, September 4, 2013</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A series of
trenches were excavated and approximately 18 tons of material were
sent to McClelland Laboratories for pilot testing. The material was
air dried and stage crushed to 2&#x201D; where a column sample was
cut for 12&#x201D; columns and then the leach material was crushed
to &#x2013; &#xBD;&#x201D;. A head sample was taken and material for
bench marking columns, and a bottle roll test was also taken. The
results of the pilot plant testing are shown in Table
7:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">18</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 7</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Crush
Size 100%Passing</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Test
Type</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Time
(Days)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Head
Grade%V*</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">%
VanadiumRecovery</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">AcidConsumptionlbs/st</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">50 mm
(2&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Column, open
circuit</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">123</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.299</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">76.6%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">88</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.5 mm
(1/2&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Column, open
circuit</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">123</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.313</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">80.2%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">72</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.5 mm
(1/2&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Column, closed
circuit</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">199</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.284</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">68.3%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">84</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.5 mm
(1/2&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Column, closed
circuit</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Column, closed
circuit</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.313</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">74.0%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">96</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">12.5 mm
(1/2&#x201D;)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Bottle
Roll</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.286</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">67.1%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">74</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1.7 mm
(-10m)</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Bottle
Roll</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.286</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">66.3%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">66</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-75&#xB5;</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Bottle
Roll</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.279</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">67.6%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">62</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">-75&#xB5;</font></div>
</td>
<td style="vertical-align: middle; width: 17%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Bottle
Roll</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">30</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.298</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">74.2%</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">54</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="vertical-align: top; font-size: 70%">*</font>to convert V to
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>, multiply V by
1.7852.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Solvent Extraction (SX) Test Work</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The design
parameters from this test work are:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">SX Extraction pH
Range 1.8 to 2.0</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">Di-2-Ethyl Hexyl
Phosphoric Acid Concentration 0.45 M (~17.3% by weight)
Cytec</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">923 Concentration
0.13 M (~5.4% by weight)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">The Organic Diluent
is Orform SX-12 (high purity kerosene)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">SO<font style="vertical-align: bottom; font-size: 70%">2</font>&#xA0;addition of
1.0 to 1.5 g/l</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">Strip Solution
Sulfuric Acid Concentration 225 to 250 g/l SX</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">Extraction
Efficiency ~97%</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="font-size: 13px">&#x25CF;</font><font id="tab2" style="letter-spacing: 12px; color: black">&#xA0;</font><font style="font-size: 13px; font-family: Times New Roman">SX Strip Efficiency
~98%</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Pilot Scale Solvent Extraction Testing on Vanadium Bearing
Solutions from Two Gibellini Project Column Leach Tests, McClelland
Laboratories, September 16, 2013</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Solvent extraction
(&#x201C;<font style="font-weight: bold">SX</font>&#x201D;)
processing was conducted to recover vanadium from sulfuric acid
pregnant leach solution (&#x201C;<font style="font-weight: bold">PLS</font>&#x201D;) generated during pilot
column testing on bulk leach samples from the Gibellini project.
Laboratory scale testing was conducted on select solutions
generated during the pilot SX processing, to optimize the SX
processing conditions. Additional laboratory scale testing was
conducted on the loaded strip solution generated during the pilot
SX testing, to evaluate methods for upgrading and purifying it to
levels that may be required for sale of a final vanadium bearing
product.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The final pregnant
strip solution was 6.1% vanadium, 250 g/l sulfuric acid with
approximately 2% Fe and Al. The solution was suitable for oxidation
using sodium chlorate to convert the V+4 to V+5 which was then
precipitated using ammonia to make ammonium metavanadate
(&#x201C;<font style="font-weight: bold">AMV</font>&#x201D;). To make
a vanadium product for the steel industry, this AMV is calcined
(ammonia driven off) and heated to above 700&#xB0;C (the fusion
temperature of V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>). This fused
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;would then
be cooled on a casting wheel, pulverized and packaged.
Additionally, using ion exchange resins in conjunction with solvent
extraction, strip solution was produced which met or exceeded
specifications of electrolyte for vanadium flow
batteries.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">19</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In August of 2018,
the Company received metallurgical results from its technology
partner, NWME from samples collected during a site visit in March
of 2018. Tests were performed at it&#x2019;s laboratory testing
facilities located in Xi&#x2019;an, China. NWME utilized a SX
processing method to recover vanadium from sulfuric acid PLS
generated by bottle roll and column test acid leaching on Gibellini
samples. The solution was reduced and then precipitated using
ammonia to make AMV. The AMV was calcined and heated then cooled
and pulverized. A vanadium pentoxide with 98.56 % purity content
was produced. The assay for this work is shown below:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Table
8</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: bottom; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
V2O5 %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
SI %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Fe %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
P %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
S %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
As %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Na2O %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
K2O %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Al %</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
U %</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.56</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0078</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.88</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.058</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.47</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0026</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.43</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.052</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.22</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0001</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Uranium content is
less than 0.0001% which does not affect the marketability of the
product.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The PLS was
produced with very low deleterious elements which enabled using an
efficient SX process. The PLS V2O5 concentration was 1.15 gram per
liter and the Pregnant Strip Solution V2O5 concentration was 39.61
grams per liter.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Capital and Operating Costs</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The projected
capital costs for the Gibellini vanadium project over a 1 &#xBD;
year construction period and mine life average operating costs are
summarized in Tables 9 and 10 below. The capital cost includes 25%
contingency or USD23.4 million.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">20</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 9: Pre-Production Capital Cost</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
All dollar values are expressed in US dollars unless otherwise
noted</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Cost
Description</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Total(USD$000s)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td colspan="2" style="vertical-align: middle; width: 100%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Open Pit Mine</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Open pit mine
development</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,412</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Gibellini
incremental WRSF</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">212</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mobile
equipment</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">111</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td colspan="2" style="vertical-align: middle; width: 100%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Infrastructure-On Site</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Site
prep</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,431</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Roads</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1,391</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Water
supply</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,007</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Sanitary
system</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">61</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Electrical &#x2013;
on site</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2,052</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Communications</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">165</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Contact water
ponds</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">174</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Non-process
facilities &#x2013; buildings</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">7,583</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td colspan="2" style="vertical-align: middle; width: 100%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Process Facilities</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mill feed
handling</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">15,380</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Heap leach
system</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">20,037</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Process
plant</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">14,441</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td colspan="2" style="vertical-align: middle; width: 100%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Off-Site Infrastructure</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Water
system</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4,495</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Electrical supply
system</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3,227</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">First
fills</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">860</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Subtotal Total Direct Cost</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
76,039</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Construction
indirect costs</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4,254</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Sales tax /
OH&amp;P</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">4,236</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">EPCM</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">8,879</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Total
Before Contingency</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">93,409</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Contingency
(25%)</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">23,352</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 65%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Total
Project Cost</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">116,761</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">21</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Table
10: Operating Costs</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Total Cash
Operating Cost</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">USD$ per Ton
Leached</font></div>
</td>
<td style="vertical-align: middle; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">USD$ per lb of
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>
Produced</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">G&amp;A</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.99</font></div>
</td>
<td style="vertical-align: middle; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.31</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mining
Cost</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2.72</font></div>
</td>
<td style="vertical-align: middle; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.85</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Total Processing
Cost</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">11.54</font></div>
</td>
<td style="vertical-align: middle; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">3.61</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Total</font></div>
</td>
<td style="vertical-align: middle; width: 28%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">15.26</font></div>
</td>
<td style="vertical-align: middle; width: 34%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">4.77</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(<font style="color: #000000; background-color: #ffffff">All dollar values are
expressed in US dollars unless otherwise noted)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The cash operating
costs in the first half of the project covering years 1-7 is
USD$3.59 per lb of V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;produced and
for the years 8-14 is USD$7.12 per lb of V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;produced,
resulting in the weighted average cash cost of USD$4.77 per lb of
V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font>&#xA0;produced.
The cash operating cost is lower in the first half of the project
due to processing higher grade material.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Permitting</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Vanadium has been
listed as one of 23 metals critical to the US economy by the U.S
Geological Survey since December 2017. There are currently no
active primary vanadium mines in North America. <font style="color: #000000">As a result of direction from Secretary of the
Interior Order No. 3355 (Streamlining National Environmental Policy
Reviews and Implementation of Executive Order 13807) the Company
anticipates the Gibellini EIS will not be more than 150 pages
(excluding appendices) and the BLM to complete the Gibellini final
EIS within one year from the issuance of the
NOI</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On June 19, 2019,
the Company announced the appointment of a third party NEPA
contractor and SWCA Environmental Consultants to work under the
direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Gibellini EIS
will be one of the first mining EIS&#x2019;s done under Secretarial
Order 3355 (&#x201C;<font style="font-weight: bold">SO
3355</font>&#x201D;) that mandates the Final EIS cannot exceed 150
pages in length and must be completed within one year of the
publication date of the NOI for the EIS in the Federal Register. A
project schedule has been developed with the BLM that targets the
first quarter of 2020 for the NOI to be published and the EIS
formally started.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Appointment of the
EIS contractor allows the contractor to participate in the review
of the Enhanced Baseline Reports, the Mine Plan of Operations and
all relevant data and project information that will serve as the
foundation for the NEPA review. This early start by the BLM EIS
contractor will ensure a streamlined EIS process once the formal
NEPA process begins after the publication of the NOI in the Federal
Register.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On July 8, 2019,
the Company announced that it submitted an enhanced mining Plan of
Operations (&#x201C;POO&#x201D;) in June 2019 to the BLM and
Reclamation Permit Application to the BMRR. This enhanced POO
conforms to requirements that are aimed to satisfy timelines set
out by Federal Secretarial Order 3355, which is a key difference
from this POO and the POO that was submitted in 2018 (see
Company&#x2019;s news release dated May 9, 2019,<font style="color: #000000">The POO which was submitted on schedule and
prepared under budget, incorporated data and information from a
number of consulting companies that are working on the project.
Having submitted all the requisite environmental baseline studies,
the Company&#x2019;s POO submission is the last major step before
the publication of the NOI which will initiate the EIS process
under the Secretary of Interior Order No. 3355 (Streamlining
National Environmental Policy Reviews and Implementation of
Executive Order 13807; see the Company&#x2019;s press release dated
March 28, 2018). The streamlined EIS process from NOI to the record
of decision (&#x201C;</font><font style="font-weight: bold; color: #000000">ROD</font><font style="color: #000000">&#x201D;) is one year.</font> <font style="color: #000000; background-color: #ffffff">Upon receipt of a
positive ROD and issuance of Nevada State permits, the Company
plans to start mine construction in 2021 subject to project
financing completion and begin vanadium production by Q4
2022.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">22</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">This
POO details the development plans for the open pit mining
operations and processing facilities to extract and recover
vanadium from the Gibellini Project with stated average mine
production during the seven-year mine life of 15.7 million tons of
materialized resource containing 120.5 million pounds of vanadium.
The POO also includes an exploration plan to fully define all the
additional mineralized target areas within the Project claim block.
The primary facilities include the: pit, waste rock disposal
facility, mine office, auxiliary facilities such as water and
power, crushing facilities and stockpile, heap leach pad, process
facility, water ponds, borrow areas, and mine and access
roads.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Engineering Procurement Construction Management:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On August 15, 2018, the Company issued a request
for proposal (the&#xA0;&#x201C;</font><font style="font-weight: bold; color: #000000">RFP</font><font style="color: #000000">&#x201D;) for EPCM from qualified bidders. In
December 2018 the</font> Company selected M3 Engineering &amp;
Technology Corporation (&#x201C;<font style="font-weight: bold; font-family: Times New Roman">M3</font>&#x201D;)
of Tucson, Arizona to provide engineering, procurement,
construction and management services (EPCM) for its Gibellini
Vanadium Project in response to its Request for Proposal. M3 was
selected for its specific experience in heap leach engineering, and
construction expertise in arid environments such as Nevada and
Arizona.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
EPCM consists of three phases:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 84px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
1 includes updating and simplifying previous basic engineering
designs from producing delicate vanadium battery electrolyte to
producing standard vanadium pentoxide off take product. The other
parts of the design such as mine design, waste dump design, road
design, borrow pit design, buildings and infrastructure designs
will not be substantially changed.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 84px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
2 will consist of procurement of the required equipment, services
and developing the detailed engineering design required to build
the project facilities.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 84px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 12px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
3 will outline construction management services to build the
facilities to accomplish the actual work.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company expects Phase 1 of the EPCM to be completed in 2020; Phase
2, to be completed in 2021; Phase 3, to commence in 2021, completed
in 2022 and the Gibellini Project wet commissioning expected to be
in 2022.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">To try to minimize
technical and implementation risk, the Company is working closely
with its chosen technology partner, NWME, to fine tune metallurgy,
process design and engineering, and ensure maximum vanadium
recovery and high-grade vanadium pentoxide commercial product on
site. NWME owns and is currently operating the world&#x2019;s
largest black-shale vanadium mine in China with an environmentally
friendly, hydrometallurgical leach processing technology without
the need of a pre-roasting step (see the Company&#x2019;s news
release dated March 12, 2018 for more details.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NWME conducted a
Gibellini site visit in March 2018 and analyzed Gibellini samples
in its laboratories. The results of this work are discussed in the
following section.</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 style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Test Results</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 style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Samples collected by NWME&#x2019;s technical team during their visit
to the Project&#x2019;s site in February 2018 were analyzed at
NWME&#x2019;s facility in Xi&#x2019;an, China. Approximately 250 kg
of material was submitted for analysis. The results are described
herein.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="background-color: #ffffff">98.6% V</font><font style="vertical-align: bottom; background-color: #ffffff; font-size: 70%">2</font><font style="background-color: #ffffff">O</font><font style="vertical-align: bottom; background-color: #ffffff; font-size: 70%">5</font>
<font style="background-color: #ffffff">Produced on the
1</font><font style="vertical-align: top; background-color: #ffffff; font-size: 70%">st</font>
<font style="background-color: #ffffff">Run with Simple
Conventional Flowsheet</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NWME used SX
processing method to recover vanadium from sulfuric acid PLS
generated by bottle roll and column test acid leaching on Gibellini
samples. The solution was reduced and then precipitated using
ammonia to make AMV. The AMV was calcined and heated then cooled
and pulverized. <font style="background-color: #ffffff">A vanadium
pentoxide with 98.56 % purity content was produced. The assay for
this work is shown in Table 11 below:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">23</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
Table 11:</font> <font style="background-color: #ffffff">Gibellini
Vanadium Pentoxide Assay</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V2O
%</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SI
%</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Fe
%</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">P
%</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">S
%</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">As
%</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Na2O
%</font></div>
</td>
<td style="vertical-align: top; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">K2O
%</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Al
%</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">U
%</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
98.56</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.0078</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.88</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.058</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 12px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.47</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 12px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.0026</font></div>
</td>
<td style="vertical-align: top; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.43</font></div>
</td>
<td style="vertical-align: top; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.052</font></div>
</td>
<td style="vertical-align: top; width: 9%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.22</font></div>
</td>
<td style="vertical-align: top; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
0.0001</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Uranium content is
less than 0.0001% which does not affect the marketability of the
product.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The PLS was
produced with very low deleterious elements which enabled using an
efficient SX process. The PLS V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font> concentration was
1.15 gram per liter and the Pregnant Strip Solution V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font> concentration was
39.61 grams per liter.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Overall Vanadium Recovery of Over 60% and Low Acid
Consumption</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
PLS was produced from both bottle roll and column tests. Sulfuric
acid was added to the feed material with the bottle rolling for 1
hour, then the open bottle was allowed to cure for 24 hours and
water was added to the bottle to attain the desired density (40%).
Initial samples were taken at 6 hours, 12 hours, 24 hours, 36
hours, 48 hours and then once a day until the bottle roll was
completed.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
In column tests, sulfuric acid was added to the feed material and
the material was allowed to cure for 24 hours before initiating the
leaching. Leaching was conducted by applying 108 grams per liter
acid solution over the material. PLS was collected every 24 hours
and samples were taken for vanadium analysis. All the tests were
performed at room temperature and at atmospheric pressure. The
results of the tests are given in Table 12:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 12</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 51%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Test</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Leach
Time</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Vanadium
Recovery %</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Sulfuric
Acid Consumed kg/t</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 51%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Column Test</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
21 days</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
70.74</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
100</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 51%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Bottle Roll Test - investigate the effect of the curing method and
increase of sulfuric acid addition on the vanadium
recovery</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
50 hours</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
62.8</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
150</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 51%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Bottle Roll Test - investigate addition of NWME prepared leaching
agent on the vanadium recovery</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
144 hours</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
66.5</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
100</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 51%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Bottle Roll Test - investigate the leaching of coarse feed (2mm) on
the vanadium recovery</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
216 hours</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
63.7</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
100</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">The results of the bottle roll and
column leach tests performed by NWME largely validate the results
of previous tests performed by McClelland Laboratories on</font>
Gibellini bulk sample in 2013 (18 tons of material)<font style="background-color: #ffffff">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The NWME test samples were not agglomerated and were on short leach
time of 21 days for column tests and 5 days for bottle roll tests.
The Company studied both the NWME test and McClleland test in
detail and believe the results were consistent, whereby 70%
recovery can be achieved with longer leach cycle (over 100 days
McClelland Laboratories vs 21 days NWME) and less acid consumption
(50 kg of acid per tonne of material McClelland Laboratories vs 100
kg of acid per tonne of material NWME).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">A summary of</font> acid heap leach
tests of a Gibellini bulk sample, completed at McClelland
Laboratories, September 4, 2013 is tabulated in Table 13
below:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">24</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 13</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td rowspan="3" style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Size</font></font></div>
</td>
<td rowspan="3" style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Test Type</font></font></div>
</td>
<td rowspan="3" style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Time (Days)</font></font></div>
</td>
<td rowspan="3" style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Vanadium Recovery %</font></font></div>
</td>
<td rowspan="3" style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Head Grade % V2O5</font></font></div>
</td>
<td rowspan="3" style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Sulfuric Acid Consumed kg/t</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><br></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><br></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">50 mm
(2&#x201D;)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Column, open
circuit</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">123</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">76.6</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.53</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">39.9</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">12.5 mm
(1/2&#x201D;)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Column, open
circuit</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">123</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">80.2</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.56</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">32.7</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">12.5 mm
(1/2&#x201D;)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Column, closed
circuit</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">230</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">68.3</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.51</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">38.1</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">12.5 mm
(1/2&#x201D;)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Column, closed
circuit</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">198</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">74.0</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.56</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">43.5</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">12.5 mm
(1/2&#x201D;)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Bottle
Roll</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">4</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">67.1</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.51</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">33.6</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">1.7 mm
(-10m)</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Bottle
Roll</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">4</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">66.3</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.51</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">29.9</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">-75&#xB5;</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Bottle
Roll</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">4</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">67.6</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.50</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">28.1</font></font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">-75&#xB5;</font></font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Bottle
Roll</font></font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">30</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">74.2</font></font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">0.53</font></font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">24.5</font></font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Representative Feed Grade with Benign Test Conditions that Can be
Replicated in Commercial Setting</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The leaching bottle roll and column tests were performed at room
temperature and at atmospheric pressure based on Gibellini&#x2019;s
representative grade from grab sampling method across the width of
the mineralization at various locations of the Project. These
samples are characterized in Table 14:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 14</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Sample Number</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Sample ID</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Weight kg</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
Head Grade V2O5 (%)</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">1</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-28</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">17.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.665</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">2</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-29</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">17.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.885</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">3</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-30</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">12.5</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.370</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">4</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-31</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.210</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">5</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-32</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">13.5</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.420</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">6</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-33</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">22.5</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.280</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">7</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-34</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">19.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.315</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">8</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-35</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">20.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.185</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">9</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-36</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.165</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">10</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">18-L6-37</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">20.0</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">0.195</font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 32%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">Total</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">177.5</font></div>
</td>
<td style="vertical-align: middle; width: 25%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">For the purpose of metallurgical
testing, the samples were mixed to produce a composite material
with the average grade of 0.30%</font> V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font> <font style="background-color: #ffffff">which is representative of Gibellini
resource grade. The composite material was ground to -75 lm feed.
The Company believes the test conditions can easily be replicated
in a commercial heap leach setting with low technical and
implementation risk.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Unique Vanadium Mineralogy in Achieving Remarkable Recovery at Room
Temperature and Atmospheric Pressure</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="background-color: #ffffff">NWME performed detailed mineralogical
analysis which included microscope identification using a Carl
Zeiss Axioskop, XRD analysis on Bruker D8-A25 XRD, multi-element
analysis, electron probe X-ray microanalysis on JEOL JXA 8230,
scanning electron microscopy/energy dispersive X-ray spectroscopy
analysis on Mineral Liberation Analizer 650 and V element phase
analysis. This mineralogical analysis confirmed that the Gibellini
resource has a high percentage of independent vanadium minerals
(&#x201C;</font><font style="font-weight: bold; background-color: #ffffff">IVM</font><font style="background-color: #ffffff">&#x201D;)
such as kazakhstanite, shubnelite, sherwoodite, bokite, which can
be leached easily at room temperature and atmospheric pressure
within a short time frame.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
NWME noted the unique nature of the Gibellini samples with over 45%
IVM versus numerous other typical black shale deposits which they
have encountered containing less than 10% IVM.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
All of the test work carried out on the material from the Gibellini
Project indicate that there is a two-stage leaching phenomenon in
Gibellini ore - approximately 50% of the vanadium leaches in the
first 96 hours (independent vanadium minerals), and the remaining
leaching approximately 15 to 20% occurs over a longer time
horizon.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Heap leaching is the lowest-cost recovery method compared to
roasting, and pressured container VAC leaching; whereby capital
costs can compound to multiple times greater for the same
throughput. Gibellini&#x2019;s high IVM content is a key competitive
differentiator which places the deposit in the top tier of black
shale deposits in terms of pre-production capital cost required
based on NWME&#x2019;s research. The mineralogical results of the
Gibellini ore as characterized by NWME&#x2019;s test work is shown
in Table 15:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 15</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td colspan="2" style="vertical-align: middle; width: 45%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Mineral
composition</font></div>
</td>
<td style="vertical-align: middle; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Mineral
content %</font></div>
</td>
<td style="vertical-align: middle; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V
content in minerals %</font></div>
</td>
<td style="vertical-align: middle; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V
distribution %</font></div>
</td>
</tr><tr>
<td rowspan="5" style="vertical-align: middle; width: 24%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Independent vanadium minerals</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
45.2% of vanadium content</font></div>
</td>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Kazakhstanite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.15</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
40.91</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;19.77</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Shubnelite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.13</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;27.86</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;11.67</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Sherwoodite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.08</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;34.54</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;8.90</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Bokite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.03</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;36.51</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;3.53</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Melanovanadite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.01</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;41.27</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.33</font></div>
</td>
</tr><tr>
<td rowspan="4" style="vertical-align: middle; width: 24%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Vanadium-bearing layered aluminosilicate minerals</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
20.8% of vanadium content</font></div>
</td>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Sericite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;8.59</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.57</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;14.63</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Illite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;5.58</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.28</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;5.03</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Chlorite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.81</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.44</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.14</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Nacrite-palygorskite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.70</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td rowspan="3" style="vertical-align: middle; width: 24%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Vanadium-bearing layered iron oxide, sulfate 34% of vanadium
content</font></div>
</td>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Limonite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.76</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;5.48</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;31.07</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Strengite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.64</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.49</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.01</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Jarosite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.48</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.24</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;1.92</font></div>
</td>
</tr><tr>
<td rowspan="8" style="vertical-align: middle; width: 24%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Gangue</font></div>
</td>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Quartz</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;75.88</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Apatite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;2.83</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Potassium feldspar</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.73</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Dolomite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.66</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Carbonaceous</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.45</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Rutile</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.25</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
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</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Barite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.04</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-right: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 21%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Pyrite</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;0.20</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman;">&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;-</font></div>
</td>
</tr><tr>
<td colspan="2" style="vertical-align: bottom; width: 45%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Total</font></div>
</td>
<td style="vertical-align: bottom; width: 14%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-weight: bold; font-size: 13px; font-family: Times New Roman">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;100.00</font></div>
</td>
<td style="vertical-align: bottom; width: 22%; border-top: solid 2px #000000; border-left: solid 2px #000000; border-bottom: 2px solid #000000">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 18%; border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman;">
&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;100.00</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">25</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-style: italic; font-size: 13px; font-family: Times New Roman">
Low Carbonate Content Results in Exceptional Low Acid
Consumption</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
NWME detailed mineralogical analysis which included microscope
identification using a Carl Zeiss Axioskop, XRD analysis on Bruker
D8-A25 XRD, multi-element analysis, electron probe X-ray
microanalysis on JEOL JXA 8230, scanning electron microscopy/energy
dispersive X-ray spectroscopy analysis on Mineral Liberation
Analyzer 650 and V element phase analysis, confirmed the extremely
low carbonaceous content of Gibellini&#x2019;s oxide and transition
samples. This explains the low acid consumption (less than 50 kg
per tonne) compared to other average black shale deposits of 200 kg
to 300 kg per tonne based on extensive NWME data compilation. Given
acid cost accounts for approximately 50% of the Project&#x2019;s
operating expenses, Gibellini&#x2019;s low carbon content is a key
competitive differentiator which places it in the top tier of black
shale deposits in terms of processing cost based on NWME&#x2019;s
findings.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The following table is a generalized comparison of
Gibellini&#x2019;s deposit to a composite of typical black shale
vanadium deposits:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Table 16</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 44%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Gibellini Vanadium
Deposit</font></font></font></font></font></font></font></div>
</td>
<td style="vertical-align: middle; width: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Black Shale Series Vanadium
Deposits</font></font></font></font></font></font></font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Host Rock</font></font></font></font></font></font></font></div>
</td>
<td style="vertical-align: middle; width: 44%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Silica State</font></font></font></font></font></font></font></div>
</td>
<td style="vertical-align: middle; width: 40%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
Carbon Siliceous Rocks with
Mudstone</font></font></font></font></font></font></font></div>
</td>
</tr><tr>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff; font-size: 13px; font-family: Times New Roman">
The Mineral
Composition</font></font></font></font></font></font></font></div>
</td>
<td style="vertical-align: middle; width: 44%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="font-size: 13px; font-family: Times New Roman; background-color: rgb(255, 255, 255);">
<font style="background-color: #ffffff">High Silica, Low Aluminium
and Low Carbonaceous. SiO2-78.40%; Al2O3 - 4.13%;</font>
<font style="font-weight: bold; background-color: #ffffff">T(C) -
0.47%</font></font></font></font></font></font></font></font></div>
</td>
<td style="vertical-align: middle; width: 40%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="background-color: #ffffff"><font style="font-size: 13px; font-family: Times New Roman; background-color: rgb(255, 255, 255);">
<font style="background-color: #ffffff">High Silica, High Aluminum
and High Carbonaceous. SiO2-62-93%; Al2O3 &gt; 7%;</font>
<font style="font-weight: bold; background-color: #ffffff">T(C)
&gt;
10%</font></font></font></font></font></font></font></font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">The next step for NWME
will be to investigate the application of NWME&#x2019;s proprietary
technology to Gibellini mineral to produce a high purity vanadium
pentoxide product with 99.5%</font> V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font> <font style="color: #000000; background-color: #ffffff">content. During the
Company&#x2019;s team visit to NWME&#x2019;s processing facilities in
China in June 2018, NWME commented that its own black-shale
vanadium mine produces exclusively 99.5%</font> V<font style="vertical-align: bottom; font-size: 70%">2</font>O<font style="vertical-align: bottom; font-size: 70%">5</font> <font style="color: #000000; background-color: #ffffff">which commands a 15 to
25% pricing premium (compared to benchmark 98% purity) to supply to
the vanadium battery, chemical, and aerospace
industries</font><font style="color: #000000; background-color: #ffffff">. The Company delivered
the representative samples from the Project with a total weight of
approximately 1 tonne to NWME in China and the test has begun. The
Company expects to receive the results from the second phase of
metallurgical testing by NWME in the second half of
2019.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On March 26, 2019,
the Company announced vanadium assay results from its Fall 2018
exploration reconnaissance program on the Gibellini Project. The
155 assays are taken from three prospective exploration areas all
within 5km to existing Gibellini vanadium NI43-101 compliant
resource pit outline. Surface grab samples assay as high as 2%
vanadium pentoxide (V2O5) and 75 samples (48% of total 155) have
V2O5 grades greater than the Gibellini deposit&#x2019;s cut-off
grade of 0.101% V2O5 at $12.5/lb V2O5; V2O5 currently trades at
approximately $16/lb.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The high vanadium
assay results along the 5-kilometer northeast-southwest trend which
line-up the Northeast Prospect, through Gibellini Hill, Louie Hill,
Middle Earth Prospect, and Big Sky Prospect providing an indication
of potential and possibly significant future expansion of vanadium
mineralization along this corridor.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Detailed maps are
available at <font style="color: #0000ff; text-decoration: underline">www.silverelef.com</font><font style="color: #0000ff; text-decoration: underline">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Big Sky Prospect (300m by 50m)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Big Sky
prospect occurs 3.1 km southwest of the Gibellini Hill measured and
indicated resource and 1.8 km southwest of Louie Hill inferred
resource. A total of 62 samples were taken, of which 40%
(<font style="font-style: italic">n</font>=25) returned assays
greater than Gibellini cut-off grade. Sixteen (16) samples returned
assays &gt;0.200 V2O5. The distribution of samples occurs along a
300 meter exposure of the Woodruff Formation. Assays showing
&gt;0.200 V2O5 are shown in Table 17.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">26</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">Table 17</font>. V2O5% grab sample assay
results at Big Sky prospect for samples with
&gt;0.200%</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SAMPLE
ID</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Prospect</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V2O5
%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301910</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.261</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301913</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.223</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301915</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.346</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301916</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.400</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301918</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.712</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301920</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.264</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301926</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.580</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301927</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2.008</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301928</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.848</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301944</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.264</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301946</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.280</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301947</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.218</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301950</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.261</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302050</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.214</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302054</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.787</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 34%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302055</font></div>
</td>
<td style="vertical-align: top; width: 42%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Big
Sky</font></div>
</td>
<td style="vertical-align: top; width: 24%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1.982</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Middle Earth Prospect (200m by 70m)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Middle Earth
prospect occurs 1.7 km southeast of the Gibellini Hill deposit and
300 meters south of the Louie Hill deposit. A total of 50 samples
were collected of which 68% (<font style="font-style: italic">n</font>=34) returned assays &gt;0.101% V2O5
or the Gibellini cut-off grade. Twenty-seven (27) samples returned
assays &gt;0.200 V2O5. The samples are distributed over 3 road cuts
of exposed Woodruff Formation making up a 200 meter by 70-meter
areal footprint. Assays showing &gt;0.200 V2O5 are shown in Table
18.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">27</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">Table 18.</font> V2O5% grab sample assay
results at Middle Earth prospect for samples with
&gt;0.200%</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SAMPLE
ID</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Prospect</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V2O5
%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301951</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.350</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301952</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.482</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301968</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.628</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301969</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.605</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301970</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.634</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301972</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.252</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301973</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.687</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301974</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.470</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301975</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.612</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301976</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.637</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301978</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.559</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301979</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.557</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301980</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.259</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301981</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.405</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301983</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.255</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301984</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.303</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301985</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.434</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301987</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.291</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301988</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">1.294</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301989</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.261</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301991</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.314</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301992</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.457</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301993</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.380</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301995</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.302</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301998</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.539</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">301999</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.618</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302000</font></div>
</td>
<td style="vertical-align: top; width: 38%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Middle
Earth</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.532</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Northeast Trench Prospect (500m by 300m)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Northeast
Trench prospect occurs 1.2 km northeast of the Gibellini Hill
deposit and 2.5 km northeast of the Louie Hill deposit. A total of
43 samples were collected of which 37% (<font style="font-style: italic">n</font>=16) returned assays &gt;0.101% V2O5
or the Gibellini cut-off grade. Three (3) samples returned assays
&gt;0.200 V2O5. The samples are distributed through road cuts
(&#x201C;trenches&#x201D;) and dry gulches of exposed Woodruff
Formation making up a 500 meter by 350-meter areal footprint. The
exposure at the Northeast Trench is greatly obscured by colluvium
material however the extent where it is exposed might indicate a
large volume of Woodruff Formation yet to be explored. Assays
showing &gt;0.200 V2O5 are shown in Table 19.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">28</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">Table 19.</font> V2O5% grab sample assay
results at Northeast Trench prospect for samples with
&gt;0.200%</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: top; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">SAMPLE
ID</font></div>
</td>
<td style="vertical-align: top; width: 36%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Prospect</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">V2O5
%</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302004</font></div>
</td>
<td style="vertical-align: top; width: 36%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NE
Trench</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.239</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302005</font></div>
</td>
<td style="vertical-align: top; width: 36%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NE
Trench</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.380</font></div>
</td>
</tr><tr>
<td style="vertical-align: top; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">302016</font></div>
</td>
<td style="vertical-align: top; width: 36%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">NE
Trench</font></div>
</td>
<td style="vertical-align: top; width: 25%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">0.303</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; background-color: #ffffff; text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Water supply</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On August 20, 2018,
the Company<font style="font-weight: bold">&#xA0;</font>secured
water supply for the Gibellini Project construction and operation.
The Company signed a 10-year Agreement with the owner of a private
ranch, located approximately 14.5 km from the Gibellini Project.
The Agreement can be extended for any number of additional 7-year
terms, not to exceed (with the primary term) a total of 99
years.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Per the terms of
the Agreement, the lessor granted to the Company the rights to 805
acre-feet (approximately 262.4 million gallons) of water per year
for the Gibellini Project, at a minimum flow rate of 500 gallons
per minute (&#x201C;<font style="font-weight: bold">gpm</font>&#x201D;) from its year-round springs
surface water stream. The water flow rate was measured at the ranch
springs in 1965, in 1981, from December 2011 to September 2013, and
most recently, in 2017. The water flow rate ranges from 1,000 to
3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the
project&#x2019;s maximum water operational requirement of 420 gpm
based on the process engineering design prepared by Scotia
International of Nevada, Inc. as a part of engineering,
procurement, construction and management work done in
2014.license</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Gibellini
Project completed water-related baseline studies including the
drilling of water-test wells, water source data collection,
characterization, flow rate testing and modeling. Due to the fact
that the Agreement provides a source of water from surface springs
located on a private ranch and baseline studies related to it have
been completed, the Company expects to significantly expedite the
permitting process by eliminating the need to appropriate water
rights from the Nevada Division of Water Resources
(&#x201C;<font style="font-weight: bold">DWR</font>&#x201D;).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Offtake and project financing</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company has
received unsolicited expressions of interest from various potential
investment sources and is currently engaged in discussions with
potential cornerstone investors, vanadium product off-takers and
banks on potential equity, debt and prepaid off-take financing
possibilities. The Company expects to report material progress in
due course.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">On October 31, 2019,
the Company</font> submitted permit applications for the Water
Pollution Control Permit and the Class II Air Quality Permit. These
Nevada state permits have been developed to provide construction
level engineering that supports the mine plan previously submitted
to the BLM in the Plan of Operations. Comments received from both
the BLM and SWCA were used as guidance in the engineering design to
ensure the State and Federal Permits are aligned and reflect the
most current guidance provided by both the NDEP and
BLM.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
NDEP Water Pollution Control Permit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Mining in Nevada is
regulated under the authority of the Nevada Revised Statutes (NRS)
445A.300-NRS 445A.730 and the Nevada Administrative Code (NAC)
445A.350-NAC 445A.447. Water Pollution Control Permits (WPCP) are
issued to an operator prior to the construction of any mining,
milling, or other beneficiation process activity. Facilities
utilizing chemicals for processing ores are required to meet a
zero-discharge performance standard such that Waters of the State
will not be degraded.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The engineering
design for heap leaching, the processing facility, and the mine
design (M3 Engineering and Newfields Companies, LLC) was integrated
into to the site Closure Plan that was also submitted as part of
the WPCP application. This design will facilitate concurrent
closure of the heap as each heap cell is finished leaching. This
will allow the Closure Plan to be initiated during operations. At
the end of active mining, the site can be closed at minimal
technical risk. This reduces the closure duration and liability and
the commensurate reclamation bond.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">29</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Air Quality Class II Permit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Nevada Bureau
of Air Pollution Control issues air quality operating permits to
stationary and temporary mobile sources that emit regulated
pollutants to ensure that these emissions do not harm public health
or cause significant deterioration in areas that presently have
clean air. This is achieved by stipulating specific permit
conditions designed to limit the amount of pollutants that sources
may emit into the air as a regular part of their business
processes.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Any
process/activity that is an emission source requires an air quality
permit. Nevada Revised Statute (NRS) 445B.155 defines an emission
source as &#x201C;any property, real or personal, which directly
emits or may emit any air contaminant.&#x201D;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Class II Permit
for Gibellini is for facilities that emit less than 100 tons per
year for any one regulated pollutant. Since the vanadium processing
will utilize a heap leach, the emissions will be under the
threshold for more complex air permits. The engineering design
incorporates stringent emission control technology to minimize
emissions. The modeled emissions from the entire Gibellini Project
are well below the National Ambient Air Quality Standards
(NAAQS).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Enhanced
Baseline Reports (EBR&#x2019;s) were extensively used in the Project
engineering design to ensure that potential environmental impacts
identified in the EBR&#x2019;s would be avoided or minimized by
facility design. These engineering controls help ensure that
avoidance of potential environmental impacts is &#x201C;built
into&#x201D; the project from the start of the design process. Doing
so will allow Environmental Protection Measures to be taken to
minimize the risk of impacts that cannot be completely avoided in
the design and ensure up-front project planning that is sensitive
to all environmental resources.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
Integration with BLM 12-month 3355 EIS Process</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Nevada state
permit applications were brought forward in the permitting process
to identify any issues resulting from NDEP review that could affect
the project design in the Plan of Operations early. By resolving
the State permitting issues prior to the start of the EIS, it will
help ensure that the 12-month schedule mandated by the BLM
Secretarial Order 3355 (S.O. 3355) can be met and interruptions to
the schedule can be avoided.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company continues with its EPCM work and expects Phase 1 of the
EPCM, updating basic engineering design, to be completed by 2020;
Phase 2, equipment procurement and detailed engineering design, to
be completed in 2021; Phase 3, facilities construction, to start in
2021 and be completed in 2022 with the Gibellini Project wet
commissioning expected to be in 2022.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, the Company incurred total costs of
$4,956,938 (same period 2018 - $2,727,759) for the Gibellini
Project including for $3,200,773 (2018 - $1,509,587) for geological
and engineering services, $1,470,007 (2018 - $831,023) for
personnel, legal, general and administrative expenses and $286,158
(2018 - $387,149) for royalties, fees and taxes.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
2020 Outlook</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company intends
to spend the available funds as set forth above based on annual
budgets approved by the Board of Directors consistent with
established internal control guidelines, and programs recommended
in the Gibellini PEA. However, there may be circumstances where,
for sound business reasons, a reallocation of the net proceeds may
be necessary. The actual amount that the Company spends in
connection with each of the intended uses of proceeds may vary
significantly from the amounts specified above and will depend on a
number of factors, including those referred to under
&#x201C;<font style="font-style: italic">Risk
Factors</font>&#x201D;.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
2020 Gibellini objectives are:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-style: italic; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Trigger EIS NOI by
end of quarter 1, 2020;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-style: italic; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Develop strategy
with State of Nevada to potentially fill US Critical Mineral
Inventory;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-style: italic; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Explore off-take
options for vanadium products; and</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-style: italic; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Complete all Nevada
permits.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">30</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Pulacayo-Paca Property, Bolivia</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On January 2, 2015,
pursuant to the terms of the acquisition agreement entered into
between the Company and Apogee Silver Ltd. (&#x201C;<font style="font-weight: bold">Apogee</font>&#x201D;), the Company acquired the
Pulacayo Project in Bolivia through the acquisition of the issued
and outstanding shares of <font style="color: #000000">ASC Holdings
Limited and ASC Bolivia LDC,</font> which together, hold the issued
and outstanding shares of ASC Bolivia LDC Sucursal Bolivia. ASC
Bolivia LDC Sucursal Bolivia controls the mining rights to the
concessions through a separate joint venture agreement with the
Pulacayo Ltda. Mining Cooperative who hold the mining rights
through a lease agreement with state owned Mining Corporation of
Bolivia, COMIBOL.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Pulacayo
Project comprises seven concessions covering an area of
approximately 3,550 hectares of contiguous mining concessions
centered on the historical Pulacayo mine and town site. The
Pulacayo Project is located 18 km east of the town of Uyuni in the
Department of Potosi in southwestern Bolivia. The Project is also
located <font style="color: #000000; background-color: #ffffff">107
km northeast of Sumitomo Corporation&#x2019;s San Cristobal silver
mine, 185 km southwest of Coeur Mining, Inc.&#x2019;s San Bartolome
silver mine, and 139 km north of Pan American Silver Corp.&#x2019;s
San Vicente silver mine.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_mda002.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On October 7, 2019, the Company announced that the
Pulacayo Mining Production Contract (</font><font style="font-weight: bold; color: #000000">&#x201C;MPC&#x201D;</font><font style="color: #000000">)
between the Company and COMIBOL which was executed on October 3,
2019. The MPC grants the Company the 100% exclusive right to
develop and mine at the Pulacayo and Paca concessions for up to 30
years.</font> <font style="color: #000000; background-color: #ffffff">It is comparable to a
mining license in Canada or the United States.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">In November 2017, the Company received an
independent technical report with an effective date of October 20,
2017 titled &#x201C;Updated Mineral Resource Estimate and Technical
Report for the Pulacayo Project&#x201D; (the
&#x201C;</font><font style="font-weight: bold; color: #000000">Report</font><font style="color: #000000">&#x201D;). The Report was prepared by Mercator
Geological Services Limited (</font><font style="font-weight: bold; color: #000000">&#x201C;Mercator&#x201D;</font><font style="color: #000000">)
on the Company&#x2019;s Pulacayo Project and has been filed under
the Company&#x2019;s profile on the System for Electronic Document
Analysis and Retrieval (</font><font style="font-weight: bold; color: #000000">&#x201C;SEDAR&#x201D;</font><font style="color: #000000">)
at&#xA0;</font><font style="color: #0000ff; text-decoration: underline">www.sedar.com</font><font style="color: #000000">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Report describes resources estimated following the guidelines of
the CIM Definition Standards for Mineral Resources and Mineral
Reserves.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Two
mineral resource estimates were disclosed according to the
requirements NI 43-101. The first for the Pulacayo deposit and the
second for the Paca deposit.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">31</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Pulacayo Deposit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Results of the mineral resource estimate prepared
by Mercator for the Pulacayo deposit are presented below in Table
20 and filed via SEDAR at&#xA0;</font><font style="color: #0000ff; text-decoration: underline">www.sedar.com</font><font style="color: #000000">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Report outlined 2.08 million tonnes at a weighted average grade of
Ag 455 g/t, Pb 2.18%, Zn 3.19% (Ag Eq. 594 g/t) in the indicated
category and 0.48 million tonnes at a weighted average grade of Ag
406 g/t, Pb 2.08%, Zn 3.93% (Ag Eq. 572 g/t) in the inferred
category. The contained metal content estimated by the Company, of
the indicated category resources is 30.4 million ounces of silver,
100.0 million pounds of lead, 146.3 million pounds of zinc. The
contained metal content estimated by the Company, of the inferred
category resource is 6.3 million ounces of silver, 22.0 million
pounds of lead, and 41.6 million pounds of zinc (more resource
details in the table below).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 20</font><font style="color: #000000">. Pulacayo Indicated and Inferred Mineral Resource
Statement Details</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #eeeeee">
<td colspan="7" style="vertical-align: middle; width: 83%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pulacayo Mineral Resource Statement &#x2013; Effective October 20,
2017</font></div>
</td>
</tr><tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. Cut-Off (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Category</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
Tonnes</font><font style="vertical-align: top; color: #000000; font-size: 70%">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pb (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. (g/t)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td rowspan="2" style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px 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-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
400</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Indicated</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2,080,000</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">455</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.18</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.19</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">594</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">480,000</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">406</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.08</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.93</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">572</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman"><br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Notes:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(1)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(2)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Raw silver assays were capped at 1,700 g/t, raw lead assays were
capped at 15% and raw zinc assays were capped at 15%.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(3)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Silver equivalent Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb% *(US$0.94/
lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*91.9%)
+ (Zn% *(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*82.9%)</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(4)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb. Zn. Metal
recoveries used in the silver equivalent equation reflect historic
metallurgical results disclosed by Apogee Silver Ltd. (Porter et
al., 2013).</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(5)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal grades were interpolated within wire-framed,
three-dimensional silver domain solids using Geovia-Surpac Ver.
6.6.1 software and inverse distance squared interpolation methods.
Block size is 10m(X) by 10m(Z) by 2m(Y). Historic mine void space
was removed from the model prior to reporting of
resources.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(6)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Block density factors reflect three-dimensional modeling of drill
core density determinations.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(7)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are considered to have reasonable expectation for
economic development using underground mining methods based on the
deposit history, resource amount and metal grades, current metal
pricing and comparison to broadly comparable deposits
elsewhere.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(8)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Rounding of figures may result in apparent differences between
tonnes, grade and contained ounces.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(9)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(10)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;<br>
</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Tonnes are rounded to nearest 10,000.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
contained metals estimated by the Company based on in the October
20, 2017 resource estimate by Mercator are presented in Table
21.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 21</font><font style="color: #000000">: Contained Metals Based on October 20, 2017
Pulacayo Deposit</font><font style="vertical-align: top; color: #000000; font-size: 70%">**</font><font style="color: #000000">&#xA0;Mineral
Resource Estimate</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 26%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Metal</font></div>
</td>
<td style="vertical-align: middle; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Indicated Resource</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Inferred Resource</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 26%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Silver</font></div>
</td>
<td style="vertical-align: middle; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">30.4
million oz.</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6.3
million oz.</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 26%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Lead</font></div>
</td>
<td style="vertical-align: middle; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100.0
million lbs.</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">22.0
million lbs.</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 26%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Zinc</font></div>
</td>
<td style="vertical-align: middle; width: 39%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">146.3
million lbs.</font></div>
</td>
<td style="vertical-align: middle; width: 35%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">41.6
million lbs.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">32</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="vertical-align: top; color: #000000; font-size: 70%">**</font><font style="color: #000000">Based
on the resource estimate Ag Eq. cut-off value of 400 g/t and 100%
recovery; figures are rounded to the nearest
100,000</font><font style="vertical-align: top; color: #000000; font-size: 70%">th</font>
<font style="color: #000000">increment</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Between
2006 and 2012, a total of 69,739 metres of diamond drilling (226
surface and 42 underground drill holes) was conducted at Pulacayo,
results of which support the mineral resource estimate reported in
this news release. The Pulacayo site is currently permitted for
production at a milling rate of 560 tonnes per day and no known
legal, political, environmental, or other risks that would
materially affect potential future development have been identified
by the Company at the effective date of the current (October 20,
2017) mineral resource estimate.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Approximately
85% of the resource tonnage identified at the 400 g/t Ag Eq.
cut-off value occurs within 150 meters vertical distance from the
main San Leon tunnel, which may facilitate future mineral
extraction.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Paca Deposit</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Paca deposit is located in Bolivia approximately 7 km north of the
Pulacayo deposit.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Results
of the mineral resource estimate prepared by Mercator for the Paca
deposit are presented below in Table 3. The Report described
previously and filed on SEDAR documents the resource
estimate.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Report outlined 2.54 million tonnes at a weighted average grade of
Ag 256 g/t, Pb 1.03%, Zn 1.10% (Ag Eq. 342 g/t) in the inferred
category. The contained metal content estimated by the Company, of
the inferred category resources is 20.9 million ounces of silver,
57.7 million pounds of lead, 61.6 million pounds of zinc. (more
resource details in the table below).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 22</font><font style="color: #000000">. Paca Inferred Mineral Resource Statement
Details</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #eeeeee">
<td colspan="7" style="vertical-align: middle; width: 87%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Paca Mineral Resource Statement &#x2013; Effective October 20,
2017</font></div>
</td>
</tr><tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. Cut-Off (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Category</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
Tonnes</font><font style="vertical-align: top; color: #000000; font-size: 70%">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pb (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. (g/t)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 22%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">200</font></div>
</td>
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2,540,000</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">256</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.03</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.10</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">342</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Notes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(1)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(2)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(3)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb
/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000) + (Zn%
*(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(4)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn and reflect
those used for the Pulacayo deposit mineral resource estimate
reported above.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(5)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting resources.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(6)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
A block density factor of 2.26g/cm&#xB3; was used and reflects the
average of 799 density measurements.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(7)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(8)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(9)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Tonnes are rounded to nearest 10,000.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
contained metals estimated by the Company based on the October 20,
2017 resource estimate by Mercator are presented in Table
23.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">33</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 23</font><font style="color: #000000">. Contained Metals Based on October 20, 2017 Paca
Deposit** Mineral Resource Estimate</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Metal</font></div>
</td>
<td style="vertical-align: middle; width: 90%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Inferred Resource</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Silver</font></div>
</td>
<td style="vertical-align: middle; width: 90%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">20.9
million oz.</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Lead</font></div>
</td>
<td style="vertical-align: middle; width: 90%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">57.7
million lbs.</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Zinc</font></div>
</td>
<td style="vertical-align: middle; width: 90%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">61.6
million lbs.</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="vertical-align: top; color: #000000; font-size: 70%">**</font><font style="color: #000000">Based
on the resource estimate Ag Eq. cut-off value of 200 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
resource estimate is based on results of 97 diamond drill holes and
1 reverse circulation drill hole totaling 18,160 meters completed
between 2002 and 2007.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
geology of the Paca deposit includes a core zone of feeder-style
mineralization associated predominantly with brecciated andesite,
plus additional zones of shallowly dipping mantos-style
mineralization that are hosted by the surrounding
volcano-sedimentary sequence. The Paca deposit remains open at
depth and along strike.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Paca mineralization starts from surface and the deposit may be
amenable to open-pit mining and this will be evaluated further in
the future.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s research has shown that relatively few silver open
pit deposits have been defined at resource cut-off values of 200
g/t Ag Eq. or more.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Permitting and Licensing</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Pulacayo MPC between the Company and
COMIBOL</font><font style="font-weight: bold; color: #000000">&#xA0;</font><font style="color: #000000">was executed on October 3,
2019.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company was notified of final government resolution approving the
MPC on September 27, 2019. The MPC grants the Company the 100%
exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years. It is comparable to a mining
license in Canada or the United States.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Exploration</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On September 30,
2019, the Company announced <font style="color: #000000">a
5,000-meter diamond drilling at Pulacayo has started with first set
of assay results reported in November 2019. Pictures of core
samples are available on the Company&#x2019;s website at</font>
<font style="color: #0000ff; text-decoration: underline">www.silverelef.com</font><font style="color: #000000">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Phase 1 drilling</font>
<font style="color: #000000">is comprised of surface drilling to
expand the NI43-101 compliant Paca resource (see the
Company&#x2019;s news release dated November 22, 2017) in the
northern and eastern directions where previous drill holes
encountered high grade surface intercepts, including PND-062, which
included 42 meters of 406 g/t Ag located on the edge of the
resource envelope. The Company will also evaluate upgrading the
Paca resource from an Inferred category to Measured and Indicated
categories through infill drilling. Some of the high-grade zone
extensions being explored are shown below:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Table 24</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
hole N&#xBA;</font></div>
</td>
<td style="vertical-align: middle; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
from &#x2013; to (m)</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
int (m)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Ag(g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Pb(%)</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND008</font></div>
</td>
<td style="vertical-align: middle; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">18.0
&#x2013; 33.5</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">15.5</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">314</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.0</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND029</font></div>
</td>
<td style="vertical-align: middle; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">12.0
&#x2013; 22.3</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10.3</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">436</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND062</font></div>
</td>
<td style="vertical-align: middle; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10.0
&#x2013; 52.0</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">42.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">406</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.8</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.1</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 19%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
ESM2</font></div>
</td>
<td style="vertical-align: middle; width: 24%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0
&#x2013; 38.0</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">38.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">411</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.4</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.2</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">34</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
geology of the Paca deposit includes a core zone of feeder-style
mineralization associated predominantly with brecciated andesite,
plus additional zones of shallowly dipping mantos-style
mineralization that are hosted by the surrounding
volcano-sedimentary sequence. The Paca deposit remains open at
depth and along strike. The Paca mineralization starts from
surface, and the deposit may be amenable to open-pit mining which
will be evaluated in the future.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Phase 2 drilling</font>
<font style="color: #000000">commenced in December 2019. The plan
was to expand the Pulacayo resource base along strike from 1km to
3km and at depth from 300m to 600m. There will also be infill
drilling to confirm the geological model and test continuity of
shallow high grade indicated resource blocks that are near the San
Leon tunnel and accessible through the existing adit. Some of the
high-grade zone extensions being explored are shown in Table
25.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Table 25</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
hole N&#xBA;</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
from &#x2013; to (m)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
int (m)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Ag(g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Pb(%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn %</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Distancefrom adit (m)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD005</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">96.2
&#x2013; 108.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">11.9</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">689</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.9</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.4</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-67.5</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD007</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">70.0
&#x2013; 96.8</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">26.8</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">517</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.3</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.2</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-44.5</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD057</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">374.0
&#x2013; 378.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1,184</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.8</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.3</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-137.5</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD069</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">281.0
&#x2013; 294.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">13.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">624</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.1</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.2</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-46.0</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD109</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">293.6
&#x2013; 298.4</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.8</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3,607</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.8</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.1</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-30.4</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD118</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">174.0
&#x2013; 184.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1,248</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.7</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-93.9</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD134</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">128.2
&#x2013; 151.5</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">23.3</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">514</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.3</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.9</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-55.7</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD150</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">290.0
&#x2013; 302.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">11.2</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">882</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.4</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-75.2</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD159</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">343.0
&#x2013; 354.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">11.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">790</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.6</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.6</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-116.6</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 15%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PUD170</font></div>
</td>
<td style="vertical-align: middle; width: 20%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">237.0
&#x2013; 239.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3,163</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.1</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.9</font></div>
</td>
<td style="vertical-align: middle; width: 21%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-32.5</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
October 28, 2019, the Company announced the diamond drilling
results from Phase 1 drilling at Paca. Borehole PND 110 intersected
89 meters grading 378 g/t Ag-Equivalent (&#x201C;AgEq;&#x201D; 279
g/t Ag, 1.28% Zn, 1.17% Pb) starting from 9 meters downhole,
including 12 meters grading 1,085 g/t Ag starting at just 16 meters
downhole.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
1 Drill highlights included:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND107:
54.0 meters of 238 g/t AgEq (151 g/t Ag, 1.01% Zn, 1.17% Pb) from
55.0 to 109.0 meters;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND108:
24.0 meters of 307 g/t AgEq (200 g/t Ag, 0.60% Zn, 2.12% Pb) from
33.0 to 57.0 meters;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND109:
28.0 meters of 281 g/t AgEq (242 g/t Ag, 0.27% Zn, 0.69% Pb) from
15.0 to 43.0 meters;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND110:
89.0 meters of 378 g/t AgEq (279 g/t Ag, 1.28% Zn, 1.17% Pb) from
9.0 to 98.0 meters;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND112:
1.0 meters of 904 g/t AgEq (890 g/t Ag, 0.05% Zn, 0.31% Pb) from
21.0 to 22.0 meters;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PND
113: 25.0 meters of 209 g/t AgEq (196 g/t Ag, 0.04% Zn, 0.29% Pb)
from 3.0 to 28.0 meters.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 77% of reported core lengths.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Silver
equivalent (&#x201C;AgEq&#x201D;) calculation is based on NI43-101
compliant 2017 resource report completed for the Paca deposit by
Mercator Geological Services (see the Company&#x2019;s news release
dated November 22, 2017). Silver equivalent is calculated as
follows: Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb /14.583
Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000) + (Zn% *(US$1.00/lb.
Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000). 100 %
metal recoveries are assumed based on lack of comprehensive
metallurgical results</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">35</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">PUD110 reported the highest silver width-grade
intercept at the Paca project to date, which now has over 19,000
drill meters completed between the Company and the previous
operator since 2002. These Phase 1 drill results are anticipated to
increase the overall tonnage and upgrade the confidence level of
the current NI43-101 compliant resource estimate prepared
independently by Mercator in 2017 (Effective from October 20th,
2017; available on</font> <font style="color: #0000ff; text-decoration: underline">www.SEDAR.com</font><font style="color: #000000">):</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 26.</font> <font style="font-weight: bold; color: #000000; font-family: Times New Roman">&#xA0;</font><font style="color: #000000">Paca
Inferred Mineral Resource Statement Details</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;padding-top: 0px; padding-bottom: 0px; margin-left: 0px; margin-right: auto; width: 100%;">
<tr style="background-color: #eeeeee">
<td colspan="7" style="vertical-align: middle; width: 70%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Paca Mineral Resource Statement &#x2013; Effective October 20,
2017</font></div>
</td>
</tr><tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. Cut-Off (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Category</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman"><font style="color: #000000">
Tonnes</font><font style="vertical-align: top; color: #000000; font-size: 70%">*</font></font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pb (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn (%)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag Eq. (g/t)</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">200</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Inferred</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2,540,000</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">256</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.03</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.10</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">342</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Contained Metals(million oz,lb,lb)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">20.9</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">57.7</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">61.6</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font>
<font style="font-size: 13px; font-family: Times New Roman"><br>
</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; color: #000000; font-size: 13px; font-family: Times New Roman">
Notes:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(1)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(2)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(3)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb
/14.583 Troy oz./lb./US$16.50 per Troy oz.Ag)*10,000) + (Zn%
*(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(4)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn and reflect
those used for the Pulacayo deposit mineral resource estimate
reported above.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(5)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting resources.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(6)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
A block density factor of 2.26g/cm&#xB3; was used and reflects the
average of 799 density measurements.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(7)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(8)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(9)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Tonnes are rounded to nearest 10,000.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(10)</font>&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Contained Metals Based on October 20, 2017 Paca Deposit
&#xA0;Mineral Resource Estimate.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(11)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
Based on the resource estimate Ag Eq. cut-off value of 200 g/t and
100% recovery; figures are rounded to the nearest 100,000th
increment.</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
<font style="color: #000000">(12)</font>&#xA0;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-style: italic; font-size: 13px; font-family: Times New Roman">
The resource estimate is based on results of 97 diamond drill holes
and 1 reverse circulation drill hole totaling 18,160 meters
completed between 2002 and 2007.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On December 18,
2019, the Company <font style="color: #000000; background-color: #ffffff">announced that phase
two drilling which is a 5,000-meter program that will consist
mainly of wide step-out drilling up to 1.5km west (Western Block)
of the current 43-101 Pulacayo resource, has started the Pulacayo
Project. That current Pulacayo resource covers 1.4 km in strike and
represents only a small portion of the Tajo vein system which is
over 3 km in strike and open to least 1,000 meters at depth,
according to historical records of underground
mining.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
complete detailed composited drill intersections of mineralization
are tabulated as below:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">36</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Table 27</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Hole</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
From(m)</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
To (m)</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Length(m)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn %</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pb %</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
AgEq</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND107</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">55.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">109.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">54.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">151</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.01</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.17</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">238</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">70.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">77.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">178</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.97</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.37</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">271</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">70.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">109.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">39.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.20</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.34</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">283</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">87.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">109.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">22.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">240</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.23</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.65</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">355</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND108</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">15.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">65.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">50.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">135</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.40</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.42</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">208</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">33.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">57.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">24.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">200</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.60</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.12</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">307</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">33.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">10.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">257</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.41</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.49</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">333</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">94.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">96.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">160</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.94</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.52</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">220</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND109</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">15.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">242</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.27</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.69</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">281</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">20.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">29.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">391</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.26</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.10</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">445</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">24.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">26.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1223</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.42</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.20</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1365</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">37.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">282</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.31</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.52</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">315</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">75.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">173.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">15</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.47</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.28</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">168</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl
&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">93.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">94.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">167</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.64</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.24</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">367</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND110</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">182.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">173.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">95</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.63</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.40</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">273</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">89.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">279</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.28</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.17</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">378</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">19.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">718</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.05</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.74</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">749</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">9.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">12.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">145</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.07</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.90</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">183</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">16.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">12.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1085</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.04</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.71</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1115</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">44.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">138.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">87</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.59</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.01</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">233</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">44.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">46.5</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.5</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">111</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.61</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.09</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">179</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">44.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">54.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.03</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.52</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">343</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">52.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">54.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">115</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.61</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.33</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">234</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">60.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">82.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">22.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">328</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.98</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.43</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">466</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">61.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">65.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1248</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.93</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.88</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1441</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">86.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">94.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">8.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">270</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.83</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.74</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">495</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">97.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">155</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.26</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.03</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">409</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND111</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.4</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.4</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">110</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.16</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.58</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">139</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND112</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">12.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">16.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">154</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.08</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.39</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">173</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">21.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">22.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">890</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.05</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.31</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">904</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">33.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">36.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">120</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.07</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2.40</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">216</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">43.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">44.6</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.6</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">100</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.23</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.58</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">171</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
PND113</font></div>
</td>
<td colspan="7" style="vertical-align: middle; width: 86%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">25.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">196</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.04</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.29</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">209</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">incl&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">3.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">17.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">14.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">185</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.04</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.38</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">202</font></div>
</td>
</tr><tr style="background-color: #ffffff">
<td style="vertical-align: middle; width: 14%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">and&#x2026;</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">21.0</font></div>
</td>
<td style="vertical-align: middle; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">28.0</font></div>
</td>
<td style="vertical-align: middle; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7.0</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">310</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.04</font></div>
</td>
<td style="vertical-align: middle; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.19</font></div>
</td>
<td style="vertical-align: middle; width: 16%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 12px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">320</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">37</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 77% of reported core lengths.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company adopts industry recognized best practices in its
implementation of QA/QC methods. A geochemical standard control
sample and one blank sample is inserted into the sample stream
every 20th sample. Duplicates are taken at every 40th sample.
Standards and duplicates including lab duplicates and standards and
are analyzed using Thompson-Howarth plots. Samples are shipped to
ALS Global Laboratories in Ururo, Bolivia for preparation, and then
shipped to ALS Global laboratories for analysis in Lima, Peru.
Samples were analyzed using Intermediate Level Four Acid Digestion.
Silver overlimits (&#x201C;ore grade&#x201D;) are analyzed using fire
assay with a gravimetric finish. ALS Laboratories sample management
system meets all requirements of International Standards ISO/IEC
17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories
are accredited to ISO/IEC 17025:2017 for specific analytical
procedures.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">All
samples are taken from HQ-diameter core which split in half by a
diamond-blade masonry saw. One-half of the core is submitted for
laboratory analysis and the other half is preserved on the
Company&#x2019;s secured core facility for reference. All core is
geotechnically analyzed, photographed and then logged by geologists
prior to sampling.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, the Company incurred total costs of
$1,474,026 (same period 2018 - $898,650) for the Pulacayo Project
including for $970,955 (2018 - $51,112) for geological and
engineering services, $503,071 (2018 - $847,538) for personnel,
legal, general and administrative expenses.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, the Company assessed whether there was any
indication that the previously recognized impairment loss in
connection with the Pulacayo Paca property <font style="color: #0d0d0d">may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman">The
Company signed a mining production contract granting the Company
the 100% exclusive right to develop and mine at the Pulacayo Paca
property;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The Company re-initiated active exploration and
drilling program on the property</font>;</font></div>
</div>
</div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px; font-family: Times New Roman">&#x25CF;</font></div>
<div style="text-align: left; text-indent: 0px; display: table-cell">
<font style="font-size: 13px; font-family: Times New Roman">Completed a
positive final settlement of Bolivian tax dispute.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As the Company
identified indications that the impairment may no longer exist, the
Company completed an assessment to determine the recoverable amount
of the Pulacayo Paca property.</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 style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property&#x2019;s fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.</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">With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.</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
Company also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.</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">As the
recoverable amount estimated with respect to the above was $31.4
million an impairment recovery of $13,708,200 was recorded during
the year ended December 31, 2019.</font></div>
<div><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2020</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000; background-color: #ffffff">In January 2020, the
Company</font> <font style="color: #000000; font-size: 16px">&#xA0;</font> <font style="color: #000000">has completed the first 3 holes of the planned 17
drill holes at the Pulacayo Project. These step-out drill holes are
located 25-, 50- and 115 meters west of the existing Pulacayo
resource model. The Company has also mobilized a second drilling
rig to Pulacayo and expects to complete the proposed 5,000 meter
drill program in February with full assay results available by
March 2020. The remainder step out drill holes are collared up to
2km west from the existing resource model.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
January 21, 2020, the Company announced the first step-out diamond
drilling results. Borehole PUD 267 intercepted 10 meters of
mineralization grading 147 g/t silver, 9.8% zinc, and 2.0% lead
(539 g/t AgEq) within 35.5 meter mineralization grading 230 g/t
AgEq starting 31.5 meters downhole.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">38</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD
267 marks the Company&#x2019;s first Pulacayo drill hole of the 2020
drilling campaign and the first drilling to be conducted on the
property since 2012. A total of 268 historic Pulacayo drill holes
were completed between 2008 and 2012 by the previous operator. The
results of PUD 267 comes on the back of the success of the
Company&#x2019;s first drill campaign at Paca (7km north of
Pulacayo), where PND 110 intersected highest-ever grade at Paca of
12 meters of mineralization grading 1,085g/t silver, starting 16
meters downhole (see the Company&#x2019;s news release dated October
28, 2019). These near-surface, high-grade intersections contribute
positively to a potential district-style project economic
assessment with consideration of open-pit mining scenarios. There
are several other targets controlled by the Company within the
district that are yet to be drilled but highly promising (e.g.,
Pacamayo, Al Abra, and Pero).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD
267 intercepted the Tajo vein system 83 meters west from PUD 041
which intersected 20 meters of mineralization grading 15.1g/t Ag,
2.43%Zn, 0.76% Pb at a similar depth to the mineralization
encountered at PUD 267. PUD 041 (drilled in 2008) represents the
westernmost drillhole that comprises the Company&#x2019;s 2017
NI43-101 compliant Pulacayo resource (&#x201C;Eastern Block&#x201D;).
These results confirm that the Tajo vein system extends westward
and occurs near-surface, with a probable thickening component for a
minimum 83-meter extension to the west of the Eastern
Block.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Eastern Block spans 1.4 km in strike, roughly 300 meters of
vertical section and contains 30.4 million indicated silver oz and
6.4 million inferred silver oz estimated in the independent NI
43-101 report by Mercator of October 2017 (see the Company&#x2019;s
news release dated November 22, 2017).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD
267 was planned based on a vertical projection of Pulacayo&#x2019;s
historic underground workings which followed the Tajo vein system.
These workings exist between 400 meters and 1,000 meters from the
surface with mined grades of 10% to 25% Zn and 300g/t to 800g/t Ag
(according to Hochschild mining records from 1914 to 1960). The
results of PUD 267 reveal strong potential for existing
mineralization from near-surface in the intervening depths to the
workings approximately 400 meters below.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On March 6</font><font style="vertical-align: top; color: #000000; font-size: 70%">th</font><font style="color: #000000">,
2020, the Company released the results of its first 2,598 meters of
drilling which focused on the western portion of the Pulacayo
property.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Complete
composited drill intersections of mineralization (in meters) for
this portion of the program are tabulated below:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-weight: bold; font-size: 13px; font-family: Times New Roman">
Table 28</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Hole ID</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
From (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
To (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Interval (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Ag (g/t)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Zn (%)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Pb (%)</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
AgEq</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Target</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD267*</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">31.5</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">67</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">35.5</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">54.3</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4.31</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.92</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">229.6</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">West</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">117</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">123</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">6.0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">47.8</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.11</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.25</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">89.7</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">West</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD268</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">21</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">23</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">20</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1.34</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.77</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">92.6</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">West</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">75</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">77</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">2</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">93.5</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.42</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">98.8</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">East</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 18%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">82</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">83</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">1</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">83</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0.09</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">77.4</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">East</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 61% of reported core lengths.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Silver
equivalent is calculated as follows: Ag Eq. (g/t) = Ag (g/t)*89.2%
+ (Pb% *(US$0.94/ lb. Pb /14.583 Troy oz/lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz/lb./US$16.50 per Troy oz. Ag)*10,000*82.9). This calculation
incorporates metallurgical recoveries from test work completed for
Pulacayo in 2013.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">39</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold; color: #000000">Table 29</font> <font style="color: #000000">Header information for
Drillhole</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family: inherit; font-size: inherit;width: 100%;">
<tr style="background-color: #eeeeee">
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Hole ID</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Azimuth</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Dip</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Depth (m)</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Easting</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Northing</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
AMSL</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD267</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739823.4</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744735</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4336</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD268</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">192</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739866</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744723</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4366</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD269</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">210</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739750</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744727</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4321</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD270</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">201</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739626</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744618</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4284</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD271</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">156</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739670</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744655</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4293</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD272</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">300</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739540</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744860</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4329</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD273</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">201</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739343</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744869</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4385</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD274</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">200</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-65</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">95</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">741031</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744391</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4237</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD275</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">161</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739481</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744625</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4357</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD276</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">201</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739467</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744416</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4267</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD277</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">21</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-55</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">72</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">741196</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744229</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4181</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD278</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">120</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739170</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744599</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4317</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD279</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">130</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">737933</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744679</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4346</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD280</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">113</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739024</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744538</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4344</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD281</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">180</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739661</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7745113</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0); border-right: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4396</font></div>
</td>
</tr><tr>
<td style="vertical-align: bottom; width: 37%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">PUD282</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">0</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">-45</font></div>
</td>
<td style="vertical-align: bottom; width: 13%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">86.4</font></div>
</td>
<td style="vertical-align: bottom; width: 11%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">739180</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-top: 2px solid rgb(0, 0, 0); border-bottom: 2px solid rgb(0, 0, 0); border-left: 2px solid rgb(0, 0, 0);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">7744380</font></div>
</td>
<td style="vertical-align: bottom; width: 10%; border-color: rgb(0, 0, 0); border-style: solid; border-width: 2px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">4296</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Complete drill map and result cross sections can
be accessed at&#xA0;</font><font style="color: #0000ff; text-decoration: underline">www.silverelef.com/company-presentation</font><font style="color: #0000ff; text-decoration: underline">&#xA0;</font><font style="color: #000000">&#xA0;and
&#xA0;</font><font style="color: #0000ff; text-decoration: underline">https://www.silverelef.com/projects/pulacayo-silver-lead-zinc/</font><font style="color: #000000">.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-style: italic; font-size: 13px; font-family: Times New Roman">
2020 Outlook</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s objectives in 2020 is to drill and expand the
Pulacayo silver resource base which open to the west and at depth,
as well as drill district-scale targets (Paca, Al Abra, Pero,
Pacamayo) and to increase investor awareness.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s goals for 2020 include:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Refurbish
portions of the existing mine workings</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Expand
the Pulacayo resource footprint</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
I drill program</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Test
surface targets adjacent to existing workings</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Test
depth of mineralization with initial deep fan</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Compile
a production profile for Pulacayo</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Expand
the Paca resource footprint</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Phase
II drill program</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Test
extent of manto/conglomerate formation</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Update
Pulacayo/Paca Technical Report</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Ulaan Ovoo Coal, Property</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">On October 16, 2018, the Company announced that it
had executed a lease agreement (the &#x201C;</font><font style="font-weight: bold; color: #000000">Lease</font><font style="color: #000000">&#x201D;) with an arms-length private Mongolian
company (the &#x201C;</font><font style="font-weight: bold; color: #000000">Lessee</font><font style="color: #000000">&#x201D;) whereby the Lessee plans to perform
mining operations at the Company&#x2019;s Ulaan Ovoo coal mine and
will pay the Company USD$2.00 (the &#x201C;</font><font style="font-weight: bold; color: #000000">Production
Royalty</font><font style="color: #000000">&#x201D;) for every tonne
of coal shipped from the Ulaan Ovoo site
premises.</font>&#xA0;<font style="color: #000000">The Lessee has
paid the Company USD$100,000 in cash, as a non-refundable advance
royalty payment and is preparing, at its own and sole expense, to
restart and operate the Ulaan Ovoo mine with its own equipment,
supplies, housing and crew. The Lessee will pay all government
taxes and royalties related to its proposed mining
operation.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">40</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The Lease is valid for 3 years with an annual
advance royalty payment (&#x201C;</font><font style="font-weight: bold; color: #000000">ARP</font><font style="color: #000000">&#x201D;) for the first year of $100,000 (paid),
and USD$150,000 and USD$200,000 due on the 1st and 2nd anniversary
of the Lease, respectively. The ARP can be credited towards the
USD$2.00 per tonne Production Royalty payments to be made to the
Company as the Lessee starts to sell Ulaan Ovoo coal.</font>
<font style="color: #222222">The 3-year Lease can be extended upon
mutual agreement.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Ulaan Ovoo mine was commissioned in March 2019, however the
operation was stopped in April and May due to the late approval of
2019 environmental plan. The approval was issued in June
2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
July 9, 2019, the Company announced that Ulaan Ovoo mine achieved
record monthly coal production of 37,800 tonnes in June
2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-style: italic; font-size: 13px; font-family: Times New Roman">
Chandgana Coal, Properties</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For more
information about the Chandgana coal properties and power plant
project, please refer to the relevant sections of the
Company&#x2019;s Annual Report on Form 20-F for the year ended
December 31, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The Company has successfully converted its
Chandgana Khavtgai (Khavtgai Uul) coal exploration license to a
mining license.</font> For the Chandgana Tal project, the Company
intends to discuss the need to update the detailed environmental
impact assessment and mining feasibility study with the relevant
ministries and complete the requirements to maintain the
licenses.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
5.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
SELECTED ANNUAL FINANCIAL INFORMATION</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The table below
contains selected financial data from the audited consolidated
financial statements of the Company for the three most recently
completed financial years and was prepared in accordance with
IFRS.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Selected
Annual Financial Data</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td colspan="2" rowspan="1" style="vertical-align:bottom;width:24%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:5%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:90%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Years ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:5%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Operating
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(3,505,562</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(3,298,383</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,381,365</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
items</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;">21,019,416</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;">(14,886,085</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: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;">(16,211,616</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
gain/(loss)</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;">17,513,854</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;">(18,184,468</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: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;">(18,592,981</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Comprehensive
gain/(loss)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">17,513,854</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(18,196,628</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">(18,580,821</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Share
Information:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Gain/(loss)
per share, basic</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.17</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.23</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: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;">(0.33</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Gain/(loss)
per share, diluted&#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;">0.17</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;">(0.23</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: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;">(0.33</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Weighted
average number of common shares outstanding, basic
diluted<br></font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">102,208,111</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">78,445,396</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;">55,760,700</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Financial
Position:</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Current
assets</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;">3,400,142</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;">5,463,768</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;">4,481,471</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Equipment</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;">159,484</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;">101,162</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;">531,911</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Mineral
properties</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;">23,782,884</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;">3,643,720</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;">13,299,906</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
assets</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;">27,448,088</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;">9,264,205</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;">18,368,843</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:64%;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Total
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;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">2,740,000</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;">10,023,943</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;">9,681,322</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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:12px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Dividends</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">41</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Year Ended December 31, 2019 compared with the same period in
2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
annual operating expenses increased by $207,179 from $3.3 million
for the year 2018 to $3.5 million for the year 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
reported a net gain of $17.5 million ($0.17 gain per Share) for the
year ended December 31, 2019, which represents a decreased loss of
$35.7 million when compared to the year 2018 ($0.23 loss per
Share). The decrease in net loss was primarily due to an impairment
reversal of 13.7 million for Pulacayo property and a write-off the
Bolivian tax liability of $8 million in 2019 compared to impairment
charges of $18.2 million in 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The total assets
increased by $18.2 million from $9.3 million in the year 2018 to
$27.5 million in the year 2019. The increase was mainly due to an
impairment reversal for Pulacayo property an increase in mineral
property exploration. Current assets decreased by $2.3 million from
$5.5 million in the year 2018 to $3.2 million in the year 2019. The
decrease was due to a decrease in cash of $2.3
million.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
total liabilities decreased by $7.3 million since December 31,
2018. The decrease in total liabilities was mainly due to a
write-off the Bolivian tax liability.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="text-decoration: underline; font-size: 13px; font-family: Times New Roman">
Year Ended December 31, 2018 compared with the same period in
2017.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
annual operating expenses increased by $0.9 million from $2.4
million for the year 2017 to $3.3 million for the year 2018. The
increase was due to increased activities related to the acquisition
and exploration of the Gibellini Project in Nevada and equity
financings.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
reported a net loss of $18.2 million ($0.23 loss per Share) for the
year ended December 31, 2018, which represents a decreased loss of
$0.4 million when compared to the year 2017 ($0.33 loss per Share).
The decrease in net loss was primarily due to a lesser amount of
impairment charges in the year 2018 ($14.5 million) compared to the
previous year ($15.1 million), offset by increase in operating
expenses and a foreign exchange loss.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The total assets
decreased by $9.1 million from $18.4 million in the year 2017 to
$9.3 million in the year 2018. The decrease was mainly due to a
write-off the Pulacayo property and its mining equipment. Current
assets increased by $1 million from $4.5 million in the year 2017
to $5.5 million in the year 2018. The increase was mainly due to
the $5.2 million net proceeds received from the bought deal
financing in Q4 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
total liabilities at December 31, 2018 were $10 million compared to
$9.7 million at December 31, 2017. The increase in liabilities was
mainly due to a foreign exchange fluctuation of Canadian Dollar
against Bolivian Boliviano related to Bolivian tax
provision.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
total liabilities increased by $0.45 million from $ 9.7 million at
December 31, 2017 to $10.1 million at December 31, 2018 due to
increased Bolivian tax provision (due to fall of Canadian Dollar)
and offset by a decrease in trade accounts payable.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">42</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
6.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
SUMMARY OF QUARTERLY RESULTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Table below
presents summarized selected consolidated financial information for
the eight most recently completed quarters:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">Q4</font><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">Q3</font><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">Q2</font><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">&#xA0;</font></div>
</td>
<td style="vertical-align: bottom; width: 12%; border-bottom: 2px solid rgb(0, 0, 0);">
<div style="text-align: right; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">
&#xA0;</font> <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px;">Q1</font><font style="font-family: Times New Roman; font-size: 13px; font-weight: bold;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Operating
expense</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;">(1,175,096</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: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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(715,475</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(820,893</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: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;">(794,098</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
gain/(loss)</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;">12,475,952</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;">(1,019,268</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: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;">6,966,029</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;">(908,859</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
loss per share, basic and diluted</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;">0.11</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">0.07</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;">(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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Comprehensive
gain/(loss )</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;">12,475,952</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;">(1,019,268</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: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;">6,966,029</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;">(908,859</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Comprehensive
gain/(loss)per share, basic and diluted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.11</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">0.07</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">Q4</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">Q3</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">Q2</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; border-bottom:solid 2px #000000;font-weight:bold;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">Q1</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;font-weight:bold;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Operating
expense</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;">(1,318,475</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: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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(636,172</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(780,818</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: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;">(562,918</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
loss</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;">(16,044,665</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: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;">(634,337</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: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;">(916,247</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: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;">(589,219</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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
loss per share, basic and diluted</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;">(0.20</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: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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(0.01</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">(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>
<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;">(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:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Comprehensive
loss</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;">(15,975,825</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: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;">(610,797</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: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;">(966,787</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: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;">(643,219</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:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Comprehensive
loss per share, basic and diluted</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.20</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(0.01</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Significant
variances in the Company&#x2019;s reported net loss from quarter to
quarter most commonly arise from several factors: (i) level of
exploration and project evaluations expenses incurred, (ii)
decisions to write off acquisition and exploration costs when
management concludes there has been an impairment in the carrying
value of a mineral property, or to reverse impairment charges due
to indicators of impairment reversal, and (iii) the vesting of
incentive stock options, which results in the recording of amounts
for share-based compensation expense that can be quite large in
relation to other general and administrative expenses incurred in
any given quarter.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
7.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,
2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">All of the
information described below is accounted for in accordance with
IFRS. The reader is encouraged to refer to Note 6 of the
Company&#x2019;s Annual Financial Statements for the year ended
December 31, 2019 for the Company&#x2019;s IFRS accounting
policies.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
reported a net gain of $17.5 million ($0.17 gain per basic Share)
for the year ended December 31, 2019, which represents a decreased
loss of $35.7 million when compared to the year 2018 ($0.23 loss
per basic Share). The decrease in net loss was primarily due to an
impairment reversal of 13.7 million for Pulacayo property and a
write-off the Bolivian tax liability of $8 million in 2019 compared
to impairment charges of $18.2 million in 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the year ended
December 31, 2019, the Company incurred operating expenses of
$3,505,562 compared to $3,298,383 for 2018 and $2,381,365 for
2017.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Operating Expenses</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Year Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Advertising
and promotion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">794,182</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">471,230</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">101,512</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Consulting
and management fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">251,552</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">255,610</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">751,612</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">General
and administrative expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,286,617</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,357,724</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">635,736</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Professional
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">228,594</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">428,884</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">194,912</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Share-based
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">707,802</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">553,430</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">599,117</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Travel
and accommodation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">236,815</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">231,505</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">98,476</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,505,562</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,298,383</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,381,365</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">43</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The $207,179
increase in operating expenses when compared to the year 2018 was
the net result of changes to a number of the following
items:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">advertising and
promotion expenses increased by $322,952 due to increased promotion
efforts in the US and Europe to raise market awareness and to raise
equity financing. The Company incurred higher marketing costs
because the Company is working with the financial community to make
its projects known. Investor relations remains a priority due to
the ongoing need to attract investment capital;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">general and
administrative costs comprising head office costs including
salaries, directors&#x2019; fees, insurance and costs related to
maintaining the Company&#x2019;s exchange listings and complying
with securities regulations. General and administrative expenses
decreased by $71,107 in the year 2019 compared to the year
2018;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">professional fees
decreased by $200,290. The decrease was mainly due to reduced legal
fees;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">share-based
payments costs are non-cash charges which reflect the estimated
value of stock options granted. The Company uses the fair value
method of accounting for stock options granted to directors,
officers, employees and consultants whereby the fair value of all
stock options granted is recorded as a charge to operations over
the period from the grant date to the vesting date of the option.
The fair value of common share options granted is estimated on the
date of grant using the Black-Scholes option pricing
model.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The increase in
share-based payments in 2019 by $154,372 compared to 2018 was
primarily related to the increase in the number of options earned
during the year 2019 compared to the year 2018; and</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">travel and
accommodation expenses slightly increased by $5,310. The Company
incurred additional travel expenses as it actively pursues the
Pulacayo and Gibellini projects moving toward production and seeks
financing.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the year ended
December 31, 2019, the Company incurred other expenses classified
as &#x201C;Other Items&#x201D; amounting to a gain of $21,019,416
compared to a loss of $14,866,085 for the year 2018, and a loss of
$16,211,616 for the year 2017.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Other Items</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: center"><font>&#xA0;</font> <font><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Year Ended December 31,</font></font><font>&#xA0;</font>
<font>&#xA0;</font> <font><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></font><font>&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Costs
in excess of recovered coal</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">120,354</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">94,335</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">109,187</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Finance
cost</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">8,111</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Foreign
exchange (gain)/loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">443,203</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">412,663</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">188,464</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment/(recovery)
of mineral property</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(13,708,200</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">13,994,970</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14,829,267</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of prepaid expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">51,828</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">26,234</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">57,420</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of equipment&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">425,925</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">159,666</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of receivables</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">16,304</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,004</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">61,202</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Interest
expense</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,066</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss/(gain)
on sale of marketable securities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">91,890</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">22,810</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss
on sale of equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,795</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,681</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss/(gain)
on debt settlement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(7,952,700</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(50,000</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">752,742</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(130,936</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(21,019,416</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,886,085</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">16,211,616</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font>&#xA0;&#xA0; <font style="font-size: 13px; font-family: Times New Roman"><br>
</font></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">44</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The decrease in
loss of Other Items by $35,905,501 in the year 2019 compared to the
year 2018 was the net result of changes to a number of the
following items:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">in the year 2019
costs in excess of recovered coal for Ulaan Ovoo increased by
$26,019 compared to the year 2018 due to increased activities at
Ulaan Ovoo coal mine in Mongolia;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">foreign exchange
loss increased by $30,540 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
boliviano and Mongolian tugrik;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">in the year 2019,
the Company recorded an impairment recovery of $13,708,200 on its
Pulacayo property and impairment charges of $51,828 and $16,304 on
prepaid expenses and receivables respectively.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In the year 2018,
the Company recorded a total of $13,994,970 impairment charges on
its Pulacayo property and Chandgana Coal property incurred
expenses, an impairment charge of $425,925 on Bolivian mining
equipment, and impairment charges of $26,234 and $21,004 on prepaid
expenses and receivables respectively.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In the year 2017,
the Company recorded an impairment charge of $14,829,267 on its
non-core Mongolian coal properties, an impairment charge of $57,420
on prepaid expenses related to the impaired Mongolian properties,
an impairment charge of $159,666 on equipment, and an impairment
charge of $61,202 on receivables.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">in the year 2018,
the Company sold 2.7 million shares of a public company for a
realized loss of $91,890. In the year 2017, the Company sold of 2.2
million Lorraine Copper Corp. shares for a realized loss of
$22,810.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">in the year 2019,
the Company recorded a write off Bolivian tax liabilities of
$7,952,700 due to the decision of the Supreme Court of Bolivia to
discharge the Company of the tax claim.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In the year 2018,
the Company earned $50,000 from a debt settlement with Nickel Creek
Platinum Corp. and $130,936 from advance royalty
payment.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In the year 2017,
the Company recorded a loss on debt settlements with certain of its
directors and officers of $752,742 to account for the difference in
the fair value of the Shares on the settlement date and the implied
value from the debt settled.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
8.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
RESULTS OF OPERATIONS FOR THE FOURTH QUARTER 2019</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A summary of the
Company&#x2019;s consolidated operating expenses results for the
three months ended December 31, 2019, 2018 and 2017 provided
below:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Operating Expenses</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Three Months Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Advertising
and promotion</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">237,556</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">107,296</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">53,362</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Consulting
and management fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">85,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">63,455</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">613,992</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">General
and administrative expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">256,452</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">726,257</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">239,023</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Professional
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">46,443</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">204,162</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">143,661</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Share-based
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">475,200</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">135,848</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">213,201</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Travel
and accommodation</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">73,945</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">81,457</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,268</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,175,096</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,318,475</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,277,507</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">45</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A decrease of
operating expenses by $143,379 in the year 2019 compared to the
year was the net result of changes</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">advertising and
promotion expenses increased by $130,260 due to increased promotion
efforts in the US and Europe to raise market awareness and to raise
equity financing;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">consulting and
management fees increased by $22,045 due to increased consulting
services used in Q4 2019 compared to Q4 2018;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">general and
administrative expenses decreased by $469,806 due primarily to
decreased salaries and transfer agent and stock exchange filing
fees related to equity financing;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">professional fees
decreased by $157,719 due to decreased legal services;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">non-cash
Share-based payments increased by $339,352 due to a larger number
of outstanding stock options vesting during the Q4 2019 compared to
the Q4 2018; and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">travel and
accommodation expenses decreased by $7,512 due to decreased during
the Q4 2019 compared to the Q4 2018.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the three
months ended December 31, 2019, the Company&#x2019;s &#x201C;Other
Items&#x201D; amounted to a gain of $13,651,048 compared to a loss
of $14,726,190 for the same quarter in 2018. The decrease in other
items loss was mainly due to a lesser number of impairment charges
recorded in in Q4 2019 compared to Q4 2018.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Other Items</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="text-align: right; vertical-align:bottom;width:94%;display:inline-block;">
<div><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Three Months Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Costs
in excess of recovered coal</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(30,584</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(33,566</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,367</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Foreign
exchange (gain)/loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">731,187</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">372,427</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">822,284</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment/(recovery)
of mineral property</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(14,429,578</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">13,953,212</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">14,733,067</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of prepaid expenses</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">51,828</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">26,234</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">57,420</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of equipment&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">425,925</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">159,666</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Impairment
of receivables</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">16,304</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,004</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">61,202</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss/(gain)
on sale of marketable securities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">91,890</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss
on sale of equipment</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,681</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Loss/(gain)
on debt settlement</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,795</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">752,742</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Other
income</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(130,936</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">(13,651,048</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">14,726,190</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">16,592,429</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
9.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
PROPOSED TRANSACTIONS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at the date of
this MD&amp;A there are no proposed asset or business acquisition
or disposition where the Board of Directors or senior management
believes that confirmation of the decision by the Board of
Directors is probable or with which the Board of Directors and
senior management have decided to proceed.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
10.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
LIQUIDITY AND CAPITAL RESOURCES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Working Capital</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
utilizes existing cash received from prior issuances of equity
instruments to provide liquidity to the Company and finance
exploration projects.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">46</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The business of
mineral exploration involves a high degree of risk and there can be
no assurance that the Company&#x2019;s current operations, including
exploration programs, will result in profitable mining operations.
The recoverability of the carrying value of mineral properties, and
property and equipment interests and the Company&#x2019;s continued
on going existence is dependent upon the preservation of its
interest in the underlying properties, the discovery of
economically recoverable reserves, the achievement of profitable
operations, the ability of the Company to raise additional sources
of funding, and/or, alternatively, upon the Company&#x2019;s ability
to dispose of some or all of its interests on an advantageous
basis. Additionally, the current capital markets and general
economic conditions are significant obstacles to raising the
required funds. These conditions may cast significant doubt upon
the Company&#x2019;s ability to continue as a going
concern.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">At December 31,
2019, the Company had cash flow of $3 million representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company&#x2019;s working capital at December 31, 2019 was
$1 million compared to working capital of $3.8 million at December
31, 2018. The Company&#x2019;s working capital decrease by $2.8
million resulting from the increase in current liabilities and
decrease in current assets.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Sources and Use of Cash</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Years Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
Used in Operating Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,675,513</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,626,687</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(707,231</font><font style="text-align: left; color:#000000;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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
Used in Investing Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(6,236,965</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(3,628,762</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(1,988,566</font><font style="text-align: left; color:#000000;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%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
Provided by Financing Activities</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">6,626,085</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">7,458,938</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">6,774,757</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Net
Decrease in Cash</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">(2,286,393</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">)</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,203,489</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,078,960</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
- beginning of period</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">21,648</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
- end of period</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, cash used in operating activities was
$2,675,513 compared to $2,626,687 cash used during the prior year.
The increased outflows in 2019 primarily related to increased
activities of the Company to develop the Pulacayo Project and the
Gibellini Project. The year over year increase in cash used by
operating activities is due to increased funds required for working
capital changes. The Company has increased its efforts in managing
operating costs in advance of cash flows from operations but will
require financing in the near term to fund operations.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, the Company used $6,236,965 in investing
activities (2018 &#x2013; $3,628,762). The Company used $113,564
(2018 - $120,416) on purchase of property and equipment, $6,123,401
(2018 - $3,609,896) on mineral property expenditures.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, a total of $6,626,085 was provided by
financing activities including net proceeds from the
Company&#x2019;s share issuance of $6,237,791, an additional
$174,250 from exercise of stock options, and $250,572 from the
exercise of warrants to purchase the common shares of the Company.
The Company spent $36,528 for lease payments.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2018</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2018, cash used in operating activities was
$2,626,687 compared to $707,231 cash used during the prior year.
