Avidian Gold : Consolidated Financial Statements for the three and six months ending December 31, 2020 and 2019

Condensed Interim Consolidated Financial Statements

AVIDIAN GOLD CORP.

For the three and six months ended December 31, 2020 and 2019

(Expressed in US dollars)

NOTICE OF NO AUDITOR REVIEW OF CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS

The accompanying unaudited condensed interim consolidated financial statements of Avidian Gold Corp. (the "Corporation" or "Avidian") for the three and six months ended December 31, 2020 and 2019 have been prepared by Management, reviewed by the Audit Committee and approved by the Board of Directors of the Company.

In accordance with National Instrument 51-102, Continuous Disclosure Obligations of the Canadian Securities Administrators, the Company herewith discloses that the accompanying unaudited condensed interim financial statements have not been reviewed by an auditor.

February 26, 2021

"David Anderson" Chief Executive Officer

"Donna McLean" Chief Financial Officer

AVIDIAN GOLD CORP.
Table of Contents
Page
Condensed Interim Consolidated Statements of Financial Position	2
Condensed Interim Consolidated Statements of Operations and Comprehensive Loss	3
Condensed Interim Consolidated Statements of Change in Shareholders' Equity (Deficiency)	4
Condensed Interim Consolidated Statements of Cash Flows	5
Notes to the Condensed Interim Consolidated Financial Statements	6 - 25

Condensed Interim Consolidated Statements of Financial Position

(Expressed in US Dollars - Unaudited)

As at	As at
December 31,	June 30,
2020	2020
$	$
Assets
Current
Cash	1,330,300	927,739
Amounts receivable and prepaid expenses	314,169	107,056
Total current assets	1,644,469	1,034,795
Non-current assets
Equipment (Note 7)	86,082	98,612
Total assets	1,730,551	1,133,407
Liabilities
Current
Trade payables and accrued liabilities	128,121	165,650
Total current liabilities	128,121	165,650
Non-current liabilities
Convertible debenture (Note 14)	625,045	434,084
Warrant liability (Note 9)	3,098,526	175,968
Total liabilities	3,851,692	775,702
Shareholders' Equity
Share capital (Note 8(b))	14,889,447	12,340,136
Share-based payment reserve (Note 8(c))	1,274,262	1,080,303
Deficit	(18,397,752)	(13,296,856)
Equity attributable to shareholders of the Corporation	(2,234,043)	123,583
Non-controlling interest (Note 10)	112,902	234,122
Total equity	(2,121,141)	357,705
Total liabilities and shareholders' equity	1,730,551	1,133,407
DESCRIPTION OF BUSINESS AND GOING CONCERN (Note 1)
COMMITMENTS AND CONTINGENCIES (Notes 15 and 16)
SUBSEQUENT EVENTS (Note 17)
APPROVED BY THE BOARD OF DIRECTORS
Original signed by David C. Anderson, Director
Original signed by Dino Titaro, Director

See accompanying notes to the condensed interim consolidated financial statements Page 2 of 25

AVIDIAN GOLD CORP.

Condensed Interim Consolidated Statements of Operations and Comprehensive Loss

(Expressed in US Dollars - Unaudited)

For the three	For the three	For the six	For the six
months ended	months ended	months ended	months ended
December 31,	December 31,	December 31,	December 31,
2020	2019	2020	2019