The increased outflows in 2018 primarily related to increased
activities of the Company to develop the Gibellini Project. The
year over year increase in cash used by operating activities is due
to increased funds required for working capital
changes.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2018, the Company used $3,628,762 in investing
activities (2017 &#x2013; $1,988,566). The Company received net
proceeds of $101,550 from selling its marketable securities, used
$120,416 (2017 - $515,609) on purchase of property and equipment,
$425,605 (2017 - $58,790) on the acquisition of the Gibellini
claims, and $3,184,294 (2017 - $1,339,417) on mineral properties
expenditures.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">47</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2018, a total of $7,458,938 was provided by
financing activities including net proceeds from The
Company&#x2019;s share issuance of $6,096, 621, $24,150 from
exercise of stock options, and $1,338,167 from the exercise of
warrants to purchase the common shares of the Company.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2017, cash used in operating activities was
$707,231 compared to $453,600 cash used in the prior year. The
increased outflows in 2017 primarily related to Gibellini project
activities.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">2017</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2017, the Company used $1,988,566 in investing
activities (2016 &#x2013; $606,372). The Company spent $34,500
investing in GIC, $58,790 on the acquisition of the Gibellini
Project, and $1,339,417 (2016 - $712,901) on mineral properties
expenditures. In 2017, the Company spent $193,440 and received
$153,190 (2016 - $59,698) from the purchase and sale of
available-for-sale investments respectively.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A total of
$6,774,757 was provided by financing activities during the year
ended December 31, 2017 (2016 &#x2013; $1,048,078). The Company
fully repaid and closed out the Credit Facility by issuing 300,000
Shares to John Lee in satisfaction of $900,000 worth of
indebtedness owing by the Company to Mr. Lee&#x2019;s personal
holding company, Linx, under the Credit Facility and making cash
payments totaling $364,142. Funds borrowed under the Credit
Facility in the year 2017 were $163,405 (2016 - $341,116). During
the year ended December 31, 2017, the Company received net proceeds
of $6,864,809 (2016 - $952,929) from issuing units pursuant to
private placements, $50,685 (2016 - $Nil) from exercise of stock
options, and $60,000 (2016 - $Nil) from exercise of Share purchase
warrants.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Capital
Resources</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As an exploration
and development company, The Company has no regular cash in-flow
from operations, and the level of operations is principally a
function of availability of capital resources. The Company&#x2019;s
capital resources are largely determined by the strength of the
junior resource markets and by the status of the Company&#x2019;s
projects in relation to these markets, and its ability to compete
for investor support of its projects. See Section
&#x201C;<font style="font-style: italic">Risk Factors</font>&#x201D;
set out in the Company&#x2019;s AR. To date, the principal sources
of funding have been equity and debt financing. Many factors
influence the Company&#x2019;s ability to raise funds, and there is
no assurance that the Company will be successful in obtaining
adequate financing and at favourable terms for these or other
purposes including general working capital purposes.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For the foreseeable
future, as existing properties are explored, evaluated and
developed, the Company will continue to seek capital through the
issuance of equity, strategic alliances or joint ventures, and
debt, of which the Company currently has none.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company expects
to continue requiring cash for operations and exploration and
evaluation activities as expenditures are incurred while no
revenues are generated. Therefore, its continuance as a going
concern is dependent upon its ability to obtain adequate financing
to fund future exploration, evaluation and development of the
Gibellini Project and the potential construction of a mine, in
order to reach profitable levels of operation. The Company has
managed its working capital by controlling its spending on its
properties and operations. Due to the ongoing planned advancement
of project milestones for the Gibellini Project and for the
Pulacayo Project, the Company will continue to incur costs
associated with exploration, evaluation and development activities,
while no revenues are being generated.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On September 6,
2019, the Company closed a non-brokered private placement and
raised gross proceeds of $2,600,000 through the issuance of
13,000,000 Shares at a price of $0.20 per Share.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 21, 2019
the Company closed a non-brokered private placement and raised
gross cash proceeds of $3,900,000 through the issuance of 9,750,000
Shares at a price of $0.40 per Share. Proceeds were expected to be
used for the Company&#x2019;s mineral project development and for
general working capital purposes.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The consolidated
financial statements have been prepared on a going concern basis
which assumes that the Company will be able to realize its assets
and discharge its liabilities in the normal course of business for
the foreseeable future. The Company&#x2019;s ability to continue as
a going concern is dependent upon the continued support from its
shareholders, the discovery of economically recoverable reserves,
and the ability of the Company to obtain the financing necessary to
complete development and achieve profitable operations in the
future. The outcome of these matters cannot be predicted at this
time.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">48</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Contractual Commitments</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
commitments related to mineral properties are disclosed in Note 14
to the Annual Financial Statements. The Company has no commitments
for capital expenditures. The Company&#x2019;s other commitments
include a rental commitment on Vancouver and Nevada office
premises:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-size:13px;font-family:Times New Roman;">2020</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-size:13px;font-family:Times New Roman;">2021</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-size:13px;font-family:Times New Roman;">2022</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-size:13px;font-family:Times New Roman;">Total</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Office Lease
Obligations</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">45,489</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,574</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,540</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">79,603</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">45,489</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">24,574</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">9,540</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">79,603</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Capital Risk Management</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
considers its capital structure to consist of Share capital, stock
options and Share purchase warrants. The Company manages its
capital structure and makes adjustments to it, based on the funds
available to the Company, in order to support the exploration and
development of its projects and to pursue and support growth
opportunities. The Board of Directors does not establish
quantitative returns on capital criteria for management. The
Company is not subject to externally imposed capital requirements.
There has been no change in the Company&#x2019;s approach to capital
management during the year ended December 31, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Management is aware
that market conditions, driven primarily by vanadium, silver, other
metal and coal prices, may limit the Company&#x2019;s ability to
raise additional funds. These factors, and others, are considered
when shaping the Company&#x2019;s capital management
strategy.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
11.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-variant: small-caps; font-size: 13px; font-family: Times New Roman">
CONTINGENCIES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company accrues
for liabilities when they are probable and the amount payable can
be reasonably estimated.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">ASC
Tax Claim</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On January 2, 2015,
the Company acquired ASC Holdings Limited and ASC Bolivia LDC
(which together, hold ASC Bolivia LDC Sucursal Bolivia, which in
turn, held Apogee Silver Ltd.&#x2019;s (&#x201C;<font style="font-weight: bold">Apogee</font>&#x201D;) joint venture interest in
the Pulacayo Project) and Apogee Minerals Bolivia S.A. Pursuant to
the terms of the Agreement, Prophecy agreed to assume all
liabilities of these former Apogee subsidiaries, including legal
and tax liabilities associated with the Pulacayo Project.&#xA0;
During Apogee&#x2019;s financial year ended June 30, 2014, it
received notice from the Servicio de Impuestos Nacionales, the
national tax authority in Bolivia, that ASC Bolivia LDC Sucursal
Bolivia, now the Company&#x2019;s wholly-owned subsidiary, owed
approximately Bs42,000,000 in taxes, interest and penalties
relating to a historical tax liability in an amount originally
assessed at approximately $760,000 in 2004, prior to Apogee
acquiring the subsidiary in 2011.&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Apogee disputed the
assessment and disclosed to the Company that it believed the notice
was improperly issued.&#xA0; The Company continued to dispute the
assessment and hired local legal counsel to pursue an appeal of the
tax authority&#x2019;s assessment on both substantive and procedural
grounds. The Company received a positive Resolution issued by the
Bolivian Constitutional Court&#xA0;that among other things,
declared null and void the previous Resolution of the Bolivian
Supreme Court issued in 2011 (that imposed the tax liability on ASC
Bolivia LDC Sucursal Bolivia) and sent the matter back to the
Supreme court to consider and issue a new resolution.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia&#x2019;s General Revenue Authority against the
Company&#x2019;s Bolivian subsidiary as&#xA0;not
proven.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Resolution is final and binding. Hence neither Prophecy nor
Prophecy&#x2019;s Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">49</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, the Company and legal counsel reassessed
the status of tax rulings and determined that the probability of a
re-issuance of a tax claim against the Company in connection with
the above was remote. As a result, the Company has written off the
tax liability and recorded a debt settlement gain in the amount of
$7,952,700 on its consolidated statements of operations and
comprehensive loss.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Red
Hill Tax Claim</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2014, the Company&#x2019;s wholly-owned
subsidiary, Red Hill Mongolia LLC (&#x201C;<font style="font-weight: bold">Red Hill</font>&#x201D;) was issued a letter
from the Sukhbaatar District Tax Division notifying it of the
results of the Sukhbaatar District Tax Division&#x2019;s VAT
inspection of Red Hill&#x2019;s 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill&#x2019;s claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division&#x2019;s findings as the tax assessment appeared to the
Company to be unfounded.&#xA0; The Company disputed the Sukhbaatar
District Tax Division&#x2019;s assessment and submitted a complaint
to the Capital City Tax Tribunal.&#xA0;&#xA0;On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill&#x2019;s VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Due to the
uncertainty of realizing the VAT balance, the Company has recorded
an impairment charge for the full VAT balance in the year ended
December 31, 2015.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">In <font style="color: #000000">June 2019, the Company received a positive
resolution issued from the</font> Capital City Tax Tribunal,
<font style="color: #000000">which is binding and final, affirmed
Red Hill&#x2019;s outstanding VAT credit of 1.169 billion MNT
resulted from past mining equipment purchases. The VAT credit can
be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia&#x2019;s Ministry of Finance within 12 to 24 months
processing time. Due to the risk associated with the VAT credit,
the Company has provided a full valuation provision against the
balance.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
12.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-variant: small-caps; font-size: 13px; font-family: Times New Roman">
ENVIRONMENTAL REGULATIONS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
exploration activities are subject to various government regulation
in the United States, Canada, Mongolia and Bolivia. These laws and
regulations are continually changing and are generally becoming
more restrictive. The Company conducts its operations so as to
protect public health and the environment, and believes its
operations are materially in compliance with all applicable laws
and regulations. The Company has made, and expects to continue to
make in the future, filings and expenditures to comply with such
laws and regulations.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
13.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-variant: small-caps; font-size: 13px; font-family: Times New Roman">
RELATED PARTY DISCLOSURES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Balances and
transactions between the Company and its subsidiaries have been
eliminated on consolidation and are not disclosed here. The Company
had related party transactions with the following companies,
related by way of directors and key management
personnel:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Linx Partners Ltd.,
a private company controlled by John Lee, Director, CEO and
Executive Chairman of Prophecy, provides management and consulting
services to the Company.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, a director of the
Company, provides consulting services to the Company.</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Sophir Asia Ltd., a
private company controlled by Masa Igata, a director of the
Company, provides consulting services to the Company.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">50</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A summary of
amounts paid to related parties is as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Year Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Related parties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Directors
and officers</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,685,242</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,265,152</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">307,425</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Linx
Partners Ltd.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">371,000</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">401,044</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">363,781</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">MaKevCo
Consulting Inc.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,400</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">21,200</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">23,600</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Sophir
Asia Ltd.</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,600</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,100</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">19,700</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">A summary of the
expenses by nature among the related parties is as
follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Year Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Related parties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Consulting
and management fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">218,500</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">268,456</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">247,525</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Directors'
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">103,805</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">70,378</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,600</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Mineral
properties</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,171,585</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">631,610</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">201,875</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Salaries</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">603,352</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">736,052</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">204,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">2,097,242</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,706,496</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">714,506</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Transactions with
related parties have been measured at the fair value of services
rendered. Transactions between the Company and its subsidiaries are
eliminated on consolidation; therefore, they are not disclosed as
related party transactions.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at December 31,
2019, amounts due to related parties were $30,533 (2018 - $4,634;
2017 - $160,503).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">On October 10,
2018, the Company announced the appointment of Gerald Panneton as
the Company&#x2019;s President and new Chief Executive Officer,
replacing John Lee, who remains as Chairman of the Board.
<font style="color: #000000; background-color: #ffffff">Pursuant to
the terms of Mr. Panneton&#x2019;s employment agreement with the
Company, the Company has granted to Mr. Panneton 1,000,000 with a
fair value of $0.35 per Share of bonus shares and 500,000 incentive
stock options exercisable at a price of $0.26 per Common share for
a term of five years expiring on October 10, 2023 and which vest at
12.5% per quarter for the first two years following the date of
grant.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the years
ended December 31, 2012 and 2013, the Company shared administrative
assistance, office space, and management with Nickel Creek Platinum
Corp. (&#x201C;<font style="font-weight: bold">Nickel</font>&#x201D;)
pursuant to a Service Agreement dated January 1, 2012, consisting
of fixed monthly fees of $40,000. During the year ended December
31, 2018, the Company received $50,000 as a debt settlement in
satisfaction of an amount owing from Nickel for services rendered
to Nickel and expenses incurred on behalf of Nickel, which was
reflected on the consolidated statement of operations.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Key management
personnel are those persons having authority and responsibility for
planning, directing and controlling the activities of the Company,
including directors of the Company. The amounts due to related
parties is as follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td colspan="3" rowspan="1" style="vertical-align:bottom;width:36%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:94%;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Year Ended December 31,</font></div>
</font><font style="vertical-align:bottom;width:3%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Key Management Personnel</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: right"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</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:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Salaries
and short term benefits</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">696,751</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">775,064</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">204,506</font><font style="text-align: left; color:#000000;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:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Directors'
fees</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">103,805</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">70,378</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">60,600</font><font style="text-align: left; color:#000000;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:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Share-based
payments</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">431,037</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">621,339</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">&#xA0;</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">596,232</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font>&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,231,593</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">1,466,781</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">861,338</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">51</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
14.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Critical accounting
estimates used in the preparation of the Annual Financial
Statements include determining the carrying value of mineral
properties exploration and evaluation projects and property and
equipment, assessing the impairment of long-lived assets,
determination of environmental obligation provision for closure and
reclamation, determining deferred income taxes, and the valuation
of Share-based payments. These estimates involve considerable
judgment and are, or could be, affected by significant factors that
are out of the Company&#x2019;s control.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Readers are
encouraged to read the significant accounting policies and
estimates as described in the Company&#x2019;s Annual Financial
Statements for the year ended December 31, 2019 (Refer to Notes 4,
5, and 6 to the Annual Financial Statements). The Company&#x2019;s
Annual Financial Statements have been prepared using the going
concern assumption.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Significant
Accounting Judgments and Estimates</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company bases
its estimates and assumptions on current and various other factors
that it believes to be reasonable under the circumstances.
Management believes the estimates are reasonable; however, actual
results could differ from those estimates and could impact future
results of operations and cash flows. The areas which require
management to make significant judgements, estimates and
assumptions in determining carrying values include, but are not
limited to:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The significant
judgments that the Company&#x2019;s management has made in the
process of applying the Company&#x2019;s accounting policies, apart
from those involving estimation uncertainties (Annual financial
statements 5.2), that have the most significant effect on the
amounts recognized in the Annual Financial Statements include, but
are not limited to:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Functional currency
determination</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The functional
currency for each of the Company&#x2019;s subsidiaries is the
currency of the primary economic environment and the Company
reconsiders the functional currency of its entities if there is a
change in events and conditions which determined the primary
economic environment. Management has determined the functional
currency of all entities to be the Canadian dollar.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Economic
recoverability and probability of future economic benefits of
exploration, evaluation and development costs</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Management has
determined that exploratory drilling, evaluation, development and
related costs incurred which have been capitalized are economically
recoverable. Management uses several criteria in its assessments of
economic recoverability and probability of future economic benefit
including geologic and metallurgic information, history of
conversion of mineral deposits to proven and probable reserves,
scoping, prefeasibility and feasibility studies, assessable
facilities, existing permits and life of mine plans.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Management has
determined that during the year ended December 31, 2019, none of
the Company&#x2019;s silver and vanadium projects have reached
technical feasibility and commercial viability and therefore remain
within Mineral Properties on the Statement of Financial
Position.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;&#xA0;Impairment
(recovery) assessment of deferred exploration
interests</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
considers both external and internal sources of information in
assessing whether there are any indications that mineral property
interests are impaired. External sources of information the Company
considers include changes in the market, economic and legal
environment in which the Company operates that are not within its
control and affect the recoverable amount of mineral property
interest. Internal sources of information the Company considers
include the manner in which mineral properties and plant and
equipment are being used or are expected to be used and indications
of economic performance of the assets.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">52</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(d)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Deferred Tax
Liability</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Judgement is
required to determine which types of arrangements are considered to
be a tax on income in contrast to an operating cost. Judgement is
also required in determining whether deferred tax liabilities are
recognised in the statement of financial position. Deferred tax
liabilities, including those arising from un-utilised tax gains,
require management to assess the likelihood that the Company will
generate sufficient taxable losses in future periods, in order to
offset recognised deferred tax liabilities. Assumptions about the
generation of future taxable losses depend on management&#x2019;s
estimates of future cash flows. These estimates of future taxable
losses are based on forecast cash flows from operations (which are
impacted by production and sales volumes, commodity prices,
reserves, operating costs, closure and rehabilitation costs,
capital expenditure, and other capital management transactions) and
judgement about the application of existing tax laws in each
jurisdiction. To the extent that future cash flows and taxable
losses differ significantly from estimates, the ability of the
Company to offset the net deferred tax liabilities recorded at the
reporting date could be impacted.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="color: #000000; font-size: 13px; font-family: Times New Roman">(e)</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">&#xA0;Mineral
reserves</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
recoverability of the carrying value of the mineral properties is
dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of
interest.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(f)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Depreciation</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Significant
judgment is involved in the determination of useful life and
residual values for the computation of depreciation, depletion and
amortization and no assurance can be given that actual useful lives
and residual values will not differ significantly from current
assumptions.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(g)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;Impairment</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The carrying value of long-lived assets are
reviewed each reporting period to determine whether there is any
indication of impairment. If the carrying amount of an asset
exceeds its recoverable amount, the asset is impaired, and an
impairment loss is recognized in the consolidated statement of
operations. The assessment of fair values, including those of the
cash generating units (the smallest identifiable group of assets
that generates cash inflows that are largely independent of the
cash inflow from other assets or groups of assets)
(&#x201C;</font><font style="font-weight: bold; color: #000000">CGUs</font><font style="color: #000000">&#x201D;) for purposes of testing goodwill, require
the use of estimates and assumptions for recoverable production,
long-term commodity prices, discount rates, foreign exchange rates,
future capital requirements and operating performance. Changes in
any of the assumptions or estimates used in determining the fair
value of goodwill or other assets could impact the impairment
analysis.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(h)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;Allowance for
doubtful accounts, and the recoverability of receivables and
prepaid expense amounts.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Significant
estimates are involved in the determination of recoverability of
receivables and no assurance can be given that actual proceeds will
not differ significantly from current estimations. Similarly,
significant estimates are involved in the determination of the
recoverability of services and/or goods related to the prepaid
expense amounts, and actual results could differ significantly from
current estimations.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 48px">
<font style="font-size: 13px; font-family: Times New Roman">(i)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Provision for
closure and reclamation</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
assesses its mineral properties&#x2019; rehabilitation provision at
each reporting date or when new material information becomes
available. Exploration, development and mining activities are
subject to various laws and regulations governing the protection of
the environment. In general, these laws and regulations are
continually changing, and the Company has made, and intends to make
in the future, expenditures to comply with such laws and
regulations. Accounting for reclamation obligations requires
management to make estimates of the future costs that the Company
will incur to complete the reclamation work required to comply with
existing laws and regulations at each location. Actual costs
incurred may differ from those amounts estimated.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">53</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Also, future
changes to environmental laws and regulations could increase the
extent of reclamation and remediation work required to be performed
by the Company. Increases in future costs could materially impact
the amounts charged to operations for reclamation and remediation.
The provision represents management&#x2019;s best estimate of the
present value of the future reclamation and remediation obligation.
The actual future expenditures may differ from the amounts
currently provided.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(f)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Share-based
payments</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Management uses
valuation techniques in measuring the fair value of share purchase
options granted. The fair value is determined using the Black
Scholes option pricing model which requires management to make
certain estimates, judgement, and assumptions in relation to the
expected life of the share purchase options and share purchase
warrants, expected volatility, expected risk-free rate, and
expected forfeiture rate. Changes to these assumptions could have a
material impact on the Annual Financial Statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(f)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Contingencies</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The assessment of
contingencies involves the exercise of significant judgment and
estimates of the outcome of future events. In assessing loss
contingencies related to legal proceedings that are pending against
the Company and that may result in regulatory or government actions
that may negatively impact the Company&#x2019;s business or
operations, the Company and its legal counsel evaluate the
perceived merits of the legal proceeding or unasserted claim or
action as well as the perceived merits of the nature and amount of
relief sought or expected to be sought, when determining the
amount, if any, to recognize as a contingent liability or when
assessing the impact on the carrying value of the Company&#x2019;s
assets. Contingent assets are not recognized in the Annual
Financial Statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(g)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Fair value
measurement</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
measures financial instruments at fair value at each reporting
date. The fair values of financial instruments measured at
amortized cost are disclosed in Note 20. Also, from time to time,
the fair values of non-financial assets and liabilities are
required to be determined, e.g., when the entity acquires a
business, completes an asset acquisition or where an entity
measures the recoverable amount of an asset or cash-generating unit
at fair value less costs of disposal. Fair value is the price that
would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the
measurement date.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The fair value of
an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best
interest. A fair value measurement of a non-financial asset takes
into account a market participant&#x2019;s ability to generate
economic benefits by using the asset in its highest and best use or
by selling it to another market participant that would use the
asset in its highest and best use. The Company uses valuation
techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of
unobservable inputs. Changes in estimates and assumptions about
these inputs could affect the reported fair value.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Same
accounting policies as annual audited consolidated financial
statements</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
followed the same accounting policies and methods of computation in
the Annual Financial Statements for the year ended December 31,
2019 as followed in the consolidated financial statements for the
year ended December 31, 2018. The Company describes its significant
accounting policies as well and changes in accounting policies in
Notes 4 and 6 of Annual Financial Statements. No significant
changes in accounting policies have occurred other that the
implantation of a new IFS as issued by the IASB.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Basis
of consolidation</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Annual
Financial Statements include the accounts of the Company and its
controlled subsidiaries. All material intercompany balances and
transactions have been eliminated. The Company&#x2019;s the
significant subsidiaries at the date of these MD&amp;A are
presented in the table below</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_mda003.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">54</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
15.</font></div>
<div style="text-align: left; display: table-cell"><font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
ACCOUNTING CHANGES AND RECENT ACCOUNTING
PRONOUNCEMENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">Effective January 1, 2019,</font> the Company, for
the first time, has applied IFRS 16 <font style="font-style: italic">Leases</font> (as issued by the IASB in
January 2016) effective January 1, 2019, using the modified
retrospective approach. The modified retrospective approach does
not require restatement of prior period financial information and
continues to be reported under IAS 17, <font style="font-style: italic">Leases</font> and IFRIC 4, <font style="font-style: italic">Determining Whether an Arrangement Contains a
Lease</font>. IFRS 16 introduces new or amended requirements with
respect to lease accounting. It introduces changes to the lessee
accounting by removing the distinction between operating and
finance leases and requiring the recognition of a right-of-use
asset and a lease liability at the lease commencement for all
leases, except for short-term leases and leases of low value
assets. In contrast to lessee accounting, the requirements for
lessor accounting have remained largely unchanged.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
leases consist of corporate office lease arrangements. The Company,
on adoption of IFRS 16, recognized lease liabilities in relation to
office leases which had previously been classified as operating
leases under the principles of IAS 17. In relation, under the
principles of the new standard these leases are measured as lease
liabilities at the present value of the remaining lease payments,
discounted using the Company&#x2019;s incremental borrowing rate as
at January 1, 2019. The associated right-of-use asset has been
measured at the amount equal to the lease liability on January 1,
2019. The right-of-use asset is subsequently depreciated from the
commencement date to the earlier of the end of the lease term, or
the end of the useful life of the asset (refer to Note 12 and Note
16).</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Furthermore, the
right-of-use asset may be reduced due to impairment
losses.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
reconciles the Company&#x2019;s operating lease commitments at
December 31, 2018, as previously disclosed in the Company&#x2019;s
Annual Financial Statements, to the lease liability recognized on
adoption of IFRS 16 at January 1, 2019:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><img src="silef_mda004.jpg"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">For more details
please refer to Notes 6, 12 and 16 to the Company&#x2019;s Annual
Financial Statements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
16.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
FINANCIAL INSTRUMENTS AND RELATED RISKS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Board of
Directors, through the Audit Committee is responsible for
identifying the principal risks of the Company and ensuring that
risk management systems are implemented. The Company manages its
exposure to financial risks, including liquidity risk, foreign
exchange rate risk, interest rate risk, and credit risk in
accordance with its risk management framework. The Company&#x2019;s
Board of Directors reviews The Company&#x2019;s policies on an
ongoing basis.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 48px; margin-right: 0px; text-indent: -48px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">Financial Instruments</font> (Note 21 to the
Annual Financial Statements)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The following table
sets forth the Company&#x2019;s financial assets that are measured
at fair value on a recurring basis by level within the fair value
hierarchy. The fair value hierarchy gives the highest priority to
Level 1 inputs and the lowest priority to Level 3 inputs. Table 35
sets forth The Company&#x2019;s financial assets measured at fair
value by level within the fair value hierarchy.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">55</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;border-top:solid 1px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Level 1</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Level 2</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Level 3</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;color:#000000;">
Total</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Financial
assets</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents, December 31, 2019</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,017,704</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#ffffff;">
<td style="vertical-align:bottom;width:52%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents, December 31, 2018</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; color:#000000;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; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,304,097</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;display:inline-block;width:10%;font-size:13px;">&#xA0;</font></div>
</td>
</tr><tr style="background-color:#cceeff;">
<td style="vertical-align:bottom;width:52%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash
and cash equivalents, December 31, 2017</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">-</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-family:Times New Roman;font-size:13px;">$</font><font style="text-align: right; color:#000000;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-family:Times New Roman;font-size:13px;">4,100,608</font><font style="text-align: left; color:#000000;font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Categories
of financial instruments</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company
considers that the carrying amount of all its financial assets and
financial liabilities measure at amortized cost approximates their
fair value due to their short term nature. Restricted cash
equivalents approximate fair value due to the nature of the
instrument. The Company does not offset financial assets with
financial liabilities. There were no transfers between Level 1, 2
and 3 for the year ended December 31, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
financial assets and financial liabilities are categorized as
follows:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px;">
<table cellpadding="0" cellspacing="0" style="text-align: left; font-family:inherit;margin-right:0px;margin-left:0px;width:100%;font-size:inherit;">
<tr>
<td rowspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;border-top:solid 1px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2019</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2018</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
<td rowspan="1" style="vertical-align:bottom;width:12%;border-top:solid 1px #000000;">
<div><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">
&#xA0;</font><font style="vertical-align:bottom;width:80%;border-bottom:solid 2px #000000;display:inline-block;">
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">December
31,</font></div>
<div style="text-align: center"><font style="font-weight:bold;font-size:13px;font-family:Times New Roman;">2017</font></div>
</font><font style="vertical-align:bottom;width:10%;border-bottom:solid 2px #000000;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Fair
value through profit or loss</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font><font style="vertical-align:bottom;width:80%;display:inline-block;">
<div><font style="font-size:13px;font-family:Times New Roman;">&#xA0;</font></div>
</font><font style="vertical-align:bottom;width:10%;display:inline-block;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Cash</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;">3,017,704</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">5,304,097</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">4,100,608</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>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Fair
value through other comprehensive income</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Marketable
securities</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">-</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;">205,600</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>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Amortized
cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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: rgb(204, 238, 255);">
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Receivables</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;">246,671</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;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">36,399</font><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; vertical-align:bottom;width:10%;font-size:13px;font-family:Times New Roman;display:inline-block;">&#xA0;</font><font style="text-align: left; vertical-align:bottom;width:5%;font-size:13px;font-family:Times New Roman;display:inline-block;">$</font><font style="text-align: right; vertical-align:bottom;width:75%;font-size:13px;font-family:Times New Roman;display:inline-block;">34,653</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>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Restricted
cash equivalents</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">34,500</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">3,298,875</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">5,374,996</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">4,375,361</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">Amortized
cost</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;">&#xA0;</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;">&#xA0;</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;">&#xA0;</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: rgb(204, 238, 255);">
<td style="vertical-align: bottom; width: 64%;">
<div>
<div>
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Accounts payable
and accrued liabilities</font></div>
</div>
</div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 10%;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">2,420,392</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 10%;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 10%;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">1,636,786</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 10%;">&#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; font-size: 13px; display: inline-block; width: 10%;">&#xA0;</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 5%; font-size: 13px;">$</font><font style="text-align: right; font-family: Times New Roman; vertical-align: bottom; display: inline-block; width: 75%; font-size: 13px;">1,895,983</font><font style="text-align: left; font-family: Times New Roman; vertical-align: bottom; font-size: 13px; display: inline-block; width: 10%;">&#xA0;</font></div>
</td>
</tr><tr>
<td style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:24px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">Lease
liability&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$&#xA0;</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">52,818</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$&#xA0;</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$&#xA0;</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">-</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr><tr style="background-color: rgb(204, 238, 255);">
<td colspan="1" style="vertical-align:bottom;width:64%;border-bottom:solid 2px #000000;">
<div style="text-align: left; text-indent:0px;margin-right:0px;margin-left:0px;"><font style="font-size: 13px; font-family: Times New Roman">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">2,420,392</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
<td style="vertical-align:bottom;width:12%;">
<div><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:5%;font-size:13px;">$</font><font style="text-align: right; font-family:Times New Roman;border-bottom:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,636,786</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#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;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font><font style="text-align: left; font-family:Times New Roman;border-bottom:solid 2px #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:solid 2px #000000;vertical-align:bottom;display:inline-block;width:75%;font-size:13px;">1,895,983</font><font style="text-align: left; font-family:Times New Roman;vertical-align:bottom;font-size:13px;display:inline-block;width:10%;border-bottom:solid 2px #000000;">&#xA0;</font></div>
</td>
</tr></table>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Related
Risks</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 36px">
<font style="font-size: 13px; font-family: Times New Roman">(a)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Liquidity
risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Liquidity risk is
the risk that an entity will be unable to meet its financial
obligations as they fall due. The Company manages liquidity risk by
preparing cash flow forecasts of upcoming cash requirements. As at
December 31, 2019, the Company had a cash balance of $3,017,704
(2018 &#x2013; $5,304,097; 2017&#xA0;&#x2013; $4,100,608). As at
December 31, 2019 the Company had current liabilities of $2,452,677
(2018&#xA0;- $1,636,786; 2017&#xA0;- $1,895,983), which have
contractual maturities of 90 days or less.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company has a
planning and budgeting process in place by which it anticipates and
determines the funds required to support normal operation
requirements as well as the growth and development of its mineral
property interests. The Company coordinates this planning and
budgeting process with its financing activities through the capital
management process in normal circumstances.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(b)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Credit
risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Credit risk is the
risk that one party to a financial instrument will fail to
discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and restricted cash equivalents and receivables,
net of allowances. The carrying amount of assets included on the
statements of financial position represents the maximum credit
exposure.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">56</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 12px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(c)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Market
risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 36px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The significant
market risks to which the Company is exposed are interest rate
risk, foreign currency risk, and commodity and equity price risk.
The objective of market risk management is to manage and control
market risk exposures within acceptable limits, while maximizing
returns.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#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-size: 13px; font-family: Times New Roman">(i)</font></div>
<div style="text-align: justify; display: table-cell; margin-left: 0px; text-indent: 0px; margin-right: 0px;">
<font style="font-size: 13px; font-family: Times New Roman">Interest rate
risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company&#x2019;s cash and restricted cash equivalents primarily
include highly liquid investments that earn interest at market
rates that are fixed to maturity.&#xA0;Due to the short&#x2010; term
nature of these financial instruments, fluctuations in market rates
do not have significant impact on the fair values of the financial
instruments as of December 31, 2019. The Company manages interest
rate risk by maintaining an investment policy that focuses
primarily on preservation of capital and liquidity.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 36px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(ii)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Foreign currency
risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company is
exposed to foreign currency risk to the extent that monetary assets
and liabilities held by the Company are not denominated in Canadian
dollars.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company has
exploration and development projects in the United States, Mongolia
and Bolivia and undertakes transactions in various foreign
currencies. The Company is therefore exposed to foreign currency
risk arising from transactions denominated in a foreign currency
and the translation of financial instruments denominated in US
dollars, Mongolian tugrik, and Bolivian boliviano into its
functional and reporting currency, the Canadian
dollar.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px;"><font style="font-size: 13px; font-family: Times New Roman">Based on the above,
net exposures as at December 31, 2019, with other variables
unchanged, a 10% (2018 &#x2013; 10%; 2017 &#x2013; 10%) strengthening
(weakening) of the Canadian dollar against the Mongolian tugrik
would impact net loss with other variables unchanged by $144,000. A
10% strengthening (weakening) of the Canadian dollar against the
Bolivian boliviano would impact net loss with other variables
unchanged by $2,000. A 10% strengthening (weakening) of the US
dollar against the Canadian dollar would impact net loss with other
variables unchanged by $60,000. The Company currently does not use
any foreign exchange contracts to hedge this currency
risk.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 36px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px; font-family: Times New Roman">(iii)</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Commodity and
equity risk</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Commodity price
risk is defined as the potential adverse impact on earnings and
economic value due to commodity price movements and volatilities.
Commodity prices fluctuate on a daily basis and are affected by
numerous factors beyond the Company&#x2019;s control. The supply and
demand for these commodities, the level of interest rates, the rate
of inflation, investment decisions by large holders of commodities
including governmental reserves and stability of exchange rates can
all cause significant fluctuations in prices. Such external
economic factors are in turn influenced by changes in international
investment patterns and monetary systems and political
developments.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company is also
exposed to price risk with regards to equity prices. Equity price
risk is defined as the potential adverse impact on the
Company&#x2019;s earning due to movements in individual equity
prices or general movements in the level of the stock
market.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 60px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company closely
monitors commodity prices, individual equity movements and the
stock market to determine the appropriate course of action to be
taken by the Company. Fluctuations in value may be
significant.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">57</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
17.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
RISKS AND UNCERTAINTIES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
business is the exploration, evaluation and development of mining
properties. Thus, the Company&#x2019;s operations are speculative
due to the high-risk nature of its business. The following list
details existing and future material risks to the Company. The
risks described below are not listed in any particular order and
are not meant to be exhaustive. Additional risks and uncertainties
not currently known to the Company, or those that it currently
deems to be immaterial, may become material and adversely affect
the Company. The realization of any of these risks may materially
and adversely impact the Company&#x2019;s business, financial
condition or results of operations and/or the market price of the
Company&#x2019;s securities. Each of these risk factors is discussed
in more detail under &#x201C;Risk Factors&#x201D; in the
Company&#x2019;s AR for the year ended December 31, 2019, which is
available under the Company&#x2019;s SEDAR profile at <font style="color: #0000ff; text-decoration: underline">www.sedar.com</font>.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Global outbreaks
including coronavirus;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">History of net
losses;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Capital costs,
operating costs, production and economic returns;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Exploration and
development risks;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">No history of
profitable mineral production;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Mineral reserves /
mineral resources;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Environmental
risks;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Foreign
operations;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Reform of the
General Mining Law in the U.S;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Government
approvals and permits;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Property
interests;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Mineral claims,
mining leases, licenses and permitting;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Title
risks;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">First
Nation;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Competition;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Inherent
risks;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Reliance on key
personnel;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Volatility of
mineral prices,</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Currency
fluctuations;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Global and local
financial conditions;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Third-party
contractors;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Andy-bribery
legislations;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Uninsured
risks;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">No dividend
payments;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Related party
transactions;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Litigation and
regulatory proceedings;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Cyber
security;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Foreign private
issuer;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Non-Canadian
investors;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Emerging growing
company;</font></div>
</div>
</div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">Additional
risks.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
18.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
DISCLOSURE CONTROLS AND PROCEDURES</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">Disclosure controls
and procedures are designed to provide reasonable assurance that
information required to be disclosed by The Company in its annual
filings, interim filings or other reports filed or submitted by it
under securities legislation is recorded, processed, summarized and
reported within the time periods specified in the securities
legislation and include controls and procedures designed to ensure
that information required to be disclosed by the Company in its
annual filings, interim filings or other reports filed or submitted
under securities legislation is accumulated and communicated to the
Company&#x2019;s management, including its Chief Executive Officer
and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">58</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">The Company&#x2019;s
disclosure committee is comprised of the Chief Executive Officer
and senior members of management. The disclosure committee&#x2019;s
responsibilities include determining whether information is
material and ensuring the timely disclosure of material information
in accordance with securities laws. The Board of Directors is
responsible for reviewing the Company&#x2019;s disclosure policy,
procedures and controls to ensure that it addresses the
Company&#x2019;s principal business risks, and changes in operations
or structure, and facilitates compliance with applicable
legislative and regulatory reporting requirements.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Chief Executive Officer and Chief Financial Officer, after
participating with the Company&#x2019;s management in evaluating the
effectiveness of the Company&#x2019;s disclosure controls and
procedures have concluded that the Company&#x2019;s disclosure
controls and procedures were effective during the year ended
December 31, 2019.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; color: #000000; font-size: 13px; font-family: Times New Roman">
Design of Internal Controls over Financial Reporting</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s management, with the participation of the Chief
Executive Officer and Chief Financial Officer, is responsible for
establishing and maintaining adequate internal control over
financial reporting. The Company&#x2019;s internal control over
financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with IFRS. The Company&#x2019;s internal control over
financial reporting includes those policies and procedures
that:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">pertain to the
maintenance of records that, in reasonable detail accurately and
fairly reflect the transactions, acquisition and disposition of
assets and liabilities;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of the financial statements in accordance with IFRS and
that receipts and expenditures are being made only in accordance
with the authorization of management and directors of The Company;
and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman">provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of assets, and incurrence of
liabilities, that could have a material effect on the financial
statements.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">The Company&#x2019;s management, with the
participation of the Chief Executive Officer and Chief Financial
Officer, assessed the effectiveness of the Company&#x2019;s internal
control over financial reporting using the criteria set forth in
the</font> <font style="font-style: italic; color: #000000">Internal Control &#x2013;
Integrated Framework</font> <font style="color: #000000">(2013)
issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this assessment, management concluded that the
Company&#x2019;s internal control over financial reporting was
effective during the year ended December 31,
2019.</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #7b4b23; font-size: 13px; font-family: Times New Roman">
19.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #7b4b23; font-weight: bold; font-size: 13px; font-family: Times New Roman">
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">There
were no changes to the Company&#x2019;s internal control over
financial reporting during the year ended December 31, 2019, that
have materially affected, or are reasonably likely to materially
affect, the Company&#x2019;s internal control over financial
reporting.</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Limitations
of controls and procedures</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="color: #000000; font-size: 13px; font-family: Times New Roman">The
Company&#x2019;s management, including the Chief Executive Officer
and the Chief Financial Officer, believe that any disclosure
controls and procedures or internal controls over financial
reporting, 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, they
cannot provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been prevented
or detected. These inherent limitations include the realities that
judgements 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 unauthorized
override of the control. The design of any systems of controls also
is 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. Accordingly, 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: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;<br></font></div>
<div id="pgbrk" style="width: 100%; margin-left: 0px; text-indent: 0px; margin-right: 0px">
<div id="ftr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<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 id="pn" style="text-align: center"><font style="font-family: Times New Roman; font-size: 13px">59</font></div>
</div>
<div id="pb" style="margin-left: 0px; margin-right: 0px; page-break-after: always; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000"></div>
<div id="hdr" style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-weight: bold">SILVER ELEPHANT MINING CORP.</font>
(<font style="font-style: italic; font-size: 13px">Formerly
&#x201C;Prophecy Development Corp.&#x201D;)</font></font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">Management&#x2019;s
Discussion and Analysis of Financial Condition and Results of
Operations</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-weight: bold; font-size: 13px; font-family: Times New Roman">For
the year ended December 31, 2019</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">(Expressed in
Canadian Dollars, except where indicated)</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px; width: 100%; border-bottom: 1px solid #000000"></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
20.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
DISCLOSURE OF OUTSTANDING SHARE DATA</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">As at the date of
this MD&amp;A, the Company had a total of:</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="font-variant: small-caps; color: #000000">122,915,508</font>
Shares outstanding with a recorded value of
$181,722,412;</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">9,442,500</font> stock options outstanding with a
weighted average exercise price the equivalent of $0.30. The
options are exercisable to purchase one Share at prices ranging
from the equivalent of $0.20 to $0.50 and expire between April 2020
and January 2025; and</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table; margin-left: 24px">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-size: 13px">&#x25CF;</font></div>
<div style="text-align: left; display: table-cell"><font style="font-size: 13px; font-family: Times New Roman"><font style="color: #000000">26,666,597 Share purchase</font> warrants
outstanding with a weighted average exercise price the equivalent
of $0.44. The Share purchase warrants are exercisable to purchase
one Share at prices ranging from the equivalent of $0.40 to $0.70
and expire between May 2020 and June 2022.</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; display: table">
<div style="text-align: left; display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; color: #993300; font-size: 13px; font-family: Times New Roman">
21.</font></div>
<div style="text-align: left; display: table-cell"><font style="color: #993300; font-weight: bold; font-size: 13px; font-family: Times New Roman">
OFF-BALANCE SHEET ARRANGEMENTS</font></div>
</div>
</div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font style="font-size: 13px; font-family: Times New Roman">During the year
ended December 31, 2019, The Company was not a party to any
off-balance-sheet arrangements that have, or are reasonably likely
to have, a current or future effect on the results of operations,
financial condition, revenues or expenses, liquidity, capital
expenditures or capital resources 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><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<br>
<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">60</font></div>
</div>
<div id="pb" style="text-align: center; margin-left: 0px; margin-right: 0px; margin-bottom: 6px; width: 100%; height: 1px; background-color: #000000">
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silef_20-f
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM
20-F
☐
REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (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
December 31,
2019
OR
☐
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the transition period
from to
OR
☐
SHELL COMPANY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
Commission file
number:
000-55985
SILVER
ELEPHANT MINING CORP.
(Formerly
"Prophecy Development Corp.")
(Exact
name of Registrant as specified in its charter)
British Columbia, Canada
(Jurisdiction of
incorporation or organization)
Suite 1610 - 409
Granville Street
Vancouver, British Columbia, Canada
V6C 1T2
(Address of
principal executive offices)
Michael
Doolin
Suite
1610 - 409 Granville Street Vancouver, British Columbia, Canada V6C
1T2
Telephone: 604-569-3661, Facsimile: 604-569-3617 Email:
info@silverelef.com
(Name,
Telephone, E-Mail and/or Facsimile number and Address of Company
Contact Person)
Copy of
communications to:
James
Guttman Dorsey & Whitney LLP Brookfield Place 161 Bay Street,
Suite 4310 Toronto, Ontario, Canada M5J 2S1
Telephone:
(416) 367-7370 Facsimile:
(416) 367-7371
Securities
registered or to be registered pursuant to Section 12 (b) of the
Act:
None
Securities
registered or to be registered pursuant to Section 12 (g) of the
Act.
Common Shares without par value
(Title
of Class) 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:
121,299,508
Common Shares as at December 31,
2019
Indicate by check
mark if the registrant is a well-known seasoned issuer, as defined
in Rule 405 of the Securities Act. Yes
☐
No
☒
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
☒
Indicate by check
mark whether the 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 such shorter period that
the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90
days.
Yes
☒
No
☐
Indicate by check
mark whether the registrant has submitted electronically every
Interactive Data File required to be submitted and posted pursuant
to Rule 405 of Regulation S-T (Sec.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
☐
Indicate by check
mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or an emerging growth
company. See the definition of "large accelerated
filer," "accelerated filer," and "emerging
growth company" in Rule 12b-2 of the Exchange
Act.
Large accelerated
filer
☐
Accelerated
filer
☐
Non-accelerated
filer
☒
Emerging growth
company
☒
If an
emerging growth company that prepares its financial statements in
accordance with U.S. GAAP, indicate by check mark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act.
☐
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 By the International
Accounting Standards Board
☒
Other
☐
If
"Other" has been checked in response to 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
☒
TABLE
OF CONTENTS
Page
PART
I
9
ITEM
1.
IDENTITY OF
DIRECTORS, SENIOR MANAGEMENT AND ADVISERS
9
ITEM
2
OFFER
STATISTICS AND EXPECTED TIMETABLE
9
ITEM
3.
KEY
INFORMATION
9
A.                 Selected
Financial Data
9
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
19
A.                 History
and Development of the Company
19
B.                 Business
Overview
26
C.                 Organizational
Structure
30
D.                 Property,
Plants and Equipment
30
ITEM
4A.                 UNRESOLVED
STAFF COMMENTS
67
ITEM
5.
OPERATING AND
FINANCIAL REVIEW AND PROSPECTS
67
A.                 Operating
Results
67
B.                 Liquidity
and Capital Resources
70
C.                 Research
and Development, Patents and Licenses, etc.
74
D.                 Trend
Information
74
E.                 Off-Balance
Sheet Arrangements
74
F.                 Tabular
Disclosure of Contractual Obligations
75
G.                 Safe
Harbor
75
ITEM
6.
DIRECTORS, SENIOR
MANAGEMENT AND EMPLOYEES
75
A.                 Directors
and Senior Management
75
B.                 Compensation
82
C.                 Board
Practices
84
D.                 Employees
86
E.                 Share
Ownership
87
ITEM
7.
MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
88
A.                 Major
Shareholders
88
B.                 Related
Party Transactions
89
C.                 Interests
of Experts and Counsel
89
ITEM
8.
FINANCIAL
INFORMATION
90
A.                 Consolidated
Statements and Other Financial Information
90
B.                 Significant
Changes
91
ITEM
9.
THE
OFFER AND LISTING
91
A.                 Offer
and Listing Details
91
B.                 Plan
of Distribution
91
C.                 Markets
91
D.                 Selling
Shareholders
92
E.                 Dilution
92
F.                 Expenses
of the Issuer
92
i
ITEM
10.
ADDITIONAL
INFORMATION
92
A.                 Share
Capital
92
B.                 Memorandum
and Articles of Association
92
C.                 Material
Contracts
95
D.                 Exchange
Controls
95
E.                 Taxation
95
F.                 Dividends
and Paying Agents
102
G.                 Statement
by Experts
102
H.                 Documents
on Display
102
I.                 Subsidiary
Information
102
ITEM
11.
QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK
103
ITEM
12.
DESCRIPTION OF
SECURITIES OTHER THAN EQUITY SECURITIES
104
A. -
C.
104
D.                  American
Depository Receipts
104
PART
II
ITEM
13.
DEFAULTS, DIVIDEND
ARREARAGES AND DELINQUENCIES
105
ITEM
14.
MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF
PROCEEDS
105
ITEM
15.
CONTROLS AND
PROCEDURES
105
A.                 Disclosure
Controls and Procedures
105
B.                 Management's
Annual Report on Internal Control Over Financial
Reporting
105
C.                 Attestation
Report of the Registered Public Accounting Firm
105
D.                 Changes
in Internal Control Over Financial Reporting
106
ITEM
16.
[RESERVED]
106
ITEM
16A.                    AUDIT
COMMITTEE FINANCIAL EXPERT
106
ITEM
16B.                    CODE
OF ETHICS
106
ITEM
16C.                    PRINCIPAL
ACCOUNTANT FEES AND SERVICES
106
ITEM
16D.                    EXEMPTIONS
FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
107
ITEM
16E.                    PURCHASES
OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
PURCHASERS
107
ITEM
16F.                    CHANGE
IN REGISTRANT'S CERTIFYING ACCOUNTANT
107
ITEM
16G.                    CORPORATE
GOVERNANCE
107
ITEM
16H.                    MINE
SAFETY DISCLOSURE
107
PART
III
ITEM
17.
FINANCIAL
STATEMENTS
108
ITEM
18.
FINANCIAL
STATEMENTS
108
ITEM
19.
EXHIBITS
108
ii
INTRODUCTORY
NOTES
GENERAL INFORMATION
In this
annual report on Form 20-F (the "Annual Report"), the
terms "we", "our", "us", the
"Company" refer, unless the context requires otherwise,
to Silver Elephant Mining Corp. and its subsidiaries.
PRESENTATION OF FINANCIAL AND OTHER DATA
We
prepare our audited consolidated financial statements in accordance
with International Financial Reporting Standards, or
"IFRS", as issued by the International Accounting
Standards Board, or the "IASB". The financial
information and related discussion and analysis contained in this
annual report on Form 20-F are presented in United States dollars,
except as otherwise specified. Unless otherwise specified, the
financial information analysis in this annual report on Form 20-F
is based on our consolidated financial statements as of December
31, 2019, 2018 and 2017, included elsewhere in this document.
Percentages and some amounts in this annual report on Form 20-F
have been rounded for ease of presentation. Any discrepancies
between totals and the sums of the amounts listed are due to
rounding.
CURRENCY
Unless
otherwise indicated, all references to "dollars" or
"$" are to Canadian dollars and all references to
"US dollars," "USD" or "USD$"
are to United States of America dollars.
SHARE
CONSOLIDATION AND FORWARD SPLIT
Share Consolidation
On June
7, 2016, we completed a consolidation of our issued and outstanding
common shares on the basis of one post consolidation common share,
option and warrant, for 100 pre- consolidation common shares,
options and warrants, as applicable (we refer to this as the
"Share Consolidation").
Forward Split
On
August 8, 2018, we completed a split of our issued and outstanding
common shares on the basis of ten post-split common shares, options
and warrants for 1 pre-split common share, option and warrant, as
applicable (the "Forward Split").
All
share and per share information in this Annual Report have been
retroactively adjusted to reflect the Forward Split and the
cumulative effect of the Share Consolidation and Forward Split, as
applicable, for all periods presented, unless otherwise
indicated.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain
statements contained in this Annual Report constitute
"forward-looking statements" within the meaning of
United States securities laws and "forward-looking
information" within the meaning of Canadian securities laws
and are intended to be covered by the safe harbors provided by such
regulations (we refer to such forward-looking statements and
forward-looking information collectively as "forward-looking
statements"). Forward-looking statements in this Annual
Report are frequently, but not always, identified by words such as
"expects", "anticipates",
"intends", "believes",
"estimates", "potentially" or similar
expressions, or statements that events, conditions or results
"will", "may", "would",
"could", "should" occur or are "to
be" achieved, and statements related to matters which are not
historical facts. Information concerning management's
expectations regarding our future growth, results of operations,
performance, business prospects and opportunities may also be
deemed to be forward-looking statements, as such information
constitutes predictions based on certain factors, estimates and
assumptions subject to significant business, economic, competitive
and other uncertainties and contingencies, and involve known and
unknown risks which may cause the actual results, performance, or
achievements to be different from future results, performance, or
achievements contained in our forward- looking
statements.
Such
forward-looking statements include, but are not limited to,
statements regarding:
●
our future
financial and operating performance;
●
the timing and
amount of estimated future operating and exploration
expenditures;
●
the permitting,
feasibility, and plans for the development of the Gibellini Project
(which we define later in this Annual Report);
●
the development of
the Pulacayo Paca silver-lead- zinc property located in Quijarro
province, Bolivia (the "Pulacayo Project) ;
●
the development of
the Titan Project, l
ocated at Flett and
Angus Townships, 120 kilometres northeast of Sudbury,
Ontario
, Canada (the "Titan Project")
;
●
the development of
the Chandgana 600MW Coal-Fired Mine Mouth Power Plant project
planned in Khentii province, Mongolia (the "Chandgana
Project") (which we define later in this Annual Report),
including the finalizing of any power purchase
agreement;
●
the costs and
timing of the development of new deposits;
●
the costs and
timing of future exploration;
●
requirements for
additional capital;
●
the likelihood of
securing project financing;
●
estimated future
coal production at the Ulaan Ovoo coal property (the "Ulaan
Ovoo Property") and the Chandgana Project;
●
the impacts of
changes in the legal and regulatory environment in which we
operate;
●
the timing and
possible outcome of any pending litigation and regulatory
matters;
●
future
transactions; and
●
other information
concerning possible or assumed future results of our
operations.
The
forward-looking statements in this Annual Report are based upon our
current business and operating plans, and are subject to certain
risks, uncertainties and assumptions. Many factors could cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements that
may be expressed or implied by our forward-looking statements,
including, among others:
●
global outbreaks,
including the coronavirus;
●
changes in general
economic and business conditions;
●
changes in currency
exchange rates and interest rates;
●
fluctuations in
mineral prices;
●
operational risks
associated with mining and mineral processing, including risks
related to accidents, equipment breakdowns, labor disputes or other
unanticipated difficulties with or interruptions in operations
which may or may not be insured;
●
domestic and
foreign laws or regulations, particularly relating to the
environment, mining and processing;
●
changes in tax
laws;
●
domestic and
international economic and political conditions;
●
the need for
additional financing, and our ability to obtain or maintain
necessary financing;
●
changes in business
strategy; and
●
various other
factors, both referenced and not referenced in this Annual
Report.
This
foregoing list is not exhaustive of the factors that may affect any
of our forward-looking statements. Some of the important risks and
uncertainties that could affect forward- looking statements are
described further under the heading "
Risk Factors
" in this Annual
Report. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those described herein. For
the reasons set forth above and elsewhere in this Annual Report, we
caution you not to place undue reliance on forward-looking
statements in this Annual Report.
The
forward-looking statements in this Annual Report speak only as to
the date of this Annual Report and are based on our beliefs,
opinions and expectations at the time they are made. Except as
required by law, we undertake no obligation to update or review any
forward-looking statements whether as a result of new information,
future developments or otherwise.
CAUTIONARY
NOTE TO U.S. INVESTORS CONCERNING RESERVE AND RESOURCE
ESTIMATES
The
terms "mineral reserve", "proven mineral
reserve" and "probable mineral reserve" are
Canadian mining terms as defined in accordance with Canadian
National Instrument 43- 101
– Standards of Disclosure for Mineral Projects
("NI 43-101") and the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended. These definitions differ from the
definitions in the United States Securities and Exchange Commission
Industry Guide 7 ("SEC Industry Guide 7") under the
United States Securities Exchange
Act of 1934
, as amended (the "Exchange
Act").
Under
SEC Industry Guide 7 standards, 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. Pursuant to SEC Industry Guide 7, a mineral reserve may not
be designated as such unless: (i) competent professional engineers
conduct a detailed engineering and economic study, and the
"bankable" or "final" feasibility study
demonstrates that a mineral deposit can be mined profitably at a
commercial rate; (ii) a historic three-year average commodity price
is used in any reserve or cash flow analysis used to designate
reserves; and (iii) the company has demonstrated that the mineral
property will receive its governmental permits, and the primary
environmental document has been filed with the appropriate
governmental authorities.
The
terms "mineral resource", "measured mineral
resource", "indicated mineral resource" and
"inferred mineral resource" are defined in and required
to be disclosed by NI 43-101; however, these terms are not defined
terms under SEC Industry Guide 7 and have historically not been
permitted to be used in reports and annual reports filed with the
SEC. Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. An "Inferred mineral resource" has a lower
level of confidence than an "indicated mineral
resource" and must not be converted to a mineral
"reserve". The quantity and grade of reported
"Inferred Resources" in this estimation are uncertain
in nature and there has been insufficient exploration to define
these "Inferred Resources" as an "Indicated or
Measured" Mineral Resource and it is uncertain if further
exploration will result in upgrading them to an "Indicated or
Measured" Mineral Resource category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare
cases.
Disclosure of
"contained ounces" in a resource is permitted
disclosure under Canadian regulations; however, under SEC Industry
Guide 7 the United States Securities and Exchange Commission (the
"SEC") historically only permitted issuers to report
mineralization that does not constitute "reserves" by
SEC Industry Guide 7 standards as in place tonnage and grade
without reference to unit measures.
The
term "mineralized material" as used in this Annual
Report, although permissible under SEC Industry Guide 7, does not
indicate "reserves" by SEC Industry Guide 7 standards.
We cannot be certain that any part of the mineralized material will
ever be confirmed or converted into SEC Industry Guide 7 compliant
"reserves". Investors are cautioned not to assume that
all or any part of the mineralized material will ever be confirmed
or converted into reserves or that mineralized material can be
economically or legally extracted.
Accordingly,
information contained in this Annual Report may contain
descriptions of our mineral deposits that may not be comparable to
similar information made public by U.S. companies pursuant to SEC
Industry Guide 7.
The SEC
has adopted amendments to its disclosure rules to modernize the
mineral property disclosure requirements for issuers whose
securities are registered with the SEC. These amendments became
effective February 25, 2019 (the "SEC Modernization
Rules") and, following a two-year transition period, the SEC
Modernization Rules will replace the historical property disclosure
requirements for mining registrants that are included in SEC
Industry Guide 7. Following the transition period, as a foreign
private issuer that files its annual report on Form 20-F with the
SEC, the Company is not required to provide disclosure on its
mineral properties under the SEC Modernization Rules and will
continue to provide disclosure under NI 43-101 and the CIM. If the
Company ceases to be a foreign private issuer or loses its
eligibility to file its annual report on Form 20-F, then the
Company will be subject to the SEC Modernization Rules which differ
from the requirements of NI 43-101 and the CIM.
METRIC
CONVERSION TABLE
To Convert Imperial Measurement Units
To
Metric Measurement Units
Multiply
by
Acres
Hectares
0.4047
Feet
Meters
0.3048
Miles
Kilometers
1.6093
Tons
(short)
Tonnes
0.9072
Gallons
Liters
3.785
Ounces
(troy)
Grams
31.103
Ounces
(troy) per ton (short)
Grams
per tonne
34.286
TECHNICAL
INFORMATION
This
Annual Report contains information of a technical or scientific
nature respecting the Company's mineral properties (the "Technical
Information"). Technical Information is primarily derived from the
documents referenced herein. All Technical Information which
appears in this Annual Report has been reviewed and approved by
Danniel
Oosterman, Vice President Exploration of Silver Elephant who is a
"Qualified Person" as defined by the guidelines in NI
43-101. Silver Elephant
operates quality assurance and
quality control of sampling and analytical procedures.
GLOSSARY
OF TERMS
Ag
silver
Au
gold
Fe
iron
ft
feet
g/t
Grams
per tonne
lb.
pound
(2,000 lbs. to 1 ton, 2,204.6 lbs. to 1 tonne)
Indicated Coal
Resource
That
part of a Coal Resource for which quantity or quality, densities,
shape, and physical characteristics can be estimated with a level
of confidence sufficient to allow the appropriate application of
technical and economic parameters to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough for geological and quality continuity to be
reasonably assumed.
Indicated Mineral
Resources
That
part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be
estimated with a reasonable level of confidence. It is based on
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
Inferred
Coal
Resource
That
part of a Coal Resource for which quantity and quality can be
estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and quality
continuity. The estimate is based on limited information and
sampling, gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings, and drill
holes.
Inferred Mineral Resource
Inferred Mineral Resource is the part of a mineral resource for
which tonnage, grade and mineral content can be estimated with
a low level of confidence. It is inferred from geological evidence
and assumed but not verified geological or grade
continuity.
m
meters
Measured Mineral
Resource
That
part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be
estimated with a high level of confidence. It is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes. The locations are spaced
closely enough to confirm geological and grade
continuity.
Ni
43-101
Canadian National
Instrument 43-101 Standards of Disclosure for Mineral
Projects.
oz.
troy
ounce (12 oz. to 1 pound)
Preliminary
Economic Assessment
A
preliminary assessment study (the "PEA") which includes
an economic analysis of the potential viability of a material
resource prior to the completion of a prefeasibility study. Based
on the Society for Mining, Metallurgy and Exploration (SME) study
types a PEA (also known as a conceptual or scoping study used to
support a NI 43-101 Technical Report is within +/-35% degree of
accuracy.
Preliminary
Feasibility
Study
(PFS)
A
comprehensive study of the viability of a project that has advanced
to a stage where the mining method and pit configuration has been
established and an effective method of coal processing has been
determined, and includes a financial analysis based on reasonable
assumptions of technical, engineering, legal, operating, economic,
social, and environmental factors, and the evaluation of other
relevant factors which are sufficient for a Qualified Person (QP),
acting reasonably, to determine if all or part of a Resource can be
classified as a Reserve (CIM Standards). Based on the SME study
types a PFS used to support a NI 43-101 Technical Report is within
+/-25% degree of accuracy.
Qualified
Person
Or
QP
An
individual who is an engineer or geoscientist with at least five
years of experience in mineral exploration, mine development or
operation, or mineral project assessment, or any combination of
these; has experience relevant to the subject matter of the mineral
project and the technical report; and is a member or licensee in
good standing of a professional association recognized under Nl
43-101 (CIM Standards).
Ti
Titanium
V
Vanadium
P
ART I
I
TEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT
AND ADVISERS
Not
applicable.
I
TEM 2. OFFER STATISTICS AND EXPECTED
TIMETABLE
Not
applicable.
I
TEM 3. KEY INFORMATION
A.
Selected
Financial Data
The
following selected financial and other data summarize our
historical financial information. We derived the selected balance
sheet information as of December 31, 2019 and 2018, and the
selected statement of operations information for the years ended
December 31, 2019 and 2018, from our audited financial statements
as of those dates. The consolidated financial statements were
prepared in accordance with International Financial Reporting
Standards ("IFRS") issued by the International
Accounting Standards Board, which differ in certain respects from
the principles we would have followed had our consolidated
financial statements been prepared in accordance with generally
accepted accounting principles in the United States ("U.S.
GAAP").
The
information in the following tables should be read in conjunction
with the information appearing under the heading
"
Item 5. Operating and
Financial Review and Prospects
" and our audited annual
financial statements under the heading "
Item 18. Financial
Statements
".
Statement
of Operations
2019
2018
2017
2016
Revenue
$
—
$
—
$
—
$
—
Net income
(loss)
17,513,854
(18,184,468
)
(18,592,981
)
(2,007,305
)
Comprehensive
income (loss)
17,513,854
(18,196,628
)
(18,580,821
)
(2,007,305
)
Basic net (loss)
income per share
0.17
(0.23
)
(0.33
)
(0.05
)
Diluted net (loss)
income per share
0.17
(0.23
)
(0.33
)
(0.05
)
Balance
Sheet Data
2019
2018
2017
2016
Total
Asset
$
27,448,088
$
9,264,205
$
18,368,843
$
27,828,109
Share
Capital
$
181,129,012
$
173,819,546
$
165,862,805
$
156,529,025
Number of Shares
(as adjusted to reflect changes in capital)
121,299,508
95,316,127
74,721,790
48,076,530
Total
liabilities
$
2,740,000
$
10,023,943
$
9,681,322
$
11,032,616
Total
shareholders' equity
$
24,708,088
$
(759,738
)
$
8,687,521
$
16,795,493
B.
Capitalization
and Indebtedness
Not
applicable.
C.
Reasons
for the Offer and Use of Proceeds
Not
applicable.
D.
Risk
Factors
This
section describes some of the risks and uncertainties faced by us.
An investment in the Company involves a high degree of risk. You
should carefully consider the risks described below and the risks
described elsewhere in this Annual Report when making an investment
decision related to the Company. We believe the risk factors
summarized below are most relevant to our business. These are
factors that, individually or in the aggregate, could cause our
actual results to differ significantly from anticipated or
historical results. The occurrence of any of the risks could harm
our business and cause you to lose all or part of your investment.
However, you should understand that it is not possible to predict
or identify all such factors. The risks and uncertainties described
and discussed below and elsewhere in this Annual Report are not the
only risks and uncertainties that we face. Additional risks and
uncertainties not presently known to us or that we currently deem
immaterial may also impair our business operations. If any of these
risks actually occurs, our business, financial condition and
results of operations would suffer. The risks discussed below also
include forward-looking statements, and our actual results may
differ substantially from those discussed in these forward-looking
statements. See the discussion under the heading
"
Cautionary Note Regarding
Forward-Looking Statements
" at the beginning of this
Annual Report for more detail.
Except
as required by law, we undertake no obligation to publicly update
forward-looking statements, whether as a result of new information,
future events, or otherwise.
9
We have a history of net losses and do not anticipate having
positive cash flow in the foreseeable future.
We have
not received any material revenue or net profit to date.
Exploration and development of mineral properties requires large
amounts of capital and usually results in accounting losses for
many years before profitability is achieved, if ever. We have
incurred losses and negative operating cash flow during our most
recently completed financial year and for the current financial
year to date. We believe that commercial mining activity is
warranted on our Gibellini and Pulacayo Projects. Even if we
undertake future development activity on any of our properties,
there is no certainty that we will produce revenue, operate
profitably or provide a return on investment in the future. The
exploration of our properties depends on our ability to obtain
additional required financing. There is no assurance that we will
be successful in obtaining the required financing, which could
cause us to postpone our exploration plans or result in the loss or
substantial dilution of our interest in our
properties.
We will need a significant amount of capital to carry out our
proposed business plan. Unless we are able to raise sufficient
funds, we may be forced to discontinue our operations.
We are
in the exploration stage and will likely operate at a loss until
our business becomes established. We will require additional
financing in order to fund future operations. Our ability to secure
any required financing in order to commence and sustain our
operations will depend in part upon prevailing capital market
conditions as well as our business success. There can be no
assurance that we will be successful in our efforts to secure any
additional financing on terms satisfactory to our management. If
additional financing is raised by issuing common shares, control
may change, and shareholders may suffer additional dilution. If
adequate funds are not available or they are unavailable on
acceptable terms, we may be required to scale back our business
plan or cease operating.
Our mineral exploration efforts are highly speculative in nature
and may be unsuccessful.
The
exploration for and development of minerals involve significant
risks, which even a combination of careful evaluation, experience
and knowledge may not eliminate. Few properties which are explored
are ultimately developed into producing mines. There can be no
guarantee that the estimates of quantities and qualities of
minerals disclosed will be economically recoverable. With all
mining operations there is uncertainty and, therefore, risk
associated with operating parameters and costs resulting from the
scaling up of extraction methods tested in pilot conditions.
Mineral exploration is speculative in nature and there can be no
assurance that any minerals discovered will result in an increase
in our resource base.
Our
operations are subject to all of the hazards and risks normally
encountered in the exploration, development and production of
minerals. These include unusual and unexpected geological
formations, rock falls, seismic activity, flooding and other
conditions involved in the extraction of material, any of which
could result in damage to, or destruction of, mines and other
producing facilities, damage to life or property, environmental
damage and possible legal liability. Although precautions to
minimize risk will be taken, operations are subject to hazards that
may result in environmental pollution and consequent liability that
could have a material adverse impact on our business, operations
and financial performance.
Substantial
expenditures are required to establish ore reserves through
drilling, to develop metallurgical processes to extract the metal
from the ore and, in the case of new properties, to develop the
mining and processing facilities and infrastructure at any site
chosen for mining. Although substantial benefits may be derived
from the discovery of a major mineralized deposit, 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. The economics of
developing vanadium, silver, coal and other mineral properties is
affected by many factors including the cost of operations,
variations in the grade of ore mined, fluctuations in metal
markets, costs of processing equipment and such other factors such
as government regulations, including regulations relating to
royalties, allowable production, importing and exporting of
minerals and environmental protection. The remoteness and
restrictions on access of properties in which we have an interest
will have an adverse effect on profitability as a result of higher
infrastructure costs. There are also physical risks to the
exploration personnel working in the terrain in which our
properties are located, often in poor climate
conditions.
Our
long-term commercial success depends on our ability to find,
acquire, develop and commercially produce vanadium, silver, coal
and other minerals. No assurance can be given that we will be able
to locate satisfactory properties for acquisition or participation.
Moreover, if such acquisitions or participations are identified, we
may determine that current markets, terms of acquisition and
participation or pricing conditions make such acquisitions or
participations uneconomic.
We have no history of profitably commercially producing vanadium,
silver, coal or other metals from our mineral exploration
properties and there can be no assurance that we will successfully
establish mining operations or profitably produce vanadium, silver,
coal or other base or precious metals.
None of
our properties are currently under development. The future
development of any property found to be economically feasible will
require the construction and operation of mines, processing plants
and related infrastructure. As a result, we are subject to all of
the risks associated with establishing new mining operations and
business enterprises, including:
●
the timing and cost
of the construction of mining and processing
facilities;
●
the availability
and costs of skilled labor and mining equipment;
●
the availability
and cost of appropriate smelting and/or refining
arrangements;
●
the need to obtain
necessary environmental and other governmental approvals and
permits and the timing of those approvals and permits;
and
●
the availability of
funds to finance construction and development
activities.
10
The
costs, timing and complexities of mine construction and development
are increased by the remote location of our mining properties. It
is common in new mining operations to experience unexpected
problems and delays during development, construction and mine
start-up. In addition, delays in the commencement of mineral
production often occur. Accordingly, there are no assurances that
our activities will successfully establish mining operations,
result in profitable operations or that vanadium, silver, coal or
other metals will be produced at any of our
properties.
All of the properties in which we hold an interest are considered
to be in the exploration stage only and do not contain a known body
of commercial minerals. The figures for our resources are estimates
based on interpretation and assumptions and may yield less mineral
production under actual operating conditions than is currently
estimated.
All of
the properties in which we hold an interest are considered to be in
the exploration stage only and do not contain a known body of
commercial minerals. The figures for our resources are estimates
based on interpretation and assumptions and may yield less mineral
production under actual operating conditions than is currently
estimated. Unless otherwise indicated, mineralization figures
presented in this Annual Report and in our other filings with
securities regulatory authorities, news releases and other public
statements that may be made from time to time are based upon
estimates made by our personnel and independent geologists. These
estimates may be imprecise because they are based upon geological
and engineering interpretation and statistical inferences drawn
from drilling and sample analysis, stated operating conditions, and
mineral processing tests, which may prove to be unreliable. There
can be no assurance that:
●
these estimates
will be accurate;
●
resource or other
mineralization figures will be accurate; or
●
the resource or
mineralization could be mined or processed profitably.
Because
we have not commenced production at any of our properties, other
than Ulaan Ovoo, and have not defined or delineated any proven or
probable reserves on any of our properties, the mineralization
estimates for our properties may require adjustments including
possible downward revisions based upon further exploration or
development work, actual production experience, or current costs
and sales prices. In addition, the quality of coal or grade of ore
ultimately mined, if any, may differ from that indicated by
drilling and beneficiation testing results. There can be no
assurance that the type and amount of minerals recovered in
laboratory analyses and small-scale beneficiation tests will be
duplicated in large-scale tests under on-site conditions or in
production scale.
The
resource estimates contained in this Annual Report have been
estimated based on assumed future prices, cut-off grades and
operating costs that may prove to be inaccurate. Extended declines
in market prices for vanadium, silver, coal or other metals may
render portions of our mineralization uneconomic and result in
reduced reported mineralization. Any material reductions in
estimates of mineralization, or of our ability to extract this
mineralization, could have a material adverse effect on our results
of operations or financial condition.
Actual capital costs, operating costs, production and economic
returns may differ significantly from those we have anticipated and
there are no assurances that any future development activities will
result in profitable mining operations.
Actual
capital costs, operating costs, production and economic returns may
differ significantly from those we have anticipated, and we cannot
assure you that any future development activities will result in
profitable mining operations. The capital costs required to take
our projects into production may be significantly higher than
anticipated. None of our mineral properties has a sufficient
operating history upon which we can base estimates of future
operating costs. Any potential decisions about the possible
development of these and other mineral properties would ultimately
be based upon feasibility studies which may or may not be
undertaken. Feasibility studies derive estimates of cash operating
costs based upon, among other things:
●
anticipated
tonnage, grades and metallurgical characteristics of the ore or
quality of the vanadium, silver, coal or other minerals to be mined
and/or processed;
●
anticipated
recovery rates of metals from the ore;
●
cash operating
costs of comparable facilities and equipment; and
●
anticipated
climatic conditions.
11
Cash
operating costs, production and economic returns, and other
estimates contained in studies or estimates prepared by or for us
may differ significantly from those anticipated by our current
studies and estimates, and there can be no assurance that our
actual operating costs will not be higher than currently
anticipated.
The outbreak of contagious diseases, including the spread of the
coronavirus, could impact our business operations, results of
operations and/or financial condition.
Our
business operations could be significantly adversely affected by
the effects of a widespread global outbreak of contagious disease,
including the recent outbreak of respiratory illness caused by a
novel coronavirus (the "COVID-19"). We cannot
accurately predict the impact COVID-19 will have on third parties,
including our employees or contractors, ability to fulfil their
obligations to the Company, including due to uncertainties relating
to the ultimate geographic spread of the virus, its severity, the
duration of the outbreak, and the restrictions imposed by
governments of affected countries to combat COVID-19. In addition,
a significant outbreak of contagious diseases in the human
population could result in a widespread health crisis that could
adversely affect the economies and financial markets of many
countries (including those countries in which our properties are
located and other countries we rely on to conduct our business
operations), resulting in an economic downturn that could
negatively impact our operating results and financial condition.
There can be no assurance that any policies or procedures that have
been or that may be put in place by the Company will mitigate the
risks associated with, or that they will not cause us to
experience, less favourable health, safety and economic outcomes,
including the ability to obtain financing for business operations
as needed or on terms acceptable to the Company.
We are subject to substantial government regulation in the United
States and Canada. Changes to regulation or more stringent
implementation could have a material adverse effect on our results
of operations and financial condition.
Mining
and exploration activities at our properties in North America are
subject to various laws and regulations relating to the protection
of the environment, such as the U.S. federal Clean Water Act and
the Nevada Water Pollution Control Law. Although we intend to
comply with all existing environmental and mining laws and
regulations, no assurance can be given that we will be in
compliance with all applicable regulations or that new rules and
regulations will not be enacted or that existing rules and
regulations will not be applied in a manner that could limit or
curtail development of our properties.
All
claims held by us in the United States are unpatented lode mining
claims and all claims held by us in Ontario are patented claims. At
present, there is no royalty payable to the United States on
production from unpatented mining claims, but exploration and
development on these claims is subject to regulation and requires
permits from the U.S. Department of Interior and various state
agencies. There is a tax imposed on profits from the extraction of
mineral substances raised and sold by operators of Ontario mines.
There have been legislative attempts to impose a royalty on
production from unpatented mining claims in the United States in
recent years. Amendments to current laws and regulations governing
exploration, development and mining or more stringent
implementation thereof could have a material adverse effect on our
business and cause increases in exploration expenses or capital
expenditures or require delays or abandonment in the development of
our properties.
Our
operations are also subject to laws and regulations governing the
protection of endangered and other specified species. In May 2015,
the U.S. Department of the Interior released a plan to protect the
greater sage grouse, a species whose natural habitat is found
across much of the western United States, including Nevada. The
U.S. Department of the Interior's plan is intended to guide
conservation efforts on approximately 70 million acres of national
public lands. No assurances can be made that restrictions relating
to conservation will not have an adverse impact on our operations
in impacted areas.
We are
also required to expend significant resources to comply with
numerous corporate governance and disclosure regulations and
requirements adopted by Canadian federal and provincial
governments, as well as the Toronto Stock Exchange (the
"TSX"). These additional compliance costs and related
diversion of the attention of management and key personnel could
have a material adverse effect on our business.
Reform of the General Mining Law could adversely impact our results
of operations.
All of
our unpatented mining claims are on U.S. federal lands. Legislation
has been introduced regularly in the U.S. Congress over the last
decade to change the General Mining Law of 1872, as amended (the
"General Mining Law"), under which we hold these
unpatented mining claims. It is possible that the General Mining
Law may be amended or replaced by less favorable legislation in the
future. Previously proposed legislation contained a production
royalty obligation, new environmental standards and conditions,
additional reclamation requirements and extensive new procedural
steps which would likely result in delays in permitting. The
ultimate content of future proposed legislation, if enacted, is
uncertain. If a royalty on unpatented mining claims were imposed,
the profitability of our U.S. operations could be materially
adversely affected.
Any
such reform of the General Mining Law could increase the costs of
our U.S. mining activities or could materially impair our ability
to develop or continue our U.S. operations, and as a result, could
have an adverse effect on us and our results of
operations.
We are required to obtain government approvals and permits in order
to conduct operations.
Government
approvals and permits are currently required in connection with all
of our operations, and further approvals and permits may be
required in the future. We must obtain and maintain a variety of
licenses and permits, which include or cover, without limitation,
air quality, water quality, water rights, dam safety, fire safety,
emergency preparedness, hazardous materials, mercury control, waste
rock management, solid waste disposal, storm water runoff, water
pollution control, water treatment, rights of way and tailings
operations. Such licenses and permits are subject to change in
regulations and in various operating circumstances. The duration
and success of our efforts to obtain permits are contingent upon
many variables outside of our control. Obtaining governmental
approvals and permits may increase costs and cause delays depending
on the nature of the activity to be permitted and the applicable
requirements implemented by the permitting authority.
12
There
can be no assurance that all necessary approvals and permits will
be obtained or timely obtained. In addition, there can be no
assurance that, if obtained, the costs of the approvals and permits
will not exceed our estimates or that we will be able to maintain
such approvals and permits. To the extent such approvals or permits
are required and not obtained or maintained, our operations may be
curtailed, or we may be prohibited from proceeding with planned
exploration, development or operation of our mineral
properties.
Certain of our current exploration properties are located in
Bolivia and Mongolia, and their operations may be exposed to
various levels of political, economic, and other risks and
uncertainties
.
Certain
of our current exploration properties are located in Bolivia and
Mongolia. In these countries, their operations may be exposed to
various levels of political, economic, and other risks and
uncertainties. These risks and uncertainties include, but are not
limited to, political and bureaucratic corruption and uncertainty,
terrorism, hostage taking, military repression, fluctuations in
currency exchange rates, high rates of inflation, labor unrest,
civil unrest, expropriation and nationalization, renegotiation or
nullification of existing concessions, licenses, permits and
contracts, illegal mining, changes in taxation policies,
restrictions on foreign exchange and repatriation, changing
political conditions, currency controls, and governmental
regulations that favor or require the awarding of contracts to
local contractors or require foreign contractors to employ citizens
of, or purchase supplies from, a particular
jurisdiction.
Future
political and economic conditions may result in a government
adopting different policies with respect to foreign development and
ownership of mineral resources. Any changes in policy may result in
changes in laws affecting ownership of assets, foreign investment,
taxation, rates of exchange, resource sales, environmental
protection, labour relations or practices, price controls,
repatriation of income, and return of capital which may affect both
our ability to undertake exploration and development activities in
respect of future properties in the manner currently contemplated,
as well as our ability to continue to explore, develop, and operate
those properties to which we have rights relating to exploration,
development, and operations.
Changes in regulations or shifts in political attitudes in Bolivia
and Mongolia, as well as in neighbouring countries, are beyond our
control and may adversely affect our business, financial condition
and prospects
.
Any
changes in regulations or shifts in political attitudes in Bolivia
and Mongolia are beyond our control and may adversely affect our
business, financial condition and prospects.
The
Bolivian government adopted a new constitution (which we refer to
as the "NCPE") in early 2009 which increased state
control over key economic sectors, including mining. The NCPE
provides that all minerals, among all natural resources, belong to
the Bolivian people who are represented by the government. Such
entity is the only one capable of managing all minerals throughout
the production chain. Consequently, only the Bolivian central
government possesses the authority to grant mining rights. Bolivian
President Evo Morales signed a new law, the Law of Mining Rights,
increasing the State's expropriation powers over the mining
sector. It was specifically drafted to target mines deemed by the
state as unproductive, inactive or idle. The Bolivian government
has assigned responsibility for determining whether a concession is
idle to the Vice Ministry of Regulation, Auditing and Mining
Policy. Mining areas occupied by cooperatives or local groups will
not be regarded as idle. There have been recent actions by the
government of Bolivia to ease concerns of foreign exploration and
mining investors. As reported in the
Mining Journal
, at a UK-Bolivia trade
and investment forum in London in June of 2016, Félix
César Navarro, Minister of Mining and Metallurgy
("Minister Navarro"), talked of new safeguards for
foreign investors looking to put cash into the country, stating,
that new contracts governing exploration, mining and processing
were currently going through Bolivia's congress that would
give foreign investors the legal security they need to invest in
the country (
report by Mining
Journal June 10, 2016
). Certain Company officials also met
with Minister Navarro in March, October and November of 2016.
During the meeting in March at the 2016
PDA
C convention, Minister Navarro
expressed his full support for the start-up and development of the
Pulacayo mine. During the October meeting, Minister Navarro stated
that the aim of the recent mining regulation is to support the
investors and ensure the inclusion of cooperative labor in their
projects. At the November meeting, Minister Navarro stated that
both public and private mining sectors will try to attract foreign
investment disclosing and sharing their experience with investors
from several parts of the world. We consider our investment in the
Pulacayo Project to be safe. However, we cannot provide any
assurance that our operations at the Pulacayo Project will not be
affected by changes in the political environment of Bolivia or the
political attitudes of the Bolivian government. Further, there can
be no assurance that neighboring countries' political and
economic policies in relation to Bolivia will also not have adverse
economic effects on our business, including our ability to
transport and sell our product and access construction labor,
supplies and materials.
The
Mongolian legal system shares several of the qualitative
characteristics typically found in a developing country and many of
its laws, particularly with respect to matters of environment and
taxation, are still evolving. A transaction or business structure
that would likely be regarded under a more established legal system
as appropriate and relatively straightforward might be regarded in
Mongolia as outside the scope of existing Mongolian law, regulation
or legal precedent. As the legal framework in Mongolia is in many
instances based on recent political reforms or newly enacted
legislation which may not be consistent with long-standing
conventions and customs, certain business arrangements or
structures and certain tax planning mechanisms may carry
significant risks. In particular, when business objectives and
practicalities dictate the use of arrangements and structures that,
while not necessarily contrary to settled Mongolian law, are
sufficiently novel within a Mongolian legal context, it is possible
that such arrangements may be invalidated.
13
The
legal system in Mongolia has inherent uncertainties that could
limit the legal protections available to us. These uncertainties
include, without limitation: (i) inconsistencies between laws; (ii)
limited judicial and administrative guidance on interpreting
Mongolian legislation; (iii) substantial gaps in the regulatory
structure due to delay or absence of implementing regulations; (iv)
the lack of established interpretations of new principles of
Mongolian legislation, particularly those relating to business,
corporate and securities laws; (v) a lack of judicial independence
from political, social and commercial forces; and (vi) bankruptcy
procedures that are not well developed and are subject to abuse.
The Mongolian judicial system has relative little experience in
enforcing the laws and regulations that currently exist, leading to
a degree of uncertainty as to the outcome of any litigation, it may
be difficult to obtain swift and equitable enforcement, or to
obtain enforcement of a judgment by a court of another
jurisdiction.
In
addition, while legislation has been enacted to protect private
property against expropriation and nationalization, due to the lack
of experience in enforcing these provisions and political factors,
these protections may not be enforced in the event of an attempted
expropriation or nationalization. Whether legitimate or not,
expropriation or nationalization of any of our assets, or portions
thereof, potentially without adequate or any compensation, could
materially and adversely affect our business and results of
operations. Further, there can be no assurance that neighboring
countries' political and economic policies in relation to
Mongolia will not have adverse economic effects on our business,
including our ability to transport and sell our product and access
construction labor, supplies and materials.
In Bolivia, recent and
anticipated changes to mining laws and policies and mining taxes
and expected changes in governmental regulation or governmental
actions may adversely affect us
.
In
Bolivia, recent and anticipated changes to mining laws and policies
and mining taxes and expected changes in governmental regulation or
governmental actions may adversely affect us. On May 28, 2014, Law
535 of Mining and Metallurgy (which we refer to as the "May
Mining Law") was adopted and placed into effect. Pursuant to
the May Mining Law, we must develop our mining activities to comply
with the economic and social function, which means observing the
sustainability of the mining activities, work creation, respecting
the rights of our mining workers, and ensuring the payment of
mining patents and the continuity of existing
activities.
The
Framework Law on Mother Earth and Integral Development for Living
Well (together with the May Mining Law, the "New Mining
Laws"), in effect since October 15, 2012, prioritizes the
importance of nature to the Bolivian people and could have
significant consequences to the country's mining industry.
This law established 11 new rights for "mother earth"
including, the right to life and to exist; the right to continue
vital cycle and processes free from human alteration; the right to
pure water and clean air; the right to balance; the right not to be
polluted; and the right to not have cellular structure modified or
genetically altered. At present, it is unclear how the New Mining
Laws will affect exploration companies with projects in the area or
how the law will be enforced.
In the
past, the Government of Bolivia has nationalized the assets of
certain companies in various industries. Nationalization or other
expropriation of our assets, without adequate compensation, could
have a material adverse effect on our business and/or result in the
total loss of our investment in Bolivia.
Our mineral rights may be terminated or not renewed by governmental
authorities and we may be negatively impacted by changes to mining
laws and regulations.
Our
activities are subject to government approvals, various laws
governing prospecting, development, land resumptions, production
taxes, labor standards and occupational health, mine safety, toxic
substances and other matters, including issues affecting local
native populations. Although we believe that our activities are
currently carried out in accordance with all applicable rules and
regulations, no assurance can be given that new rules and
regulations will not be enacted or that existing rules and
regulations will not be applied in a manner which could limit or
curtail production or development. Amendments to current laws and
regulations governing operations and activities of exploration and
mining, or more stringent implementation thereof, could have a
material adverse impact on our business, operations and financial
performance. Further, the mining licenses and permits issued in
respect of our projects may be subject to conditions which, if not
satisfied, may lead to the revocation of such licenses. In the
event of revocation, the value of our investments in such projects
may decline.
In the
United States, the tenures are in the form of claims where
exploration and development rights are retained so long as annual
maintenance fees are paid and certain forms filed. The maintenance
fees may be substantial with a large number of claims and the fees
are adjusted periodically. Diligent periodic assessment of the
resource and development value of claims by the claimant is
required.
Title to our mineral properties may be disputed by third
parties.
Title
to mineral properties, as well as the location of boundaries on the
grounds may be disputed. Moreover, additional amounts may be
required to be paid to surface right owners in connection with any
mining development. At all of such properties where there are
current or planned exploration activities, we believe that we have
either contractual, statutory, or common law rights to make such
use of the surface as is reasonably necessary in connection with
those activities. Although we believe we have taken reasonable
measures to ensure proper title to our properties, there is no
guarantee that title to our properties will not be challenged or
impaired. Successful challenges to the title of our properties
could impair the development of operations on those
properties.
14
Environmental regulations worldwide have become increasingly
stringent over the last decade which will require us to dedicate
more time and money to compliance and remediation
activities.
All
phases of the mining business present environmental risks and
hazards and are subject to environmental regulation pursuant to a
variety of international conventions, and federal, state and
municipal laws and regulations. Environmental legislation provides
for, among other things, restrictions and prohibitions on spills
and releases or emissions of various substances produced in
association with mining operations. The legislation also requires
that wells and facility sites be operated, maintained, abandoned
and reclaimed to the satisfaction of applicable regulatory
authorities. Compliance with such legislation can require
significant expenditures and a breach may result in the imposition
of fines and penalties, some of which may be material.
Environmental legislation is evolving in a manner expected to
result in stricter standards and enforcement, larger fines and
liability and potentially increased capital expenditures and
operating costs. Environmental assessments of proposed projects
carry a heightened degree of responsibility for companies and their
directors, officers and employees. The cost of compliance with
changes in governmental regulations has a potential to reduce the
profitability of operations.
Failure
to comply with applicable laws, regulations, and permitting
requirements may result in enforcement actions under, including
orders issued by regulatory or judicial authorities causing
operations to cease or be curtailed, and may include corrective
measures requiring capital expenditures, installation of additional
equipment, or remedial actions. Entities engaged in mining
operations may be required to compensate those suffering loss or
damage by reason of the mining activities and may have civil or
criminal fines or penalties imposed for violations of applicable
laws or regulations and, in particular, environmental
laws.
Amendments to
current laws, regulations and permits governing operations and
activities of mining companies, or more stringent implementation
thereof, could have a material adverse impact on our business and
cause increases in capital expenditures, production costs or
reduction in levels of production at producing properties, or
require abandonment or delays in the development of new mining
properties.
Certain of our properties are located on land that is or may become
subject to traditional territory, title claims and/or claims of
cultural significance by certain Native American tribes or
Aboriginal communities and stakeholders, and such claims and the
attendant obligations of the provincial and federal governments to
those tribal or Aboriginal communities and stakeholders may affect
our current and future operations.
Native
American and Aboriginal interests and rights as well as related
consultation issues may impact our ability to pursue exploration
and development at our U.S. and Canadian properties. There is no
assurance that claims or other assertion of rights by tribal or
Aboriginal communities and stakeholders or consultation issues will
not arise on or with respect to our properties or activities. These
could result in significant costs and delays or materially restrict
our activities. Opposition by Native American tribes or Aboriginal
communities and stakeholders to our presence, operations or
development on land subject to their traditional territory or title
claims or in areas of cultural significance could negatively impact
us in terms of public perception, costly legal proceedings,
potential blockades or other interference by third parties in our
operations, or court-ordered relief impacting our operations. In
addition, we may be required to, or may voluntarily, enter into
certain agreements with such Native American tribes or Aboriginal
communities and stakeholders in order to facilitate development of
our properties, which could reduce the expected earnings or income
from any future production.
The mining industry in general is intensely competitive.
Furthermore, there is no assurance that, even if commercial
quantities are discovered, a ready market will exist for sale of
the same mineral ore.
The
mining industry in general is intensely competitive and there is no
assurance that, even if commercial quantities of ore are
discovered, a ready market will exist for the sale of same.
Marketability of natural resources which we may discover will be
affected by numerous factors beyond our control, such as market
fluctuations, the proximity and capacity of natural resource
markets and processing equipment, government regulations including
regulations relating to prices, royalties, land tenure, land use,
importing and exporting of minerals and environmental protection.
The exact effect of such factors cannot be predicted but they may
result in us not receiving an adequate return on our
investment.
The mining business is subject to inherent risks, some of which are
not insurable.
Our
business is subject to a number of risks and hazards, including
adverse environmental conditions, industrial accidents, labor
disputes, unusual or unexpected geological conditions, ground or
slope failures, cave-ins, changes in the regulatory environment and
natural phenomena such as inclement weather conditions, floods and
earthquakes. Such occurrences could result in damage to mineral
properties or production facilities, personal injury or death,
environmental damage to our properties or the properties of others,
delays in development or mining, monetary losses and possible legal
liability.
Although we
maintain insurance to protect against certain risks in amounts that
we consider reasonable, our insurance will not cover all the
potential risks associated with our operations. We may also be
unable to maintain insurance to cover these risks at economically
feasible premiums. Insurance coverage may not continue to be
available or may not be adequate to cover any resulting liability.
Moreover, insurance against risks such as environmental pollution
or other hazards as a result of exploration and production is not
generally available to us or to other companies in the mining
industry on acceptable terms. We may also become subject to
liability for pollution or other hazards which may not be insured
against or which we may elect not to insure against because of
premium costs or other reasons. Losses from these events may cause
us to incur significant costs that could have a material adverse
effect upon our financial performance, results of operations and
business outlook.
15
We depend on a number of key personnel, including our directors and
executive officers, the loss of any one of whom could have an
adverse effect on our operations.
We
depend on a number of key personnel, including our directors and
executive officers, the loss of any one of whom could have an
adverse effect on our operations. We have employment and consulting
contracts with several key personnel, and we do not have key man
life insurance.
Our
ability to manage growth effectively will require us to continue to
implement and improve management systems and to recruit and train
new employees. We cannot assure you that we will be successful in
attracting and retaining skilled and experienced
personnel.
Our business is highly dependent on the international market prices
of the metals we plan to produce, which are both cyclical and
volatile.
Our
revenues, if any, are expected to be in large part derived from the
mining and sale of vanadium, silver, coal and other minerals. The
prices of those commodities have fluctuated widely, particularly in
recent years, and are affected by numerous factors beyond our
control including international economic and political trends,
expectations of inflation, currency exchange fluctuations, interest
rates, global or regional consumption patterns, speculative
activities and increased production due to new mine developments
and improved mining and production methods.
The
price of vanadium, silver and coal may have a significant influence
on the market price of our securities and the value of our mineral
properties. Mineral prices fluctuate widely and are affected by
numerous factors beyond our control. The level of interest rates,
the rate of inflation, the world supply of mineral commodities and
the stability of exchange rates can all cause significant
fluctuations in prices. Such external economic factors are in turn
influenced by changes in international investment patterns,
monetary systems and political developments. The price of mineral
commodities has fluctuated widely in recent years, and future price
declines could cause commercial production to be impracticable,
thereby having a material adverse effect on our business, financial
condition and result of operations.
We may be subject to misconduct by third-party
contractors.