$	$
Operating Expenses
Exploration and evaluation expenditures (Note 15)	478,746	319,193	2,929,134	1,477,612
General and administrative (Note 13)	177,983	154,970	346,239	295,230
Share-based compensation (Note 8(c))	124,934	76,155	210,016	133,494
Convertible debenture interest (Note 14)	19,228	16,885	38,036	33,766
Accretion (Note 14)	22,844	17,228	45,188	34,452
Net loss before other losses (gains)	823,735	584,431	3,568,613	1,974,554
Foreign exchange losses	88,246	37,424	64,361	29,898
Unrealized (gain) loss on warrant revaluation (Note 9)	(517,085)	30,836	1,751,017	60,097
Unrealized (gain) loss on conversion feature (Note 14)	(34,341)	(22,747)	72,677	7,563
Total other (gains) losses	(463,180)	45,513	1,888,055	97,558
Net loss and comprehensive loss
for the period	360,555	629,944	5,456,668	2,072,112
Net loss and comprehensive loss attributable to:
Shareholders of the Corporation	330,051	523,246	5,227,075	1,572,446
Non-controlling interest (Note 10)	30,504	106,698	229,593	499,666
Net loss and comprehensive loss
for the period	360,555	629,944	5,456,668	2,072,112
Net loss per share - basic and diluted (Note 11)	0.00	0.01	0.04	0.02
Weighted average number of shares
outstanding - basic and diluted (Note 11)	122,251,892	85,623,430	119,065,899	79,399,715
Page 3 of 25

$

See accompanying notes to the condensed interim consolidated financial statements

$

AVIDIAN GOLD CORP.

Condensed Interim Consolidated Statements of Change in Shareholders' Equity (Deficiency)

(Expressed in US Dollars - Unaudited)

Equity
Share-based	attributable to
payment	shareholders of	Total Equity
Number of shares	Share capital	reserve	Deficit	the Corporation	(Deficiency)
$	$	$	$	$
Balance June 30, 2019	64,150,961	10,264,689	778,217	(10,580,179)	462,727	55,634	518,361
Non-controlling interest on acquisition	-	-	-	688,050	688,050	58,772	746,822
Net loss and comprehensive loss for the period	-	-	-	(1,572,446)	(1,572,446)	(499,666)	(2,072,112)
Private placement, net of issue costs (Note 8(b))	28,780,768	2,063,358	17,222	-	2,080,580	-	2,080,580
Value of warrants issued under private placement (Note 9)	-	(122,150)	-	-	(122,150)	-	(122,150)
Share-based compensation (Note 8(c))	-	-	133,494	-	133,494	-	133,494
Balance December 31, 2019	92,931,729	12,205,897	928,933	(11,464,575)	1,670,255	(385,260)	1,284,995
Non-controlling interest on acquisition	-	-	-	(657,696)	(657,696)	669,112	11,416
Net loss and comprehensive loss for the period	-	-	-	(1,174,585)	(1,174,585)	(49,730)	(1,224,315)
Private placement, net of issue costs (Note 8(b))	-	9,239	-	-	9,239	-	9,239
Value of warrants issued under private placement (Note 9)	-	-	-	-	-	-	-
Shares for property acquisition (Note 15)	1,471,170	125,000	-	-	125,000	-	125,000
Share-based compensation (Note 8(c))	-	-	151,370	-	151,370	-	151,370
Balance June 30, 2020	94,402,899	12,340,136	1,080,303	(13,296,856)	123,583	234,122	357,705
Non-controlling interest on acquisition	-	-	-	126,179	126,179	108,373	234,552
Net loss and comprehensive loss for the period	-	-	-	(5,227,075)	(5,227,075)	(229,593)	(5,456,668)
Private placement, net of issue costs (Note 8(b))	25,151,515	2,731,421	-	-	2,731,421	-	2,731,421
Value of warrants issued under private placement (Note 9)	-	(1,040,426)	-	-	(1,040,426)	-	(1,040,426)
Stock options exercised (Note 8(b))	186,000	21,997	(8,075)	-	13,922	-	13,922
Broker warrants exercised (Note 9)	132,000	18,249	(7,982)	-	10,267	-	10,267
Shares for property acquisition (Note 15)	2,500,000	818,070	-	-	818,070	-	818,070
Share-based compensation (Note 8(c))	-	-	210,016	-	210,016	-	210,016
Balance December 31, 2020	122,372,414	14,889,447	1,274,262	(18,397,752)	(2,234,043)	112,902	(2,121,141)
Page 4 of 25

See accompanying notes to the condensed interim consolidated financial statements

Condensed Interim Consolidated Statements of Cash Flows

(Expressed in US Dollars - Unaudited)