We will
be heavily reliant upon our contractors during the development of
large scale projects. Companies are often measured and evaluated by
the behavior and performance of their representatives, including in
large part their contractors. We work hard to build in controls and
mechanisms to choose and retain employees and contractors with
similar values to our own; however, these controls may not always
be effective. Sound judgment, safe work practices, and ethical
behavior is expected from our contractors both on and off-site. Any
work disruptions, labor disputes, regulatory breach or
irresponsible behavior of our contractors could reflect on us
poorly and could lead to loss of social license, delays in
production and schedule, unsafe work practices and accidents and
reputational harm.
Our business requires substantial capital expenditures and is
subject to financing risks.
We
estimate that our current financial resources are insufficient to
undertake presently planned exploration and development programs.
Further exploration on and development and construction of our
mineral properties may require additional capital. One source of
future funds presently available to us is through the sale of
equity capital. There is no assurance that this source will
continue to be available as required or at all. If it is available,
future equity financings may result in substantial dilution to
shareholders. Another alternative for the financing of further
exploration and/or development would be the offering of an interest
in our mineral properties to be earned by another party or parties
carrying out further exploration or development thereof. There can
be no assurance that we will be able to conclude any such
agreements on favorable terms or at all.
Any
failure to obtain the required financing on acceptable terms could
have a material adverse effect on our financial condition, results
of operations and liquidity and may require us to cancel or
postpone planned capital investments.
Currency fluctuation may affect our operations and financial
stability.
We
transact business in a number of currencies including Canadian,
U.S., Bolivian and Mongolian currencies. Fluctuations in exchange
rates may have a significant effect on our cash flows. Future
changes in exchange rates could materially affect our results in
either a positive or negative direction. We do not currently engage
in foreign currency hedging activities.
We are subject to anti-corruption, anti-bribery and anti-money
laundering laws and regulations in Canada and the United States,
among other countries. Any violations of any such laws or
regulations could have a material adverse impact on our reputation
and results of operations and financial condition.
We are
subject to anti-corruption legislation including the
Corruption of Foreign Public Officials
Act
(Canada) and other similar acts (which we refer to
collectively as "Anti- Corruption Legislation"), which
prohibit us or any of our officers, directors, employees or agents
or any of our stockholders acting on our behalf from paying,
offering to pay or authorizing the payment of anything of value to
any foreign government official, government staff member, political
party or political candidate in an attempt to obtain or retain
business or to otherwise influence a person working in an office
capacity. Anti-Corruption Legislation also requires public
companies to make and keep books and records that accurately and
fairly reflect their transactions and to devise and maintain an
adequate system of internal accounting controls. Our international
activities create the risk of unauthorized payments or offers of
payments by our employees, consultants or agents, even though they
may not always be subject to our control. We have policies and
procedures in place that strictly prohibit these practices by our
employees and agents. However, our existing safeguards and any
future improvements may prove to be less than effective, and our
employees, consultants and agents may engage in conduct for which
we may be held responsible. Any failure by us to adopt appropriate
compliance procedures and to ensure that our employees and agents
comply with Anti- Corruption Legislation and other applicable laws
and regulations in foreign jurisdictions could result in
substantial penalties or restrictions on our ability to conduct our
business, which may have a material adverse impact on us or our
share price.
16
Our results and financial condition are affected by global and
local market conditions that we do not control and cannot
predict.
Access
to financing has been negatively impacted by many factors as a
result of the global financial crisis. This may impact our ability
to obtain debt or equity financing in the future on terms favorable
to us and our ability to attain strategic partnerships or enter
into joint venture arrangements which may further negatively impact
the timeline for commencement of commercial production.
Additionally, global economic conditions may cause decreases in
asset values that are deemed to be other than temporary, which may
result in impairment losses. If such volatility and market turmoil
continue, our business and financial condition could be adversely
impacted.
Our insurance will not cover all the potential risks associated
with a mining company's operations.
Our
insurance will not cover all the potential risks associated with a
mining company's operations. We may also be unable to
maintain insurance to cover these risks at economically feasible
premiums. Insurance coverage may not continue to be available or
may not be adequate to cover any resulting liability. Moreover,
insurance against risks such as environmental pollution or other
hazards as a result of exploration and production is not generally
available to us or to other companies in the mining industry on
acceptable terms. We may also become subject to liability for
pollution or other hazards which may not be insured against or
which we may elect not to insure against because of premium costs
or other reasons. Losses from these events may cause the Company to
incur significant costs that could have a material adverse effect
upon its financial condition and results of
operations.
We have never paid any dividends and we are unlikely to do so in
the foreseeable future.
To
date, we have never paid any dividends on our outstanding common
shares and we are unlikely to do so in the foreseeable future. Any
decision to pay dividends on our common shares will be made by our
Corporate Governance and Compensation Committee on the basis of our
earnings, financial requirements and other conditions.
We engage in extensive related party transactions, which may result
in conflicts of interest involving our management.
We have
engaged in the past, and continue to engage, in extensive related
party transactions involving certain of our management. See the
discussion under the heading "
Item 7.B. Related Party
Transactions
" for further detail. Such related party
transactions could cause us to become materially dependent on the
related parties in the ongoing conduct of our business, and related
parties may be motivated by personal interests to pursue courses of
action that are not necessarily in the best interests of the
Company and our stockholders. Related party transactions often
present conflicts of interest, could result in disadvantages to the
Company, and may impair investor confidence, all of which could
materially and adversely affect us.
We rely on information technology systems and networks in our
operations which are provided and maintained by third-party
contractors.
We rely
on information technology ("IT") systems and networks
in our operations which are provided and maintained by third-party
contractors. The availability, capacity, reliability and security
of these IT systems could be subject to network disruptions caused
by a variety of malicious sources, including computer viruses,
security breaches, cyber-attacks and theft, as well as network
and/or hardware disruptions resulting from unexpected failures such
as human error, software or hardware defects, natural disasters,
fire, flood or power loss. Our operations also depend on the timely
maintenance, upgrade and replacement of networks, equipment, IT
systems and software, as well as pre-emptive expenses to mitigate
the risks of failures.
The
ability of the IT function to support our business in the event of
any such failure and the ability to recover key systems from
unexpected interruptions cannot be fully tested. There is a risk
that if such an event were to occur, our response may not be
adequate to immediately address all of the potential repercussions
of the incident. In the event of a disaster affecting our head
office, key systems may be unavailable for a number of days,
leading to inability to perform some business processes in a timely
manner. The failure of our IT systems or a component thereof could,
depending on the nature, materially impact our financial condition,
results of operations, reputation and share price.
Unauthorized access
to our IT systems as a result of cyber-attacks could lead to
exposure, corruption or loss of confidential information, and
disruption to our communications, operations, business activities
or our competitive position. Further, disruption of critical IT
services, or breaches of information security, could expose us to
financial losses and regulatory or legal action. Our risk and
exposure to these matters cannot be fully mitigated because of,
among other things, the evolving nature of these threats. As a
result, cyber- security and the continued development and
enhancement of controls, processes and practices designed to
protect systems, computers, software, data and networks from
attack, damage or unauthorized access remain a
priority.
17
We
apply technical and process controls in line with industry-accepted
standards to protect information, assets and systems. Although
these measures are robust, they cannot possibly prevent all types
of cyber-threat. There is no assurance that we will not suffer
losses associated with cyber-security breaches in the future, and
we may be required to expend significant additional resources to
investigate, mitigate and remediate any potential vulnerabilities.
As cyber-threats continue to evolve, we may be required to expend
additional resources to continue to modify or enhance protective
measures or to investigate and remediate any security
vulnerabilities.
As a foreign private issuer, we are permitted to file less
information with the SEC than a company that is not a foreign
private issuer or that files as a domestic issuer.
As a
"foreign private issuer," we are exempt from certain
rules under the Exchange Act that impose disclosure requirements as
well as procedural requirements for proxy solicitations under
Section 14 of the Exchange Act. In addition, our officers,
directors and principal shareholders are exempt from the reporting
and "short-swing" profit recovery provisions of Section
16 of the Exchange Act. Moreover, we are not required to file
periodic reports and financial statements with the SEC as
frequently or as promptly as a company that files as a domestic
issuer whose securities are registered under the Exchange Act, nor
are we generally required to comply with the SEC's Regulation
FD, which restricts the selective disclosure of material non-public
information. For as long as we are a foreign private issuer we
intend to file our annual financial statements on Form 20-F and
furnish our quarterly financial statements on Form 6-K to the SEC
for so long as we are subject to the reporting requirements of
Section 13(g) or 15(d) of the Exchange Act. However, the
information we file or furnish will not be the same as the
information that is required in annual and quarterly reports on
Form 10-K or Form 10-Q for U.S. domestic issuers. Accordingly,
there may be less information publicly available concerning us than
there is for a company that files as a domestic
issuer.
We may lose our foreign private issuer status, which would then
require us to comply with the Exchange Act's domestic
reporting regime and cause us to incur additional legal, accounting
and other expenses.
We are
required to determine our status as a foreign private issuer on an
annual basis at the end of our second fiscal quarter. We will lose
our current status as a foreign private issuer if (1) a majority of
our common shares are directly or indirectly held of record by
residents of the United States; and (2) either (a) a majority of
our executive officers or directors are
U.S.
citizens or residents, or (b) more than 50 percent of our assets
are located in the United States, or (c) our business is
administered principally in the United States. If we lose this
status, we would be required to comply with the Exchange Act
reporting and other requirements applicable to U.S. domestic
issuers, which are more detailed and extensive than the
requirements for foreign private issuers. We may also be required
to make changes in our corporate governance practices in accordance
with various SEC rules. Further, we would be required to comply
with United States generally accepted accounting principles, as
opposed to IFRS, in the preparation and issuance of our financial
statements for historical and current periods. The regulatory and
compliance costs to us under U.S. securities laws if we are
required to comply with the reporting requirements applicable to a
U.S. domestic issuer may be higher than the cost we would incur as
a foreign private issuer. As a result, we expect that a loss of
foreign private issuer status would increase our legal and
financial compliance costs.
As a Canadian incorporated and domiciled company, our financial
statements are prepared using IFRS accounting principles which are
different than the accounting principles under U.S. Generally
Accepted Accounting Principles.
Our
financial statements have been prepared in accordance with IFRS.
IFRS is an internationally recognized body of accounting principles
that are used by many companies outside of the United States to
prepare their financial statements. IFRS accounting principles are
different from those of U.S. GAAP. Investors who are not familiar
with IFRS may misunderstand certain information presented in our
financial statements. Accordingly, we suggest that readers of our
financial statements familiarize themselves with the provisions of
IFRS accounting principles in order to better understand the
differences between these two sets of principles.
Because we are a Canadian company and the majority of our directors
and officers are resident in Canada or countries other than the
United States, it may be difficult for investors in the United
States to enforce civil liabilities against us based solely upon
the federal securities laws of the United States.
We are
governed by the corporate legislation of British Columbia, where we
amalgamated, and our principal place of business is in Canada. Our
auditors and a majority of our directors and officers are residents
of Canada or countries other than the United States. All or a
substantial portion of our assets and those of such persons are
located outside the United States. Consequently, it may be
difficult for U.S. investors to effect service of process within
the United States upon us or our directors, officers and auditors
who are not residents of the United States or to realize in the
United States upon judgments of U.S. courts predicated upon civil
liabilities under the Securities Act (as defined below). Investors
should not assume that Canadian or other foreign courts: (1) would
enforce judgments of U.S. courts obtained in actions against us or
such persons predicated upon the civil liability provisions of the
U.S. federal securities laws or the securities or "blue
sky" laws of any state within the United States or (2) would
enforce, in original actions, liabilities against us or such
persons predicated upon the U.S. federal securities laws or any
such state securities or blue-sky laws.
18
We are an emerging growth company and we cannot be certain if the
reduced disclosure requirements applicable to emerging growth
companies may make our securities less attractive to investors and,
as a result, adversely affect the price of our securities and
result in a less active trading market for our
securities.
We are
an emerging growth company as defined in Rule 12b-2 under the
Exchange Act, and we may take advantage of certain exemptions from
various reporting requirements that are applicable to other public
companies that are not emerging growth companies. For example, we
have elected to rely on an exemption from the auditor attestation
requirements of Section 404 of the Sarbanes-Oxley Act relating to
internal control over financial reporting, and we will not provide
such an attestation from our auditors.
We may
avail ourselves of these disclosure exemptions until we are no
longer an emerging growth company. We cannot predict whether
investors will find our securities less attractive because of our
reliance on some or all of these exemptions. If investors find our
securities less attractive, it may adversely impact the price of
our securities and there may be a less active trading market for
our securities.
We will
cease to be an emerging growth company upon the earliest
of:
●
the last day of the
fiscal year during which we have total annual gross revenues of
$1,070,000,000 or more;
●
the last day of our
fiscal year following the fifth anniversary of the completion of
our first sale of common equity securities pursuant to an effective
registration statement under the U.S. Securities Act of 1933 (the
"Securities Act");
●
the date on which
we have, during the previous three-year period, issued more than
$1,000,000,000 in non-convertible debt; or
●
the date on which
we are deemed to be a "large accelerated filer", as
defined in Rule 12b–2 of the Exchange Act, which would occur
if the market value of our common shares that are held by
non-affiliates exceeds $700,000,000 as of the last day of our most
recently-completed second fiscal quarter.
The Company's Passive Foreign Investment Company status has
possible adverse tax consequences for U.S. investors.
Because
the Company is an exploration stage company and its only material
revenues consist of passive investment income on its cash
investments, U.S. shareholders of common shares should be aware
that the Company believes it was classified as a passive foreign
investment company ("PFIC") during the tax year ended
December 31, 2019, and based on current business plans and
financial expectations, the Company anticipates that it may be a
PFIC for the current tax year 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 of the common shares, then such
U.S. shareholder generally will be required to treat any gain
realized upon a disposition of common shares, or any "excess
distribution" received on its common shares, as ordinary
income, and to pay an interest charge on a portion of such gain or
distribution, 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 the 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 a 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 adjusted tax basis therein. This paragraph is
qualified in its entirety by the discussion below under the heading
"Certain United States Federal Income Tax
Consequences." Each U.S. shareholder should consult its own
tax advisors regarding the PFIC rules and the U.S. federal income
tax consequences of the acquisition, ownership, and disposition of
common shares.
I
TEM 4.  INFORMATION ON THE COMPANY
A.
History
and Development of the Company
Silver
Elephant Mining Corp. (formerly Prophecy Development Corp.) is an
exploration stage company specializing in mine permitting,
construction, and operations in the United States, Canada, Bolivia
and Mongolia. The Company, in its current form, is primarily the
product of an April 16, 2010 business combination between Red Hill
Energy Inc. and Prophecy Resource Corp. We are currently governed
under the Business Corporations Act (British Columbia)
("BCBCA"). Our head and registered offices are located
at Suite 1610 – 409 Granville Street, Vancouver, British
Columbia, V6C 1T2, Telephone: 604-569-3661.
Red
Hill Energy Inc. was incorporated on November 6, 1978 under the
Corporations Act (British Columbia) under the name "Banbury
Gold Mines Ltd." Banbury changed its name to "Enerwaste
Minerals Corp." on July 3, 1992 and to "Universal
Gun-Loc Industries Ltd." on December 17, 1993. On April 24,
2002, Universal Gun-Loc changed its name to "UGL Enterprises
Ltd." and then to "Red Hill Energy Inc." on May
29, 2006.
19
On
April 16, 2010, Red Hill Energy Inc. changed its name to
"Prophecy Resource Corp." in conjunction with the
merger of Red Hill Energy Inc. and Prophecy Resource
Corp.
On June
13, 2011, the Prophecy Resource Corp. changed its name to
"Prophecy Coal Corp." in connection with its
amalgamation with Northern Platinum Ltd. and Prophecy Holdings Inc.
and an asset spin-off to capitalize the Company's
then-controlled affiliate, Wellgreen Platinum Ltd.
On
January 2, 2015, we completed, by way of a share purchase
agreement, the acquisition of 100% of Apogee Silver Ltd.'s
("
Apogee
")
interest in and to ASC Holdings Limited and ASC Bolivia LDC (which
together, indirectly held through ASC Bolivia LDC Sucursal Bolivia,
Apogee's joint venture interest in the Pulacayo Project and
Apogee Minerals Bolivia S.A. by paying to Apogee $250,000 in cash
and issuing to Apogee 60 million common shares of the
Company.
On
January 5, 2015, Prophecy Coal Corp. changed its name to
"Prophecy Development Corp." in connection with an
acquisition of assets located in Bolivia and to better reflect its
various interests in its mining and energy projects at the time in
the United States, Canada, Bolivia and Mongolia.
On
March 12, 2015, we entered into a credit facility (which, as
amended, we refer to as the "Credit Facility") with
Linx Partners Ltd. (which we refer to as "Linx"), a
private company wholly-owned and controlled by John Lee, our
Interim Chief Executive Officer and Executive Chairman, and a
member of our board of directors (which we refer to as the
"Board"), in order to meet interim working capital
requirements to fund our business operations and financial
commitments. The Credit Facility was amended on May 5, 2015 and
February 24, 2016. The Credit Facility was revolving and had a
maximum principal amount available for advance of $2.5 million. The
Credit Facility had a two-year term with an option to extend for
any number of subsequent one-year terms subject to approval by the
TSX and had a simple interest rate of 18% per annum. We closed out
and terminated the Credit Facility on November 28,
2017.
On May
5, 2015, the Company, through our wholly-owned subsidiary, Red
Hill, entered into a purchase agreement with Khishig Arvin
Industrial LLC, an arm's-length party in Mongolia, to sell
substantially all of our mining and transportation equipment at our
Ulaan Ovoo Property for total proceeds of approximately $2.34
million. The sale, together with the sale of additional equipment
to other arm's-length parties, was completed in June 2015 and
we received approximately $2.9 million in cash. In consideration
for our receiving consent to the sales of the equipment from Linx,
which held a general security interest over all of our property
(including property indirectly held through our subsidiaries such
as Red Hill), we issued the equivalent of 1,200,000 common share
purchase warrants of the Company to Mr. Lee, the beneficial owner
of Linx, exercisable at the equivalent of $0.50 per share for a
period of five years expiring on May 22, 2020.
On
September 1, 2015, we announced a non-brokered private placement
involving the issuance of up to the equivalent of 4,000,000 units
at a price of the equivalent of $0.50 per unit. Each unit consisted
of one common share of the Company and one common share purchase
warrant entitling the holder thereof to acquire an additional
common share of the Company at a price of the equivalent of $0.70
per common share for a period of five years from the date of
issuance. On September 30, 2015, we closed on a first cash tranche
of the aforementioned private placement for gross cash proceeds of
$556,000 through the issuance of the equivalent of 1,112,000 units
(the "Sept. 1, 2015 Private Placement") . The remainder
of this private placement was cancelled on November 4,
2015.
On
November 12, 2015, we announced a non-brokered private placement
involving the issuance of up to the equivalent of 2,500,000 units
at a price of the equivalent of $0.40 per unit (the "Nov. 12,
2015 Private Placement"). Each unit consisted of one common
share of the Company and one common share purchase warrant
entitling the holder thereof to acquire an additional common share
of the Company at a price of the equivalent of $0.70 per common
share for a period of five years from the date of issuance. On
November 13, 2015 we closed on a first tranche of the
aforementioned private placement for gross cash proceeds of
$250,000 through the issuance of the equivalent of 625,000 units.
On December 18, 2015, we announced the closure of the
aforementioned private placement with no further
subscriptions.
On
January 25, 2016, we completed a non-brokered private placement
involving the issuance of the equivalent of 800,000 units at a
price of the equivalent of $0.25 per unit (the "Jan. 25, 2016
Private Placement") , with each unit consisting of one common
share and one warrant to purchase one common share at a price of
the equivalent of $0.40 per common share for a period of five years
from the date of issuance.
On
January 29, 2016, we voluntarily delisted our common shares from
the OTCQX.
On
March 30, 2016, we entered into a debt settlement agreement with
Linx and Mr. Lee, the beneficial owner of Linx, pursuant to which,
we agreed to issue the equivalent of 7,500,000 units to Mr. Lee, in
satisfaction of $1,500,000 of indebtedness owed by us to Linx under
the Credit Facility (the "Mar. 30, 2016 Linx
Settlement") . Each unit consists of one common share and one
warrant to purchase one common share at a price of the equivalent
of $0.40 per common share for a period of five years from the date
of issuance. We issued the aforementioned equivalent of 7,500,000
units on June 6, 2016.
20
On June
7, 2016, we completed the Consolidation.
On
August 29, 2016, we completed a non-brokered private placement
involving the issuance of the equivalent of 2,027,350 units at a
price of the equivalent of $0.38 per unit for gross proceeds of
$770,393 (the "Aug. 29, 2016 Private Placement"). Each
unit consisted of one common share and one-half of one common share
purchase warrant, with each full purchase warrant entitling the
holder thereof to purchase one common share at a price equivalent
of $0.44 per common share for a period of five years from the date
of issuance.
On
September 22, 2016, we sold our 60% interest in the Okeover,
copper-molybdenum project located in British Columbia, Canada to
Lorraine Copper Corp. (which we refer to as
"Lorraine"). Under the terms of the agreement, Lorraine
issued 2,200,000 common shares of Lorraine (valued at $0.08 per
share) to us and assumed our $19,079 payment obligation to
Eastfield Resources Ltd. under such parties' existing joint
venture agreement. We are additionally entitled to receive 30% of
any payments or proceeds resulting from third party agreements
related to the project entered into within five years of the date
of the sale, up to a maximum amount of $1,000,000.
THREE
YEAR HISTORY
Year Ended December 31, 2017
On
January 13, 2017, we closed a non-brokered private placement
involving the issuance of the equivalent of 499,990 units at a
price of the equivalent of $0.30 per unit, with each unit
consisting of one common share and one warrant to purchase one
common share at a price of the equivalent of $0.40 per common share
for a period of five years from the date of issuance.
On
January 13, 2017, we entered into another debt settlement agreement
with Linx and Mr. Lee, the beneficial owner of Linx, to settle most
of the outstanding balance we owed to Linx under the Credit
Facility. We agreed to issue the equivalent of 3,000,000 common
shares of the Company to Mr. Lee, in satisfaction of $900,000 of
indebtedness owed by us to Linx under the Credit Facility. Linx
agreed to accrue and postpone the repayment of any principal,
interest and fees due under the Credit Facility until the earlier
of October 1, 2017, or such time as the Company is in a reasonable
financial position to repay all or a portion of the amounts
owing.
On
February 10, 2017, we acquired the remaining 20% title interest
held by Ransburg International Gold Corp. in the patented claims
that comprise the Titan Project, and issued the equivalent of
200,000 common shares of the Company in consideration
therefor.
On
April 12, 2017, we closed a non-brokered private placement
involving the issuance of the equivalent of 1,032,500 units at a
price of the equivalent of $0.40 per unit, with each unit
consisting of one common share and one warrant to purchase one
common share at a price of the equivalent of $0.50 per common share
for a period of five years from the date of issuance.
On June
22, 2017, we acquired through lease, the Gibellini Project, by
paying USD$35,000 in cash to Janelle Dietrich, (whom we refer to as
the "Gibellini Lessor") with the intent to carry-out
mining operations there. Under the mineral lease agreement, we
agreed to lease the Gibellini mining claims by paying to the
Gibellini Lessor, annual advance royalty payments which will be
tied, based on an agreed formula (not to exceed USD$120,000 per
year), to the average vanadium pentoxide price of the preceding
year. Upon commencement of production, we intend to maintain our
acquisition through lease of the Gibellini mining claims by paying
to the Gibellini Lessor, a 2.5% net smelter return (which we refer
to as "NSR") until a total of USD$3 million is paid.
Thereafter, the NSR will be reduced to 2% over the remaining life
of the mine. All advance royalty payments made, will be deducted as
credits against future production royalty payments. The lease is
for a term of 10 years, which can be extended for an additional 10
years at our option. On April 23, 2018, we amended the mineral
lease agreement to provide us with an option at any time during the
term of the mineral lease agreement, to require the Gibellini
Lessor to transfer her title over all of the leased Gibellini
mining claims (excluding four claims which will be retained by the
Gibellini Lessor and which contain minimal resources) to us in
exchange for USD$1,000,000, to be paid as an advance royalty
payment (we refer to this as the "Transfer Payment").
We received a credit of USD$99,027 towards the Transfer Payment
upon signing of the amendment, with the remaining USD$900,973
portion of the Transfer Payment due and payable by us to the
Gibellini Lessor upon completion of the transfer of the
aforementioned claims from the Gibellini Lessor to us. The advance
royalty obligation and production royalty will not be affected,
reduced or relieved by the transfer of title.
On July
10, 2017, we acquired through lease, the Louie Hill group of claims
in Nevada, USA, by paying USD$10,000 in cash to Richard A. McKay,
Nancy M. Minoletti and Pamela
S.
Scutt (whom we refer to collectively as the "Louie Hill
Lessors") with the intent to carry out mining operations
there. Under the mineral lease agreement, we will lease the Louie
Hill group of claims by paying, to the Louie Hill Lessors, annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed USD$28,000 per year), to the average
vanadium pentoxide price for the preceding year. Upon commencement
of production, we intend to maintain our acquisition through lease
of the Louie Hill group of claims by paying to the Louie Hill
Lessors, a 2.5% NSR of which, 1.5% of the NSR may be purchased by
us at any time for USD$1 million, leaving the total NSR to be
reduced to 1% over the remaining life of the mine. All advance
royalty payments made, will be deducted as credits against future
production royalty payments. The lease is for a term of 10 years,
which can be extended for an additional 10 years at our
option.
21
On
September 20 and October 16, 2017, we closed on the first and
second tranches, respectively, of a non-brokered private placement,
pursuant to which we issued a total of the equivalents of 7,845,460
units and 11,397,110 special warrants each, at a price of the
equivalent of $0.35 per unit or special warrant. Each unit
consisted of one common share and one-half of one share purchase
warrant. Each whole warrant entitles the holder thereof to acquire
one common share at a price equivalent of $0.40 and is exercisable
for a period of three years from the date of issuance. Each Special
Warrant was to be exercisable for one unit at no additional cost to
the holder provided TSX and shareholder approval for the issuance
was obtained within a specified time. On December 18, 2017, all the
special warrants were converted into units, with each such unit
comprised of one common share and one-half of one share purchase
warrant. Each such whole warrant entitled the holder thereof to
acquire one common share at a price equivalent of $0.40 for a
period of three years from the date of issuance.
On
December 5, 2017, we announced we had significantly expanded the
land position at our Gibellini Project by staking 198 new claims
immediately adjacent to the Gibellini Project covering 4091 acres
sufficient to enable future vanadium mining, processing and
extraction.
Our
common shares are listed for trading on the TSX under the symbol
"PCY", the OTCQX under the symbol "PRPCF"
and the Frankfurt Stock Exchange under the symbol
"1P2N".
Year Ended December 31, 2018
On
February 15, 2018, we acquired an additional 105 unpatented lode
mining claims located adjacent to our existing Gibellini Project,
through the acquisition of 1104002 B.C. Ltd. and its Nevada
subsidiary, by paying a total of $335,661 in cash, settling $14,338
in debt and issuing the equivalent of 500,000 share purchase
warrants to arm's-length, private parties.
On
February 27, 2018, we re-listed our common shares on the OTCQX,
which began trading again under the symbol
"PRPCF".
On
April 23, 2018, we announced an amendment to the Gibellini mineral
lease agreement dated June 22, 2017, whereby we were granted the
option to cause the Gibellini Lessor to transfer title to
substantially all of the Gibellini mining claims to us in exchange
for US$1,000,000, to be paid as an advance royalty
payment.
On
August 14, 2018, we closed the Company's non-brokered private
placement for gross proceeds of $1,137,197 through the issuance of
4,061,417 units of the Company. Each unit is comprised of one
common share of the Company and one common share purchase warrant.
Each warrant entitles the holder to purchase one additional common
share of the Company at an exercise price of $0.40 for a period of
three years from the closing of the first tranche of the
placement.
On
August 8, 2018, we completed the Forward Split.
On
August 20, 2018, the Company secured water supply for the Gibellini
Project's construction and operation. The Company signed a
10-year water lease agreement (the "
Agreement
") with the owner of a
private ranch, located approximately 14.5 km from the Gibellini
Project. The Agreement can be extended for any number of additional
7-year terms, not to exceed (with the primary term) a total of 99
years. Per the terms of the Agreement, the lessor has granted to
the Company the rights to 805 acre-feet (approximately 262.4
million gallons) of water per year for the Gibellini Project, at a
minimum flow rate of 500 gallons per minute from its year-round
springs surface water stream.
On
October 2, 2018, the Company signed a Memorandum of Agreement for
voluntary cost recovery with the Bureau of Land Management Battle
Mountain District office (who we refer to as "BLM") to
expedite Gibellini Project permitting efforts. The Company and the
BLM agreed in principal to a fixed cost structure that will have
the Company reimburse the BLM for the cost of all anticipated work
for the BLM to complete its review of the Company's
submission of mine plan of operations and any updates to existing
baseline studies.
On
November 22, 2018, we closed a bought deal financing previously
announced on November 1, 2018, which raised gross proceeds of
$5,520,000. The Company entered into an agreement with BMO Nesbitt
Burns Inc. ("BMO"), under which BMO agreed to buy on a
bought deal basis 12,000,000 Shares, at a price of $0.46 per Share.
The Shares were offered by way of a short form prospectus in each
of the provinces and territories of Canada, except Québec. The
Company incurred $560,576 in common share issuance
costs
On
December 18, 2018, the Company announced that it selected M3
Engineering & Technology Corporation to provide engineering,
procurement, construction and management services for its Gibellini
Project in response to its Request for Proposal issued on August
15, 2018.
22
Year Ended December 31, 2019
On February 14, 2019, the
Company announced that it had retained Amec Foster Wheeler E&C
Services Inc. (Wood) to undertake updating of the mineral resource
and mining section for the Company's upcoming feasibility
study ("FS") to be completed to the standards of NI
43-101 of its Gibellini Project.
On
March 18, 2019 the Company announced that the Ulaan Ovoo Property
had started up. The Company also reported that it had executed a
lease agreement with an arms-length private Mongolian company (the
"Lessee") whereby the Lessee performs mining operations
at the Company's Ulaan Ovoo Property, and will pay the
Company $2 (the "Production Royalty") for every tonne
of coal shipped from the Ulaan Ovoo site premises. The Lessee is
responsible for all capital and operating expenses, government
taxes and royalties related to Ulaan Ovoo operation.
On
March 26, 2019 the Company announced its vanadium assay results
from its fall 2018 exploration reconnaissance program on the
Gibellini Project. There were 155 assays taken from three
prospective exploration areas which all were within 5 km to the
existing Gibellini vanadium NI 43-101 compliant resource
pit.
On May 1, 2019 the Company announced
that it had received guidance regarding expected permitting
timelines following the Company meeting with regulators in late
April 2019. The Company estimated Q1 2020 as the target date for
publication of the Notice of Intent ("NOI") to prepare
an Environment Impact Statement ("EIS") in the Federal
Register. Upon publication of the NOI the review process is
mandated to be completed within a 12-month period
under the
US Department of the Interior's Secretarial Order No. 3355.
Based on this guidance, an
EIS Record of Decision ("ROD") would be expected no
later than Q1 2021. Upon receipt of a positive ROD and issuance of
Nevada State permits, the Company plans to start mine construction
in 2021 and begin vanadium production by Q4
2022.
On May
27, 2019 the Company announced
that its Annual General Meeting
("AGM") had been scheduled for September 12, 2019. Due
to some recent changes in the Company's Management, the AGM
was delayed from being held within six months of its year end. TSX
approval had been obtained to delay the Company's AGM to
September 12, 2019.
On June
19, 2019, the Company announced the appointment of a third party
NEPA contractor and SWCA Environmental Consultants to work under
the direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company, to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record. The
EIS was prepared pursuant to Secretarial Order
3355 in the Federal Register to BLM.
On
July 8, 2019 the Company announced that it had submitted its
updated Plan of Operations (the "POO") through the
Company's U.S. subsidiary for the Gibellini Project to the
BLM and the Reclamation Permit Application to the Nevada Division
of Environmental Protection, Bureau of Mining Regulation and
Reclamation (the "BMRR"). The POO was submitted on
schedule and prepared under budget. The POO submission is the last
major step before the publication of the NOI which will initiate
the EIS process under the Secretary of Interior Order No. 3355
(Streamlining National Environmental Policy Reviews and
Implementation of Executive Order 13807; see Company's news
release dated March 28, 2018 filed on SEDAR). The streamlined EIS
process from NOI to the ROD is one year.
The
Company further announced that a positive resolution was issued
from the Mongolia city tax tribunal regarding the Company's
VAT dispute with the Mongolia tax office. The resolution, which is
binding and final, affirmed the Company's outstanding VAT
credit of 1.169 billion MNT (USD$439,470 based on today's
exchange rate of 2,660 MNT to 1 USD$) which resulted from past
mining equipment purchases. The VAT credit can be used to offset
the Company's taxes and royalty payments; or be refunded in
cash by Mongolia's Ministry of Finance within 12 to 24 months
processing time. In addition, the Company also reported that it had
successfully converted its Chandgana Khavtgai coal exploration
license to a mining license in central Mongolia.
On July
19, 2019, the Company announced its objectives for the second half
of 2019 for its Gibellini Project. The Company plans
to submit the key Nevada state permit applications
required for project construction by the end of the third quarter
of 2019 (Completed). It is anticipated that all approvals will be
received by first quarter of 2021.
On July
29, 2019, the Company the Company granted in aggregate 1,685,000
incentive stock options to its directors, officer and employees of
the Company. The options are exercisable at a price of $0.20 per
common share for a term of five years expiring on November 1, 2024
and vest at 12.5% per quarter for the first two years following the
date of grant.
On
August 19, 2019 the Company announced the formation of two wholly
owned Canadian BC subsidiaries: Silver Elephant Mining Corp. and
Asia Mining Inc. in order to facilitate potential future spinoffs
of the Company's wholly owned Bolivian silver operation and
Mongolian coal operation.
23
On
August 26, 2019 the Company announced that it was undertaking a
non-brokered private placement involving the issuance of 13 million
common shares at a price of $0.20 per share to raise aggregate
gross proceeds of $2,600,000 (the "Aug. 26, 2019 Private
Placement"). The Company's management and directors
subscribed to 2 million common shares in the Aug. 26, 2019 Private
Placement. These common shares were subject, under applicable
Canadian securities laws, to a minimum hold period of four months
plus one day from the date of issue.
On
September 6, 2019, the Company closed the Aug. 26, 2019 Private
Placement. The Placement raised gross cash proceeds of $2,600,000
through the issuance of 13,000,000 common shares of the Company at
a price of $0.20 per share. The Company paid $10,000 in cash and
issued 525,000 shares as finder's fees. Proceeds of the Aug.
26, 2019 Private Placement are to be used to develop the
Company's mineral projects and for general working capital
purposes.
On
September 24, 2019 the Company announced the successful completion
of its internal reorganization. The Company further announced,
subject to approval by the TSX, that it would issue 175,000 common
shares, with a four-month hold period under applicable Canadian
securities laws, to Mr. Bryan Slusarchuk in exchange for consulting
services to the Company.
On
September 30, 2019, the Company announced a 5,000-meter diamond
drilling at its Pulacayo Project had started with first set of
assay results expected in early November, 2019.
On
October 3, 2019, the Pulacayo Mining Production Contract
("MPC") was executed between the Company and the
Corporación Minera de Bolivia ("COMIBOL"), a
branch of the Bolivian Ministry of Mining and Metallurgy.
Notification of the final government resolution approving the MPC
was received on September 27, 2019. The MPC granted the Company the
100% exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years, which is comparable to a mining
license in Canada or the United States. The Company's
Bolivian subsidiaries had spent $25 million on Pulacayo and Paca as
of October 3, 2019 with over 80,000 meters of drilling, with a
completed historic independent FS study, and an approved detailed
environment impact assessment ("DEIA").
On
October 7, 2019, the Company announced that it was undertaking a
non-brokered private placement involving the issuance of 10 million
common shares at a price of $0.40 per share (the "Oct. 7,
2019 Private Placement") to raise aggregate gross proceeds of
$4,000,000.
On
October 9, 2019, the Company issued 104,951 common shares at a
value of $43,060 to its directors to settle outstanding director
fees.
On
October 21, 2019, the Company announced that it has closed the Oct.
7, 2019 Private Placement. The Oct. 7, 2019 Private Placement
raised gross cash proceeds of $3,900,000 for Company through the
issuance of 9,750,000 common shares of the Company at a price of
$0.40 per share. Mr. Eric Sprott, through 2176423 Ontario
Ltd., a corporation that is beneficially owned by him, acquired
5,000,000 shares under the Oct. 7, 2019 Private Placement for a
total consideration of $2,000,000. Following the completion of the
private placement, Mr. Sprott's holdings represented 9% of
the issued and outstanding common shares of the Company at the time
the Oct. 7, 2019 Private Placement. Mr. Sprott beneficially owned
5,9000,000 common shares in the Company prior to this investment.
The Company's management and directors purchased 0.4 million
common shares for proceeds of $160,000. The Company issued 654,500
common shares as finder's fees to Mackie Research Capital
Corp. All shares issued in the Oct. 7, 2019 Private Placement were
subject to a four month and one day hold period under applicable
Canadian securities laws. Proceeds are to be used for the
Company's mineral project development and for general working
capital purposes.
On
October 28, 2019, the Company announced the diamond drilling
results from the Company's 100% controlled Paca silver
project in the Potosi department of Bolivia
On
November 1, 2019, the Company granted in aggregate 1,680,000
incentive stock options to its directors, officer and employees of
the Company. The options are exercisable at a price of $0.44 per
common share for a term of five years expiring on November 1, 2024
and vest at 12.5% per quarter for the first two years following the
date of grant.
On
November 7, 2019, the Company
a
nnounced that it had submitted, through
its wholly owned US subsidiary Nevada Vanadium, LLC ("Nevada
Vanadium"), the applications and Engineering Design Reports
for the primary mining permits that govern project construction,
operations and closure for its Gibellini Project located in Eureka
County, Nevada, U.S., to BLM and the Gibellini Project EIS
contractor SWCA Environmental Consultants. The permit applications
were submitted on October 31, 2019 for the Water Pollution Control
Permit and the Class II Air Quality Permit. These Nevada state
permits have been developed to provide construction level
engineering that supports the mine plan previously submitted to the
BLM in the POO. Comments received from both the BLM and SWCA were
used as guidance in the engineering design to ensure the State and
Federal Permits are aligned and reflect the most current guidance
provided by both the Company and Nevada Vanadium
LLC.("NDEP") and BLM.
On
December 4, 2019, the Company announced that it had received on
November 18, 2019, the 18-page Resolution No. 195/2018 issued by
the Supreme Court of Bolivia (the "2019 Resolution"),
signed by all of its nine judges. It declared that the contentious
tax claim of US$6,556,787 (US$816,769.54 income tax on alleged 2003
profits and US$5,740,017.81 in interests and penalties) brought by
Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary was not proven. The 2019
Resolution is final and binding. Hence neither the Company nor the
Company's Bolivian subsidiaries owe any outstanding back taxes to
the Bolivian General Revenue Authority.
24
On
December 18, 2019, the Company
announced that the
phase two drilling had commenced at the Pulacayo Project. It is a
5,000-meter program that will consist mainly of wide step-out
drilling up to 1.5km west (Western Block) of the current 43-101
Pulacayo resource. That current Pulacayo resource covers 1.4 km in
strike and represents only a small portion of the Tajo vein system
(the "TVS") which is over 3 km in strike and open to
least 1,000 meters at depth, according to historical records of
underground mining
.
During
the year ended December 31, 2019, the Company experienced various
changes in Directors, Officers and Management of the Company as
follows:
●
Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;
●
John Lee ceased to
act as Head of International Affairs on February 15,
2019;
●
Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;
●
Louis Dionne ceased
to be a Director on February 28, 2019;
●
Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;
●
Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;
●
John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;
●
Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;
●
Marc Leduc was
appointed as a Director on July 22, 2019;
●
Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;
●
Ronald Clayton was
appointed as a Director on November 4, 2019;
●
Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;
●
Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and
●
Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019;
Subsequent Events to December 31, 2019
On
January 8, 2020, the Company announced the following:
●
a special meeting
(the "Special Meeting") of the shareholders to be held
on March 16, 2020 to seek shareholder approval the
following:
●
changing the name
of Prophecy Development Corp. to Silver Elephant Mining Corp. (the
"Name Change");
●
to consolidate the
Company's issued and outstanding common shares at a ratio
between one (1) new common share for every five (5) to ten (10)
issued and outstanding common shares (the "2020
Consolidation").
●
●
proposed new symbol
of "ELEF" for the trading of the Company's common
shares on the TSX; and
●
ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company's 20% fixed share-based
compensation plan, as amended (the "Share-Based Compensation
Plan").
●
the engagement of
Ken Cotiamco to provide investor relations and shareholder
communications services effective January 6, 2020. The Company
further announced that Ken Cotiamco entered into a consulting
agreement whereby Ken Cotiamco would receive from the Company
remuneration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
per common share for a term of five years expiring on January 6,
2025;
●
pursuant to the
Company's Share-Based Compensation Plan, the issuance of an
aggregate of 1,601,000 common shares (subject to a minimum hold
period of four months plus one date from the date of issuance,
under applicable Canadian securities laws) as 2019 bonus payments
to certain directors, officers, employees and consultants of the
Company;
●
that further to the
Company's news release dated December 18, 2019, the Company
had completed the first of 3 holes of the planned 17 drill holes at
the Pulacayo Project; and
●
the Company had
mobilized a second drilling rig to the Pulacayo Project and expects
to complete the proposed 5,000 meter drill program in February 2020
with full assay results by March 2020On January 21, 2020, the
Company provided its
first step-out
diamond drilling results from its 100%-controlled Pulacayo
Project.
25
On
March 6, 2020, the Company provided its 2,598-meter, 16-hole
Pulacayo step out drill program from its 100%-controlled Pulacayo
Project.
On
March 9, 2020, the Company commenced its district exploration
program at its Pulacayo Project.
On
March 16, 2020, the company held its Special Meeting of
Shareholders. The Company received shareholder approval of the
following:
➢
changing its name
of Prophecy Development Corp. to Silver Elephant Mining
Corp.;
➢
the 2020
Consolidation; and
➢
ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company's Share-Based
Compensation Plan.
On
March 16, 2020, the Company amended its articles of incorporation
(the "Articles") and changed its name to "Silver
Elephant Mining Corp."
On
March 19, 2020, the Company changed its' symbol on the TSX
from PCY to "ELEF".
On
March 23, 2020, the Company changed its' symbol on the OTCQX
from PRPCF to "SILEF".
In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company's business or results of
operations at this time.
The
Company has not made any capital divestitures during the past three
fiscal years.
The
Company made no capital divestitures during the past three fiscal
years.
Currently, we do
not have operating revenues, and we do not anticipate generating
operating revenues during the fiscal year 2020. Our primary source
of funds since inception has been through the issuance of equity
securities. At December 31, 2019, the Company had cash flow of $3
million (2018 - $5.3 million; 2017 - $4.1 million) representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company's working capital at December 31, 2019 was
a surplus of $ 0.95 million (2018 - $3.8 million; 2017 - $2.6
million). We will continue to seek capital through the issuance of
equity, strategic alliances or joint ventures, and debt, of which
the Company currently has none.
The SEC
maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers
that file electronically with the SEC at:
http://www.sec.gov
. The
Company's Internet address is
https://www.silverelef.com
.
B.
Business
Overview
We are
an exploration stage company focusing on mining and energy projects
in the United States, Canada, Bolivia and Mongolia. We are involved
in two vanadium projects in North America including the Gibellini
Project which is comprised of the Gibellini and Louie Hill vanadium
deposits and associated claims located in the State of Nevada, in
the United States and the Titan vanadium-titanium-iron project
comprised of the Titan vanadium-titanium-iron deposit and related
claims located in the Province of Ontario, Canada. We also own a
100% interest in the Pulacayo Project, a silver-lead-zinc property
located in Bolivia. We also own a 100% interest in three coal
properties in Mongolia: the Ulaan Ovoo Property, the Khavtgai Uul
coal property located in Khentii province, Mongolia
("Khavtgai Uul Property") and the Chandgana Tal
Property, in addition to the land use right and construction
license for the Chandgana Project. We do not currently consider our
properties in Canada, Bolivia or Mongolia to be material
properties.
Our
principal business is the acquisition, exploration and development
of mineral and energy projects. Our business strategy focus is to
make our Gibellini Project the first operating primary vanadium
mine in North America, offering the best quality vanadium pentoxide
product that exceeds customer requirements in a variety of
high-tech applications such as batteries and aerospace. We are also
considering development of our Titan Project and the acquisition of
other vanadium resources to augment Gibellini and position us as a
major producer of vanadium.
The
vanadium resources are part of a portfolio of projects we are
building that, through their diversity of locations, commodities
and products, reduces our exposure to adverse regulation and
political climates and changes in specific commodity prices. A
diverse portfolio of projects from which a variety of minerals are
mined and sold provides multiple opportunities to maintain revenue
and is one facet of our efforts to attain our ultimate objective of
stable positive cash flow.
All of
the properties in which we hold an interest are considered to be in
the exploration stage only and do not contain a known body of
commercial minerals. As of the date of this Annual Report, we have
not commenced production at any of our properties, other than Ulaan
Ovoo Property.
Principal Products, Markets and Marketing
At the
moment, we are not in production and we do not produce any products
or minerals. Based on the projects that we are developing, our
possible future products may include, but will not be limited to,
raw thermal coal, zinc-silver concentrate, lead-silver concentrate
and vanadium pentoxide product.
We are
working to bring Gibellini into production as soon as possible in
order to address the supply-demand gap for vanadium projected to
2020. The projected demand is largely driven by
environmental-related actions by the Chinese government which is
intensified by increasing demand for vanadium redox flow storage
batteries. The supply-demand gap will affect all uses of vanadium
including steel manufacture, high tech applications and large
capacity vanadium redox flow batteries.
Our
marketing efforts have mostly been in assessing the reasons and
sources of demand, but we have also conducted concept-level
negotiations for supplying Gibellini vanadium to traders and
battery manufacturers. As the Gibellini Project develops and more
reliable information concerning timing, volume and quality become
available, we will increase our marketing efforts. We will be
primarily competing with other mining projects that produce raw
thermal coal, zinc-silver concentrate, lead-silver concentrate and
vanadium pentoxide. Our possible principle markets for vanadium
pentoxide product may be Europe and/or China. Below are the 3-year
historical industry pricing charts, USD$ per lb., for the vanadium
pentoxide flake, minimum 98% vanadium pentoxide content, delivered
in China and Europe.
27
International
mineral commodity pricing is generally established in US dollars
and the competitive positioning between producers can be
significantly affected by fluctuations in exchange rates. The
competitiveness of mineral producers is significantly determined by
the grade or quality of the deposit, production costs and
transportation costs relative to other producers. Such costs are
largely influenced by the location and nature of mineral deposits,
mining and processing costs, transportation and port costs,
currency exchange rates, operating and management skills, and
differing taxation systems between countries.
28
Seasonality
The
mining business is subject to mineral commodities price cycles. If
the global economy stalls and commodity prices decline, as a
consequence, a continuing period of lower prices could
significantly affect the economic potential of our properties and
result in us determining to cease work on or drop our interest in,
some or all of our properties.
Sources and Availability of Raw Materials
All of
the raw materials we require to carry on our business are available
through normal supply or business contracting
channels.
Economic Dependence
Our
business is not substantially dependent on any one contract such as
a property option agreement or a contract to sell the major part of
our output.
Government Regulations
Our
exploration and future development activities are subject to
various national, state, provincial and local laws and regulations
in the Unites States, Bolivia, Canada and Mongolia, which govern
prospecting, development, mining, production, exports, taxes, labor
standards, occupational health, waste disposal, protection of the
environment, mine safety, hazardous substances and other
matters.
Mining
and exploration activities at our properties in North America are
subject to various laws and regulations relating to the protection
of the environment, such as the General Mining Law, U.S. federal
Clean Water Act and the Nevada Water Pollution Control Law, both of
which we discuss under the heading "
Risk Factors
" in this Annual
Report. Although, we intend to comply with all existing
environmental and mining laws and regulations, no assurance can be
given that we will be in compliance with all applicable regulations
or that new rules and regulations will not be enacted or that
existing rules and regulations will not be applied in a manner that
could limit or curtail development of our properties. Amendments to
current laws and regulations governing exploration and development
or more stringent implementation thereof could have a material
adverse effect on our business and cause increases in exploration
expenses or require delays or abandonment in the development of
mining properties. In addition, we are required to expend
significant resources to comply with numerous corporate governance
and disclosure regulations and requirements adopted by U.S. federal
and Canadian federal and provincial governments. These additional
compliance costs and related diversion of the attention of
management and key personnel could have a material adverse effect
on our business.
Except
as described in this Annual Report, we believe that we are in
compliance in all material respects with applicable mining, health,
safety and environmental statutes and regulations.
For a
more detailed discussion of the various government laws and
regulations in the United States applicable to our operations and
the potential negative effects of such laws and regulations, see
the section "
Item 3.D. Risk
Factors
."
29
C.
Organizational
Structure
The
chart below illustrates the inter-corporate relationships among us
and our subsidiaries, the percentage of voting securities of such
subsidiaries owned by us, and each subsidiary's jurisdiction
of incorporation as of the date of this Annual Report.
Notes:
(1)
On March 16, 2020,
Prophecy Development Corp. changed its name to Silver Elephant
Mining Corp.
(2)
On June 14, 2019,
Vanadium Gibellini Company LLC. changed its name to Nevada Vanadium
LLC.
(3)
On December 17,
2019, the Company completed an internal reorganization by
transferring ASC Holdings Limited (Cayman) from the Company to its
Silver Elephant Mining Corp. subsidiary.
(4)
On January 6, 2020,
the Company's Silver Elephant Mining Corp. subsidiary changed
its name to Illumina Silver Mining Corp.
We hold
mining and energy properties and projects through the following
subsidiaries:
Subsidiary
Mining
Properties and Projects
Nevada
Vanadium LLC.
(formerly "Vanadium Gibellini Company
LLC.")
● Has
claimed 209 lode mining claims that comprise a portion of the
Gibellini Project in Nevada, including three of the 17 claims that
comprise the expanded Louie Hill group of claims.
VC
Exploration (US) Inc.
● 100%
interest in 105 unpatented lode mining claims that comprise a
portion of the Gibellini Project in Nevada, USA.
912601
B.C. Ltd.
● 100%
interest in the Titan vanadium-titanium-iron property located in
the Province of Ontario, Canada.
Red
Hill Mongolia LLC
● 100%
interest in the Ulaan Ovoo Property located in Selenge province,
Mongolia.
Chandgana Coal
LLC
● 100%
interest in the Chandgana Tal coal property (the "Chandgana
Tal Property") and Khavtgai Uul Property located in Khentii
province, Mongolia. We refer to the Chandgana Tal Property and the
Khavtgai Uul Property collectively as the "Chandgana
Project."
Prophecy Power
Generation LLC
● Holds
the land use right and construction license for the Chandgana
Project planned in Khentii province, Mongolia.
ASC
Bolivia LDC Sucursal Bolivia
● Holds
the mining joint venture interest in the Pulacayo
Project.
Additionally, we
hold, through lease, the 40 unpatented lode mining claims that make
up the Gibellini group of claims.
D.
Property,
Plants and Equipment
General
Currently, we
consider only the Gibellini Project to be material. We do not
currently consider the Titan Project or any of our Bolivian or
Mongolian properties to be material.
Portions of the
following excerpts are based on the assumptions, qualifications and
procedures set forth in the respective technical reports which,
while not fully described herein, have been filed on SEDAR
(available at
www.sedar.ca
)
and EDGAR (
www.sec.gov
).
Please
refer to the discussion under the heading "Cautionary Note
Regarding Forward-Looking Statements" at the beginning of
this Annual Report for important information concerning certain
mining terms and descriptions of our mineral deposits used or
contained in this section.
30
GIBELLINI
PROJECT
The
scientific and technical information in this section of the Annual
Report relating to the Gibellini Project has been extracted or
summarized from the technical report titled "Gibellini
Vanadium Project, Eureka County, Nevada, NI 43-101 Technical Report
on Preliminary Economic Assessment" with an effective date of
May 29, 2018 (the "Gibellini Technical Report"). The
Gibellini Technical Report was prepared by Kirk Hanson, P.E.,
Edward J.C. Orbock III, RM SME, Edwin Peralta, P.E., and Lynton
Gormely, P.Eng., all of Amec Foster Wheeler E&C Services Inc.
("AMEC").
The
Gibellini Project discussion below includes the Gibellini and Louie
Hill vanadium deposits, claims leased by us and claims held by our
subsidiaries Nevada Vanadium, LLC. (formerly "Vanadium
Gibellini Company LLC") and VC Exploration (US), Inc. located
in the state of Nevada, USA.
Project
Location
The
Gibellini project includes the Gibellini group of claims leased by
the Company, the VC Exploration (US) Inc. group of claims and the
Nevada Vanadiumgroup of claims (the "Gibellini
Project")]. Figure 1 below shows the location of the claims.
On June 22, 2017, the Company acquired (through lease) the
Gibellini group of claims which is located in Eureka County,
Nevada, Unites States of America about 25 miles south of the town
of Eureka. The Gibellini group of claims is comprised of 40
unpatented lode claims totaling approximately 771 acres. Under the
mineral lease agreement, we leased the mining claims by committing
to pay to the Gibellini Lessors, annual advance royalty payments
which will be tied, based on an agreed formula (not to exceed
USD$120,000 per year), to the average vanadium pentoxide price of
the prior year. Upon commencement of production, we will maintain
our acquisition through lease of the Gibellini mining claims by
paying to the Gibellini Lessors, a 2.5% NSR until a total of USD$3
million is paid. Thereafter, the NSR will be reduced to 2% over the
remaining life of the mine (and referred to thereafter, as
"production royalty payments"). All advance royalty
payments made, will be deducted as credits against future
production royalty payments.
The
lease is for a term of 10 years, which can be extended for an
additional 10 years at our option. On April 23, 2018, we amended
the mineral lease agreement to provide us with an option at any
time during the term of the mineral lease agreement, to require the
Gibellini Lessor to transfer her title over all of the leased
Gibellini mining claims (excluding four claims which will be
retained by the Gibellini Lessor and which contain minimal
resource) to us in exchange for USD$1,000,000, to be paid as an
advance royalty payment (the "Transfer Payment"). We
were credited with USD$99,027 towards the Transfer Payment upon
signing of the amendment, and the remaining USD$900,973 portion of
the Transfer Payment will be due and payable by us to the Gibellini
Lessor upon completion of the transfer of the aforementioned claims
from the Gibellini Lessor to us. The advance royalty obligation and
production royalty payments will not be affected, reduced or
relieved by the transfer of title. The Gibellini group of claims
were previously leased to American Vanadium US Inc., which lease
expired on February 29, 2016.
FIGURE 1
31
On July
13, 2017, we acquired (through lease) 10 unpatented lode claims
totaling approximately 207 gross acres that formerly comprised the
Louie Hill group of claims located approximately 500 meters south
of the Gibellini group of claims. These claims were subsequently
abandoned by the holders, and on March 11, 2018 and March 12, 2018,
the Company's wholly owned US subsidiaries, Nevada Vanadium
and VC Exploration (US) Inc., staked the area within and under 17
new claims totaling approximately 340 gross acres which now
collectively comprise the expanded Louie Hill group of claims. We
believe opportunities exist to further expand the project beyond
its current definition.
On
December 5, 2017, we expanded the land position at the Gibellini
Project, by staking a total of 198 new claims immediately adjacent
to the Gibellini Project covering 4091 acres that are sufficient to
enable future vanadium mining, processing and
extraction.
On
October 22, 2018, the Company entered into a royalty agreement (the
"Royalty Agreement") with the Former Louie Hill Lessors
to replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company's subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year.
Upon
commencement of production, the Company will pay to the Former
Louie Hill Lessors, a 2.5% NSR of which, 1.5% of the NSR may be
purchased at any time by the Company for USD$1 million, leaving the
total NSR to be reduced to 1% over the remaining life of the mine
(and referred to thereafter, as "Production Royalty
Payments"). All advance royalty payments made, will be
deducted as credits against future Production Royalty Payments. The
Royalty Agreement shall be for an indefinite period and shall be
valid and in full force and effect for as long as the Company, its
subsidiaries, or any of their permitted successors or assigns holds
a valid and enforceable mining concession over the
area.
The
expanded Louie Hill group of claims is located in the same
formation and lithologic units as the Gibellini group of claims.
The general geology in this area is considered to be similar to the
Gibellini group of claims.
The VC
Exploration group of claims include 105 lode claims that were
acquired indirectly by the Company through the indirect acquisition
of VC Exploration (US), Inc. in early 2018. The Gibellini group of
claims consist of 209 lode claims staked by Nevada Vanadium in late
2017 and early 2018.
The Gibellini Project consists of a
total of 354 unpatented lode mining claims that include: the
Gibellini group of 40 claims, the VC Exploration group of 105
claims, and the Company group of 209 claims. The Gibellini group of
claims is referred to by the Company as a "project".
All the claims are
located in Eureka County, Nevada,
approximately 25 miles south of the town of Eureka and are easily
accessed from US Highway 50 to a paved road that becomes a graded,
gravel road.
The
Gibellini Project is without known reserves and is exploratory in
nature.
History
Work
completed on the Gibellini Project prior to our involvement was
undertaken by a number of companies, including the Nevada Bureau of
Mines and Geology (NBMG, 1946), Terteling & Sons
(1964–1965), Atlas and TransWorld Resources (1969), Noranda
(1972–1975), and Inter-Globe (1989). Rocky Mountain Resources
(RMP), later renamed to American Vanadium, conducted work from
2006–2011.
The
Nevada Bureau of Mines and Geology completed four core holes in
1946. Work in the period 1964–1989 comprised rotary drilling,
trenching, mapping, metallurgical testing, and mineral resource
estimation. From 2006 to 2011, work programs included review of
existing data, geological mapping, an XRF survey, reverse
circulation (RC) and core drilling, additional metallurgical test
work, and Mineral Resource estimation. A preliminary assessment was
completed in 2008 and a FS was commissioned in late 2010. Both
studies were based on the Gibellini deposit and did not include the
Louie Hill deposit. We do not consider these studies to be current
and are considered historic under the guidelines of NI
43-101.
Resources
On May
29, 2018, we received the Gibellini Technical Report providing an
updated the resource on the Gibellini Project.
32
Gibellini Deposit
The
Gibellini Technical Report disclosed an estimated 7.94 million tons
at a weighted average grade of 0.314% vanadium pentoxide
(V
2
O
5
) in the Measured
category and 15.02 million tons at a weighted average grade of
0.271% V
2
O
5
in the Indicated
category leading to a total combined Measured and Indicated Mineral
Resource of 22.95 million tons at a weighted average grade of
0.286% V
2
O
5
. Total contained
metal content of the Measured and Indicated Mineral Resources is
131.34 million pounds V
2
O
5
. The Inferred
Mineral Resource estimate is 14.97 million tons at a weighted
average grade of 0.175% V
2
O
5
. The total
contained metal content of the Inferred Mineral Resource estimate
is 52.30 million pounds V
2
O
5
. The table below
contains a summary of the Gibellini deposit resource
estimate:
Confidence
Category
Domain
Cut-offV
2
O
5
(%)
Tons(Mt)
GradeV
2
O
5
(%)
ContainedV
2
O
5
(Mlb)
Measured
Oxide
0.101
3.96
0.251
$
19.87
Transition
0.086
3.98
0.377
29.98
Indicated
Oxide
0.101
7.83
0.222
34.76
Transition
0.086
7.19
0.325
46.73
Total Measured and Indicated
22.95
0.286
131.34
Oxide
0.101
0.16
0.170
0.55
Inferred
Transition
0.086
0.01
0.180
0.03
Reduced
0.116
14.80
0.175
51.72
Total Inferred
14.97
0.175
52.30
Notes to accompany Mineral Resource table for
Gibellini
1.
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME. The Mineral Resources have an effective date of May 29,
2018.
2.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3.
Mineral Resources are reported at various cut-off grades for oxide,
transition, and reduced material.
4.
Mineral Resources are reported within a conceptual pit shell that
uses the following assumptions: Mineral Resource V
2
O
5
price: $14.64/lb;
mining cost: $2.21/ton mined; process cost: $13.62/ton; general and
administrative (G&A) cost: $0.99/ton processed; metallurgical
recovery assumptions of 60% for oxide material, 70% for transition
material and 52% for reduced material; tonnage factors of 16.86
ft3/ton for oxide material, 16.35 ft3/ton for transition material
and 14.18 ft3/ton for reduced material; royalty: 2.5% NSR; shipping
and conversion costs: $0.37/lb. An overall 40º pit slope angle
assumption was used.
5.
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.
Louie Hill Deposit
The
Louie Hill deposit lies approximately 1,600 ft south of the
Gibellini deposit.
The
Gibellini Technical Report provides an Inferred Mineral Resource of
7.52 million tons at a weighted average grade of 0.276% vanadium
pentoxide (V
2
O
5
). The oxidation
domains were not modeled. The total contained metal content of the
estimate is 41.49 million pounds V
2
O
5
. The table below
summarizes the Louie Hill deposit resource estimate:
ContainedV
2
O
5
Confidence
Category
Cut-offV
2
O
5
(%)
Tons(Mt)
GradeV
2
O
5
(%)
(Mlb)
Inferred
0.101
7.52
0.276
41.49
33
Notes to accompany Mineral Resource table for Louie
Hill
1.
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME. The Mineral Resources have an effective date of May 29, 2018.
The resource model was prepared by Mr. Mark Hertel, RM
SME.
2.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3.
Oxidation state was not modeled.
4.
Mineral Resources are reported within a conceptual pit shell that
uses the following assumptions: Mineral Resource V2O5 price:
$14.64/lb.; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative (G&A) cost: $0.99/ton processed;
metallurgical recovery assumptions of 60% for mineralized material;
tonnage factors of 16.86 ft3/ton for mineralized material, royalty:
2.5% NSR; shipping and conversion costs: $0.37/lb. For the purposes
of the resource estimate, an overall 40º slope angle
assumption was used.
5.
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.
A total
of 280 drill holes (about 51,265 ft) have been completed on the
Gibellini Project since 1946, comprising 16 core holes (4,046 ft),
169 rotary drill holes (25,077 ft; note not all drill holes have
footages recorded) and 95 reverse circulation holes (22,142
ft).
The
vanadium-host shale unit ranges from 175 to over 300 ft thick and
overlies gray mudstone. The shale has been oxidized to various hues
of yellow and orange to a depth of 100 ft. Alteration (oxidation)
of the rocks is classified as one of three oxide codes: oxidized,
transitional, and reduced.
No
significant work has been conducted on the Gibellini Project since
2011. Some minor prospecting was completed in October 2018, We have
completed no trenching or drilling activities since the Gibellini
Project acquisition.
The
power supply for the Gibellini Project site is assumed to be at
24.9 kV and will supplied from a planned substation to be located
near Fish Creek Ranch. This substation will tap and step-down the
69kV supply carried by the line to the Pan Mine to 24.9kV and place
it on a line to the Gibellini Project. Negotiations with the power
utility, Mt. Wheeler Power, would need to be undertaken to secure
any future power supply contract and transmission line to the
site.
Summary
of Geological Setting and Mineralization Regional
Geology
The
Gibellini property occurs on the east flank of the southern part of
the Fish Creek Range. The southern part of the Fish Creek Range,
consists primarily of Paleozoic sedimentary rocks of Ordovician to
Mississippian Age of the eastern carbonate, western siliceous, and
overlap assemblages. Tertiary volcanic rocks crop out along the
eastern edge of the range and Tertiary to Quaternary sedimentary
rocks and alluvium bound the range to the west and east in the
Antelope and Little Smoky valleys, respectively. North to
northeast-trending faults dominate in the region, particularly
along the eastern range front.
The
Gibellini property lies within the Fish Creek Mining District. The
limestone hosted Gibellini Manganese-Nickel mine and the Gibellini
and Louie Hill black-shale hosted vanadium deposits are the most
significant deposits in the district, and all occur within the
Gibellini property boundary. The Bisoni-McKay black-shale hosted
vanadium deposit occurs several miles south of the Gibellini
property. A fluorite–beryl prospect and
silver–lead–zinc vein mines with minor production are
also reported to occur in the district.
Project
Geology
The
Gibellini deposit occurs within an allocthonous fault wedge of
organic-rich siliceous mudstone, siltstone, and chert, which forms
a northwest trending prominent ridge. These rocks are mapped as the
Gibellini facies of the Woodruff Formation of Devonian Age
(Desborough et al., 1984). These rocks are described by Noranda as
thin-bedded shales, very fissile and highly folded, distorted and
fractured (Condon, 1975). In general, the beds strike
north-northwest and dip from 15 to 50° to the west. Outcrops
of the shale are scarce except for along road cuts and trenches.
The black shale unit which hosts the vanadium resource is from 175
ft to over 300 ft thick and overlies gray mudstone. The shale has
been oxidized to various hues of yellow and orange up to a depth of
100 ft.
The
Woodruff Formation is interpreted to have been deposited as
eugeosynclinal rocks (western assemblage) in western Nevada that
have been thrust eastward over miogeosynclinal rocks (eastern
assemblage) during the Antler Orogeny in late Devonian
time.
34
The
Gibellini facies is structurally underlain by the Bisoni facies of
the Woodruff Formation. The Bisoni unit consists of dolomitic or
argillaceous siltstone, siliceous mudstone, chert, and lesser
limestone and sandstone (Desborough and others, 1984).
Structurally
underlying the Woodruff Formation are the coarse clastic rocks of
the Antelope Range Formation. These rocks are interpreted to have
been deposited during the Antler Orogeny and are attributed to the
overlap assemblage.
The
Louie Hill deposit is located in the same formation and lithologic
units as the Gibellini deposit. The general geology in this area is
thought to be similar to the Gibellini deposit area.
The
ridge on which the Gibellini Manganese-Nickel mine (Niganz mine)
lies is underlain by yellowish-gray, fine-grained limestone. This
limestone is well bedded with beds averaging 2 ft thick. A
fossiliferous horizon containing abundant Bryozoa crops out on the
ridge about 100 ft higher than the mine. The lithologic and faunal
evidence suggest that this unit is part of the Upper Devonian
Nevada Limestone. Beds strike at N18E to N32W and dip at 18 degrees
to 22 degrees west. The manganese–nickel mineralization
occurs within this unit. Alluvium up to 10 ft thick overlies part
of the area and is composed mostly of limy detritus from the high
ridge north of the mine. Minor faulting has taken place in the
limestone near the
Deposit Descriptions
Gibellini
Deposit
The
Gibellini deposit occurs within organic-rich siliceous mudstone,
siltstone, and chert of the Gibellini facies of the Devonian Age
Woodruff Formation.
In
general, the beds strike north-northwest and dip from 15º to
50º to the west. The black shale unit which hosts the vanadium
Mineral Resource is from 175 ft to over 300 ft thick and overlies
gray mudstone of the Bisoni facies. The shale has been oxidized to
various hues of yellow and orange up to a depth of 100
ft.
Alteration
(oxidation) of the rocks is classified as one of three oxide codes:
oxidized, transitional, and reduced. Vanadium grade changes across
these boundaries. The transitional zone reports the highest average
grades and RMP geologists interpreted this zone to have been
upgraded by supergene processes.
Louie Hill
The
Louie Hill deposit lies approximately 500 m south of the Gibellini
deposit, being separated from the latter by a prominent drainage.
Mineralization at Louie Hill is hosted by organic-rich siliceous
mudstone, siltstone, and chert of the Gibellini facies of the
Devonian Woodruff Formation and probably represents a dissected
piece of the same allochthonous fault wedge containing the
Gibellini deposit.
Mineralized beds
cropping out on Louie Hill are often contorted and shattered but in
general strike in a north–south direction, and dip to the
west 0 to 40º.
Rocks
underlying the Louie Hill Deposit consist of mudstone, siltstone
and fine-grained sandstone probably of Mississippian age (Webb
and/or Chainman Formations). Oxidation of the mineralized rocks has
produced light-colored material with local red and yellow bands of
concentrated vanadium minerals.
Activities
and Developments
2017
On July 10, 2017, the Company acquired
(through lease) from the holders (
the "Former Louie
Hill Lessors")
10
unpatented lode claims totaling approximately 207 gross acres that
comprised the Louie Hill group of claims
located
approximately 500 meters south of the Gibellini group of claims.
These claims were subsequently abandoned by the Former Louie Hill
Lessors, and on March 11 and 12, 2018, the Company staked the area
within and under 17 new claims totaling approximately 340 gross
acres which now collectively comprise the expanded Louie Hill group
of claims.
On November 20, 2017,
the Company received an independent technical report titled
"Gibellini Vanadium Project Nevada, USA NI 43-101 Technical
Report" with an effective date of November 10, 2017
(the "
Gibellini
Report
") prepared by
Wood The Gibellini Report
was filed with Canadian securities
regulatory authorities on SEDAR (available at
www.sedar.com
).
In
December 2017, we significantly expanded the land position at the
Gibellini Project by staking 198 new claims immediately adjacent to
the Gibellini Project covering 4091 acres that are sufficient to
enable future vanadium mining, processing and
extraction.
35
2018
On
February 15, 2018, the Company indirectly acquired an additional
105 unpatented lode mining claims located adjacent to its existing
Gibellini claims through the indirect acquisition of VC Exploration
(US) Inc.
by paying
a total of $335,661
in cash
and issuing the equivalent of 500,000 common share purchase
warrants to
arm's-length, private parties
.
On
April 19, 2018, the Gibellini MLA was amended to grant the Company
the option, at any time during the term of the agreement, to
require the Gibellini Lessor to transfer their title over all of
the leased mining claims (excluding four claims which will be
retained by the Gibellini Lessor and which contain minimal
resource) to the Company in exchange for USD$1,000,000, to be paid
as an advance royalty payment.
On
May 9, 2018, the Company submitted its
Management's POO to the BLM and the Reclamation Permit
Application to the BMRR.
On May 29, 2018, the Company received an independent technical
report providing an updated the resource on the Gibellini project.
The report is titled "Gibellini Vanadium Project Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment" (PEA) prepared by Mr. Kirk Hanson, P.E.,
Technical Director, Open Pit Mining; Mr. Edward J.C. Orbock III, RM
SME, Principal Geologist and US Manager of Consulting; Mr. Edwin
Peralta, P.E., Senior Mining Engineer; and Mr. Lynton Gormely,
P.Eng., Consultant Metallurgist of Wood. The report has an
effective date of May 29, 2018. The PEA replaces the technical
report entitled "Gibellini Vanadium Project, Nevada, USA, NI
43-101 Technical Report", effective November 10, 2017 and
filed November 20, 2017.
Highlights of the PEA (after tax)
All dollar values are expressed in US dollars unless otherwise
noted
Internal rate of
return
50.8%
Net
present value ("
NPV
")
$338.3
million at 7% discount rate
Payback
period
1.72
years
Average
annual production
9.65
million lbs V
2
O
5
Average
V
2
O
5
selling
price
$12.73
per lb
Operating cash
cost
$4.77
per lb V
2
O
5
All-in
sustaining costs
*
$6.28
per lb V
2
O
5
Breakeven
price
**
$7.76
per lb V
2
O
5
Initial
capital cost including 25% contingency
$116.76
million
Average
grade
0.26%
V
2
O
5
Strip
ratio
0.17
waste to leach material
Mining
operating rate
3.4
million tons (leach material and waste) per year
Average
V
2
O
5
recovery
through Direct Heap Leaching
62%
Life of
mine
13.5
years
*
includes
selling costs, royalties, operating cash cost, reclamation,
exploration and sustaining capital costs.
**
includes
selling costs, royalties, operating cash costs, taxes (local,
state, and federal), working capital, and sustaining and capital
costs.
The PEA
is preliminary in nature and includes inferred mineral resources
that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to
be categorized as mineral reserves, and there is no certainty that
the PEA will be realized. Mineral resources are not mineral
reserves and do not have demonstrated economic
viability.
The
tables below show the sensitivity analysis to the vanadium
pentoxide price, grade, and to the PEA capital cost and operating
costs. This sensitivity analysis indicates strong project economics
even in very challenging conditions, and that the project is well
positioned to benefit from the current rising vanadium price
environment. A 20% increase in the vanadium price relative to the
base case translates to a USD$491.3 million after-tax NPV at a 7%
discount rate.
36
V
2
O
5
price
USD$/lb
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
16.55
69%
568.0
996.0
15.28
63%
491.3
864.4
14.00
57%
415.2
733.2
12.73
51%
338.3
600.4
11.46
44%
261.0
467.2
10.18
36%
183.1
333.2
8.91
26%
103.9
196.9
V
2
O
5
grade
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
0.34
%
68
%
554.4
972.8
0.31
%
63
%
482.4
849.0
0.28
%
57
%
410.7
725.4
0.26
%
51
%
338.3
600.4
0.23
%
44
%
265.6
475.0
0.21
%
37
%
192.2
348.9
0.18
%
28
%
118.3
221.6
CapexUSD$M
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
151.8
40
%
307.2
564.3
140.1
43
%
317.6
576.3
128.4
47
%
328.0
588.4
116.8
51
%
338.3
600.4
105.1
55
%
348.6
612.5
93.4
61
%
358.9
624.6
81.7
67
%
369.3
636.8
OpexUSD$M
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcash
flowUSD$M
6.20
45
%
257.9
450.2
5.72
47
%
284.8
500.3
5.25
49
%
311.6
550.4
4.77
51
%
338.3
600.4
4.29
53
%
364.8
650.0
3.82
55
%
390.7
698.4
3.34
56
%
416.0
745.4
37
On June
19, 2019, the Company announced the appointment of a third party
NEPA contractor and SWCA Environmental Consultants to work under
the direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record.
On June
25, 2018, the Company released the Gibellini Vanadium Technical
Report on Preliminary Economic Assessment, with an effective date
of May 29, 2018 and signed June 25, 2018 authored by Independent
Qualified Persons Kirk Hanson, P.E.; Edward J.C. Orbock III, RM
SME; Edwin Peralta, P.E.; and Dr. Lynton Gormely, P. Eng. of Wood
and is in accordance with NI 43-101. The PEA was filed with
Canadian securities regulatory authorities on SEDAR (available at
www.sedar.com).
On
July 8, 2019, the Company announced it submitted an enhanced mining
POO that is designed to meet the needs set out by Secretarial Order
3355.
August
15, 2018, the Company engaged NewFields, an environmental,
engineering, and construction management consulting ﬁrm to
advance EIS preparation for the Gibellini Project. NewFields
completed the Gibellini heap leach pad and waste dump designs as
part of an overall basic engineering design lead by Scotia
International of Nevada, Inc. in 2014.
On
August 20, 2018, the Company
secured water supply for the
Gibellini Project construction and operation. The Company signed a
10-year Agreement with the owner of a private ranch, located
approximately 14.5 km from the Gibellini Project. The Agreement can
be extended for any number of additional 7-year terms, not to
exceed (with the primary term) a total of 99 years. Per the terms
of the Agreement, the lessor granted to the Company the rights to
805 acre-feet (approximately 262.4 million gallons) of water per
year for the Gibellini Project, at a minimum flow rate of 500
gallons per minute ("gpm") from its year-round springs
surface water stream. The water flow rate was measured at the ranch
springs in 1965, in 1981, from December 2011 to September 2013, and
most recently, in 2017. The water flow rate ranges from 1,000 to
3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the
project's maximum water operational requirement of 420 gpm
based on the process engineering design prepared by Scotia
International of Nevada, Inc. as a part of engineering,
procurement, construction and management work done in 2014. The
Gibellini Project completed water-related baseline studies
including the drilling of water-test wells, water source data
collection, characterization, flow rate testing and modeling. Due
to the fact that the Agreement provides a source of water from
surface springs located on a private ranch and baseline studies
related to it have been completed, the Company expects to
significantly expedite the permitting process by eliminating the
need to appropriate water rights from the Nevada Division of Water
Resources ("DWR").
On
October 22, 2018, the Company entered into a royalty agreement (the
"Royalty Agreement") with the Former Louie Hill Lessors
to replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company's subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year.
Upon
commencement of production, the Company will pay to the Former
Louie Hill Lessors, a 2.5% NSR of which, 1.5% of the NSR may be
purchased at any time by the Company for USD$1 million, leaving the
total NSR to be reduced to 1% over the remaining life of the mine
(and referred to thereafter, as "Production Royalty
Payments"). All advance royalty payments made, will be
deducted as credits against future Production Royalty Payments. The
Royalty Agreement shall be for an indefinite period and shall be
valid and in full force and effect for as long as the Company, its
subsidiaries, or any of their permitted successors or assigns holds
a valid and enforceable mining concession over the
area.
During
the year ended December 31, 2018, we incurred total costs of
$2,727,759 (2017 - $490,3556) for the Gibellini Project including
$425,605 (2017 - $58,790) for claims acquisition cost, $387,149
(2017 - $74,876) for claims registration, royalties, and annual
maintenance, $1,509,587 (2017 – 272,620) for geological
services, and $831,023 (2017 - $ 84,070) for general and
administrative expenses.
2019
On
March 26, 2019,
the
Company announced vanadium assay results from the Company's
Fall 2018 exploration reconnaissance program on the Gibellini
Project. The 155 assays were taken from three prospective
exploration areas all within 5km to existing Gibellini vanadium
NI43-101 compliant resource pit outline whereat 49.9 million lbs.
measured and 81.5 million lbs. indicated vanadium resource have
already been identified (see Company's news release dated May
29, , 2018). Surface grab samples assay as high as 2% vanadium
pentoxide (V2O5) and 75 samples (48% of total 155) have V2O5 grades
greater than the Gibellini deposit's cut-off grade of 0.101%
V2O5 at $12.5/lb. V2O5; V2O5 currently trades at approximately
$16/lb.
The
high vanadium assay results along the 5-kilometer
northeast-southwest trend which line-up the Northeast Prospect,
through Gibellini Hill, Louie Hill, Middle Earth Prospect, and Big
Sky Prospect providing an indication of potential and possibly
significant future expansion of vanadium mineralization along this
corridor.
Detailed maps are
available at
www.silverelef.com
.
38
Big Sky Prospect (300m by 50m)
The Big
Sky prospect occurs 3.1 km southwest of the Gibellini Hill measured
and indicated resource and 1.8 km southwest of Louie Hill inferred
resource. A total of 62 samples were taken, of which 40%
(
n
=25) returned assays
greater than Gibellini cut-off grade. Sixteen (16) samples returned
assays >0.200 V2O5. The distribution of samples occur along a
300 meter exposure of the Woodruff Formation. Assays showing
>0.200 V2O5 are shown in the table below.
V2O5%
grab sample assay results at Big Sky prospect for samples with
>0.200%
SAMPLE ID
Prospect
V2O5
%
301910
Big
Sky
0.261
301913
Big
Sky
0.223
301915
Big
Sky
0.346
301916
Big
Sky
0.400
301918
Big
Sky
0.712
301920
Big
Sky
0.264
301926
Big
Sky
0.580
301927
Big
Sky
2.008
301928
Big
Sky
0.848
301944
Big
Sky
0.264
301946
Big
Sky
0.280
301947
Big
Sky
0.218
301950
Big
Sky
0.261
302050
Big
Sky
0.214
302054
Big
Sky
0.787
302055
Big
Sky
1.982
Middle Earth Prospect (200m by 70m)
The
Middle Earth prospect occurs 1.7 km southeast of the Gibellini Hill
deposit and 300 meters south of the Louie Hill deposit. A total of
50 samples were collected of which 68% (
n
=34) returned assays >0.101% V2O5
or the Gibellini cut-off grade. Twenty-seven (27) samples returned
assays >0.200 V2O5. The samples are distributed over 3 road cuts
of exposed Woodruff Formation making up a 200 meter by 70-meter
areal footprint. Assays showing >0.200 V2O5 are shown in the
table below.
V2O5%
grab sample assay results at Middle Earth prospect for samples with
>0.200%
SAMPLE ID
Prospect
V2O5 %
301951
Middle
Earth
0.350
301952
Middle
Earth
0.482
301968
Middle
Earth
0.628
301969
Middle
Earth
0.605
301970
Middle
Earth
0.634
301972
Middle
Earth
0.252
301973
Middle
Earth
0.687
301974
Middle
Earth
0.470
301975
Middle
Earth
0.612
301976
Middle
Earth
0.637
301978
Middle
Earth
0.559
301979
Middle
Earth
0.557
301980
Middle
Earth
0.259
301981
Middle
Earth
0.405
39
SAMPLE ID
Prospect
V2O5 %
301983
Middle
Earth
0.255
301984
Middle
Earth
0.303
301985
Middle
Earth
0.434
301987
Middle
Earth
0.291
301988
Middle
Earth
1.294
301989
Middle
Earth
0.261
301991
Middle
Earth
0.314
301992
Middle
Earth
0.457
301993
Middle
Earth
0.380
301995
Middle
Earth
0.302
301998
Middle
Earth
0.539
301999
Middle
Earth
0.618
302000
Middle
Earth
0.532
Northeast Trench Prospect (500m by 300m)
The
Northeast Trench prospect occurs 1.2 km northeast of the Gibellini
Hill deposit and 2.5 km northeast of the Louie Hill deposit. A
total of 43 samples were collected of which 37% (
n
=16) returned assays >0.101% V2O5
or the Gibellini cut-off grade. Three (3) samples returned assays
>0.200 V2O5. The samples are distributed through road cuts
("trenches") and dry gulches of exposed Woodruff
Formation making up a 500 meter by 350-meter areal footprint. The
exposure at the Northeast Trench is greatly obscured by colluvium
material however the extent where it is exposed might indicate a
large volume of Woodruff Formation yet to be explored. Assays
showing >0.200 V2O5 are shown in the table below.
V2O5%
grab sample assay results at Northeast Trench prospect for samples
with >0.200%
SAMPLE ID
Prospect
V2O5
%
302004
NE
Trench
0.239
302005
NE
Trench
0.380
302016
NE
Trench
0.303
Water supply
On
August 20, 2018, the Company
secured water supply for the
Gibellini Project construction and operation. The Company signed a
10-year agreement with the owner of a private ranch, located
approximately 14.5 km from the Gibellini Project (the
"Agreement"). The Agreement can be extended for any
number of additional 7-year terms, not to exceed (with the primary
term) a total of 99 years.
Per the
terms of the Agreement, the lessor granted to the Company the
rights to 805 acre-feet (approximately 262.4 million gallons) of
water per year for the Gibellini Project, at a minimum flow rate of
500 gpm from its year-round springs surface water stream. The water
flow rate was measured at the ranch springs in 1965, in 1981, from
December 2011 to September 2013, and most recently, in 2017. The
water flow rate ranges from 1,000 to 3,900 gpm with an average flow
rate of 2,690 gpm, which exceeds the Gibellini Project's
maximum water operational requirement of 420 gpm based on the
process engineering design prepared by Scotia International of
Nevada, Inc. as a part of engineering, procurement, construction
and management work done in 2014.license. The Gibellini Project
completed water-related baseline studies including the drilling of
water-test wells, water source data collection, characterization,
flow rate testing and modeling. Due to the fact that the Agreement
provides a source of water from surface springs located on a
private ranch and baseline studies related to it have been
completed, the Company expects to significantly expedite the
permitting process by eliminating the need to appropriate water
rights from the DWR.
40
Offtake and project financing
The
Company has received unsolicited expressions of interest from
various potential investment sources and is currently engaged in
discussions with potential cornerstone investors, vanadium product
off-takers and banks on potential equity, debt and prepaid off-take
financing possibilities. The Company expects to report material
progress in due course.
On October 31, 2019,
the Company
submitted permit applications for the Water
Pollution Control Permit and the Class II Air Quality Permit. These
Nevada state permits have been developed to provide construction
level engineering that supports the mine plan previously submitted
to the BLM in the POO. Comments received from both the BLM and SWCA
Environmental Consultants were used as guidance in the engineering
design to ensure the State and Federal Permits are aligned and
reflect the most current guidance provided by both the NDEP and
BLM.
NDEP Water Pollution Control Permit
Mining
in Nevada is regulated under the authority of the Nevada Revised
Statutes ("NRS") 445A.300-NRS 445A.730 and the Nevada
Administrative Code ("NAC") 445A.350-NAC 445A.447.
Water Pollution Control Permits ("WPCP") are issued to
an operator prior to the construction of any mining, milling, or
other beneficiation process activity. Facilities utilizing
chemicals for processing ores are required to meet a zero-discharge
performance standard such that waters of the state will not be
degraded.
The
engineering design for heap leaching, the processing facility, and
the mine design (M3 Engineering and Newfields Companies, LLC) was
integrated into to the site Closure Plan that was also submitted as
part of the WPCP application. This design will facilitate
concurrent closure of the heap as each heap cell is finished
leaching. This will allow the Closure Plan to be initiated during
operations. At the end of active mining, the site can be closed at
minimal technical risk. This reduces the closure duration and
liability and the commensurate reclamation bond.
Air Quality Class II Permit
The
Nevada Bureau of Air Pollution Control issues air quality operating
permits to stationary and temporary mobile sources that emit
regulated pollutants to ensure that these emissions do not harm
public health or cause significant deterioration in areas that
presently have clean air. This is achieved by stipulating specific
permit conditions designed to limit the amount of pollutants that
sources may emit into the air as a regular part of their business
processes.
Any
process/activity that is an emission source requires an air quality
permit. Nevada Revised Statute (NRS) 445B.155 defines an emission
source as "any property, real or personal, which directly
emits or may emit any air contaminant."
The
Class II Permit for Gibellini is for facilities that emit less than
100 tons per year for any one regulated pollutant. Since the
vanadium processing will utilize a heap leach, the emissions will
be under the threshold for more complex air permits. The
engineering design incorporates stringent emission control
technology to minimize emissions. The modeled emissions from the
entire Gibellini Project are well below the National Ambient Air
Quality Standards.
The
Enhanced Baseline Reports (the "EBR's") were
extensively used in the Project engineering design to ensure that
potential environmental impacts identified in the EBR's would
be avoided or minimized by facility design. These engineering
controls help ensure that avoidance of potential environmental
impacts is "built into" the project from the start of
the design process. Doing so will allow Environmental Protection
Measures to be taken to minimize the risk of impacts that cannot be
completely avoided in the design and ensure up-front project
planning that is sensitive to all environmental
resources.
Integration with BLM 12-month 3355 EIS Process
The
Nevada state permit applications were brought forward in the
permitting process to identify any issues resulting from NDEP
review that could affect the project design in the POO early. By
resolving the State permitting issues prior to the start of the
EIS, it will help ensure that the 12-month schedule mandated by the
BLM Secretarial Order 3355 (S.O. 3355) can be met and interruptions
to the schedule can be avoided.
The Company continues with its
Engineering,
Procurement and Construction Management
(the "EPCM") work and expects Phase 1
of the EPCM, updating basic engineering design, to be completed by
2020; Phase 2, equipment procurement and detailed engineering
design, to be completed in 2021; Phase 3, facilities construction,
to start in 2021 and be completed in 2022 with the Gibellini
Project wet commissioning expected to be in
2022.
41
During
the year ended December 31, 2019, the Company incurred total costs
of $4,956,938 (2018 - $2,727,759) for the Gibellini Project
including for $3,200,773 (2018 - $1,509,587) for geological and
engineering services, $1,470,007 (2018 - $831,023) for personnel,
legal, general and administrative expenses and $286,158 (2018 -
$387,149) for royalties, fees and taxes.
Planning Activities
The
Company intends to spend the available funds as set forth above
based on annual budgets approved by the Board of Directors
consistent with established internal control guidelines, and
programs recommended in the Gibellini PEA. However, there may be
circumstances where, for sound business reasons, a reallocation of
the net proceeds may be necessary. The actual amount that the
Company spends in connection with each of the intended uses of
proceeds may vary significantly from the amounts specified above
and will depend on a number of factors, including those referred to
under "
Risk
Factors
".
The
Company's 2020 Gibellini objectives are:
●
Trigger EIS NOI by
end of Quarter 1, 2020
●
Comprehensive
review of NI43-101
●
Develop strategy
for integrating project construction with detailed engineering to
fast-track timeline to construction
●
Develop strategy
with State of Nevada to potentially fill US Critical Mineral
Inventory
●
Explore off-take
options for vanadium products
●
Complete following
Nevada State permits:
●
NDEP Water
Pollution Control Permit
●
NDEP Reclamation
Permit
●
NDEP Class II Air
Permit
●
NDEP Air Permit to
Construct
●
NDEP Potable Water
and Sanitary Sewer Permits
●
NDEP Dam Safety
Permit
●
NDWR Water
Appropriations Permit
●
NDWR Point of
Diversion of Water Rights
●
Nevada Dept. of
Health Radiation Safety Permit
●
Eureka County Road
Use and Maintenance Agreement
●
NDOW Industrial
Artificial Pond Permit
PULACAYO
PROJECT, BOLIVIA
The
scientific and technical information in this section of the
Registration Statement that specifically relates to the current
Pulacayo Project mineral resource estimates for the Pulacayo and
Paca deposits has been extracted or summarized from the technical
report titled "Updated Mineral Resource Estimate Technical
Report for the Pulacayo Project" dated November 14, 2017,
with an effective date of October 20, 2017 (the "Pulacayo
Report"). The Pulacayo Report was prepared by Peter Webster,
P.Geo and Michael Cullen, M.Sc., P. Geo of Mercator Geological
Services Limited. Additional information presented below that
pertains to the Pulacayo Project but does not specifically appear
in the Pulacayo Report has been provided by the Company. The
Pulacayo Report has been filed under the Company's SEDAR
profile at
www.SEDAR.com
.
The
Pulacayo Project discussion below includes the Pulacayo and Paca
silver-lead-zinc deposits and related concessions located in
Bolivia.
The
Pulacayo Project consists of many licenses within which are located
the Pulacayo and Paca mineral deposits, several areas of potential
mineralization, and historic tailings piles.
On
January 2, 2015, pursuant to the terms of the acquisition agreement
entered into between the Company and Apogee Silver Ltd. the Company
acquired the Pulacayo Project through the acquisition of the issued
and outstanding shares of ASC Holdings Limited and ASC Bolivia LDC,
which together, hold the issued and outstanding shares of ASC
Bolivia LDC Sucursal Bolivia. ASC Bolivia LDC Sucursal Bolivia
controls the mining rights to the concessions through a separate
joint venture agreement with the Pulacayo Ltda. Mining Cooperative
who hold the mining rights through a lease agreement with state
owned Mining Corporation of Bolivia, COMIBOL.
The
Pulacayo Project comprises seven concessions covering an area of
approximately 3,550 hectares of contiguous mining concessions
centered on the historical Pulacayo mine and town site. The
Pulacayo Project is located 18 km east of the town of Uyuni in the
Department of Potosi in southwestern Bolivia. It is located 460 km
south-southeast of the national capital of La Paz and 150 km
southwest of the city of Potosi, which is the administrative
capital of the department. The Pulacayo Project is fully permitted
with secured social licenses for mining.
42
Project
Location
The
Pulacayo Project is located 18 km northeast of the city of Uyuni
(Canton of Pulacayo, Quijarro Province) in the Department of
Potosí in south western Bolivia, 460 km south east of the
capital city, La Paz, and 130 km south west of Potosí, the
department capital. The approximate coordinates of the center of
the project are 740 000 m East and 7 746 000 m North UTM Zone 19
south projection WGS84 datum, and at an elevation of 4,305 m
ASL.
The
Pulacayo Project has a semi-arid climate with low annual rainfall
and a mean summer temperature of 12°C between October and
March. During winter, minimum temperatures reach the -20 to -25
ºC range and summer maximums in the 18 to 20°C range
occur between June and July. The yearly mean temperature is
5.5°C.
43
Accessibility,
Climate, Local Resources, Infrastructure and
Physiography
Project Access
Local
Bolivian airlines fly regular domestic flights between major cities
to Uyuni city. The principal highways are generally paved and heavy
trucks and buses dominate road traffic outside of the major cities.
For the most part, road freight service functions adequately even
to small remote villages. The Pulacayo Project is accessed from La
Paz by means of a paved road through Oruro. It can also be accessed
by the gravel road between Oruro and Potosí and from
Potosí to Uyuni by a good quality gravel road. The road from
Potosí to Uyuni is paved. There is also a reasonably
well-developed rail system with connections south to Argentina,
east to Brazil and west to Chile and the port of Antofagasta. Rail
service from Uyuni connects with Oruro, Atocha, Tupiza, and
Villazon (on the border with Argentina). Uyuni is also connected by
railway to Chile through Estación Abaroa.
Climate
Pulacayo
has a semi-arid climate, with annual rainfall of approximately 100
mm. During winter, minimum temperatures reach the -20º to
-25º C range and summer maximums in the 18 to 20°C range.
The rainy period lasts from November to March corresponding with
the southern hemisphere's summer season. Potosí receives
regular snowfalls, typically between February and April at the end
of the rainy season. On the Altiplano and in higher altitude areas,
sub-zero temperatures are frequent at night throughout the
year.
Infrastructure and Local Resources
The
cemetery substation currently used for Pulacayo town and located at
the mine, will be enlarged and upgraded to include the equipment
for the complex and satisfy current government requirements.
Included in the substation will be a transformer, breakers,
switches, lightening protection and grounding. The transformer will
step down the 44 kV current from the grid to 380 V to be used by
the complex. Breakers will protect the transformer from incoming
line overloads. The switches will isolate the substation for
repairs and maintenance. Grounding will be provided for the
substation and lightning rods with proper grounding will protect
the substation from lightning strikes.
The generator will provide back-up (reserve) power
should the incoming power quality or amount become unreliable or
power be lost
. Potable water is supplied for the Pulacayo
Mining Cooperative, the Pulacayo population, and the town of Uyuni
by pipeline from the Yanapollera dam and reservoir facility located
28 km from Pulacayo. To ensure an adequate consistent supply of
water for the mine and concentrator a water storage reservoir
possibly supplemented by groundwater sources is being considered.
Telephone services include an ENTEL-based long distance service and
a GSM signal cellular telephone service. Internet access is
available in most areas. Two antennae provide reception and
transmission of signals from national television stations. Apogee
Silver Ltd ("Apogee") installed a satellite receiver to
provide internet access for its operation, which is shared with the
Cooperative Social del Riesgo Compartido (Shared Risk
Cooperative).
Approximately
600 people currently live in Pulacayo on a permanent basis. The
village has a state-operated school and medical services. A
hospital and clinic function independently. Numerous dwellings and
mining related buildings in Pulacayo are owned by COMIBOL, some of
which have been donated to the Pulacayo Mining Cooperative. Under
the Shared Risk Contract, COMIBOL makes some mining infrastructure
available for use by Apogee. Many of the residents have mining
experience through working for the Pulacayo Mining
Cooperative.
Basic
exploration services are available in Bolivia and include several
small diamond core drilling contractors, sample preparation (ALS
Group, located in Oruro), and assay laboratories (SGS Group located
in La Paz, and several locally owned assay facilities). The
Bolivian National School of Engineering operates a technical
college in Oruro (Universidad Técnica de Oruro) that includes
a mineral processing department and laboratory facilities that
provide commercial services to the mining industry. In general, an
adequate supply of junior to intermediate level geologists,
metallurgists, mining engineers and chemists is currently
considered to be present in Bolivia.
Physiography
The
Pulacayo Project area is located in the Altiplano region, a high
altitude plain broken by small mountains and hilly areas. It is
immediately south west of the Cosuño Caldera where local
topographic relief is gentle to moderate, with elevations ranging
between 4,000 m and 4,500 m above sea level.
The
Paca and Pulacayo domes are volcanic structures that exist as
prominent topographic highs in this area.
44
Property
Ownership of the
Pulacayo Project properties is through joint venture agreements.
Apogee Minerals Ltd. (renamed "Apogee Silver Ltd." in
March 2011) controlled 100% of the Pulacayo Project through an
agreement with Golden Minerals Company ("GMC"), the
successor of Apex Silver Company before its acquisition by us.
GMC's former Bolivian subsidiary, ASC Bolivia LDC Sucursal
Bolivia ("ASC"), holds the mining rights to the
concessions through a joint venture with the Pulacayo Mining
Cooperative, which in turn has a lease agreement with COMIBOL, the
state mining corporation of Bolivia. On January 21, 2011, Apogee
entered into a definitive agreement with GMC to acquire all of the
issued share capital of ASC, which holds a 100% interest in the
Pulacayo Project. Pursuant to the applicable agreement, Apogee
acquired all of the issued and outstanding shares of the subsidiary
from GMC in consideration for common shares of Apogee upon closing
of the transaction, and an additional block of common shares and a
cash fee eighteen (18) months following closing of the transaction.
In January 2015, Prophecy Coal Corp. (predecessor to the Company)
completed purchase of Apogee Minerals Bolivia S.A., ASC Holdings
Limited and ASC Bolivia LDC (which hold ASC, the holder of
Apogee's mining joint venture interest in the Pulacayo
Project) (collectively, the "Apogee Subsidiaries") and
thus Apogee's interest in the mining joint venture.
Th
e
term of the joint venture agreement is 23 years
starting July 30th, 2002. ASC Bolivia LDC is committed to pay to
COMIBOL USD$1,000 during the exploration period. During the mining
period ASC Bolivia LDC will pay to COMIBOL the equivalent of 2.5%
of the Net Smelter Return (NSR) and 1.5% of the NSR to the Pulacayo
Cooperative.
On September 1, 2016 the Bolivian government
issued Supreme Decree N° 2891 which was confirmed by Law
N° 845 dated October 24, 2016. Both regulations revert to the
domain of the State, areas over which joint venture agreements,
lease or sub-lease agreements have been executed between mining
cooperatives and private local or foreign companies, in order to
convert such agreements into mining production contracts between
the private parties party to such agreements and the government.
This affects our Pulacayo Joint Venture Agreement. We submitted the
required application on December 22, 2016. In October 2
nd
2019 a new Mining
Production Contract (replacing the Joint Venture Agreement) was
executed between Apogee Minerals Bolivia S.A. (a Silver Elephant
Mining Corp. subsidiary) and the state owned Bolivian Mining
Corporation (COMIBOL). The term is 15 years and subject to renewal
for another 15 years (total 30 years). COMIBOL is entitled to
receive 7% of the Gross Sales Value. No monthly fee payable to
COMIBOL has been agreed.
History of Production
Mining
of silver deposits at Pulacayo began in the Spanish Colonial Period
(c. 1545) but production details do not exist. The first recorded
work was carried out in 1833 when Mariano Ramírez rediscovered
the Pulacayo deposit. In 1857 Aniceto Arce founded the Huanchaca
Mining Company of Bolivia and began development and production.
Revenue from the mine funded the first railway line in Bolivia
which in 1888 connected Pulacayo to the port of Antofagasta, Chile.
Annual silver production reached 5.7 million ounces in 1891 with
production predominantly from the rich Veta Tajo (Tajo vein
system). In 1923, mining operations ceased due to flooding of the
main working levels.
In
1927, Mauricio Hochschild bought the property and re-started mine
development with focus on the Veta Cuatro vein. During this time,
the 2.8 km long San Leon access tunnel was developed to facilitate
ore haulage and the first recorded exploration work in the area was
undertaken. Work continued through the intervening years, and in
1952, the Bolivian government nationalized the mines and
administration of the Pulacayo deposit and management was assumed
by the state mining enterprise COMIBOL. COMIBOL continued
operations producing 678 million ounces of silver, 200,000 tons of
zinc and 200 000 tons of lead until closure in 1959 due to
exhaustion of reserves and rising costs. COMIBOL also imposed
cutbacks on exploration at this time. In 1962, a local cooperative
group named Cooperativa Minera Pulacayo (the "Pulacayo Mining
Cooperative") was founded and this group leased the Pulacayo
mine from COMIBOL. The Pulacayo Mining Cooperative has operated
small-scale mining in the district since that time and continues to
do so. During the period from November 2011 to May 2013 Apogee
performed trial mining, which is described in the
"Mining" section below.
There
is limited mining at the Paca deposit. But the dates of mining,
production, and grade are not known.
45
Geology
General
In
south western Bolivia, the Andes Mountains consist of three
contiguous provinces, which are, from west to east, the Cordillera
Occidental, the Altiplano, and the Cordillera Oriental. The
basement beneath the area, which is as thick as 70 km, is believed
to be similar to the rocks exposed immediately to the east, in the
Cordillera Oriental, where a Phanerozoic-age fold and thrust belt
consists largely of Paleozoic and Mesozoic-age marine shales and
sandstones. Deposited mostly on Precambrian basement, the rocks of
the Cordillera Oriental were deformed during at least three
mountain-building cycles. The Altiplano is a series of high basins
located between mountain ranges that formed apparently in response
to folding and thrusting. Its formation involved the eastward
underthrusting of the basement rocks of the Cordillera Occidental,
concurrent with the westward overthrusting of the sedimentary rocks
of the Cordillera Oriental. These thrusts resulted in continental
foreland basins that received as much as 15,000 m of sediment and
interlayered volcanic rocks during the Cenozoic. Igneous activity
accompanying early Andean deformation was primarily focused further
west, in Chile. During the main pulse of Andean deformation, a
number of volcano-plutonic complexes were emplaced at several
localities on the Altiplano, particularly along its eastern margin
with the Cordillera Oriental and to the south. During glacial time,
most of the Altiplano was covered by large glacial lakes of which
the great salars of Uyuni and Coipasa are remnants. The Cordillera
Occidental consists of late Miocene to Recent volcanic rocks, both
lava flows and ash flow tuffs that have erupted in response to the
subduction of the Nazca plate beneath the continent of South
America. This underthrusting continues, and many of the volcanoes
that form the crest of the Andes and mark the international border
with Chile are presently active.
Exploration
Modern
era exploration in the project area included surface and
underground mapping, drilling and sampling by ASC and topographic
mapping, surface mapping, geophysical surveying and drilling by
Apogee.
ASC performed preliminary
geologic mapping during 2003. They completed exploration drilling
using diamond coring method between July 2002 and November 2002,
February 2003, and September 2003. The drilling information is
summarized the table below
. These
drilling programs outlined disseminated, veinlet
and stock work style mineralization occurring between previously
mined high-grade veins.
Summary of Modern Era Drilling
Party
Deposit
Period
Number of Drill Holes
Meters of Drilling
Drill Holes By Spud Location
ASC
Pulacayo
Jul–Nov 2002
14
3,905
11 surface
3 underground
Pulacayo
Feb 2003
2
554
0 surface
2 underground
Pulacayo
Sep–Oct 2003
8
1,302
6 surface
2 underground
Paca
2002—2005
36
4,344
36 surface
0 underground
Total
61
10,105
54 surface
7 underground
Apogee
Paca
Feb–Apr 2006
23
2,302
23 surface
0 underground
Pulacayo
Feb–Jun 2006
19
4,418
15 surface
4 underground
Paca
Jun–Nov 2006
46
10,444
46 surface
0 underground
Paca
Nov–Dec 2006
7
886
7 surface
0 underground
Paca
Nov 2007
14
3,745
14 surface
0 underground
Paca
Jan–May 2008
54
14,096
46 surface
8 underground
Pulacayo
Jun 2009
49
12,756
26 surface
23 underground
Pulacayo
Nov 2010–Dec 2011
45
29,936
45 surface
0 underground
Pulacayo
Aug 2011–Jun 2012
34
3,166
0 surface
34 underground
Total
291
81,749
222 surface
69 underground
Grand Total
352
91,854
276 surface
76 underground
47
Apogee commissioned a topographic survey of the
Pulacayo and Paca areas in 2006 to provide a topographic base map
for use in establishing road access, geological mapping and surface
sampling, and locating drill collars and geophysical lines. A
surface mapping and sampling program was done during 2005 and
initially utilized the ASC preliminary geological maps. The company
completed detailed surface mapping that covered all the exploration
licenses. The sampling consisted mostly of rock chip samples taken
from outcrops and accessible underground mine workings for a total
of 549 samples. During 2006 Apogee also commissioned a detailed,
three-dimensional digital model of the historic underground mine
workings. The model was subsequently modified by Apogee to conform
to the current datum and adjusted to align with the +1% incline
grade of the San Leon tunnel. An induced polarization (IP)
geophysical survey was carried out by Apogee between November and
December 2007.
A total of 29 line km of IP surveying was
completed on the Pulacayo Project including seven lines at Pulacayo
oriented north-south perpendicular to the east-west strike of the
TVS and five similarly oriented survey lines at Paca.
Following the acquisition of the Pulacayo Project,
Apogee initiated a diamond core exploration drill program that
consisted of 19 holes. During 2007-2008 Apogee focused on the Paca
deposit and completed 68 drill holes in two programs with 14
completed during
November 2007 and 54 holes completed during
2008. Subsequent drilling occurred during June 2009, between
November 2010 and December 2011, and between August 2011 and June
2012.
The drilling information is
summarized in
the table above. Overall core recovery
reported by Apogee exceeds 90% in most cases though proximity to
old mine workings reduces the recovery potential due to associated
bedrock instability. Particular attention was paid to the planning
and documentation of drill holes. Planning is based on the logging
and interpretation of geological cross sections generated by Apogee
staff geologists. Drill hole coordinates are established from
digital maps and surface drill hole collars are located on the
ground by field geologists using a hand-held GPS receiver. The
completed drill hole is later surveyed by company surveyors. Drill
hole azimuth and inclination are established using a compass and
clinometer. Collar coordinates for underground drilling are
established by company surveyors and hole azimuth and inclination
are set by transit. Downhole deviation is determined for both
surface and underground holes at approximately 50 m intervals using
down hole survey tools.
Work
during 2015 included mapping, sampling, assays and metallurgical
tests under Phase 2 of the exploration plan, planning for Phase 2
(geophysics, drilling and assays), and preparation and submittal of
the permit application for Phase 2. The exploration centered on
assessing the historical tailings piles and potential mineralized
areas suggested by historical exploration. On February 2, 2015, the
Company announced the assay results received January 22, 2015 from
ALS Minerals Ltda., for samples obtained during the reconnaissance
sampling program of tailings piles materials. The tailings piles
are the remaining materials from processing ore, extracted from the
Pulacayo mining district between approximately 1850 and 1950. The
ore was processed by a mill on site which has since been
dismantled.
A total
of 12 tailings piles were identified at the start of the mapping
and sampling program and a total of 299 samples from the 12
tailings piles were obtained. Samples were obtained at random
locations on the top surface of those piles from small holes
excavated with an excavator and systematically at 2 meter spacings
in the walls (slopes) of the piles from hand dug or excavated
trenches, all at depths of 1.2 to 1.5 meters. The samples were then
preserved, stored, secured, and transported following industry
standard methods. The assay program was performed by ALS Minerals
Ltda. of Lima, Perú and included standard Quality Assurance
and Quality Control (QA/QC) samples to enforce the validity of the
results. The results indicate silver grades up to 1200 g/t, gold
grades up to 7 g/t and indium grades up to 154.5 g/t. On September
10, 2015, the Company reported results from preliminary
metallurgical test work conducted on samples collected from various
tailing piles at the Pulacayo Project showing up to 64.39% silver
recovery.
Surface
mapping and sampling was completed during June to August 2015 on
four potential mineralized areas (El Abra, Pero, Paca, and
Pacamayo). The sampling included close spaced grab and chip samples
obtained systematically where the trend of the mineralization is
apparent or in historic mine adits and random spot sampling where
the trend is not apparent. The samples were obtained through the
aid of trenching to allow sampling of fresher material, where
possible. The samples were then preserved, stored, secured, and
transported following industry standard methods. The assay program
was performed by ALS Minerals Ltda. and included standard QA/QC
samples to enforce the validity of the results. On August 27, 2015
and September 9, 2015, the Company announced assay results of the
first and second group of samples from the potential mineralized
areas at the district exploration program. On September 18, 2015,
the Company announced the assay results of the three Pacamayo
samples where the silver grade was reported as more than 1,500 g/t.
These samples have undergone reanalysis using the fire assay and
gravimetric finish method which has a greater upper detection
limit.
An
exploration permit application was submitted during early 2015. The
exploration permit would allow geophysical work to complete Phase 1
then after review of the Phase 1 information and previous
exploration information and planning, completion of Phase
2.
Planning and
budgeting for exploration to prove the planned stopes in the
internally-developed mining plans was completed. This exploration
plan included in-mine drilling and mining new drivages to explore
new areas, mapping of existing exposures and new drivages, sampling
of existing exposures, new drivages, and drill core for laboratory
analysis and metallurgical testing.
Mineralization
Pulacayo is a low sulphidation epithermal
polymetallic deposit hosted by sedimentary and igneous rocks of
Silurian and Neocene age (Pressacco et al., 2010). The Silurian
sediments underlie the volcanic rocks and include diamictites,
sandstones and shales. The Neocene rocks are predominantly
volcano-sedimentary in origin and include
conglomerates,
sandstones, rhyolitic tuffs, dacitic-rhyolitic domes, andesitic
porphyries and andesitic flows. The Pulacayo Project is located on
the western flank of a regional anticline that affects sedimentary
and igneous rocks of Silurian, Tertiary and Quaternary ages on the
western flank of the Cordillera Oriental, near the
Cordillera-Altiplano boundary. The major geologic features of the
area are faults and an anticline that are considered to be
important with respect to the location of
mineralization.
48
The
Uyuni-Khenayani Fault is a reverse fault located about 4 km west of
Pulacayo, which is believed to have controlled localization of
volcanic center complexes in the area and related mineralized areas
including at Pulacayo. The Pulacayo, Paca Mayo and Paca volcanic
dome complexes occur along a north-south corridor defined by two
parallel, north-south trending regional faults that are
approximately 2.7 km apart. The domes occur over a distance
measuring approximately 10 km in length. Polymetallic vein and wall
rock mineralization at Pulacayo is controlled by east-west trending
secondary faults that cut the Tertiary age sedimentary and volcanic
rocks of the Pulacayo dome. The stock work vein system was emplaced
on the southern side of the Pulacayo dome complex and is best
exemplified by the TVS which holds the largest metal resource. The
TVS bifurcates in andesitic rocks to form separate veins that
collectively form a dense network or stock work of veinlets along
strike. The bifurcating, polymetallic veins are commonly separated
by altered andesitic composition rock that contains disseminated
sulphide mineralization. The mineralized zones at Pulacayo, Paca
Mayu and Paca all occur on the west flank of a north-south striking
anticline primarily comprised of folded sedimentary rocks. Local
topographic highs define domes and stocks composed of Lower Miocene
age dacitic-andesitic composition igneous rocks that intrude the
folded sedimentary rocks. A younger phase of volcanic activity is
also superimposed on the anticline and is marked by volcanic rocks
of andesitic and rhyolitic composition. Volcanic ash deposits
associated with the Cosuño Caldera are the youngest volcanic
deposits in the area.
Hydrothermal
wallrock alteration is spatially associated with the main vein
system trends and includes propylitic, sericitic, moderate-advanced
argillic, and siliceous assemblages. Host rock composition exerts a
strong local influence on both the nature of alteration assemblages
present and their relative intensity of development. On this basis,
spatial distribution of hydrothermal alteration assemblages is a
useful indicator of proximity to mineralized structures. Moderate
argillic alteration is observed throughout the area and transitions
to intense argillic alteration in close proximity to veins and
disseminated-stock work zones. Haloes of silicification up to
several centimeters in width are developed around vein contacts in
some cases. Silicification grades into advanced argillic alteration
as distance into the wall rock increases and this gradually grades
to argillic and propylitic zones with greater
distance.
The
Pulacayo deposit is considered an example of a sub-volcanic
epithermal mineralization system showing well developed vertical
metal zonation. The TVS is the main mineralized vein and stock work
system at the Pulacayo Project. The east-west striking faults are
interpreted to have acted as a conduit system for mineralizing
fluids, with sulphide precipitation in open spaces to form veins
and along fractures or by replacement to form zones of disseminated
mineralization. Changes in temperature, pressure and the chemical
state between the wall rock and fluid are thought to have
influenced the style and intensity of mineralization. The high
grade parts of the TVS were historically mined as single 1 m to 3 m
wide veins but it transitions into zones of complex quartz-sulphide
or sulphide vein arrays that occur over widths ranging from less
than a meter up to 120 m. Mineralization of economic interest at
Pulacayo is predominantly comprised of sphalerite, galena and
tetrahedrite in sulphide-rich veins that are accompanied by locally
abundant quartz, barite and pyrite with disseminated sphalerite,
galena and tetrahedrite in the wallrock between the veins. To date,
the TVS system has been continuously proven by mining and/or
surface exposure along a strike length of 2,700 m and to a vertical
depth of 1,000 m below surface, is open in both strike and dip
components, and locally reaches approximately 120 m of mineralized
width.
As
to the Paca deposit, faulting is also considered to have provided
conduits for mineralizing fluids. The faulting includes north-south
trending reverse faults and east-west trending extensional faults
that are located concentrically around Paca dome. The assemblage of
propylitic, sericitic, moderate to advanced argillic, and siliceous
wall rock alteration spatially associated with silver-zinc-lead
mineralization as at the Pulacayo deposit is also found at the Paca
deposit. But at Paca disseminated (mantos) style and breccia hosted
styles of mineralization are most common though a locally
mineralized conglomerate is also found. Generally, discrete veins
of mineralization having significant width and length are not
common. The sulphide mineral phases commonly associated with
economic grades recognized at Paca include sphalerite, galena,
silver sulphosalts, tennantite, smithsonite, barite, manganese
oxide, gypsum, jarosite, specularite, cerussite, dolomite,
aragonite and calcite. Information regarding sampling is contained
in the 2017 Pulacayo Technical Report.
Sampling
The
core is initially examined by core technicians and all measurements
are confirmed. Core is aligned and repositioned in the core box
where possible and individual depth marks are recorded at 1 m
intervals on the core box walls. Core technicians photograph all
core, measure core recovery between core depth blocks, complete
magnetic susceptibility readings and specific gravity measurements,
and record the information on hard copy data record sheets. This
information is initially entered into Excel digital spreadsheets
and then incorporated into the project digital database. Drill site
geologists then complete a written quick log of rock types along
with a graphical strip log that illustrates the rock types. They
subsequently complete a detailed written description of rock types,
alteration styles and intensities, structural features, and
mineralization features. The drill hole logs are drawn on paper
cross sections when logging is completed and lithologies are
graphically correlated from drill hole to drill hole. Mineralized
intervals are marked for sampling by the logging geologist using
colored grease pencils and the depths of the intervals and
associated sample numbers are recorded on a hardcopy sample record
sheet. All paper copy information for each hole, including quick
logs, detailed logs, graphical logs, sample record sheets and assay
certificates are secured together in a drill hole file folder to
provide a complete archival record for each drill hole. Subsequent
to logging and processing, down hole litho-coded intervals, sample
intervals and drill hole collar and survey information are entered
into digital spreadsheets and then incorporated into the project
digital database. The sample intervals marked by the logging
geologist are cut in half by the core technicians using a diamond
saw. Friable core is cut in half with a knife. Each half core
sample is assigned a unique sample tag and number and placed in a
correspondingly numbered 6 mil plastic sample bag. A duplicate tag
showing the same number is secured to the core box at the indicated
sample interval. All sample intervals and corresponding numbers are
recorded on a hardcopy sample data sheet and are subsequently
entered into a digital spreadsheet for later incorporation in the
project database. The secured 6 mil plastic sample bags are grouped
in batches of 6 to 10 samples and secured in a larger plastic mesh
bag in preparation for shipment to the laboratory.
49
Drill
site procedures pertinent to the ASC drilling were confirmed by
Apogee staff familiar with the ASC program to be generally similar
to those employed by Apogee with respect to core logging and
sampling. All ASC drill core samples were processed at the Oruro,
Bolivia laboratory of ALS Chemex (formerly Bondar-Clegg), with
those from the first phase of drilling being analyzed at ALS Chemex
facilities in Vancouver, BC, Canada. In both instances, standard
core preparation methods were used prior to elemental
analysis.
50
Security of Samples
Apogee
staff was responsible for transport of core boxes by pick-up truck
from drill sites to the company's locked and secure core
storage and logging facility located in the town of Pulacayo. The
secured 6 mil plastic sample bags are grouped in batches of 6 to 10
samples and secured in a larger plastic mesh bag in preparation for
shipment to the ALS Chemex preparation laboratory located in Oruro,
Bolivia. All bagged samples remained in a locked storage facility
until shipment to the laboratory. Samples are transported from the
core storage area to the ALS Chemex facility by either Apogee
personnel or a reputable commercial carrier. Sample shipment forms
are used to list all samples in each shipment and laboratory
personnel crosscheck samples received against this list and report
any irregularities by fax or email to Apogee. Apogee has not
encountered any substantial issues with respect to sample
processing, delivery or security for the Pulacayo drilling
programs. The transport and security of samples pertinent to the
ASC drilling were confirmed by Apogee staff familiar with the ASC
program to be generally similar to those employed by Apogee. The
security of Paca exploration samples followed the same
procedures.
51
Sample Preparation, Analysis and Quality Assurance/Quality
Control
All
drill core samples from the ASC 2002 and 2003 drilling programs
were processed at the Oruro, Bolivia laboratory of ALS Chemex, with
those from the first phase of drilling being analyzed at ALS Chemex
facilities in Vancouver, BC, Canada. In both instances, standard
core preparation methods were used prior to elemental analysis.
During the 2006 to 2012 Apogee drilling programs Apogee staff
carried out immersion method specific gravity determinations but
did not carry out any form of direct sample preparation or
analytical work on project samples. Analytical work was completed
by ALS Minerals Ltda. at its analytical facility in Lima, Peru
after completion of sample preparation procedures at the ALS
facility located in Oruro, Bolivia. ALS was at the time and remains
an internationally accredited laboratory with National Association
of Testing Authorities certification and also complies with
standards of International Organization for Standardization (ISO)
9001:2000 and ISO 17025:1999. The laboratory utilizes industry
standard analytical methodology and utilizes rigorous internal
QA/QC procedures for self-testing. Samples from the ASC drilling
programs carried out in 2002 and 2003 were also prepared and
analyzed by ALS. However, after preparation at the facility in
Oruro, Bolivia under the same protocols as for Apogee, analytical
work was carried out at the company's laboratory in
Vancouver, BC, Canada. This facility was fully accredited at the
time and analytical protocols were the same as those described
above for Apogee.
Apogee
developed an internal QA/QC program that includes blind insertion
of reference standards, blanks and duplicates in each analytical
shipment that was used for the 2006 to 2012 drilling programs. A
blank is inserted at the beginning of each sample batch, standards
are inserted at random intervals throughout each batch of 50
samples and duplicates are analyzed at the end of each batch. All
data gathered for QA/QC purposes is captured, sorted and retained
in the QA/QC database. The QA/QC samples include commercial
reference standards, an in-house standard, and commercial prepared
blank materials. Coarse field blanks were also prepared by Apogee.
Analysis of duplicate samples of quarter core is accommodated
through their blind inclusion in the sample stream and analysis of
duplicate prepared pulp splits are also requested for each batch.
Apogee's protocol also includes a check sampling program
based on analysis of sample splits at a second accredited
laboratory. Bulk density measurements (specific gravity) were
systematically collected by Apogee staff using standard water
immersion methods and unsealed core samples. Characteristics of
lithology and alteration were also recorded as part of the density
program and all information was assembled in digital
spreadsheets.
QA/QC
procedures pertinent to the ASC 2002-2003 drilling programs were
not documented. However, the first drilling program carried out by
Apogee in 2006 was intended to confirm earlier ASC analytical data.
Full QA/QC protocols instituted by Apogee were applied to this
program and results of the Apogee re-drill program correlate well
with those of ASC suggesting that acceptable standards were being
met by ASC. Though preparation, analysis, and QA/QC procedures were
not documented for the early ASC drilling on Paca, the results of
the 2006 re-drill program and check sampling by Mercator during
2015 were comparable and suggests acceptable procedures were
followed for the Paca deposit samples. Sampling from later drilling
at Paca followed Apogee's QA/QC procedures described above.
Bulk density measurements were also obtained.
Data Verification
Core
sample records, lithologic logs, laboratory reports and associated
drill hole information for all drill programs completed by Apogee
and ASC were digitally compiled by Apogee staff. Information
pertaining to the exploration history in the property area was also
compiled by Apogee and was reviewed to assess consistency and
validity of Apogee results. The digital drill hole records compiled
by Apogee were checked in detail against the parameters (collar
data, down hole survey values, hole depths, lithocodes) of the
original hard copy source documents to assess consistency and
accuracy. This was followed by review and validation of
approximately 10% of the compiled core sample dataset against
original source documents. Review of logging and sample records
showed consistently good agreement between original records and
digital database values. The drilling and sampling database records
were further assessed through digital error identification methods
available through the Gemcom-Surpac Version 6.2.1(R) software for
such errors as sample record duplications, end of hole errors,
survey and collar file inconsistencies and some potential lithocode
file errors. The digital review and import of the manually checked
datasets through Surpac provided a validated Microsoft Access(R)
database that is considered to be acceptable for resource
estimation.
Apogee
hosted two site visits by experts for review of procedures and
verification of conditions and work programs. The first during
August 2011 included review of drilling program components, core
check sampling, verification of drill hole locations, and
discussion with Apogee staff and consultants. The experts
determined that, to the extent reviewed during the visit, evidence
of work programs carried out to date on the property is consistent
with descriptions reported by the company and that procedures
employed by Apogee staff are consistent with current industry
standards and of good quality. The second site visit occurred
during April 2012 and included additional review of on-going
drilling and resource estimation program work pertaining to oxide
zone mineralization. The experts determined their drill hole
coordinates compared well with Apogee's coordinates and
reasonable correlation exists between the original sample analyses
and the check sample analyses.
The
data verification performed for the Paca deposit was similar to
that for the Pulacayo deposit described previously. Micon
International Limited of Toronto, Canada, considered the field
standard used by Apogee in its QA/QC program to be unacceptable and
suggested use of a commercial standard or an in-house standard
supported by industry best practices.
Mineral Processing and Metallurgical Testing
To
date, four metallurgical test programs were completed by outside
experts. These programs include: Resource Development Inc., Denver,
USA in 2003, UTO (Universidad Técnica de Oruro), Oruro, La
Paz, Bolivia in 2009, ED&ED Ingeniería y Servicios S.A.C.
(which we refer to as "ED&ED"), Lima, Peru in 2011,
and UTO and Maelgwyn Mineral Services Laboratory in South Africa
during 2012. A fifth program was managed by Apogee where bulk
samples from trial mining were sent to local
concentrators.
52
During
2003, Resource Development Inc. tested 120 kg of core sample from
two drill holes. Preliminary metallurgical test work was performed
to evaluate the silver and sulfide base metals recovery potential
including in-place densities, feed characterization, mineralogy,
leaching, gravity concentration, and bench-scale open circuit and
locked cycle tests (LCT's). Silver minerals were found not to
be amenable to leaching by NaCN or gravity concentration. Grinding
test data determined the time required to achieve a P80 of 150 #
(104 lm) was 20 minutes. Bench scale open circuit flotation tests
(OCT's) were performed using the flotation reagent suite
developed for the San Cristobal Project. The overall silver
recovery in the lead rougher concentrates was 97.1%. The lead
cleaner concentrate recovered 2.8% of the weight, 84.6% of lead,
3.1% of zinc and 46.9% of silver. The lead concentrate assayed
60.8% Pb, 4.22% Zn and 8,440 g/t Ag. The zinc cleaner concentrate
recovered 7.8% of weight, 1.3% of lead, 84.7% of zinc and 38.8% Ag.
The concentrate assayed 0.324% Pb, 41.2% Zn and 2,463 g/t Ag. Large
scale two cycle locked cycle flotation tests were performed using
the process flowsheet similar to that developed for San Cristobal
deposit. The lead concentrate assaying 62.2% Pb, 4.46% Zn and
10,891 g/t Ag, recovered 3.1% weight, 88.8% of lead, 3.9% of zinc
and 63.4% of silver. The zinc concentrate assayed 61.5% Zn, 0.9% Pb
and 3,303 g/t Ag, recovered 5% weight, 87.6% of zinc, 2.1% of lead
and 31.3% of silver. The tailings were very difficult to settle due
to high proportions of clay in the ore, which will impact the
process flow sheet and overall plant design. The lead and zinc
third cleaner concentrates were analyzed for impurities and found
that penalties may be incurred on the concentrates for several
impurities.
UTO
conducted a metallurgical test program during 2009 on three samples
comprising comminution (only Bond Ball Work Index), OCT's,
LCT's, OCT tailings (non-float) size by size analyses, and
OCT tailings (non-float) sedimentation tests. Clay mineralogy
studies were not carried out to determine the presence of clays
that may produce very fine slimes though during the test work,
slimes were produced affecting the flotation performance, settling
of tailings, and flotation pulp rheology. The samples were drill
cores composited to represent a higher grade, a medium grade, and a
lower grade. Comminution was evaluated using the Bond Ball Mill
Work Index test and categorized the samples as medium to hard.
Abrasion index, crushing work index, and rod work index tests were
not performed. Specific gravity tests were performed. Flotation
test work focused on lead and silver recovery using both batch open
circuit and closed circuit flotation tests. Locked cycle tests of
the high-grade sample indicated that conventional selective
lead-silver and zinc-silver flotation techniques recovered 56% of
the silver in the lead concentrate and 27% of the silver in the
zinc concentrate with lead recovery of 79% and zinc recovery of
81%. Silver grades were 6,620 g/t in the lead concentrate and 2,010
g/t in the zinc concentrate. LCT test results of the medium grade
sample indicated that it is possible to recover almost 34% of the
silver in the lead concentrate and 50% of the silver in the zinc
concentrate, with lead and zinc grades at 51% and 58%, lead and
zinc recoveries at 74% and 83%, and silver grades at 6,220 g/t and
2,990 g/t. LCT test results of the low-grade sample indicated that
it is possible to recover almost 30% of the silver in the lead
concentrate and 21% of the silver in the zinc concentrate, with
lead and zinc grades at 51% and 58%, lead and zinc recoveries at
74% and 83%, and silver grades at 6,220 g/t and 2,990 g/t,
respectively. The results seem to be reasonable and in accordance
with expectations from the mineralogy of the ore. These results
constitute the design basis for the flow sheet. Full OCT's of
sulphide minerals flotation were conducted initially on each sample
as a proof of concept of the overall circuit and to establish a
workable set of flotation conditions and reagents. These tests
demonstrated that sulphide flotation to saleable lead and zinc
concentrates at acceptable (for batch tests) recoveries was
possible.
During
2011, the laboratory facility of ED&ED, performed a series of
flotation tests and contracted mineralogical analyses on a high
grade and low-grade sample. The initial ED&ED flotation test
work was not successful then after pre-conditioning the samples
with activated carbon and subsequent differential flotation, was
moderately successful. The minerals present included sphalerite,
galena, pyrite and quartzite gangue with galena-sphalerite
assemblages (intertwined specimens) present to some extent. Twelve
(12) OCT's were conducted on each of the samples to confirm
the previous flotation results by UTO and to evaluate the effect of
flotation response at finer grind sizes as seen in the flowcharts.
The flotation tests, carried out on the high-grade samples
indicated that it is possible to obtain commercial lead and zinc
concentrates with grades of lead and zinc of 42.1% and 43%,
respectively. The concentration of silver in the lead and zinc
concentrates were reported as 7,010 g/t and 198.2 g/t,
respectively. The straightforward conventional selective
lead-silver and zinc-silver flotation techniques after carbon
pre-treatment are able to recover 85.7% of silver in the lead
concentrate (with a mass pull of 3.1%) and 2.93% of silver in the
zinc concentrate (with a mass pull of 3.75%). The lead and zinc
recoveries are estimated as 80% and 77.8%, respectively. The
flotation tests, carried out on the low-grade samples indicated
that it is possible to obtain commercial lead and zinc concentrates
with grades of lead and zinc of 41% and 43.1%, respectively. The
concentration of silver in the lead and zinc concentrates were
reported as 6,734 g/t and 207 g/t, respectively. The
straightforward conventional selective lead-silver and zinc-silver
flotation techniques after carbon pre-treatment are able to recover
74% of silver in the lead concentrate (with a mass pull of 1.95%)
and 3.27% of silver in the zinc concentrate (with a mass pull of
2.8%). The lead and zinc recoveries are estimated as 77.6% and
71.9%, respectively. In overall, better flotation (open circuit
tests) performances are obtained at a grind size of P80 of 74 lm.
Locked cycle tests at this grind size will be necessary to confirm
these results. A set of paste thickening tests were run on dry
samples of the flotation test (tailings) to investigate the
performance of the FLSmidth Deep Cone Paste thickening technology.
Screening flocculent tests were carried out. Anionic flocculent
(Floenger PHP 50 Plus) was selected to improve sedimentation
performance based on settling rates and observed visual supernatant
clarity. Experience has shown that it is difficult to scale paste
flow characteristics from small-scale tests to full-scale pipeline
conditions, pilot-scale pumping tests are usually necessary. The
lab flotation concentrates (open circuit tests) were assayed to
determine the deleterious elements in the concentrate and for use
in the NSR calculations and included mineralogical analyses. The
results showed that the lead concentrate assayed 47.2% Pb and 6,273
g/t Ag with 1.3% Cu, 1.45% As and 1.23% Sb. The zinc concentrate
assayed 53.8% Zn with negligible copper, arsenic or antimony. The
lead, silver and zinc concentrate grades are in agreement with the
LCT carried out before. Concentrations of deleterious elements
appear below typical smelter penalty thresholds, with arsenic
appearing as the principal penalty element.
53
During
2012, UTO conducted further metallurgical test work including a
single collective flotation test, a series of open circuit
differential flotation tests (with a de-sliming step), a single
locked cycle flotation test (with de-sliming step), and PORCO flow
sheet testing. This test work was designed to explore the flotation
response of the ore to conventional differential flotation and to
establish the operating conditions, reagent scheme, and
consumptions. The sample was prepared and provided by Apogee (ASL)
and consisted of a bulk composite sample from drill cores with
grain sizes up to 76.2 mm (3 inches). The first exploratory test
indicated that silver recovery to bulk concentrate is about 72%,
while the lead and zinc recoveries are approximately 66% and 78%
respectively. The floating fraction accounted for about 13%, the
slimes fraction 18%, and the rest is lost as final tailings. Lead
and silver losses are up to 23% and 13%, respectively. The open
batch flotation tests indicated that lead recovery is between 48%
and 54%, while zinc recovery is in the range from 50.1% to 72%.
Total silver recovery to both lead and zinc concentrates is between
30% and 68%. Lead concentrate grades range from 33.5% to 59%, zinc
concentrate grades range from 49% and 55%. Similarly, silver grades
in both concentrates range from 9,875 g/t to 15,333 g/t. A single
LCT, a repetitive batch used to simulate a continuous circuit where
all the intermediate material added to the appropriate location in
the flowsheet, was conducted to produce a metallurgical projection
of the sample tested and to assess if the flowsheet and reagent
suite is stable. A good locked cycle test typically achieves steady
state over the last three cycles. Steady state implies both
stability and mass conservation. Stability implies constancy. It
was not indicated whether the test reached stability or whether
mass conservation was achieved. Assuming that steady state was
reached, the results indicated that lead and zinc recoveries were
60.1% and 76.5%, respectively. Lead concentrate assayed 11,114 g/t
Ag, 49.1% Pb and 4.81% Zn. Additionally, the metal values in the
zinc concentrate were 2,220 g/t Ag, 2.29% Pb and 48.6% Zn.
Concentrates account for about 2.9% w/w of the feed (0.81% lead and
2.1% zinc). Silver metal loss in the slimes is as high as in the
tailings. Lead and silver losses in the final tails are 23.1% and
9.12% respectively. The PORCO flowsheet is basically a bulk
flotation followed by lead and zinc flotation, this processing
route should be carried out at high pH (12.2) intended to depress
pyrite at the outset. However, the Pulacayo ore did not respond
well mainly because of lead and silver selectivity issues and high
consumption of acid (H
2
SO
4
) to drop the pH
to a level suitable for lead flotation after the bulk
stage.
Maelgwyn Mineral
Services Africa carried out laboratory flotation optimization test
work on ore samples from the Pulacayo Project during 2012. The
objectives of the work were to: (i) test the flotation conditions
supplied by Apogee on the core samples to determine the metal
recoveries and grades achievable by differential flotation of the
Pb and Zn minerals; (ii) to optimize the flotation conditions for
effective differential of the Pb and Zn minerals and to achieve
saleable grades of Pb and Zn concentrates; and (iii) to perform
locked cycle testing of the optimized flotation conditions using
selected variability core samples. Laboratory rod milling curves
were produced for all the samples and found that the milling times
required for the samples indicated a high degree of variability in
hardness between the sample types. Flotation tests included 65
OCT's (exploratory test work) and four locked cycle flotation
tests. In summary, the locked cycle tests yielded Pb concentrates
of 55-69% Pb at recoveries between 88% and 93% and Zn concentrates
of 37% to 56% Zn at recoveries of 79% to 90% with a large variation
in head grade from 1.5% Pb to 4.3% Pb. The silver recoveries ranged
between 68% and 94% with a variation in head grade of between 136
g/t Ag and 375 g/t Ag.
The
test mining between November 2011 and May 2013 produced 12,550 tons
of ore that were used in a toll milling program to evaluate ore
processing. The ore was hauled by truck to four concentrators
– Tatasi, Fedecomin, La Estrella, and Zabaleta. The Zabaleta
concentrator attained the best recoveries for which the results are
presented in the table below.
Pulcacayo Deposit Zabaleta Toll Milling Results
Concentrate
Grade
Recoveries
Material
Pb
(%)
Zn
(%)
Ag
(g/t)
Pb
(%)
Zn
(%)
Ag
(%)
Lead
Concentrate
47.95
12.85
6,295
64.62
16.26
72.13
Zinc
Concentrate
8.47
39.45
941
9.97
43.57
8.41
Tailings
0.58
0.97
49
25.41
40.16
18.45
Total
Ag recovery: 81.55%
Only
one series of metallurgical tests were performed on samples from
the Paca deposit. The tests were completed on three samples
composited from drill cores and included feed characterization,
leaching, flotation and gravity tests, in-place bulk density
determination, and mineralogy. Study of the three composite samples
found the silver grade varied from 44.5 g/t Ag to 228.6 g/t Ag,
lead minerals 0.56% Pb to 0.8% Pb), and zinc minerals 0.05% Zn to
0.41% Zn). The other sulfide minerals identified were sulphosalts
and chalcocite. Coarse native silver was detected in one of the
samples. The silver minerals were amenable to cyanide leaching for
most of the composite samples (i.e. 28% to 82% Ag extraction)
however, extraction of silver was size dependent and improved with
fineness-of-size. The lime consumption in leach varied from 0.8 to
2.4 kg/t. The NaCN consumption was dependent on both ore type and
particle size, increasing with fineness of a particular size and in
general, averaged ± 1.5 kg/t. Due to the presence of coarse
native silver, the silver leaching was not completed in 120 hours,
hence, the data was extrapolated to 240 hours leach time to project
anticipated silver recovery and indicated that over 90% of silver
could potentially be recovered at fine particle size for two of the
three composites. Assay of the final pregnant solution from
selected tests found measurable quantities of gold, hence, it is
reasonable to conclude that gold is present in those samples. Some
of the copper minerals present in the samples are also readily
soluble in cyanide. Differential lead/zinc flotation process
recovered over 90% of silver in the combined lead and zinc
concentrate for the composite assaying 228.6 g/t Ag. The flotation
process shows promise of recovering silver. However, the flotation
process did not recover acceptable silver values from the other
composites. The gravity concentration process did not concentrate
silver in the gravity concentrate, hence, it cannot be used alone
as a process for recovering silver minerals. The average density
was ± 2.2 gm/cc for the samples tested, but the in-place bulk
densities were extremely variable for one composite (i.e., 1.79 and
2.58 gm/cc). In summary, the preliminary results were encouraging
to warrant additional drilling and metallurgical
testing.
54
Mining
Mineralization
is found from the surface to at least 1,000 m depth at the Pulacayo
deposit thus both surface and underground mining methods are
likely. It is envisioned that surface mining will recover the
oxidized ore and some sulphide ore to an elevation below which a
crown pillar will be left and below which underground mining
methods would start. Mineralization at the Paca deposit is found
from the surface to approximately 60 m depth for the mantos-style
mineralization and from approximately 10 m to 240m depth for the
stockwork and vein style mineralization. Thus, it is anticipated
mining will be mostly by surface methods.
Trial
mining was conducted between November 2011 and May 2013 at the
Pulacayo deposit. The trial mining was done to obtain geotechnical
information, better understand mining dilution, obtain a large
sample for process testing, and train the workforce. The mining
methods included jack leg drill and blast with tracked haulage for
development and drill and blast with trackless haulage for
production by the shrinkage and reusing stoping methods. The
haulage way was advanced and three stopes were mined. The trial
mining produced 12,550 tons of ore.
Mineral Resources and Reserves
On November 22, 2017, we received an independent
technical report titled "Updated Mineral Resource Estimate
and Technical Report for the Pulacayo Project" dated November
14, 2017, with an effective date of October 20, 2017 (the 2017
Pulacayo Technical Report"), prepared by
Peter
Webster, P.Geo and Michael Cullen, M.Sc., P. Geo of Mercator
Geological Services Limited.
The
2017 Pulacayo Technical Report describes resources estimated
following the guidelines of the CIM Standards. Two mineral resource
estimates were disclosed according to the requirements of NI
43-101. The first for the Pulacayo deposit and the second for the
Paca deposit.
Pulacayo Deposit
Results
of the mineral resource estimate prepared for the Pulacayo deposit
are presented in the table below.
The
2017 Pulacayo Technical Report outlined 2.08 million tonnes at a
weighted average grade of Ag 455 g/t, Pb 2.18%, Zn 3.19% (Ag Eq.
594 g/t) in the indicated category and 0.48 million tonnes at a
weighted average grade of Ag 406 g/t, Pb 2.08%, Zn 3.93% (Ag Eq.
572 g/t) in the inferred category. The contained metal content
estimated by the Company, of the indicated category resources is
30.4 million ounces of silver, 100.0 million pounds of lead, 146.3
million pounds of zinc. The contained metal content estimated by
the Company, of the inferred category resource is 6.3 million
ounces of silver, 22.0 million pounds of lead, and 41.6 million
pounds of zinc.
Pulacayo Indicated and Inferred Mineral Resource Statement
Details
Pulacayo Mineral Resource Statement – Effective October 20,
2017
Ag Eq.
Cut-Off (g/t)
Category
Tonnes
*
Ag
(g/t)
Pb
(%)
Zn
(%)
Ag Eq.
(g/t)
400
Indicated
2,080,000
455
2.18
3.19
594
400
Inferred
480,000
406
2.08
3.93
572
Notes:
1)
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.
2)
Raw silver assays were capped at 1,700 g/t, raw lead assays were
capped at 15% and raw zinc assays were capped at 15%.
3)
Silver equivalent Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb% *(USD$0.94/
lb. Pb /14.583 Troy oz./lb./USD$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(USD$1.00/lb. Zn/14.583 Troy
oz./lb./USD$16.50 per Troy oz. Ag)*10,000*82.9%).
4)
Metal prices used in the silver equivalent calculation are
USD$16.50/Troy oz. Ag, USD$0.94/lb Pb and USD$1.00/lb. Zn. Metal
recoveries used in the silver equivalent equation reflect historic
metallurgical results disclosed by Apogee (Porter et al.,
2013).
5)
Metal grades were interpolated within wire-framed,
three-dimensional silver domain solids using Geovia-Surpac Ver.
6.6.1 software and inverse distance squared interpolation methods.
Block size is 10m(X) by 10m(Z) by 2m(Y). Historic mine void space
was removed from the model prior to reporting of
resources.
6)
Block density factors reflect three-dimensional modeling of drill
core density determinations.
7)
Mineral resources are considered to have reasonable expectation for
economic development using underground mining methods based on the
deposit history, resource amount and metal grades, current metal
pricing and comparison to broadly comparable deposits
elsewhere.
8)
Rounding of figures may result in apparent differences between
tonnes, grade and contained ounces.
9)
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
10)
Tonnes are rounded to nearest 10,000.
55
The
contained metals estimated by the Company based on in the 2017
Pulacayo Technical Report are presented in the table
below.
Contained Metals Based on October 20,
2017 Pulacayo Deposit
**
Mineral
Resource Estimate
Metal
Indicated Resource
Inferred Resource
Silver
30.4
million oz.
6.3
million oz.
Lead
100.0
million lbs.
22.0
million lbs.
Zinc
146.3
million lbs.
41.6
million lbs.
**
Based
on the resource estimate Ag Eq. cut-off value of 400 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment.
Between
2006 and 2012, a total of 69,739 meters of diamond drilling (226
surface and 42 underground drill holes) was conducted at Pulacayo,
results of which support the mineral resource estimate The Pulacayo
site is currently permitted for production at a milling rate of 560
tonnes per day and no known legal, political, environmental, or
other risks that would materially affect potential future
development were identified by us at the effective date of the 2017
Pulacayo Technical Report (October 20, 2017) or are known by us as
of the date of this filing.
Approximately
85% of the resource tonnage identified at the 400 g/t Ag Eq.
cut-off value occurs within 150 meters vertical distance from the
main San Leon tunnel, which may facilitate future mineral
extraction.
Historic Pulacayo production was predominantly
from the TVS which extends over a strike length of more than 2.5 km
and to a depth of at least 1,000 meters. Prior resource drilling
only covered approximately 20% of the TVS strike length. With new
drilling,
the Company
believes
that there is potential to discover additional resources along the
Tajo structure.
Paca Deposit
In June
2016, the Company commenced its sampling program at the Paca
deposit. Samples were obtained at one meter intervals from near
surface drifts within the Paca mine which appears to have limited
historic development. The area of sampled drifts has an estimated
dimension of 90 meters length (east to west) and 75 meters width
(north to south) and occurs at an average depth of 100 meters.
Mineralization mainly consists of silver sulphides (mostly
tennantite), galena and sphalerite in the pores of the sedimentary
rocks and in breccias.
On
August 12, 2016, the Company announced the assay results for the
first group of 40 samples collected from the Paca deposit
exploration program at its Pulacayo Project (see table below).
During the sampling program, 233 samples were collected. However,
due to a backlog at the testing laboratory, the Company prioritized
the 40 most prospective samples for assay. Thus, the assayed
samples are not representative of the sample population. These
results are taken from the first group of samples the Company
delivered.
The
samples were delivered to ALS Geochemistry Laboratory in Oruro,
Bolivia (which we refer to as "ALS") for assay and
included QA/QC samples. Standard reference, duplicate and blank
samples were used – all of which, produced acceptable
results. ALS is an independent laboratory and was qualified and
accredited by the Colombian Institute of Technical Standards and
Certification (which we refer to as the "ICONTEC") and
the Standards Council of Canada for the methods used during the
time the samples were prepared and assayed. Records were maintained
to document the secure handling of the samples and to verify their
identities were maintained.
Chip
channel sample P225 returned a silver grade that is greater than
the 1,500 g/t detection limit. It is planned to submit the sample
for another assay for precious metals content using methods having
a greater upper detection limit.
56
Samples
were obtained from shallow depth drifts within the Paca mine which
appear to have limited historic development. The area of sampled
drifts has an estimated dimension of 90 meters length (east to
west) and 75 meters width (north to south) and occurs at an average
depth of 100 meters. Mineralization mainly consists of silver
sulphides (mostly tennantite), galena and sphalerite in the pores
of the sedimentary rocks and in breccias.
The
Company
has undertaken studies (for production scenarios ranging from 200
to 500 tonnes per day) with the aim to bring Pulacayo into
production at minimum capital expense given the current challenging
metals market.
A positive production decision would not be
based on FS of mineral reserves demonstrating economic and
technical viability so would carry increased uncertainty and the
risk of failure as to the mining method and
profitability.
On
September 29, 2016, the Company announced its two-fold priority
objective and plans for definition drilling at the Pulacayo
Project. The objective includes: (i) Study the possibility of
commissioning Pulacayo and/or Paca to production at current metal
prices, part of which includes definition drilling; and (ii) Apply
modern exploration techniques (District-wide Three-Dimensional
Induced Polarization Program (which we refer to as "3D
IP")) to the Pulacayo district to test mineralization found
during reconnaissance exploration. The definition drilling to
support any decision to commission Pulacayo and/or Paca to
production and detailed three-dimensional induced polarization
surveys were described.
A
detailed presentation about the exploration and maps showing prior
sample location and assay results and proposed IP line locations
are available on
the Company's
website.
A positive production
decision would not be based on a FS of mineral reserves
demonstrating economic and technical viability so would carry
increased uncertainty and the risk of failure as to the mining
method and profitability.
Results
of the mineral resource estimate for the Paca deposit are presented
in the table below.
The
2017 Pulacayo Technical Report outlined 2.54 million tonnes at a
weighted average grade of Ag 256 g/t, Pb 1.03%, Zn 1.10% (Ag Eq.
342 g/t) in the inferred category. The contained metal content
estimated by the Company, of the inferred category resources is
20.9 million ounces of silver, 57.7 million pounds of lead, 61.6
million pounds of zinc (more resource details in the table
below).
Paca Inferred Mineral Resource Statement Details
Paca Mineral Resource Statement – Effective October 20,
2017
Ag
Eq. Cut-Off (g/t)
Category
Tonnes
*
Ag
(g/t)
Pb
(%)
Zn
(%)
Ag
Eq. (g/t)
200
Inferred
2,540,000
256
1.03
1.10
342
Notes:
1)
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.
2)
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.
3)
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(USD$0.94/ lb. Pb
/14.583 Troy oz./lb./USD$16.50 per Troy oz. Ag)*10,000) + (Zn%
*(USD$1.00/lb. Zn/14.583 Troy oz./lb./USD$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.
4)
Metal prices used in the silver equivalent calculation are
USD$16.50/Troy oz. Ag, USD$0.94/lb Pb and USD$1.00/lb. Zn and
reflect those used for the Pulacayo deposit mineral resource
estimate reported above.
5)
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting resources.
6)
A block density factor of 2.26g/cm³ was used and reflects the
average of 799 density measurements.
7)
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.
8)
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
9)
*
Tonnes are
rounded to nearest 10,000.
57
The
contained metals estimated by the Company based on the 2017
Pulacayo Technical Report are presented in the table
below.
Contained Metals Based on October 20, 2017 Paca Deposit** Mineral
Resource Estimate
Metal
Inferred Resource
Silver
20.9
million oz.
Lead
57.7
million lbs.
Zinc
61.6
million lbs.
**
Based
on the resource estimate Ag Eq. cut-off value of 200 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment
The
resource estimate is based on results of 97 diamond drill holes and
1 reverse circulation drill hole totaling 18,160 meters completed
between 2002 and 2007. The geology of the Paca deposit includes a
core zone of feeder-style mineralization associated predominantly
with brecciated andesite, plus additional zones of shallowly
dipping mantos-style mineralization that are hosted by the
surrounding volcano-sedimentary sequence. The Paca deposit remains
open at depth and along strike. The Paca mineralization starts from
surface and the deposit may be amenable to open-pit mining and this
will be evaluated further in the future.
Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. The estimate of mineral resources may be
materially affected by environmental permitting, legal, title,
taxation, sociopolitical, marketing, or other relevant
issues.
Environmental
The
Company, through acquisition of ASC and later transfer of the
environmental license, has a valid and in force environmental
license issued by the Bolivian Ministry of Environment and Water
that is valid to 2023 for the Pulacayo licenses. The license allows
for construction of a mine and concentrator with capacities up to
560 tons per day. Granting of the environmental license includes
approval of the Environmental Impact Evaluation Study and
Environmental Base Line Audit. Bolivian environmental law absolves
the Company of environmental liability created by its
predecessors.
Project Risks and Mitigation
The
major risks to developing the Pulacayo Project include the
inability to obtain financing, decreases in metal prices, and
adverse political and social changes. The inability to obtain
financing will be mitigated through pursuit of equity investors and
cash flow from sale of available material. The risk from decrease
in metal prices will be mitigated by the timing of the project in
that the start of the project is at the time of lowest metal prices
in several years and concentrate sales will start when metal prices
are projected to be much higher. Adverse political and social
changes are also mitigated by the timing of the project. The
national government has started to become much more supportive of
mining and recently the local government and population have shown
strong support for re-starting the mine.
Exploration
Exploration was
conducted in mid to late 2016 at the Pulacayo and Paca deposits.
Mapping and sampling at the Pulacayo deposit was performed at the
AVS located approximately 200 meters west of the Rothschild shaft,
at a level 50 meters above the San Leon adit level (level 0, 4128 m
elevation). The principal vein measures 1.0 to 1.5 meters in width.
The strike and vertical extent of the principal vein are unknown.
The location of the AVS is approximately 600 meters west of the San
Leon adit and passes outside the western boundary of the area where
Apogee conducted 70,000 meters of drilling between 2005 and 2012,
and therefore was not included in the Pulacayo deposit resource
estimate disclosed in the 2017 Pulacayo Technical Report.
Additional sampling was completed at underground mining area 1
(which we refer to as "UG1") where initial mining may
occur. UG1 is located at level 0 approximately 110 meters east of
the San Leon adit and within 100 meters from the Central shaft. UG1
measures approximately 117 meters in strike, 93 meters in width and
38 meters in height. A total of 22 samples were obtained from the
AVS and UG1 areas and sent for assay and the results received.
These results are presented in the table below. The samples were
obtained by continuous chip channel sampling across the width of
the vein mineralization at locations one meter apart.
58
UG1 and AVS Sample Assay Results
Ag
Zn
Pb
Width
SampleID
(g/t)
(%)
(%)
Area
Sampling
Method
(m)
1912
1,400
18.4
>20.0
UG1
chip
channel
1
m
1920
915
22.7
1.0
UG1
chip
channel
1
m
1908
490
20.0
1.6
UG1
chip
channel
1
m
1907
688
14.7
3.3
UG1
chip
channel
0.6
m
1918
405
21.6
0.4
UG1
chip
channel
1
m
1906
432
15.9
1.8
UG1
chip
channel
1
m
1911
583
8.4
7.0
UG1
chip
channel
1
m
1919
732
7.8
0.3
UG1
chip
channel
1
m
1909
682
6.1
0.8
UG1
chip
channel
1
m
1910
261
11.8
0.7
UG1
chip
channel
1
m
1921
161
8.4
1.6
UG1
chip
channel
1
m
1917
291
6.8
0.4
UG1
chip
channel
1
m
1916
101
9.9
0.3
UG1
chip
channel
1
m
1915
67
5.0
0.3
UG1
chip
channel
1.3
m
1922
54
2.9
0.1
UG1
chip
channel
1
m
1913
62
1.6
0.5
UG1
chip
channel
1
m
1914
39
0.3
0.1
UG1
chip
channel
1
m
1905
392
23.0
12.0
AVS
chip
channel
1
m
1904
284
17.6
6.6
AVS
chip
channel
1
m
1901
250
6.3
6.2
AVS
chip
channel
1
m
1903
96
7.7
2.7
AVS
chip
channel
1.5
m
1902
17
5.7
0.5
AVS
chip
channel
1
m
The
samples including QA/QC samples, were delivered to ALS Bolivia
Ltda. located in Oruro, Bolivia for preparation after which splits
were sent the ALS laboratory located in Lima, Peru (we refer to
both locations collectively as "ALS"). ALS is an
independent laboratory and was qualified and retains current
accreditation by the ICONTEC and the Standards Council of Canada
for the methods used during the time the samples were prepared and
assayed. Normal QA/QC procedures were followed when handling and
processing the samples as described in the Company's Sample
Procedures, QA/QC for Sampling manual (QA/QC manual), National
Instrument 43-101 Standards of Disclosure for Mineral Projects, and
the Canadian Institute of Mining, Metallurgical and Petroleum
Engineers Exploration Best Practices Guidelines. These procedures
included use of a chain of custody to document possession, delivery
and security of the samples from the Company to the laboratory and
secure storage until transported. The laboratory was assessed to
ensure it has the technical qualifications for preparation and
assay of the type of sample and range in mineral content, follows
proper procedures to ensure correct sample identification and
security, and maintains confidentiality of assay results. Quality
control materials including a blank and certified reference
materials were included with the sample group for assay. Duplicate
assays were also performed. The quality control material assay
results were found within acceptable limits of the known values and
the duplicate assay results were within acceptable limits
supporting acceptance of the assay results of the samples. Access
to the analytical results was restricted to the chief executive
officer, chief geologist, vice president of operations, and general
mining manager. The information was verified by Christopher M.
Kravits CPG, LPG, the Company's "Qualified
Person" and Chief Geologist, through discussion with relevant
parties, review of documents and comparison to known values. There
were no limitations on verification. Mr. Kravits has reviewed and
approved the data and records supporting the above
statements.
59
Geologic mapping
and sampling at 233 locations was completed in the historic Paca
mine drifts. The area is within the boundary of the Paca deposit
resource estimate disclosed in the Paca Technical Report but was
not included in the block model used to estimate resources. Because
of a backlog at the assay laboratory the Company prioritized the
most prospective 40 samples for assay. Thus, the assayed samples
are not representative of the sample population. These results,
shown in the table below, are taken from the first group of samples
the Company delivered. Samples were obtained by continuous chip
channel sampling across the width of the vein mineralization at
locations one meter apart.
Summary of Paca Mine Drift Sample Assay Results
Ag (g/t)
Zn (%)
Pb (%)
Ag Eq (g/t)
Number
of Samples
Min
Max
Avg
Min
Max
Avg
Min
Max
Avg
Min
Max
Avg
40
15.0
1500.0
331.2
0.1
2.5
6.0
0.5
6.7
1.9
45.7
1617.0
407.3
Silver assays include one sample assayed at >1500 g/t and used
as 1500 g/t in the summary table. Silver equivalent (AgEq.)
calculations are based on the following closing prices as of August
9, 2016: USD$19.79/oz. for Ag, USD$1.03/lb. for Zn and USD$0.81/lb.
for Pb (London Metals Exchange spot prices). Metal recoveries are
assumed to be 100%.
Silver
equivalent (Ag Eq.) calculations were based on the following
closing prices as of August 9, 2016: USD$19.79/oz. for Ag,
USD$1.03/lb. for Zn and USD$0.81/lb. for Pb (London Metals Exchange
spot prices). Metal recoveries were assumed to be
100%.
The
samples were delivered to ALS Geochemistry Laboratory in Oruro,
Bolivia (which we sometimes refer to as "ALS Bolivia")
for assay and included QA/QC samples. Standard reference, duplicate
and blank samples were used – all of which, produced
acceptable results. ALS Bolivia is an independent laboratory and
was qualified and accredited by the ICONTEC and the Standards
Council of Canada for the methods used during the time the samples
were prepared and assayed. Records were maintained to document the
secure handling of the samples and to verify their identities were
maintained.
Legacy Financial Obligations
As part
of the transaction with Apogee, we agreed to assume, within certain
limitations, all liabilities associated with the Apogee
Subsidiaries and the Pulacayo Project. During 2014, Apogee received
notice from the national tax authority in Bolivia alleging that its
wholly owned subsidiary ASC owes approximately Bs42,000,000
(equaling in an amount originally assessed at approximately
$7,600,000 in 2004) of taxes, interest and penalties relating to a
historical tax liability. The Company continued to dispute the
assessment and hired local legal counsel to pursue an appeal of the
tax authority's assessment on both substantive and procedural
grounds. On May 26, 2015, the Company received a positive
"resolution" issued by the Bolivian Constitutional
Court that declared null and void the previous resolution of
the Bolivian Supreme Court issued in 2011 and sent the matter back
to the Supreme Court to consider and issue a new
resolution.
On December 4, 2019, the Company received the 2019
Resolution issued by the Supreme Court of Bolivia which declares
that the contentious tax claim of US$ 6,556,787 brought by
Bolivia's General Revenue Authority against
the
Company's
Bolivian subsidiary
is
not
proven
.
Concessions
Concession
relinquishments were concluded in early 2016. The project is now
comprised of two groups of contiguous mining concessions. The
largest group is centered over the town of Pulacayo and includes
the extent of the Pulacayo deposit, several potential mineralized
areas and tailings piles. The smaller group is centered over the
Paca deposit and includes potential mineralized areas and several
tailings piles. Both groups of concessions include area for future
surface facilities. The groups of concessions are located
approximately 2 kilometers apart. The relinquishments reduced the
total gross concession holdings to 3,560 ha. The figure below shows
the resulting concession holdings of the Company.
60
Recent
Activities & Updates
2017
Work
during fiscal year 2017 included updating of mining scenarios and
budgets, negotiations to resolve the legacy financial obligations,
and deliberations to obtain permission to restart the mine. The
Company has
worked with government
officials to obtain assurances that our investments in exploring
and mining at the Pulacayo Project are safe. Such efforts included
a meeting with the Bolivian government's mining minister and
other mine operators, a meeting with the minister at the Embassy of
Canada and assistance in coordinating and preparing for his
participation in the 2017
Prospectors & Developers
Association of Canada (PDAC)
convention.
61
2018
During
the year ended December 31, 2018, the Company determined there were
several indicators of potential impairment of the carrying value of
the Pulacayo Paca property including change in the Company primary
focus to Gibellini Project. While management believes that Pulacayo
Project is a property of merit and warrants continued development,
a write down in accordance with
IFRS 6 Exploration for and Evaluation of
Mineral Resources
and
IAS
36, Impairment of Assets
of $13,708,200 of previously
capitalized deferred exploration costs to $nil and an impairment
charge of $335,181 on the Pulacayo mining equipment has been
recognized. This non-cash accounting charge does not impact the
Company's financial liquidity, or any future operations and
management believes the adjustment to the book value of this
long-lived asset more accurately reflects the Company's
current market capitalization.
2019
In
September 2019 the Company started 5,000-meter diamond drilling at
Pulacayo which include Phase 1 and Phase 2 Drilling programs as
follows.
Phase 1 Drilling
To
be comprised of surface drilling to expand the NI43-101 compliant
Paca resource (see Company's news release dated November 22,
2017) in the northern and eastern directions where previous drill
holes encountered high grade surface intercepts, including PND-062,
which included 42 meters of 406 g/t Ag located on the edge of the
resource envelope. The Company will also evaluate upgrading the
Paca resource from an Inferred category to Measured and Indicated
categories through infill drilling. Some of the high grade zone
extensions being explored are shown below:
hole Nº
from - to (m)
int (m)
Ag (g/t)
Pb (%)
Zn %
PND008
18.0 – 33.5
15.5
314
1.0
0.4
PND029
12.0 – 22.3
10.3
436
0.0
0.0
PND062
10.0 – 52.0
42.0
406
0.8
0.1
ESM2
0.0 – 38.0
38.0
411
1.4
1.2
Phase 2 Drilling
Phase
2 Pulacayo surface drilling is scheduled to commence in November,
2019. The plan is to expand the Pulacayo resource base along strike
from 1km to 3km and at depth from 300m to 600m. There will also be
infill drilling to confirm the geological model and test continuity
of shallow high grade indicated resource blocks that are near the
San Leon tunnel and accessible through the existing adit. Some of
the high grade zone extensions being explored are shown
below:
hole Nº
from - to (m)
int (m)
Ag (g/t)
Pb (%)
Zn %
Distance from adit (m)
PUD005
96.2 –
108.0
11.9
689
1.9
1.4
-67.5
PUD007
70.0 – 96.8
26.8
517
2.3
4.2
-44.5
PUD057
374.0 –
378.0
4.0
1,184
0.8
2.3
-137.5
PUD069
281.0 –
294.0
13.0
624
2.1
4.2
-46.0
PUD109
293.6 –
298.4
4.8
3,607
3.8
4.1
-30.4
PUD118
174.0 –
184.0
10.0
1,248
1.7
2.6
-93.9
PUD134
128.2 –
151.5
23.3
514
1.3
1.9
-55.7
PUD150
290.0 –
302.0
11.2
882
0.4
0.6
-75.2
PUD159
343.0 –
354.0
11.0
790
0.6
0.6
-116.6
PUD170
237.0 –
239.0
2.0
3,163
0.1
0.9
-32.5
62
The
technical contents of the above phase I and Phase 2 Drilling were
prepared under the supervision of Danniel Oosterman, VP
Exploration. Mr. Oosterman is not independent of the Company in
that he is employed by the Company. Mr. Oosterman is a Qualified
Person ("QP") as defined by the guidelines in NI
43-101. AgEq cutoffs discussed in this release are based on the
following formula: AgEg. (g/t) = Ag (g/t)*89.2% + (Pb%
*(US$0.94/lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9%). Metal prices used
in the silver equivalent calculation are US$16.50/Troy oz. Ag,
US$0.94/lb. Pb and US$1.00/lb. Zn.
On October 7, 2019, the Company announced that the
MPC between itself and COMIBAL was executed on October 3, 2019. The
MPC grants the Company the 100% exclusive right to develop and mine
at the Pulacayo and Paca concessions for up to 30 years.
It is
comparable to a mining license in Canada or the United
States.
In
December 2019 the Company started its phase two drilling program
which consists of a 5,000-meter program that will consist mainly of
wide step-out drilling up to 1.5 km west (Western Block) of the
current 43-101 Pulacayo resource. That current Pulacayo resource
covers 1.4 km in strike and
represents only a small portion of the
TVS which is over 3 km in strike and open to least 1,000 meters at
depth, according to historical records of underground
mining.
The Pulacayo deposit currently has a NI43-101
compliant resource of 2.08 million tonnes at Ag 455 g/t, Pb 2.18%,
Zn 3.19% in the indicated category. It also has 0.48 million tonnes
at Ag 406 g/t, Pb 2.08%, Zn 3.93% in the inferred category. The
Company estimates that the amounts of metals of the indicated
category are 30.4 million ounces of silver, 100.0 million pounds of
lead, and 146.3 million pounds of zinc. The Company estimates that
the amounts of metals of the inferred category are 6.3 million
ounces of silver, 22.0 million pounds of lead, and 41.6 million
pounds of zinc (see the Company's report "UPDATED
MINERAL RESOURCE ESTIMATE TECHNICAL REPORT for the PULACAYO
PROJECT," by Mercator effective October 20, 2017; available
at www.sedar.com).
During
the year ended December 31, 2019, the Company incurred total costs
of $1,474,026 (same period 2018 - $898,650) for the Pulacayo
Project including for $970,955 (2018 - $51,112) for geological and
engineering services, $503,071 (2018 - $847,538) for personnel,
legal, general and administrative expenses.
During
the year ended December 31, 2019, the Company assessed whether
there was any indication that the previously recognized impairment
loss in connection with the Pulacayo Paca property
may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:
●
The Company signed
a mining production contract granting the Company the 100%
exclusive right to develop and mine at the Pulacayo Paca
property;
●
The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;
●
The Company re-initiated active exploration and
drilling program on the property
;
●
Completed a
positive final settlement of Bolivian tax dispute (note
27).
As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property.
In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property's fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.
With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.
The
Company also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.
As the recoverable
amount estimated with respect to the above was $31.4 million an
impairment recovery of $13,708,200 was recorded during the year
ended December 31, 2019.
As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property. The recoverable
amount was determined using level 3 inputs on the fair value
hierarchy. In order to estimate the fair-value of the property, the
Company engaged a third-party valuation consultant to value the
property. The weighted average estimated fair-value of the Pulacayo
Property with weighting from 20%-50% was $29.7 million.
Accordingly, an impairment recovery of $13,708,200 was recorded
during the year ended December 31, 2019 in connection with the
Pulacayo Paca property.
2020
On
January 8, 2020 the Company provided an update which highlighted
the following.
●
December 2019:
completion of the first 3 holes of the planned 17 drill holes at
the Pulacayo. These step-out drill holes are located 25-, 50- and
115 meters west of the existing Pulacayo resource
model.
●
The Company has
mobilized a second drilling rig to Pulacayo and expects to complete
the proposed 5,000 meter drill program in February 2020 with full
assay results available by March 2020. The remainder step out drill
holes are collared up to 2km west from the existing resource
model.
In
January 2020, the Company announced the first step-out diamond
drilling results from the Pulacayo silver project. PUD 267 marks
the Company's first Pulacayo drill hole of the 2020 drilling
campaign and the first drilling to be conducted on the property
since 2012. A total of 268 historic Pulacayo drill holes were
completed between 2008 and 2012 by the previous operator. The
results of PUD 267 comes on the back of the success of the
Company's first drill campaign at Paca (7km north of
Pulacayo), where PND 110 intersected highest-ever grade at Paca of
12 meters of mineralization grading 1,085g/t silver, starting 16
meters downhole. These near-surface, high-grade intersections
contribute positively to a potential district-style project
economic assessment with consideration of open-pit mining
scenarios. There are several other targets controlled by the
Company within the district that are yet to be drilled but highly
promising (e.g., Pacamayo, Al Abra, and Pero).
PUD 267
intercepted the TVS 83 meters west from PUD 041 which
intersected 20 meters of mineralization grading
15.1g/t Ag, 2.43%Zn, 0.76% Pb at a similar depth to the
mineralization encountered at PUD 267
. PUD 041 (drilled in
2008)
represents the westernmost
drillhole that comprises the Company's 2017 NI43-101
compliant Pulacayo resource ("Eastern Block"). These
results confirm that the TVS extends westward and occurs
near-surface, with a probable thickening component for a minimum
83-meter extension to the west of the Eastern
Block.
63
PUD
267 was planned based on a vertical projection of Pulacayo's
historic underground workings which followed the TVS. These
workings exist between 400 meters and 1,000 meters from the surface
with mined grades of 10% to 25% Zn and 300g/t to 800g/t Ag
(according to Hochschild mining records from 1914 to 1960). The
results of PUD 267 reveal strong potential for existing
mineralization from near-surface in the intervening depths to the
workings approximately 400 meters below.
The
current 20-hole, 5,000 meter step-out program of which 2,598 meters
was completed in early February 2020.
Complete
composited drill intersections of significant mineralization (in
meters) are tabulated below:
Hole ID
From (m)
To (m)
Interval (m)
Ag (g/t)
Zn (%)
Pb (%)
AgEq
Target
PUD267*
31.5
67
35.5
54.3
4.31
0.92
229.6
West
117
123
6.0
47.8
1.11
0.25
89.7
West
PUD268
21
23
2
20
1.34
0.77
92.6
West
PUD274
75
77
2
93.5
0.42
98.8
East
PUD274
82
83
1
83
0.09
77.4
East
Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 61% of reported core lengths. Silver equivalent is
calculated as follows: Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb%
*(US$0.94/ lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz./lb./US$16.50 per Troy oz. Ag)*10,000*82.9). This calculation
incorporates metallurgical recoveries from test work completed for
Pulacayo in 2013.
Header information for Drillholes
Hole ID
Azimuth
Dip
Depth (m)
Easting
Northing
AMSL
PUD267
180
-45
180
739823.4
7744735
4336
PUD268
180
-45
192
739866
7744723
4366
PUD269
180
-45
210
739750
7744727
4321
PUD270
0
-45
201
739626
7744618
4284
PUD271
180
-45
156
739670
7744655
4293
PUD272
180
-45
300
739540
7744860
4329
PUD273
180
-45
201
739343
7744869
4385
PUD274
200
-65
95
741031
7744391
4237
PUD275
180
-45
161
739481
7744625
4357
PUD276
0
-45
201
739467
7744416
4267
PUD277
21
-55
72
741196
7744229
4181
PUD278
0
-45
120
739170
7744599
4317
PUD279
180
-45
130
737933
7744679
4346
PUD280
0
-45
113
739024
7744538
4344
PUD281
0
-45
180
739661
7745113
4396
PUD282
0
-45
86.4
739180
7744380
4296
Complete drill map and result cross sections can
be accessed
www.silverelef.com/company-presentation
and
www.silverlef.com/projects/pulacayo-silver-lead-zinc/
.
.
64
The technical contents of above was prepared under
the supervision of Danniel Oosterman, VP Exploration ("Mr.
Oosterman"). Mr. Oosterman is not independent of the Company
in that he is employed by it. Mr. Oosterman is a qualified person
("QP") as defined by the guidelines in NI 43-101.
T
he Company
adopts
industry-recognized best practices in its implementation of QA/QC
methods. A geochemical standard control sample and a blank sample
are inserted into the sample stream at every 20th sample.
Duplicates are taken at every 40th sample. Standards and duplicates
(including lab duplicates and standards) are analyzed using
Thompson-Howarth plots. Samples are shipped to ALS Global
Laboratories in Ururo, Bolivia for preparation and then shipped to
ALS Global laboratories in Lima, Peru for analysis. Samples are
analyzed using Intermediate Level Four Acid Digestion. Silver
overlimits ("ore grade") are analyzed using fire assay
with a gravimetric finish. The ALS Laboratories sample management
system meets all the requirements of International Standards
ISO/IEC 17025:2017 and ISO 9001:2015. All ALS geochemical hub
laboratories are accredited to ISO/IEC 17025:2017 for specific
analytical procedures. All samples are taken from HQ-diameter core
and split in half by a diamond-blade masonry saw. One-half of the
core is submitted for laboratory analysis and the other half is
preserved for reference at the Company's secured core
facility. Prior to sampling, all core is geotechnically analyzed
and photographed and then logged by geologists.
Planning Activities
The
Company's objectives in 2020 is to drill and expand the
Pulacayo silver resource base which open to the west and at depth,
as well as drill district-scale targets (Paca, Al Abra, Pero,
Pacamayo) and to increase investor awareness.
The
Company's goals for 2020 include:
●
Refurbish
portions of the existing mine workings
●
Expand
the Pulacayo resource footprint
●
Phase
I drill program
●
Test
surface targets adjacent to existing workings
●
Test
depth of mineralization with initial deep fan
●
Compile
a production profile for Pulacayo
●
Expand
the Paca resource footprint
●
Phase
II drill program
●
Test
extent of manto/conglomerate formation
●
Update
Pulacayo/Paca Technical Report
Non
Material Properties
Coal Projects
Ulaan Ovoo Coal Property, Mongolia
The
Company acquired a 100 % interest in the Ulaan Ovoo Property
located in the territory of Tushig soum of Selenge aimag (province)
in Northern Mongolia in 2010 from a private Mongolian company. On
November 9, 2010, the Company received the final permit to commence
mining operations at the Ulaan Ovoo Property. The focus of the
Ulaan Ovoo PFS was for the development of low ash coal reserves in
the form of a starter pit. During 2014, the Company faced
challenges, such as significant dewatering of the resource, lack of
demand, depressed coal sales prices, and higher than expected
operating/transportation costs, resulting in limited production
throughout the period. Pit dewatering has become a significant
impediment to achieving consistent production, especially following
mine standby during the periods of low market demand. The mine was
placed on standby in Spring 2014 but continued coal loading and
sales from the existing stockpiles. Due to the lack of sustained
production, management has not sufficiently tested the mine plant
and equipment to conclude that the mine has reached the commercial
production stage. During the beginning of 2015, due to minimal
increase in coal prices and decreased demand because of a mild
winter, the Company decided to maintain the operations on standby
though coal loading and sales from existing stockpiles continued to
customers. The Company decided to sell the mining equipment to
generate cash so that operations may continue.
In
April 2015, the Company, through its wholly-owned subsidiary, Red
Hill, entered into a purchase agreement with an arm's-length
party in Mongolia to sell substantially all of its mining and
transportation equipment at the Ulaan Ovoo Property for total
proceeds of approximately $2.34 million. The sale of equipment was
completed in June 2015. Total proceeds (including the sale of
equipment to other arm's-length parties) amounted to $2.9
million in cash. The Ulaan Ovoo Property ceased pre-commercial
operations in June 2015, The Company continued to maintain the
Ulaan Ovoo Property operations on standby, incurring minimal
general and administrative costs.
65
On
October 16, 2018, the Company executed a lease agreement (the
"Lease") with an arms-length private Mongolian company
(the "Lessee") whereby the Lessee plans to perform
mining operations at Ulaan Ovoo Property and will pay the Company
USD$2.00 (the "Production Royalty") for every tonne of
coal shipped from the Ulaan Ovoo Property's site premises.
The Lessee paid the Company USD$100,000 in cash, as a
non-refundable advance royalty payment and is preparing, at its own
and sole expense, to restart and operate the Ulaan Ovoo Property
with its own equipment, supplies, housing and crew. The Lessee will
pay all government taxes and royalties related to its proposed
mining operation. The Lease is valid for 3 years with an annual
advance royalty payment ("ARP") for the first year of
USD$100,000 which was due and paid upon signing, and USD$150,000
and USD$200,000 due on the 1st and 2nd anniversary of the Lease,
respectively. The ARP can be credited towards the USD$2.00 per
tonne Production Royalty payments to be made to the Company as the
Lessee starts to sell Ulaan Ovoo coal.
The 3-year Lease can be extended upon mutual
agreement.
Since the signing of the Lease, the Lessee has
spent approximately USD$700,000 on supplies, housing and crew and
restarted Ulaan Ovoo Property with its own equipment in March 2018
reporting approximately 21,000 tonnes of coal production and sales.
Lessee plans to start double shifts in April to meet
demand.
In
March 2019 was the startup of the Ulaan Ovoo Property and
approximately 21,000 tonnes of coal production and sales. The Ulaan
Ovoo Property has the production capacity of 2 million tonnes per
year and is a fully-permitted large coal field featuring a single,
massive coal seam of 40 to 80 metre thickness outcropping at
surface with a low strip ratio carrying minimal technical
risk.
In June 2019
the
Ulaan Ovoo
Property
achieved record monthly coal production of 37,800
tonnes.
The Ulaan Ovoo
Property
was commissioned in March 2019, however the
operation was stopped in April and May due to the late approval of
2019 environmental plan. The approval was issued in June
2019.
As of
the date of this Annual Report, pursuant to the Production Royalty
Agreement the Lessee has spent approximately USD$700,000 on
supplies, housing and crew, and the Lessee restarted Ulaan Ovoo
Property with its own equipment.
Chandgana Project, Mongolia
The
Chandgana Project consist of the Chandgana Tal property and the
Khavtgai Uul property (formerly named Chandgana Khavtgai) which are
within nine kilometres of each other in the Nyalga Coal Basin in
east central Mongolia and approximately 280 kilometres east of
Ulaanbaatar. On November 22, 2006 the Company (then Red Hill Energy
Inc.) entered into a letter agreement with a private Mongolian
company that set out the terms to acquire a 100% interest in the
Chandgana Tal property. On August 7, 2007, the Company (then Red
Hill Energy Inc.) entered into a letter agreement with another
private Mongolian company that set out the terms to acquire a 100%
interest in the Khavtgai Uul property. Under the terms of the
Chandgana Khavtgai agreement, the Company paid a total of
USD$570,000. On February 8, 2011, the Company received a full
mining license from the Mineral Resources Authority of Mongolia for
the Chandgana Tal property. The license can be updated to allow
mining of 3.5 million tonnes per year to meet the demand of the
Chandgana Power Plant within 90 days.
During
2007, the Company performed geologic mapping, drilling and
geophysical surveys of the Chandgana Tal and Khavtgai Uul
properties. During June, 2010, The Company completed a 13 drill
hole, 2,373 metre resource expansion drilling program on the
Khavtgai Uul property, including 1,070 metres of core drilling, and
five lines of seismic geophysical survey for a total of 7.4 line
kilometres. The Company completed a 15 drill hole program during
June-July 2011 to better define the coal resource of the Chandgana
Tal licenses.
The
Chandgana Tal property has been mined previously and occasionally
during the Company's tenure to meet local demand. The Company
decided not to mine during the 2017- 2018 heating season because of
insufficient demand. A dry lake was determined by the Ministry of
Environment to overlap onto one of the Chandgana Tal licenses as
determined under the Mongolian Law to Prohibit Mineral Exploration
and Mining Operations at Headwaters of Rivers, Protected Zones of
Water Reservoirs and Forested Areas (the "
Long Named Law
") but was resolved
without loss to the Company. The Khavtgai Uul property has never
been mined. The Ministry of Environment determined that a dry lake
overlapped the Khavtgai Uul license as defined under the Long Named
Law. This was resolved by removing the lake area from the license
while not affecting the coal resource and mineability. The Company
will continue to monitor the developments and ensure that it
follows the necessary steps in the Amended Law on Implementation to
secure its operations and licenses and is fully compliant with
Mongolian law.
66
During
2017, preparatory work to convert the Khavtgai Uul exploration
license to a mining license was completed. The Company engaged a
contractor to prepare the required documents to convert the license
to a mining license under which the right to explore is permanent.
In 2017, as preparatory work to convert the Khavtgai Uul
exploration license to a mining license necessary laboratory
analysis work was done such as coal chemical, mineral and element
analysis of duplicates of coal samples taken as a result of
drilling work in past years as well as radiation analysis of coal
ash. A report describing the results of geological and exploration
work completed during 2017 was delivered to Geological division of
Mineral Resources and Petroleum Authority of Mongolia (the former
Mineral Resources Authority of Mongolia (MRAM)). Based on previous
years of work a report of the reserves of the licensed area was
prepared, and an official letter requesting an expert be appointed
were submitted to the Mineral Resources Professional Council in
January 2018.
During
2017 activities for the Chandgana Tal project included payment of
license fees and environmental sampling and reporting. No
exploration was completed on the Chandgana Tal licenses. The
Company assessed the local market for coal and found there was not
sufficient demand to warrant mining during the 2017-2018 heating
seasons. Thus, the annual mining and environmental plans were not
filed.
During
the year ended December 31, 2017, the Company determined there were
several indicators of potential impairment of the carrying value of
the Chandgana Project. The indicators of potential impairment were
as follows:
●
a decreased coal
demand from local customers;
●
no positive
decision from the Mongolian Government to construct the Chandgana
Power Plant;
●
no further
exploration for evaluation in the area planned; and
●
a change in the
Company's primary business focus to the Gibellini
Project.
As
result, in accordance with
IFRS 6,
Exploration for and Evaluation of Mineral Resources
and
IAS 36, Impairment of
Assets
, at December 31, 2017, the Company assessed the
recoverable amount of the Chandgana Project deferred exploration
costs and determined that its value in use is $Nil. As at December
31, 2017, the recoverable amount of $Nil resulted in an impairment
charge of $14,733,067 against the value of the deferred exploration
costs, which was reflected on the consolidated statement of
operations.
For the
Khavtgai Uul project, the Company intends to continue with work to
convert the license to a mining license and complete the
requirements to maintain the license. For the Chandgana Tal
project, the Company intends to discuss the need to update the
detailed environmental impact assessment and mining FS with the
relevant ministries and complete the requirements to maintain the
licenses.
I
TEM 4A. UNRESOLVED STAFF COMMENTS
Not
applicable.
I
TEM 5. OPERATING AND FINANCIAL REVIEW AND
PROSPECTS
The
following discussion of the financial condition, changes in
financial condition and results of operations of the Company should
be read in conjunction with our consolidated financial statements
and related notes included in this Annual Report. The discussion
contains forward-looking information (as previously defined) which
are subject to numerous risks and uncertainties, as more fully
described elsewhere in this Annual Report under the heading
"
Cautionary Note Regarding
Forward-Looking Statements
."
A.
Operating
Results
Year Ended December 31, 2019 compared with Year Ended December 31,
2018.
We
reported a net gain of $17.5 million ($0.17 gain per share) for the
year ended December 31, 2019, which represents a decreased loss of
$35.7 million when compared to the year 2018 ($0.23 loss per
share). The decrease in net loss was primarily due to an impairment
reversal of 13.7 million for Pulacayo property and a write-off the
Bolivian tax liability of $8 million in 2019 compared to impairment
charges of $18.2 million in 2018.
For the
year ended December 31, 2019, we incurred operating expenses of
$3,505,562 compared to $3,298,383 for 2018.
67
The
$207,179 increase in operating expenses when compared to the year
2018 was due to a few factors. Advertising and promotion expenses
increased by $322,952 due to increased promotion efforts in the
U.S. and Europe to raise market awareness and to raise equity
financing. We incurred higher marketing costs because the Company
is working with the financial community to make its projects known.
Investor relations remains a priority due to the ongoing need to
attract investment capital. Consulting and management fees
decreased by $4,058. General and administrative costs comprising
head office costs including salaries, directors' fees,
insurance and costs related to maintaining the Company's
exchange listings and complying with securities regulations.
General and administrative expenses decreased by $71,107 in the
year 2019 compared to the year 2018. Professional fees decreased by
$200,290, which was mainly due to reduced legal fees. Share-based
payments costs are non-cash charges which reflect the estimated
value of stock options granted. We use the fair value method of
accounting for stock options granted to directors, officers,
employees and consultants whereby the fair value of all stock
options granted is recorded as a charge to operations over the
period from the grant date to the vesting date of the option. The
fair value of common share options granted is estimated on the date
of grant using the Black-Scholes option pricing model. The increase
in share-based payments in 2019 by $154,372 compared to 2018 was
primarily related to the decrease in the number of options earned
during the year 2019 compared to the year 2018. Travel and
accommodation expenses slightly increased by $5,310. The Company
incurred additional travel expenses as it actively pursues the
Pulacayo and Gibellini projects moving toward production and seeks
financing.
For the
year ended December 31, 2019, we incurred other expenses classified
as "Other Items" amounting to a gain of $21,019,416
compared to a loss of $14,866,085 for the year 2018.
The
decrease in loss of Other Items by $35,905,501 in the year 2019
compared to the year 2018 is the net result of changes to a number
of the following items:
●
in the year 2019
costs in excess of recovered coal for Ulaan Ovoo increased by
$26,019 compared to the year 2018 due to increased activities at
Ulaan Ovoo coal mine in Mongolia ;
●
foreign exchange
loss increased by $30,540 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
boliviano and Mongolian tugrik;
●
in the year 2019,
the Company recorded an impairment recovery of $13,708,200 on its
Pulacayo and impairment charges of $51,828 and $16,304 on prepaid
expenses and receivables respectively.
In the
year 2018, the Company recorded a total of $13,994,970 impairment
charges on its Pulacayo property and Chandgana Coal property
incurred expenses, an impairment charge of $425,925 on Bolivian
mining equipment, and impairment charges of $26,234 and $21,004 on
prepaid expenses and receivables respectively.
●
in the year 2018,
the Company sold 2.7 million shares of a public company for a
realized loss of $91,890. In the year 2017, the Company sold of 2.2
million Lorraine Copper Corp. shares for a realized loss of
$22,810.
●
in the year 2019,
the Company recorded a write off Bolivian tax liabilities of
$7,952,700 due to the decision of the Supreme Court of Bolivia to
discharge the Company of the contentious tax claim.
Year Ended December 31, 2018 compared with Year Ended December 31,
2017.
We
reported a net loss of $18.2 million ($0.23 loss per share) for the
year ended December 31, 2018, which represents a decreased loss of
$0.4 million when compared to the same period in 2017 ($0.33 loss
per share). The decrease in net loss was primarily due to lesser
impairment charges of 14.5 million (2017 -$15.1 million) mostly
attributable to our non- core Bolivian property.
Our
annual operating expenses increased to $3.3 million in the fiscal
year 2018 compared to $2.4 million in the fiscal year
2017.
The
increase by $0.9 million in operating expenses during the fiscal
year 2018 compared to the fiscal year 2017 was a result of the
overall increased activity levels of the Company related to the
acquisition of vanadium properties in Nevada and equity financings.
Notably our advertising and promotion expenses increased by
$369,718 due to increased promotion efforts in the US and Europe to
raise market awareness and to raise equity financing. The Company
incurred higher marketing costs because the Company is working with
the financial community to make its project known. Investor
relations remains a priority due to the ongoing need to attract
investment capital.
Our
consulting and management fees decreased by $496,002 in the year
2018 compared to the year 2017. The Company significantly reduced
external consulting services used during the fiscal year 2017
related to acquiring the Gibellini Project and hiring Skanderbeg
Capital Advisors Inc. to explore and evaluate strategic
alternatives. The amount of this decrease was partially offset by a
higher amount of internal consulting expenses due to hiring a new
Vice-President, Exploration and restored the Company interim CEO
previously reduced fees.