For the six	For the six
months ended	months ended
December 31,	December 31,
2020	2019

$	$
Operating activities
Net loss for the period	(5,456,668)	(2,072,112)
Items not involving cash:
Amortization (Note 7)	12,530	12,528
Accretion (Note 14)	45,188	34,452
Convertible debenture accrued interest	38,036	33,766
Unrealized foreign exchange loss	166,175	60,798
Unrealized loss on warrant revaluation	1,751,017	60,097
Unrealized loss on conversion feature	72,677	7,563
Shares issued for property acquisition - Labrador West	-	692,771
Shares issued for property acquisition - Fish Creek	818,070	-
Share-based compensation	210,016	133,494
(2,342,959)	(1,036,643)
Changes in non-cash working capital
Decrease in amounts receivable and prepaids	(207,113)	(103,605)
Decrease in trade payables and accrued liabilities	(37,529)	(213,089)
Change in non-cash operating working capital	(244,642)	(316,694)
Net cash flows from operating activities	(2,587,601)	(1,353,337)
Financing activities
Proceeds from issuance of shares	2,756,040	2,172,055
Share issue costs	(24,619)	(91,475)
Proceeds from issuance of subsidiary shares	234,552	-
Exercise of broker warrants	10,267	-
Exercise of stock options	13,922	-
Net cash flows provided by financing activities	2,990,162	2,080,580
Increase in cash	402,561	727,243
Cash, beginning of period	927,739	754,186
Cash, end of period	1,330,300	1,481,429

See accompanying notes to the condensed interim consolidated financial statementsPage 5 of 25

1. DESCRIPTION OF BUSINESS AND GOING CONCERN

Avidian Gold Corp. ("Avidian" or the "Corporation") was incorporated by Certificate of Incorporation issued pursuant to the provisions of the British Columbia Business Corporations Act on September 24, 2013. On January 16, 2020 at the Annual and Special Meeting of Shareholders, the Shareholders were asked to pass the following special resolutions: a) to make application for a Certificate of Continuance under the Ontario Business Corporations Act and b) to pass a special resolution to amend the articles of the Corporation, changing the Province in which the registered office is situated from the Province of British Columbia to the Province of Ontario. Both special resolutions were passed. The registered head office of the Corporation is located at 18 King Street East, Suite #902, Toronto, Ontario, M5C 1C4.

Avidian is in the business of acquiring and exploring gold and non-precious metal projects. As of December 31, 2020, the Corporation has acquired the rights to explore four gold properties in the United States of America and has majority ownership of High Tide Resources Corp. which holds the right to explore the Labrador West property in Newfoundland, Canada.

The condensed interim consolidated financial statements of the Corporation for the three and six months ended December 31, 2020 were reviewed, approved and authorized for issue by the Board of Directors on February 26, 2021. Although the Corporation 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 operations of such properties, these procedures do not guarantee the Corporation's title. Property title may be subject to government licensing requirements or regulations, unregistered prior agreements, unregistered claims, aboriginal claims, and non-compliance with regulatory and environmental requirements. The Corporation's assets may also be subject to increases in taxes and royalties, renegotiation of contracts, and currency exchange fluctuations and restrictions.

The Corporation's property interests are at an early stage of exploration and, in common with many exploration companies, the Corporation raises financing for its exploration and appraisal activities in discrete tranches. The Corporation has incurred a loss for the six month period ended December 31, 2020 attributable to shareholders of the Corporation of $5,227,075 and has an accumulated deficit of $18,397,752. Management believes it has sufficient working capital to support planned operations for the next 12 months. Although the Corporation has been successful in raising funds to date, there can be no assurance that adequate or sufficient funding will be available in the future, or available under terms acceptable to the Corporation. In the event that the Corporation is unable to secure further financing it may not be able to complete the development of a gold, copper and other mineral projects.