Our
general and administrative costs comprising head office costs
including salaries, directors' fees, insurance and costs
related to maintaining the Company's exchange listings and
complying with securities regulations. General and administrative
expenses increased by $721,988 in the fiscal year 2018 compared to
the fiscal year 2017. The increase was the result of increased
salaries due to hiring a new President and CEO and restoring
salaries for officers of the Company, increased stock exchange and
shareholders' services due to increased financing
activities.
68
Our
professional fees increased by $233,972. The increase was mainly
due to increased legal, accounting and audit services related to
the Gibellini Project activities and the recently completed bought
deal financing.
Our
travel and accommodation expenses increased by $133,029. The
Company incurred additional travel expenses as it actively pursued
the Gibellini Project moving toward production. Additionally,
non-cash share-based expenses decreased in the fiscal year 2018 by
$45,687 compared to the fiscal year 2017 due to the decrease in the
number of options earned during the fiscal year 2018. The Company
uses the fair value method of accounting for stock options granted
to directors, officers, employees and consultants whereby the fair
value of all stock options granted is recorded as a charge to
operations over the period from the grant date to the vesting date
of the option. The fair value of common share options granted is
estimated on the date of grant using the Black-Scholes option
pricing model.
For the
year ended December 31, 2018, we incurred other expenses classified
as "Other Items" amounting to $14,886,085 compared to
$16,211,616 for the fiscal year 2017. The decrease by $1,325,531 in
the fiscal year 2018 is the net result of changes to a number of
the following items: costs in excess of recovered coal for Ulaan
Ovoo decreased by
$14,852 due to
changes at Ulaan Ovoo Property in Mongolia related to a lease
agreement with an arms-length private Mongolian company which plans
to perform mining operations at Ulaan Ovoo Property in the first
fiscal quarter 2019 with its own equipment and resources; foreign
exchange loss increased by $224,199 due to fluctuations in the
value of the Canadian dollar compared to the United States dollar,
Bolivian Boliviano and Mongolian Tugrik; we recorded a total of
$13,994,970 impairment charges on our non-core Pulacayo Property
and Chandgana Coal property incurred expenses, an impairment charge
of $425,925 on Bolivian mining equipment, and impairment charges of
$26,234 and $21,004 on prepaid expenses and receivables
respectively; we sold 2.7 million shares of a public company for a
realized gain of $91,890;we earned $50,000 from a debt settlement
with Nickel Creek Platinum Corp.
The
total assets decreased by $9.1 million from $18.4 million in the
year 2017 to $9.3 million in the year 2018. The decrease was mainly
due to a write-off the non-core Pulacayo Property and its mining
equipment. Current assets increased by $1 million from $4.5 million
in the year 2017 to $5.5 million in the year 2018. The increase was
mainly due to the
$5.2 million net
proceeds received from the bought deal financing in Q4
2018.
The
Company's total liabilities at December 31, 2018 were $10
million compared to $9.7 million at December 31, 2017. The increase
in liabilities was mainly due to a foreign exchange fluctuation of
Canadian Dollar against Bolivian Boliviano related to Bolivian tax
provision.
Year Ended December 31, 2017 compared with Year Ended December 31,
2016.
We
reported a net loss of $18.6 million ($0.33 loss per share) for the
fiscal year ended December 31, 2017, which represents an increased
loss of $16.6 million when compared to the same period in 2016
($0.05 loss per share). The increase in net loss was primarily due
to a $14.8 million write-off on our non-core Mongolian coal
properties.
Our
annual operating expenses increased to $2.4 million in the fiscal
year 2017 compared to $1.3 million in the fiscal year 2016. The $1
million increase was due to increased activities related to the
acquisition of vanadium properties in Nevada and equity financings.
Notably, our consulting and management fees increased by $0.5
million due to increased external consulting services related to
the acquisition of the Gibellini Project and the hiring of
Skanderbeg Capital Advisors Inc. to explore and evaluate strategic
alternatives to maximize value for our non-core assets.
Additionally, non-cash share-based payments expenses increased by
$401,228 due to a larger number of outstanding stock options
vesting during the fiscal year 2017 compared to the prior year.
Share-based payments represent the value assigned to the granting
of stock options under our share-based compensation plan using the
Black-Scholes model. During the year ended December 31, 2017, we
granted the equivalent of 4,080,000 stock options with a fair value
of $599,117 (2016 - $197,889) which is recognized over the vesting
period of the stock options. Our advertising and promotion expenses
increased by $50,000 due to increased activities to promote and
market the Company in order to raise equity financing, while
professional fees increased by $70,000 due to increased legal
expenses related to financing and mineral property acquisitions.
These increases were partially offset by a $30,000 reduction in
office and administrative expenses as a result of lower insurance
premiums, amortization costs and lower office lease expenses as a
result of the head office moving to a smaller commercial
space.
The
decrease in total assets to $18.4 million in the fiscal year 2017
from $27.8 million in the fiscal year 2016 was mainly due to the
$14.8 million write-off of the non-core Mongolian coal properties.
The increase in current assets to $4.5 million in the fiscal year
2017 from $0.5 million in the same period for 2016 was due to the
net equity proceeds raised in the fourth quarter of
2017.
Our
total liabilities at December 31, 2017 were $9.7 million compared
to $11 million at December 31, 2016. The decrease in liabilities
was mainly due to a repayment of the Credit Facility and trade
liabilities incurred at the end of the 2016 fiscal year and paid in
2017.
69
For the
year ended December 31, 2017, we incurred other expenses classified
as "Other Items" amounting to $16.2 million compared to
$0.7 million for the fiscal year ended 2016. The increase of $15.5
million is the net result of changes to a number of other items. Of
note are the following items:
●
costs in excess of
recovered coal for Ulaan Ovoo decreased by $181,549 due to keeping
operations at the Ulaan Ovoo Property on standby and reducing
general and administrative costs;
●
finance costs
decreased by $308,945 due to decreased draws from the Credit
Facility;
●
foreign exchange
loss increased by $194,649 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
Boliviano and Mongolian Tugrik;
●
in the year 2017,
we disposed of 2.2 million Lorraine Copper Corp. shares for
proceeds of $153,190 and a realized loss of $22,810. In the year
2016, we recorded a gain on the sale of Wellgreen Platinum Ltd.
shares released from trust of $59,698;
●
a decrease in
interest expenses by $237,574 was due to a decrease in the
outstanding balance of the Credit Facility;
●
in the fiscal year
2017, we recorded a loss on disbursement of office furniture and
equipment of $1,681 (2016 – $67,348);
●
in the fiscal year
2017, we recorded a loss on debt settlements of $752,742 to account
for the difference in the fair value of the shares on the
settlement date and the debt settled; and
●
in the year 2017,
we recorded an impairment charge of $14,829,267 on our non-core
Mongolian coal properties, an impairment charge of $57,420 on
prepaid expenses related to the impaired Mongolian properties, an
impairment charge of $159,666 on property and equipment, and an
impairment charge of $61,202 on receivables. In the comparable
period in 2016, we recorded a recovery on sale of our 60% interest
in the Okeover project, to Lorraine Copper Corp. of
$195,079.
The
operating losses are a reflection of the Company's status as
a non-revenue producing mineral exploration company. As the Company
has no main source of income, losses are expected to continue for
the foreseeable future.
B.
Liquidity
and Capital Resources
The
Company utilizes existing cash received from prior issuances of
equity instruments to provide liquidity to the Company and finance
exploration projects. The Company is of the opinion that its
working capital is sufficient for its present requirements. The
business of mineral exploration involves a high degree of risk and
there can be no assurance that the Company's current
operations, including exploration programs, will result in
profitable mining operations. The recoverability of the carrying
value of mineral properties, and property and equipment interests
and the Company's continued on going existence is dependent
upon the preservation of its interest in the underlying properties,
the discovery of economically recoverable reserves, the achievement
of profitable operations, the ability of the Company to raise
additional sources of funding, and/or, alternatively, upon the
Company's ability to dispose of some or all of its interests
on an advantageous basis. Additionally, the current capital markets
and general economic conditions are significant obstacles to
raising the required funds. These conditions may cast significant
doubt upon the Company's ability to continue as a going
concern.
Given
that COVID-19 may result in a widespread health crisis that could
adversely affect the economies and financial markets of many
countries, there is the possibility of an economic downturn which
may affect our ability to access or raise capital through the
issuance of our equity securities as and when needed for business
operations.
Year Ended December 31, 2019 compared with Year Ended December 31,
2018
At
December 31, 2019, we had cash flow of $3 million representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company's working capital at December 31, 2019, was
$0.95 million compared to working capital of $3.8 million at
December 31, 2018.
During
the year ended December 31, 2019, cash used in operating activities
was $2,675,513 compared to $2,626,687 cash used during the prior
year. The increased outflows in 2019 primarily related to increased
activities of the Company to develop the Pulacayo Project and the
Gibellini Project.
The
year over year increase in cash used by operating activities is due
to increased funds required for working capital changes. The
Company has increased its efforts in managing operating costs in
advance of cash flows from operations but will require financing in
the near term to fund operations.
70
During
the year ended December 31, 2019, we used $6,236,965 in investing
activities (2018 – $3,628,762). We used $113,564 (2018 -
$120,416) on purchase of property and equipment, $6,123,401 (2018 -
$1,398,207) on mineral property expenditures.
During
the year ended December 31, 2019, a total of $6,626,085 was
provided by financing activities including net proceeds from the
Company's common share issuances of $6,237,791, an additional
$174,250 from exercise of stock options, and $250,572 from the
exercise of warrants to purchase common shares of the Company. We
spent $36,528 for lease payments.
Year Ended December 31, 2018 compared with Year Ended December 31,
2017
At
December 31, 2018, we had cash flow of $5.3 million representing an
increase of $1.2 million from $4.1 million held at December 31,
2017. The Company's working capital at December 31, 2018, was
a surplus of $3.8 million compared to working capital of $2.6
million at December 31, 2017.
During
the year ended December 31, 2018, cash used in operating activities
was $2,626,687 compared to $707,231 cash used in the prior year.
The increased outflows in 2018 primarily related to increased
activities of the Company to develop the Gibellini Project. The
year over year increase in cash used by operating activities is due
to increased funds required for working capital
changes.
During
the year ended December 31, 2018, we used $3,628,762 in investing
activities (2017 – $1,988,566). The Company received net
proceeds of $101,550 from selling its marketable securities, used
$120,416 (2017 – $515,609) on purchase of property and
equipment, $425,605 (2017 – $58,790) on the acquisition of
the Gibellini Project, and $3,184,294 (2017 – $1,339,417) on
mineral properties expenditures.
During
the year ended December 31, 2018, a total of $7,458,938 was
provided by financing activities including net proceeds of
$6,096,621 – from the Company's share issuances,
$24,150 from exercise of stock options, and $1,338,167 from the
exercise of warrants to purchase common shares of the
Company.
Year Ended December 31, 2017 compared with Year Ended December 31,
2016
At
December 31, 2017, we had a cash balance of $4,100,608 representing
an increase of $4,078,960 from $21,648 held at December 31, 2016.
Our cash balance at December 31, 2015, was $33,542. Our working
capital at December 31, 2017, was $2.6 million compared to a
working capital deficit of $3.2 million at December 31, 2016, and a
deficit of $3.9 million at December 31, 2015. The $5.8 million
increase in our working capital since the year ended December 31,
2016, is attributable to the increase in current assets as a result
of cash raised from equity financing and decrease in current
liabilities. We believe we have sufficient cash resources to meet
our short-term financial liabilities and our planned exploration
expenditures on our vanadium and silver projects for the
foreseeable future, for, but not limited to, the next 12
months.
During
the year ended December 31, 2017, we used $1,988,566 in investing
activities (2016 – $606,372, 2015 – provided
$1,170,566). We spent $34,500 investing in a guaranteed investment
certificate ("GIC"), $58,790 on the acquisition of the
Gibellini Project, and $1,339,417 (2016 – $712,901) on
mineral properties expenditures. In 2017, we spent $193,440 and
received $153,190 (2016 – $59,698) from the purchase and sale
of available-for-sale investments, respectively.
A total
of $6,774,757 was provided by financing activities during the year
ended December 31, 2017 (2016 – $1,048,078, 2015 –
$1,057,941). We fully repaid and closed out the Credit Facility by
making cash payments totaling $364,142 and issuing the equivalent
of 3,000,000 shares of the Company to John Lee in satisfaction of
$900,000 worth of indebtedness owed by us to Mr. Lee's
personal holding company, Linx, under the Credit Facility. Funds
borrowed under the Credit Facility in the year 2017 were $163,405
(2016 – $341,116). During the year ended December 31, 2017,
we received net proceeds of $6,864,809 (2016 – $952,929) from
issuing units pursuant to private placements, $50,685 (2016 –
$Nil) from exercise of stock options, and $60,000 (2016 –
$Nil) from exercise of share purchase warrants.
We have
sufficient financial resources to keep our landholdings in good
standing through, at least, the next 12 months. As an exploration
stage company, we have no regular cash in- flow from operations,
and the level of operations is principally a function of
availability of capital resources. Our capital resources are
largely determined by the strength of the junior resource markets
and by the status of our projects in relation to these markets, and
our ability to compete for investor support of our projects. To
date, the principal sources of funding have been equity and debt
financing. Many factors influence our ability to raise funds, and
there is no assurance that we will be successful in obtaining
adequate financing and at favorable terms for these or other
purposes including general working capital purposes. Our
consolidated financial statements have been prepared on a going
concern basis which assumes that we will be able to realize our
assets and discharge our liabilities in the normal course of
business for the foreseeable future. Our ability to continue as a
going concern is dependent upon the continued support from our
shareholders, the discovery of economically recoverable reserves,
and our ability to obtain the financing necessary to complete
development and achieve profitable operations in the future. The
outcome of these matters cannot be predicted at this
time.
71
Financial Instruments
All
financial assets are initially recorded at fair value and
designated upon inception into one of the following four
categories: held
‐
to
‐
maturity, marketable
securities, loans and receivables or at fair value though profit
and loss ("FVTPL"). FVTPL comprises derivatives and
financial assets acquired principally for the purpose of selling or
repurchasing in the near term. They are carried at fair value with
changes in fair value recognized in profit or loss. The
Company's cash is classified as FVTPL.
Marketable
securities instruments are measured at fair value with changes in
fair value recognized in other comprehensive income. Where a
decline in the fair value of marketable securities constitutes
objective evidence of impairment, the amount of the loss is removed
from accumulated other comprehensive income and recognized in
profit or loss. The Company's investments are classified as
marketable securities. Marketable securities consist of investment
in common shares of public companies and therefore have no fixed
maturity date or coupon rate. The fair value of the listed
marketable securities has been determined directly by reference to
published price quotation in an active market.
All
financial assets except those measured at fair value through profit
or loss are subject to review for impairment at least at each
reporting date. Financial assets are impaired when there is
objective evidence of impairment as a result of one or more events
that have occurred after initial recognition of the asset and that
event has an impact on the estimated future cash flows of the
financial asset or the group of financial assets.
Transactions costs
associated with FVTPL financial assets are expensed as incurred,
while transaction costs associated with all other financial assets
are included in the initial carrying amount of the
asset.
The
Company assesses at each reporting date whether there is objective
evidence that a financial asset or a group of financial assets is
impaired. An evaluation is made as to whether a decline in fair
value is significant or prolonged based on an analysis of
indicators such as market price of the investment and significant
adverse changes in the technological, market, economic or legal
environment in which the investee operates.
If a
financial asset is impaired, an amount equal to the difference
between its carrying value and its current fair value is
transferred from Accumulated Other Comprehensive Income (Loss)and
recognized in the consolidated statement of operations. Reversals
of impairment charges in respect of equity instruments classified
as available-for-sale are not recognized in the consolidated
statement of operations.
The
Company considers that the carrying amount of all its financial
assets and financial liabilities measure at amortized cost
approximates their fair value due to their short term nature.
Restricted cash equivalents approximate fair value due to the
nature of the instrument. The Company does not offset financial
assets with financial liabilities.
2019
At
December 31, 2019, our financial assets and financial liabilities
were categorized as follows: FVTPL – cash and cash
equivalents of $3,017,704, amortized cost – receivables of
$246,671, restricted cash equivalents of $34,500, accounts payable
and accrued liabilities of $2,420,392.
2018
At
December 31, 2018, our financial assets and financial liabilities
were categorized as follows: FVTPL – cash and cash
equivalents of $5,304,097, amortized cost – receivables of
$36,399, restricted cash equivalents of $34,500,accounts payable
and accrued liabilities of $1,636,786
and
lease liability of $52,818.
As of
December 31, 2018, the Company holds nil shares (December 31, 2017
– 1,409,000) of a public company. During the year ended
December 31, 2018, the Company disbursed all its marketable
securities for proceeds of $101,550 and a realized loss of $91,890.
Following the disposal of the shares, the Company reclassified the
cumulative income previously recognized in other comprehensive
income of $68,840 to profit and loss on the sale of marketable
securities.
72
2017
At
December 31, 2017, our financial assets and financial liabilities
were categorized as follows: FVTPL – cash and cash
equivalents of $4,100,608; loan and receivables – receivables
of $34,653 and restricted cash equivalents of $34,500; and other
financial liabilities – accounts payable and accrued
liabilities of $1,895,983.
Commitments
Our
subsidiary, ASC, controls the mining rights to the Pulacayo Project
through a joint venture agreement entered into between itself and
the Pulacayo Ltda. Mining Cooperative on July 30, 2002 (the
"ASC Joint Venture"). The ASC Joint Venture has a term
of 23 years which commenced the day the ASC Joint Venture was
entered into. Pursuant to the ASC Joint Venture, ASC is committed
to pay monthly rent of USD$1,000 to the state-owned Mining
Corporation of Bolivia, COMIBOL and USD$1,500 monthly rent to the
Pulacayo Ltd. Mining Cooperative until the Pulacayo Project starts
commercial production
Under
the terms of the lease agreement through which we acquired the
Gibellini Project, we are required to make annually, on each
anniversary of the execution date of the agreement, advance royalty
payments which will be tied, based on an agreed formula (not to
exceed USD$120,000 per year), to the average vanadium pentoxide
price of the prior year. Further, upon commencement of production,
we will maintain our acquisition by paying to the Lessors, a 2.5%
NSR until a total of USD$3 million is paid. Thereafter, the NSR
will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as "production royalty
payments"). Under the terms of the lease agreement, all
advance royalty payments made, will be deducted as credits against
future production royalty payments. The Gibellini Project lease is
for a term of 10 years but can be extended for an additional 10
years at our option.
Under
the terms of the lease agreement through which we acquired the
Louie Hill Project in Nevada, we are required to pay, annually, on
each anniversary of the execution date of the agreement, advance
royalty payments which will be tied, based on an agreed formula
(not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year. Further, upon commencement of
production, we will maintain our acquisition by paying to the Louie
Hill Lessor, a 2.5% NSR of which, 1.5% of the NSR may be purchased
at any time by us for USD$1 million leaving the total NSR to be
reduced to 1% over the remaining life of the mine (and referred to
thereafter, as "production royalty payments"). Under
the terms of the lease agreement, all advance royalty payments
made, will be deducted as credits against future production royalty
payments. The Louie Hill Project lease is for a term of 10 years
but can be extended for an additional 10 years at our
option.
As part
of the transaction with Apogee, we agreed to assume within certain
limitations all liabilities associated with the Apogee Subsidiaries
and the Pulacayo Project.
During
Apogee's financial year ended June 30, 2014, it received
notice from the Servicio de Impuestos Nacionales, the national tax
authority in Bolivia, that ASC Bolivia LDC Sucursal Bolivia, now
the Company's wholly-owned subsidiary, owed approximately
Bs42,000,000 in taxes, interest and penalties relating to a
historical tax liability in an amount originally assessed at
approximately $7,600,000 in 2004, prior to Apogee acquiring the
subsidiary in 2011.
Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.  The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority's assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court that
among other things, declared null and void the previous Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.
On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary as not
proven.
The
Resolution is final and binding. Hence neither the Company nor the
Company's Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.
During
the year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.
During
the year ended December 31, 2014, the Company's wholly-owned
subsidiary, Red Hill Mongolia LLC ("Red Hill") was
issued a letter from the Sukhbaatar District Tax Division notifying
it of the results of the Sukhbaatar District Tax Division's
VAT inspection of Red Hill's 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill's claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division's findings as the tax assessment appeared to the
Company to be unfounded.  The Company disputed the Sukhbaatar
District Tax Division's assessment and submitted a complaint
to the Capital City Tax Tribunal.  On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill's VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.
73
Due
to the uncertainty of realizing the VAT balance, the Company
recorded an impairment charge for the full VAT balance in the year
ended December 31, 2015.
In
June 2019, the Company received a
positive resolution issued from the
Capital City Tax
Tribunal,
which is binding and final,
affirmed Red Hill's outstanding VAT credit of 1.169 billion
MNT resulted from past mining equipment purchases. The VAT credit
can be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia's Ministry of Finance within 12 to 24 months
processing time. Due to the credit risk associated with the VAT
credit, the Company has provided a full valuation provision against
the balance.
C.
Research
and Development, Patents and Licenses, etc.
None.
D.
Trend
Information
While
the Company is an exploration company that does not have any
producing mines, it is directly affected by trends in the metal
industry. At the present time global metal prices are extremely
volatile. Base metal prices, driven by rising global demand,
climbed dramatically and approached near historic highs several
years ago. Prices have declined significantly since those highs,
other than in the case of vanadium, which has risen
significantly.
Overall
market prices for securities in the mineral resource sector and
factors affecting such prices, including base metal prices,
political trends in the countries in which such companies operate,
and general economic conditions, may have an effect on the terms on
which financing is available to the Company, if available at
all.
Additionally, any
outbreaks of contagious diseases and other adverse public health
developments in countries where we operate could have a material
and adverse effect on our business, financial condition and results
of operations. For example, the recent outbreak of COVID-19 first
identified in Wuhan, Hubei Province, China, has resulted in
significant restrictive measures being implemented by governments
of affected countries to control the spread of COVID-19. Such
COVID-19 related restrictions and disruptions, including for
employees, manufacturers, suppliers and customers across different
industries, may negatively impact our business operations and
therefore our operational results and financial condition. In
addition, COVID-19 may result in a widespread health crisis that
could adversely affect the economies and financial markets of many
countries, resulting in an economic downturn that could affect our
ability to access or raise capital through issuances of our
securities as and when needed for business operations.
Except
as disclosed, the Company does not know of any trends, demand,
commitments, events or uncertainties that will result in, or that
are reasonably likely to result in, its liquidity either materially
increasing or decreasing at present or in the foreseeable future.
Material increases or decreases in liquidity are substantially
determined by the success or failure of the Company's
exploration programs.
The
Company's financial assets and liabilities generally consist
of cash and cash equivalents, receivables, deposits, accounts
payable and accrued liabilities, some of which are denominated in
foreign currencies including Canadian dollars, United States
dollars, Mongolian Tugriks and Bolivian Bolivianos. The Company is
at risk to financial gain or loss as a result of foreign exchange
movements against the Canadian dollar. The Company does not
currently have major commitments to acquire assets in foreign
currencies, but historically it has incurred the majority of its
exploration costs in foreign currencies. The Company currently does
not and also does not expect to engage in currency hedging to
offset any risk of currency fluctuations.
E.
Off-Balance
Sheet Arrangements
None.
F.
Tabular
Disclosure of Contractual Obligations
The
Company has the following financial obligations in the ordinary
course of business:
Payments
due by period
Contractual
Obligations
Total
Less than 1 year
1-3 years
3-5 years
More than 5 years
Long-term
debt
$Nil
$Nil
$Nil
$Nil
$Nil
Capital
(finance) lease obligations
$Nil
$Nil
$Nil
$Nil
$Nil
Operating
lease obligations
$79,603
$45,489
$34,114
$Nil
$Nil
Purchase
obligations
$Nil
$Nil
$Nil
$Nil
$Nil
Other
long-term liabilities
$Nil
$Nil
$Nil
$Nil
$Nil
Loan
$Nil
$Nil
$Nil
$Nil
$Nil
Total
$79,603
$45,489
$34,114
$Nil
$Nil
G.
Safe
Harbor
The
Company seeks safe harbor for our forward-looking statements
contained in Items 5.E and F. See the heading "Cautionary Note
Regarding Forward-Looking Statements" above.
I
TEM 6.  DIRECTORS, SENIOR MANAGEMENT AND
EMPLOYEES
A.
Directors
and Senior Management
The
following are the names and ages of our directors and senior
management of the Company as of December 31, 2019 and March 30,
2020, with their positions and offices with the Company and
corresponding start dates, and their principal occupations during
the last five years. There are no family relationships between any
of the persons named below. There are no arrangements or
understandings with any major shareholders, customers, suppliers or
other parties pursuant to which any person named below was selected
as a director or executive officer. Mr. Lee, the Company's
Executive Chairman and Director was not selected as a Director of
the Company in connection with the consulting agreement dated
February 28, 2019 entered between the Company and Linx (a
wholly-owned subsidiary of Mr. Lee).
75
Name
and Age
Current Office Held
with the Company
Current director and/or
Executive Office Since
Principal
Occupation During Last Five Years (3)
John
Lee (5)
Age:
46
Executive
Chairman
Non-Independent
Director
January
1, 2013
October
21, 2009
Present
:
President of Mau Capital Management
LLC (private investor relations firm) from July 2004 to present;
and Executive Chairman and a Director of
the Company
from January 2013 to
present.
Former
:
Chairman of
the Company
. from June 2011 to January
2013; Interim President from June 2011 to October 2018; Interim CEO
of
the Company
from November
2012 to October 2018; Head of Internal Affairs of
the Company
from October 2018 to February
2019; and Interim President and Interim Chief Executive Officer of
the Company
from February 2019
to April 2019.
Michael
Doolin
Age:
58
Interim
Chief Executive Officer
Chief
Operating Officer
April
1, 2019
April
1, 2019
Present:
Interim,
Chief Financial Officer and Chief Operating Officer of
the Company
from April 1, 2019 to
present.
Former:
Chief
Operating Officer of
Klondex Mines Unlimited
Liability (Formerly "
Klondex Mines Ltd
.") from March
2016 to July 20, 2018; Vice President, Business Development and
Technical Services of Klondex Mines Ltd. November 2012 to March
2016; Esmeralda Mill Manager at Great Basin Gold Ltd. from April
2010 to November 2013.
Greg
Hall (1)(2)
Age:
62
Independent
Director
October
21, 2009
Present:
Director of
the Company
from October 21,
2009 to present; President of Water Street Inc. from September 2013
to present; Advisor to Market One Media Group Inc. from 2013 to
present.
Former:
Director of
Fidelity Minerals Corp. from September 23, 2016 to December 4,
2018; and Director of Intertainment Media Inc. from January 19,
2011 to May 29, 2015.
Marc
Leduc (1)(2)
Age:
58
Independent
Director
July
22, 2019
Present:
Independent
Director of
the Company
from
July 22, 2019 to present; Chief Operating Officer of KORE Mining
Ltd. from October 29, 2019 to present; Director of South Star
Mining Corp. from March 25, 2019 to present.
Former:
President,
Chief Executive and a Director of Luna Gold Corp. from January 30,
2015 to August 14, 2016; and Director of Rupert Resources Ltd. from
April 10, 2013 to December 7, 2016.
Masa
Igata, (1)(2)
Age:
59
Independent
Director
April
23, 2014
Present:
Director of the Company
from April 23, 2014 to present; Founder and Chef Executive
Officer of Frontier LLC (Mongolia) from March 2007 to
present and Founder and Chief Executive Officer of Frontier Japan
from January 2015 to present.
77
Ronald
Clayton
Age:
61
Independent
Director
November
4, 2019
Present:
Independent
Director of
the Company
from
November 4, 2019 to present; President, Chief Executive Officer and
a Director of
1911 Gold Corporation
(formerly Havilah Mining Corporation) from November 26, 2018 to
present; and a Director of Gold Standard Ventures Corp. from
January 30, 2018 to present.
Former:
President,
Chief Executive Officer and a Director of Tahoe Resources Inc. from
May 25, 2010 to June 15, 2018.
Ronald
Espell
Age:
59
Vice-President,
Environment
and Sustainability
October
29, 2018
Present:
Vice-President, Environment and Sustainability of
the Company
from November 2018 to
present.
Former:
VP
Environment of American Vanadium Corp. from April 2012 to April,
2015; Principal Consultant of SRK Consulting from April, 2015 to
April, 2016; Corporate Environmental Director of McEwen Mining Inc.
from April, 2016 to November, 2017.
Danniel
Oosterman
Age:
47
Vice-President,
Exploration
February
20, 2018
Present:
Vice-President, Exploration of
the
Company
from February 2018 to present.
Former:
President
& CEO of Canstar Resources Inc. from March 2013 to December
2017.
Joaquin
Merino-Marquez
Age:
52
Vice-President,
South American
Operation
November 1, 2019
Present:
Vice-President, South American Operations of
the Company
from November 1, 2019 to
present; President and a Director of Emerita Resources Corp.
(
Formerly "Emerita Gold
Corp.")
from January 11, 2013 to present.
Irina
Plavutska
Age:
62
Chief
Financial Officer
September
11, 2013
Present:
Chief
Financial Officer of
the
Company
from September 13, 2013 to present.
Former:
Controller
at
the Company
from November
2012 to September 9, 2013; Interim CFO of
the Company
from August 2011 to November
2012; and Controller of
the
Company
from August 2010 to August 2011.
Notes:
(1)
Member of the Audit
Committee.
(2)
Member of the
Corporate Governance and Compensation Committee.
(3)
The information as
to principal occupation, business or employment is not within the
knowledge of our management and has been furnished by the
respective individuals. Each director or officer has held the same
or similar principal occupation with the organization indicated or
a predecessor thereof for the last five years.
During
the year ended December 31, 2019 the Company experienced various
changes in Directors, Officers and Management of the Company as
follows:
●
Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;
●
Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;
●
Louis Dionne ceased
to be a Director on February 28, 2019;
●
Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;
●
Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;
●
John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;
●
Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;
●
Marc Leduc was
appointed as a Director on July 22, 2019;
●
Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;
●
Ronald Clayton was
appointed as a Director on November 4, 2019;
●
Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;
●
Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and
●
Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019.
79
Biographical
Information of Directors and Senior Management
The
following are brief biographies of our directors and senior
management as of December 31, 2019:
John Lee
is the Executive Chairman has been
a Director of the Company since October 2009. Mr. Lee has been an
accredited investor in the resource industry since 2001. Under
John's leadership, the Company raised over $110 million and
grew from having minimal assets to owning substantial assets in
USA, Bolivia and Mongolia. Mr. Lee is a CFA charter holder and has
degrees in economics and engineering from Rice University. Since
joining the Company Mr. Lee has led the Company in making several
timely project acquisitions and has also identified, negotiated and
financed Pulacayo Project acquisition in 2015 and the Gibellini
Project acquisition in 2017.
Michael Doolin
was appointed as Interim Chief
Executive Office replacing Gerald Panneton on April 1, 2019. Mr.
Doolin was also appointed Chief Operating Officer of the Company on
April 1, 2019. Mr. Doolin is a mining professional with over 30
years of operational and management experience in Nevada with an
emphasis on planning and budgeting. Mr. Doolin manages the
Company's worldwide operations while collaborating with
Prophecy's executive chairman John Lee on investor marketing,
fundraising and the Company's overall strategic direction.
Prior to joining the Company, Mr. Doolin was Chief Operating
Officer at Klondex Mines Ltd. ("Klondex") a mid-tier
precious metals mining company with over 200,000 oz. annual gold
production prior to its takeover by Hecla Mining Company for US$462
million in July 2018. From 2012 to 2018, Mr. Doolin was an integral
part of Klondex management team that upgraded Klondex to major NYSE
American listing, grew the staff count to over 250, and raised over
US$200 million in equity to develop Klondex's Fire Creek,
Hollister and Midas, gold and silver mines located in Nevada from
permitting to construction to commissioning stages and then further
expansion. At Klondex, Mr. Doolin's team obtained an
Environmental Assessment for the Fire Creek Mine in nine months
from the Battle Mountain BLM office who are overseeing
Prophecy's current Gibellini permitting, which is the
Company's top priority.
Greg
Hall
has been an
Independent Director of the Company since October 2009. Mr. Hall is
a self-employed businessman with over 25 years' experience as
a broker, senior executive officer and founder of several
successful Vancouver-based brokerage firms. For over 25 years, Mr.
Hall has focused on significant international exploration,
development, and mining ventures, and all aspects of their
structuring and finance. Mr. Hall previously served as a director
of Silvercorp Metals Inc. (NYSE: SVM, TSX: SVM), China's
largest primary silver producer and the lowest cost silver producer
among its industry peers. Mr. Hall's previous positions
include: Director at Haywood Securities Inc.; Vice-President,
Canaccord Capital Corporation; and Senior Vice-President of Leede
Financial Markets Inc. Mr. Hall is a graduate of the Rotman School
of Management, University of Toronto, SME Enterprise Board Program,
and a Member of the Institute of Corporate Directors.
Masa
Igata
has been
an Independent Director of the Company since April 2014.
Mr. Masa Igata, Founder & CEO of
Frontier LLC and Frontier Japan, has more than 30 years of
professional experience in Asian financial markets. Prior to
establishing Frontier Securities(Later renamed as Frontier LLC) in
2007, he had been a Managing Director at Salomon
Brother/Citigroup/Nikko Citigroup in Tokyo leading the company to
be the most profitable foreign investment bank in Japan for more
than the decade. After leaving the firm in 2004, Mr. Igata became
interested in Mongolia's fast-growing economy, and began to
develop close relationships with many Mongolian businesses since
then. Mr. Igata has since invested in Mining, Finance and real
estate sector in Japan, Mongolia, Canada and China through his own
companies in each region. In addition, with proven expertise on
cross-border capital raising, Mr. Igata has been actively promoting
Mongolian investment opportunities to foreign investors and
advocating capital market's best practices in Mongolia to
ensure and enhance its access to foreign investors through a full
range of financial services, corporate access and research. In
addition, he has extensively advised the Government of Mongolia,
several government agencies and major corporate in Mongolia on fund
raising, corporate governance and value enhancement. In Japan, Mr.
Igata has been advising to major mining companies on corporate
governance, investor relations and the outlook on the global mining
sector. Hosting Invest Mongolia Tokyo is one of the service to
facilitate himself and Japanese investors to access to the
Government and the Business in Mongolia. In addition, Mr. Igata has
been actively advising to Japanese Government and Government
related agencies on the various issues on the global mining
industry. Mr. Igata is a certified member of the Securities Analyst
Association of Japan and an Advisory Member of the Board at
Business Council of Mongolia (BCM).
Mr. Igata was conferred
a decoration of
Nairamdal
(Friendship) from President of Mongolia Tsakhiagiin Elbegdorj on
June 2017.
Marc Leduc
has been
an Independent Director of the Company since July 2019. Mr. Leduc
is a mining engineer and geologist
with more than 30 years' experience involving all aspects of
the development, operations, planning and evaluation of mining
projects. Mr. Leduc holds a B.Sc. (Hons) degree in Mining
Engineering from Queen's University Kingston, and B.Sc.
degree in Geology from the University of Ottawa, and he is a
registered professional engineer in both Ontario and BC. Mr. Leduc
has led technical teams in the design and construction of large
mines, heap leach and tailings facilities. Mr. Leduc has held top
management positions with several mining companies including most
recently Chief Operating Officer and Interim CEO of NewCastle Gold
Ltd before it was acquired in 2017 via merger with Trek Mining Inc.
and Anfield Gold Corp. (now named Equinox Gold Corp.). Mr. Leduc,
following the merger, remained with Equinox Gold for all of 2018
and into 2019 holding the position of Senior Vice President of US
Operations. Mr. Leduc currently holds the position of COO with Kore
Mining and is an independent director of South Star Mining. Mr.
Leduc spent several years working in Peru as the President and COO
for Bear Creek Mining Corp, a silver exploration and development
company.
Ronald Clayton
has
been an Independent Director of the Company since November 4, 2019.
Mr. Clayton is a seasoned executive
with over 40 years of mine operating experience. He was the CEO of
Tahoe Resources and led the successful construction and operation
of Tahoe's flagship Escobal silver mine, which at its peak
(2015 to 2017) produced over 20 million ounces of silver annually.
Tahoe was acquired by Pan American Silver Corp for US$1.07 billion
in February 2019. Prior to his 8-year tenure at Tahoe, Mr. Clayton
was senior vice president for operations and general manager of
several underground mines for Hecla Mining Company. Mr. Clayton
earned a Bachelor of Science degree in mining engineering from the
Colorado School of Mines and is a graduate of the Tuck School of
Business Executive Program at Dartmouth
College.
80
Irina
Plavutska
has
been with the Company since 2010 and was appointed Chief Financial
Officer in April 2011. Ms. Plavutska is a professional accountant
with over 20 years of international experience in financial
reporting, auditing, and accounting. Ms. Plavutska is a member of
Chartered Professional Accountants Canada.
Ronald Espell
was
appointed Vice President, Environment and Sustainability in October
2018. Mr. Espell is a highly regarded specialist in U.S. federal
and Nevada state mine permitting, with over 30 years of experience
in corporate environmental management, permitting in conformance
with applicable regulatory and performance standards, mine waste
management, reclamation, and closure planning. Prior to joining the
Company, Mr. Espell was the corporate environmental director of
McEwen Mining Inc. Within 18 months from the time he joined McEwen
Mining, Mr. Espell led his team to successfully obtain the Gold Bar
project's environmental impact statement (EIS) approval from
the BLM in November 2017. Prior to his time with McEwen Mining, Mr.
Espell was a principal consultant at SRK Consulting and
Vice-President of Environment for the Gibellini Project's
prior operator, where he led efforts in the preparation of
Gibellini's baseline studies and plan of operation. Mr.
Espell's wealth of experience includes being an environmental
management specialist at the Nevada Division of Environmental
Protection, as well as working for 17 years in positions of
increasing responsibility at Barrick Gold Corp., from being
Environmental Superintendent, Environmental Manager of Barrick
Goldstrike, Regional Environmental Director — Australia
Pacific, and Corporate Environmental Director.
Danniel
Oosterman
was
appointed Vice-President, Exploration in February 2018. Mr.
Oosterman worked for 20 years in the mining and exploration
business specializing in exploration and development of projects
from grass roots, brown field, to feasibility stage. Mr.
Oosterman's background includes occupying both technical and
executive roles, with an early career joining exploration efforts
for mining companies such as Falconbridge Ltd. and Inco Limited
before transitioning to the junior mining sector to manage many
technical projects across Canada before advancing to President and
CEO of Canstar Resources Inc., a TSX Venture Exchange-listed
company. He holds a B.Sc. (Hons) degree in Geology from Laurentian
University and is a member of the Association of Professional
Geoscientists of Ontario. Mr. Oosterman is closely involved in
development of the Company's Gibellini Project and
exploration of its Bolivian project. Mr. Oosterman is a
"qualified person" within the meaning of NI
43–101.
Joaquin
Merino-Marquez
was appointed
Vice-President, South American Operations in November 2019. Based
in Bolivia, Mr. Merino-Marquez is a professional geologist with 27
years of experience in the mining industry. Mr. Merino-Marquez is
currently the President and a Director of Emerita Resources Corp.
(
Formerly
"Emerita Gold Corp.")
since January 11, 2013. Prior industry
affiliations include roles as vice-president of exploration for
Primero Mining Corp. and vice-president of exploration for Apogee
Minerals Ltd. Prior to Apogee, Mr. Merino-Marquez was the
exploration manager for Placer Dome at the Porgera mine and a mine
geologist at Hecla Mining's La Camorra mine. Mr.
Merino-Marquez is a native Spanish speaker and fluent in English.
He holds a Master of Science from Queens University and a Bachelor
of Science in geology from University of Seville (Spain). He is a
member of the Association of Professional Geoscientists of Ontario.
From 2006 to 2010, Mr. Merino-Marquez lived in Bolivia and led
Apogee's 85,000-metre drill campaign at Pulacayo and Paca
silver projects. The drill campaign was a success and defined over
90 million ounces of silver resources according to independent,
third party estimates (which are now considered historic in nature
and should not be relied up on as they are no longer National
Instrument 43-101 compliant).
B.
Compensation
Executive Officers
For the
purposes of this Annual Report, "executive officer" of
the Company means an individual who at any time during the year was
the Chief Executive Officer ("CEO"), President or Chief
Financial Officer ("CFO") of the Company; any
Vice-President in charge of a principal business unit, division or
function; and any individual who performed a policy-making function
in respect of the Company.
Set out
below are particulars of compensation paid to the following persons
(the "Named Executive Officers" or "NEOs")
for the fiscal year ended December 31, 2019:
1.
the
CEO;
2.
the
CFO;
3.
each of the three
most highly compensated executive officers, or the three most
highly compensated individuals acting in a similar capacity, other
than the CEO and CFO, at the end of the most recently completed
financial year whose total compensation was, individually, more
than C$150,000 for that financial year; and
4.
any individual who
would be a NEO under paragraph (3) but for the fact that the
individual was neither an executive officer of the Company, nor
acting in a similar capacity, at the end of that financial
year.
81
The
Company has no pension, defined contribution, or deferred
compensation plans for its directors, executive officers or
employees.
Non-equity
incentive
plan
compensation
($)
Name
and Position
Salary
(1)
($)
Share
based
awards
(2)
($)
Option-based
awards
(3)
($)
Annual
incentive
plans
Long-term
incentive
plans
All
other
compensation
($)
Total
compensation
($)
John Lee
(1)(2)
Executive Chairman
& Director
Nil
320,000
21,908
(6)
Nil
Nil
377,370
719,278
Michael Doolin
(1)(2)(4)
CEO, COO &
Director
298,469
265,000
74,387
(7)
Nil
Nil
10,672
648,528
Irina Plavutska
(2)
CFO
143,152
40,000
7,303
(8)
Nil
Nil
6,370
196,825
Ronald Espell
(2)
VP, Environment and
Sustainability
331,674
60,000
7,303
(9)
Nil
Nil
29,548
428,525
Michael Drozd
(5)
Former VP, Operations
322,942
Nil
3,188
(10)
Nil
Nil
41,038
367,168
Notes:
(1)
John Lee and
Michael Doolin ("Mr. Doolin") do not receive
compensation for acting as a Director of the Company.
(2)
After the year end,
the Company issued bonus common shares with a fair value of $0.40
per Share to executive officers under the Share- Based Compensation
Plan.
(3)
The stock options
issued, included and described under these Option-based awards were
granted to executive officers under the Share- Based Compensation
Plan. Stock options granted on July 29, 2019 to John Lee, Irina
Plavutska and Ronald Espell were not valued at December 31, 2019
due to the following: further to the voluntary forfeiture of share
options with expire dates on April 7, 202, June 22, 2020, and
November 14, 2023, at exercise prices ranging from $0.50 to $0.65,
the Company granted 794, 000 new stock options with an expire date
of July 29, 2024 at an exercise price of $0.20 per share. As at
December 31, 2019, the re-issuing of these options had been
approved by the TSX, but they had not been approved by the
shareholders; consequently, these options were no
valued.
(4)
Mr. Doolin was
appointed Chief Executive Officer and Chief Operating Officer on
April 1, 2019. The
Company issued 500,000
sign-on bonus Shares with a fair value of $0.23 per share to Mr.
Doolin.
(5)
Michael Drozd was
appointed Vice-President, Operations on August 16, 2018, and ceased
to be Vice–President, Operations effective November 7,
2019.
(6)
300,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.
(7)
The equivalent of
500,000 and 300,000 stock options, exercisable at the equivalent of
$0.21 and $0.44, respectively, and expiring on April 1, 2024 and
November 1, 2024, respectively.
(8)
100,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.
(9)
100,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.
(10)
100,000 stock
options exercisable at $0.20 and expiring on July 29,
2024.
82
Directors
Independent
directors are paid varying amounts depending on the degree to which
they are active on behalf of the Company. See the table below for
amounts paid or accrued in fiscal year 2019.
The
compensation provided to directors who were not an executive
officer for the Company's most recently completed financial
year of December 31, 2019, are as follows:
Name
Fees
Earned ($)
Share-Based
Awards
($)
4)
Option-Based
Awards
($)
(5)
Non-equity
Incentive
Plan
Compensation (4)
Pension
Value
(4)
All
other
Compensation
($)
Total
($)
Greg
Hall
21,400
6,000
5,842
(6)
Nil
Nil
Nil
33,242
Masa
Igata
19,600
6,000
5,842
(7)
Nil
Nil
Nil
31,442
Marc Leduc
(1)
4,962
6,000
13,401
(8)
Nil
Nil
20,443
38,806
Ronald Clayton
(2)
2,600
6,000
14,606
(9)
Nil
Nil
Nil
23,206
Louis Dionne
(3)
3,600
Nil
Nil
Nil
Nil
Nil
3,600
Notes:
(1)
Marc Leduc was
appointed as a Director of the Company on July 22,
2019.
(2)
Ronald Clayton was
appointed as a Director of the Company on November 4,
2019.
(3)
Louis Dionne ceased
to be a Director on February 28, 2019.
(4)
After the year end,
the Company issued bonus Shares with a fair value of $0.40 per
Share to directors under the Share-Based Compensation
Plan.
(5)
The stock options
issued, included and described under these Option-based awards were
granted to executive officers under the Share-Based Compensation
Plan. Stock options granted on July 29, 2019 to Messrs. Greg Hall
and Masa Igata were not valued at December 31, 2019, due to the
following: further to the voluntary forfeiture of share options
with expire dates on April 7, 2020, June 22, 2020, and November 14,
2023, at exercise prices ranging from $0.50 to $0.65, the Company
granted 794, 000 new stock options with an expire date of July 29,
2024, at an exercise price of $0.20 per share. As at December 31,
2019, the re-issuing of these options had been approved by the TSX,
but they had not been approved by the shareholders; consequently,
these options were not valued.
(6)
80,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.
(7)
80,000 stock
options exercisable at $0.20 and expiring on November 1,
2024.
(8)
The equivalent of
150,000 and 80,000 stock options, exercisable at the equivalent of
$0.20 and $0.44, respectively, and expiring on July 29, 2024 and
November 1, 2024, respectively.
(9)
200,000 stock
options exercisable at $0.44 and expiring on November 1,
2024.
Description
of Compensation Plan
We have
adopted the Share-Based Compensation Plan. The purpose of the
Share-Based Compensation Plan is to allow us to grant options,
bonus shares and stock appreciation rights (the
"Awards") to directors, officers, employees and
consultants, as additional compensation, and as an opportunity to
participate in our success. The granting of Awards is intended to
align the interests of such persons with that of our
shareholders.
Options
are exercisable for up to 10 years from the date of grant or as
determined by the corporate governance and compensation committee
of our Board (the "CGCC") and are required to have
exercise prices equal to or greater than the market price (as
defined by the stock exchange on which our shares are principally
listed for trading and based on the volume weighted average trading
price of our shares as reported on such exchange for the five
trading days immediately preceding the day that the options are
granted). Options granted under the Share-Based Compensation Plan
vest at 12.5% per quarter over a two-year period unless determined
otherwise by the CGCC. In addition, the CGCC may accelerate the
vesting date, permit the conditional exercise of options, amend or
modify the terms of the options, or terminate options.
Pursuant to the
Share-Based Compensation Plan, the CGCC may from time to time
authorize the issuance of Awards to directors, officers, employees
and consultants of the Company or employees of companies providing
management or consulting services to the Company. The maximum
number of common shares which may be reserved for issuance under
the Share-Based Compensation Plan is 14,374,419, which was approved
at the Company's AGM held September 12, 2019.
83
C.
Board
Practices Overview
Our
Board has a formal mandate as outlined in our Corporate Governance
Policies and Procedures Manual, as amended (the
"Manual"). The Manual mandates the Board to: (i)
oversee management of the Company, (ii) exercise business judgment,
(iii) understand the Company and its business, (iv) establish
effective systems, (v) protect confidentiality and proprietary
information, and (vi) prepare for and attend Board, committee and
shareholder meetings. The Manual also includes written charters for
each committee and it contains a Code of Ethics, policies dealing
with issuance of news releases and disclosure documents, as well as
share trading black-out periods. Further, in the Manual, the Board
encourages but does not require continuing education for all the
Company's directors.
Term
of Office
Unless
the director's office is vacated earlier in accordance with
the provisions of the BCBCA, each of our current directors will
hold office until the conclusion of the next annual meeting of the
Company's shareholders or if no director is then elected,
until a successor is elected.
John
Lee, our Executive Chairman, will hold his office for an indefinite
period until the termination of our consulting agreement dated
February 20, 2018 with his wholly-owned company, Linx. Our
consulting agreement with Linx may be terminated without cause by
either party upon 90 days' written notice, or immediately by
us for cause.
Michael
Doolin, our Chief Executive Officer and Chief Operating Officer,
will hold his respective offices for an indefinite period until the
termination of our employment agreement dated March 5, 2019. Our
employment agreement with Mr. Doolin may be terminated by us
without cause upon the amount of written notice required by the
British Columbia Employment Standards Act based on each
employee's respective length of service, or immediately for
cause. Mr. Doolin may terminate his employment with us upon thirty
(30) days' written notice.
Irina
Plavutska, our Chief Financial Officer, will hold her respective
offices for an indefinite period until the termination of our
employment agreement dated February 1, 2018. Our employment
agreement with Ms. Plavutska may be terminated by us without cause
upon the amount of written notice required by the British Columbia
Employment Standards Act based on each employee's respective
length of service, or immediately for cause. Ms. Plavutska may
terminate her employment with us upon two weeks' written
notice.
Ronald
Espell, our Vice-President, Environment and Sustainability, will
hold his office for an indefinite period until the termination of
our subsidiary Nevada Vanadium's employment agreement with
him dated October 23, 2018. Nevada Vanadium's employment
agreement with Mr. Espell may be terminated by Nevada Vanadium
without cause upon 30 days' written notice and payment of a
severance amount equal to 6 months' salary during the first
three years that Mr. Espell is employed, or one month's
salary for each full year that Mr. Espell is employed after three
years, by Nevada Vanadium, or immediately for cause. Mr. Espell may
terminate his employment with Nevada Vanadium upon 30 days'
written notice.
Danniel
Oosterman, our Vice-President, Exploration, will hold his office
for an indefinite period on a month-to-month basis until the
termination of our consulting agreement dated February 12, 2018.
Our consulting agreement with Mr. Oosterman may be terminated by us
or by Mr. Oosterman upon thirty days' written
notice.
Joaquin Merino-Marquez, our Vice-President, South
American Operation, will hold his office
for an indefinite
period on a month-to-month basis until the termination of our
consulting agreement dated November 1, 2019. Our consulting
agreement with Mr.
Merino-Marquez
may be terminated by us or
by Mr.
Merino-Marquez
upon
sixty days' written notice.
The
period during which each of our directors and executive officers
has held their respective office is specified in the table set
forth in "
Item 6.A.
Directors, Senior Management and Employees - Directors and Senior
Management
."
Termination
and Change of Control Benefits
Other
than as set out below, there are no contracts, agreements, plans or
arrangements that provide for payments to a NEO following or in
connection with any termination (whether voluntary, involuntary or
constructive), resignation, retirement, change of control of the
Company or change in responsibilities of the NEO.
84
John Lee, Executive Chairman
On
January 1, 2010, the Company entered into a consulting agreement
with a holding company solely owned by Mr. Lee, at an annual fee of
$16,000 (as amended). On November 6, 2012 this agreement was
terminated and on November 7, 2012 a new consulting agreement was
entered into (which we refer to as the "Mau
Agreement"). On April 7, 2015, the Mau Agreement was
terminated, and the Company entered into an agreement with Linx
that subsequently, on October 9, 2018, was replaced with another
agreement with Linx (which we refer to as the "New Link
Agreement") for an indefinite term. The New Linx Agreement
provides for: (1) consulting fees, with up to $36,600 per year
annual increases during fiscal years 2020 to 2022, at the
discretion of the Board of Directors; (2) bonus, based on
pre-determined criteria; (3) up to 3,000,000 common shares upon
meeting certain milestone targets described in the New Linx
Agreement; (4) stock options; (5) health and dental benefits; and
(6) vacation pay. The New Linx Agreement may be terminated by the
Company for any reason other than for cause upon 90 days'
written notice with the Company having the option of paying the
consulting fees due under the New Linx Agreement for that 90-day
period in lieu thereof. In such case, provided the Company
successfully raises through one or more equity financing(s)
undertaken after the commencement of the New Linx Agreement: (a)
total gross aggregate proceeds of less than $25,000,000, the
Company will pay a termination payment of $1,000,000; or (b) total
gross aggregate proceeds of more than $25,000,000, the Company will
pay a termination payment of $1,600,000. The New Linx Agreement
with the Company also provides that in the event the New Linx
Agreement is terminated as a result of, or within six months
following, a significant change in the affairs of the Company such
as a take-over bid, change of control of the Board, the sale,
exchange or other disposition of a majority of the outstanding
common shares, the merger or amalgamation or other corporate
restructuring of the Company in a transaction or series of
transactions in which the Company's shareholders receive less
than 51% of outstanding common shares of the new or continuing
company (we refer to such significant change as a "Change of
Control"), Mr. Lee shall receive from the Company within 30
days, a payment equivalent to two years' worth of his regular
annual consulting fees (currently $336,000). In the event Mr.
Lee's consulting agreement is terminated as a result of a
Change in Control, all of his rights to any stock options he holds
shall be governed by the provisions of his stock option agreements
with the Company.
Michael Doolin, Chief Executive Office and Chief Operating
Officer
Mr.
Doolin entered into an employment agreement with the Company on
March 5, 2019 and a Change of Control agreement dated March 5,
2019. The employment agreement had an effective date of April 1,
2019 and is for an indefinite term and provides for: (1) salary;
(2) bonus, at the discretion of the Company; (3) stock options; (4)
employee benefits; and (5) vacation pay. In the event Mr.
Doolin's employment agreement is terminated as a result of a
Change in Control, all of his rights to any stock options he holds
shall be governed by the provisions of his stock option agreements
with the Company. Mr. Doolin's Change of Control agreement
provides that in the event his employment is terminated as a result
of, or within six months following, a Change in Control, Mr. Doolin
shall receive from the Company within 30 days, a payment equal to
two years of his regular annual salary.
Irina Plavutska, Chief Financial Officer
Ms.
Plavutska entered into her latest employment agreement with the
Company effective February 1, 2018, as amended January 31, 2019.
The employment agreement is for an indefinite term and provides
for: (1) salary; (2) bonus, at the discretion of the Company; (3)
stock options; (4) employee benefits; and (5) vacation pay. Her
employment agreement with the Company also provides that in the
event her employment is terminated as a result of, or within six
months following, a Change in Control, Ms. Plavutska shall receive
from the Company within 30 days, a payment equal to two years of
her regular annual salary (currently $132,000). In the event Ms.
Plavutska's employment agreement is terminated as a result of
a Change in Control, all of her rights to any stock options she
holds shall be governed by the provisions of her stock option
agreements with the Company.
The
criteria used to determine the amounts payable to the NEOs is based
on industry standards and the Company's financial
circumstances. The agreements with the NEOs and subsequent changes
were accepted by the Board based on recommendations of the
CGCC.
Board
Committees
Applicable
regulatory governance policies require that: (i) committees of the
our board of directors be composed of at least a majority of
independent directors; (ii) our Board expressly assume
responsibility, or assign to a committee of the Board,
responsibility for the development of the Company's approach
to governance issues; (iii) the audit committee of the Board (the
"Audit Committee") be composed only of independent
directors, and the role of the Audit Committee be specifically
defined and include the responsibility for overseeing
management's system of internal controls; (iv) the Audit
Committee have direct access to the Company's external
auditor; and (v) the Board appoint a committee, composed of a
majority of independent directors, with the responsibility for
proposing new nominees to the Board and for assessing directors on
an on-going basis.
Audit
Committee
We have
an Audit Committee comprised of directors Greg Hall (Chair), Masa
Igata and Marc Leduc. All members of the Audit Committee are
financially literate within the meaning of
National Instrument 52-110 Audit
Committees
. Messrs. Hall, Igata and Leduc are not
independent under the criteria established by SEC Rule 10A-3. The
relevant education and experience of each member of the Audit
Committee is described under "
Item 6.A. Directors, Senior Management and
Employees - Directors and Senior Management
" above.
The terms of reference of the Audit Committee are given in the
charter of the Audit Committee, which is available on the
Company's website.
85
Corporate
Governance and Compensation Committee
The
Board has a CGCC (as previously defined) whose functions include
reviewing, on an annual basis, the compensation paid to the
Company's executive officers and directors, reviewing the
performance of the Company's executive officers, and making
recommendations on compensation to the Board. The CGCC periodically
considers the grant of incentive Awards under the Share-Based
Compensation Plan. The CGCC currently consists of Greg Hall
(Chairman), Masa Igata and Marc Leduc. All members have direct
experience relevant to their responsibilities on the CGCC. The
Board has not made a determination on whether Messrs. Hall, Igata
and Leduc meet the independence requirements for members of the
compensation committee established under NYSE American Company
Guide Section 805(c)(1).
D.
Employees
As of
December 31, 2019, we had three employees in Canada, ten employees
in Mongolia, and four non-independent consultants working in
Bolivia, Canada and the United States.
As of
December 31, 2018, we had four employees in Canada, seven employees
in Mongolia, and four non-independent consultants working in
Bolivia, Canada and the United States.
As of
December 31, 2017, we had three employees in Canada, fourteen
employees in Mongolia, and seven non-independent consultants
working in Bolivia, Canada and the United States.
We rely
on and engage consultants on a contract basis to assist us to carry
on our administrative and exploration activities.
86
E.
Share
Ownership
The
following table sets forth certain information as of March 30, 2020
regarding the beneficial ownership of our common shares by the
executive officers and directors named herein. The percentage of
common shares beneficially owned is computed on the basis of
122,900,508 common shares outstanding as of March 30,
2020.
Name
and Title
Common
Shares
Held
Percentage
of Common
Shares
as at
March
30, 2020
Stock
Options
Granted
Exercise
Price of Stock Options ($)
Date
of Expiration (Stock Options)
John Lee, Executive
Chairman
9,733,211
(1)
7.9
%
500,000
0.20
2-Jun-21
300,000
0.49
12-Jan-22
550,000
0.33
12-Jun-22
680,000
0.35
1-Sep-22
400,000
0.28
6-Apr-23
350,000
0.33
17-Oct-23
700,000
0.20
29-Jul-24
300,000
0.44
1-Nov-24
Michael Doolin,
Interim CEO & COO
1,525,000
1
%
500,000
0.21
1-Apr-24
300,000
0.44
1-Nov-24
Greg Hall,
Director
238,092
*
120,000
0.20
2-Jun-21
50,000
0.49
12-Jan-22
50,000
0.33
12-Jun-22
50,000
0.35
1-Sep-22
40,000
0.28
6-Apr-23
50,000
0.33
17-Oct-23
120,000
0.20
29-Jul-24
80,000
0.44
1-Nov-24
Marc Leduc,
Director
23,585
*
150,000
0.20
29-Jul-24
80,000
0.44
1-Nov-24
Masa Igata,
Director
1,138,928
(2)
1
%
120,000
0.20
2-Jun-21
70,000
0.49
12-Jan-22
50,000
0.33
12-Jun-22
50,000
0.35
1-Sep-22
40,000
0.28
6-Apr-23
50,000
0.33
17-Oct-23
100,000
0.20
29-Jul-24
80,000
0.44
1-Nov-24
Ronald Clayton,
Director
15,000
*
200,000
0.44
1-Nov-24
Ronald Espell,
Vice-President,
Environment and
Sustainability
150,000
*
200,000
0.20
29-Jul-24
100,000
0.44
1-Nov-24
Danniel Oosterman ,
Vice-President, Exploration
100,000
*
200,000
0.31
20-Feb-23
20,000
0.28
6-Apr-23
50,000
0.33
17-Oct-23
100,000
0.20
29-Jul-24
100,000
0.44
1-Nov-24
Joaquin
Merino-Marquez, Vice-President,
South
American Operations
10,000
*
200,000
0.44
1-Nov-24
Irina Plavutska,
Chief Financial Officer
100,000
*
70,000
0.49
12-Jan-22
100,000
0.35
1-Sep-22
37,500
0.28
6-Apr-23
50,000
0.33
17-Oct-23
100,000
0.20
29-Jul-24
100,000
0.44
1-Nov-24
Louis Dionne,
(Former) Director (3)
0
0
N/A
N/A
Michael Drozd,
(Former) VP, Operations (4)
0
0
N/A
N/A
TOTAL
12,749,506
10.37
%
7,557,500
87
Notes:
(*)
Indicates less than
1%.
(1)
The equivalent of
10,448,901 a total of 284,310 common shares are held by Merit
Holdings Ltd., a private company wholly owned and controlled by Mr.
Lee.
(2)
The Common Shares
and Stock Option grants are held by Sophir Asia Limited, a private
company wholly owned and controlled by Mr. Igata.
(3)
Louis Dionne ceased
to be a Director on February 28, 2019.
(4)
Michael Drozd was
appointed Vice-President, Operations on August 16, 2018 and ceased
to be Vice -President of the Company effective November 7,
2019.
See
"
Description of Compensation
Plan
" for more details.
I
TEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS
A.
Major
Shareholders
There
are no entities who, to our knowledge, own beneficially, directly
or indirectly, more than 5% of any class of our voting securities
(other than as set forth in the directors' and
officers' table).
John
Lee's share ownership was reduced from 14.2% on March 29,
2019 to 7.9%, on March 18, 2020.
Voting Rights
The
Company's major shareholders do not have different voting
rights from our other shareholders.
Record Holders
As at
March 27, 2020, there were 261 holders of record of our common
shares, of which 77 were U.S. residents owning 2,234,727 (1.81%) of
our outstanding common shares outstanding at that
time.
Control
The
Company is a publicly owned Canadian corporation, the shares of
which are owned by Canadian residents, U.S. residents, and
residents of other countries.
Change in Control
To the
best of the Company's knowledge, there are no arrangements
the operation of which may result in a change in control of the
Company.
88
B.
Related
Party Transactions
The
related party transactions of the Company since January 1, 2017 are
presented below.
●
Linx Partners Ltd.,
a private company controlled by John Lee, our interim President,
interim CEO and a director of the Company, has provided management
and consulting services to the Company since April 7, 2015 (prior
to that, from June 13, 2011, Mr. Lee's management and
consulting services were provided to the Company though Mau Capital
Management LLC, another private company controlled by Mr. Lee)..
During the year ended December 31, 2019, we paid $371,000 (2018 -
$401,044; 2017 - $363,781) for management and consulting services
rendered to the Company by Linx Partners Ltd. Linx Partners Ltd.
provided a revolving credit facility for a maximum principal amount
of $2.5 million, with a two-year term at a simple interest rate of
18% per annum. The Company fully paid the amount owing under the
credit facility and subsequently terminated the same on November
28, 2017.
●
MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, a director of the
Company, provides consulting services to the Company.
During the year ended December 31, 2019 we paid
$21,400 (2018 - $21,200; 2017 - $23,600) for consulting services
rendered to the Company by MaKevCo Consulting
Inc.
Sophir
Asia Ltd., a private company controlled by Masa Igata, a director
of the Company, provides consulting services to the
Company.
During the year
ended December 31, 2019, we paid $19,600 (2018 - $19,100; 2017 -
$19,700) for consulting services rendered to the Company by Sophir
Asia Ltd. A summary of related party transactions
by related party
and a summary of the
transactions
by nature
among the related parties is as follows:
Year
Ended
December
31, 2019
Year
Ended
December
31, 2018
Year
Ended
December
31, 2017
Directors and
officers
$
1,685,242
$
1,265,152
$
307,425
Linx Partners
Ltd.
371,000
401,044
363,781
MaKevCo Consulting
Inc.
21,400
21,200
23,600
Sophir Asia
Ltd.
19,600
19,100
19,700
TOTAL
$
2,097,242
$
1,706,496
$
714,506
Year
Ended
December
31, 2019
Year
Ended
December
31, 2018
Year
Ended
December
31, 2017
Consulting and
management fees
$
218,500
$
268,456
$
247,525
Directors'
fees
103,805
70,378
60,600
Mineral
properties
1,171,585
631,610
201,875
Salaries
603,352
736,052
204,506
TOTAL
$
2,097,242
$
1,706,496
$
714,506
As at
December 31, 2019, amounts due to related parties were $30,533
(December 31, 2018 - $4,634, (December 31, 2017 –
$160,503).
C.
Interests
of Experts and Counsel
Not
applicable.
89
I
TEM 8.  FINANCIAL INFORMATION
A.
Consolidated
Statements and Other Financial Information
Consolidated Financial Statements
The
consolidated financial statements of the Company and the report of
the independent registered public accounting firm, Davidson &
Company LLP, are filed as part of this Annual Report under Item
18.
Legal or Arbitration Proceedings
Other
than as disclosed below, the Company has not been involved in any
legal or arbitration proceedings or regulatory actions which may
have, or have had in the recent past, significant effects on the
company's financial position or profitability. The Company
accrues for liabilities when it is probable and the amount can be
reasonably estimated.
ASC
Tax Claim
On
January 2, 2015, the Company acquired ASC Holdings Limited and ASC
Bolivia LDC (which together, hold ASC Bolivia LDC Sucursal Bolivia,
which in turn, held Apogee Silver Ltd.'s
("Apogee") joint venture interest in the Pulacayo
Project) and Apogee Minerals Bolivia S.A. Pursuant to the terms of
the Agreement, the Company agreed to assume all liabilities of
these former Apogee subsidiaries, including legal and tax
liabilities associated with the Pulacayo Project.  During
Apogee's financial year ended June 30, 2014, it received
notice from the Servicio de Impuestos Nacionales, the national tax
authority in Bolivia, that ASC Bolivia LDC Sucursal Bolivia, now
the Company's wholly-owned subsidiary, owed approximately
Bs42,000,000 in taxes, interest and penalties relating to a
historical tax liability in an amount originally assessed at
approximately $7,600,000 in 2004, prior to Apogee acquiring the
subsidiary in 2011.
Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.  The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority's assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court that
among other things, declared null and void the previous Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.
On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary as not
proven.
The
Resolution is final and binding. Hence neither the Company nor the
Company's Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.
During
the year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.
Red
Hill Tax Claim
During
the year ended December 31, 2014, the Company's wholly-owned
subsidiary, Red Hill Mongolia LLC ("Red Hill") was
issued a letter from the Sukhbaatar District Tax Division notifying
it of the results of the Sukhbaatar District Tax Division's
VAT inspection of Red Hill's 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill's claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division's findings as the tax assessment appeared to the
Company to be unfounded.  The Company disputed the Sukhbaatar
District Tax Division's assessment and submitted a complaint
to the Capital City Tax Tribunal.  On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill's VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.
90
Due to
the uncertainty of realizing the VAT balance, the Company has
recorded an impairment charge for the full VAT balance in the year
ended December 31, 2015.
In
June 2019, the Company received a
positive resolution issued from the
Capital City Tax
Tribunal,
which is binding and final,
affirmed Red Hill's outstanding VAT credit of 1.169 billion
MNT resulted from past mining equipment purchases. The VAT credit
can be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia's Ministry of Finance within 12 to 24 months
processing time.
Due to the credit risk associated with the
VAT credit, the Company has provided a full valuation provision
against the balance.
Dividend Policy
To
date, we have not paid any dividends on our outstanding common
shares and it is not contemplated that we will pay any dividends in
the immediate or foreseeable future. It is our intention to use all
available cash flow to finance further operations and exploration
of our resource properties. Holders of our common shares will be
entitled to receive dividends, if, as and when declared by the
Board out of profits, capital or otherwise.
There
are no restrictions that could prevent us from paying dividends on
our common shares except that we may not pay dividends if that
payment would render us insolvent.
B.
Significant
Changes
Not
applicable.
None.
I
TEM 9. THE OFFER AND LISTING
A.
Offer
and Listing Details
The
Company's common shares trades on the TSX under the symbol
"ELEF", the OTCQX under the symbol "SILEF"
and the Frankfurt Stock Exchange under the symbol
"1P2N".
B.
Plan
of Distribution
Not
applicable.
C.
Markets
Our
common shares are listed for trading on the TSX, the OTCQX, and the
Frankfurt Stock Exchange. Our common shares were voluntarily
delisted from the OTCQX on January 29, 2016 and began trading again
on the OTCQX on February 27, 2018. The following tables set forth
the reported high and low prices on the TSX for the five most
recent fiscal years.
YEAR
TSX
(CDN$)
HIGH
TSX
(CDN$)
LOW
December 31,
2019
0.49
0.15
December 31,
2018
4.35
0.105
December 31,
2017
6.19
2.78
December 31,
2016
4.61
0.015
December 31,
2015
0.075
0.02
91
D.
Selling
Shareholders
Not
applicable.
E.
Dilution
Not
applicable.
F.
Expenses
of the Issue
Not
applicable.
I
TEM 10.  ADDITIONAL INFORMATION
A.
Share
Capital
Not
Applicable.
B.
Memorandum
and Articles of Association
Incorporation
We are
amalgamated under the British Columbia Business Corporations Act
(BCBCA). Our British Columbia incorporation number is
BC0912924.
Objects and Purposes of Our Company
Our
articles do not contain a description of our objects and
purposes.
Voting on Proposals. Arrangements, Contracts or Compensation by
Directors
Other
than as disclosed below, our articles do not restrict directors'
power to (a) vote on a proposal, arrangement or contract in which
the directors are materially interested or (b) to vote compensation
to themselves or any other members of their body in the absence of
an independent quorum.
The
BCBCA does, however, contain restrictions in this regard. The BCBCA
provides that a director who holds a disclosable interest in a
contract or transaction into which we have entered or proposes to
enter is not entitled to vote on any directors' resolution to
approve that contract or transaction, unless all the directors have
a disclosable interest in that contract or transaction, in which
case any or all of those directors may vote on such resolution. A
director who holds a disclosable interest in a contract or
transaction into which we have entered or proposes to enter and who
is present at the meeting of directors at which the contract or
transaction is considered for approval may be counted in the quorum
at the meeting whether or not the director votes on any or all of
the resolutions considered at the meeting. A director or senior
officer generally holds a disclosable interest in a contract or
transaction if (a) the contract or transaction is material to our
company; (b) we have entered, or proposed to enter, into the
contract or transaction, and (c) either (i) the director or senior
officer has a material interest in the contract or transaction or
(ii) the director or senior officer is a director or senior officer
of, or has a material interest in, a person who has a material
interest in the contract or transaction. A director or senior
officer does not hold a disclosable interest in a contract or
transaction merely because the contract or transaction relates to
the remuneration of the director or senior officer in that person's
capacity as director, officer, employee or agent of our company or
of an affiliate of our company.
92
Borrowing Powers of Directors
Our
articles provide that we, if authorized by our directors,
may:
●
borrow
money in the manner and amount, on the security, from the sources
and on the terms and conditions that they consider
appropriate;
●
issue
bonds, debentures and other debt obligations either outright or as
security for any liability or obligation of our company or any
other person and at such discounts or premiums and on such other
terms as they consider appropriate;
●
guarantee the
repayment of money by any other person or the performance of any
obligation of any other person; and
●
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 our
company.
Qualifications of Directors
Under
our articles, a director is not required to hold a share in the
capital of the Company as qualification for his or her office but
must be qualified as required by the BCBCA to become, act or
continue to act as a director. Our articles contain no provisions
regarding retirement or non-retirement of directors under an age
limit requirement.
Share Rights
The
holders of our common shares are entitled to vote at all meetings
of shareholders of the Company, to receive dividends if, as and
when declared by the Board and to participate ratably in any
distribution of property or assets upon the liquidation, winding-up
or other dissolution of the Company. Our common shares carry no
pre-emptive rights, conversion or exchange rights, redemption,
retraction, repurchase, sinking fund or purchase fund provisions.
There are no provisions requiring the holders of our common shares
to contribute additional capital and there are no restrictions on
the issuance of additional securities by the Company. There are no
restrictions on the repurchase or redemption of the Company's
common shares by the Company except to the extent that any such
repurchase or redemption would render the Company insolvent
pursuant to the BCBCA.
Procedures to Change the Rights of Shareholders
Our
articles state that subject to Article 9.2 of the BCBCA, the
Company may by ordinary resolution of its shareholders: (a) create
one or more classes or series of shares or, if none of the shares
of a class or series of shares are allotted or issued, eliminate
that class or series of shares; (b) increase, reduce or eliminate
the maximum number of shares that the Company is authorized to
issue out of any class or series of shares or establish a maximum
number of shares that the Company is authorized to issue out of any
class or series of shares for which no maximum is established; (c)
subdivide or consolidate all or any of its unissued, or fully paid
issued shares; (d) if the Company is authorized to issue shares of
a class of shares with par value: (i) decrease the par value of
those shares, or (ii) if none of the shares of that class of shares
are allotted or issued, increase the par value of those shares);
(e) change all or any of its unissued or fully paid issued shares
with par value into shares without par value or all or any of its
unissued shares without par value into shares with par value; (f)
alter the identifying name of any of its shares; or (g) otherwise
alter its shares or authorized share structure when required or
permitted to do so by the BCBCA.
Meetings
Each
director holds office until our next annual general meeting or
until his office is earlier vacated in accordance with our articles
or with the provisions of the BCBCA. A director appointed or
elected to fill a vacancy on our board also holds office until our
next annual general meeting.
Our
articles and the BCBCA provide that our annual meetings of
shareholders must be held at least once in each calendar year and
not more than 15 months after the last annual general meeting at
such time and place as our Board may determine. Our directors may,
at any time, call a meeting of our shareholders.
Under
the BCBCA, the holders of not less than five percent of our issued
shares that carry the right to vote at a meeting may requisition
our directors to call a meeting of shareholders for the purposes of
transacting any business that may be transacted at a general
meeting.
93
Under
our articles, the quorum for the transaction of business at a
meeting of our shareholders is two persons who are, present in
person or represent by proxy, shareholders holding, in the
aggregate, at least five percent of the issued shares entitled to
be voted at the meeting.
Our
articles state that in addition to those persons who are entitled
to vote at a meeting of our shareholders, the only other persons
entitled to be present at the meeting are the directors, the
president (if any), the secretary (if any), the assistant secretary
(if any), the auditor for our company, and any other persons
invited by our directors but if any of those persons does attend a
meeting of shareholders, that 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.
Limitations on Ownership of Securities
Neither
Canadian law nor our articles limit the right of a non-resident to
hold or vote common shares of the Company, other than as provided
in the Investment Canada Act (the "Investment Act"), as
amended by the World Trade Organization Agreement Implementation
Act (the "WTOA Act"). The Investment Act generally
prohibits implementation of a direct reviewable investment by an
individual, government or agency thereof, corporation, partnership,
trust or joint venture that is not a "Canadian," as
defined in the Investment Act (a "non-Canadian"),
unless, after review, the minister responsible for the Investment
Act is satisfied that the investment is likely to be of net benefit
to Canada. An investment in the common shares of the company by a
non-Canadian (other than a "WTO Investor," as defined
below) would be reviewable under the Investment Act if it were an
investment to acquire direct control of the company, and the value
of the assets of the company were $5.0 million or more (provided
that immediately prior to the implementation of the investment the
Company was not controlled by WTO Investors). An investment in
common shares of the Company by a WTO Investor (or by a
non-Canadian other than a WTO Investor if, immediately prior to the
implementation of the investment the Company was controlled by WTO
Investors) would be reviewable under the Investment Act if it were
an investment to acquire direct control of the company and the
value of the assets of the Company equaled or exceeded an amount
determined by the Minister of Finance (Canada) (the
"Minister") on an annual basis. The current threshold
for review for WTO Investors or vendors (other than Canadians) is
$1 billion. A non-Canadian, whether a WTO Investor or otherwise,
would be deemed to acquire control of the company for purposes of
the Investment Act if he or she acquired a majority of the common
shares of the company. The acquisition of less than a majority, but
at least one-third of the shares, would be presumed to be an
acquisition of control of the company, unless it could be
established that the company is not controlled in fact by the
acquirer through the ownership of the shares. In general, an
individual is a WTO Investor if he or she is a
"national" of a country (other than Canada) that is a
member of the World Trade Organization ("WTO Member")
or has a right of permanent residence in a WTO Member. A
corporation or other entity will be a "WTO Investor" if
it is a "WTO Investor-controlled entity," pursuant to
detailed rules set out in the Investment Act. The U.S. is a WTO
Member. Certain transactions involving our common shares would be
exempt from the Investment Act, including:
●
an
acquisition of the shares if the acquisition were made in the
ordinary course of that person's business as a trader or
dealer in securities;
●
an
acquisition of control of the Company in connection with the
realization of a security interest granted for a loan or other
financial assistance and not for any purpose related to the
provisions of the Investment Act; and
●
an
acquisition of control of the Company by reason of an amalgamation,
merger, consolidation or corporate reorganization, following which
the ultimate direct or indirect control in fact of the Company,
through the ownership of voting interests, remains
unchanged.
Change in Control
There
are no provisions in our articles or in the BCBCA that would have
the effect of delaying, deferring or preventing a change in control
of our company, and that would operate only with respect to a
merger, acquisition or corporate restructuring involving our
Company or our subsidiaries.
Ownership Threshold
Our
articles or the BCBCA do not contain any provisions governing the
ownership threshold above which shareholder ownership must be
disclosed. Securities legislation in Canada, however, requires that
we disclose in our information circular for our annual general
meeting, holders who beneficially own more than 10% of our issued
and outstanding shares. Most state corporation statutes do not
contain provisions governing the threshold above which shareholder
ownership must be disclosed. Upon the effectiveness of this
Registration Statement, we expect that the United States federal
securities laws will require us to disclose, in our annual report
on Form 20-F, holders who own 5% or more of our issued and
outstanding shares.
94
C.
Material
Contracts
●
the Amendment to
the Mineral Lease Agreement dated April 19, 2018 between the
Company and Janelle Dietrich, concerning the lease by the Company
of those mining claims which constitute the Gibellini group of
claims; and
●
the Pulacayo Mining
Production Contract dated September 30, 2019, between the Company
and the Corporación Minera de Bolivia, a branch of the
Bolivian Mining Ministry.
D.
Exchange
Controls
There
are no governmental laws, decrees, regulations or other
legislation, including foreign exchange controls, in Canada which
may affect the export or import of capital or that may affect the
remittance of dividends, interest or other payments to non-resident
holders of the Company's securities. Any remittances of
dividends to United States residents, however, are subject to a
withholding tax pursuant to the Income Tax Act (Canada) and the
Canada-U.S. Income Tax Convention (1980) (the
"Convention"), each as amended. Remittances of interest
to U.S. residents entitled to the benefits of such Convention are
generally not subject to withholding taxes except in limited
circumstances involving participating interest payments. Certain
other types of remittances, such as royalties paid to U.S.
residents, may be subject to a withholding tax depending on all of
the circumstances.
E.
Taxation
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, without limitation,
specific tax consequences to a U.S. Holder under an applicable
income 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 net investment income, U.S. federal
alternative minimum, U.S. federal estate and gift, U.S. state and
local, and non-U.S. tax consequences to U.S. Holders of the
acquisition, ownership, and disposition of common shares. In
addition, except as specifically set forth below, this summary does
not discuss applicable tax reporting requirements. Each prospective
U.S. Holder should consult its own tax advisors regarding the U.S.
federal, U.S. federal net investment income, U.S. federal
alternative minimum, U.S. federal estate and gift, U.S. state and
local, and non-U.S. tax consequences relating to the acquisition,
ownership and disposition of common shares.
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
retroactively. This summary does not discuss the potential effects,
whether adverse or beneficial, of any proposed
legislation.
95
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 United States;
●
a corporation (or
other entity treated as a corporation for U.S. federal income tax
purposes) organized under the laws of the United States, 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.
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, U.S. Holders that:
(a) are tax-exempt organizations, qualified retirement plans,
individual retirement accounts, or other tax-deferred accounts; (b)
are financial institutions, underwriters, insurance companies, real
estate investment trusts, or regulated investment companies; (c)
are broker-dealers, dealers, or traders in securities or currencies
that elect to apply a mark-to-market accounting method; (d) have a
"functional currency" other than the U.S. dollar; (e)
own common shares as part of a straddle, hedging transaction,
conversion transaction, constructive sale, or other arrangement
involving more than one position; (f) acquire common shares in
connection with the exercise of employee stock options or otherwise
as compensation for services; (g) hold common shares other than as
a capital asset within the meaning of Section 1221 of the Code
(generally, property held for investment purposes); (h) are subject
to special tax accounting rules with respect to common shares; (i)
own, have owned or will own (directly, indirectly, or by
attribution) 10% or more of the total combined voting power or
value of the outstanding shares of the Company; (j) are
partnerships or other pass-through entities; (k) U.S. expatriates
or former long-term residents of the U.S.; (l) are 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"); (m) are 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; (n) are persons
whose common shares constitute "taxable Canadian
property" under the Tax Act; or (o) are 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 advisors regarding the U.S. federal, U.S. federal net
investment income, U.S. federal alternative minimum, U.S. federal
estate and gift, U.S. state and local, and non-U.S. tax
consequences relating to the acquisition, ownership and disposition
of common shares.
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 or arrangement and the partners (or
other owners or participants) of such entity or arrangement
generally will depend on the activities of the entity or
arrangement and the status of such partners (or owners or
participants). This summary does not address the tax consequences
to any such partner (or owner or participants). Partners (or other
owners or participants) 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.
96
Passive
Foreign Investment Company Rules
PFIC Status of the Company
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 may affect the U.S. federal income tax consequences to a U.S.
Holder as a result of the acquisition, ownership and disposition of
common shares. The Company believes that it was classified as a
PFIC during the tax year ended December 31, 2019, and based on
current business plans and financial expectations, the Company
expects that it will be a PFIC for the current tax year and may be
a PFIC in future tax years. No opinion of legal counsel or ruling
from the IRS concerning the status of the Company as a PFIC has
been obtained or is currently planned to be requested. 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 advisors regarding the PFIC status of the
Company and each subsidiary of the Company. In any year in which
the Company is classified as a PFIC, a U.S. Holder will be required
to file an annual report with the IRS containing such information
as Treasury Regulations and/or other IRS guidance may require. In
addition to penalties, a failure to satisfy such reporting
requirements may result in an extension of the time period during
which the IRS can assess a tax. 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 annually.
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
"PFIC 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 "PFIC
asset test"). "Gross income" generally includes
all sales revenues less the cost of goods sold, plus 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 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 the ordinary course of its trade or
business, and certain other requirements are
satisfied.
For
purposes of the PFIC income test and PFIC 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 PFIC 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) also organized in Canada, 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 generally 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 under the PFIC rules even if no distributions are
received and no redemptions or other dispositions of common shares
are made.
97
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 (and not eligible for certain preferred rates). 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.
QEF Election
A U.S.
Holder that makes a timely and effective QEF Election for the first
tax year in which the 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
98
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 makes a QEF Election but does not
make a "purging" election to recognize gain as
discussed in the preceding sentence, then such U.S. Holder shall be
subject to the QEF Election rules and shall continue to be subject
to tax under the rules of Section 1291 discussed above with respect
to its common shares. 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 all 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 advisors 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
does not 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 of Section 1291 of the Code discussed above
that apply to Non-Electing U.S. Holders with respect to the
taxation of gains and excess distributions.
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 for which the
Company is a PFIC and 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 adjusted 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).
99
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 U.S.
Holder makes a Mark-to-Market Election by attaching a completed IRS
Form 8621 to a timely filed United States federal income tax
return. 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 advisors 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 avoid 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 to its
shareholder.
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 advisors
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 advisors 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.
General
Rules Applicable to the Ownership and Disposition of Common
Shares
The
following discussion describes the general rules applicable to the
ownership and disposition of the common shares but is subject in
its entirety to the special rules described above under the heading
"Passive Foreign Investment Company
Rules."
100
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 and
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 for the tax year of such distribution or the
preceding tax year. 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 its earnings and profits in
accordance with U.S. federal income tax principles, and each U.S.
Holder may have to assume that any distribution by the Company with
respect to the common shares will constitute ordinary dividend
income. Dividends received on common shares by corporate U.S.
Holders generally will not be eligible for the "dividends
received deduction." Subject to applicable limitations and
provided the Company is eligible for the benefits of the
Canada-U.S. Tax Convention or the common shares are readily
tradable on a United States securities market, dividends paid by
the Company to non-corporate U.S. Holders, including individuals,
generally will be eligible for the preferential tax rates
applicable to long-term capital gains for dividends, provided
certain holding period and other conditions are satisfied,
including that the Company not be classified as a PFIC in the tax
year of distribution or in the preceding tax year. The dividend
rules are complex, and each U.S. Holder should consult its own tax
advisors 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
Considerations
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. Different rules apply to
U.S. Holders who use the accrual method of tax accounting. Each
U.S. Holder should consult its own U.S. tax advisors 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 that is 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. The foreign tax credit rules are complex
and involve the application of rules that depend on a U.S.
Holder's particular circumstances. Each U.S. Holder should
consult its own U.S. tax advisor regarding the foreign tax credit
rules.
101
Backup Withholding and Information Reporting
Under
U.S. federal income tax law, certain categories of U.S. Holders
must file information returns with respect to their investment in,
or involvement in, a foreign corporation. For example, U.S. return
disclosure obligations (and related penalties) are imposed on
individuals who are U.S. Holders that hold certain specified
foreign financial assets in excess of certain thresholds. 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
certain financial institutions. 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 24%, 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.
The
discussion of reporting requirements set forth above is not
intended to constitute a complete description of all reporting
requirements that may apply to a U.S. Holder. A failure to satisfy
certain reporting requirements may result in an extension of the
time period during which the IRS can assess a tax and, under
certain circumstances, such an extension may apply to assessments
of amounts unrelated to any unsatisfied reporting requirement. Each
U.S. Holder should consult its own tax advisors regarding the
information reporting and backup withholding rules.
THE
ABOVE SUMMARY IS NOT INTENDED TO CONSTITUTE A COMPLETE ANALYSIS OF
ALL TAX CONSIDERATIONS APPLICABLE TO U.S. HOLDERS WITH RESPECT TO
THE ACQUISITION, OWNERSHIP, AND DISPOSITION OF COMMON SHARES. U.S.
HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS AS TO THE TAX
CONSIDERATIONS APPLICABLE TO THEM IN THEIR OWN PARTICULAR
CIRCUMSTANCES.
F.
Dividends
and Paying Agents
Not
Applicable.
G.
Statement
by Experts
Not
Applicable.
H.
Documents
on Display
We are
subject to the informational requirements of the Exchange Act and
file reports and other information with the SEC. You may read and
copy any of our reports and other information we file with the SEC
and obtain copies upon payment of any prescribed fees from the
Public Reference Room maintained by the SEC at 100 F Street, N.E.,
Washington, D.C. 20549. In addition, the SEC maintains a website
that contains reports and other information regarding registrants
that file electronically with the SEC at http://www.sec.gov. The
public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330.
The
documents concerning us referred to in this Annual Report may be
viewed during normal business hours at our executive offices at
Suite 1610 – 409 Granville Street, Vancouver, British
Columbia, V6C 1T2.
We are
required to file reports and other information with the securities
commissions in Canada. You are invited to read and copy any
reports, statements or other information, other than confidential
filings, that we file with the provincial securities commissions.
These filings are also electronically available from SEDAR at
www.sedar.com, the Canadian equivalent of the SEC's
electronic document gathering and retrieval system.
I.
Subsidiary
Information
Not
applicable.
102
I
TEM 11.  QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
(a)
Quantitative
Information about market risk
Market Risk
The
significant market risks to which the Company is exposed are
interest rate risk, foreign currency risk, and commodity and equity
price risk. Despite some signs of improvement, market challenges
for commodities and mining sector equities continued during the
first part of the year. These economic conditions create
uncertainty particularly over the price of vanadium, silver and
coal, the exchange rate between Canadian and US dollars and the
timing of any further recovery remains uncertain.
Interest Rate Risk
Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company's cash and cash equivalents primarily include
highly liquid investments that earn interest at market rates that
are fixed to maturity. Due to the short-term nature of these
financial instruments, fluctuations in market rates do not have
significant impact on the fair values of the financial instruments
as of December 31, 2019. The Company manages interest rate risk by
maintaining an investment policy that focuses primarily on
preservation of capital and liquidity.
Foreign Currency Risk
The
Company is exposed to foreign currency risk to the extent that
monetary assets and liabilities held by the Company are not
denominated in Canadian dollars. The Company has exploration
projects in the United States, Bolivia and Mongolia and undertakes
transactions in various foreign currencies. The Company is
therefore exposed to foreign currency risk arising from
transactions denominated in a foreign currency and the translation
of financial instruments denominated in US dollar, Bolivian
boliviano and Mongolian tugrik into its reporting currency, the
Canadian dollar.
Based
on the above, net exposures as at December 31, 2019, with other
variables unchanged, a 10% (December 31, 2018 – 10%, December
31, 2017 – 10%) strengthening (weakening) of the Canadian
dollar against the Mongolian tugrik would impact net loss with
other variables unchanged by $144,000. A 10% strengthening
(weakening) of the Canadian dollar against the Bolivian boliviano
would impact net loss with other variables unchanged by $70,000. A
10% strengthening (weakening) of the US dollar against the Canadian
dollar would impact net loss with other variables unchanged by
$60,000. The Company currently does not use any foreign exchange
contracts to hedge this currency risk.
Commodity and Equity Price Risk
Commodity price
risk is defined as the potential adverse impact on earnings and
economic value due to commodity price movements and volatilities.
Commodity prices fluctuate on a daily basis and are affected by
numerous factors beyond the Company's control. The supply and
demand for these commodities, the level of interest rates, the rate
of inflation, investment decisions by large holders of commodities
including governmental reserves and stability of exchange rates can
all cause significant fluctuations in prices. Such external
economic factors are in turn influenced by changes in international
investment patterns and monetary systems and political
developments.
The
Company is also exposed to price risk with regards to equity
prices. Equity price risk is defined as the potential adverse
impact on the Company's earnings due to movements in
individual equity prices or general movements in the level of the
stock market.
The
Company closely monitors commodity prices, individual equity
movements and the stock market to determine the appropriate course
of action to be taken by the Company. Fluctuations in value may be
significant.
Credit Risk
Credit
risk is the risk that one party to a financial instrument will fail
to discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and cash equivalents and receivables. The
carrying amount of assets included on the statements of financial
position represents the maximum credit exposure.
103
I
TEM 12.   DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES A.-C.
Not
applicable.
D.
American
Depository Receipts
The
Company does not have securities registered as American Depository
Receipts.
104
P
ART II
I
TEM 13. DEFAULTS, DIVIDEND ARREARAGES AND
DELINQUENCIES
Not
applicable.
I
TEM 14.  MATERIAL MODIFICATIONS TO THE RIGHTS OF
SECURITY HOLDERS AND USE OF PROCEEDS
Not
applicable.
I
TEM 15.  CONTROLS AND PROCEDURES
A.
Disclosure
Controls and Procedures
An
evaluation was performed under the supervision and with the
participation of the Company's Audit Committee and
management, including the Company's CEO and the
Company's CFO, of the effectiveness of the design and
operation of the Company's disclosure controls and procedures
pursuant to Rules 13a-15(b) and 15d-15(b) of the U.S. Exchange Act
as of December 31, 2019. Based on their evaluation, the
Company's CEO and CFO have concluded that the disclosure
controls and procedures were effective to give reasonable assurance
that the information required to be disclosed by the Company in
reports that it files or submits under the U.S. Exchange Act is,
(a) recorded, processed, summarized and reported, within the time
periods specified in the SEC's rules and forms, and (b)
accumulated and communicated to management, including its principal
executive and principal financial officers, or persons performing
similar functions, as appropriate to allow timely decisions
regarding required disclosure.
B.
Management's
Annual Report on Internal Control Over Financial
Reporting
The
Company's management, including the Company's CEO and
CFO, is responsible for establishing and maintaining adequate
internal control over the Company's internal control over
financial reporting, as such term is defined in Rule 13a-15(f)
under the U.S. 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 of consolidated financial statements
for external purposes in accordance with IFRS. The Company's
internal control over financial reporting includes policies and
procedures that: pertain to the maintenance of records that, in
reasonable detail accurately and fairly reflect the transactions
and disposition of assets; provide reasonable assurance that
transactions are recorded as necessary to permit preparation of the
consolidated financial statements in accordance with IFRS and that
receipts and expenditures are being made only in accordance with
authorization of management and directors of the Company; and
provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of assets
that could have a material effect on the consolidated financial
statements.
Because
of their inherent limitations, internal control over financial
reporting can provide only reasonable assurance and may not prevent
or detect misstatements. Furthermore, projections of any evaluation
of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may
deteriorate.
The
Company's management (with the participation of the CEO and
the CFO) conducted an evaluation of the effectiveness of the
Company's internal control over financial reporting as of
December 31, 2019. This evaluation was based on the criteria set
forth in the 2013 Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway
Commission. Based on its assessment, management has concluded that
the Company's internal control over financial reporting was
effective during the year ended December 31, 2019, and
management's assessment did not identify any material
weaknesses.
C.
Attestation
Report of the Registered Public Accounting Firm
This
Annual Report does not include an attestation report of our
registered public accounting firm regarding internal control over
financial reporting. Management's report was not subject to
attestation by our registered public accounting firm due to: (1)
the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010, which permits the Company as a "non-accelerated
filer" to provide only management's report on internal
control over financial reporting in this Annual Report and omit an
attestation report of the issuer's registered public
accounting firm regarding management's report on internal
control over financial reporting; and (2) our qualifying as an
"emerging growth company" under section 3(a) of the Exchange Act
(as amended by the JOBS Act, enacted on April 5, 2012), providing
us an exemption from the attestation requirement
105
D.
Changes
in Internal Control Over Financial Reporting
Based
upon their evaluation of our controls, our CEO and CFO have
concluded that there were no significant changes in our internal
control over financial reporting or in other factors during our
last fiscal year that have materially affected, or are reasonably
likely to materially affect, our internal control over financial
reporting.
I
TEM 16. [RESERVED]
Not
applicable.
I
TEM 16A. AUDIT COMMITTEE FINANCIAL
EXPERT
The
Company's Board has determined that Mr. Greg Hall, Chairman of the
Audit Committee possesses the educational and professional
qualifications as well as the experience to qualify as an
"Audit Committee Financial Expert" as defined in Item
407(d)(5) of Regulation S-K under the Exchange Act. Mr. Hall does
not meet the criteria for independence of an audit committee member
established under SEC Rule 10A-3. In addition, the Company believes
that the other members of the Audit Committee are capable of
analyzing and evaluating the financial statements and understanding
internal controls and procedures for financial
reporting.
I
TEM 16B. CODE OF ETHICS
The
Company has adopted a Code of Ethics found at Appendix 4 of the
Company's Corporate Governance Policies and Procedures
Manual, that applies to all directors, senior officers and
employees of the Company including the CEO and CFO.
Shareholders may
request a copy of the Code of Ethics by written request directed to
Silver Elephant Mining Corp., Suite 1610, 409 Granville Street,
Vancouver, British Columbia, Canada V6C 1T2 or by reference to the
Company's website
www.silverelef.com
.
There
have been no waivers or amendments to the Code of Ethics during the
year ended December 31, 2019.
I
TEM 16C. PRINCIPAL ACCOUNTANT FEES AND
SERVICES
The
following table shows the aggregate amounts billed to the Company
by Davidson & Company LLP and its affiliates, Chartered
Accountants, the Company's principal auditors for the three
fiscal years ended December 31, 2019 for audit fees, audit related
fees, tax fees and all other fees:
Year
Ended
December
31, 2019 (4)
Year
Ended
December
31, 2018
Year
Ended
December
31, 2017
Audit Fees
(1)
$
100,000
$
100,000
$
100,000
Audit-Related Fees
(2)
-
52,340
52,340
Tax Fees
(3)
20,000
13,000
13,000
All Other
Fees
-
-
-
TOTAL
$
120,000
$
165,340
$
165,340
Notes:
(1)
"Audit
Fees" represent fees for the audit of the annual consolidated
financial statements, and review in connection with the statutory
and regulatory filings.
(2)
"Audit
Related Fees" represent fees for assurance and related
services that are related to the performance of the
audit.
(3)
"Tax
Fees" represent fees for tax compliance, tax advice and
planning.
(4)
Fees for the year
ended December 31, 2019, are based, in part, upon estimates
received by the Company as final invoices are yet to be rendered as
of the date of this Annual Report.
106
I
TEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR
AUDIT COMMITTEES
Not
applicable.
I
TEM 16E.  PURCHASES OF EQUITY SECURITIES BY THE
ISSUER AND AFFILIATED PURCHASERS
Not
applicable.
I
TEM 16F.  CHANGE IN REGISTRANT'S
CERTIFYING ACCOUNTANT
Not
applicable.
ITEM
16G. CORPORATE GOVERNANCE
Not
applicable.
I
TEM 16H. MINE SAFETY DISCLOSURE
Pursuant to Section
1503(a) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010, issuers that are operators, or that have a
subsidiary that is an operator, of a coal or other mine in the
United States are required to disclose in their periodic reports
filed with the SEC information regarding specified health and
safety violations, orders and citations, related assessments and
legal actions, and mining-related fatalities with respect to mining
operations and properties in the United States that are subject to
regulation by the Federal Mine Safety and Health Administration
(the "MSHA") under the Federal Mine Safety and Health
Act of 1977 (the "Mine Act"). During the year ended
December 31, 2019, the Company had no operating mines in the United
States that were subject to regulation by the MSHA under the Mine
Act.
107
PART
III
I
TEM 17. FINANCIAL STATEMENTS
Not
applicable.
I
TEM 18. FINANCIAL
STATEMENTS
Document
Audited
Financial Statements of the Company for the years ended December
31, 2019 and 2018.
I
TEM 19.  EXHIBITS
Exhibit Number
Description
1.1*
Articles of
Incorporation (incorporated by reference from our Registration
Statement on Form 20-F filed with the SEC on June 27, 2018 (SEC
File No.: 377- 02144) and Amendment to Articles dated March 16,
2020 under (SEC File No. 000-55985- Film No.
20718657))
2.1
Description of
Registered Securities
4.1*
Debt Settlement
Agreement dated January 13, 2017 among Silver Elephant Mining
Corp., Linx and John Lee (incorporated by reference from our
Registration Statement on Form 20- F filed with the SEC on June 27,
2018 (SEC File No.: 377-02144))
4.2*
Mineral Lease
Agreement dated June 22, 2017 between Silver Elephant Mining Corp.
and Janelle Dietrich (incorporated by reference from our
Registration Statement on Form 20-F filed with the SEC on June 27,
2018 (SEC File No.: 377-02144))
4.3*
Mineral Lease
Agreement dated July 10, 2017 among Silver Elephant Mining Corp.,
Richard A. McKay, Nancy M. Minoletti and Pamela S. Scutt
(incorporated by reference from our Registration Statement on Form
20-F filed with the SEC on June 27, 2018 (SEC File No.:
377-02144))
4.4*
Share Purchase
Agreement dated February 7, 2018 among Silver Elephant Mining
Corp., Medalist Capital Ltd. and 631208 B.C. Ltd. (incorporated by
reference from our Registration Statement on Form 20-F filed with
the SEC on June 27, 2018 (SEC File No.: 377-02144))
4.5*
Amendment to the
Mineral Lease Agreement dated April 19, 2018 between Silver
Elephant Mining Corp. and Janelle Dietrich (incorporated by
reference from our Annual Report on Form 20-F filed with the SEC on
March 29, 2019 (SEC File No.: 000-55985))
4.6*
Share-Based
Compensation Plan (incorporated by reference from our Registration
Statement on Form 20-F filed with the SEC on June 27, 2018 (SEC
File No.: 377-02144))
4.7*
English Summary of
Pulacayo Joint Venture Agreement (incorporated by reference from
our Annual Report on Form 20-F filed with the SEC on March 29, 2019
(SEC File No.: 000-55985))
8.1
List of
Subsidiaries
12.1
Certification of
Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
12.
2
Certification of
Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
13.1
Certification of
Chief Executive Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
13.2
Certification of
Chief Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
101.INS
XBRL Instance
Document
101.
SCH
XBRL Taxonomy
Extension Schema Document
101.CAL
XBRL Taxonomy
Extension Calculation Linkbase Document 101.DEF XBRL Taxonomy
Extension Definition Linkbase Document 101.LAB XBRL Taxonomy
Extension Label Linkbase Document 101.PRE XBRL Taxonomy Extension
Presentation Linkbase Document
*
Incorporated by
reference from the Company's SEC filings.
108
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.
SILVER
ELEPHANT MINING CORP.
Date:
March 30 ,
2020
By:
/s/
Michael
Doolin
Michael
Doolin
Chief Executive
Officer and Chief Operating officer
109
SILVER
ELEPHANT MINING CORP.
(Formerly
Prophecy Development Corp.)
Annual
Consolidated Financial Statements
For the years ended December 31, 2019, 2018 and 2017
(Expressed
in Canadian Dollars)
1
TABLE OF CONTENTS
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL
REPORTING
3
Report of Independent Registered Public Accounting
Firm
4
Consolidated Statements of Financial Position
6
Consolidated Statements of Operations and Comprehensive Gain
(Loss)
7
Consolidated Statements of Changes in Equity
8
Consolidated Statements of Cash Flows
9
1
DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS
10
2
BASIS OF PRESENTATION
10
3
BASIS OF CONSOLIDATION
11
4
CHANGES IN ACCOUNTING POLICIES
11
5
SIGNIFICANT JUDGMENTS, ESTIMATES AND ASSUMPTIONS
12
6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
15
7
SEGMENTED INFORMATION
20
8
CASH AND CASH EQUIVALENTS
20
9
RECEIVABLES
21
10
PREPAID EXPENSES
21
11
MARKETABLE SECURITIES
21
12
RIGHT-OF-USE ASSET
22
13
EQUIPMENT
22
14
MINERAL PROPERTIES
24
15
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
28
16
LEASE LIABILITY
29
17
PROVISION FOR CLOSURE AND RECLAMATION
29
18
TAX PROVISION
30
19
SHARE CAPITAL
31
20
CAPITAL RISK MANAGEMENT
38
21
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
38
22
FINANCIAL RISK MANAGEMENT DISCLOSURES
39
23
RELATED PARTY DISCLOSURES
40
24
KEY MANAGEMENT PERSONNEL COMPENSATION
41
25
SUPPLEMENTAL CASH FLOW INFORMATION
42
26
COMMITMENTS
42
27
CONTINGENCIES
42
28
EVENTS AFTER THE REPORTING DATE
43
2
MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL
REPORTING
The annual audited consolidated financial statements (the
"
Annual Financial
Statements
"), the notes
thereto, and other financial information contained in the
accompanying Management's Discussion and Analysis
("
MD&A
") have been prepared in accordance with
International Financial Reporting Standards as issued by the
International Accounting Standards Board and are the responsibility
of the management of Silver Elephant Mining Corp. The financial
information presented elsewhere in the MD&A is consistent with
the data that is contained in the Annual Financial Statements. The
Annual Financial Statements, where necessary, include amounts which
are based on the best estimates and judgment of
management.
In order to discharge management's responsibility for the
integrity of the Annual Financial Statements, the Company maintains
a system of internal accounting controls. These controls are
designed to provide reasonable assurance that the Company's
assets are safeguarded, transactions are executed and recorded in
accordance with management's authorization, proper records
are maintained, and relevant and reliable financial information is
produced. These controls include maintaining quality standards in
hiring and training of employees, policies and procedures manuals,
a corporate code of conduct and ethics and ensuring that there is
proper accountability for performance within appropriate and
well-defined areas of responsibility. The system of internal
controls is further supported by a compliance function, which is
designed to ensure that we and our employees comply with securities
legislation and conflict of interest rules.
The Board of Directors is responsible for overseeing
management's performance of its responsibilities for
financial reporting and internal control. The Audit Committee,
which is composed of non-executive directors, meets with management
as well as the external auditors to ensure that management is
properly fulfilling its financial reporting responsibilities to the
Board who approve the Annual Financial Statements. The external
auditors have full and unrestricted access to the Audit Committee
to discuss the scope of their audits and the adequacy of the system
of internal controls
,
and to review financial reporting
issues
.
The
external auditors, Davidson & Company LLP, have been appointed
by the Company's shareholders to render their opinion on the
Annual Financial Statements and their report is included
herein.
"Michael Doolin"
"
Irina
Plavutska
"
Michael
Doolin, Chief Executive Officer
Irina
Plavutska, Chief Financial Officer
Vancouver,
British Columbia
March
30, 2020
3
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
To the
Shareholders and Directors of
Silver
Elephant Mining Corp. (formerly Prophecy Development
Corp.)
Opinion on the Consolidated Financial Statements
We have
audited the accompanying consolidated statements of financial
position of Silver Elephant Mining Corp. (formerly Prophecy
Development Corp.) (the "Company"), as of December 31,
2019, 2018 and 2017 and the related consolidated statements of
operations and comprehensive gain (loss), changes in equity
(deficiency), and cash flows for the years ended December 31, 2019,
2018, and 2017, and the related notes (collectively referred to as
the "financial statements"). In our opinion, the
consolidated financial statements present fairly, in all material
respects, the financial position of Silver Elephant Mining Corp.
(formerly Prophecy Development Corp.) as of December 31, 2019 and
2018, and the results of its operations and its cash flows for the
years ended December 31, 2019, 2018, and 2017 in conformity with
International Financial Reporting Standards as issued by the
International Accounting Standards Board.
Going Concern
The
accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. As
discussed in Note 1 to the consolidated financial statements, the
Company has suffered recurring losses from operations that raise
substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in
Note 1. The consolidated financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.
Basis for Opinion
These
consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an
opinion on the Company's consolidated financial statements
based on our audits. We are a public accounting firm registered
with the Public Company Accounting Oversight Board (United States)
("PCAOB") and are required to be independent with
respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement, whether due
to error or fraud. The Company is not required to have, nor were we
engaged to perform, an audit of its internal control over financial
reporting. As part of our audits we are required to obtain an
understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of
the Company's internal control over financial reporting.
Accordingly, we express no such opinion.
4
Our
audits included performing procedures to assess the risks of
material misstatements of the financial statements, whether due to
error or fraud, and performing procedures that respond to those
risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated
financial statements. Our audits also included evaluating the
accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that our audits
provide a reasonable basis for our opinion.
We have
served as the Company's auditor since 2013.
"DAVIDSON & COMPANY LLP"
Vancouver,
Canada
Chartered
Professional Accountants
March
30, 2020
5
SILVER ELEPHANT MINING CORP.
(formerly
Prophecy Development Corp.)
Consolidated Statements of Financial Position
(Expressed
in Canadian Dollars)
As at
December
31,
December
31,
December
31,
Notes
2019
2018
2017
Assets
Current
assets
Cash and cash
equivalents
8
$
3,017,704
$
5,304,097
$
4,100,608
Receivables
9
246,671
36,399
34,653
Prepaid
expenses
10
135,767
123,272
140,610
Marketable
securities
11
-
-
205,600
3,400,142
5,463,768
4,481,471
Non-current
assets
Restricted cash
equivalents
8
34,500
34,500
34,500
Reclamation
deposits
21,055
21,055
21,055
Right-of-use
asset
12
50,023
-
-
Equipment
13
159,484
101,162
531,911
Mineral
properties
14
23,782,884
3,643,720
13,299,906
$
27,448,088
$
9,264,205
$
18,368,843
Liabilities
and Equity (Deficiency)
Current
liabilities
Accounts payable
and accrued liabilities
15
$
2,420,392
$
1,636,786
$
1,895,983
Lease
liability
16
32,285
-
-
2,452,677
1,636,786
1,895,983
Non-current
liabilities
Lease
liability
16
20,533
-
-
Provision for
closure and reclamation
17
266,790
265,239
244,323
Tax
provision
18
-
8,121,918
7,541,016
2,740,000
10,023,943
9,681,322
Equity
(Deficiency)
Share
capital
19
181,129,012
173,819,546
165,862,805
Reserves
24,058,336
23,413,830
22,621,202
Accumulated other
comprehensive income
-
-
12,160
Deficit
(180,479,260
)
(197,993,114
)
(179,808,646
)
24,708,088
(759,738
)
8,687,521
$
27,448,088
$
9,264,205
$
18,368,843
Approved
on behalf of the Board:
"John Lee"
"Greg Hall"
John
Lee, Director
Greg
Hall, Director
Commitments
(Note 26)
Contingencies
(Note 27)
Events after the reporting date
(Note 28)
The
accompanying notes form an integral part of these consolidated
financial statements.
6
SILVER ELEPHANT MINING CORP.
(formerly
Prophecy Development Corp.)
Consolidated Statements of Operations and Comprehensive Gain
(Loss)
(Expressed
in Canadian Dollars)
Years
Ended December 31,
Notes
2019
2018
2017
General
and Administrative Expenses
Advertising and
promotion
$
794,182
$
471,230
$
101,512
Consulting and
management fees
23
251,552
255,610
751,612
Depreciation and
accretion
65,157
28,024
8,823
Director
fees
23
103,805
70,378
60,600
Insurance
93,661
55,546
52,566
Office and
administration
123,904
137,289
89,808
Professional
fees
228,594
428,884
194,912
Salaries and
benefits
23
760,182
827,168
260,710
Share-based
payments
19
707,802
553,430
599,117
Stock
exchange and shareholder services
139,908
239,319
163,229
Travel and
accommodation
236,815
231,505
98,476
(3,505,562
)
(3,298,383
)
(2,381,365
)
Other
Items
Costs in excess of
recovered coal
(120,354
)
(94,335
)
(109,187
)
Finance
cost
-
-
(8,111
)
Foreign exchange
gain/(loss)
(443,203
)
(412,663
)
(188,464
)
(Impairment)/recovery
of mineral property
14
13,708,200
(13,994,970
)
(14,829,267
)
Impairment of
prepaid expenses
10
(51,828
)
(26,234
)
(57,420
)
Impairment of
equipment
13
-
(425,925
)
(159,666
)
Impairment of
receivables
9
(16,304
)
(21,004
)
(61,202
)
Interest
expense
-
-
(21,066
)
Loss on sale of
marketable securities
-
(91,890
)
(22,810
)
Loss on sale of
equipment
13
(9,795
)
-
(1,681
)
(Loss)/gain on debt
settlement
27, 23
7,952,700
50,000
(752,742
)
Other
income
-
130,936
-
21,019,416
(14,886,085
)
(16,211,616
)
Net
Gain/(Loss) for Year
17,513,854
(18,184,468
)
(18,592,981
)
Fair value loss on
marketable securities
-
(81,000
)
12,160
Reclassification
adjustment for realized loss
marketable
securities
-
68,840
-
Comprehensive
Gain/(Loss) for Year
$
17,513,854
$
(18,196,628
)
$
(18,580,821
)
Gain/(Loss) Per Common Share,
basic
$
0.17
$
(0.23
)
$
(0.33
)
diluted
$
0.17
$
(0.23
)
$
(0.33
)
Weighted
Average Number of Common Shares Outstanding,
basic
102,208,111
78,445,396
55,760,700
diluted
102,398,145
78,443,396
55,760,700
The
accompanying notes form an integral part of these consolidated
financial statements.
7
SILVER ELEPHANT MINING CORP.
(formerly
Prophecy Development Corp.)
Consolidated Statements of Changes in Equity
(Deficiency)
(Expressed
in Canadian Dollars)
Number of
Shares
Share
Capital
Reserves
Accumulated
OtherComprehensive Income (Loss)
Deficit
Total
Equity(Deficiency)
Balance
, December 31, 2016
48,076,530
$
156,529,025
$
21,482,133
$
-
$
(161,215,665
)
$
16,795,493
Private placements,
net of share issue costs
20,775,060
6,527,619
337,190
-
-
6,864,809
Shares issued on
acquisition of property
200,000
96,200
-
-
-
96,200
Debt
Settlements
4,019,130
2,039,269
-
-
-
2,039,269
Share bonus to
personnel
390,000
190,320
-
-
-
190,320
Share compensation
for services
984,200
344,470
-
-
-
344,470
Exercise of stock
options
126,870
65,252
(14,567
)
-
-
50,685
Exercise of
warrants
150,000
70,650
(10,650
)
-
-
60,000
Share-based
payments
-
-
827,096
-
-
827,096
Loss for the
year
-
-
-
-
(18,592,981
)
(18,592,981
)
Unrealized gain on
marketable securities
-
-
-
12,160
-
12,160
Balance
, December 31, 2017
74,721,790
$
165,862,805
$
22,621,202
$
12,160
$
(179,808,646
)
$
8,687,521
Private placements,
net of share issue costs
16,061,417
6,096,621
-
-
-
6,096,621
Warrants issued for
mineral property
-
-
181,944
-
-
181,944
Exercise of stock
options
87,500
39,500
(15,350
)
-
-
24,150
Exercise of
warrants
3,445,420
1,470,620
(132,453
)
-
-
1,338,167
Bonus
shares
1,000,000
350,000
-
-
-
350,000
Share-based
payments
-
-
758,487
-
-
758,487
Loss for the
year
-
-
-
-
(18,184,468
)
(18,184,468
)
Unrealized loss on
marketable securities
-
-
-
(12,160
)
-
(12,160
)
Balance
, December 31, 2018
95,316,127
$
173,819,546
$
23,413,830
$
-
$
(197,993,114
)
$
(759,738
)
Private placements,
net of share issue costs
22,750,000
6,117,991
-
-
-
6,117,991
Finders
shares
1,179,500
366,800
-
-
-
366,800
Debt
Settlements
104,951
43,030
-
-
-
43,030
Exercise of stock
options
622,500
328,095
(153,845
)
-
-
174,250
Exercise of
warrants
651,430
279,050
(28,478
)
-
-
250,572
Bonus
shares
500,000
115,000
-
-
-
115,000
Share compensation
for services
175,000
59,500
-
-
-
59,500
Share-based
payments
-
-
826,829
-
-
826,829
Gain for the
year
-
-
-
-
17,513,854
17,513,854
Balance
, December 31, 2019
121,299,508
$
181,129,012
$
24,058,336
$
-
$
(180,479,260
)
$
24,708,088
The
accompanying notes form an integral part of these consolidated
financial statements.
8
SILVER ELEPHANT MINING CORP.
(formerly
Prophecy Development Corp.)
Consolidated Statements of Cash Flows
(Expressed
in Canadian Dollars)
Years
Ended December 31,
2019
2018
2017
Operating
Activities
Net gain/(loss) for
period
$
17,513,854
$
(18,184,468
)
$
(18,592,981
)
Adjustments to
reconcile net loss to net cash flows:
Depreciation and
accretion
65,157
28,024
8,823
Share-based
payments
707,802
553,430
599,117
Finance
cost
-
-
8,111
Interest
costs
-
-
21,066
Unrealized foreign
exchange (gain)/loss
(169,218
)
580,902
480,325
Share compensation
for services
356,003
350,000
344,470
Impairment/(recovery)
of mineral property
(13,708,200
)
13,994,970
14,829,267
Impairment of
prepaid expenses
51,828
26,234
57,420
Impairment of
equipment
-
425,925
159,666
Impairment of
receivables
16,304
21,004
61,202
Loss/(gain) on sale
of marketable securities
-
91,890
22,810
Loss on sale of
equipment
9,795
-
1,681
Debt settlement
gain
(7,952,700
)
-
752,742
(3,109,375
)
(2,112,089
)
(1,246,281
)
Working capital
adjustments
Receivables
(196,079
)
(22,750
)
(4,290
)
Prepaid expenses
and reclamation deposits
(29,323
)
(8,896
)
2,496
Accounts payable
and accrued liabilities
659,264
(482,952
)
540,844
433,862
(514,598
)
539,050
Cash
Used in Operating Activities
(2,675,513
)
(2,626,687
)
(707,231
)
Investing
Activities
Purchase of
GIC
-
-
(34,500
)
Net
(purchases)/proceeds from marketable securities
-
101,550
(40,250
)
Purchase of
property and equipment
(113,564
)
(120,416
)
(515,609
)
Mineral property
acquisition and expenditures
(6,123,401
)
(3,609,896
)
(1,398,207
)
Cash
Used in Investing Activities
(6,236,965
)
(3,628,762
)
(1,988,566
)
Financing
Activities
Funds borrowed
under credit facility
-
-
163,405
Credit facilities
paid
-
-
(343,076
)
Interest
paid
-
-
(21,066
)
Lease
payments
(36,528
)
-
-
Proceeds from share
issuance, net of share issue costs
6,237,791
6,096,621
6,864,809
Proceeds from
exercise of optons
174,250
24,150
50,685
Proceeds from
exercise of warrants
250,572
1,338,167
60,000
Cash
Provided by Financing Activities
6,626,085
7,458,938
6,774,757
Net Decrease in
Cash and Cash equivalents
(2,286,393
)
1,203,489
4,078,960
Cash and cash
equivalents- beginning of year
5,304,097
4,100,608
21,648
Cash and cash
equivalents - end of year
$
3,017,704
$
5,304,097
$
4,100,608
Supplemental cash flow information
(Note 25)
The
accompanying notes form an integral part of these consolidated
financial statements.
9
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
1.
DESCRIPTION
OF BUSINESS AND NATURE OF OPERATIONS
Silver
Elephant Mining Corp. (formerly Prophecy Development Corp.) (the
"
Company
") is
incorporated under the laws of the province of British Columbia,
Canada.
The Company's common
shares (the "
Shares
") are listed for trading on the Toronto
Stock Exchange (the "
TSX
") under the symbol
"ELEF",
the OTCQX® Best Market under the
symbol "SILEF"
,
and
the Frankfurt Stock Exchange under the
symbol "1P2N"
.
The
Company is an exploration stage company
.
The Company
holds a mining joint venture
interest in the Pulacayo Paca silver-lead-zinc property located in
Bolivia.
The Company also has a 100% interest in two
vanadium projects in North America including the Gibellini vanadium
project which is comprised of the Gibellini and Louie Hill vanadium
deposits and associated claims located in the State of Nevada, USA
and the Titan vanadium-titanium-iron property located in the
Province of Ontario, Canada.
The Company also has a 100% interest
in the Ulaan Ovoo coal property located in Selenge province,
Mongolia and a 100% interest in the Chandgana Tal coal property and
Khavtgai Uul coal property located in Khentii province,
Mongolia.
The
Company maintains its registered and records office at Suite 1610
– 409 Granville Street, Vancouver, British Columbia, Canada,
V6C 1T2.
These consolidated audited annual
financial statements have been prepared under the assumption that
the Company is a going concern
, which contemplates the
realization of assets and the payment of liabilities in the
ordinary course of business. The Company has a deficit of $180
million.
The
business of mineral exploration involves a high degree of risk and
there can be no assurance that the Company's current
operations, including exploration programs, will result in
profitable mining operations. The recoverability of the carrying
value of mineral properties, and property and equipment interests
and the Company's continued on going existence is dependent
upon the preservation of its interest in the underlying properties,
the discovery of economically recoverable reserves, the achievement
of profitable operations, the ability of the Company to raise
additional sources of funding, and/or, alternatively, upon the
Company's ability to dispose of some or all of its interests
on an advantageous basis. Additionally, the current capital markets
and general economic conditions are significant obstacles to
raising the required funds. These conditions may cast significant
doubt upon the Company's ability to continue as a going
concern.
In
assessing whether the going concern assumption is appropriate,
management takes into account all available information about the
future, which is at least, but not limited to, twelve months from
the end of the reporting period. Management is aware, in making its
assessment, of uncertainties related to events or conditions that
may cast significant doubt upon the entity's ability to
continue as a going concern that these uncertainties are material
and, therefore, that it may be unable to realize its assets and
discharge its liabilities in the normal course of business.
Accordingly, they do not give effect to adjustments that would be
necessary should the Company be unable to continue as a going
concern and therefore to realize its assets and discharge its
liabilities and commitments in other than the normal course of
business and at amounts different from those in the accompanying
financial statements. These adjustments could be
material.
2.
BASIS
OF PRESENTATION
These
Annual Financial Statements have been prepared in accordance with
International Financial Reporting Standards, ("
IFRS
") as issued by the
International Accounting Standards Board ("
IASB
").
The
preparation of financial statements in compliance with IFRS
requires the use of certain critical accounting estimates. It also
requires the Company's management to exercise judgment in
applying the Company's accounting policies. The areas where
significant judgments and estimates have been made in preparing
these Annual Financial Statements and their effect are disclosed in
Note 5.
These
Annual Financial Statements have been prepared on a historical cost
basis, except for financial instruments classified as marketable
securities and fair value through profit or loss
("
FVTPL
"), which
are stated at their fair values. These Annual Financial Statements
have been prepared using the accrual basis of accounting except for
cash flow information. These Annual Financial Statements are
presented in Canadian Dollars, except where otherwise
noted.
10
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
2.
BASIS OF PRESENTATION
(cont'd…)
The
accounting policies set out in Note 6 have been applied
consistently by the Company and its subsidiaries to all periods
presented. Certain prior year amounts have been reclassified to
conform to the current year presentation.
The
Annual Consolidated Financial Statements were reviewed by the Audit
Committee and approved and authorized for issue by the Board of
Directors on March 24, 2019
.
3.
BASIS
OF CONSOLIDATION
The Annual Financial Statements comprise the financial statements
of the Company and its wholly owned and partially owned
subsidiaries as at December 31, 2019. Subsidiaries are consolidated
from the date of acquisition, being the date on which the Company
obtains control, and continue to be consolidated until the date
when such control ceases. Effects of transactions between related
companies are eliminated on consolidation. The financial statements
of the subsidiaries are prepared for the same reporting period as
the parent company
.
Accounting policies of the
subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the
Company.
The
Company's significant subsidiaries at December 31, 2019 are
presented in the following table:
4.
CHANGES
IN ACCOUNTING POLICIES
Effective January 1, 2019,
the Company, for the first time,
has applied IFRS 16
Leases
(as issued by the IASB in January 2016) effective January 1, 2019,
using the modified retrospective approach. The modified
retrospective approach does not require restatement of prior period
financial information and continues to be reported under IAS 17,
Leases
and IFRIC 4,
Determining Whether an Arrangement
Contains a Lease
. IFRS 16 introduces new or amended
requirements with respect to lease accounting. It introduces
changes to the lessee accounting by removing the distinction
between operating and finance leases and requiring the recognition
of a right-of-use asset and a lease liability at the lease
commencement for all leases, except for short-term leases and
leases of low value assets. In contrast to lessee accounting, the
requirements for lessor accounting have remained largely
unchanged.
The
Company's leases consist of corporate office lease
arrangements. The Company, on adoption of IFRS 16, recognized lease
liabilities in relation to office leases which had previously been
classified as operating leases under the principles of IAS 17. In
relation, under the principles of the new standard these leases are
measured as lease liabilities at the present value of the remaining
lease payments, discounted using the Company's incremental
borrowing rate as at January 1, 2019. The associated right-of-use
asset has been measured at the amount equal to the lease liability
on January 1, 2019. The right-of-use asset is subsequently
depreciated from the commencement date to the earlier of the end of
the lease term, or the end of the useful life of the asset (refer
to Note 12 and Note 16).
Furthermore,
the right-of-use asset may be reduced due to impairment
losses
.
11
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
4.
CHANGES IN ACCOUNTING POLICIES
(cont'd…)
The
following table reconciles the Company's operating lease
commitments at December 31, 2018, as previously disclosed in the
Company's Annual Financial Statements, to the lease liability
recognized on adoption of IFRS 16 at January 1, 2019:
5.
SIGNIFICANT
JUDGMENTS, ESTIMATES AND ASSUMPTIONS
The
preparation of a company's financial statements in conformity
with IFRS requires management to make judgments, estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Estimates and
assumptions are continually evaluated and are based on
management's experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances. Actual results could differ from these
estimates.
5.1
Significant
Judgments
The
significant judgments that the Company's management has made
in the process of applying the Company's accounting policies,
apart from those involving estimation uncertainties (Annual
financial statements 5.2), that have the most significant effect on
the amounts recognized in the Annual Financial Statements include,
but are not limited to:
(a)
Functional currency
determination
The
functional currency for each of the Company's subsidiaries is
the currency of the primary economic environment and the Company
reconsiders the functional currency of its entities if there is a
change in events and conditions which determined the primary
economic environment. Management has determined the functional
currency of all entities to be the Canadian dollar.
(b)
Economic
recoverability and probability of future economic benefits of
exploration, evaluation and development costs
Management
has determined that exploratory drilling, evaluation, development
and related costs incurred which have been capitalized are
economically recoverable. Management uses several criteria in its
assessments of economic recoverability and probability of future
economic benefit including geologic and metallurgic information,
history of conversion of mineral deposits to proven and probable
reserves, scoping, prefeasibility and feasibility studies,
assessable facilities, existing permits and life of mine
plans.
Management
has determined that during the year ended December 31, 2019, none
of the Company's silver and vanadium projects have reached
technical feasibility and commercial viability and therefore remain
within Mineral Properties on the Statement of Financial
Position
.
(c) Impairment
(recovery) assessment of deferred exploration
interests
The
Company considers both external and internal sources of information
in assessing whether there are any indications that mineral
property interests are impaired. External sources of information
the Company considers include changes in the market, economic and
legal environment in which the Company operates that are not within
its control and affect the recoverable amount of mineral property
interest. Internal sources of information the Company considers
include the manner in which mineral properties and plant and
equipment are being used or are expected to be used and indications
of economic performance of the assets.
12
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
5.
SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS
(cont'd…)
5.1
Significant Judgments
(cont'd…)
During
the year ended December 31, 2018, the Company wrote-off $13,994,970
of capitalized mineral property costs. During the year ended
December 31, 2019, the Company reversed $13,708,200 of impairment.
(Note 14).
(d)
Deferred Tax
Liability
Judgement
is required to determine which types of arrangements are considered
to be a tax on income in contrast to an operating cost. Judgement
is also required in determining whether deferred tax liabilities
are recognised in the statement of financial position. Deferred tax
liabilities, including those arising from un-utilised tax gains,
require management to assess the likelihood that the Company will
generate sufficient taxable losses in future periods, in order to
offset recognised deferred tax liabilities
.
Assumptions about the
generation of future taxable losses depend on management's
estimates of future cash flows. These estimates of future taxable
losses are based on forecast cash flows from operations (which are
impacted by production and sales volumes, commodity prices,
reserves, operating costs, closure and rehabilitation costs,
capital expenditure, and other capital management transactions) and
judgement about the application of existing tax laws in each
jurisdiction. To the extent that future cash flows and taxable
losses differ significantly from estimates, the ability of the
Company to offset the net deferred tax liabilities recorded at the
reporting date could be impacted
.
5.2
Estimates
and Assumptions
The
Company bases its estimates and assumptions on current and various
other factors that it believes to be reasonable under the
circumstances. Management believes the estimates are reasonable;
however, actual results could differ from those estimates and could
impact future results of operations and cash flows. The areas which
require management to make significant estimates and assumptions in
determining carrying values include, but are not limited
to:
(a)
Mineral
reserves
The recoverability of the carrying value of the mineral properties
is dependent on successful development and commercial exploitation,
or alternatively, sale of the respective areas of
interest
.
(b)
Depreciation
Significant
judgment is involved in the determination of useful life and
residual values for the computation of depreciation, depletion and
amortization and no assurance can be given that actual useful lives
and residual values will not differ significantly from current
assumptions.
(c)
Impairment
The carrying value of long-lived assets are reviewed each reporting
period to determine whether there is any indication of impairment.
If the carrying amount of an asset exceeds its recoverable amount,
the asset is impaired, and an impairment loss is recognized in the
consolidated statement of operations. The assessment of fair
values, including those of the cash generating units (the smallest
identifiable group of assets that generates cash inflows that are
largely independent of the cash inflow from other assets or groups
of assets) ("
CGUs
") for purposes of testing goodwill, require
the use of estimates and assumptions for recoverable production,
long-term commodity prices, discount rates, foreign exchange rates,
future capital requirements and operating performance. Changes in
any of the assumptions or estimates used in determining the fair
value of goodwill or other assets could impact the impairment
analysis.
13
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
5.
SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS
(cont'd...)
5.2
Estimates and Assumptions
(cont'd...)
(d)
Allowance for
doubtful accounts, and the recoverability of receivables and
prepaid expense amounts.
Significant
estimates are involved in the determination of recoverability of
receivables and no assurance can be given that actual proceeds will
not differ significantly from current estimations. Similarly,
significant estimates are involved in the determination of the
recoverability of services and/or goods related to the prepaid
expense amounts, and actual results could differ significantly from
current estimations.
Management
has made significant assumptions about the recoverability of
receivables and prepaid expense amounts. During the year ended
December 31,2019 the Company wrote-off $16,304 (2018 -
$21,004;2017-$61,202) of trade receivables which are no longer
expected to be recovered and $51,828 (2018 - $26,234;2017 -
$57,420) of prepaid expenses for which not future benefit is
expected to be received.
(e)
Provision for
closure and reclamation
The
Company assesses its mineral properties' rehabilitation
provision at each reporting date or when new material information
becomes available. Exploration, development and mining activities
are subject to various laws and regulations governing the
protection of the environment. In general, these laws and
regulations are continually changing, and the Company has made, and
intends to make in the future, expenditures to comply with such
laws and regulations. Accounting for reclamation obligations
requires management to make estimates of the future costs that the
Company will incur to complete the reclamation work required to
comply with existing laws and regulations at each location. Actual
costs incurred may differ from those amounts
estimated.
Also,
future changes to environmental laws and regulations could increase
the extent of reclamation and remediation work required to be
performed by the Company. Increases in future costs could
materially impact the amounts charged to operations for reclamation
and remediation. The provision represents management's best
estimate of the present value of the future reclamation and
remediation obligation. The actual future expenditures may differ
from the amounts currently provided.
(f)
Share-based
payments
Management
uses valuation techniques in measuring the fair value of share
purchase options granted. The fair value is determined using the
Black Scholes option pricing model which requires management to
make certain estimates, judgement, and assumptions in relation to
the expected life of the share purchase options and share purchase
warrants, expected volatility, expected risk-free rate, and
expected forfeiture rate. Changes to these assumptions could have a
material impact on the Annual Financial Statements.
(f)
Contingencies
The
assessment of contingencies involves the exercise of significant
judgment and estimates of the outcome of future events. In
assessing loss contingencies related to legal proceedings that are
pending against the Company and that may result in regulatory or
government actions that may negatively impact the Company's
business or operations, the Company and its legal counsel evaluate
the perceived merits of the legal proceeding or unasserted claim or
action as well as the perceived merits of the nature and amount of
relief sought or expected to be sought, when determining the
amount, if any, to recognize as a contingent liability or when
assessing the impact on the carrying value of the Company's
assets. Contingent assets are not recognized in the Annual
Financial Statements.
(g)
Fair value
measurement
The
Company measures financial instruments at fair value at each
reporting date. The fair values of financial instruments measured
at amortized cost are disclosed in Note 21
.
Also, from time to time,
the fair values of non-financial assets and liabilities are
required to be determined, e.g., when the entity acquires a
business, completes
14
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
5.
SIGNIFICANT JUDGMENTS, ESTIMATES AND
ASSUMPTIONS
(cont'd...)
5.2
Estimates and Assumptions
(cont'd...)
(g)
Fair value
measurement (cont'd…)
an
asset acquisition or where an entity measures the recoverable
amount of an asset or cash-generating unit at fair value less costs
of disposal. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The
fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their
economic best interest. A fair value measurement of a non-financial
asset takes into account a market participant's ability to
generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would
use the asset in its highest and best use. The Company uses
valuation techniques that are appropriate in the circumstances and
for which sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and minimising the
use of unobservable inputs. Changes in estimates and assumptions
about these inputs could affect the reported fair
value.
6.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
(a)
Restricted cash
equivalents
Restricted
cash equivalents consist of highly liquid investments pledged as
collateral for the Company's credit card and are readily
convertible to known amounts of cash.
(b)
Mineral
properties
Mineral
property assets consist of exploration and evaluation costs. Costs
directly related to the exploration and evaluation of resource
properties are capitalized to mineral properties once the legal
rights to explore the resource properties are acquired or obtained.
These costs include acquisition of rights to explore, license and
application fees, topographical, geological, geochemical and
geophysical studies, exploratory drilling, trenching,
sampling, and activities in relation to evaluating the technical
feasibility and commercial viability of extracting a mineral
resource.
If it
is determined that capitalized acquisition, exploration and
evaluation costs are not recoverable, or the property is abandoned
or management has determined an impairment in value, the property
is written down to its recoverable amount. Mineral properties are
reviewed for impairment when facts and circumstances suggest that
the carrying amount may exceed its recoverable amount.
From
time to time, the Company acquires or disposes of properties
pursuant to the terms of option agreements. Options are exercisable
entirely at the discretion of the optionee and, accordingly, are
recorded as mineral property costs or recoveries when the payments
are made or received. After costs are recovered, the balances of
the payments received are recorded as a gain on option or
disposition of mineral property.
(i)
Title to mineral
properties
Although the
Company has taken steps to verify title to the properties on which
it is conducting exploration and in which it has an interest, in
accordance with industry standards for the current stage of
exploration of such properties, these procedures do not guarantee
the Company's title, nor has the Company insured title.
Property title may be subject to unregistered prior agreements and
non-compliance with regulatory requirements
.
15
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
6.
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(cont'd…)
(b)
Mineral properties
(cont'd…)
(ii) Realization
of mineral property assets
The
investment in and expenditures on mineral property interests
comprise a significant portion of the Company's assets.
Realization of the Company's investment in these assets is
dependent upon the establishment of legal ownership, and the
attainment of successful production from properties or from the
proceeds of their disposal. Resource exploration and development is
highly speculative and involves inherent risks. While the rewards
if an ore body is discovered can be substantial, few properties
that are explored are ultimately developed into profitable
producing mines. There can be no assurance that current exploration
programs will result in the discovery of economically viable
quantities of ore.
The
amounts shown for acquisition costs and deferred exploration
expenditures represent costs incurred to date and do not
necessarily reflect present or future values.
(ii)
Environmental
The
Company is subject to the laws and regulations relating to
environmental matters in all jurisdictions in which it operates,
including provisions relating to property reclamation, discharge of
hazardous material and other matters. The Company may also be held
liable should environmental problems be discovered that were caused
by former owners and operators of its properties and properties in
which it has previously had an interest.
The
Company conducts its mineral exploration activities in compliance
with applicable environmental protection legislation. Other than as
disclosed in Note 17, the Company is not aware of any existing
environmental issues related to any of its current or former
properties that may result in material liability to the
Company.
Environmental
legislation is becoming increasingly stringent and costs and
expenses of regulatory compliance are increasing. The impact of new
and future environmental legislation on the Company's
operations may cause additional expenses and restrictions. If the
restrictions adversely affect the scope of exploration and
development on the mineral properties, the potential for production
on the property may be diminished or negated.
(c)
Equipment
Equipment
is stated at cost less accumulated depreciation and accumulated
impairment losses, if any. The cost of an item of property and
equipment consists of the purchase price, any costs directly
attributable to bringing the asset to the location and condition
necessary for its intended use, and an initial estimate of the
costs of dismantling and removing the item and restoring the site
on which it is located.
Depreciation
of equipment is recorded on a declining-balance basis at the
following annual rates:
Computer
equipment
45%
Furniture
and equipment
20%
Leasehold
improvement
Straight
line / 5 years
Mining
equipment
20%
Vehicles
30%
Right-of-use
asset
Straight
line / term of lease
When
parts of major components of equipment have different useful lives,
they are accounted for as a separate item of
equipment.
16
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
6.
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(cont'd…)
(c)
Equipment
(cont'd…)
The
cost of major overhauls of part of equipment is recognized in the
carrying amount of the item if is probable that the future economic
benefits embodied within the part will flow to the Company, and its
cost can be measured reliably. The carrying amount of the replaced
part is derecognized. The costs of the day-to-day servicing of
equipment are recognized in profit or loss as
incurred.
(d)
Impairment of
non-current assets and Cash Generating Units ("
CGU
")
At the
end of each reporting period, the Company reviews the carrying
amounts of its tangible and intangible assets to determine whether
there is an indication that those assets have suffered an
impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent
of the impairment loss (if any).
Where
it is not possible to estimate the recoverable amount of an
individual asset, the Company estimates the recoverable amount of
the CGU, where the recoverable amount of the CGU is the greater of
the CGU's fair value less costs to sell and its value in use
to which the assets belong. In assessing value in use, estimated
future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of
the time value of money and the risks specific to the
asset.
If the
recoverable amount of an asset (or CGU) is estimated to be less
than its carrying amount, the carrying amount of the asset (or CGU)
is reduced to its recoverable amount. An impairment loss is
recognized immediately in the statement of comprehensive loss,
unless the relevant asset is carried at a revalued amount, in which
case the impairment loss is treated as a revaluation decrease. Each
project or group of claims or licenses is treated as a CGU. The
Company uses its best efforts to fully understand all of the
aforementioned to make an informed decision based upon historical
and current facts surrounding the projects. Discounted cash flow
techniques often require management to make estimates and
assumptions concerning reserves and expected future production
revenues and expenses, which can vary from actual.
Where
an impairment loss subsequently reverses, the carrying amount of
the asset (or CGU) is increased to the revised estimate of its
recoverable amount, such that the increased carrying amount does
not exceed the carrying amount that would have been determined had
no impairment loss been recognized for the asset (or CGU) in prior
years.
(e)
Borrowing
costs
Borrowing
costs directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized as part of the
cost of that asset. Borrowing costs consist of interest and other
costs that an entity incurs in connection with the borrowing of
funds.
Where
funds are borrowed specifically to finance a project, the amount
capitalized represents the actual borrowing costs incurred. Where
surplus funds are available for a short-term from funds borrowed
specifically to finance a project, the income generated from the
temporary investment of such amounts is also capitalized and
deducted from the total capitalized borrowing cost. Where the funds
used to finance a project are from part of general borrowings, the
amount capitalized is calculated using a weighted average of rates
applicable to relevant general borrowings of the Company during the
period. All other borrowing costs are recognized in profit or loss
in the period in which they are incurred.
17
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
6.
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(cont'd…)
(f)
Foreign currency
translation
Transactions
in currencies other than the functional currency are recorded at
the prevailing exchange rates on the dates of the transactions. At
each financial position reporting date, monetary assets and
liabilities denominated in foreign currencies are translated at the
prevailing exchange rates at the date of the consolidated statement
of financial position. Non-monetary items measured in terms of
historical cost in a foreign currency are not retranslated. Gains
and losses arising from this translation are included in the
determination of net gain or loss for the year.
(g)
Revenue
recognition
The
Company recognizes interest income on its cash on an accrual basis
at the stated rates over the term to maturity.
Sales
of coal are recognized when the risks and rewards of ownership pass
to the customer and the price can be measured reliably. Sales
contracts and revenue is recognized based on the terms of the
contract. Revenue is measured at the fair value of the
consideration received, excluding discounts and rebates. Royalties
related to production are recorded in cost of sales. Sales of coal
are generated from incidental coal sales and are recorded net of
associated costs.
(h)
Unit
offerings
Proceeds
received on the issuance of units, consisting of common shares and
warrants, are allocated first to common shares based on the market
trading price of the common shares at the time the units are
priced, and any excess is allocated to warrants.
(i)
Share-based
payments
The
Company has a share purchase option plan that is described in Note
19. The Company accounts for share-based payments using a fair
value-based method with respect to all share-based payments to
directors, officers, employees, and service providers. Share-based
payments to employees are measured at the fair value of the
instruments issued and amortized over the vesting periods.
Share-based payments to non-employees are measured at the fair
value of the goods or services received or if such fair value is
not reliably measurable, at the fair value of the equity
instruments issued. The fair value is recognized as an expense or
capitalized to mineral properties or property and equipment with a
corresponding increase in option reserve. This includes a
forfeiture estimate, which is revised for actual forfeitures in
subsequent periods.
Where
the terms and conditions of options are modified before they vest,
the increase in the fair value of the options, measured immediately
before and after the modification, is also charged to the
consolidated statement of operations over the remaining vesting
period.
Upon
the exercise of the share purchase option, the consideration
received, and the related amount transferred from option reserve
are recorded as share capital.
(j)
Loss per
share
Basic
loss per share is calculated using the weighted average number of
common shares outstanding during the period. The Company uses the
treasury stock method to compute the dilutive effect of options and
warrants. Under this method the dilutive effect on earnings per
share is calculated presuming the exercise of outstanding options
and warrants. It assumes that the proceeds of such exercise would
be used to repurchase common shares at the average market price
during the period. However, the calculation of diluted loss per
share excludes the effects of various conversions and exercise of
options and warrants that would be anti-dilutive. During the year
ended December 31, 2019, the weighted average number of diluted
common shares outstanding includes 190,034 dilutive stock
options.
18
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
6.
SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
(cont'd…)
(k)
Income
taxes
The
Company uses the asset and liability method to account for income
taxes. Deferred income taxes are recognized for the future income
tax consequences attributable to differences between the carrying
values of assets and liabilities and their respective income tax
basis on the statement of financial position date. Deferred income
tax assets and liabilities are measured using the tax rates
expected to be in effect when the temporary differences are likely
to reverse. The effect on deferred income tax assets and
liabilities of a change in tax rates is included in operations in
the period in which the change is enacted or substantively enacted.
The amount of deferred income tax assets recognized is limited to
the amount of the benefit that is probable upon
recovery.
(l)
Provision for
closure and reclamation
The
Company assesses its equipment and mineral property rehabilitation
provision at each reporting date. Changes to estimated future costs
are recognized in the statement of financial position by either
increasing or decreasing the rehabilitation liability and asset to
which it relates if the initial estimate was originally recognized
as part of an asset measured in accordance with IAS 16
Property, Plant and
Equipment
.
The
Company records the present value of estimated costs of legal and
constructive obligations required to restore operations in the
period in which the obligation is incurred. The nature of these
restoration activities includes dismantling and removing
structures; rehabilitating mineral properties; dismantling
operating facilities; closure of plant and waste sites; and
restoration, reclamation and vegetation of affected
areas.
Present
value is used where the effect of the time value of money is
material. The related liability is adjusted each period for the
unwinding of the discount rate and for changes in estimates,
changes to the current market-based discount rate, and the amount
or timing of the underlying cash flows needed to settle the
obligation.
(m)
Financial
instruments
Classification
Financial assets
are classified at initial recognition as either: measured at
amortized cost, FVTPL or fair value through other comprehensive
income ("FVOCI"). The classification depends on the Company's
business model for managing the financial assets and the
contractual cash flow characteristics. For assets measured at fair
value, gains and losses will either be recorded in profit or loss
or OCI. Derivatives embedded in contracts where the host is a
financial asset in the scope of the standard are never separated.
Instead, the hybrid financial instrument as a whole is assessed for
classification. Financial liabilities are measured at amortized
cost, unless they are required to be measured at FVTPL or the
Company has opted to measure at FVTPL.
Measurement
Financial assets
and liabilities at FVTPL are initially recognized at fair value and
transaction costs are expensed in the consolidated statement of
loss and comprehensive loss. Realized and unrealized gains and
losses arising from changes in the fair value of the financial
assets or liabilities held at FVTPL are included in the
consolidated statement of operations and comprehensive loss in the
period in which they arise. Where the Company has opted to
designate a financial liability at FVTPL, any changes associated
with the Company's credit risk will be recognized in OCI. Financial
assets and liabilities at amortized cost are initially recognized
at fair value, and subsequently carried at amortized cost less any
impairment.
Impairment
The
Company assesses on a forward-looking basis the expected credit
losses ("ECL") associated with financial assets measured at
amortized cost, contract assets and debt instruments carried at
FVOCI. The impairment methodology applied depends on whether there
has been a significant increase in credit risk. Please refer to
Note 21 for relevant fair value measurement
disclosures.
19
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
7.
SEGMENTED
INFORMATION
The
Company operates in one operating segment, being the acquisition,
exploration and development of mineral properties. Geographic
segmentation of the Company's non-current assets is as
follows:
December
31, 2019
Canada
USA
Mongolia
Bolivia
Total
Reclamation
deposits
$
-
$
-
$
21,055
$
-
$
21,055
Equipment
12,005
89,826
35,721
21,932
159,484
Mineral
properties
-
8,600,658
-
15,182,226
23,782,884
$
12,005
$
8,690,484
$
56,776
$
15,204,158
$
23,963,423
December
31, 2018
Canada
USA
Mongolia
Bolivia
Total
Reclamation
deposits
$
-
$
-
$
21,055
$
-
$
21,055
Equipment
14,839
22,713
33,440
30,170
101,162
Mineral
properties
-
3,643,720
-
-
3,643,720
$
14,839
$
3,666,433
$
54,495
$
30,170
$
3,765,937
December
31, 2017
Canada
USA
Mongolia
Bolivia
Total
Reclamation
deposits
$
-
$
-
$
21,055
$
-
$
21,055
Equipment
18,376
-
48,364
465,171
531,911
Mineral
properties
-
490,356
-
12,809,550
13,299,906
$
18,376
$
490,356
$
69,419
$
13,274,721
$
13,852,872
8.
CASH
AND CASH EQUIVALENTS
Cash
and cash equivalents and restricted cash equivalents of the Company
are comprised of bank balances and a guaranteed investment
certificate which can be readily converted into cash without
significant restrictions, changes in value or
penalties.
December
31, 2019
December
31, 2018
December
31, 2017
Cash
$
3,017,704
$
804,097
$
4,100,608
Cash
equivalents
-
4,500,000
-
Restricted
cash equivalents
34,500
34,500
34,500
$
3,052,204
$
5,338,597
$
4,135,108
Cash Equivalents
Restricted Cash Equivalents
As at
December 31, 2019, a guaranteed investment certificate of $34,500
(2018 - $34,500, 2017 – $34,500) has been pledged as
collateral for the Company's credit card.
20
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
9.
RECEIVABLES
Trade
receivables are non-interest-bearing and are generally on terms of
30 to 90 days.
December
31, 2019
December
31, 2018
December
31, 2017
Input
tax recoverable
$
20,741
$
36,399
$
10,562
Trade
receivable
195,433
-
24,091
Subscriptions
receivable
30,497
-
-
$
246,671
$
36,399
$
34,653
During
the year ended December 31, 2019, the Company wrote-off $16,304
(2018 - $21,004. 2017 - $61,202) of receivables which are no longer
expected to be recovered.
10.
PREPAID
EXPENSES
December
31, 2019
December
31, 2018
December
31, 2017
General
$
44,613
$
47,215
$
-
Insurance
59,815
57,883
41,029
Environmental
and taxes
6,850
8,789
47,508
Rent
24,489
9,385
11,458
Market
advisors
-
-
40,615
$
135,767
$
123,272
$
140,610
During
the year ended December 31, 2019, the Company wrote-off $51,828
(2018 - $26,234, 2017 - $57,420) of prepaid expenses for which no
future benefit is expected to be received.
11.
MARKETABLE
SECURITIES
Marketable
securities consist of investment in common shares of public
companies and therefore have no fixed maturity date or coupon rate.
The fair value of the listed marketable securities has been
determined directly by reference to published price quotation in an
active market.
As at
and during the year ended December 31, 2019, the Company did not
have marketable securities. During the year ended December 31,
2018, the Company sold all its marketable securities for proceeds
of $162,490 and a realized loss of $91,890. Following the disposal
of the shares, the Company reclassified the cumulative loss
previously recognized in other comprehensive income of $68,840 to
profit and loss on the sale of marketable securities.
The
following table summarized information regarding the
Company's marketable securities as at December 31, 2017,
2018, and 2019:
Marketable
securities
2019
2018
2017
Balance,
beginning of period
$
-
$
205,600
$
176,000
Additions
-
60,940
193,440
Disposals
-
(162,490
)
(153,190
)
Realized
loss on disposal
-
(91,890
)
(22,810
)
Unrealized
gain/(loss) on mark-to-market
-
(12,160
)
12,160
Balance,
end of period
$
-
$
-
$
205,600
21
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
12.
RIGHT-OF-USE
ASSET
During
the first-time application of IFRS 16 to the Company's office
lease, the recognition of a right of use asset was required and the
leased asset was measured at the amount of the lease liability
using the Company's current incremental borrowing rate of
10%. The lease contains no extension or termination options. The
following table presents the right-of-use-asset as at January 1,
2019 and December 31, 2019:
13.
EQUIPMENT
During
the year ended December 31, 2018, the Company wrote-off $425,925 of
mining equipment in Bolivia that was no longer in use. During the
year ended December 31, 2017, the Company wrote-off $159,666 (2016
- $Nil) of equipment in Mongolia that was no longer in
use.
On October 1
0
, 2018, the Company signed a lease agreement (the
"
Lease
") with an arms-length private Mongolian
company (the "
Lessee
") whereby the Lessee plans to perform
mining operations at The Company's Ulaan Ovoo coal mine and
will pay The Company USD2.00 (the "
Production
Royalty
") for every tonne
of coal shipped from the Ulaan Ovoo site
premises.
The
Lessee paid The Company USD100,000 in cash (recorded as other
income on the consolidated statement of operations) as a
non-refundable advance royalty payment and is preparing, at its own
and sole expense, to restart and operate the Ulaan Ovoo mine with
its own equipment, supplies, housing and crew.
The
Lease is valid for 3 years with an annual advance royalty payment
("
ARP
") for the
first year of USD100,000 which was due and paid upon signing, and
USD150,000 and USD200,000 due on the 1st and 2nd anniversary of the
Lease, respectively. The ARP can be credited towards the USD2.00
per tonne Production Royalty payments to be made to The Company as
the Lessee starts to sell Ulaan Ovoo coal.
The 3-year Lease can
be extended upon mutual agreement.
The
impaired value of $Nil for deferred development costs at Ulaan Ovoo
property at December 31, 2019 (2018, 2017 - $Nil) remains
unchanged.
The
following table summarized information regarding the
Company's equipment as at December 31, 2017, 2018, and
2019:
22
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
13. EQUIPMENT
(cont'd…)
Computer
Furniture
&
Mining
Equipment
Equipment
Vehicles
Equipment
Total
Cost
Balance,
December 31, 2016
$
100,221
$
279,213
$
453,854
$
1,534,745
$
2,368,033
Additions
(147
)
(2,383
)
-
-
(2,530
)
Impairment
charge
-
-
(281,162
)
(219,916
)
(501,078
)
Balance,
December 31, 2017
$
100,074
$
276,830
$
172,692
$
1,314,829
$
1,864,425
Accumulated depreciation
Balance,
December 31, 2016
$
94,900
$
181,639
$
339,916
$
833,971
$
1,450,426
Depreciation
for year
1,795
35,434
18,434
167,837
223,500
Impairment
charge
-
-
(228,508
)
(112,904
)
(341,412
)
Balance,
December 31, 2017
$
96,695
$
217,073
$
129,842
$
888,904
$
1,332,514
Carrying amount at December 31, 2017
$
3,379
$
59,757
$
42,850
$
425,925
$
531,911
Cost
Balance,
December 31, 2017
$
100,074
$
276,830
$
172,692
$
1,314,829
$
1,864,425
Additions/Disposals
3,180
2,015
-
24,476
29,671
Impairment
charge
-
-
-
(1,314,829
)
(1,314,829
)
Balance,
December 31, 2018
$
103,254
$
278,845
$
172,692
$
24,476
$
579,267
Accumulated depreciation
Balance,
December 31, 2017
$
96,695
$
217,073
$
129,842
$
888,904
$
1,332,514
Depreciation
for year
1,316
16,351
13,337
3,491
34,495
Impairment
charge
-
-
-
(888,904
)
(888,904
)
Balance,
December 31, 2018
$
98,011
$
233,424
$
143,179
$
3,491
$
478,105
Carrying amount at December 31, 2018
$
5,243
$
45,421
$
29,513
$
20,985
$
101,162
Cost
Balance,
December 31, 2018
$
103,254
$
278,845
$
172,692
$
24,476
$
579,267
Additions
-
-
95,887
-
95,887
Disposals
-
-
(48,973
)
-
(48,973
)
Balance,
December 31, 2019
$
103,254
$
278,845
$
219,606
$
24,476
$
626,181
Accumulated depreciation
Balance,
December 31, 2018
$
98,011
$
233,424
$
143,179
$
3,491
$
478,105
Disposals
-
-
(39,178
)
-
(39,178
)
Depreciation
for year
792
12,445
10,641
3,892
27,770
Balance,
December 31, 2019
$
98,803
$
245,869
$
114,642
$
7,383
$
466,697
Carrying amount at December 31, 2019
$
4,451
$
32,976
$
104,964
$
17,093
$
159,484
23
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
14. MINERAL PROPERTIES
Gibellini
Chandgana
Tal
Khavtgai
Uul
Pulacayo
Paca
Titan
Total
Balance, December 31, 2016
$
-
$
11,186,322
$
3,232,443
$
11,980,943
$
-
$
26,399,708
Additions:
-
Acquisition
cost
$
58,790
$
-
$
-
$
-
$
96,200
$
154,990
Deferred
exploration costs:
-
Licenses,
tax, and permits
74,876
27,190
242,766
-
344,832
Geological
and consulting
272,620
39,362
-
102,592
414,574
Personnel,
camp and general
84,070
2,492
2,492
726,015
815,069
431,566
69,044
245,258
828,607
1,574,475
Impairment
-
(11,255,366
)
(3,477,701
)
-
(96,200
)
(14,829,267
)
Balance, December 31, 2017
$
490,356
$
-
$
-
$
12,809,550
$
-
$
13,299,906
Additions:
Acquisition
cost
$
425,605
$
-
$
-
$
-
$
-
$
425,605
Deferred
exploration costs:
Licenses,
tax, and permits
387,149
1,271
261,168
-
-
649,588
Geological
and consulting
1,509,587
-
-
51,112
-
1,560,699
Personnel,
camp and general
831,023
20,590
3,741
847,538
-
1,702,892
2,727,759
21,861
264,909
898,650
-
3,913,179
Impairment
-
(21,861
)
(264,909
)
(13,708,200
)
-
(13,994,970
)
Balance, December 31, 2018
$
3,643,720
$
-
$
-
$
-
$
-
$
3,643,720
Additions:
Acquisition
cost
$
-
$
-
$
-
$
-
$
-
$
-
Deferred
exploration costs:
Licenses,
tax, and permits
286,158
-
-
-
-
286,158
Geological
and consulting
3,200,773
-
-
970,955
-
4,171,728
Personnel,
camp and general
1,470,007
-
-
503,071
-
1,973,078
4,956,938
-
-
1,474,026
-
6,430,964
Impairment
Recovery
-
-
-
13,708,200
-
13,708,200
Balance, December 31, 2019
$
8,600,658
$
-
$
-
$
15,182,226
$
-
$
23,782,884
24
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
14.
MINERAL PROPERTIES
(cont'd...)
Gibellini Project, Nevada, United States
Gibellini Project
The Gibellini Project consists of a total of 354 unpatented lode
mining claims that include: the Gibellini group of 40 claims, the
VC Exploration group of 105 claims, and the Company group of 209
claims. All the claims are
located in Eureka County, Nevada,
USA.
Gibellini Group
The
Gibellini group of claims was acquired on June 22, 2017, through
lease from the claimant (the "
Gibellini Lessor
") and includes an
area of approximately 771 acres. Under the Gibellini Mineral Lease
Agreement (
the
"
Gibellini
MLA
")
the Company leased the Gibellini group of claims which originally
constituted the Gibellini Project by among other things, agreeing
to pay to the Gibellini Lessor, US$35,000 (paid), and annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed US$120,000 per year), to the average
vanadium pentoxide price of the prior year. Upon commencement of
production, The Company will maintain its acquisition through lease
of the Gibellini group of claims by paying to the Gibellini Lessor,
a 2.5% NSR until a total of US$3,000,000 is paid. Thereafter, the
NSR will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as "production royalty
payments"). All advance royalty payments made, will be
deducted as credits against future production royalty payments. The
lease is for a term of 10 years, which can be extended for an
additional 10 years at The Company's option.
On
April 23, 2018, the Company announced
an amendment to the
Gibellini MLA, whereby
the Company has been granted the right to cause the Gibellini
Lessor of the Gibellini mineral claims to transfer their title to
the claims to The Company. With the amendment, the Company will
have the option to, at any time during the term of the Gibellini
MLA, require the Gibellini Lessor to transfer title over all of the
leased, unpatented lode mining claims (excluding four claims which
will be retained by the Gibellini Lessor (the
"
Transferred
Claims
") to The Company
in exchange for US$1,000,000, to be paid as an advance royalty
payment (the "
Transfer
Payment
"). A credit of
US$99,027 in favour of The Company towards the Transfer Payment is
already paid upon signing of the amendment, with the remaining
US$900,973 portion of the Transfer Payment due and payable by The
Company to the Gibellini Lessor upon completion of transfer of the
Transferred Claims from the Gibellini Lessor to The Company. The
advance royalty obligation and production royalty will not be
affected, reduced or relieved by the transfer of
title.
On June
22, 2019, the Company paid US$120,000 (2018 – US$101,943) of
the annual royalty payment to the Gibellini Lessor.
VC Exploration Group
On July 13, 2017, the Company acquired (through lease under the
mineral lease agreement "
Louie Hill
MLA
") from the
holders (
the
"
Former
Louie
Hill Lessors
")
10 unpatented lode claims totaling
approximately 207 acres that comprised the Louie Hill group of
claims
located
approximately 500 metres south of
the Gibellini group of claims.
These claims were
subsequently abandoned by the holders, and on March 11, 2018 and
March 12, 2018, the Company's wholly owned US subsidiaries,
Vanadium Gibellini Company LLC and VC Exploration (US) Inc., staked
the area within and under 17 new claims totaling approximately 340
gross acres which now collectively comprise the expanded Louie Hill
group of claims.
Under
the Louie Hill MLA, the Company is required to make payments as
follows: cash payment of US$10,000 (paid), annual advance royalty
payments which will be tied, based on an agreed formula (not to
exceed US$28,000 per year), to the average vanadium pentoxide price
for the prior year. Upon commencement of production, the Company
will pay to the Former Louie Hill Lessors, a 2.5% NSR of which,
1.5% of the NSR may be purchased at any time by the Company for
US$1,000,000, leaving the total NSR to be reduced to 1% over the
remaining life of the mine (and referred to thereafter, as
"production royalty payments"). All advance royalty
payments made, will be
25
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
14.
MINERAL PROPERTIES
(cont'd...)
Gibellini Project, Nevada, United States
(cont'd…)
deducted
as credits against future production royalty payments. The lease
will be for a term of 10 years, which can be extended for an
additional 10 years at The Company's option.
On
October 22, 2018, the Company and
Former Louie Hill
Lessors
entered into a royalty
agreement (the "
Royalty
Agreement
") that terminated the Louie Hill MLA and
provides for the Company to pay the following royalties to the
Former Louie Hill
Lessors
as an advance royalty: (i) US$75,000 upon the Company achieving
Commercial Production (as defined in the Royalty Agreement) at its
Gibellini Project; (ii) US$50,000 upon the Company selling,
conveying, transferring or assigning all or any portion of certain
claims defined in the Royalty Agreement to any third party and
(iii) annually upon the anniversary date of July 10, 2018 and the
like day thereafter during the term of the Royalty Agreement: (a)
if the average vanadium pentoxide price per pound as quoted on
www.metalbulletin.com
(the
"
Metal
Bulletin
") or another reliable and reputable industry
source as agreed by the parties, remains below US$7.00/lb during
the preceding 12 months, US$12,500; or (b) if the average vanadium
pentoxide price per pound as quoted on Metal Bulletin or another
reliable and reputable industry source as agreed by the parties,
remains equal to or above US$7.00/lb during the preceding 12
months, US$2,000 x average vanadium pentoxide price per pound up to
a maximum annual advance royalty payment of US$28,000. Further, the
Company will pay to the
Former Louie Hill
Lessors
a production royalty of
2.5% of the net smelter returns of vanadium produced from the
royalty area and sold. The Company has an option to purchase 1.5%
of the 2.5% of the production royalty from the
Former Louie Hill
Lessors
for
US$1,000,000
.
On June
18, 2019, the Company paid US$28,000 (2018 – US$21,491) of
the annual royalty payment to the Louie Hill Lessor.
On February 15, 2018, the Company acquired 105 unpatented lode
mining claims located adjacent to its Gibellini Project through the
acquisition of
1104002 B.C. Ltd. and its Nevada
subsidiary VC Exploration (US) Inc.
("
VC
Exploration
")
by paying a total of
$335,661 in cash and issuing 500,000 Share purchase warrants
(
valued
at
$89,944)
to
arm's-length, private parties.
Each warrant entitles
the holder upon exercise, to acquire one Share of the Company at a
price of $0.50 per Share until February 15, 2021. The acquisition
of the VC Exploration has been accounted for as an asset
acquisition as their activities at the time of the acquisition
consisted of mineral claims only.
The Company Group
During 2017 and 2018, the Company expanded the land position at the
Gibellini Project, by staking a total of 209 new claims immediately
adjacent to the Gibellini Project covering 4091 acres.
Pulacayo Paca Property, Bolivia
The Pulacayo property, a
silver-lead-zinc project
located in southwestern Bolivia, was
acquired on January 2, 2015 through the acquisition of 100% of
Apogee's interest in ASC Holdings Limited and ASC Bolivia
LDC,
which
together, hold ASC Bolivia LDC Sucursal Bolivia
("
ASC
")
, which in turn, holds a joint
venture interest in the Pulacayo Project.
ASC
controls the mining rights to the Pulacayo Project through a joint
venture agreement entered into between itself and the Pulacayo
Ltda. Mining Cooperative on July 30, 2002 (the "
ASC Joint Venture
"). The ASC Joint
Venture has a term of 23 years which commenced the day the ASC
Joint Venture was entered into. Pursuant to the ASC Joint Venture,
ASC is committed to pay monthly rent of US$1,000 to the state-owned
Mining Corporation of Bolivia, COMIBOL and US$1,500 monthly rent to
the Pulacayo Ltda. Mining Cooperative until the Pulacayo Project
starts commercial production.
26
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
During
the year ended December 31, 2018, the Company determined there were
several indicators of potential impairment of the carrying value of
the Pulacayo Paca property. The indicators of potential impairment
were as follows:
14.
MINERAL PROPERTIES
(cont'd...)
Pulacayo Paca Property, Bolivia
(cont'd...)
(i)
change in the
Company's primary focus to the Gibellini
Project;
(ii)
management's
decision to suspend further exploration activities;
and
(iii)
no positive
decision from the Bolivian Government to grant mining production
contract to develop the project.
As
result, in accordance with
IFRS 6,
Exploration for and Evaluation of Mineral
Resources
and
IAS 36, Impairment of Assets
, at
December 31, 2018, the Company assessed the recoverable amount of
the Pulacayo Paca property exploration costs and determined that
its value in use is $nil. As at December 31, 2018, the recoverable
amount of $nil resulted in an impairment charge of $13,708,200
against the value of the deferred exploration costs, which was
reflected on the consolidated statement of operations.
During
the year ended December 31, 2019, the Company assessed whether
there was any indication that the previously recognized impairment
loss in connection with the Pulacayo Paca property
may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:
●
The Company signed
a mining production contract granting the Company the 100%
exclusive right to develop and mine at the Pulacayo Paca
property;
●
The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;
●
The Company re-initiated active exploration and
drilling program on the property
;
●
Completed a
positive final settlement of Bolivian tax dispute (note
27).
As the
Company identified indications that the impairment may no longer
exist, the Company completed an assessment to determine the
recoverable amount of the Pulacayo Paca property.
In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property's fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.
With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.
The
Company also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.
As the
recoverable amount estimated with respect to the above was $31.4
million an impairment recovery of $13,708,200 was recorded during
the year ended December 31, 2019.
Previously Impaired Properties
Chandgana Properties, Mongolia
Chandgana Tal
In
March 2006, the Company acquired a 100% interest in the Chandgana
Tal property, a coal exploration property consisting of two
exploration licenses located in the northeast part of the Nyalga
coal basin, approximately 290 kilometers east of Ulaanbaatar,
Mongolia
.
In
March 2011, the Company obtained a mine permit from Ministry of
Mineral Resources and Energy for the Chandgana Tal coal
project.
27
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
14.
MINERAL PROPERTIES
(cont'd...)
Previously Impaired Properties
(cont'd...)
Khavtgai Uul Property, Mongolia
In
2007, the Company acquired a 100% interest in the Chandgana
Khavtgai property, a coal exploration property consisting of one
license located in the northeast part of the Nyalga coal
basin
.
During
the year ended December 31, 2017, the Company determined there were
several indicators of potential impairment of the carrying value of
the Chandgana Tal and Khavtgai Uul properties. As result, in
accordance with
IFRS 6,
Exploration for and Evaluation of Mineral
Resources
and
IAS 36, Impairment of Assets
, at
December 31, 2017, the Company assessed the recoverable amount of
the Chandgana Properties deferred exploration costs and determined
that its value in use is $nil. As at December 31, 2017, the
recoverable amount of $nil resulted in an impairment charge of
$14,733,067 against the value of the deferred exploration costs,
which was reflected on the consolidated statement of operations. As
at and for the year ended December 31, 2019 and 2018, there were no
changes to the impairment assessment and accordingly all costs
remain impaired.
Titan Property, Ontario, Canada
The
Company has a 100% interest in the Titan property, a
vanadium-titanium-iron project located in Ontario, Canada. In
January 2010, the Company entered into an option agreement with
Randsburg International Gold Corp.
("
Randsburg
")
whereby The Company Resource Corp. had the right to acquire an 80%
interest in the Titan property by paying Randsburg an aggregate of
$500,000 (paid), and by incurring exploration expenditures of
$200,000 by
December
31, 2010. Pursuant to the option agreement, Randsburg has the
option to sell the remaining 20% interest in the Titan property to
the Company for $150,000 cash or 400,000 Shares of the
Company.
At
December 31, 2014, due to market conditions, the Company impaired
the value of the property to $nil. On February 10, 2017, the
Company negotiated with Randsburg to acquire the remaining 20%
title interest of Randsburg in the Titan project
by issuing to Randsburg 20,000 Shares
at a value of $4.81 per Share. As there were no benchmark or market
changes from January 1, 2015 to December 31, 2019, the impaired
value of $nil for Titan property remains
unchanged.
Therefore, the Company recorded an impairment loss of $96,200 on
the acquisition of the remaining title interest in Titan which was
reflected on the consolidated statement of operations and
comprehensive loss during the year ended December 31,
2017.
15.
ACCOUNTS
PAYABLE AND ACCRUED LIABILITIES
Accounts
payable and accrued liabilities of the Company consist of amounts
outstanding for trade and other purchases relating to development
and exploration, along with administrative activities. The usual
credit period taken for trade purchases is between 30 to 90
days.
December
31, 2019
December
31, 2018
December
31, 2017
Trade
accounts payable
$
2,420,392
$
1,536,786
$
1,644,995
Accrued
liabilities
-
100,000
250,988
Lease
liability
32,285
-
-
$
2,452,677
$
1,636,786
$
1,895,983
28
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
16.
LEASE
LIABILITY
As at
December 31, 2019, the Company recorded $52,818 of lease liability.
The incremental borrowing rate for lease liability initially
recognized as of January 1, 2019 was 10%.
The
Company does not face a significant liquidity risk with regard to
its lease liability. Lease liability is monitored within the
Company treasury function. The non-current lease liability matures
in 2021.
17.
PROVISION
FOR CLOSURE AND RECLAMATION
The Company's closure and reclamation costs consists of costs
accrued based on the current best estimate of mine closure and
reclamation activities that will be required at the Ulaan Ovoo site
upon completion of mining activity. These activities include costs
for earthworks, including land re-contouring and re-vegetation,
water treatment and demolition. The Company's provision for
future site closure and reclamation costs is based on the level of
known disturbance at the reporting date, known legal requirements
and estimates prepared by a third-party specialist.
It is not currently possible to estimate the impact on operating
results, if any, of future legislative or regulatory
developments.
Management used a risk-free interest rate of 1.72% (2018 –
1.98%, 2017 – 2.23%) and a risk premium of 7% (2018 –
7%, 2017– 7%) in preparing the Company's provision for
closure and reclamation. Although the ultimate amount of
reclamation costs to be incurred cannot be predicted with
certainty, the total undiscounted amount of estimated cash flows
required to settle the Company's estimated obligations is
$444,000 over the next 6 years. The cash expenditures are expected
to occur over a period of time extending several years after the
projected mine closure of the mineral properties.
December 31,
2019
December 31,
2018
December 31,
2017
Balance, beginning
of year
$
265,239
$
244,323
$
242,374
Accretion
1,551
20,916
1,949
Balance, end of
year
$
266,790
$
265,239
$
244,323
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blank]
29
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
18.
TAX PROVISION
The Company's operations are, in part, subject to foreign tax
laws where interpretations, regulations and legislation are complex
and continually changing. As a result, there are usually some tax
matters in question that may, upon resolution in the future, result
in adjustments to the amount of deferred income tax assets and
liabilities, and those adjustments may be material to the
Company's financial position and results of
operations.
A reconciliation of income taxes at statutory rates with the
reported taxes is as follows:
2019
2018
2017
Loss for the
year
$
17,513,854
$
(18,184,468
)
$
(18,592,981
)
Expected income tax
(recovery)
$
4,729,000
$
(4,910,000
)
$
(4,834,000
)
Change in
statutory, foreign tax, foreign exchange rates and
other
(529,000
)
389,000
1,885,000
Permanent
differences
(4,861,000
)
3,833,000
450,000
Share issue
cost
(103,000
)
(151,000
)
(25,000
)
Adjustment to prior
years provision versus statutory tax returns and expiry of
non-capital losses
1,205,000
12,000
(118,000
)
Change in
unrecognized deductible temporary differences
(441,000
)
827,000
2,642,000
Total income tax
expense (recovery)
$
-
$
-
$
-
In September 2017, the British Columbia (BC) Government proposed
changes to the general corporate income tax rate to increase the
rate from 11% to 12% effective January 1, 2018 and onwards. This
change in tax rate was substantively enacted on October 26, 2017.
The relevant deferred tax balances have been remeasured to
reflect the increase in the Company's combined Federal and
Provincial (BC) general corporate income tax rate from 26% to
27%.
The significant components of deductible and taxable temporary
differences, unused tax losses and unused tax credits that have not
been included on the consolidated statements of financial position
are as follows:
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blank]
30
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE
CAPITAL
(a)
Authorized
The
authorized share capital consists of an unlimited number of common
shares without par value (the "
Shares
"). There are no authorized
preferred shares.
On
August 8, 2018, the Company
completed a common share split on the basis of ten (10) new Shares,
options and warrants for every one (1) old Share, option and
warrant outstanding (the "
Split
").
All information with
respect to the number of Shares and issuance prices for the time
periods prior to the Split was restated to reflect the Share
Consolidation and the Split.
(b)
Equity
issuances
During the year ended December 31, 2019
Private Placements
On September 6, 2019, the Company closed its non-brokered private
placement for $2,600,000 through the issuance of 13,000,0000 Shares
at a price of $0.20 per Share. The Company paid $15,209 and issued
525,000 Shares as a finder's fee valued at $105,000.
$175,000 of the private placement was for prepaid consulting fees
for the Company's executive chairman, of which $35,000 is
included in prepaid expenses as at December 31, 2019 and $41,503
for services. Included in accounts receivable as at December 31,
2019 is $30,497 of subscriptions receivable.
On October 18, 2019, the Company closed
its non-brokered
private placement for gross proceeds of $3,900,000 through the
issuance of 9,750,000 Shares at a price of $0.40 per Share. Also,
the Company issued 654,500 Shares as a finder's fee valued at
$261,800.
Debt Settlement
On
October 9, 2019, the Company issued 104,951 Shares with a value of
$43,030, to its directors to settle director fees debts owing to
them.
Exercise of Stock Options and Warrants
During
the year ended December 31, 2019, the Company issued 622,500 and
651,430 Shares on the exercise of stock options and warrants
respectively for total proceeds of $424,822
.
Share Bonus to Personnel
During
the year ended December 31, 2019,
the Company issued
500,000 sign-on bonus Shares with a fair value of $0.23 per Share
to an officer valued at $115,000.
Share Compensation for Services
On
September 26, 2019, the Company issued 175,000 Shares valued at
$59,500 for consulting services.
During the year ended December 31, 2018
Private Placements
On August 14, 2018, the Company closed its non-brokered private
placement for gross proceeds of $1,137,197 through the issuance of
4,061,417 units of The Company. Each unit is comprised of one Share
and one Share purchase warrant. Each warrant entitles the holder to
purchase one additional Share of the Company at an exercise price
of $0.40 for a period of three years from the closing of the first
tranche of the placement.
31
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE CAPITAL
(cont'd…)
(b)
Equity issuances
(cont'd…)
During the year ended December 31, 2018
(cont'd…)
Short Form Prospectus Offering
On November 22, 2018, the Company closed its bought deal financing
for gross proceeds of $5,520,000. The Company entered into an
agreement with BMO Nesbitt Burns Inc. ("
BMO
"), under which BMO agreed to buy on a
bought deal basis 12,000,000 Shares, at a price of $0.46 per
share
.
The shares were offered by way of a
short form prospectus in each of the provinces and territories of
Canada, except Québec. The Company incurred $560,576 in cash
Share issuance costs.
Exercise of Stock Options and Warrants
During
the year ended December 31, 2018, the Company issued 87,500 and
3,445,420 Shares on the exercise of stock options and warrants
respectively for total proceeds of $1,362,317
.
Share Bonus to Personnel
On
October 10, 2018,
the
Company issued 1,000,
000
Shares with a fair value of
$0.35 per Share as a bonus to its new CEO included in Salaries and
benefits.
During the year ended December 31, 2017
Private Placements
On April
12, 2017, the Company closed a non-brokered private
placement involving the issuance of 1,032,500 units (at a price of
$0.40 per unit) for gross proceeds of $413,000. Each unit consists
of one Share and one Share purchase warrant. Each Share purchase
warrant entitles the holder to acquire an additional Share at a
price of $0.50 per Share for a period of five years from the date
of issuance. The Company paid in cash, finder's fees totaling
$1,280.
On
September 20, 2017, the Company closed the first tranche of a
non-brokered private placement involving the issuance of
6
,
679
,
68
0
units and 6
,
290
,000
special warrants (the
"
Special
Warrants
") at a price of $
0
.35 per each unit and
Special Warrant and raised gross proceeds of $4,539,390.  Each
unit consisted of one Share and one half of one Share purchase
warrant. Each first tranche warrant entitles the holder to purchase
one additional Share at an exercise price of $0.40 for a period of
three years from the date of closing of the first tranche of the
placement. Each Special Warrant was exercisable for one unit at no
additional cost to the holder.
In connection with the
first tranche of the placement, the Company paid finder's
fees of $30,606 and issued 870
,
13
0
finder's Special
Warrants,
which
were exercisable on identical terms as those Special Warrants
issued to subscribers through the first tranche of the
placement.
On
October 16, 2017, the Company closed the second and final tranche
of the placement involving the issuance of 1
,
165
,
78
0
units and 4
,
143
,
71
0
Special Warrants at a price
of $0.35 per each unit and Special Warrant and raised gross
proceeds of $1,858,325. Each unit consists of one Share and one
half of one warrant. Each second tranche warrant entitles the
holder to purchase one additional Share of the Company at an
exercise price of $0.40 for a period of three years from the date
of closing of the second tranche of the placement. In connection
with the second tranche of the placement, the Company paid
finder's fees of $56,020 and issued 93
,
27
0
finder's Special
Warrants, which were exercisable on identical terms as those
Special Warrants issued to subscribers through the second tranche
of the placement.
32
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
The
total subscription proceeds of $3,651,800, which were raised from
the sale of the Special Warrants under the placement, were held in
an escrow account with the Company's Transfer Agent pending
shareholder approval for the issuance of the Units underlying the
Special Warrants.  TSX and shareholder approval for the
issuance of the
19.
SHARE CAPITAL
(cont'd…)
(b)
Equity issuances
(cont'd…)
During the year ended December 31, 2017
(
cont'd…)
Private Placements
(
cont'd…)
Units
underlying the Special Warrants was obtained on December 15,
2017.  On December 18, 2017, the Company issued 11
,
397
,
11
0
units underlying an
equivalent number of Special Warrants previously issued under the
placement.  On December 18, 2017, the Special Warrants
subscription proceeds, previously held in escrow, were released to
the Company.
The
finder's Special Warrants have been valued at $0.35 each
based upon the concurrent financing price of the placement to which
they relate. The Company has recorded the fair value of the
finder's warrants as share issuance costs.
Debt Settlements
On January 12, 2017,
the Company issued 3,000,000 Shares
with a value of $1,599,000 to Mr. Lee pursuant a Debt Settlement
Agreement with Linx to settle $900,000 of the outstanding balance
owing by the Company to Linx under the Credit Facility. The Company
recorded a loss of $699,000 to account for the difference in the
fair value of the Company's shares on the settlement date and
the debt settled.
On June
13, 2017, the Company issued 596,590 units ("
Debt Settlement Units1
") with a
value of $267,869, to certain of its directors and officers to
settle various debts owing to them totalling $238,636 pursuant to
the terms of debt settlement agreements entered with those
directors and officers. Each Debt Settlement Unit1 is comprised of
one Share and one Share purchase warrant of the Company entitling
the holder thereof to purchase, upon exercise of a warrant, one
additional Share at a price of $0.50 per Share for a period of five
years from the date of issuance of the Debt Settlement Units1. The
Company recorded a loss of $29,233 to account for the difference in
the fair value of the Company's shares on the settlement date
and the debt settled.
On
December 18, 2017, the Company issued 422,540 units
("
Debt Settlement
Units2
") with a value of $172,400, to certain of its
directors and officers to settle various debts owing to them
totalling $147,891 pursuant to the terms of debt settlement
agreements entered with those directors and officers. Each Debt
Settlement Unit2 is comprised of one Share and one Share purchase
warrant of the Company entitling the holder thereof to purchase,
upon exercise of a warrant, one additional Share at a price of
$0.40 per Share for a period of three years from the date of
issuance of the Debt Settlement Units2. The Company recorded a loss
of $24,509 to account for the difference in the fair value of the
Company's shares on the settlement date and the implied value
from the debt settled.
Shares Issued for Mineral Properties
On
February 10, 2017, the Company acquired the remaining 20% title
interest of Randsburg (Note 13) in the patented claims that
comprise the Titan project
by issuing to Randsburg 200,000 Shares
at a value of $0.48 per Share.
Share Bonus to Personnel
On
January 12, 2017,
the
Company issued 390
,000
Shares with a fair value of
$0.49 per Share as a bonus to its directors, officers and
consultants.
Share Compensation for Services
On December 18, 2017, the Company issued 984,200 units with a fair
value of $0.35 per unit, to Skanderbeg Capital Advisors Inc.
("
Skanderbeg
(the
"
Skanderbeg
Units
")
.
The
Company
entered into a consulting agreement
with Skanderbeg to explore and evaluate strategic alternatives to
maximize value for The Company's non-core
assets.
33
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE CAPITAL
(cont'd…)
(b)
Equity issuances
(cont'd…)
During the year ended December 31, 2017
(
cont'd…)
Share Compensation for Services
(cont'd…)
Each
Skanderbeg
Unit consists of one Share and one half of one Share purchase
warrant. Each warrant entitles the holder to acquire an additional
Share at a price of $0.40 per Share for a period of three years
from the date of issuance.
Exercise of Stock Options and Warrants
During
the year ended December 31, 2017, the Company issued
126
,
87
0
and 15
0
,000
Shares on the exercise of stock options and warrants respectively
for total proceeds of $110,685.
(c)
Share-based
compensation plan
The
Company has a 20% fixed equity-based compensation plan in place, as
approved by the Company's shareholders on June 2, 2016 (the
"
2016 Plan
"),
amended on June 13, 2017 and subsequently amended at the
Company's annual general meeting of shareholders held on
September 12, 2019 (the "
Amended 2016 Plan
"). Under the
Amended 2016 Plan the Company may grant stock options, bonus shares
or stock appreciation rights to acquire the equivalent of a maximum
of 14,372,419 of the Company's Common Shares. All stock
options and other share-based awards granted by the Company, or to
be granted by the Company, since the implementation of the Amended
2016 Plan will be issued under, and governed by, the terms and
conditions of the Amended 2016 Plan.  The stock option vesting
terms are determined by the Board of Directors on the date of grant
with a maximum term of 10 years.
During the year ended December 31, 2019, the Company granted
3,965,000 incentive stock options to its directors, officers,
employees and consultants.
The options are exercisable at an
exercise prices ranging from $0.20 to $0.44 per Share and expiry
dates ranging from April 1, 2024 to November 15, 2024 and vest at
12.5% per quarter for the first two years following the date of
grant.
During the year ended December 31, 2018, the Company granted
4,040,000 incentive stock options to its directors, officers,
employees and consultants.
The options are exercisable at an
exercise prices ranging from $0.22 to $0.65 per Share and expiry
dates ranging from February 20, 2023 to November 14, 2023 and vest
at 12.5% per quarter for the first two years following the date of
grant.
During
the year ended December 31, 2017, the Company granted 4,080,000
incentive stock options to its directors, officers, employees and
consultants.
The
options are exercisable at an exercise prices ranging from $0.33 to
$0.49
per Share and expiry dates ranging from January 12, 2022 to
November 6, 2022 and vest at 12.5% per quarter for the first two
years following the date of grant.
The
following is a summary of the changes in the Company's stock
options from December 31, 2016 to December 31, 2019:
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blank]
34
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE CAPITAL
(cont'd…)
(c)
Share-based
compensation plan (cont'd…)
Number
of Options
Weighted
Average Exercise Price
Outstanding,
December 31, 2016
4,608,140
$
0.64
Granted
4,080,000
$
0.38
Expired
(312,930
)
$
2.08
Exercised
(126,870
)
$
0.40
Outstanding,
December 31, 2017
8,248,340
$
0.46
Granted
4,040,000
$
0.31
Expired
(349,720
)
$
1.21
Cancelled
(1,815,120
)
$
0.45
Forfeited
(445,000
)
$
1.04
Exercised
(87,500
)
$
0.28
Outstanding,
December 31, 2018
9,591,000
$
0.34
Granted
3,965,000
$
0.31
Expired
(315,000
)
$
0.65
Cancelled
(2,247,000
)
$
0.32
Forfeited
(794,000
)
$
0.54
Exercised
(622,500
)
$
0.28
Outstanding,
September 30, 2019
9,577,500
$
0.31
As of
December 31, 2019, the following the Company stock options were
outstanding:
Exercise
Expiry
Options
Outstanding
Exercisable
Unvested
Price
Date
December
31
December
31,
December
31
December
31
2019
2018
2019
2019
$0.33
November
15, 2024
100,000
-
12,500
87,500
$0.44
November
1, 2024
1,610,000
-
201,250
1,408,750
$0.20
July
29, 2024
1,565,000
-
391,250
1,173,750
$0.21
April
1, 2024
500,000
-
187,500
312,500
$0.65
November
14, 2023
-
200,000
-
-
$0.33
October
17, 2023
705,000
940,000
352,500
352,500
$0.26
October
10, 2023
-
550,000
-
-
$0.22
July
23, 2023
400,000
400,000
250,000
150,000
$0.31
May
1, 2023
150,000
200,000
112,500
37,500
$0.28
April
6, 2023
862,500
1,225,000
646,875
215,625
$0.31
February
20, 2023
200,000
200,000
175,000
25,000
$0.35
September
1, 2022
980,000
1,250,000
980,000
-
$0.33
June
12, 2022
805,000
1,225,000
805,000
-
$0.49
January
12, 2022
620,000
820,000
620,000
-
$0.20
June
2, 2021
990,000
1,420,000
990,000
-
$0.50
June
22, 2020
30,000
311,000
30,000
-
$0.50
April
7, 2020
60,000
535,000
60,000
-
$0.65
May
1, 2019
-
315,000
-
-
9,577,500
9,591,000
5,814,375
3,763,125
35
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE CAPITAL
(cont'd...)