These condensed interim consolidated financial statements have been prepared on a going concern basis. The going concern basis of presentation assumes that the Corporation will continue in operation for the foreseeable future and be able to realize its assets and discharge its liabilities and commitments in the normal course of business. The Corporation's ability to continue as a going concern is dependent on its ability to obtain additional sources of financing to successfully explore, evaluate and develop gold projects and ultimately, to achieve profitable operations. The success of these endeavours cannot be predicted at this time. The condensed interim consolidated financial statements do not reflect adjustments to the carrying values and classification of assets and liabilities that might be necessary should the Corporation be unable to continue as a going concern, and such adjustments may be material.

• 1. DESCRIPTION OF BUSINESS AND GOING CONCERN (continued)

  COVID-19

  In March 2020, the World Health Organization declared a global pandemic related to COVID-19. Its impact on global economies has been far-reaching and business around the world are being forced to cease or limit operations for long or indefinite periods of time. Measures taken to contain the spread of the virus, including travel bans, quarantines, social distancing, and closures of non-essential services have triggered significant disruptions to businesses worldwide, resulting in an economic slowdown.

  Global stock markets have also experienced great volatility and significant declines. Governments and central banks have responded with monetary and fiscal interventions to stabilize economic conditions. There is significant ongoing uncertainty surrounding COVID-19 and the extent and duration of the impacts that it may have on our financial position and results, exploration activities, workers, partners, consultants, suppliers and on global financial markets. Almost all of Avidian's personnel work from home and the Company continues to manage its affairs via virtual business platforms.

• 2. BASIS OF PRESENTATON

  Statement of compliance

  The condensed interim consolidated financial statements of the Corporation have been prepared in accordance with the International Accounting Standards ("IAS") 34, Interim Financial Reporting issued by the International Accounting Standard Board ("IASB"). These condensed interim consolidated financial statements have been prepared in accordance with the accounting policies described in Note 2 of the Corporation's annual consolidated financial statements as at and for the years ended June 30, 2020 and 2019 ("Annual Financial Statements"). Accordingly, these condensed interim consolidated financial statements as at and for the three and six months ended December 31, 2020 and 2019 should be read together with the Annual Financial Statements.

  Basis of consolidation

  The condensed interim consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiaries Avidian Gold Inc., Avidian Gold US Inc., Avidian Gold Alaska Inc., High Tide Resources Inc., Ferrum Exploration Corp., and its 60% owned subsidiary High Tide Resources Corp. The financial statements include all assets, liabilities, revenues, expenses, and cash flow of the Corporation and its subsidiaries after eliminating inter-entity balances and transactions.

• 3. SIGNIFICANT ACCOUNTING POLICIES

  The accounting policies adopted are consistent with those of Note 2 of the Corporation's Annual Financial Statements.

• 4. CAPITAL MANAGEMENT

  When managing capital, the Corporation's objective is to ensure the entity continues as a going concern as well as to achieve optimal returns to shareholders and benefits for other stakeholders.

• 4. CAPITAL MANAGEMENT (continued)

  Management adjusts the capital structure as necessary in order to support the acquisition, exploration and development of gold resource assets.

  The Board of Directors does not establish quantitative return on capital criteria for Management, but rather relies on the expertise of the Corporation's Management to sustain the future development of the business. The Corporation considers its capital to be equity, which comprises share capital, share-based payment reserve and deficit, which at December 31, 2020, totaled ($2,234,043) (June 30, 2020 - $123,583).

  The Corporation invests all capital not required for its immediate needs in short-term, liquid and highly rated financial instruments, such as cash and other short-term guaranteed deposits, all held with select major Canadian financial institutions.

  The Corporation is currently attempting to identify an economic gold resource and as such, the Corporation is dependent on external financing to fund its activities. In order to carry out the planned acquisitions and exploration, as well as pay for administrative costs, the Corporation will spend its existing working capital and raise additional amounts as needed.

  Management has chosen to mitigate the risk and uncertainty associated with raising additional capital in current economic conditions by:

  • a. maintaining a liquidity cushion in order to address any potential disruptions or industry downturns;

  • b. minimizing discretionary disbursements; and

  • c. exploring alternative sources of liquidity.