(c)
Share-based
compensation plan (cont'd…)
Share-based
payment expenses resulting from stock options are amortized over
the corresponding vesting periods. During the year ended December
31, 2019, 2018 and 2017, the share-based payment expenses were
calculated using the following weighted average
assumptions:
Year
ended December 31,
2019
2018
2017
Risk-free
interest rate
1.54
%
1.77
%
1.25
%
Expected
life of options in years
4.45
4.40
4.4
Expected
volatility
132.75
%
135.71
%
133.55
%
Expected
dividend yield
Nil
Nil
Nil
Expected
forfeiture rate
12
%
12
%
12
%
Weighted
average fair value of options granted during the
period
$
0.31
$
0.32
$
0.32
The
expected volatility used in the Black-Scholes option pricing model
is based on the historical volatility of the Company's
shares
.
The
expected forfeiture rate is based on the historical forfeitures of
options issued.
Share-based
payments charged to operations and assets were allocated between
deferred mineral properties, and general and administrative
expenses. Share-based payments are allocated between being either
capitalized to deferred exploration costs where related to mineral
properties or expensed as general and administrative expenses where
otherwise related to the general operations of the
Company.
For the
year ended December 31, 2019, 2018, and 2017, share-based payments
were recorded as follows:
On July
29, 2019, further to the voluntary forfeiture of share options held
by certain directors, officers, and employees with expiry dates on
April 7, 2020, June 22, 2020, and November 14, 2023, at exercise
prices ranging
from
$0.50 to $0.65, the Company granted 1,275,000 new stock options to
such individuals with an expiry date of July 29, 2024 at an
exercise price of $0.20 per Share subject to a two-year vesting
schedule whereby 12.5% per quarter following the date of grant. As
at December 31, 2019, the re-issuing of these options had been
approved by the TSX, but they had not been approved by the
shareholders; consequently, these options were not valued. See Note
27.
(d)
Share purchase
warrants
The
following is a summary of the changes in The Company's share
purchase warrants from December 31, 2016 to
December 31
,
2019:
36
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
19.
SHARE CAPITAL
(cont'd...)
(d)
Share purchase
warrants (cont'd...)
Number
of Warrants
Weighted
Average Exercise Price
Outstanding,
December 31, 2016
13,480,600
$
0.47
Issued
12,453,680
$
0.41
Exercised
(150,000
)
$
0.40
Expired
(26,250
)
$
0.70
Outstanding,
December 31, 2017
25,758,030
$
0.44
Issued
5,061,417
$
0.40
Exercised
(3,445,420
)
$
0.39
Expired
(56,000
)
$
0.40
Outstanding,
December 31, 2018
27,318,027
$
0.44
Exercised
(651,430
)
$
0.38
Outstanding,
December 31, 2019
26,666,597
$
0.44
On February 15, 2018, the Company issued 500,000 Share purchase
warrants as a part of consideration for mining claims acquisition
(Note 13)
. The fair value of $89,944 of the issued warrants
determined using the Black-Scholes option pricing model using the
following assumptions:
(1) a risk-free interest rate of
1.9%; (2) warrant expected life of three years; (3) expected
volatility of 116%, and (4) dividend yield of
nil.
On April 23
,
2018, the Company issued 500,000 Share
purchase warrants as a part of consideration for services related
to the Gibellini Project.
The fair value of $92,000 of the
issued warrants determined using the Black-Scholes option pricing
model using the following assumptions:
(1) a risk-free interest rate of 2%;
(2) warrant expected life of three years; (3) expected volatility
of 97.4%, and (4) dividend yield of nil.
As of
December 31
,
2019, the following The Company share purchase warrants were
outstanding:
Number
of warrants
Exercise
Price
Expiry
Date
at
December 31, 2019
at
December 31, 2018
$0.50
June
13, 2022
596,590
596,590
$0.50
April
12, 2022
1,032,500
1,032,500
$0.40
January
13, 2022
499,990
499,990
$0.44
August
29, 2021
1,013,670
1,013,670
$0.40
August
13, 2021
198,237
198,237
$0.40
July
6, 2021
3,863,180
3,863,180
$0.40
June
2, 2021
7,500,000
7,500,000
$0.30
April
23, 2021
-
100,000
$0.50
February
15, 2021
500,000
500,000
$0.40
January
25, 2021
650,000
650,000
$0.40
December
18, 2020
211,250
211,250
$0.70
November
13, 2020
625,000
625,000
$0.40
October
16, 2020
2,533,020
2,533,020
$
0.70
September
30, 2020
1,112,000
1,112,000
$0.40
September
20, 2020
3,983,490
4,534,920
$0.60
June
24, 2020
1,147,670
1,147,670
$0.50
May
22, 2020
1,200,000
1,200,000
26,666,597
27,318,027
37
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
20.
CAPITAL
RISK MANAGEMENT
Management
considers its capital structure to consist of share capital, share
purchase options and warrants. The Company manages its capital
structure and makes adjustments to it, based on the funds available
to, and required by the Company in order to support the
acquisition, exploration and development of mineral properties. The
Board of Directors does not establish quantitative returns on
capital criteria for management. In order to facilitate the
management of its capital requirement, the Company prepares annual
expenditure budgets that are updated as necessary depending on
various factors. The annual and updated budgets are approved by the
Board of Directors.
The
properties, to which the Company currently has an interest in, are
in the exploration stage; as such, The Company is dependent on
external financing to fund its activities. In order to carry out
the planned exploration and development and pay for administrative
costs, The Company will spend its existing working capital and
raise additional amounts as needed. There were no changes in
managements approach to capital management during the year ended
December 31, 2019. Neither the Company nor its subsidiaries are
subject to externally imposed capital requirements.
21.
FAIR
VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
Fair Value Measurements
Fair value hierarchy
Fair
value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market
participants at the measurement date. The fair value hierarchy
establishes three levels to classify the inputs to valuation
techniques used to measure fair value. The Company utilizes a fair
value hierarchy that prioritizes the inputs to valuation techniques
used to measure fair value as follows:
Level 1
– quoted prices (unadjusted) in active markets for identical
assets or liabilities;
Level 2
– inputs are quoted prices in markets that are not active,
quoted prices for similar assets or liabilities in active markets,
inputs other than quoted prices that are observable for the asset
or liability (for example, interest rate and yield curves
observable at commonly quoted intervals, forward pricing curves
used to value currency and commodity contracts and volatility
measurements used to value option contracts), or inputs that are
derived principally from or corroborated by observable market data
or other means;and
Level 3
– inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The
fair value hierarchy gives the highest priority to Level 1 inputs
and the lowest priority to Level 3 inputs. The following table sets
forth The Company's financial assets measured at fair value
by level within the fair value hierarchy
.
Level
1
Level
2
Level
3
Total
Financial
assets
Cash
and cash equivalents, December 31, 2019
$
3,017,704
$
-
$
-
$
3,017,704
Cash
and cash equivalents, December 31, 2018
$
5,304,097
$
-
$
-
$
5,304,097
Cash
and cash equivalents, December 31, 2017
$
4,100,608
$
-
$
-
$
4,100,608
Categories of financial instruments
The
Company considers that the carrying amount of all its financial
assets and financial liabilities measured at amortized cost
approximates their fair value due to their short term nature.
Restricted cash equivalents approximate fair value due to the
nature of the instrument. The Company does not offset financial
assets with financial liabilities. There were no transfers between
Level 1, 2 and 3 for the year ended December 31, 2019.
38
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
The
Company's financial assets and financial liabilities are
categorized as follows:
21.
FAIR VALUE MEASUREMENTS AND FINANCIAL
INSTRUMENTS
(cont'd...)
Categories of financial instruments
(cont'd...)
December 31,
2019
December 31,
2018
December 31,
2017
Fair
value through profit or loss
Cash
$
3,017,704
$
5,304,097
$
4,100,608
Fair
value through other comprehensive income
Marketable
securities
$
-
$
-
$
205,600
Amortized
cost
Receivables
$
246,671
$
36,399
$
34,653
Restricted
cash equivalents
$
34,500
$
34,500
$
34,500
$
3,298,875
$
5,374,996
$
4,375,361
Amortized
cost
Accounts payable
and accrued liabilities
$
2,420,392
$
1,636,786
$
1,895,983
Lease
liability
$
52,818
$
-
$
-
$
2,473,210
$
1,636,786
$
1,895,983
22.
FINANCIAL
RISK MANAGEMENT DISCLOSURES
(a)
Liquidity
risk
Liquidity
risk is the risk that an entity will be unable to meet its
financial obligations as they fall due. The Company manages
liquidity risk by preparing cash flow forecasts of upcoming cash
requirements. As at December 31, 2019, the Company had a cash and
cash equivalents balance of $3,017,704 (December 31,
2018
–
$5,304,097, December 31, 2017
– $4,100,608). As
at December 31, 2019 the Company had accounts payable and accrued
liabilities of $2,452,677 (December 31, 2018
- $1,636,786, December
31, 2017
-
$1,895,983), which have contractual maturities of 90 days or
less.
The
Company has a planning and budgeting process in place by which it
anticipates and determines the funds required to support normal
operation requirements as well as the growth and development of its
mineral property interests. The Company coordinates this planning
and budgeting process with its financing activities through the
capital management process in normal circumstances.
The
following table details the Company's current and expected
remaining contractual maturities for its financial liabilities with
agreed repayment periods. The table is based on the undiscounted
cash flows of financial liabilities.
0 to 6
months
6 to 12
months
Total
Accounts
payable and accrued liabilities
As
at December 31, 2019
$
2,452,677
$
-
$
2,452,677
As
at December 31, 2018
$
1,636,786
$
-
$
1,636,786
As
at December 31, 2017
$
1,895,983
$
-
$
1,895,983
Lease
liability as at December 31,2019
$
16,143
$
16,143
$
32,285
(b)
Credit
risk
Credit
risk is the risk that one party to a financial instrument will fail
to discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and cash equivalents, restricted cash
equivalents and receivables, net of allowances. The carrying amount
of financial assets included on the statements of financial
position represents the maximum credit exposure.
39
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
22.
FINANCIAL RISK MANAGEMENT DISCLOSURES
(cont'd...)
(c)
Market
risk
(i)
Interest rate
risk
Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company's cash and cash equivalents and restricted cash
equivalents primarily include highly liquid investments that earn
interest at market rates that are fixed to maturity. Due to
the short
‐
term nature of these financial instruments, fluctuations in market
rates do not have significant impact on the fair values of the
financial instruments as of December 31, 2019. The Company manages
interest rate risk by maintaining an investment policy that focuses
primarily on preservation of capital and liquidity.
(ii) Foreign
currency risk
The
Company is exposed to foreign currency risk to the extent that
monetary assets and liabilities held by the Company are not
denominated in Canadian dollars.
The
Company has exploration and development projects in Mongolia and
Bolivia and undertakes transactions in various foreign currencies.
The Company is therefore exposed to foreign currency risk arising
from transactions denominated in a foreign currency and the
translation of financial instruments denominated in US
dollars
,
Mongolian tugrik, and Bolivian boliviano into its functional and
reporting currency, the Canadian dollar.
Based
on the above, net exposures as at December 31, 2019, with other
variables unchanged, a 10% (December 31, 2018 – 10%, December
31, 2017 – 10%) strengthening (weakening) of the Canadian
dollar against the Mongolian tugrik would impact net loss with
other variables unchanged by $144,000. A 10% strengthening
(weakening) of the Canadian dollar against the Bolivian boliviano
would impact net loss with other variables unchanged by
$2
,000
. A 10%
strengthening (weakening) of the US dollar against the Canadian
dollar would impact net loss with other variables unchanged by
$60,000. The Company currently does not use any foreign exchange
contracts to hedge this currency risk.
(ii)
Commodity and
equity price risk
Commodity price risk is defined as
the potential adverse impact on earnings and economic value due to
commodity price movements and volatilities.
Commodity prices
fluctuate on a daily basis and are affected by numerous factors
beyond the Company's control. The supply and demand for these
commodities, the level of interest rates, the rate of inflation,
investment decisions by large holders of commodities including
governmental reserves and stability of exchange rates can all cause
significant fluctuations in prices. Such external economic factors
are in turn influenced by changes in international investment
patterns and monetary systems and political developments.
The Company is also
exposed to price risk with regards to equity prices. Equity price
risk is defined as the potential adverse impact on the
Company's earnings due to movements in individual equity
prices or general movements in the level of the stock
market.
The
Company closely monitors commodity prices, individual equity
movements and the stock market to determine the appropriate course
of action to be taken by the Company. Fluctuations in value may be
significant.
23.
RELATED
PARTY DISCLOSURES
During
the year ended December 31, 2019, the Company had related party
transactions with the following companies, related by way of
directors and key management personnel:
●
Linx Partners Ltd.,
a private company controlled by John Lee, Director, CEO and
Executive Chairman of Prophecy, provides management and consulting
services to the Company.
●
MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, Director of The
Company, provides consulting services to the Company.
40
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
23.
RELATED PARTY DISCLOSURES
(cont'd...)
●
Sophir Asia Ltd., a
private company controlled by Masa Igata, Director of The Company,
provides consulting services to the Company.
A
summary of related party transactions by related party is as
follows:
Year
Ended December 31,
Related
parties
2019
2018
2017
Directors
and officers
$
1,685,242
$
1,265,152
$
307,425
Linx
Partners Ltd.
371,000
401,044
363,781
MaKevCo
Consulting Inc.
21,400
21,200
23,600
Sophir
Asia Ltd.
19,600
19,100
19,700
$
2,097,242
$
1,706,496
$
714,506
A
summary of the transactions by nature among the related parties is
as follows:
Year
Ended December 31,
Related
parties
2019
2018
2017
Consulting
and management fees
$
218,500
$
268,456
$
247,525
Directors'
fees
103,805
70,378
60,600
Mineral
properties
1,171,585
631,610
201,875
Salaries
603,352
736,052
204,506
$
2,097,242
$
1,706,496
$
714,506
As at
December 31, 2019, amounts due to related parties were $30,533
(December 31, 2018 - $4,634), (December 31, 2017 - $160,503) and
included in accounts payable and accrued liabilities.
During
the years ended December 31, 2012 and 2013, the Company shared
administrative assistance, office space, and management with Nickel
Creek Platinum Corp. ("
Nickel
") pursuant to a Service
Agreement dated January 1, 2012, consisting of fixed monthly fees
of $40,000. During the year ended December 31, 2018, the Company
received $50,000 as a debt settlement in satisfaction of an amount
owing from Nickel for services rendered to Nickel and expenses
incurred on behalf of Nickel, which was reflected on the
consolidated statement of operations.
24.
KEY
MANAGEMENT PERSONNEL COMPENSATION
Key
management personnel are those persons having authority and
responsibility for planning, directing and controlling the
activities of the Company, including directors of the
Company.
Year
Ended December 31,
Key
Management Personnel
2019
2018
2017
Salaries
and short term benefits
$
696,751
$
775,064
$
204,506
Directors'
fees
103,805
70,378
60,600
Share-based
payments
431,037
621,339
596,232
$
1,231,593
$
1,466,781
$
861,338
41
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
25.
SUPPLEMENTAL
CASH FLOW INFORMATION
Year
Ended December 31
2019
2018
2017
Supplementary
information
Interest
paid
$
-
$
-
$
21,066
Non-Cash Financing
and Investing Activities
Shares issued to
pay credit facility
$
-
$
-
$
900,000
Shares issued on
acquisition of mineral property
$
-
$
-
$
96,200
Bonus shares and
shares
$
115,000
$
-
$
190,320
Shares for
services
$
241,003
$
-
$
-
Shares issued to
settle debt
$
43,030
$
-
$
386,527
Shares issued
recorded as prepaid expenses
$
35,000
$
-
$
-
Subscriptions
receivable
$
30,497
$
-
$
-
Warrants issued for
mineral property
$
-
$
181,944
$
-
Depreciation
included in mineral property
$
3,487
$
27,387
$
216,653
Equipment
expenditures included in accounts payable
$
472,213
$
489,890
$
580,634
Fair value
loss/gain on marketable securities
$
-
$
12,160
$
12,160
Mineral property
expenditures included in accounts payable
$
1,252,796
$
1,067,747
$
753,248
Share-based
payments capitalized in mineral properties
$
119,028
$
205,057
$
227,979
Reclassification of
contributed surplus on exercise of options
$
153,845
$
15,350
$
14,567
Reclassification of
contributed surplus on exercise of warrants
$
28,478
$
132,453
$
10,650
26.
COMMITMENTS
Except
as disclosed elsewhere in these financial statements, the Company
has the following financial obligations in the ordinary course of
business:
2020
2021
2022
Total
Office Lease
Obligations
$
45,489
$
24,574
$
9,540
$
79,603
$
45,489
$
24,574
$
9,540
$
79,603
27.
CONTINGENCIES
ASC tax claim
On
January 2, 2015, the Company acquired ASC Holdings Limited and ASC
Bolivia LDC (which together, hold ASC Bolivia LDC Sucursal Bolivia,
which in turn, held Apogee Silver Ltd.'s ("
Apogee
") joint venture interest in
the Pulacayo Project) and Apogee Minerals Bolivia S.A. Pursuant to
the terms of the Agreement, the Company agreed to assume all
liabilities of these former Apogee subsidiaries, including legal
and tax liabilities associated with the Pulacayo Project. 
During Apogee's financial year ended June 30, 2014, it
received notice from the Servicio de Impuestos Nacionales, the
national tax authority in Bolivia, that ASC Bolivia LDC Sucursal
Bolivia, now the Company's wholly-owned subsidiary, owed
approximately Bs42,000,000 in taxes, interest and penalties
relating to a historical tax liability in an amount originally
assessed at approximately $760,000 in 2004, prior to Apogee
acquiring the subsidiary in 2011.
Apogee
disputed the assessment and disclosed to the Company that it
believed the notice was improperly issued.  The Company
continued to dispute the assessment and hired local legal counsel
to pursue an appeal of the tax authority's assessment on both
substantive and procedural grounds. The Company received a positive
Resolution issued by the Bolivian Constitutional Court that
among other things, declared null and void the
previous
Resolution
of the Bolivian Supreme Court issued in 2011 (that imposed the tax
liability on ASC Bolivia LDC Sucursal Bolivia) and sent the matter
back to the Supreme court to consider and issue a new
resolution.
42
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
27.
CONTINGENCIES
(cont'd...)
ASC tax claim
(cont'd...)
On November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary as not
proven.
The Resolution is final and binding. Hence neither the Company nor
the Company's Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.
During
the year ended December 31, 2019, the Company and legal counsel
reassessed the status of tax rulings and determined that the
probability of a re-issuance of a tax claim against the Company in
connection with the above was remote. As a result, the Company has
written off the tax liability and recorded a debt settlement gain
in the amount of $7,952,700 on its consolidated statements of
operations and comprehensive loss.
Red Hill tax claim
During
the year ended December 31, 2014, the Company's wholly-owned
subsidiary, Red Hill Mongolia LLC ("
Red Hill
") was issued a letter
from the Sukhbaatar District Tax Division notifying it of the
results of the Sukhbaatar District Tax Division's VAT
inspection of Red Hill's 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill's claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division's findings as the tax assessment appeared to the
Company to be unfounded.
The Company disputed
the Sukhbaatar District Tax Division's assessment and
submitted a complaint to the Capital City Tax Tribunal
.
On March 24,
2015, the Capital City Tax Tribunal resolved to refer the matter
back to the Sukhbaatar District Tax Division for revision and
separation of the action between confirmation of Red Hill's
VAT credit, and the imposition of the penalty/deduction for the tax
assessment. Due to the uncertainty of realizing the VAT balance,
the Company has recorded an impairment charge for the full VAT
balance in the year ended December 31, 2015.
In
June 2019, the Company
received a positive resolution issued from the City tax tribunal
regarding the Company's VAT dispute with the Mongolia tax
office. The resolution, which is binding and final, affirmed Red
Hill's outstanding VAT credit of 1.169 billion MNT resulted
from past mining equipment purchases.
The VAT credit can be used to offset Red Hill's taxes and
royalty payments; or be refunded in cash by Mongolia's
Ministry of Finance within 12 to 24 months processing time.
Due to the credit risk
associated with the VAT credit, the Company has provided a full
valuation provision against the balance.
28.
EVENTS
AFTER THE REPORTING DATE
The following events occurred subsequent to December 31,
2019:
●
Effective January
6, 2020
,
the
Company engaged Mr. Ken Cotiamco to provide investor relations and
shareholder communications services by entering into a consulting
agreement whereby Ken Cotiamco would receive from the Company
renumeration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
Share for a term of five years expiring on January 6,
2025;
●
Pursuant to the
Company's Share-Based Compensation Plan, on January 6, 2020,
the Company issued an aggregate of 1,601,000 Shares as bonus
payments to certain directors, officers, employees and consultants
of the Company;
●
On March 16, 2020,
the Company held its Special Meeting of Shareholders. The Company
received shareholder approval of the following:
➢
changing its name
to Silver Elephant Mining Corp.;
43
SILVER ELEPHANT MINING
CORP.
(formerly
Prophecy Development Corp.)
Notes
to Annual Consolidated Financial Statements
For the
years ended December 31, 2019, 2018 and 2017
(Expressed in
Canadian Dollars)
28.
EVENTS AFTER THE REPORTING DATE
(cont'd...)
➢
consolidation of
the Company's issued and outstanding shares at a ratio
between one (1) new Common Share for every five (5) to ten (10) old
Common Shares (the "2020 Consolidation"). The effective
date of the Name Change and the 2020 Consolidation would be
determined at a later date by the Board of the Company;
and
➢
ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company's Share-Based
Compensation Plan.
●
On March
16
,
2020, the
Company amended its Articles and changed its name to "Silver
Elephant Mining Corp."
●
On March 19, 2020,
the Company changed its' symbol on the TSX from PCY to
"ELEF".
●
On March 23, 2020,
the Company changed its' symbol on the OTCQX from PRPCF to
"SILEF".
●
In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company's business or results of
operations at this time.
44
(Formerly Prophecy
Development Corp.)
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Currency expressed
in Canadian Dollars, except where indicated)
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
CONTENTS
1
INTRODUCTION
3
2
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
4
3
YEAR
2018 HIGHLIGHTS AND SIGNIFICANT EVENTS
6
4
PROPERTY
SUMMARY
10
5
SELECTED
ANNUAL FINANCIAL INFORMATION
41
6
SUMMARY
OF QUARTERLY RESULTS
43
7
RESULTS
OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2018
43
8
RESULTS
OF OPERATIONS FOR THE FOURTH QUARTER 2018
45
9
PROPOSED
TRANSACTIONS
46
10
LIQUIDITY
AND CAPITAL RESOURCES
46
11
CONTINGENCIES
49
12
ENVIRONMENTAL REGULATIONS
50
13
RELATED PARTY DISCLOSURES
50
14
CRITICAL
ACCOUNTING ESTIMATES AND JUDGMENTS
52
15
ACCOUNTING
CHANGES AND RECENT ACCOUNTING PRONOUNCEMENTS
55
16
FINANCIAL
INSTRUMENTS AND RELATED RISKS
55
17
RISKS
AND UNCERTAINTIES
58
18
DISCLOSURE
CONTROLS AND PROCEDURES
58
19
CHANGES
IN INTERNAL CONTROL OVER FINANCIAL REPORTING
59
20
DISCLOSURE
OF OUTSTANDING SHARE DATA
60
21
OFF-BALANCE
SHEET ARRANGEMENTS
60
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
1.
INTRODUCTION
This
Management's Discussion and Analysis ("
MD&A
") of Silver Elephant
Mining Corp.
(formerly "Prophecy
Development Corp.")
and its subsidiaries (the
"
Company
")
provides analysis of the Company's financial results for the
year ended December 31, 2019. The following discussion of
performance, financial condition and future prospects should be
read in conjunction with the accompanying December 31, 2019 audited
consolidated financial statements and the notes to those financial
statements
(the
"
Annual Financial
Statements
")
,
prepared in accordance with International Financial Reporting
Standards ("
IFRS
"), as issued by the
International Accounting Standards Board, and the Company's
SEC Form 20-F Annual Report ("
AR
") for the year ended December
31, 2019, all of which are available
under the Company's SEDAR profile at
www.SEDAR.com
. This MD&A is
current as of March 30, 2020, was reviewed, approved, and
authorized for issue by the Company's Board of
Directors.
Financial
information is expressed in Canadian dollars, unless stated
otherwise. Readers are encouraged to read the cautionary note
contained herein regarding such forward-looking statements.
Information on risks associated with
investing in the Company's securities as well as information
about mineral resources and reserves under National Instrument
43-101 –
Standards of Disclosure for
Mineral Projects
("
NI 43-101
") are contained in the Company's most
recently filed AR which is available on the Company's website
at
www.silverelef.com
or
on SEDAR at
www.sedar.com
.
Description
of Business
The Company amalgamated under the laws of the
Province of British Columbia, Canada. The Company's Common
Shares (the "
Shares
", and each, a "
Share
") are listed for trading on the Toronto
Stock Exchange (the "
TSX
") under the symbol "ELEF", the
OTCQX under the symbol "SILEF" and
the Frankfurt
Stock Exchange under the symbol "1P2N".
The Company is an
exploration stage company specializing in mine permitting,
construction, and operations. The Company holds a mining joint
venture interest in the Pulacayo Paca silver-lead-zinc property
located in Bolivia (the "
Pulacayo Project
"). The Company
also has a 100% interest in two vanadium projects in North America
including the Gibellini vanadium project which is comprised of the
Gibellini and Louie Hill vanadium deposits and associated claims
located in the State of Nevada, USA (the "
Gibellini Project
") and the Titan
vanadium-titanium-iron
project comprised of the Titan
vanadium-titanium-iron deposit and related claims located in the
Province of Ontario, Canada (the "
Titan Project)
. The Company also own a
100% interest in three coal properties in Mongolia which are the
Ulaan Ovoo property, the Khavtgai Uul property and the Chandgana
Tal property. In addition, the Company also has the land use right
and construction license for the Chandgana power plant
project.
The Company's
business strategy focus is to develop the Pulacayo Project and make
the Company's Gibellini Project the first operating primary
vanadium mine in North America. The vanadium resources are part of
a portfolio of projects the Company is building, through their
diversity of locations, commodities and products, reducing the
Company's exposure to adverse regulation and political
climates and changes in specific commodity prices.
A diverse portfolio
of projects from which a variety of minerals are mined and sold
provides multiple opportunities to maintain revenue and is one
facet of the Company's efforts to attain the Company's
ultimate objective of stable positive cash flow.
3
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
General
Corporate Information:
At December 31, 2019 and March 30, 2020, The
Company had: (i) 121,299,508 and 122,915,508 Shares issued and
outstanding respectively; (ii) 9
,577,500
and
9,442,500 stock options for Shares outstanding respectively; (iii)
26,666,597 Share purchase warrants for Shares
outstanding.
Transfer Agent and Registrar
Computershare
Investor Services Inc.
3
rd
Floor, 510 Burrard
Street,
Vancouver, BC,
Canada, V6C 3B9
Tel: +1 (604)
661-9400
Investor and Contact Information
All financial
reports, news releases and corporate information can be accessed by
visiting the Company's website at:
www.silverelef.com
Investor &
Media requests and queries:
Email:
ir@silverelef.com
Head Office and
Registered Office
Suite 1610 - 409
Granville Street,
Vancouver, BC,
Canada, V6C 1T2
Tel: +1 (604)
569-3661
Directors
and Officers
As at the date of
this MD&A, The Company's directors and officers were as
follows:
Directors
Officers
John
Lee, Executive Chairman
Michael
Doolin, Chief Executive Officer & Chief Operating
Officer
Greg
Hall
Irina
Plavutska, Chief Financial Officer
Masa
Igata
Ronald
Espell, Vice-President, Environment and Sustainability
Marc
Leduc
Danniel
Oosterman, Vice-President, Exploration
Ronald
Clayton
Joaquin
Merino-Marquez, Vice-President, South American
Operations
Audit Committee
Corporate Governance and Compensation Committee
Greg Hall
(Chair)
Greg Hall
(Chair)
Masa
Igata
Masa
Igata
Marc
Leduc
Marc
Leduc
Qualified
Persons
Danniel Oosterman,
B.Sc.(Hons), P.Geo., is a "qualified person" as defined
under NI 43-101. Mr. Oosterman serves as the Company's
Vice-President, Exploration and qualified person. He is not
considered independent of the Company given the large extent that
his professional time is dedicated solely to the Company. Mr.
Oosterman has reviewed and approved the technical and scientific
disclosure regarding the mineral properties of the Company
contained in this MD&A.
2.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This MD&A contains" forward-looking information"
and "forward-looking statements" within the meaning of
applicable Canadian securities legislation concerning anticipated
developments in the Company's continuing and future
operations in the United States, Canada, Bolivia and Mongolia, and
the adequacy of the Company's financial resources and
financial projections. Such forward-looking statements include but
are not limited to statements regarding the permitting,
feasibility, plans for development of the Gibellini Project;
development of the Titan Project; development of the Pulacayo
project; development and production of electricity from the
Company's Chandgana power plant, including finalizing of any
power purchase agreement; the likelihood of securing project
financing; estimated future coal production at the Chandgana
project; and coal production at the Ulaan Ovoo coal property and
the Chandgana project, and other information concerning possible or
assumed future results of operations of the Company. See in
particular, Section 4 – Property Summary.
4
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Forward-looking statements in this document are frequently
identified by words such as "expects",
"anticipates", "intends",
"plans", "believes",
"estimates", "potentially" or similar
expressions, or statements that events, conditions or results
"will", "may", "would",
"could", "should" occur or are "to
be" achieved, and statements related to matters which are not
historical facts. Information concerning management's
expectations regarding the Company's future growth, results
of operations, performance, business prospects and opportunities
may also be deemed to be forward-looking statements, as such
information constitutes predictions based on certain factors,
estimates and assumptions subject to significant business,
economic, competitive and other uncertainties and contingencies,
and involve known and unknown risks which may cause the actual
results, performance, or achievements to be different from future
results, performance, or achievements contained in such
forward-looking statements made by the Company.
In making the forward-looking statements in this MD&A, the
Company has made several assumptions that it believes are
appropriate, including, but not limited to assumptions that: all
required third party contractual, regulatory and governmental
approvals will be obtained for the development, construction and
production of the Company's properties and the Chandgana
power plant; there being no significant disruptions affecting
operations, whether due to labour disruptions or other causes;
currency exchange rates being approximately consistent with current
levels; certain price assumptions for vanadium, silver, other
metals and coal, prices for and availability of fuel, parts and
equipment and other key supplies remain consistent with current
levels; production forecasts meeting expectations; the accuracy of
the Company's current mineral resource estimates; labour and
materials costs increasing on a basis consistent with the
Company's current expectations; and any additional required
financing will be available on reasonable terms; market
developments and trends in global supply and demand for vanadium,
silver, other metals, coal and energy meeting expectations. The
Company cannot assure you that any of these assumptions will prove
to be correct.
Numerous factors could cause the
Company's actual results to differ materially from those
expressed or implied in the forward-looking statements, including
the following risks and uncertainties, which are discussed in
greater detail under the heading "Risks and
Uncertainties" in this MD&A and "Risk
Factors" in the Company's most recent AR as
filed
under
the Company's SEDAR profile at
www.SEDAR.com
and
posted on the Company's website
: the Company's history of net losses
and lack of foreseeable positive cash flow; exploration,
development and production risks, including risks related to the
development of the Company's mineral properties; the Company
not having a history of profitable mineral production; commencing
mine development without a feasibility study; the uncertainty of
mineral resource and mineral reserve estimates; the capital and
operating costs required to bring the Company's projects into
production and the resulting economic returns from its projects;
foreign operations and political conditions, including the legal
and political risks of operating in Bolivia and Mongolia, which are
developing countries and being subject to their local laws; the
availability and timeliness of various government approvals,
permits and licenses; the feasibility, funding and development of
the Company's projects; protecting title to the
Company's mineral properties; environmental risks; the
competitive nature of the mining business; lack of infrastructure;
the Company's reliance on key personnel; uninsured risks;
commodity price fluctuations; reliance on contractors; the
Company's need for substantial additional funding and the
risk of not securing such funding on reasonable terms or at all;
foreign exchange risk; anti-corruption legislation; recent global
financial conditions; the payment of dividends; the inability of
insurance to cover all potential risks associated with mining
operations; conflicts of interest; reliance on information systems
with exposure to cyber-security risks, and global outbreaks,
including the coronavirus.
In light of the risks and uncertainties inherent in all
forward-looking statements, the inclusion or incorporation by
reference of forward-looking statements in this MD&A should not
be considered as a representation by the Company or any other
person that the Company's objectives or plans will be
achieved.
These factors should be considered carefully, and readers should
not place undue reliance on the Company's forward-looking
statements. The Company believes that the expectations reflected in
the forward-looking statements contained in this MD&A and the
documents incorporated by reference herein are reasonable, but no
assurance can be given that these expectations will prove to be
correct. In addition, although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. The Company undertakes no obligation to publicly update
any future revisions to forward-looking statements to reflect
events or circumstances after the date of this MD&A or to
reflect the occurrence of unanticipated events, except as expressly
required by law.
5
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
3.
YEAR 2019 HIGHLIGHTS AND SIGNIFICANT EVENTS
For further
information please view the Company's 2019 news releases
under the Company's SEDAR
profile at
www.SEDAR.com
.
Pulacayo
Project
●
On September 30,
2019 the Company announced a 5,000-meter diamond drilling at its
Pulacayo Project had started with first set of assay results
expected in early November 2019.
●
On October 3, 2019
the Pulacayo Mining Production Contract ("
MPC
") was executed between the
Company and the Corporación Minera de Bolivia
("
COMIBOL
"), a
branch of the Bolivian Ministry of Mining and Metallurgy.
Notification of the final government resolution approving the MPC
was received on September 27, 2019. The MPC grants the Company the
100% exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years which is comparable to a mining
license in Canada or the United States.
●
On October 28, 2019
the Company announced the diamond drilling results from the
Pulacayo Project, Paca part in the Potosi department of Bolivia.
The phase 1 drill results are anticipated to increase the overall
tonnage and upgrade the confidence level of the current NI 43-101
compliant resource estimate prepared independently by Mercator
Geological Services Ltd. in 2017.
●
On December 4, 2019
the Company announced that the Company had received on November 18,
2019 the Resolution No. 195/2018 issued by the Supreme Court of
Bolivia, which declared that the tax claim brought by
Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary was not proven. The Resolution
is final and binding. Hence neither the Company nor the Company's
Bolivian subsidiaries owe any outstanding back taxes to the
Bolivian General Revenue Authority.
●
On December 18,
2019, the Company
announced that the
phase two drilling had commence at the Pulacayo Project. It is a
5,000-meter program that will consist mainly of wide step-out
drilling up to 1.5km west (Western Block) of the current 43-101
Pulacayo resource. That current Pulacayo resource covers 1.4 km in
strike and represents only a small portion of the Tajo vein system
which is over 3 km in strike and open to least 1,000 meters at
depth, according to historical records of underground
mining.
Gibellini
Project
●
On February 14,
2019 the Company announced that it had retained Amec Foster Wheeler
E&C Services Inc. ("
Wood
") to undertake updating of
the mineral resource and mining section for the Company's
upcoming Feasibility Study to be completed to the standards of NI
43-101 for its Gibellini Project.
●
On March 26, 2019
the Company announced
its
vanadium assay results from its fall 2018 exploration
reconnaissance program on the Gibellini Project. The 155 assays
were taken from three prospective exploration areas all within 5km
to the existing Gibellini vanadium NI 43-101 compliant resource pit
outline whereat 49.9 million lbs. measured, and 81.5 million lbs.
indicated vanadium resource have already been identified (see
Company's news release dated May 29, 2018). Surface grab
samples assay as high as 2% vanadium pentoxide (V2O5) and 75
samples (48% of total 155) have V2O5 grades greater than the
Gibellini deposit's cut-off grade of 0.101% V2O5 at $12.5/lb.
V2O5; V2O5 currently trades at approximately $16/lb. The high
vanadium assay results along the 5-kilometer northeast-southwest
trend which line-up the Northeast Prospect, through Gibellini Hill,
Louie Hill, Middle Earth Prospect, and Big Sky Prospect providing
an indication of potential and possibly significant future
expansion of vanadium mineralization along this
corridor.
●
On May 1, 2019 the Company announced
that it had received guidance regarding expected permitting
timelines following the Company meeting with regulators in late
April 2019. The Company estimated that Q1 2020 as the target date
for publication of the Notice of Intent ("
NOI
")
to prepare an Environment Impact Statement
("
EIS
")
in the Federal Register. Upon publication of the NOI the review
process is mandated to be completed within a 12-month period
under the US Department of the Interior's Secretarial Order
No. 3355.
Based on this
guidance, an EIS Record of Decision ("
ROD
")
would be expected no later than Q1 2021. Upon receipt of a positive
ROD and issuance of Nevada State permits, the Company plans to
start mine construction in 2021 and begin vanadium production by Q4
2022. The Company will be seeking project financing in the interim
of this process.
6
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
●
On July 8, 2019 the Company announced that it had
submitted its updated Plan of Operations (the
"
POO
") to the United States Department of the
Interior, Bureau of Land Management, Mount Lewis Field Office (the
"
BLM
") and the Reclamation Permit Application to
the Nevada Division of Environmental Protection, Bureau of Mining
Regulation and Reclamation (the "
BMRR
"). The POO which was submitted on schedule
and prepared under budget. The POO submission is the last major
step before the publication of the NOI which will initiate the EIS
process under the Secretary of Interior Order No. 3355
(Streamlining National Environmental Policy Reviews and
Implementation of Executive Order 13807; see Company's news
release dated March 28, 2018).
●
On July 19, 2019,
the Company announced its objectives for the second half of 2019
for the Gibellini Project. The Company plans
to submit the key Nevada state permit applications
required for project construction by the end of the third quarter
of 2019. It is anticipated that all approvals will be received by
first quarter of 2021.
●
On November 7, 2019
the Company announced that it had submitted, through its wholly
owned US subsidiary Nevada Vanadium, the applications and
Engineering Design Reports ("
EDRs
") for the primary mining
permits that govern project construction, operations and closure
for the Gibellini Project to the Nevada Division of Environmental
Protection ("
NDEP
") with copies provided to the
BLM and the EI contractor SWCA. The permit applications were
submitted on October 31, 2019 for the Water Pollution Control
Permit and the Class II Air Quality Permit. These Nevada state
permits have been developed to provide construction level
engineering that supports the mine plan previously submitted to the
BLM in the Plan of Operations. Comments received from both the BLM
and SWCA were used as guidance in the engineering design to ensure
the State and Federal Permits are aligned and reflect the most
current guidance provided by both the NDEP and BLM.
Corporate
Appointments
:
During the year
ended December 31, 2019 the Company experienced various changes in
Directors, Officers and Management of the of the Company as
follows:
●
Gerald Panneton
ceased to be the President, Chief Executive Officer and a Director
on February 15, 2019;
●
John Lee ceased to
act as Head of International Affairs on February 15,
2019;
●
Tony Wong ceased to
act as Corporate Secretary on February 22, 2019;
●
Louis Dionne ceased
to be a Director on February 28, 2019;
●
Rocio Echegaray was
appointed Corporate Secretary on March 8, 2019;
●
Michael Doolin was
appointed Chief Operating Officer and Interim Chief Executive
Officer on April 1, 2019;
●
John Lee ceased to
act as Interim President and Chief Executive Officer on April 1,
2019;
●
Bekzod Kasimov
ceased to act as Vice-President Business Development on July 1,
2019;
●
Marc Leduc was
appointed as a Director on July 22, 2019;
●
Joaquin
Merino-Marquez was appointed as Vice-President, South American
Operation on November 1, 2019;
●
Ronald Clayton was
appointed as a Director on November 4, 2019;
●
Michael Drozd
ceased to act as Vice-President, Operations on November 7,
2019;
●
Rocio Echegaray
ceased to act as Corporate Secretary on November 15, 2019;
and
●
Brigitte McArthur
was appointed Corporate Secretary on November 15,
2019.
●
On July 29, 2019
the Company the Company granted in aggregate 1,685,000 incentive
stock options to its directors, officer and employees of the
Company. The options are exercisable at a price of $0.20 per Share
for a term of five years expiring on November 1, 2024 and vest at
12.5% per quarter for the first two years following the date of
grant.
●
On August 19, 2019
the Company announced the formation of two wholly owned Canadian BC
subsidiaries; Silver Elephant Mining Corp. ("Silver
Elephant") and Asia Mining Inc. ("Asia Mining")
in order to facilitate potential future spinoffs of the
Company's wholly owned Bolivian silver operation and
Mongolian coal operation which was completed in September
2019.
7
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
●
On September 12,
2019, the Company reported that all proposed resolutions were
approved at the Company's Annual General Meeting of
shareholders held on September 12, 2019 in Vancouver, British
Columbia. The number of directors was set at 5 and all director
nominees, as listed in the Management Information Circular dated
July 25, 2019 were elected as directors of the Company at the
meeting to serve for a one-year term and hold office until the next
annual meeting of shareholders.
●
On September 24,
2019 the Company issued 175,000 common shares with a four-month
hold period to Mr. Bryan Slusarchuk, who provides consulting
services to the Company.
●
On October 9, 2019,
the Company issued 104,951 Common Shares at a value of $43,060 to
its directors to settle outstanding director fees.
●
On November 1, 2019
the Company granted in aggregate 1,680,000 incentive stock options
to its directors, officer and employees of the Company. The options
are exercisable at a price of $0.44 per Share for a term of five
years expiring on November 1, 2024 and vest at 12.5% per quarter
for the first two years following the date of grant.
Financings
:
●
On September 6,
2019, the Company closed a non-brokered private placement
previously announced on August 26, 2019. The placement raised gross
proceeds of $2,600,000 through the issuance of 13,000,000 Shares at
a price of $0.20 per Share. Also, the Company issued 525,000 Shares
and paid $10,000 as finder's fee. Proceeds of the placement
were expected to be used to develop The Company's mineral
projects and for general working capital purposes.
●
On October 21, 2019
the Company closed a non-brokered private placement announced on
October 7, 2019. The placement raised gross cash proceeds of
$3,900,000 through the issuance of 9,750,000 Shares at a price of
$0.40 per Share. Mr. Eric Sprott, through 2176423 Ontario
Ltd., a corporation that is beneficially owned by him, acquired
5,000,000 shares under the placement for a total consideration of
$2,000,000. Following the completion of the private placement, Mr.
Sprott's holdings represented 9% of the issued and
outstanding common shares of the Company at the time of the
placement. Mr. Sprott beneficially owned 5,9000,000 common shares
in the Company prior to this investment. The Company's
management and directors purchased 0.4 million Shares for proceeds
of $160,000. The Company issued 654,500 Shares as finder's
fees to Mackie Research Capital Corp. All Shares were subject to a
four-month-and-one-day hold period. Proceeds were expected to be
used for the Company's mineral project development and for
general working capital purposes.
Other
:
●
On
March 18, 2019, the Company announced Ulaan Ovoo in Mongolia mine
start up in March and approximately 21,000 tonnes of coal
production and sales.
●
On July 9, 2019 the
Company announced
t
hat the
Company's Ulaan Ovoo Mine achieved mine achieved monthly coal
production of 37,800 tonnes in June 2019.
The Company further
announced that a positive resolution was issued from the Mongolia
city tax tribunal regarding the Company's VAT dispute with
the Mongolia tax office. The resolution, which is binding and
final, affirmed the Company's outstanding VAT credit of 1.169
billion MNT (USD 439,470 based on today's exchange rate of
2,660 MNT to 1 USD) which resulted from past mining equipment
purchases. The VAT credit can be used to offset the Company's
taxes and royalty payments; or be refunded in cash by
Mongolia's Ministry of Finance within 12 to 24 months
processing time. n addition, the Company also reported that it had
successfully converted its Chandgana Khavtgai coal exploration
license to a mining license in central Mongolia. The Company
forecasts minimal Chandgana coal sales to local residents for the
2019 winter season.
Subsequent
Events to December 31, 2019
●
On January 6, 2020
Silver Elephant Mining Corp., a wholly owned subsidiary of the
Company, changed its name to Illumina Silver Mining
Corp.
8
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
●
On January 8, 2020,
the Company announced the following:
●
a special meeting
(the "Special Meeting") of the shareholders to be held
on March 16, 2020 to seek shareholder approval the
following:
●
changing the name
of The Company Development Corp. to Silver Elephant Mining Corp.
(the "Name Change");
●
to consolidate the
Company's issued and outstanding shares at a ratio between
one (1) new Common Share for every five (5) to ten (10) old Common
Shares (the "2020 Consolidation").
●
The effective date
of the Name Change and the 2020 Consolidation would be determined
at a later date by the Board of the Company;
●
proposed new symbol
of "ELEF" for the trading of the Company's Common
Shares on the Toronto Stock Exchange ("TSX");
and
●
ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company's Share-Based
Compensation Plan.
●
the engagement of
Ken Cotiamco to provide investor relations and shareholder
communications services effective January 6, 2020. The Company
further announced that Ken Cotiamco entered into a consulting
agreement whereby Ken Cotiamco would receive from the Company
renumeration of $4,000 per month for a term of three months, which
could be extended and also pursuant to the consulting agreement the
Company granted 100,000 incentive stock options at a price of $0.41
per Share for a term of five years expiring on January 6,
2025;
●
pursuant to the
Company's Share-Based Compensation Plan, the issuance of an
aggregate of 1,601,000 Shares (subject to a minimum hold period of
four months plus one date from the date of issuance) as 2019 bonus
payments to certain directors, officers, employees and consultants
of the Company;
●
that further to the
Company's news release dated December 18, 2019, the Company
had completed the first of 3 holes of the planned 17 drill holes at
the Pulacayo Project; and
●
the Company had
mobilized a second drilling rig to the Pulacayo Project and expects
to complete the proposed 5,000 meter drill program in February 2020
with full assay results by March 2020;
●
the Company
announced the first step-out diamond
drilling results from the Pulacayo property. Borehole PUD 267
intercepted 10 meters of mineralization grading 147 g/t silver,
9.8% zinc, and 2.0% lead (539 g/t AgEq) within 35.5 meter
mineralization grading 230 g/t AgEq starting 31.5 meters
downhole;
●
the Company
released
the results of its first
2,598 meters of drilling which focused on the western portion of
the Pulacayo property;
●
the
Company announced a commencement district exploration program at
the Pulacayo Project. The exploration team will be conducting
geological mapping, with relevant sampling and possible trenching
on the property. Induced polarization geophysics will be conducted
in tandem with the field program, with 106 line-kilometers of
survey having been outlined. The program is expected to be
completed by June 2020, when the results will have been evaluated.
The intention is to then generate drilling targets in the
district.
●
On March 16, 2020,
the Company held its Special Meeting of Shareholders. The Company
received shareholder approval of the following:
➢
changing its name
to Silver Elephant Mining Corp.;
➢
consolidation of
the Company's issued and outstanding shares at a ratio
between one (1) new Common Share for every five (5) to ten (10) old
Common Shares (the "2020 Consolidation"). The effective
date of the Name Change and the 2020 Consolidation would be
determined at a later date by the Board of the Company;
and
➢
ratification of
1,275,000 stock options previously granted to certain directors,
officers, employees and consultants of the Company on July 29, 2019
pursuant to the terms of the Company's Share-Based
Compensation Plan.
9
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
●
On
March16, 2020, the Company amended its Articles and changed its
name to "Silver Elephant Mining Corp."
●
On
March 19, 2020, the Company changed its' symbol on the TSX
from PCY to "ELEF".
●
On
March 23, 2020, the Company changed its' symbol on the OTCQX
from PRPCF to "SILEF".
●
In
March 2020 the World Health Organization declared coronavirus
COVID-19 a global pandemic. This contagious disease outbreak, which
has continued to spread, and any related adverse public health
developments, has adversely affected workforces, economies, and
financial markets globally, potentially leading to an economic
downturn. It is not possible for the Company to predict the
duration or magnitude of the adverse results of the outbreak and
its effects on the Company's business or results of
operations at this time.
4.
PROPERTY SUMMARY
Gibellini Project, Nevada, USA
The Company's
principal asset is its interest in the Gibellini Project. The
Company holds a 100% interest in the properties by way of a lease
agreement and staked claims. Claims are in the name of the
Company's indirect, wholly-owned Nevada subsidiaries, VC
Exploration (US), Inc. ("
VC
Exploration
") and Nevada Vanadium, LLC
("
Nevada
Vanadium
").
The Gibellini Project consists of a
total of 354 unpatented lode mining claims that include: the
Gibellini group of 40 claims, the VC Exploration group of 105
claims, and the Company group of 209 claims. The Gibellini group of
claims is referred to by the Company as a "project".
All the claims are
located in Eureka County, Nevada,
approximately 25 miles south of the town of Eureka and are easily
accessed from US Highway 50 to a paved road that becomes a graded,
gravel road.
The Gibellini
Project is situated on the south flank of the Fish Creek Range in
the Fish Creek Mining District, about 25 miles south of Eureka,
Nevada and is accessed by dirt road extending westward from State
Route 379.
The Gibellini group
of claims were acquired on June 22, 2017, through lease from the
claimant and current holder of the Gibellini mineral claims (the
"
Gibellini
Lessor
") and includes an area of approximately 771
acres. Under the Gibellini mineral lease agreement dated June 22,
2017 (the "
Gibellini
MLA
"), The Company leased the Gibellini group of
claims which originally constituted the Gibellini Project by among
other things, agreeing to pay to the Gibellini Lessor, annual
advance royalty payments which will be tied, based on an agreed
formula (not to exceed USD$120,000 per year), to the average
vanadium pentoxide price of the prior year. Upon commencement of
production, The Company will maintain its acquisition through lease
of the Gibellini group of claims by paying to the Gibellini Lessor,
a 2.5% NSR until a total of USD$3 million is paid. Thereafter, the
NSR will be reduced to 2% over the remaining life of the mine (and
referred to thereafter, as "
Production Royalty Payments
"). All
advance royalty payments made, will be deducted as credits against
future Production Royalty Payments. The lease is for a term of
10 years, which can be extended for an additional 10 years at the
Company's option.
10
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
On April 19, 2018,
the Gibellini MLA was amended to grant the Company the option, at
any time during the term of the agreement, to require the Gibellini
Lessor to transfer their title over all of the leased mining claims
(excluding four claims which will be retained by the Gibellini
Lessor and which contain minimal resource) to the Company in
exchange for USD1,000,000, to be paid as an advance royalty
payment.
On July 10, 2017, the Company acquired
(through lease) from the holders (
the "
Former
Louie Hill Lessors
")
10 unpatented lode claims totaling
approximately 207 gross acres that comprised the Louie Hill group
of claims
located approximately 500 meters south of the
Gibellini group of claims. These claims were subsequently abandoned
by the Former Louie Hill Lessors, and on March 11 and 12, 2018, the
Company staked the area within and under 17 new claims totaling
approximately 340 gross acres which now collectively comprise the
expanded Louie Hill group of claims.
On October 22,
2018, the Company entered into a royalty agreement (the
"
Royalty
Agreement
") with the Former Louie Hill Lessors to
replace on substantially similar terms, the former Louie Hill
Mineral Lease Agreement dated July 10, 2017, wherein the Company
will pay an advance royalty and a net smelter royalty on vanadium
pentoxide produced from the area of the 10 unpatented lode claims
originally acquired through lease from the Former Louie Hill
Lessors that is now contained within 17 lode claims since staked by
the Company's subsidiaries. The annual advance royalty
payments will be tied, based on an agreed formula (the total amount
not to exceed USD$28,000 per year), to the average vanadium
pentoxide price for the prior year.
Upon commencement
of production, the Company will pay to the Former Louie Hill
Lessors, a 2.5% NSR of which, 1.5% of the NSR may be purchased at
any time by the Company for USD$1 million, leaving the total NSR to
be reduced to 1% over the remaining life of the mine (and referred
to thereafter, as "
Production
Royalty Payments
"). All advance royalty payments made,
will be deducted as credits against future Production Royalty
Payments. The Royalty Agreement shall be for an indefinite period
and shall be valid and in full force and effect for as long as the
Company, its subsidiaries, or any of their permitted successors or
assigns holds a valid and enforceable mining concession over the
area.
On
December 5, 2017, the Company announced that it had significantly
expanded the land position at the Gibellini Project, by staking a
total of 198 new claims immediately adjacent to the Gibellini
Project covering 4091 acres that are sufficient to enable future
vanadium mining, processing and extraction.
On February 15,
2018, the
Company
indirectly acquired
an
additional 105 unpatented lode mining claims located adjacent to
its existing Gibellini Project
in Nevada, USA through the indirect
acquisition of VC Exploration (US) Inc, by paying
a total of
$335,661
in cash and
issuing the equivalent of 500,000 Share purchase warrants to
arm's-length, private parties
.
The Gibellini
Project is situated entirely on public lands that are administered
by the BLM. No easements or rights of way are required for access
over public lands. Rights-of-way would need to be acquired for
future infrastructure requirements, such as pipelines and
powerlines.
On November 20, 2017,
the Company received an independent technical report titled
"Gibellini Vanadium Project Nevada, USA NI 43-101 Technical
Report" with an effective date of November 10, 2017
(the "
Gibellini
Report
") prepared by
Wood The Gibellini Report
was filed with Canadian securities
regulatory authorities on SEDAR (available at
www.sedar.com
).
On June 25, 2018,
the Company released the "Gibellini Vanadium Project, Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment" (the "
PEA
"), with an effective date of
May 29, 2018 and signed June 25, 2018 authored by Independent
Qualified Persons Kirk Hanson, P.E.; Edward J.C. Orbock III, RM
SME; Edwin Peralta, P.E.; and Dr. Lynton Gormely, P. Eng. of Wood
and is in accordance with NI 43-101. The PEA was filed with
Canadian securities regulatory authorities on SEDAR (available at
www.sedar.com).
11
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Gibellini Deposit
On May 29, 2018, the Company received an independent technical
report providing an updated the resource on the Gibellini project.
The report is titled "Gibellini Vanadium Project Eureka
County, Nevada, NI 43-101 Technical Report on Preliminary Economic
Assessment" prepared by Mr. Kirk Hanson, P.E., Technical
Director, Open Pit Mining; Mr. Edward J.C. Orbock III, RM SME,
Principal Geologist and US Manager of Consulting; Mr. Edwin
Peralta, P.E., Senior Mining Engineer; and Mr. Lynton Gormely,
P.Eng., Consultant Metallurgist of Wood. The report has an
effective date of May 29, 2018.
The PEA replaces the technical report entitled "Gibellini
Vanadium Project, Nevada, USA, NI 43-101 Technical Report",
effective November 10, 2017 and filed November 20, 2017. The PEA is
preliminary in nature and includes inferred mineral resources that
are too speculative geologically to have economic considerations
applied to them that would enable them to be categorized as mineral
reserves. There is no certainty that the PEA results will be
realized. Mineral resources are not mineral reserves and do not
have demonstrated economic viability.
The PEA disclosed an
estimated 7.94 million tons at a weighted average grade of 0.314%
vanadium pentoxide ("
V
2
O
5
")
in the Measured category and 15.02 million tons at a weighted
average grade of 0.271% V
2
O
5
in
the Indicated category leading to a total combined Measured and
Indicated Mineral Resource of 22.95 million tons at a weighted
average grade of 0.286% V
2
O
5
.
Total contained metal content of the Measured and Indicated Mineral
Resources is 131.34 million pounds V
2
O
5
.
The Inferred Mineral Resource estimate is 14.97 million tons at a
weighted average grade of 0.175% V
2
O
5
.
The total contained metal content of the Inferred Mineral Resource
estimate is 52.30 million pounds V
2
O
5
.
The table below contains a summary of the Gibellini deposit
resource estimate:
Table 1: Mineral Resource Statement, Gibellini
Confidence
Category
Domain
Cut-offV
2
O
5
(%)
Tons(Mt)
GradeV
2
O
5
(%)
ContainedV
2
O
5
(Mlb)
Measured
Oxide
0.101
3.96
0.251
19.87
Transition
0.086
3.98
0.377
29.98
Indicated
Oxide
0.101
7.83
0.222
34.76
Transition
0.086
7.19
0.325
46.73
Total Measured and Indicated
22.95
0.286
131.34
Inferred
Oxide
0.101
0.16
0.170
0.55
Transition
0.086
0.01
0.180
0.03
Reduced
0.116
14.80
0.175
51.72
Total Inferred
14.97
0.175
52.30
Notes to accompany Mineral Resource table for
Gibellini:
1.
The
Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM SME,
a Wood
Group of companies
employee. The Mineral Resources have an effective date of May 29,
2018.
2.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3.
Mineral Resources are reported at various cut-off grades for oxide,
transition, and reduced material.
4.
Mineral
Resources are reported within a conceptual pit shell that uses the
following assumptions: Mineral Resource V
2
O
5
price:
$14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative ("
G&A
")
cost: $0.99/ton processed; metallurgical recovery assumptions of
60% for oxide material, 70% for transition material and 52% for
reduced material; tonnage factors of 16.86 ft3/ton for oxide
material, 16.35 ft3/ton for transition material and 14.18 ft3/ton
for reduced material; royalty: 2.5% net smelter return (NSR);
shipping and conversion costs: $0.37/lb. An overall 40º pit
slope angle assumption was used.
12
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
5.
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.
Louie Hill Deposit
The Louie Hill deposit lies approximately 1,600 ft south of the
Gibellini deposit.
The Gibellini Technical
Report provides an Inferred Mineral Resource of 7.52 million tons
at a weighted average grade of 0.276% vanadium pentoxide
(V
2
O
5
).
The oxidation domains were not modeled. The total contained metal
content of the estimate is 41.49 million pounds
V
2
O
5
.
The table below summarizes the Louie Hill deposit resource
estimate:
Table 2: Mineral Resources Statement, Louie Hill
Confidence
Category
Cut-offV
2
O
5
(%)
Tons(Mt)
GradeV
2
O
5
(%)
ContainedV
2
O
5
(Mlb)
Inferred
0.101
7.52
0.276
41.49
Notes to accompany Mineral Resource table for Louie
Hill:
1.
The Qualified Person for the estimate is Mr. E.J.C. Orbock III, RM
SME, a Wood Group of companies employee. The Mineral Resources have
an effective date of May 29, 2018. The resource model was prepared
by Mr. Mark Hertel, RM SME.
2.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
3.
Oxidation state was not modeled.
4.
Mineral
Resources are reported within a conceptual pit shell that uses the
following assumptions: Mineral Resource V
2
O
5
price:
$14.64/lb; mining cost: $2.21/ton mined; process cost: $13.62/ton;
general and administrative (G&A) cost: $0.99/ton processed;
metallurgical recovery assumptions of 60% for mineralized material;
tonnage factors of 16.86 ft3/ton for mineralized material, royalty:
2.5% net smelter return (NSR); shipping and conversion costs:
$0.37/lb. For the purposes of the resource estimate, an overall
40º slope angle assumption was used.
5.
Rounding as required by reporting guidelines may result in apparent
summation differences between tons, grade and contained metal
content. Tonnage and grade measurements are in US units. Grades are
reported in percentages.
A total of 280 drill holes (about 51,265 ft) have been completed on
the Gibellini Project since 1946, comprising 16 core holes (4,046
ft), 169 rotary drill holes (25,077 ft; note not all drill holes
have footages recorded) and 95 reverse circulation holes (22,142
ft).
The vanadium-hosted argillite unit ranges from 175 to over 300 ft
thick and overlies gray mudstone and black shales. The argillite
has been oxidized to various hues of yellow and orange to a depth
of 100 ft and is believed to have been part an overall homogenous
black shale unit. Alteration (oxidation) of the rocks is classified
as one of three oxide codes: oxidized, transitional, and
reduced.
No significant work has been conducted on the Gibellini Project
since 2011 with some minor prospecting completed in October of
2018. The Company has not completed trenching or drilling
activities since the Gibellini Project acquisition.
The power supply for the Gibellini Project site is assumed to be at
24.9 kV and supplied from a planned substation to be located near
Fish Creek Ranch. This substation would tap and step-down the 69kV
supply carried by the line to the nearby Pan Mine to 24.9kV and
place it on a line to the Gibellini Project. Negotiations with the
power utility, Mt. Wheeler Power will need to be undertaken to
secure any future power supply contract and transmission line to
the site.
On May 9, 2018, the Company submitted its
Management's plan of operations
(the "
MPO
") to the BLM and the Reclamation Permit
Application to the BMRR. On July 8
t
,
2019 the Company announced it submitted an enhanced mining Plan of
Operations that is designed to meet the needs set out by
Secretarial Order 3355.
13
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The
MPO was prepared by SRK Consulting (U.S.) Inc. with over 1,100
pages of detailed development plans for the open pit mining
operations and processing facilities to extract and recover
vanadium from the Gibellini Project with stated average mine
production during the seven-year mine life of 15.7 million tons of
ore material containing 120.5 million pounds of vanadium. The
primary facilities include the: pit, waste rock disposal facility,
mine office, auxiliary facilities such as water and power, crushing
facilities and stockpile, heap leach pad, process facility, water
ponds, borrow areas, and mine and access roads.
A map of the proposed facilities is available
at
www.silverelef.com
.
In
addition, the MPO includes the following designs along with
associated environmental baseline studies:
1.
Quality
Assurance Plan
2.
Storm
Water Management Plan
3.
Adaptive
Waste Rock Management Plan
4.
Monitoring
Plan
5.
Noxious
Weed Management Plan
6.
Spill
Contingency Plan
7.
Feasibility
Study Level Pit Slope Design
8.
Heap
Leach and Waste Rock Dump Facility Stability Report
9.
Geochemical
Characterization Report
10.
Water
Management Plan
11.
Closure
and Reclamation Plan
12.
Transportation
Plan
13.
Standardized
Reclamation Cost Estimate
The
baseline studies supplementing the MPO were completed by the
previous operator between 2010 and 2012, and included studies of
biological resources, cultural resources, surface water resources,
ground water resources, and waste rock geochemical
characterization.
In
August 2018, the Company engaged NewFields, an environmental,
engineering, and construction management consulting ﬁrm to
advance EIS preparation for the Gibellini Project.
NewFields
completed the Gibellini heap leach pad and waste dump designs (over
40 pages) as part of an overall basic engineering design lead by
Scotia International of Nevada, Inc. in 2014. NewFields'
familiarity with the project should help to expedite permitting
efforts at Gibellini.
PEA
On May 29, 2018,
the Company received results of a PEA for the Gibellini Project.
The PEA reported an after tax cumulative cash flow of $601.5
million, an internal rate of return of 50.8%, a net present value
of $338.3 million at a 7% discount rate and a 1.72 years payback on
investment from start-up assuming an average vanadium pentoxide
price of $12.73 per pound. As of May 29, 2018, the price of
vanadium pentoxide is $14.20 per pound according
to
www.asianmetal.com
. The PEA was
prepared by Wood and is based on the NI 43-101 compliant resource
calculations reported above.
14
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 3: Highlights of the PEA (after tax)
All dollar values are expressed in US dollars unless otherwise
noted
Internal rate of
return
50.8%
Net present value
("
NPV
")
$338.3 million at
7% discount rate
Payback
period
1.72
years
Average annual
production
9.65 million lbs
V
2
O
5
Average
V
2
O
5
selling
price
$12.73 per
lb
Operating cash
cost
$4.77 per lb
V
2
O
5
All-in sustaining
costs
*
$6.28 per lb
V
2
O
5
Breakeven
price
**
$7.76 per lb
V
2
O
5
Initial capital
cost including 25% contingency
$116.76
million
Average
grade
0.26% V
2
O
5
Strip
ratio
0.17 waste to leach
material
Mining operating
rate
3.4 million tons
(leach material and waste) per year
Average
V
2
O
5
recovery
through Direct Heap Leaching
62%
Life of
mine
13.5
years
*
includes
selling costs, royalties, operating cash cost, reclamation,
exploration and sustaining capital costs.
**
includes
selling costs, royalties, operating cash costs, taxes (local,
state, and federal), working capital, and sustaining and capital
costs.
The PEA is
preliminary in nature and includes inferred mineral resources that
are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as mineral reserves, and there is no certainty that the
PEA will be realized. Mineral resources are not mineral reserves
and do not have demonstrated economic viability.
Sensitivity Analysis
The tables below
show the sensitivity analysis to the vanadium pentoxide price,
grade, and to the PEA capital cost and operating costs. This
sensitivity analysis indicates strong project economics even in
very challenging conditions, and that the project is well
positioned to benefit from the current rising vanadium price
environment. A 20% increase in the vanadium price relative to the
base case translates to a USD$491.3 million after-tax NPV at a 7%
discount rate.
15
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 4: Sensitivity Analysis
All dollar values are expressed in US dollars unless otherwise
noted
V
2
O
5
price
change
V
2
O
5
price
USD$/lb
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
30%
16.55
69%
568.0
996.0
20%
15.28
63%
491.3
864.4
10%
14.00
57%
415.2
733.2
Base
price
12.73
51%
338.3
600.4
-10%
11.46
44%
261.0
467.2
-20%
10.18
36%
183.1
333.2
-30%
8.91
26%
103.9
196.9
V
2
O
5
gradechange
V
2
O
5
grade
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
30%
0.34%
68%
554.4
972.8
20%
0.31%
63%
482.4
849.0
10%
0.28%
57%
410.7
725.4
Base
grade
0.26%
51%
338.3
600.4
-10%
0.23%
44%
265.6
475.0
-20%
0.21%
37%
192.2
348.9
-30%
0.18%
28%
118.3
221.6
Capexchange
CapexUSD$M
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
30%
151.8
40%
307.2
564.3
20%
140.1
43%
317.6
576.3
10%
128.4
47%
328.0
588.4
Base
Capex
116.8
51%
338.3
600.4
-10%
105.1
55%
348.6
612.5
-20%
93.4
61%
358.9
624.6
-30%
81.7
67%
369.3
636.8
16
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Opexchange
OpexUSD$M
After-taxIRR
After-tax
NPVUSD$M @ 7%
After-taxcashflowUSD$M
30%
6.20
45%
257.9
450.2
20%
5.72
47%
284.8
500.3
10%
5.25
49%
311.6
550.4
Base
Capex
4.77
51%
338.3
600.4
-10%
4.29
53%
364.8
650.0
-20%
3.82
55%
390.7
698.4
-30%
3.34
56%
416.0
745.4
Mining & Processing
Mining at the
Gibellini and Louie Hill projects is planned to be a conventional
open pit mine utilizing a truck and shovel fleet comprised of
100-ton trucks and front end loaders. Average mine production
during the 13.5 year mine life is 3.4 million tons of leach
material (3 million tons) and waste (0.4 million tonnes) per year
at a strip ratio of 0.17. Mining is to be completed through
contract, with the Company's mining staff overseeing the
contracted mining operation and performing the mine engineering and
survey work.
Table 5
Oxide'000
tons
Transition'000
tons
Reduced'000
tons
Grade%
V
2
O
5
Metal
containedV
2
O
5
(Mlb)
Metal
ProducedV
2
O
5
(Mlb)
YR 1
2,600
400
—
0.291
17.440
10.633
YR 2
2,400
600
—
0.278
16.690
10.480
YR 3
1,760
1,240
—
0.310
18.580
12.067
YR 4
650
2,350
—
0.372
22.320
15.217
YR 5
310
2,680
10
0.366
21.950
15.185
YR 6
2,240
750
10
0.315
18.920
11.928
YR 7
3,000
—
—
0.316
18.980
11.394
YR 8
1,910
700
380
0.189
11.310
7.085
YR 9
690
1,220
1,090
0.216
12.940
8.023
YR 10
110
370
2,520
0.208
12.480
6.898
YR 11
450
360
2,180
0.182
10.910
6.103
YR 12
50
140
2,820
0.166
9.980
5.349
YR 13
390
10
2,600
0.183
10.970
5.839
YR 14
1,710
—
—
0.195
6.670
4.096
Totals:
18,290
10,830
11,590
0.258
210.15
130.297
17
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The processing
method envisioned for the Gibellini Project will be to feed leach
material from the mine via loader to a hopper that feeds the
crushing plant. The leach material will then be fed to an
agglomerator where sulfuric acid, flocculent and water will be
added to achieve adequate agglomeration. The agglomerated leach
material will be transported to a stacker on the leach pad, which
will stack the material to a height of 15 feet. Once the material
is stacked, solution will be added to the leach heap at a rate of
0.0025 gallons per minute per square foot. The solution will be
collected in a pond and this pregnant leach solution will be sent
to the process building for metal recovery where it will go through
solvent extraction and stripping processes to produce the vanadium
pentoxide.
Vanadium Recoveries and Metallurgical Testing
Approximately 130.3
million pounds of V
2
O
5
is expected
to be produced from Gibellini and Louie Hill leaching operations at
an average recovery of 62% (oxide: 60%, transition: 70% and
reduced: 52%). The heap leaching is performed at ambient
temperature and atmospheric pressure without pre-roasting or other
beneficiation process. The pregnant leach solution is continuously
collected with leach material undergoing, on average, a 150-day
heap-leaching cycle. Table 6 below summarizes the projected
metallurgical recoveries used in the PEA for the three defined
oxidation-type domains.
Table 6
Mill
Feed Material Type
Direct
Leaching Recovery
Oxide
60%
Transition
70%
Reduced
52%
The direct heap
leach vanadium recovery estimates used in the PEA were based on
extensive metallurgical testing work performed by SGS Lakefield
Research Laboratories, Dawson Minerals Laboratories, and McClelland
Laboratories. Samples were selected from a range of depths within
the deposit, representative of the various types and styles of
mineralization. Samples were obtained to ensure that tests were
performed on sufficient sample mass. The end results demonstrated
low acid consumption (less than 100 lb acid consumption per ton
leached) and high recovery through direct leaching. Notable test
results included the following:
Acid Heap Leach Testing of a Gibellini Bulk Sample, McClelland
Laboratories, September 4, 2013
A series of
trenches were excavated and approximately 18 tons of material were
sent to McClelland Laboratories for pilot testing. The material was
air dried and stage crushed to 2" where a column sample was
cut for 12" columns and then the leach material was crushed
to – ½". A head sample was taken and material for
bench marking columns, and a bottle roll test was also taken. The
results of the pilot plant testing are shown in Table
7:
18
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 7
Crush
Size 100%Passing
Test
Type
Time
(Days)
Head
Grade%V*
%
VanadiumRecovery
AcidConsumptionlbs/st
50 mm
(2")
Column, open
circuit
123
0.299
76.6%
88
12.5 mm
(1/2")
Column, open
circuit
123
0.313
80.2%
72
12.5 mm
(1/2")
Column, closed
circuit
199
0.284
68.3%
84
12.5 mm
(1/2")
Column, closed
circuit
Column, closed
circuit
0.313
74.0%
96
12.5 mm
(1/2")
Bottle
Roll
4
0.286
67.1%
74
1.7 mm
(-10m)
Bottle
Roll
4
0.286
66.3%
66
-75µ
Bottle
Roll
4
0.279
67.6%
62
-75µ
Bottle
Roll
30
0.298
74.2%
54
*
to convert V to
V
2
O
5
, multiply V by
1.7852.
Solvent Extraction (SX) Test Work
The design
parameters from this test work are:
●
SX Extraction pH
Range 1.8 to 2.0
●
Di-2-Ethyl Hexyl
Phosphoric Acid Concentration 0.45 M (~17.3% by weight)
Cytec
●
923 Concentration
0.13 M (~5.4% by weight)
●
The Organic Diluent
is Orform SX-12 (high purity kerosene)
●
SO
2
addition of
1.0 to 1.5 g/l
●
Strip Solution
Sulfuric Acid Concentration 225 to 250 g/l SX
●
Extraction
Efficiency ~97%
●
SX Strip Efficiency
~98%
Pilot Scale Solvent Extraction Testing on Vanadium Bearing
Solutions from Two Gibellini Project Column Leach Tests, McClelland
Laboratories, September 16, 2013
Solvent extraction
("
SX
")
processing was conducted to recover vanadium from sulfuric acid
pregnant leach solution ("
PLS
") generated during pilot
column testing on bulk leach samples from the Gibellini project.
Laboratory scale testing was conducted on select solutions
generated during the pilot SX processing, to optimize the SX
processing conditions. Additional laboratory scale testing was
conducted on the loaded strip solution generated during the pilot
SX testing, to evaluate methods for upgrading and purifying it to
levels that may be required for sale of a final vanadium bearing
product.
The final pregnant
strip solution was 6.1% vanadium, 250 g/l sulfuric acid with
approximately 2% Fe and Al. The solution was suitable for oxidation
using sodium chlorate to convert the V+4 to V+5 which was then
precipitated using ammonia to make ammonium metavanadate
("
AMV
"). To make
a vanadium product for the steel industry, this AMV is calcined
(ammonia driven off) and heated to above 700°C (the fusion
temperature of V
2
O
5
). This fused
V
2
O
5
would then
be cooled on a casting wheel, pulverized and packaged.
Additionally, using ion exchange resins in conjunction with solvent
extraction, strip solution was produced which met or exceeded
specifications of electrolyte for vanadium flow
batteries.
19
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
In August of 2018,
the Company received metallurgical results from its technology
partner, NWME from samples collected during a site visit in March
of 2018. Tests were performed at it's laboratory testing
facilities located in Xi'an, China. NWME utilized a SX
processing method to recover vanadium from sulfuric acid PLS
generated by bottle roll and column test acid leaching on Gibellini
samples. The solution was reduced and then precipitated using
ammonia to make AMV. The AMV was calcined and heated then cooled
and pulverized. A vanadium pentoxide with 98.56 % purity content
was produced. The assay for this work is shown below:
Table
8
V2O5 %
SI %
Fe %
P %
S %
As %
Na2O %
K2O %
Al %
U %
98.56
0.0078
0.88
0.058
0.47
0.0026
0.43
0.052
0.22
0.0001
Uranium content is
less than 0.0001% which does not affect the marketability of the
product.
The PLS was
produced with very low deleterious elements which enabled using an
efficient SX process. The PLS V2O5 concentration was 1.15 gram per
liter and the Pregnant Strip Solution V2O5 concentration was 39.61
grams per liter.
Capital and Operating Costs
The projected
capital costs for the Gibellini vanadium project over a 1 ½
year construction period and mine life average operating costs are
summarized in Tables 9 and 10 below. The capital cost includes 25%
contingency or USD23.4 million.
20
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 9: Pre-Production Capital Cost
All dollar values are expressed in US dollars unless otherwise
noted
Cost
Description
Total(USD$000s)
Open Pit Mine
Open pit mine
development
1,412
Gibellini
incremental WRSF
212
Mobile
equipment
111
Infrastructure-On Site
Site
prep
2,431
Roads
1,391
Water
supply
2,007
Sanitary
system
61
Electrical –
on site
2,052
Communications
165
Contact water
ponds
174
Non-process
facilities – buildings
7,583
Process Facilities
Mill feed
handling
15,380
Heap leach
system
20,037
Process
plant
14,441
Off-Site Infrastructure
Water
system
4,495
Electrical supply
system
3,227
First
fills
860
Subtotal Total Direct Cost
76,039
Construction
indirect costs
4,254
Sales tax /
OH&P
4,236
EPCM
8,879
Total
Before Contingency
93,409
Contingency
(25%)
23,352
Total
Project Cost
116,761
21
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table
10: Operating Costs
Total Cash
Operating Cost
USD$ per Ton
Leached
USD$ per lb of
V
2
O
5
Produced
G&A
0.99
0.31
Mining
Cost
2.72
0.85
Total Processing
Cost
11.54
3.61
Total
15.26
4.77
(
All dollar values are
expressed in US dollars unless otherwise noted)
The cash operating
costs in the first half of the project covering years 1-7 is
USD$3.59 per lb of V
2
O
5
produced and
for the years 8-14 is USD$7.12 per lb of V
2
O
5
produced,
resulting in the weighted average cash cost of USD$4.77 per lb of
V
2
O
5
produced.
The cash operating cost is lower in the first half of the project
due to processing higher grade material.
Permitting
Vanadium has been
listed as one of 23 metals critical to the US economy by the U.S
Geological Survey since December 2017. There are currently no
active primary vanadium mines in North America.
As a result of direction from Secretary of the
Interior Order No. 3355 (Streamlining National Environmental Policy
Reviews and Implementation of Executive Order 13807) the Company
anticipates the Gibellini EIS will not be more than 150 pages
(excluding appendices) and the BLM to complete the Gibellini final
EIS within one year from the issuance of the
NOI
On June 19, 2019,
the Company announced the appointment of a third party NEPA
contractor and SWCA Environmental Consultants to work under the
direction of the BLM per the provisions of a Memorandum of
Understanding between SWCA Environmental Consultants, BLM and the
Company to prepare the EIS for the and assist the BLM in the
maintenance of the administrative record.
The Gibellini EIS
will be one of the first mining EIS's done under Secretarial
Order 3355 ("
SO
3355
") that mandates the Final EIS cannot exceed 150
pages in length and must be completed within one year of the
publication date of the NOI for the EIS in the Federal Register. A
project schedule has been developed with the BLM that targets the
first quarter of 2020 for the NOI to be published and the EIS
formally started.
Appointment of the
EIS contractor allows the contractor to participate in the review
of the Enhanced Baseline Reports, the Mine Plan of Operations and
all relevant data and project information that will serve as the
foundation for the NEPA review. This early start by the BLM EIS
contractor will ensure a streamlined EIS process once the formal
NEPA process begins after the publication of the NOI in the Federal
Register.
On July 8, 2019,
the Company announced that it submitted an enhanced mining Plan of
Operations ("POO") in June 2019 to the BLM and
Reclamation Permit Application to the BMRR. This enhanced POO
conforms to requirements that are aimed to satisfy timelines set
out by Federal Secretarial Order 3355, which is a key difference
from this POO and the POO that was submitted in 2018 (see
Company's news release dated May 9, 2019,
The POO which was submitted on schedule and
prepared under budget, incorporated data and information from a
number of consulting companies that are working on the project.
Having submitted all the requisite environmental baseline studies,
the Company's POO submission is the last major step before
the publication of the NOI which will initiate the EIS process
under the Secretary of Interior Order No. 3355 (Streamlining
National Environmental Policy Reviews and Implementation of
Executive Order 13807; see the Company's press release dated
March 28, 2018). The streamlined EIS process from NOI to the record
of decision ("
ROD
") is one year.
Upon receipt of a
positive ROD and issuance of Nevada State permits, the Company
plans to start mine construction in 2021 subject to project
financing completion and begin vanadium production by Q4
2022.
22
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
This
POO details the development plans for the open pit mining
operations and processing facilities to extract and recover
vanadium from the Gibellini Project with stated average mine
production during the seven-year mine life of 15.7 million tons of
materialized resource containing 120.5 million pounds of vanadium.
The POO also includes an exploration plan to fully define all the
additional mineralized target areas within the Project claim block.
The primary facilities include the: pit, waste rock disposal
facility, mine office, auxiliary facilities such as water and
power, crushing facilities and stockpile, heap leach pad, process
facility, water ponds, borrow areas, and mine and access
roads.
Engineering Procurement Construction Management:
On August 15, 2018, the Company issued a request
for proposal (the "
RFP
") for EPCM from qualified bidders. In
December 2018 the
Company selected M3 Engineering &
Technology Corporation ("
M3
")
of Tucson, Arizona to provide engineering, procurement,
construction and management services (EPCM) for its Gibellini
Vanadium Project in response to its Request for Proposal. M3 was
selected for its specific experience in heap leach engineering, and
construction expertise in arid environments such as Nevada and
Arizona.
The
EPCM consists of three phases:
●
Phase
1 includes updating and simplifying previous basic engineering
designs from producing delicate vanadium battery electrolyte to
producing standard vanadium pentoxide off take product. The other
parts of the design such as mine design, waste dump design, road
design, borrow pit design, buildings and infrastructure designs
will not be substantially changed.
●
Phase
2 will consist of procurement of the required equipment, services
and developing the detailed engineering design required to build
the project facilities.
●
Phase
3 will outline construction management services to build the
facilities to accomplish the actual work.
The
Company expects Phase 1 of the EPCM to be completed in 2020; Phase
2, to be completed in 2021; Phase 3, to commence in 2021, completed
in 2022 and the Gibellini Project wet commissioning expected to be
in 2022.
To try to minimize
technical and implementation risk, the Company is working closely
with its chosen technology partner, NWME, to fine tune metallurgy,
process design and engineering, and ensure maximum vanadium
recovery and high-grade vanadium pentoxide commercial product on
site. NWME owns and is currently operating the world's
largest black-shale vanadium mine in China with an environmentally
friendly, hydrometallurgical leach processing technology without
the need of a pre-roasting step (see the Company's news
release dated March 12, 2018 for more details.
NWME conducted a
Gibellini site visit in March 2018 and analyzed Gibellini samples
in its laboratories. The results of this work are discussed in the
following section.
Test Results
Samples collected by NWME's technical team during their visit
to the Project's site in February 2018 were analyzed at
NWME's facility in Xi'an, China. Approximately 250 kg
of material was submitted for analysis. The results are described
herein.
98.6% V
2
O
5
Produced on the
1
st
Run with Simple
Conventional Flowsheet
NWME used SX
processing method to recover vanadium from sulfuric acid PLS
generated by bottle roll and column test acid leaching on Gibellini
samples. The solution was reduced and then precipitated using
ammonia to make AMV. The AMV was calcined and heated then cooled
and pulverized.
A vanadium
pentoxide with 98.56 % purity content was produced. The assay for
this work is shown in Table 11 below:
23
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 11:
Gibellini
Vanadium Pentoxide Assay
V2O
%
SI
%
Fe
%
P
%
S
%
As
%
Na2O
%
K2O
%
Al
%
U
%
98.56
0.0078
0.88
0.058
0.47
0.0026
0.43
0.052
0.22
0.0001
Uranium content is
less than 0.0001% which does not affect the marketability of the
product.
The PLS was
produced with very low deleterious elements which enabled using an
efficient SX process. The PLS V
2
O
5
concentration was
1.15 gram per liter and the Pregnant Strip Solution V
2
O
5
concentration was
39.61 grams per liter.
Overall Vanadium Recovery of Over 60% and Low Acid
Consumption
PLS was produced from both bottle roll and column tests. Sulfuric
acid was added to the feed material with the bottle rolling for 1
hour, then the open bottle was allowed to cure for 24 hours and
water was added to the bottle to attain the desired density (40%).
Initial samples were taken at 6 hours, 12 hours, 24 hours, 36
hours, 48 hours and then once a day until the bottle roll was
completed.
In column tests, sulfuric acid was added to the feed material and
the material was allowed to cure for 24 hours before initiating the
leaching. Leaching was conducted by applying 108 grams per liter
acid solution over the material. PLS was collected every 24 hours
and samples were taken for vanadium analysis. All the tests were
performed at room temperature and at atmospheric pressure. The
results of the tests are given in Table 12:
Table 12
Test
Leach
Time
Vanadium
Recovery %
Sulfuric
Acid Consumed kg/t
Column Test
21 days
70.74
100
Bottle Roll Test - investigate the effect of the curing method and
increase of sulfuric acid addition on the vanadium
recovery
50 hours
62.8
150
Bottle Roll Test - investigate addition of NWME prepared leaching
agent on the vanadium recovery
144 hours
66.5
100
Bottle Roll Test - investigate the leaching of coarse feed (2mm) on
the vanadium recovery
216 hours
63.7
100
The results of the bottle roll and
column leach tests performed by NWME largely validate the results
of previous tests performed by McClelland Laboratories on
Gibellini bulk sample in 2013 (18 tons of material)
.
The NWME test samples were not agglomerated and were on short leach
time of 21 days for column tests and 5 days for bottle roll tests.
The Company studied both the NWME test and McClleland test in
detail and believe the results were consistent, whereby 70%
recovery can be achieved with longer leach cycle (over 100 days
McClelland Laboratories vs 21 days NWME) and less acid consumption
(50 kg of acid per tonne of material McClelland Laboratories vs 100
kg of acid per tonne of material NWME).
A summary of
acid heap leach
tests of a Gibellini bulk sample, completed at McClelland
Laboratories, September 4, 2013 is tabulated in Table 13
below:
24
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 13
Size
Test Type
Time (Days)
Vanadium Recovery %
Head Grade % V2O5
Sulfuric Acid Consumed kg/t
50 mm
(2")
Column, open
circuit
123
76.6
0.53
39.9
12.5 mm
(1/2")
Column, open
circuit
123
80.2
0.56
32.7
12.5 mm
(1/2")
Column, closed
circuit
230
68.3
0.51
38.1
12.5 mm
(1/2")
Column, closed
circuit
198
74.0
0.56
43.5
12.5 mm
(1/2")
Bottle
Roll
4
67.1
0.51
33.6
1.7 mm
(-10m)
Bottle
Roll
4
66.3
0.51
29.9
-75µ
Bottle
Roll
4
67.6
0.50
28.1
-75µ
Bottle
Roll
30
74.2
0.53
24.5
Representative Feed Grade with Benign Test Conditions that Can be
Replicated in Commercial Setting
The leaching bottle roll and column tests were performed at room
temperature and at atmospheric pressure based on Gibellini's
representative grade from grab sampling method across the width of
the mineralization at various locations of the Project. These
samples are characterized in Table 14:
Table 14
Sample Number
Sample ID
Weight kg
Head Grade V2O5 (%)
1
18-L6-28
17.0
0.665
2
18-L6-29
17.0
0.885
3
18-L6-30
12.5
0.370
4
18-L6-31
18.0
0.210
5
18-L6-32
13.5
0.420
6
18-L6-33
22.5
0.280
7
18-L6-34
19.0
0.315
8
18-L6-35
20.0
0.185
9
18-L6-36
18.0
0.165
10
18-L6-37
20.0
0.195
Total
177.5
For the purpose of metallurgical
testing, the samples were mixed to produce a composite material
with the average grade of 0.30%
V
2
O
5
which is representative of Gibellini
resource grade. The composite material was ground to -75 lm feed.
The Company believes the test conditions can easily be replicated
in a commercial heap leach setting with low technical and
implementation risk.
Unique Vanadium Mineralogy in Achieving Remarkable Recovery at Room
Temperature and Atmospheric Pressure
NWME performed detailed mineralogical
analysis which included microscope identification using a Carl
Zeiss Axioskop, XRD analysis on Bruker D8-A25 XRD, multi-element
analysis, electron probe X-ray microanalysis on JEOL JXA 8230,
scanning electron microscopy/energy dispersive X-ray spectroscopy
analysis on Mineral Liberation Analizer 650 and V element phase
analysis. This mineralogical analysis confirmed that the Gibellini
resource has a high percentage of independent vanadium minerals
("
IVM
")
such as kazakhstanite, shubnelite, sherwoodite, bokite, which can
be leached easily at room temperature and atmospheric pressure
within a short time frame.
NWME noted the unique nature of the Gibellini samples with over 45%
IVM versus numerous other typical black shale deposits which they
have encountered containing less than 10% IVM.
All of the test work carried out on the material from the Gibellini
Project indicate that there is a two-stage leaching phenomenon in
Gibellini ore - approximately 50% of the vanadium leaches in the
first 96 hours (independent vanadium minerals), and the remaining
leaching approximately 15 to 20% occurs over a longer time
horizon.
Heap leaching is the lowest-cost recovery method compared to
roasting, and pressured container VAC leaching; whereby capital
costs can compound to multiple times greater for the same
throughput. Gibellini's high IVM content is a key competitive
differentiator which places the deposit in the top tier of black
shale deposits in terms of pre-production capital cost required
based on NWME's research. The mineralogical results of the
Gibellini ore as characterized by NWME's test work is shown
in Table 15:
Table 15
Mineral
composition
Mineral
content %
V
content in minerals %
V
distribution %
Independent vanadium minerals
45.2% of vanadium content
Kazakhstanite
0.15
40.91
19.77
Shubnelite
0.13
27.86
11.67
Sherwoodite
0.08
34.54
8.90
Bokite
0.03
36.51
3.53
Melanovanadite
0.01
41.27
1.33
Vanadium-bearing layered aluminosilicate minerals
20.8% of vanadium content
Sericite
8.59
0.57
14.63
Illite
5.58
0.28
5.03
Chlorite
0.81
0.44
1.14
Nacrite-palygorskite
0.70
-
-
Vanadium-bearing layered iron oxide, sulfate 34% of vanadium
content
Limonite
1.76
5.48
31.07
Strengite
0.64
0.49
1.01
Jarosite
0.48
1.24
1.92
Gangue
Quartz
75.88
-
-
Apatite
2.83
-
-
Potassium feldspar
0.73
-
-
Dolomite
0.66
-
-
Carbonaceous
0.45
-
-
Rutile
0.25
-
-
Barite
0.04
-
-
Pyrite
0.20
-
-
Total
100.00
100.00
25
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Low Carbonate Content Results in Exceptional Low Acid
Consumption
NWME detailed mineralogical analysis which included microscope
identification using a Carl Zeiss Axioskop, XRD analysis on Bruker
D8-A25 XRD, multi-element analysis, electron probe X-ray
microanalysis on JEOL JXA 8230, scanning electron microscopy/energy
dispersive X-ray spectroscopy analysis on Mineral Liberation
Analyzer 650 and V element phase analysis, confirmed the extremely
low carbonaceous content of Gibellini's oxide and transition
samples. This explains the low acid consumption (less than 50 kg
per tonne) compared to other average black shale deposits of 200 kg
to 300 kg per tonne based on extensive NWME data compilation. Given
acid cost accounts for approximately 50% of the Project's
operating expenses, Gibellini's low carbon content is a key
competitive differentiator which places it in the top tier of black
shale deposits in terms of processing cost based on NWME's
findings.
The following table is a generalized comparison of
Gibellini's deposit to a composite of typical black shale
vanadium deposits:
Table 16
Gibellini Vanadium
Deposit
Black Shale Series Vanadium
Deposits
Host Rock
Silica State
Carbon Siliceous Rocks with
Mudstone
The Mineral
Composition
High Silica, Low Aluminium
and Low Carbonaceous. SiO2-78.40%; Al2O3 - 4.13%;
T(C) -
0.47%
High Silica, High Aluminum
and High Carbonaceous. SiO2-62-93%; Al2O3 > 7%;
T(C)
>
10%
The next step for NWME
will be to investigate the application of NWME's proprietary
technology to Gibellini mineral to produce a high purity vanadium
pentoxide product with 99.5%
V
2
O
5
content. During the
Company's team visit to NWME's processing facilities in
China in June 2018, NWME commented that its own black-shale
vanadium mine produces exclusively 99.5%
V
2
O
5
which commands a 15 to
25% pricing premium (compared to benchmark 98% purity) to supply to
the vanadium battery, chemical, and aerospace
industries
. The Company delivered
the representative samples from the Project with a total weight of
approximately 1 tonne to NWME in China and the test has begun. The
Company expects to receive the results from the second phase of
metallurgical testing by NWME in the second half of
2019.
On March 26, 2019,
the Company announced vanadium assay results from its Fall 2018
exploration reconnaissance program on the Gibellini Project. The
155 assays are taken from three prospective exploration areas all
within 5km to existing Gibellini vanadium NI43-101 compliant
resource pit outline. Surface grab samples assay as high as 2%
vanadium pentoxide (V2O5) and 75 samples (48% of total 155) have
V2O5 grades greater than the Gibellini deposit's cut-off
grade of 0.101% V2O5 at $12.5/lb V2O5; V2O5 currently trades at
approximately $16/lb.
The high vanadium
assay results along the 5-kilometer northeast-southwest trend which
line-up the Northeast Prospect, through Gibellini Hill, Louie Hill,
Middle Earth Prospect, and Big Sky Prospect providing an indication
of potential and possibly significant future expansion of vanadium
mineralization along this corridor.
Detailed maps are
available at
www.silverelef.com
.