  In light of the above, the Corporation will continue to assess new properties if the Corporation believes there is sufficient potential and if it has adequate financial resources to do so.

  Management reviews its capital management approach on an ongoing basis and believes that this approach, given the relative size of the Corporation, is appropriate. There were no significant changes in the Corporation's approach to capital management during the six months ended

• December 31, 2020.

• 5. FINANCIAL RISK FACTORS

  The Corporation's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (specifically commodity price risk).

  Risk management is carried out by the Corporation's Management with guidance from the Audit Committee under policies approved by the Board of Directors. The Board of Directors also provides regular guidance for overall risk management.

5. FINANCIAL RISK FACTORS (continued)

Credit risk

Credit risk is the risk of loss associated with a counterparty's inability to fulfill its payment obligations. The Corporation's credit risk is attributable to cash. Cash is held with a reputable financial institution, from which Management believes the risk of loss to be remote.

Included in amounts receivable is sales tax receivable from government authorities in Canada. Amounts receivable are in good standing as of December 31, 2020. Management believes that the credit risk concentration with respect to financial instruments included in amounts receivable is minimal.

Liquidity risk

Liquidity risk is the risk that the Corporation will not have sufficient cash resources to meet its financial obligations as they become due. The Corporation's liquidity and operating results may be adversely affected if the Corporation's access to the capital market is hindered, whether as a result of a downturn in stock market conditions generally or related to matters specific to the Corporation.

The Corporation generates cash flow primarily from its financing activities. As at December 31, 2020, the Corporation had cash of $1,330,300 (June 30, 2020 - $927,739) to settle current liabilities of $128,121 (June 30, 2020 - $165,650). The Corporation regularly evaluates its cash position to ensure preservation and security of capital as well as maintenance and liquidity.

All of the Corporation's current financial liabilities as at December 31, 2020 have contractual maturities of less than 30 days and are subject to normal trade terms. The Corporation's convertible debentures are due February 25, 2022. See Note 14.

Market risk

Interest rate risk

The Corporation has cash and cash equivalent balances subject to fluctuations in the prime rate. The Corporation's current policy is to invest excess cash in money market funds traded by its banking institutions.

The Corporation periodically monitors the investments it makes and is satisfied with the credit ratings of its banks. Management believes that interest rate risk is remote as investments are short-term, and the Corporation currently does not carry interest-bearing debt at floating rates.

Foreign currency risk

The Corporation primarily incurs expenditures in US dollars and Canadian dollars. As at December 31, 2020, the Corporation holds in cash the following amounts (reported in US$ currency) in Canadian ("CDN") and US funds respectively: $1,022,354 and $307,946 (June 30, 2020 - $907,639 and $20,100) and has convertible debt with a face value of CDN$708,000 and accrued interest of CDN$169,222 at December 31, 2020 (June 30, 2020 - CDN$708,000 and CDN$120,196).

5. FINANCIAL RISK FACTORS (continued)

Commodity price risk

The Corporation is exposed to price risk with respect to gold prices. Commodity price risk is defined as the potential adverse impact on earnings and economic value due to gold price movements and volatilities. The Corporation closely monitors gold prices to determine the appropriate course of action to be taken by the Corporation.

Sensitivity analysis

As of December 31, 2020 and June 30, 2020, both the carrying and fair value amounts of the Corporation's current financial instruments are approximately equivalent due to their short-term nature.

The sensitivity analysis shown in the notes below may differ materially from actual results. Based on Management's knowledge and experience of the financial markets, the Corporation believes the following movements are reasonably possible for the period ended December 31, 2020:

• (i) As at December 31, 2020, if foreign exchange rates had decreased/increased by 1% with all other variables held constant, the loss for the period ended December 31, 2020 would have changed by $27,443 as a result of lower/higher foreign exchange gains and losses on funds held in foreign currencies and reported shareholders' equity would also not have changed by a material amount.

• (ii) Commodity price risk could adversely affect the Corporation. In particular, the Corporation's future profitability and viability of development depends upon the world market price of gold. Gold prices have fluctuated significantly in recent years. There is no assurance that, even as commercial quantities of gold may be produced in the future, a profitable market will exist for them. As of December 31, 2020, the Corporation was not a gold producer. As a result, gold price risk may affect the completion of future equity transactions such as equity offerings and the exercise of stock options and warrants. This may also affect the Corporation's liquidity and its ability to meet its ongoing obligations.

Fair value hierarchy and liquidity risk disclosure

The three levels of the fair value hierarchy are as follows:

Level 1	Unadjusted quoted prices in active markets for identical assets or liabilities;
Level 2	Inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3	Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

At December 31, 2020 and June 30, 2020, the Corporation did not hold any financial assets in the fair value hierarchy.

• 5. FINANCIAL RISK FACTORS (continued)

  At December 31, 2020 and June 30, 2020, the fair value of the Corporation's financial liabilities held at fair value, the option component of convertible debenture and warrant liability, is based on Level 3 measurements. There were no transfers in or out of Level 3 during the period ended December 31, 2020 or the year ended June 30, 2020.

  Level 3 Hierarchy

  The key assumptions used in the valuation of the conversion option component of convertible debenture and warrant liability include (but are not limited to) the value at which a recent financing was done by the Corporation and share price volatility of comparable publicly-traded companies.

  For the conversion option component of convertible debenture and warrant liability valued based on market-based valuation technique, the inputs can be judgmental (See Notes 9 and 14). A +/- 25% change in the fair value of these Level 3 liabilities as at December 31, 2020 would result in a corresponding +/- $1,140,740.

• 6. MINERAL EXPLORATION INTERESTS

  HTR Corp. held a 100% interest in the Strickland Property located in southwest Newfoundland. During the year ended June 30, 2020, management has determined it will no longer pursue an exploration program on this property and as a result has recorded a write-down of $497,813.

• 7. EQUIPMENT

  Cost Equipment

Balance, June 30, 2019 Additions

$

Balance, June 30, 2020 Additions

179,002 - 179,002 -

Balance, December 31, 2020

$

179,002

Amortization and impairment Equipment

Balance, June 30, 2019 $ 55,356

Amortization 25,034

Balance, June 30, 2020 80,390

Amortization 12,530

Balance, December 31, 2020

$

92,920

Carrying amounts

Balance, June 30, 2019 $ 98,612

Balance, December 31, 2020 $ 86,082

8.

SHARE CAPITAL

• (a) Authorized

  Unlimited number of common shares, with no par value.

• (b) Issued

  • (i) On August 16, 2019, the Corporation closed a private placement for 20,480,768 common shares offered at a price of CDN$0.10 (US$0.075) per unit for total gross proceeds of CDN$2,048,077 (US$1,541,587). Officers and directors of the Corporation subscribed for 350,000 common shares for gross proceeds of $35,000.

  • (ii) On September 19, 2019, the Corporation's subsidiary, High Tide Resources Corp., issued 9,146,696 common shares valued at CDN$0.10 (US$0.075) per share for a total value of CDN$914,670 (US$692,771) as consideration for the assumption of the rights to the option to acquire 100% of the Labrador West iron ore project. See Note 15.

  • (iii) On December 20, 2019, the Company closed a non-brokered flow through private placement to raise gross proceeds of CDN$830,000 (US$630,468). The offering consisted of the issuance of 8,300,000 units ("Unit") of the Company. Each Unit was offered at a price of CDN$0.10 (US$0.076) and consisted of one common share and one-half share purchase warrant, with each whole warrant exercisable at a price of CDN$0.15 per common share if exercised within 24 months of the closing of the offering. Officers and directors of the Company subscribed for 850,000 Units for gross proceeds of CDN$85,000.

  • (iv) In December 2019, the Corporation subscribed for 8,300,000 flow through shares of the subsidiary, High Tide Resources Corp., offered at a price of CDN$0.10 (US$0.076) per share for total gross proceeds of CDN$830,000 (US$630,468).