Big Sky Prospect (300m by 50m)
The Big Sky
prospect occurs 3.1 km southwest of the Gibellini Hill measured and
indicated resource and 1.8 km southwest of Louie Hill inferred
resource. A total of 62 samples were taken, of which 40%
(
n
=25) returned assays
greater than Gibellini cut-off grade. Sixteen (16) samples returned
assays >0.200 V2O5. The distribution of samples occurs along a
300 meter exposure of the Woodruff Formation. Assays showing
>0.200 V2O5 are shown in Table 17.
26
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 17
. V2O5% grab sample assay
results at Big Sky prospect for samples with
>0.200%
SAMPLE
ID
Prospect
V2O5
%
301910
Big
Sky
0.261
301913
Big
Sky
0.223
301915
Big
Sky
0.346
301916
Big
Sky
0.400
301918
Big
Sky
0.712
301920
Big
Sky
0.264
301926
Big
Sky
0.580
301927
Big
Sky
2.008
301928
Big
Sky
0.848
301944
Big
Sky
0.264
301946
Big
Sky
0.280
301947
Big
Sky
0.218
301950
Big
Sky
0.261
302050
Big
Sky
0.214
302054
Big
Sky
0.787
302055
Big
Sky
1.982
Middle Earth Prospect (200m by 70m)
The Middle Earth
prospect occurs 1.7 km southeast of the Gibellini Hill deposit and
300 meters south of the Louie Hill deposit. A total of 50 samples
were collected of which 68% (
n
=34) returned assays >0.101% V2O5
or the Gibellini cut-off grade. Twenty-seven (27) samples returned
assays >0.200 V2O5. The samples are distributed over 3 road cuts
of exposed Woodruff Formation making up a 200 meter by 70-meter
areal footprint. Assays showing >0.200 V2O5 are shown in Table
18.
27
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 18.
V2O5% grab sample assay
results at Middle Earth prospect for samples with
>0.200%
SAMPLE
ID
Prospect
V2O5
%
301951
Middle
Earth
0.350
301952
Middle
Earth
0.482
301968
Middle
Earth
0.628
301969
Middle
Earth
0.605
301970
Middle
Earth
0.634
301972
Middle
Earth
0.252
301973
Middle
Earth
0.687
301974
Middle
Earth
0.470
301975
Middle
Earth
0.612
301976
Middle
Earth
0.637
301978
Middle
Earth
0.559
301979
Middle
Earth
0.557
301980
Middle
Earth
0.259
301981
Middle
Earth
0.405
301983
Middle
Earth
0.255
301984
Middle
Earth
0.303
301985
Middle
Earth
0.434
301987
Middle
Earth
0.291
301988
Middle
Earth
1.294
301989
Middle
Earth
0.261
301991
Middle
Earth
0.314
301992
Middle
Earth
0.457
301993
Middle
Earth
0.380
301995
Middle
Earth
0.302
301998
Middle
Earth
0.539
301999
Middle
Earth
0.618
302000
Middle
Earth
0.532
Northeast Trench Prospect (500m by 300m)
The Northeast
Trench prospect occurs 1.2 km northeast of the Gibellini Hill
deposit and 2.5 km northeast of the Louie Hill deposit. A total of
43 samples were collected of which 37% (
n
=16) returned assays >0.101% V2O5
or the Gibellini cut-off grade. Three (3) samples returned assays
>0.200 V2O5. The samples are distributed through road cuts
("trenches") and dry gulches of exposed Woodruff
Formation making up a 500 meter by 350-meter areal footprint. The
exposure at the Northeast Trench is greatly obscured by colluvium
material however the extent where it is exposed might indicate a
large volume of Woodruff Formation yet to be explored. Assays
showing >0.200 V2O5 are shown in Table 19.
28
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 19.
V2O5% grab sample assay
results at Northeast Trench prospect for samples with
>0.200%
SAMPLE
ID
Prospect
V2O5
%
302004
NE
Trench
0.239
302005
NE
Trench
0.380
302016
NE
Trench
0.303
Water supply
On August 20, 2018,
the Company
secured
water supply for the Gibellini Project construction and operation.
The Company signed a 10-year Agreement with the owner of a private
ranch, located approximately 14.5 km from the Gibellini Project.
The Agreement can be extended for any number of additional 7-year
terms, not to exceed (with the primary term) a total of 99
years.
Per the terms of
the Agreement, the lessor granted to the Company the rights to 805
acre-feet (approximately 262.4 million gallons) of water per year
for the Gibellini Project, at a minimum flow rate of 500 gallons
per minute ("
gpm
") from its year-round springs
surface water stream. The water flow rate was measured at the ranch
springs in 1965, in 1981, from December 2011 to September 2013, and
most recently, in 2017. The water flow rate ranges from 1,000 to
3,900 gpm with an average flow rate of 2,690 gpm, which exceeds the
project's maximum water operational requirement of 420 gpm
based on the process engineering design prepared by Scotia
International of Nevada, Inc. as a part of engineering,
procurement, construction and management work done in
2014.license
The Gibellini
Project completed water-related baseline studies including the
drilling of water-test wells, water source data collection,
characterization, flow rate testing and modeling. Due to the fact
that the Agreement provides a source of water from surface springs
located on a private ranch and baseline studies related to it have
been completed, the Company expects to significantly expedite the
permitting process by eliminating the need to appropriate water
rights from the Nevada Division of Water Resources
("
DWR
").
Offtake and project financing
The Company has
received unsolicited expressions of interest from various potential
investment sources and is currently engaged in discussions with
potential cornerstone investors, vanadium product off-takers and
banks on potential equity, debt and prepaid off-take financing
possibilities. The Company expects to report material progress in
due course.
On October 31, 2019,
the Company
submitted permit applications for the Water
Pollution Control Permit and the Class II Air Quality Permit. These
Nevada state permits have been developed to provide construction
level engineering that supports the mine plan previously submitted
to the BLM in the Plan of Operations. Comments received from both
the BLM and SWCA were used as guidance in the engineering design to
ensure the State and Federal Permits are aligned and reflect the
most current guidance provided by both the NDEP and
BLM.
NDEP Water Pollution Control Permit
Mining in Nevada is
regulated under the authority of the Nevada Revised Statutes (NRS)
445A.300-NRS 445A.730 and the Nevada Administrative Code (NAC)
445A.350-NAC 445A.447. Water Pollution Control Permits (WPCP) are
issued to an operator prior to the construction of any mining,
milling, or other beneficiation process activity. Facilities
utilizing chemicals for processing ores are required to meet a
zero-discharge performance standard such that Waters of the State
will not be degraded.
The engineering
design for heap leaching, the processing facility, and the mine
design (M3 Engineering and Newfields Companies, LLC) was integrated
into to the site Closure Plan that was also submitted as part of
the WPCP application. This design will facilitate concurrent
closure of the heap as each heap cell is finished leaching. This
will allow the Closure Plan to be initiated during operations. At
the end of active mining, the site can be closed at minimal
technical risk. This reduces the closure duration and liability and
the commensurate reclamation bond.
29
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Air Quality Class II Permit
The Nevada Bureau
of Air Pollution Control issues air quality operating permits to
stationary and temporary mobile sources that emit regulated
pollutants to ensure that these emissions do not harm public health
or cause significant deterioration in areas that presently have
clean air. This is achieved by stipulating specific permit
conditions designed to limit the amount of pollutants that sources
may emit into the air as a regular part of their business
processes.
Any
process/activity that is an emission source requires an air quality
permit. Nevada Revised Statute (NRS) 445B.155 defines an emission
source as "any property, real or personal, which directly
emits or may emit any air contaminant."
The Class II Permit
for Gibellini is for facilities that emit less than 100 tons per
year for any one regulated pollutant. Since the vanadium processing
will utilize a heap leach, the emissions will be under the
threshold for more complex air permits. The engineering design
incorporates stringent emission control technology to minimize
emissions. The modeled emissions from the entire Gibellini Project
are well below the National Ambient Air Quality Standards
(NAAQS).
The Enhanced
Baseline Reports (EBR's) were extensively used in the Project
engineering design to ensure that potential environmental impacts
identified in the EBR's would be avoided or minimized by
facility design. These engineering controls help ensure that
avoidance of potential environmental impacts is "built
into" the project from the start of the design process. Doing
so will allow Environmental Protection Measures to be taken to
minimize the risk of impacts that cannot be completely avoided in
the design and ensure up-front project planning that is sensitive
to all environmental resources.
Integration with BLM 12-month 3355 EIS Process
The Nevada state
permit applications were brought forward in the permitting process
to identify any issues resulting from NDEP review that could affect
the project design in the Plan of Operations early. By resolving
the State permitting issues prior to the start of the EIS, it will
help ensure that the 12-month schedule mandated by the BLM
Secretarial Order 3355 (S.O. 3355) can be met and interruptions to
the schedule can be avoided.
The
Company continues with its EPCM work and expects Phase 1 of the
EPCM, updating basic engineering design, to be completed by 2020;
Phase 2, equipment procurement and detailed engineering design, to
be completed in 2021; Phase 3, facilities construction, to start in
2021 and be completed in 2022 with the Gibellini Project wet
commissioning expected to be in 2022.
During the year
ended December 31, 2019, the Company incurred total costs of
$4,956,938 (same period 2018 - $2,727,759) for the Gibellini
Project including for $3,200,773 (2018 - $1,509,587) for geological
and engineering services, $1,470,007 (2018 - $831,023) for
personnel, legal, general and administrative expenses and $286,158
(2018 - $387,149) for royalties, fees and taxes.
2020 Outlook
The Company intends
to spend the available funds as set forth above based on annual
budgets approved by the Board of Directors consistent with
established internal control guidelines, and programs recommended
in the Gibellini PEA. However, there may be circumstances where,
for sound business reasons, a reallocation of the net proceeds may
be necessary. The actual amount that the Company spends in
connection with each of the intended uses of proceeds may vary
significantly from the amounts specified above and will depend on a
number of factors, including those referred to under
"
Risk
Factors
".
The Company's
2020 Gibellini objectives are:
●
Trigger EIS NOI by
end of quarter 1, 2020;
●
Develop strategy
with State of Nevada to potentially fill US Critical Mineral
Inventory;
●
Explore off-take
options for vanadium products; and
●
Complete all Nevada
permits.
30
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Pulacayo-Paca Property, Bolivia
On January 2, 2015,
pursuant to the terms of the acquisition agreement entered into
between the Company and Apogee Silver Ltd. ("
Apogee
"), the Company acquired the
Pulacayo Project in Bolivia through the acquisition of the issued
and outstanding shares of
ASC Holdings
Limited and ASC Bolivia LDC,
which together, hold the issued
and outstanding shares of ASC Bolivia LDC Sucursal Bolivia. ASC
Bolivia LDC Sucursal Bolivia controls the mining rights to the
concessions through a separate joint venture agreement with the
Pulacayo Ltda. Mining Cooperative who hold the mining rights
through a lease agreement with state owned Mining Corporation of
Bolivia, COMIBOL.
The Pulacayo
Project comprises seven concessions covering an area of
approximately 3,550 hectares of contiguous mining concessions
centered on the historical Pulacayo mine and town site. The
Pulacayo Project is located 18 km east of the town of Uyuni in the
Department of Potosi in southwestern Bolivia. The Project is also
located
107
km northeast of Sumitomo Corporation's San Cristobal silver
mine, 185 km southwest of Coeur Mining, Inc.'s San Bartolome
silver mine, and 139 km north of Pan American Silver Corp.'s
San Vicente silver mine.
On October 7, 2019, the Company announced that the
Pulacayo Mining Production Contract (
"MPC"
)
between the Company and COMIBOL which was executed on October 3,
2019. The MPC grants the Company the 100% exclusive right to
develop and mine at the Pulacayo and Paca concessions for up to 30
years.
It is comparable to a
mining license in Canada or the United States.
In November 2017, the Company received an
independent technical report with an effective date of October 20,
2017 titled "Updated Mineral Resource Estimate and Technical
Report for the Pulacayo Project" (the
"
Report
"). The Report was prepared by Mercator
Geological Services Limited (
"Mercator"
)
on the Company's Pulacayo Project and has been filed under
the Company's profile on the System for Electronic Document
Analysis and Retrieval (
"SEDAR"
)
at
www.sedar.com
.
The
Report describes resources estimated following the guidelines of
the CIM Definition Standards for Mineral Resources and Mineral
Reserves.
Two
mineral resource estimates were disclosed according to the
requirements NI 43-101. The first for the Pulacayo deposit and the
second for the Paca deposit.
31
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Pulacayo Deposit
Results of the mineral resource estimate prepared
by Mercator for the Pulacayo deposit are presented below in Table
20 and filed via SEDAR at
www.sedar.com
.
The
Report outlined 2.08 million tonnes at a weighted average grade of
Ag 455 g/t, Pb 2.18%, Zn 3.19% (Ag Eq. 594 g/t) in the indicated
category and 0.48 million tonnes at a weighted average grade of Ag
406 g/t, Pb 2.08%, Zn 3.93% (Ag Eq. 572 g/t) in the inferred
category. The contained metal content estimated by the Company, of
the indicated category resources is 30.4 million ounces of silver,
100.0 million pounds of lead, 146.3 million pounds of zinc. The
contained metal content estimated by the Company, of the inferred
category resource is 6.3 million ounces of silver, 22.0 million
pounds of lead, and 41.6 million pounds of zinc (more resource
details in the table below).
Table 20
. Pulacayo Indicated and Inferred Mineral Resource
Statement Details
Pulacayo Mineral Resource Statement – Effective October 20,
2017
Ag Eq. Cut-Off (g/t)
Category
Tonnes
*
Ag (g/t)
Pb (%)
Zn (%)
Ag Eq. (g/t)
400
Indicated
2,080,000
455
2.18
3.19
594
Inferred
480,000
406
2.08
3.93
572
Notes:
(1)
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.
(2)
Raw silver assays were capped at 1,700 g/t, raw lead assays were
capped at 15% and raw zinc assays were capped at 15%.
(3)
Silver equivalent Ag Eq. (g/t) = Ag (g/t)*89.2% + (Pb% *(US$0.94/
lb. Pb /14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000*91.9%)
+ (Zn% *(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000*82.9%)
(4)
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb. Zn. Metal
recoveries used in the silver equivalent equation reflect historic
metallurgical results disclosed by Apogee Silver Ltd. (Porter et
al., 2013).
(5)
Metal grades were interpolated within wire-framed,
three-dimensional silver domain solids using Geovia-Surpac Ver.
6.6.1 software and inverse distance squared interpolation methods.
Block size is 10m(X) by 10m(Z) by 2m(Y). Historic mine void space
was removed from the model prior to reporting of
resources.
(6)
Block density factors reflect three-dimensional modeling of drill
core density determinations.
(7)
Mineral resources are considered to have reasonable expectation for
economic development using underground mining methods based on the
deposit history, resource amount and metal grades, current metal
pricing and comparison to broadly comparable deposits
elsewhere.
(8)
Rounding of figures may result in apparent differences between
tonnes, grade and contained ounces.
(9)
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(10)
Tonnes are rounded to nearest 10,000.
The
contained metals estimated by the Company based on in the October
20, 2017 resource estimate by Mercator are presented in Table
21.
Table 21
: Contained Metals Based on October 20, 2017
Pulacayo Deposit
**
Mineral
Resource Estimate
Metal
Indicated Resource
Inferred Resource
Silver
30.4
million oz.
6.3
million oz.
Lead
100.0
million lbs.
22.0
million lbs.
Zinc
146.3
million lbs.
41.6
million lbs.
32
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
**
Based
on the resource estimate Ag Eq. cut-off value of 400 g/t and 100%
recovery; figures are rounded to the nearest
100,000
th
increment
Between
2006 and 2012, a total of 69,739 metres of diamond drilling (226
surface and 42 underground drill holes) was conducted at Pulacayo,
results of which support the mineral resource estimate reported in
this news release. The Pulacayo site is currently permitted for
production at a milling rate of 560 tonnes per day and no known
legal, political, environmental, or other risks that would
materially affect potential future development have been identified
by the Company at the effective date of the current (October 20,
2017) mineral resource estimate.
Approximately
85% of the resource tonnage identified at the 400 g/t Ag Eq.
cut-off value occurs within 150 meters vertical distance from the
main San Leon tunnel, which may facilitate future mineral
extraction.
Paca Deposit
The
Paca deposit is located in Bolivia approximately 7 km north of the
Pulacayo deposit.
Results
of the mineral resource estimate prepared by Mercator for the Paca
deposit are presented below in Table 3. The Report described
previously and filed on SEDAR documents the resource
estimate.
The
Report outlined 2.54 million tonnes at a weighted average grade of
Ag 256 g/t, Pb 1.03%, Zn 1.10% (Ag Eq. 342 g/t) in the inferred
category. The contained metal content estimated by the Company, of
the inferred category resources is 20.9 million ounces of silver,
57.7 million pounds of lead, 61.6 million pounds of zinc. (more
resource details in the table below).
Table 22
. Paca Inferred Mineral Resource Statement
Details
Paca Mineral Resource Statement – Effective October 20,
2017
Ag Eq. Cut-Off (g/t)
Category
Tonnes
*
Ag (g/t)
Pb (%)
Zn (%)
Ag Eq. (g/t)
200
Inferred
2,540,000
256
1.03
1.10
342
Notes
(1)
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.
(2)
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.
(3)
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb
/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000) + (Zn%
*(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.
(4)
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn and reflect
those used for the Pulacayo deposit mineral resource estimate
reported above.
(5)
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting resources.
(6)
A block density factor of 2.26g/cm³ was used and reflects the
average of 799 density measurements.
(7)
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.
(8)
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(9)
Tonnes are rounded to nearest 10,000.
The
contained metals estimated by the Company based on the October 20,
2017 resource estimate by Mercator are presented in Table
23.
33
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 23
. Contained Metals Based on October 20, 2017 Paca
Deposit** Mineral Resource Estimate
Metal
Inferred Resource
Silver
20.9
million oz.
Lead
57.7
million lbs.
Zinc
61.6
million lbs.
**
Based
on the resource estimate Ag Eq. cut-off value of 200 g/t and 100%
recovery; figures are rounded to the nearest 100,000th
increment.
The
resource estimate is based on results of 97 diamond drill holes and
1 reverse circulation drill hole totaling 18,160 meters completed
between 2002 and 2007.
The
geology of the Paca deposit includes a core zone of feeder-style
mineralization associated predominantly with brecciated andesite,
plus additional zones of shallowly dipping mantos-style
mineralization that are hosted by the surrounding
volcano-sedimentary sequence. The Paca deposit remains open at
depth and along strike.
The
Paca mineralization starts from surface and the deposit may be
amenable to open-pit mining and this will be evaluated further in
the future.
The
Company's research has shown that relatively few silver open
pit deposits have been defined at resource cut-off values of 200
g/t Ag Eq. or more.
Permitting and Licensing
Pulacayo MPC between the Company and
COMIBOL
was executed on October 3,
2019.
The
Company was notified of final government resolution approving the
MPC on September 27, 2019. The MPC grants the Company the 100%
exclusive right to develop and mine at the Pulacayo and Paca
concessions for up to 30 years. It is comparable to a mining
license in Canada or the United States.
Exploration
On September 30,
2019, the Company announced
a
5,000-meter diamond drilling at Pulacayo has started with first set
of assay results reported in November 2019. Pictures of core
samples are available on the Company's website at
www.silverelef.com
.
Phase 1 drilling
is comprised of surface drilling to
expand the NI43-101 compliant Paca resource (see the
Company's news release dated November 22, 2017) in the
northern and eastern directions where previous drill holes
encountered high grade surface intercepts, including PND-062, which
included 42 meters of 406 g/t Ag located on the edge of the
resource envelope. The Company will also evaluate upgrading the
Paca resource from an Inferred category to Measured and Indicated
categories through infill drilling. Some of the high-grade zone
extensions being explored are shown below:
Table 24
hole Nº
from – to (m)
int (m)
Ag(g/t)
Pb(%)
Zn
PND008
18.0
– 33.5
15.5
314
1.0
0.4
PND029
12.0
– 22.3
10.3
436
0.0
0.0
PND062
10.0
– 52.0
42.0
406
0.8
0.1
ESM2
0.0
– 38.0
38.0
411
1.4
1.2
34
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The
geology of the Paca deposit includes a core zone of feeder-style
mineralization associated predominantly with brecciated andesite,
plus additional zones of shallowly dipping mantos-style
mineralization that are hosted by the surrounding
volcano-sedimentary sequence. The Paca deposit remains open at
depth and along strike. The Paca mineralization starts from
surface, and the deposit may be amenable to open-pit mining which
will be evaluated in the future.
Phase 2 drilling
commenced in December 2019. The plan
was to expand the Pulacayo resource base along strike from 1km to
3km and at depth from 300m to 600m. There will also be infill
drilling to confirm the geological model and test continuity of
shallow high grade indicated resource blocks that are near the San
Leon tunnel and accessible through the existing adit. Some of the
high-grade zone extensions being explored are shown in Table
25.
Table 25
hole Nº
from – to (m)
int (m)
Ag(g/t)
Pb(%)
Zn %
Distancefrom adit (m)
PUD005
96.2
– 108.0
11.9
689
1.9
1.4
-67.5
PUD007
70.0
– 96.8
26.8
517
2.3
4.2
-44.5
PUD057
374.0
– 378.0
4.0
1,184
0.8
2.3
-137.5
PUD069
281.0
– 294.0
13.0
624
2.1
4.2
-46.0
PUD109
293.6
– 298.4
4.8
3,607
3.8
4.1
-30.4
PUD118
174.0
– 184.0
10.0
1,248
1.7
2.6
-93.9
PUD134
128.2
– 151.5
23.3
514
1.3
1.9
-55.7
PUD150
290.0
– 302.0
11.2
882
0.4
0.6
-75.2
PUD159
343.0
– 354.0
11.0
790
0.6
0.6
-116.6
PUD170
237.0
– 239.0
2.0
3,163
0.1
0.9
-32.5
On
October 28, 2019, the Company announced the diamond drilling
results from Phase 1 drilling at Paca. Borehole PND 110 intersected
89 meters grading 378 g/t Ag-Equivalent ("AgEq;" 279
g/t Ag, 1.28% Zn, 1.17% Pb) starting from 9 meters downhole,
including 12 meters grading 1,085 g/t Ag starting at just 16 meters
downhole.
Phase
1 Drill highlights included:
●
PND107:
54.0 meters of 238 g/t AgEq (151 g/t Ag, 1.01% Zn, 1.17% Pb) from
55.0 to 109.0 meters;
●
PND108:
24.0 meters of 307 g/t AgEq (200 g/t Ag, 0.60% Zn, 2.12% Pb) from
33.0 to 57.0 meters;
●
PND109:
28.0 meters of 281 g/t AgEq (242 g/t Ag, 0.27% Zn, 0.69% Pb) from
15.0 to 43.0 meters;
●
PND110:
89.0 meters of 378 g/t AgEq (279 g/t Ag, 1.28% Zn, 1.17% Pb) from
9.0 to 98.0 meters;
●
PND112:
1.0 meters of 904 g/t AgEq (890 g/t Ag, 0.05% Zn, 0.31% Pb) from
21.0 to 22.0 meters;
●
PND
113: 25.0 meters of 209 g/t AgEq (196 g/t Ag, 0.04% Zn, 0.29% Pb)
from 3.0 to 28.0 meters.
Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 77% of reported core lengths.
Silver
equivalent ("AgEq") calculation is based on NI43-101
compliant 2017 resource report completed for the Paca deposit by
Mercator Geological Services (see the Company's news release
dated November 22, 2017). Silver equivalent is calculated as
follows: Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb /14.583
Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000) + (Zn% *(US$1.00/lb.
Zn/14.583 Troy oz./lb./US$16.50 per Troy oz. Ag)*10,000). 100 %
metal recoveries are assumed based on lack of comprehensive
metallurgical results
35
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
PUD110 reported the highest silver width-grade
intercept at the Paca project to date, which now has over 19,000
drill meters completed between the Company and the previous
operator since 2002. These Phase 1 drill results are anticipated to
increase the overall tonnage and upgrade the confidence level of
the current NI43-101 compliant resource estimate prepared
independently by Mercator in 2017 (Effective from October 20th,
2017; available on
www.SEDAR.com
):
Table 26.
Paca
Inferred Mineral Resource Statement Details
Paca Mineral Resource Statement – Effective October 20,
2017
Ag Eq. Cut-Off (g/t)
Category
Tonnes
*
Ag (g/t)
Pb (%)
Zn (%)
Ag Eq. (g/t)
200
Inferred
2,540,000
256
1.03
1.10
342
Contained Metals(million oz,lb,lb)
20.9
57.7
61.6
Notes:
(1)
Mineral resources are estimated in conformance with the CIM
Standards referenced in NI 43-101.
(2)
Raw silver assays were capped at 1,050 g/t, raw lead assays were
capped at 5% and raw zinc assays were capped at 5%.
(3)
Silver equivalent Ag Eq. (g/t) = Ag (g/t) + (Pb% *(US$0.94/ lb. Pb
/14.583 Troy oz./lb./US$16.50 per Troy oz.Ag)*10,000) + (Zn%
*(US$1.00/lb. Zn/14.583 Troy oz./lb./US$16.50 per Troy oz.
Ag)*10,000). 100 % metal recoveries are assumed based on lack of
comprehensive metallurgical results.
(4)
Metal prices used in the silver equivalent calculation are
US$16.50/Troy oz. Ag, US$0.94/lb Pb and US$1.00/lb Zn and reflect
those used for the Pulacayo deposit mineral resource estimate
reported above.
(5)
Metal grades were interpolated within wire-framed,
three-dimensional solids using Geovia-Surpac Ver. 6.7 software and
inverse distance squared interpolation methods. Block size is 5m
(X) by 5m (Z) by 2.5m (Y). Historic mine void space was removed
from the model prior to reporting resources.
(6)
A block density factor of 2.26g/cm³ was used and reflects the
average of 799 density measurements.
(7)
Mineral resources are considered to have reasonable expectation for
economic development using combined underground and open pit
methods based on the deposit history, resource amount and metal
grades, current metal pricing and comparison to broadly comparable
deposits elsewhere.
(8)
Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
(9)
Tonnes are rounded to nearest 10,000.
(10)
Contained Metals Based on October 20, 2017 Paca Deposit
 Mineral Resource Estimate.
(11)
Based on the resource estimate Ag Eq. cut-off value of 200 g/t and
100% recovery; figures are rounded to the nearest 100,000th
increment.
(12)
The resource estimate is based on results of 97 diamond drill holes
and 1 reverse circulation drill hole totaling 18,160 meters
completed between 2002 and 2007.
On December 18,
2019, the Company
announced that phase
two drilling which is a 5,000-meter program that will consist
mainly of wide step-out drilling up to 1.5km west (Western Block)
of the current 43-101 Pulacayo resource, has started the Pulacayo
Project. That current Pulacayo resource covers 1.4 km in strike and
represents only a small portion of the Tajo vein system which is
over 3 km in strike and open to least 1,000 meters at depth,
according to historical records of underground
mining.
The
complete detailed composited drill intersections of mineralization
are tabulated as below:
36
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 27
Hole
From(m)
To (m)
Length(m)
Ag (g/t)
Zn %
Pb %
AgEq
PND107
55.0
109.0
54.0
151
1.01
1.17
238
incl
…
70.0
77.0
7.0
178
0.97
1.37
271
and
…
70.0
109.0
39.0
180
1.20
1.34
283
and
…
87.0
109.0
22.0
240
1.23
1.65
355
PND108
15.0
65.0
50.0
135
0.40
1.42
208
incl
…
33.0
57.0
24.0
200
0.60
2.12
307
and
…
33.0
43.0
10.0
257
0.41
1.49
333
94.0
96.0
2.0
160
0.94
0.52
220
PND109
15.0
43.0
28.0
242
0.27
0.69
281
incl
…
20.0
29.0
9.0
391
0.26
1.10
445
and
…
24.0
26.0
2.0
1223
0.42
3.20
1365
and
…
37.0
43.0
6.0
282
0.31
0.52
315
75.0
173.0
98.0
15
2.47
1.28
168
incl
…
93.0
94.0
1.0
167
3.64
1.24
367
PND110
9.0
182.0
173.0
95
1.63
1.40
273
incl…
9.0
98.0
89.0
279
1.28
1.17
378
and…
9.0
28.0
19.0
718
0.05
0.74
749
and…
9.0
12.0
3.0
145
0.07
0.90
183
and…
16.0
28.0
12.0
1085
0.04
0.71
1115
and…
44.0
180.0
138.0
87
1.59
2.01
233
and…
44.0
46.5
2.5
111
0.61
1.09
179
and…
44.0
98.0
54.0
98.0
2.03
1.52
343
and…
52.0
54.0
2.0
115
1.61
1.33
234
and…
60.0
82.0
22.0
328
1.98
1.43
466
and…
61.0
65.0
4.0
1248
1.93
2.88
1441
and…
86.0
94.0
8.0
270
2.83
2.74
495
and…
97.0
98.0
1.0
155
3.26
3.03
409
PND111
0.0
2.4
2.4
110
0.16
0.58
139
PND112
12.0
28.0
16.0
154
0.08
0.39
173
incl…
21.0
22.0
1.0
890
0.05
0.31
904
33.0
36.0
3.0
120
0.07
2.40
216
43.0
44.6
1.6
100
0.23
1.58
171
PND113
3.0
28.0
25.0
196
0.04
0.29
209
incl…
3.0
17.0
14.0
185
0.04
0.38
202
and…
21.0
28.0
7.0
310
0.04
0.19
320
37
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 77% of reported core lengths.
The
Company adopts industry recognized best practices in its
implementation of QA/QC methods. A geochemical standard control
sample and one blank sample is inserted into the sample stream
every 20th sample. Duplicates are taken at every 40th sample.
Standards and duplicates including lab duplicates and standards and
are analyzed using Thompson-Howarth plots. Samples are shipped to
ALS Global Laboratories in Ururo, Bolivia for preparation, and then
shipped to ALS Global laboratories for analysis in Lima, Peru.
Samples were analyzed using Intermediate Level Four Acid Digestion.
Silver overlimits ("ore grade") are analyzed using fire
assay with a gravimetric finish. ALS Laboratories sample management
system meets all requirements of International Standards ISO/IEC
17025:2017 and ISO 9001:2015. All ALS geochemical hub laboratories
are accredited to ISO/IEC 17025:2017 for specific analytical
procedures.
All
samples are taken from HQ-diameter core which split in half by a
diamond-blade masonry saw. One-half of the core is submitted for
laboratory analysis and the other half is preserved on the
Company's secured core facility for reference. All core is
geotechnically analyzed, photographed and then logged by geologists
prior to sampling.
During the year
ended December 31, 2019, the Company incurred total costs of
$1,474,026 (same period 2018 - $898,650) for the Pulacayo Project
including for $970,955 (2018 - $51,112) for geological and
engineering services, $503,071 (2018 - $847,538) for personnel,
legal, general and administrative expenses.
During the year
ended December 31, 2019, the Company assessed whether there was any
indication that the previously recognized impairment loss in
connection with the Pulacayo Paca property
may no longer exist or may have decreased. The
Company noted the following indications that the impairment may no
longer exist:
●
The
Company signed a mining production contract granting the Company
the 100% exclusive right to develop and mine at the Pulacayo Paca
property;
●
The
Company renewed its exploration focus to develop the Pulacayo Paca
property in the current year;
●
The Company re-initiated active exploration and
drilling program on the property
;
●
Completed a
positive final settlement of Bolivian tax dispute.
As the Company
identified indications that the impairment may no longer exist, the
Company completed an assessment to determine the recoverable amount
of the Pulacayo Paca property.
In
order to estimate the fair-value of the property the Company
engaged a third-party valuation consultant and also utilized level
3 inputs on the fair value hierarchy to estimate the recoverable
amount based on the property's fair value less costs of
disposal determined with reference to dollars per unit of metal
in-situ.
With
reference to metal in-situ, the Company applied US$0.79 per ounce
of silver resource to its 36.8 million ounces of silver resources
and US$0.0136 per pound of zinc or lead in resource to its 303
million pounds of zinc and lead.
The
Company also considered data derived from properties similar to the
Pulacayo Paca Property. The data consisted of property transactions
and market valuations of companies holding comparable properties,
adjusted to reflect the possible impact of factors such as
location, political jurisdiction, commodity, geology,
mineralization, stage of exploration, resources, infrastructure and
property size.
As the
recoverable amount estimated with respect to the above was $31.4
million an impairment recovery of $13,708,200 was recorded during
the year ended December 31, 2019.
2020
In January 2020, the
Company
has completed the first 3 holes of the planned 17
drill holes at the Pulacayo Project. These step-out drill holes are
located 25-, 50- and 115 meters west of the existing Pulacayo
resource model. The Company has also mobilized a second drilling
rig to Pulacayo and expects to complete the proposed 5,000 meter
drill program in February with full assay results available by
March 2020. The remainder step out drill holes are collared up to
2km west from the existing resource model.
On
January 21, 2020, the Company announced the first step-out diamond
drilling results. Borehole PUD 267 intercepted 10 meters of
mineralization grading 147 g/t silver, 9.8% zinc, and 2.0% lead
(539 g/t AgEq) within 35.5 meter mineralization grading 230 g/t
AgEq starting 31.5 meters downhole.
38
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
PUD
267 marks the Company's first Pulacayo drill hole of the 2020
drilling campaign and the first drilling to be conducted on the
property since 2012. A total of 268 historic Pulacayo drill holes
were completed between 2008 and 2012 by the previous operator. The
results of PUD 267 comes on the back of the success of the
Company's first drill campaign at Paca (7km north of
Pulacayo), where PND 110 intersected highest-ever grade at Paca of
12 meters of mineralization grading 1,085g/t silver, starting 16
meters downhole (see the Company's news release dated October
28, 2019). These near-surface, high-grade intersections contribute
positively to a potential district-style project economic
assessment with consideration of open-pit mining scenarios. There
are several other targets controlled by the Company within the
district that are yet to be drilled but highly promising (e.g.,
Pacamayo, Al Abra, and Pero).
PUD
267 intercepted the Tajo vein system 83 meters west from PUD 041
which intersected 20 meters of mineralization grading 15.1g/t Ag,
2.43%Zn, 0.76% Pb at a similar depth to the mineralization
encountered at PUD 267. PUD 041 (drilled in 2008) represents the
westernmost drillhole that comprises the Company's 2017
NI43-101 compliant Pulacayo resource ("Eastern Block").
These results confirm that the Tajo vein system extends westward
and occurs near-surface, with a probable thickening component for a
minimum 83-meter extension to the west of the Eastern
Block.
The
Eastern Block spans 1.4 km in strike, roughly 300 meters of
vertical section and contains 30.4 million indicated silver oz and
6.4 million inferred silver oz estimated in the independent NI
43-101 report by Mercator of October 2017 (see the Company's
news release dated November 22, 2017).
PUD
267 was planned based on a vertical projection of Pulacayo's
historic underground workings which followed the Tajo vein system.
These workings exist between 400 meters and 1,000 meters from the
surface with mined grades of 10% to 25% Zn and 300g/t to 800g/t Ag
(according to Hochschild mining records from 1914 to 1960). The
results of PUD 267 reveal strong potential for existing
mineralization from near-surface in the intervening depths to the
workings approximately 400 meters below.
On March 6
th
,
2020, the Company released the results of its first 2,598 meters of
drilling which focused on the western portion of the Pulacayo
property.
Complete
composited drill intersections of mineralization (in meters) for
this portion of the program are tabulated below:
Table 28
Hole ID
From (m)
To (m)
Interval (m)
Ag (g/t)
Zn (%)
Pb (%)
AgEq
Target
PUD267*
31.5
67
35.5
54.3
4.31
0.92
229.6
West
117
123
6.0
47.8
1.11
0.25
89.7
West
PUD268
21
23
2
20
1.34
0.77
92.6
West
PUD274
75
77
2
93.5
0.42
98.8
East
PUD274
82
83
1
83
0.09
77.4
East
Reported
widths are intercepted core lengths and not true widths, as
relationships with intercepted structures and contacts vary. Based
on core-angle measurements, true widths are estimated at
approximately 61% of reported core lengths.
Silver
equivalent is calculated as follows: Ag Eq. (g/t) = Ag (g/t)*89.2%
+ (Pb% *(US$0.94/ lb. Pb /14.583 Troy oz/lb./US$16.50 per Troy oz.
Ag)*10,000*91.9%) + (Zn% *(US$1.00/lb. Zn/14.583 Troy
oz/lb./US$16.50 per Troy oz. Ag)*10,000*82.9). This calculation
incorporates metallurgical recoveries from test work completed for
Pulacayo in 2013.
39
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Table 29
Header information for
Drillhole
Hole ID
Azimuth
Dip
Depth (m)
Easting
Northing
AMSL
PUD267
180
-45
180
739823.4
7744735
4336
PUD268
180
-45
192
739866
7744723
4366
PUD269
180
-45
210
739750
7744727
4321
PUD270
0
-45
201
739626
7744618
4284
PUD271
180
-45
156
739670
7744655
4293
PUD272
180
-45
300
739540
7744860
4329
PUD273
180
-45
201
739343
7744869
4385
PUD274
200
-65
95
741031
7744391
4237
PUD275
180
-45
161
739481
7744625
4357
PUD276
0
-45
201
739467
7744416
4267
PUD277
21
-55
72
741196
7744229
4181
PUD278
0
-45
120
739170
7744599
4317
PUD279
180
-45
130
737933
7744679
4346
PUD280
0
-45
113
739024
7744538
4344
PUD281
0
-45
180
739661
7745113
4396
PUD282
0
-45
86.4
739180
7744380
4296
Complete drill map and result cross sections can
be accessed at
www.silverelef.com/company-presentation
and
https://www.silverelef.com/projects/pulacayo-silver-lead-zinc/
.
2020 Outlook
The
Company's objectives in 2020 is to drill and expand the
Pulacayo silver resource base which open to the west and at depth,
as well as drill district-scale targets (Paca, Al Abra, Pero,
Pacamayo) and to increase investor awareness.
The
Company's goals for 2020 include:
●
Refurbish
portions of the existing mine workings
●
Expand
the Pulacayo resource footprint
●
Phase
I drill program
●
Test
surface targets adjacent to existing workings
●
Test
depth of mineralization with initial deep fan
●
Compile
a production profile for Pulacayo
●
Expand
the Paca resource footprint
●
Phase
II drill program
●
Test
extent of manto/conglomerate formation
●
Update
Pulacayo/Paca Technical Report
Ulaan Ovoo Coal, Property
On October 16, 2018, the Company announced that it
had executed a lease agreement (the "
Lease
") with an arms-length private Mongolian
company (the "
Lessee
") whereby the Lessee plans to perform
mining operations at the Company's Ulaan Ovoo coal mine and
will pay the Company USD$2.00 (the "
Production
Royalty
") for every tonne
of coal shipped from the Ulaan Ovoo site
premises.
The Lessee has
paid the Company USD$100,000 in cash, as a non-refundable advance
royalty payment and is preparing, at its own and sole expense, to
restart and operate the Ulaan Ovoo mine with its own equipment,
supplies, housing and crew. The Lessee will pay all government
taxes and royalties related to its proposed mining
operation.
40
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The Lease is valid for 3 years with an annual
advance royalty payment ("
ARP
") for the first year of $100,000 (paid),
and USD$150,000 and USD$200,000 due on the 1st and 2nd anniversary
of the Lease, respectively. The ARP can be credited towards the
USD$2.00 per tonne Production Royalty payments to be made to the
Company as the Lessee starts to sell Ulaan Ovoo coal.
The 3-year Lease can be extended upon
mutual agreement.
The
Ulaan Ovoo mine was commissioned in March 2019, however the
operation was stopped in April and May due to the late approval of
2019 environmental plan. The approval was issued in June
2019.
On
July 9, 2019, the Company announced that Ulaan Ovoo mine achieved
record monthly coal production of 37,800 tonnes in June
2019.
Chandgana Coal, Properties
For more
information about the Chandgana coal properties and power plant
project, please refer to the relevant sections of the
Company's Annual Report on Form 20-F for the year ended
December 31, 2019.
The Company has successfully converted its
Chandgana Khavtgai (Khavtgai Uul) coal exploration license to a
mining license.
For the Chandgana Tal project, the Company
intends to discuss the need to update the detailed environmental
impact assessment and mining feasibility study with the relevant
ministries and complete the requirements to maintain the
licenses.
5.
SELECTED ANNUAL FINANCIAL INFORMATION
The table below
contains selected financial data from the audited consolidated
financial statements of the Company for the three most recently
completed financial years and was prepared in accordance with
IFRS.
Selected
Annual Financial Data
Years ended December 31,
2019
2018
2017
Operating
expense
$
(3,505,562
)
$
(3,298,383
)
$
(2,381,365
)
Other
items
21,019,416
(14,886,085
)
(16,211,616
)
Net
gain/(loss)
17,513,854
(18,184,468
)
(18,592,981
)
Comprehensive
gain/(loss)
17,513,854
(18,196,628
)
(18,580,821
)
Share
Information:
Gain/(loss)
per share, basic
$
0.17
$
(0.23
)
$
(0.33
)
Gain/(loss)
per share, diluted
0.17
(0.23
)
(0.33
)
Weighted
average number of common shares outstanding, basic
diluted
102,208,111
78,445,396
55,760,700
Financial
Position:
Current
assets
3,400,142
5,463,768
4,481,471
Equipment
159,484
101,162
531,911
Mineral
properties
23,782,884
3,643,720
13,299,906
Total
assets
27,448,088
9,264,205
18,368,843
Total
liabilities
2,740,000
10,023,943
9,681,322
Dividends
$
-
$
-
$
-
41
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Year Ended December 31, 2019 compared with the same period in
2018.
The Company's
annual operating expenses increased by $207,179 from $3.3 million
for the year 2018 to $3.5 million for the year 2019.
The Company
reported a net gain of $17.5 million ($0.17 gain per Share) for the
year ended December 31, 2019, which represents a decreased loss of
$35.7 million when compared to the year 2018 ($0.23 loss per
Share). The decrease in net loss was primarily due to an impairment
reversal of 13.7 million for Pulacayo property and a write-off the
Bolivian tax liability of $8 million in 2019 compared to impairment
charges of $18.2 million in 2018.
The total assets
increased by $18.2 million from $9.3 million in the year 2018 to
$27.5 million in the year 2019. The increase was mainly due to an
impairment reversal for Pulacayo property an increase in mineral
property exploration. Current assets decreased by $2.3 million from
$5.5 million in the year 2018 to $3.2 million in the year 2019. The
decrease was due to a decrease in cash of $2.3
million.
The Company's
total liabilities decreased by $7.3 million since December 31,
2018. The decrease in total liabilities was mainly due to a
write-off the Bolivian tax liability.
Year Ended December 31, 2018 compared with the same period in
2017.
The Company's
annual operating expenses increased by $0.9 million from $2.4
million for the year 2017 to $3.3 million for the year 2018. The
increase was due to increased activities related to the acquisition
and exploration of the Gibellini Project in Nevada and equity
financings.
The Company
reported a net loss of $18.2 million ($0.23 loss per Share) for the
year ended December 31, 2018, which represents a decreased loss of
$0.4 million when compared to the year 2017 ($0.33 loss per Share).
The decrease in net loss was primarily due to a lesser amount of
impairment charges in the year 2018 ($14.5 million) compared to the
previous year ($15.1 million), offset by increase in operating
expenses and a foreign exchange loss.
The total assets
decreased by $9.1 million from $18.4 million in the year 2017 to
$9.3 million in the year 2018. The decrease was mainly due to a
write-off the Pulacayo property and its mining equipment. Current
assets increased by $1 million from $4.5 million in the year 2017
to $5.5 million in the year 2018. The increase was mainly due to
the $5.2 million net proceeds received from the bought deal
financing in Q4 2018.
The Company's
total liabilities at December 31, 2018 were $10 million compared to
$9.7 million at December 31, 2017. The increase in liabilities was
mainly due to a foreign exchange fluctuation of Canadian Dollar
against Bolivian Boliviano related to Bolivian tax
provision.
The Company's
total liabilities increased by $0.45 million from $ 9.7 million at
December 31, 2017 to $10.1 million at December 31, 2018 due to
increased Bolivian tax provision (due to fall of Canadian Dollar)
and offset by a decrease in trade accounts payable.
42
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
6.
SUMMARY OF QUARTERLY RESULTS
Table below
presents summarized selected consolidated financial information for
the eight most recently completed quarters:
2019
2019
2019
2019
Q4
Q3
Q2
Q1
Operating
expense
$
(1,175,096
)
$
(715,475
)
$
(820,893
)
$
(794,098
)
Net
gain/(loss)
12,475,952
(1,019,268
)
6,966,029
(908,859
)
Net
loss per share, basic and diluted
$
0.11
$
(0.01
)
$
0.07
$
(0.01
)
Comprehensive
gain/(loss )
12,475,952
(1,019,268
)
6,966,029
(908,859
)
Comprehensive
gain/(loss)per share, basic and diluted
$
0.11
$
(0.01
)
$
0.07
$
(0.01
)
2018
2018
2018
2018
Q4
Q3
Q2
Q1
Operating
expense
$
(1,318,475
)
$
(636,172
)
$
(780,818
)
$
(562,918
)
Net
loss
(16,044,665
)
(634,337
)
(916,247
)
(589,219
)
Net
loss per share, basic and diluted
$
(0.20
)
$
(0.01
)
$
(0.01
)
$
(0.01
)
Comprehensive
loss
(15,975,825
)
(610,797
)
(966,787
)
(643,219
)
Comprehensive
loss per share, basic and diluted
$
(0.20
)
$
(0.01
)
$
(0.01
)
$
(0.01
)
Significant
variances in the Company's reported net loss from quarter to
quarter most commonly arise from several factors: (i) level of
exploration and project evaluations expenses incurred, (ii)
decisions to write off acquisition and exploration costs when
management concludes there has been an impairment in the carrying
value of a mineral property, or to reverse impairment charges due
to indicators of impairment reversal, and (iii) the vesting of
incentive stock options, which results in the recording of amounts
for share-based compensation expense that can be quite large in
relation to other general and administrative expenses incurred in
any given quarter.
7.
RESULTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,
2019
All of the
information described below is accounted for in accordance with
IFRS. The reader is encouraged to refer to Note 6 of the
Company's Annual Financial Statements for the year ended
December 31, 2019 for the Company's IFRS accounting
policies.
The Company
reported a net gain of $17.5 million ($0.17 gain per basic Share)
for the year ended December 31, 2019, which represents a decreased
loss of $35.7 million when compared to the year 2018 ($0.23 loss
per basic Share). The decrease in net loss was primarily due to an
impairment reversal of 13.7 million for Pulacayo property and a
write-off the Bolivian tax liability of $8 million in 2019 compared
to impairment charges of $18.2 million in 2018.
For the year ended
December 31, 2019, the Company incurred operating expenses of
$3,505,562 compared to $3,298,383 for 2018 and $2,381,365 for
2017.
Operating Expenses
Year Ended December 31,
2019
2018
2017
Advertising
and promotion
$
794,182
$
471,230
$
101,512
Consulting
and management fees
251,552
255,610
751,612
General
and administrative expenses
1,286,617
1,357,724
635,736
Professional
fees
228,594
428,884
194,912
Share-based
payments
707,802
553,430
599,117
Travel
and accommodation
236,815
231,505
98,476
$
3,505,562
$
3,298,383
$
2,381,365
43
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The $207,179
increase in operating expenses when compared to the year 2018 was
the net result of changes to a number of the following
items:
●
advertising and
promotion expenses increased by $322,952 due to increased promotion
efforts in the US and Europe to raise market awareness and to raise
equity financing. The Company incurred higher marketing costs
because the Company is working with the financial community to make
its projects known. Investor relations remains a priority due to
the ongoing need to attract investment capital;
●
general and
administrative costs comprising head office costs including
salaries, directors' fees, insurance and costs related to
maintaining the Company's exchange listings and complying
with securities regulations. General and administrative expenses
decreased by $71,107 in the year 2019 compared to the year
2018;
●
professional fees
decreased by $200,290. The decrease was mainly due to reduced legal
fees;
●
share-based
payments costs are non-cash charges which reflect the estimated
value of stock options granted. The Company uses the fair value
method of accounting for stock options granted to directors,
officers, employees and consultants whereby the fair value of all
stock options granted is recorded as a charge to operations over
the period from the grant date to the vesting date of the option.
The fair value of common share options granted is estimated on the
date of grant using the Black-Scholes option pricing
model.
The increase in
share-based payments in 2019 by $154,372 compared to 2018 was
primarily related to the increase in the number of options earned
during the year 2019 compared to the year 2018; and
●
travel and
accommodation expenses slightly increased by $5,310. The Company
incurred additional travel expenses as it actively pursues the
Pulacayo and Gibellini projects moving toward production and seeks
financing.
For the year ended
December 31, 2019, the Company incurred other expenses classified
as "Other Items" amounting to a gain of $21,019,416
compared to a loss of $14,866,085 for the year 2018, and a loss of
$16,211,616 for the year 2017.
Other Items
Year Ended December 31,
2019
2018
2017
Costs
in excess of recovered coal
$
120,354
$
94,335
$
109,187
Finance
cost
-
-
8,111
Foreign
exchange (gain)/loss
443,203
412,663
188,464
Impairment/(recovery)
of mineral property
(13,708,200
)
13,994,970
14,829,267
Impairment
of prepaid expenses
51,828
26,234
57,420
Impairment
of equipment
-
425,925
159,666
Impairment
of receivables
16,304
21,004
61,202
Interest
expense
-
-
21,066
Loss/(gain)
on sale of marketable securities
-
91,890
22,810
Loss
on sale of equipment
9,795
-
1,681
Loss/(gain)
on debt settlement
(7,952,700
)
(50,000
)
752,742
Other
income
-
(130,936
)
-
$
(21,019,416
)
$
14,886,085
$
16,211,616
44
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The decrease in
loss of Other Items by $35,905,501 in the year 2019 compared to the
year 2018 was the net result of changes to a number of the
following items:
●
in the year 2019
costs in excess of recovered coal for Ulaan Ovoo increased by
$26,019 compared to the year 2018 due to increased activities at
Ulaan Ovoo coal mine in Mongolia;
●
foreign exchange
loss increased by $30,540 due to fluctuations in the value of the
Canadian dollar compared to the United States dollar, Bolivian
boliviano and Mongolian tugrik;
●
in the year 2019,
the Company recorded an impairment recovery of $13,708,200 on its
Pulacayo property and impairment charges of $51,828 and $16,304 on
prepaid expenses and receivables respectively.
In the year 2018,
the Company recorded a total of $13,994,970 impairment charges on
its Pulacayo property and Chandgana Coal property incurred
expenses, an impairment charge of $425,925 on Bolivian mining
equipment, and impairment charges of $26,234 and $21,004 on prepaid
expenses and receivables respectively.
In the year 2017,
the Company recorded an impairment charge of $14,829,267 on its
non-core Mongolian coal properties, an impairment charge of $57,420
on prepaid expenses related to the impaired Mongolian properties,
an impairment charge of $159,666 on equipment, and an impairment
charge of $61,202 on receivables.
●
in the year 2018,
the Company sold 2.7 million shares of a public company for a
realized loss of $91,890. In the year 2017, the Company sold of 2.2
million Lorraine Copper Corp. shares for a realized loss of
$22,810.
●
in the year 2019,
the Company recorded a write off Bolivian tax liabilities of
$7,952,700 due to the decision of the Supreme Court of Bolivia to
discharge the Company of the tax claim.
In the year 2018,
the Company earned $50,000 from a debt settlement with Nickel Creek
Platinum Corp. and $130,936 from advance royalty
payment.
In the year 2017,
the Company recorded a loss on debt settlements with certain of its
directors and officers of $752,742 to account for the difference in
the fair value of the Shares on the settlement date and the implied
value from the debt settled.
8.
RESULTS OF OPERATIONS FOR THE FOURTH QUARTER 2019
A summary of the
Company's consolidated operating expenses results for the
three months ended December 31, 2019, 2018 and 2017 provided
below:
Operating Expenses
Three Months Ended December 31,
2019
2018
2017
Advertising
and promotion
$
237,556
$
107,296
$
53,362
Consulting
and management fees
85,500
63,455
613,992
General
and administrative expenses
256,452
726,257
239,023
Professional
fees
46,443
204,162
143,661
Share-based
payments
475,200
135,848
213,201
Travel
and accommodation
73,945
81,457
14,268
$
1,175,096
$
1,318,475
$
1,277,507
45
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
A decrease of
operating expenses by $143,379 in the year 2019 compared to the
year was the net result of changes
●
advertising and
promotion expenses increased by $130,260 due to increased promotion
efforts in the US and Europe to raise market awareness and to raise
equity financing;
●
consulting and
management fees increased by $22,045 due to increased consulting
services used in Q4 2019 compared to Q4 2018;
●
general and
administrative expenses decreased by $469,806 due primarily to
decreased salaries and transfer agent and stock exchange filing
fees related to equity financing;
●
professional fees
decreased by $157,719 due to decreased legal services;
●
non-cash
Share-based payments increased by $339,352 due to a larger number
of outstanding stock options vesting during the Q4 2019 compared to
the Q4 2018; and
●
travel and
accommodation expenses decreased by $7,512 due to decreased during
the Q4 2019 compared to the Q4 2018.
For the three
months ended December 31, 2019, the Company's "Other
Items" amounted to a gain of $13,651,048 compared to a loss
of $14,726,190 for the same quarter in 2018. The decrease in other
items loss was mainly due to a lesser number of impairment charges
recorded in in Q4 2019 compared to Q4 2018.
Other Items
Three Months Ended December 31,
2019
2018
2017
Costs
in excess of recovered coal
$
(30,584
)
$
(33,566
)
$
4,367
Foreign
exchange (gain)/loss
731,187
372,427
822,284
Impairment/(recovery)
of mineral property
(14,429,578
)
13,953,212
14,733,067
Impairment
of prepaid expenses
51,828
26,234
57,420
Impairment
of equipment
-
425,925
159,666
Impairment
of receivables
16,304
21,004
61,202
Loss/(gain)
on sale of marketable securities
-
91,890
-
Loss
on sale of equipment
-
-
1,681
Loss/(gain)
on debt settlement
9,795
-
752,742
Other
income
-
(130,936
)
-
$
(13,651,048
)
$
14,726,190
$
16,592,429
9.
PROPOSED TRANSACTIONS
As at the date of
this MD&A there are no proposed asset or business acquisition
or disposition where the Board of Directors or senior management
believes that confirmation of the decision by the Board of
Directors is probable or with which the Board of Directors and
senior management have decided to proceed.
10.
LIQUIDITY AND CAPITAL RESOURCES
Working Capital
The Company
utilizes existing cash received from prior issuances of equity
instruments to provide liquidity to the Company and finance
exploration projects.
46
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The business of
mineral exploration involves a high degree of risk and there can be
no assurance that the Company's current operations, including
exploration programs, will result in profitable mining operations.
The recoverability of the carrying value of mineral properties, and
property and equipment interests and the Company's continued
on going existence is dependent upon the preservation of its
interest in the underlying properties, the discovery of
economically recoverable reserves, the achievement of profitable
operations, the ability of the Company to raise additional sources
of funding, and/or, alternatively, upon the Company's ability
to dispose of some or all of its interests on an advantageous
basis. Additionally, the current capital markets and general
economic conditions are significant obstacles to raising the
required funds. These conditions may cast significant doubt upon
the Company's ability to continue as a going
concern.
At December 31,
2019, the Company had cash flow of $3 million representing a
decrease of $2.3 million from $5.3 million held at December 31,
2018. The Company's working capital at December 31, 2019 was
$1 million compared to working capital of $3.8 million at December
31, 2018. The Company's working capital decrease by $2.8
million resulting from the increase in current liabilities and
decrease in current assets.
Sources and Use of Cash
Years Ended December 31,
2019
2018
2017
Cash
Used in Operating Activities
$
(2,675,513
)
$
(2,626,687
)
$
(707,231
)
Cash
Used in Investing Activities
(6,236,965
)
(3,628,762
)
(1,988,566
)
Cash
Provided by Financing Activities
6,626,085
7,458,938
6,774,757
Net
Decrease in Cash
(2,286,393
)
1,203,489
4,078,960
Cash
- beginning of period
5,304,097
4,100,608
21,648
Cash
- end of period
$
3,017,704
$
5,304,097
$
4,100,608
During the year
ended December 31, 2019, cash used in operating activities was
$2,675,513 compared to $2,626,687 cash used during the prior year.
The increased outflows in 2019 primarily related to increased
activities of the Company to develop the Pulacayo Project and the
Gibellini Project. The year over year increase in cash used by
operating activities is due to increased funds required for working
capital changes. The Company has increased its efforts in managing
operating costs in advance of cash flows from operations but will
require financing in the near term to fund operations.
During the year
ended December 31, 2019, the Company used $6,236,965 in investing
activities (2018 – $3,628,762). The Company used $113,564
(2018 - $120,416) on purchase of property and equipment, $6,123,401
(2018 - $3,609,896) on mineral property expenditures.
During the year
ended December 31, 2019, a total of $6,626,085 was provided by
financing activities including net proceeds from the
Company's share issuance of $6,237,791, an additional
$174,250 from exercise of stock options, and $250,572 from the
exercise of warrants to purchase the common shares of the Company.
The Company spent $36,528 for lease payments.
2018
During the year
ended December 31, 2018, cash used in operating activities was
$2,626,687 compared to $707,231 cash used during the prior year.
The increased outflows in 2018 primarily related to increased
activities of the Company to develop the Gibellini Project. The
year over year increase in cash used by operating activities is due
to increased funds required for working capital
changes.
During the year
ended December 31, 2018, the Company used $3,628,762 in investing
activities (2017 – $1,988,566). The Company received net
proceeds of $101,550 from selling its marketable securities, used
$120,416 (2017 - $515,609) on purchase of property and equipment,
$425,605 (2017 - $58,790) on the acquisition of the Gibellini
claims, and $3,184,294 (2017 - $1,339,417) on mineral properties
expenditures.
47
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
During the year
ended December 31, 2018, a total of $7,458,938 was provided by
financing activities including net proceeds from The
Company's share issuance of $6,096, 621, $24,150 from
exercise of stock options, and $1,338,167 from the exercise of
warrants to purchase the common shares of the Company.
During the year
ended December 31, 2017, cash used in operating activities was
$707,231 compared to $453,600 cash used in the prior year. The
increased outflows in 2017 primarily related to Gibellini project
activities.
2017
During the year
ended December 31, 2017, the Company used $1,988,566 in investing
activities (2016 – $606,372). The Company spent $34,500
investing in GIC, $58,790 on the acquisition of the Gibellini
Project, and $1,339,417 (2016 - $712,901) on mineral properties
expenditures. In 2017, the Company spent $193,440 and received
$153,190 (2016 - $59,698) from the purchase and sale of
available-for-sale investments respectively.
A total of
$6,774,757 was provided by financing activities during the year
ended December 31, 2017 (2016 – $1,048,078). The Company
fully repaid and closed out the Credit Facility by issuing 300,000
Shares to John Lee in satisfaction of $900,000 worth of
indebtedness owing by the Company to Mr. Lee's personal
holding company, Linx, under the Credit Facility and making cash
payments totaling $364,142. Funds borrowed under the Credit
Facility in the year 2017 were $163,405 (2016 - $341,116). During
the year ended December 31, 2017, the Company received net proceeds
of $6,864,809 (2016 - $952,929) from issuing units pursuant to
private placements, $50,685 (2016 - $Nil) from exercise of stock
options, and $60,000 (2016 - $Nil) from exercise of Share purchase
warrants.
Capital
Resources
As an exploration
and development company, The Company has no regular cash in-flow
from operations, and the level of operations is principally a
function of availability of capital resources. The Company's
capital resources are largely determined by the strength of the
junior resource markets and by the status of the Company's
projects in relation to these markets, and its ability to compete
for investor support of its projects. See Section
"
Risk Factors
"
set out in the Company's AR. To date, the principal sources
of funding have been equity and debt financing. Many factors
influence the Company's ability to raise funds, and there is
no assurance that the Company will be successful in obtaining
adequate financing and at favourable terms for these or other
purposes including general working capital purposes.
For the foreseeable
future, as existing properties are explored, evaluated and
developed, the Company will continue to seek capital through the
issuance of equity, strategic alliances or joint ventures, and
debt, of which the Company currently has none.
The Company expects
to continue requiring cash for operations and exploration and
evaluation activities as expenditures are incurred while no
revenues are generated. Therefore, its continuance as a going
concern is dependent upon its ability to obtain adequate financing
to fund future exploration, evaluation and development of the
Gibellini Project and the potential construction of a mine, in
order to reach profitable levels of operation. The Company has
managed its working capital by controlling its spending on its
properties and operations. Due to the ongoing planned advancement
of project milestones for the Gibellini Project and for the
Pulacayo Project, the Company will continue to incur costs
associated with exploration, evaluation and development activities,
while no revenues are being generated.
On September 6,
2019, the Company closed a non-brokered private placement and
raised gross proceeds of $2,600,000 through the issuance of
13,000,000 Shares at a price of $0.20 per Share.
On October 21, 2019
the Company closed a non-brokered private placement and raised
gross cash proceeds of $3,900,000 through the issuance of 9,750,000
Shares at a price of $0.40 per Share. Proceeds were expected to be
used for the Company's mineral project development and for
general working capital purposes.
The consolidated
financial statements have been prepared on a going concern basis
which assumes that the Company will be able to realize its assets
and discharge its liabilities in the normal course of business for
the foreseeable future. The Company's ability to continue as
a going concern is dependent upon the continued support from its
shareholders, the discovery of economically recoverable reserves,
and the ability of the Company to obtain the financing necessary to
complete development and achieve profitable operations in the
future. The outcome of these matters cannot be predicted at this
time.
48
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Contractual Commitments
The Company's
commitments related to mineral properties are disclosed in Note 14
to the Annual Financial Statements. The Company has no commitments
for capital expenditures. The Company's other commitments
include a rental commitment on Vancouver and Nevada office
premises:
2020
2021
2022
Total
Office Lease
Obligations
$
45,489
$
24,574
$
9,540
$
79,603
$
45,489
$
24,574
$
9,540
$
79,603
Capital Risk Management
The Company
considers its capital structure to consist of Share capital, stock
options and Share purchase warrants. The Company manages its
capital structure and makes adjustments to it, based on the funds
available to the Company, in order to support the exploration and
development of its projects and to pursue and support growth
opportunities. The Board of Directors does not establish
quantitative returns on capital criteria for management. The
Company is not subject to externally imposed capital requirements.
There has been no change in the Company's approach to capital
management during the year ended December 31, 2019.
Management is aware
that market conditions, driven primarily by vanadium, silver, other
metal and coal prices, may limit the Company's ability to
raise additional funds. These factors, and others, are considered
when shaping the Company's capital management
strategy.
11.
CONTINGENCIES
The Company accrues
for liabilities when they are probable and the amount payable can
be reasonably estimated.
ASC
Tax Claim
On January 2, 2015,
the Company acquired ASC Holdings Limited and ASC Bolivia LDC
(which together, hold ASC Bolivia LDC Sucursal Bolivia, which in
turn, held Apogee Silver Ltd.'s ("
Apogee
") joint venture interest in
the Pulacayo Project) and Apogee Minerals Bolivia S.A. Pursuant to
the terms of the Agreement, Prophecy agreed to assume all
liabilities of these former Apogee subsidiaries, including legal
and tax liabilities associated with the Pulacayo Project. 
During Apogee's financial year ended June 30, 2014, it
received notice from the Servicio de Impuestos Nacionales, the
national tax authority in Bolivia, that ASC Bolivia LDC Sucursal
Bolivia, now the Company's wholly-owned subsidiary, owed
approximately Bs42,000,000 in taxes, interest and penalties
relating to a historical tax liability in an amount originally
assessed at approximately $760,000 in 2004, prior to Apogee
acquiring the subsidiary in 2011.
Apogee disputed the
assessment and disclosed to the Company that it believed the notice
was improperly issued.  The Company continued to dispute the
assessment and hired local legal counsel to pursue an appeal of the
tax authority's assessment on both substantive and procedural
grounds. The Company received a positive Resolution issued by the
Bolivian Constitutional Court that among other things,
declared null and void the previous Resolution of the Bolivian
Supreme Court issued in 2011 (that imposed the tax liability on ASC
Bolivia LDC Sucursal Bolivia) and sent the matter back to the
Supreme court to consider and issue a new resolution.
On
November 18, 2019 the Company received Resolution No. 195/2018
issued by the Supreme Court of Bolivia which declared the tax claim
brought by Bolivia's General Revenue Authority against the
Company's Bolivian subsidiary as not
proven.
The
Resolution is final and binding. Hence neither Prophecy nor
Prophecy's Bolivian subsidiaries owe any outstanding back
taxes to the Bolivian General Revenue Authority.
49
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
During the year
ended December 31, 2019, the Company and legal counsel reassessed
the status of tax rulings and determined that the probability of a
re-issuance of a tax claim against the Company in connection with
the above was remote. As a result, the Company has written off the
tax liability and recorded a debt settlement gain in the amount of
$7,952,700 on its consolidated statements of operations and
comprehensive loss.
Red
Hill Tax Claim
During the year
ended December 31, 2014, the Company's wholly-owned
subsidiary, Red Hill Mongolia LLC ("
Red Hill
") was issued a letter
from the Sukhbaatar District Tax Division notifying it of the
results of the Sukhbaatar District Tax Division's VAT
inspection of Red Hill's 2009-2013 tax imposition and
payments that resulted in validating VAT credits of only
MNT235,718,533 from Red Hill's claimed VAT credit of
MNT2,654,175,507. Red Hill disagreed with the Sukhbaatar District
Tax Division's findings as the tax assessment appeared to the
Company to be unfounded.  The Company disputed the Sukhbaatar
District Tax Division's assessment and submitted a complaint
to the Capital City Tax Tribunal.  On March 24, 2015, the
Capital City Tax Tribunal resolved to refer the matter back to the
Sukhbaatar District Tax Division for revision and separation of the
action between confirmation of Red Hill's VAT credit, and the
imposition of the penalty/deduction for the tax
assessment.
Due to the
uncertainty of realizing the VAT balance, the Company has recorded
an impairment charge for the full VAT balance in the year ended
December 31, 2015.
In
June 2019, the Company received a positive
resolution issued from the
Capital City Tax Tribunal,
which is binding and final, affirmed
Red Hill's outstanding VAT credit of 1.169 billion MNT
resulted from past mining equipment purchases. The VAT credit can
be used to offset taxes and royalty payments; or be refunded in
cash by Mongolia's Ministry of Finance within 12 to 24 months
processing time. Due to the risk associated with the VAT credit,
the Company has provided a full valuation provision against the
balance.
12.
ENVIRONMENTAL REGULATIONS
The Company's
exploration activities are subject to various government regulation
in the United States, Canada, Mongolia and Bolivia. These laws and
regulations are continually changing and are generally becoming
more restrictive. The Company conducts its operations so as to
protect public health and the environment, and believes its
operations are materially in compliance with all applicable laws
and regulations. The Company has made, and expects to continue to
make in the future, filings and expenditures to comply with such
laws and regulations.
13.
RELATED PARTY DISCLOSURES
Balances and
transactions between the Company and its subsidiaries have been
eliminated on consolidation and are not disclosed here. The Company
had related party transactions with the following companies,
related by way of directors and key management
personnel:
●
Linx Partners Ltd.,
a private company controlled by John Lee, Director, CEO and
Executive Chairman of Prophecy, provides management and consulting
services to the Company.
●
MaKevCo Consulting
Inc., a private company 50% owned by Greg Hall, a director of the
Company, provides consulting services to the Company.
●
Sophir Asia Ltd., a
private company controlled by Masa Igata, a director of the
Company, provides consulting services to the Company.
50
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
A summary of
amounts paid to related parties is as follows:
Year Ended December 31,
Related parties
2019
2018
2017
Directors
and officers
$
1,685,242
$
1,265,152
$
307,425
Linx
Partners Ltd.
371,000
401,044
363,781
MaKevCo
Consulting Inc.
21,400
21,200
23,600
Sophir
Asia Ltd.
19,600
19,100
19,700
$
2,097,242
$
1,706,496
$
714,506
A summary of the
expenses by nature among the related parties is as
follows:
Year Ended December 31,
Related parties
2019
2018
2017
Consulting
and management fees
$
218,500
$
268,456
$
247,525
Directors'
fees
103,805
70,378
60,600
Mineral
properties
1,171,585
631,610
201,875
Salaries
603,352
736,052
204,506
$
2,097,242
$
1,706,496
$
714,506
Transactions with
related parties have been measured at the fair value of services
rendered. Transactions between the Company and its subsidiaries are
eliminated on consolidation; therefore, they are not disclosed as
related party transactions.
As at December 31,
2019, amounts due to related parties were $30,533 (2018 - $4,634;
2017 - $160,503).
On October 10,
2018, the Company announced the appointment of Gerald Panneton as
the Company's President and new Chief Executive Officer,
replacing John Lee, who remains as Chairman of the Board.
Pursuant to
the terms of Mr. Panneton's employment agreement with the
Company, the Company has granted to Mr. Panneton 1,000,000 with a
fair value of $0.35 per Share of bonus shares and 500,000 incentive
stock options exercisable at a price of $0.26 per Common share for
a term of five years expiring on October 10, 2023 and which vest at
12.5% per quarter for the first two years following the date of
grant.
During the years
ended December 31, 2012 and 2013, the Company shared administrative
assistance, office space, and management with Nickel Creek Platinum
Corp. ("
Nickel
")
pursuant to a Service Agreement dated January 1, 2012, consisting
of fixed monthly fees of $40,000. During the year ended December
31, 2018, the Company received $50,000 as a debt settlement in
satisfaction of an amount owing from Nickel for services rendered
to Nickel and expenses incurred on behalf of Nickel, which was
reflected on the consolidated statement of operations.
Key management
personnel are those persons having authority and responsibility for
planning, directing and controlling the activities of the Company,
including directors of the Company. The amounts due to related
parties is as follows:
Year Ended December 31,
Key Management Personnel
2019
2018
2017
Salaries
and short term benefits
$
696,751
$
775,064
$
204,506
Directors'
fees
103,805
70,378
60,600
Share-based
payments
431,037
621,339
596,232
$
1,231,593
$
1,466,781
$
861,338
51
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
14.
CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS
Critical accounting
estimates used in the preparation of the Annual Financial
Statements include determining the carrying value of mineral
properties exploration and evaluation projects and property and
equipment, assessing the impairment of long-lived assets,
determination of environmental obligation provision for closure and
reclamation, determining deferred income taxes, and the valuation
of Share-based payments. These estimates involve considerable
judgment and are, or could be, affected by significant factors that
are out of the Company's control.
Readers are
encouraged to read the significant accounting policies and
estimates as described in the Company's Annual Financial
Statements for the year ended December 31, 2019 (Refer to Notes 4,
5, and 6 to the Annual Financial Statements). The Company's
Annual Financial Statements have been prepared using the going
concern assumption.
Significant
Accounting Judgments and Estimates
The Company bases
its estimates and assumptions on current and various other factors
that it believes to be reasonable under the circumstances.
Management believes the estimates are reasonable; however, actual
results could differ from those estimates and could impact future
results of operations and cash flows. The areas which require
management to make significant judgements, estimates and
assumptions in determining carrying values include, but are not
limited to:
The significant
judgments that the Company's management has made in the
process of applying the Company's accounting policies, apart
from those involving estimation uncertainties (Annual financial
statements 5.2), that have the most significant effect on the
amounts recognized in the Annual Financial Statements include, but
are not limited to:
(a)
Functional currency
determination
The functional
currency for each of the Company's subsidiaries is the
currency of the primary economic environment and the Company
reconsiders the functional currency of its entities if there is a
change in events and conditions which determined the primary
economic environment. Management has determined the functional
currency of all entities to be the Canadian dollar.
(b)
Economic
recoverability and probability of future economic benefits of
exploration, evaluation and development costs
Management has
determined that exploratory drilling, evaluation, development and
related costs incurred which have been capitalized are economically
recoverable. Management uses several criteria in its assessments of
economic recoverability and probability of future economic benefit
including geologic and metallurgic information, history of
conversion of mineral deposits to proven and probable reserves,
scoping, prefeasibility and feasibility studies, assessable
facilities, existing permits and life of mine plans.
Management has
determined that during the year ended December 31, 2019, none of
the Company's silver and vanadium projects have reached
technical feasibility and commercial viability and therefore remain
within Mineral Properties on the Statement of Financial
Position.
(c)
Impairment
(recovery) assessment of deferred exploration
interests
The Company
considers both external and internal sources of information in
assessing whether there are any indications that mineral property
interests are impaired. External sources of information the Company
considers include changes in the market, economic and legal
environment in which the Company operates that are not within its
control and affect the recoverable amount of mineral property
interest. Internal sources of information the Company considers
include the manner in which mineral properties and plant and
equipment are being used or are expected to be used and indications
of economic performance of the assets.
52
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
(d)
Deferred Tax
Liability
Judgement is
required to determine which types of arrangements are considered to
be a tax on income in contrast to an operating cost. Judgement is
also required in determining whether deferred tax liabilities are
recognised in the statement of financial position. Deferred tax
liabilities, including those arising from un-utilised tax gains,
require management to assess the likelihood that the Company will
generate sufficient taxable losses in future periods, in order to
offset recognised deferred tax liabilities. Assumptions about the
generation of future taxable losses depend on management's
estimates of future cash flows. These estimates of future taxable
losses are based on forecast cash flows from operations (which are
impacted by production and sales volumes, commodity prices,
reserves, operating costs, closure and rehabilitation costs,
capital expenditure, and other capital management transactions) and
judgement about the application of existing tax laws in each
jurisdiction. To the extent that future cash flows and taxable
losses differ significantly from estimates, the ability of the
Company to offset the net deferred tax liabilities recorded at the
reporting date could be impacted.
(e)
Mineral
reserves
The
recoverability of the carrying value of the mineral properties is
dependent on successful development and commercial exploitation, or
alternatively, sale of the respective areas of
interest.
(f)
Depreciation
Significant
judgment is involved in the determination of useful life and
residual values for the computation of depreciation, depletion and
amortization and no assurance can be given that actual useful lives
and residual values will not differ significantly from current
assumptions.
(g)
Impairment
The carrying value of long-lived assets are
reviewed each reporting period to determine whether there is any
indication of impairment. If the carrying amount of an asset
exceeds its recoverable amount, the asset is impaired, and an
impairment loss is recognized in the consolidated statement of
operations. The assessment of fair values, including those of the
cash generating units (the smallest identifiable group of assets
that generates cash inflows that are largely independent of the
cash inflow from other assets or groups of assets)
("
CGUs
") for purposes of testing goodwill, require
the use of estimates and assumptions for recoverable production,
long-term commodity prices, discount rates, foreign exchange rates,
future capital requirements and operating performance. Changes in
any of the assumptions or estimates used in determining the fair
value of goodwill or other assets could impact the impairment
analysis.
(h)
Allowance for
doubtful accounts, and the recoverability of receivables and
prepaid expense amounts.
Significant
estimates are involved in the determination of recoverability of
receivables and no assurance can be given that actual proceeds will
not differ significantly from current estimations. Similarly,
significant estimates are involved in the determination of the
recoverability of services and/or goods related to the prepaid
expense amounts, and actual results could differ significantly from
current estimations.
(i)
Provision for
closure and reclamation
The Company
assesses its mineral properties' rehabilitation provision at
each reporting date or when new material information becomes
available. Exploration, development and mining activities are
subject to various laws and regulations governing the protection of
the environment. In general, these laws and regulations are
continually changing, and the Company has made, and intends to make
in the future, expenditures to comply with such laws and
regulations. Accounting for reclamation obligations requires
management to make estimates of the future costs that the Company
will incur to complete the reclamation work required to comply with
existing laws and regulations at each location. Actual costs
incurred may differ from those amounts estimated.
53
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Also, future
changes to environmental laws and regulations could increase the
extent of reclamation and remediation work required to be performed
by the Company. Increases in future costs could materially impact
the amounts charged to operations for reclamation and remediation.
The provision represents management's best estimate of the
present value of the future reclamation and remediation obligation.
The actual future expenditures may differ from the amounts
currently provided.
(f)
Share-based
payments
Management uses
valuation techniques in measuring the fair value of share purchase
options granted. The fair value is determined using the Black
Scholes option pricing model which requires management to make
certain estimates, judgement, and assumptions in relation to the
expected life of the share purchase options and share purchase
warrants, expected volatility, expected risk-free rate, and
expected forfeiture rate. Changes to these assumptions could have a
material impact on the Annual Financial Statements.
(f)
Contingencies
The assessment of
contingencies involves the exercise of significant judgment and
estimates of the outcome of future events. In assessing loss
contingencies related to legal proceedings that are pending against
the Company and that may result in regulatory or government actions
that may negatively impact the Company's business or
operations, the Company and its legal counsel evaluate the
perceived merits of the legal proceeding or unasserted claim or
action as well as the perceived merits of the nature and amount of
relief sought or expected to be sought, when determining the
amount, if any, to recognize as a contingent liability or when
assessing the impact on the carrying value of the Company's
assets. Contingent assets are not recognized in the Annual
Financial Statements.
(g)
Fair value
measurement
The Company
measures financial instruments at fair value at each reporting
date. The fair values of financial instruments measured at
amortized cost are disclosed in Note 20. Also, from time to time,
the fair values of non-financial assets and liabilities are
required to be determined, e.g., when the entity acquires a
business, completes an asset acquisition or where an entity
measures the recoverable amount of an asset or cash-generating unit
at fair value less costs of disposal. Fair value is the price that
would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the
measurement date.
The fair value of
an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability,
assuming that market participants act in their economic best
interest. A fair value measurement of a non-financial asset takes
into account a market participant's ability to generate
economic benefits by using the asset in its highest and best use or
by selling it to another market participant that would use the
asset in its highest and best use. The Company uses valuation
techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of
unobservable inputs. Changes in estimates and assumptions about
these inputs could affect the reported fair value.
Same
accounting policies as annual audited consolidated financial
statements
The Company
followed the same accounting policies and methods of computation in
the Annual Financial Statements for the year ended December 31,
2019 as followed in the consolidated financial statements for the
year ended December 31, 2018. The Company describes its significant
accounting policies as well and changes in accounting policies in
Notes 4 and 6 of Annual Financial Statements. No significant
changes in accounting policies have occurred other that the
implantation of a new IFS as issued by the IASB.
Basis
of consolidation
The Annual
Financial Statements include the accounts of the Company and its
controlled subsidiaries. All material intercompany balances and
transactions have been eliminated. The Company's the
significant subsidiaries at the date of these MD&A are
presented in the table below
54
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
15.
ACCOUNTING CHANGES AND RECENT ACCOUNTING
PRONOUNCEMENTS
Effective January 1, 2019,
the Company, for
the first time, has applied IFRS 16
Leases
(as issued by the IASB in
January 2016) effective January 1, 2019, using the modified
retrospective approach. The modified retrospective approach does
not require restatement of prior period financial information and
continues to be reported under IAS 17,
Leases
and IFRIC 4,
Determining Whether an Arrangement Contains a
Lease
. IFRS 16 introduces new or amended requirements with
respect to lease accounting. It introduces changes to the lessee
accounting by removing the distinction between operating and
finance leases and requiring the recognition of a right-of-use
asset and a lease liability at the lease commencement for all
leases, except for short-term leases and leases of low value
assets. In contrast to lessee accounting, the requirements for
lessor accounting have remained largely unchanged.
The Company's
leases consist of corporate office lease arrangements. The Company,
on adoption of IFRS 16, recognized lease liabilities in relation to
office leases which had previously been classified as operating
leases under the principles of IAS 17. In relation, under the
principles of the new standard these leases are measured as lease
liabilities at the present value of the remaining lease payments,
discounted using the Company's incremental borrowing rate as
at January 1, 2019. The associated right-of-use asset has been
measured at the amount equal to the lease liability on January 1,
2019. The right-of-use asset is subsequently depreciated from the
commencement date to the earlier of the end of the lease term, or
the end of the useful life of the asset (refer to Note 12 and Note
16).
Furthermore, the
right-of-use asset may be reduced due to impairment
losses.
The following table
reconciles the Company's operating lease commitments at
December 31, 2018, as previously disclosed in the Company's
Annual Financial Statements, to the lease liability recognized on
adoption of IFRS 16 at January 1, 2019:
For more details
please refer to Notes 6, 12 and 16 to the Company's Annual
Financial Statements.
16.
FINANCIAL INSTRUMENTS AND RELATED RISKS
The Board of
Directors, through the Audit Committee is responsible for
identifying the principal risks of the Company and ensuring that
risk management systems are implemented. The Company manages its
exposure to financial risks, including liquidity risk, foreign
exchange rate risk, interest rate risk, and credit risk in
accordance with its risk management framework. The Company's
Board of Directors reviews The Company's policies on an
ongoing basis.
Financial Instruments
(Note 21 to the
Annual Financial Statements)
The following table
sets forth the Company's financial assets that are measured
at fair value on a recurring basis by level within the fair value
hierarchy. The fair value hierarchy gives the highest priority to
Level 1 inputs and the lowest priority to Level 3 inputs. Table 35
sets forth The Company's financial assets measured at fair
value by level within the fair value hierarchy.
55
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
Level 1
Level 2
Level 3
Total
Financial
assets
Cash
and cash equivalents, December 31, 2019
$
3,017,704
$
-
$
-
$
3,017,704
Cash
and cash equivalents, December 31, 2018
$
5,304,097
$
-
$
-
$
5,304,097
Cash
and cash equivalents, December 31, 2017
$
4,100,608
$
-
$
-
$
4,100,608
Categories
of financial instruments
The Company
considers that the carrying amount of all its financial assets and
financial liabilities measure at amortized cost approximates their
fair value due to their short term nature. Restricted cash
equivalents approximate fair value due to the nature of the
instrument. The Company does not offset financial assets with
financial liabilities. There were no transfers between Level 1, 2
and 3 for the year ended December 31, 2019.
The Company's
financial assets and financial liabilities are categorized as
follows:
December
31,
2019
December
31,
2018
December
31,
2017
Fair
value through profit or loss
Cash
$
3,017,704
$
5,304,097
$
4,100,608
Fair
value through other comprehensive income
Marketable
securities
$
-
$
-
$
205,600
Amortized
cost
Receivables
$
246,671
$
36,399
$
34,653
Restricted
cash equivalents
$
34,500
$
34,500
$
34,500
$
3,298,875
$
5,374,996
$
4,375,361
Amortized
cost
Accounts payable
and accrued liabilities
$
2,420,392
$
1,636,786
$
1,895,983
Lease
liability
$
52,818
$
-
$
-
$
2,420,392
$
1,636,786
$
1,895,983
Related
Risks
(a)
Liquidity
risk
Liquidity risk is
the risk that an entity will be unable to meet its financial
obligations as they fall due. The Company manages liquidity risk by
preparing cash flow forecasts of upcoming cash requirements. As at
December 31, 2019, the Company had a cash balance of $3,017,704
(2018 – $5,304,097; 2017 – $4,100,608). As at
December 31, 2019 the Company had current liabilities of $2,452,677
(2018 - $1,636,786; 2017 - $1,895,983), which have
contractual maturities of 90 days or less.
The Company has a
planning and budgeting process in place by which it anticipates and
determines the funds required to support normal operation
requirements as well as the growth and development of its mineral
property interests. The Company coordinates this planning and
budgeting process with its financing activities through the capital
management process in normal circumstances.
(b)
Credit
risk
Credit risk is the
risk that one party to a financial instrument will fail to
discharge an obligation and cause the other party to incur a
financial loss. The Company is exposed to credit risk primarily
associated to cash and restricted cash equivalents and receivables,
net of allowances. The carrying amount of assets included on the
statements of financial position represents the maximum credit
exposure.
56
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
(c)
Market
risk
The significant
market risks to which the Company is exposed are interest rate
risk, foreign currency risk, and commodity and equity price risk.
The objective of market risk management is to manage and control
market risk exposures within acceptable limits, while maximizing
returns.
(i)
Interest rate
risk
Interest rate risk
is the risk that the fair value or future cash flows of a financial
instrument will fluctuate due to changes in market interest rates.
The Company's cash and restricted cash equivalents primarily
include highly liquid investments that earn interest at market
rates that are fixed to maturity. Due to the short‐ term
nature of these financial instruments, fluctuations in market rates
do not have significant impact on the fair values of the financial
instruments as of December 31, 2019. The Company manages interest
rate risk by maintaining an investment policy that focuses
primarily on preservation of capital and liquidity.
(ii)
Foreign currency
risk
The Company is
exposed to foreign currency risk to the extent that monetary assets
and liabilities held by the Company are not denominated in Canadian
dollars.
The Company has
exploration and development projects in the United States, Mongolia
and Bolivia and undertakes transactions in various foreign
currencies. The Company is therefore exposed to foreign currency
risk arising from transactions denominated in a foreign currency
and the translation of financial instruments denominated in US
dollars, Mongolian tugrik, and Bolivian boliviano into its
functional and reporting currency, the Canadian
dollar.
Based on the above,
net exposures as at December 31, 2019, with other variables
unchanged, a 10% (2018 – 10%; 2017 – 10%) strengthening
(weakening) of the Canadian dollar against the Mongolian tugrik
would impact net loss with other variables unchanged by $144,000. A
10% strengthening (weakening) of the Canadian dollar against the
Bolivian boliviano would impact net loss with other variables
unchanged by $2,000. A 10% strengthening (weakening) of the US
dollar against the Canadian dollar would impact net loss with other
variables unchanged by $60,000. The Company currently does not use
any foreign exchange contracts to hedge this currency
risk.
(iii)
Commodity and
equity risk
Commodity price
risk is defined as the potential adverse impact on earnings and
economic value due to commodity price movements and volatilities.
Commodity prices fluctuate on a daily basis and are affected by
numerous factors beyond the Company's control. The supply and
demand for these commodities, the level of interest rates, the rate
of inflation, investment decisions by large holders of commodities
including governmental reserves and stability of exchange rates can
all cause significant fluctuations in prices. Such external
economic factors are in turn influenced by changes in international
investment patterns and monetary systems and political
developments.
The Company is also
exposed to price risk with regards to equity prices. Equity price
risk is defined as the potential adverse impact on the
Company's earning due to movements in individual equity
prices or general movements in the level of the stock
market.
The Company closely
monitors commodity prices, individual equity movements and the
stock market to determine the appropriate course of action to be
taken by the Company. Fluctuations in value may be
significant.
57
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
17.
RISKS AND UNCERTAINTIES
The Company's
business is the exploration, evaluation and development of mining
properties. Thus, the Company's operations are speculative
due to the high-risk nature of its business. The following list
details existing and future material risks to the Company. The
risks described below are not listed in any particular order and
are not meant to be exhaustive. Additional risks and uncertainties
not currently known to the Company, or those that it currently
deems to be immaterial, may become material and adversely affect
the Company. The realization of any of these risks may materially
and adversely impact the Company's business, financial
condition or results of operations and/or the market price of the
Company's securities. Each of these risk factors is discussed
in more detail under "Risk Factors" in the
Company's AR for the year ended December 31, 2019, which is
available under the Company's SEDAR profile at
www.sedar.com
.
●
Global outbreaks
including coronavirus;
●
History of net
losses;
●
Capital costs,
operating costs, production and economic returns;
●
Exploration and
development risks;
●
No history of
profitable mineral production;
●
Mineral reserves /
mineral resources;
●
Environmental
risks;
●
Foreign
operations;
●
Reform of the
General Mining Law in the U.S;
●
Government
approvals and permits;
●
Property
interests;
●
Mineral claims,
mining leases, licenses and permitting;
●
Title
risks;
●
First
Nation;
●
Competition;
●
Inherent
risks;
●
Reliance on key
personnel;
●
Volatility of
mineral prices,
●
Currency
fluctuations;
●
Global and local
financial conditions;
●
Third-party
contractors;
●
Andy-bribery
legislations;
●
Uninsured
risks;
●
No dividend
payments;
●
Related party
transactions;
●
Litigation and
regulatory proceedings;
●
Cyber
security;
●
Foreign private
issuer;
●
Non-Canadian
investors;
●
Emerging growing
company;
●
Additional
risks.
18.
DISCLOSURE CONTROLS AND PROCEDURES
Disclosure controls
and procedures are designed to provide reasonable assurance that
information required to be disclosed by The Company in its annual
filings, interim filings or other reports filed or submitted by it
under securities legislation is recorded, processed, summarized and
reported within the time periods specified in the securities
legislation and include controls and procedures designed to ensure
that information required to be disclosed by the Company in its
annual filings, interim filings or other reports filed or submitted
under securities legislation is accumulated and communicated to the
Company's management, including its Chief Executive Officer
and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
58
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
The Company's
disclosure committee is comprised of the Chief Executive Officer
and senior members of management. The disclosure committee's
responsibilities include determining whether information is
material and ensuring the timely disclosure of material information
in accordance with securities laws. The Board of Directors is
responsible for reviewing the Company's disclosure policy,
procedures and controls to ensure that it addresses the
Company's principal business risks, and changes in operations
or structure, and facilitates compliance with applicable
legislative and regulatory reporting requirements.
The
Chief Executive Officer and Chief Financial Officer, after
participating with the Company's management in evaluating the
effectiveness of the Company's disclosure controls and
procedures have concluded that the Company's disclosure
controls and procedures were effective during the year ended
December 31, 2019.
Design of Internal Controls over Financial Reporting
The
Company's management, with the participation of the Chief
Executive Officer and Chief Financial Officer, is responsible for
establishing and maintaining adequate internal control over
financial reporting. 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 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, acquisition and disposition of
assets and liabilities;
●
provide reasonable
assurance that transactions are recorded as necessary to permit
preparation of the financial statements in accordance with IFRS and
that receipts and expenditures are being made only in accordance
with the authorization of management and directors of The Company;
and
●
provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of assets, and incurrence of
liabilities, that could have a material effect on the financial
statements.
The Company's management, with the
participation of the Chief Executive Officer and Chief Financial
Officer, assessed the effectiveness of the Company's internal
control over financial reporting using the criteria set forth in
the
Internal Control –
Integrated Framework
(2013)
issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this assessment, management concluded that the
Company's internal control over financial reporting was
effective during the year ended December 31,
2019.
19.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There
were no changes to the Company's internal control over
financial reporting during the year ended December 31, 2019, that
have materially affected, or are reasonably likely to materially
affect, the Company's internal control over financial
reporting.
Limitations
of controls and procedures
The
Company's management, including the Chief Executive Officer
and the Chief Financial Officer, believe that any disclosure
controls and procedures or internal controls over financial
reporting, 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, they
cannot provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been prevented
or detected. These inherent limitations include the realities that
judgements 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 unauthorized
override of the control. The design of any systems of controls also
is 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. Accordingly, because of the inherent limitations in a
cost-effective control system, misstatements due to error or fraud
may occur and not be detected.
59
SILVER ELEPHANT MINING CORP.
(
Formerly
"Prophecy Development Corp.")
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
For
the year ended December 31, 2019
(Expressed in
Canadian Dollars, except where indicated)
20.
DISCLOSURE OF OUTSTANDING SHARE DATA
As at the date of
this MD&A, the Company had a total of:
●
122,915,508
Shares outstanding with a recorded value of
$181,722,412;
●
9,442,500
stock options outstanding with a
weighted average exercise price the equivalent of $0.30. The
options are exercisable to purchase one Share at prices ranging
from the equivalent of $0.20 to $0.50 and expire between April 2020
and January 2025; and
●
26,666,597 Share purchase
warrants
outstanding with a weighted average exercise price the equivalent
of $0.44. The Share purchase warrants are exercisable to purchase
one Share at prices ranging from the equivalent of $0.40 to $0.70
and expire between May 2020 and June 2022.
21.
OFF-BALANCE SHEET ARRANGEMENTS
During the year
ended December 31, 2019, The Company was not a party to any
off-balance-sheet arrangements that have, or are reasonably likely
to have, a current or future effect on the results of operations,
financial condition, revenues or expenses, liquidity, capital
expenditures or capital resources of The Company.
60