  • (v) In December 2019, the Corporation subscribed for 750,000 common shares of the subsidiary, High Tide Resources Corp., offered at a price of CDN$0.10 (US$0.076) per share for total gross proceeds of CDN$75,000 (US$56,970).

  • (vi) On January 15, 2020, the Corporation issued 1,471,170 shares valued at CDN$0.111 (US$0.085) for a total value of CDN$163,125 (US$125,000) pursuant to the Golden Zone property agreement. See Note 15.

  • (vii) On July 14, 2020, the Company closed a private placement to raise gross proceeds of CDN$2,000,000 (US$1,468,800). The offering consisted of the issuance of 20,000,000 units ("Unit") of the Company. Each Unit was offered at a price of CDN$0.10 (US$0.0734) and consisted of one common share and one common share purchase warrant, with each whole warrant exercisable at a price of CDN$0.14 per common share if exercised within 24 months of the closing of the offering.

  • (viii) On July 21, 2020, the Corporation issued 2,500,000 shares valued at CDN$0.44 (US$0.327) for a total value of CDN$1,100,000 (US$818,070) as consideration for a 100% interest in the Amanita NE gold property, located in Alaska. See Note 15.

  • (ix) On July 28, 2020, the Corporation issued 186,000 common shares in connection to the exercise of 186,000 stock options for proceeds of CDN$18,600 (US$13,650). The fair value of these stock options was $8,075, which was transferred from share-based payment reserve to share capital.

8.

SHARE CAPITAL

• (b) Authorized (continued)

  • (x) On August 17, 2020, the Company closed a private placement to raise gross proceeds of CDN$1,700,000 (US$1,287,240). The offering consisted of the issuance of 5,151,515 units ("Unit") of the Company. Each Unit was offered at a price of CDN$0.33 (US$0.2499) and consisted of one common share and one common share purchase warrant, with each whole warrant exercisable at a price of CDN$0.55 per common share if exercised within 24 months of the closing of the offering.

  • (xi) On December 23, 2020, the Corporation issued 132,000 common shares in connection to the exercise of 132,000 broker warrants for proceeds of CDN$13,200 (US$10,267). The fair value of these stock options was $7,982, which was transferred from share-based payment reserve to share capital.

• (c) Share-based payment reserve

  Share-based payment activity for the six month period ended December 31, 2020 and year ended June 30, 2020 is summarized as follows:

Number of stock options

Weighted average exercise price (CDN)

$

Balance, June 30, 2019	3,483,125	0.59
Granted	4,286,000	0.19
Expired	(417,976)	(0.63)
Balance, June 30, 2020	7,351,149	0.36
Granted	3,250,000	0.28
Forefeited	(100,000)	(0.20)
Exercised	(186,000)	(0.10)
Balance, December 31, 2020	10,315,149	0.34

On August 26, 2019, the Corporation granted 3,600,000 stock options to officers, directors, and consultants of the Corporation to purchase 3,600,000 common shares of the Corporation at an exercise price of CDN$0.20 (US$0.151) per share expiring on August 26, 2024. The stock options vest in equal one-third tranches on the first, second and third year anniversary date of the grant.

On December 23, 2019, the Corporation granted 186,000 stock options to consultants of the Corporation to purchase 186,000 common shares of the Corporation at an exercise price of CDN$0.10 (US$0.075) per share expiring on December 23, 2021. The stock options vested immediately. On July 28, 2020 these stock options were exercised which resulted in the issuance of 186,000 common shares.

On June 8, 2020, the Corporation granted 500,000 stock options to consultants of the Corporation to purchase 500,000 common shares of the Corporation at an exercise price of CDN$0.13 (US$0.095) per share expiring on June 8, 2023. The stock options vest in equal one-quarter tranches on the first, second, third and fourth quarter following the date of grant.

• 8. SHARE CAPITAL

  (c) Share-based payment reserve (continued)

  On September 3, 2020, the Corporation granted 3,250,000 stock options to officers, directors, and consultants of the Corporation to purchase 3,250,000 common shares of the Corporation at an exercise price of CDN$0.28 (US$0.209) per share expiring on September 3, 2025. The stock options vest in equal one-third tranches on the first, second and third year anniversary date of the grant.

  The following stock options were in existence as at December 31, 2020:

  Black-Scholes inputs

  NumberNumber

  Expiry Exercise priceGrant dateoutstanding exercisable

  date

  (CDN$)

  • 125,000 125,000 15-Aug-18 15-Aug-21

    0.60

  • 500,000 250,000

  08-Jun-20 08-Jun-23

  0.13

  2,635,000

  2,335,000 15-Aug-18 15-Aug-23

  0.60

  • 150,000 100,000 15-Nov-18 15-Nov-23

    0.60

  • 100,000 33,333

  04-Feb-19 04-Feb-24

  0.40

  3,500,000 55,149 3,250,000 10,315,149

  1,166,667 26-Aug-19

  26-Aug-24

  0.20

  55,149 19-Nov-24 - 4,065,149

  01-Dec-17 03-Sep-20 03-Sep-25

  0.30

  0.28

  Grant date fair Expected	Expected	Expected	Risk-free
  value per option volatility	life (yrs)	dividend yield	interest rate
  3	0%	2.19%
  3	0%	0.32%
  5	0%	2.19%
  5	0%	2.31%
  5	0%	2.31%
  5	0%	1.24%
  7	0%	1.78%
  5	0%	0.35%

  • 0.28 125%

  • 0.04 101%

  • 0.28 125%

  • 0.24 125%

  • 0.18 125%

  • 0.09 125%

  • 0.25 150%

  • 0.17 125%

  The weighted average remaining time to expiry for all outstanding options as of December 31, 2020 is 3.60 years (2019 - 4.24 years).

  During the period ended December 31, 2020, 1,800,000 stock options were granted to directors and officers of the Corporation (2019 - 2,250,000). The share-based compensation expense related to the options issued is $61,533 (2019 - $44,576).

• 9. WARRANT LIABILITY

  Warrants issued in connection with the completion of certain private placements are exercisable in Canadian dollars. The fair value of these non-compensatory warrants is recorded as a warrant liability at the date of issuance. These warrants are revalued at each financial position reporting date with the corresponding change recorded as gain (loss) on warrant revaluation on the consolidated statement of operations and comprehensive loss.

9.

WARRANT LIABILITY (continued)

The following table presents the reconciliation of the beginning and ending balances of the warrant liability:

Warrant liability

$

June 30, 2019	62,390
Warrant issuance	122,150
Warrant revaluation	(1,980)
Change in foreign exchange	(6,592)
June 30, 2020	175,968
Warrant issuance	1,040,426
Warrant revaluation	1,751,017
Change in foreign exchange	131,115
December 31, 2020	3,098,526

The following is a summary of warrant activity for the six month period ended December 31, 2020 and year ended June 30, 2020:

December 31, 2020	June 30, 2020
Weighted	Weighted
average	average
exercise	exercise

Number	price	Number	price
CDN$	CDN$
Balance, beginning of period	6,307,000	0.22	8,602,483	0.69
Granted in connection with
private placements	25,151,515	0.22	4,537,000	0.15
Exercised during the period	(132,000)	(0.10)	-	-
Expired during the period	-	-	(6,832,483)	(0.75)
Balance, end of period	31,326,515	0.22	6,307,000	0.22

a) In connection with the August 2019 private placement disclosed in Note 8, the Corporation issued 132,000 broker warrants. The grant date fair value of $7,982 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 125%, a risk free interest rate of 1.54%, share price of CDN$0.13 and an expected maturity of 1.5 years.

b)In connection with the December 2019 private placement disclosed in Note 8, the Corporation issued 4,015,000 warrants. The grant date fair value of $122,150 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 112%, a risk free interest rate of 1.65%, share price of CDN$0.095 and an expected maturity of 2 years. At December 31, 2020, the warrants were revalued using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility based on historical volatility of 115%, a risk free interest rate of 0.23%, share price of CDN$0.225 and an expected maturity of 0.97 years.

• 9. WARRANT LIABILITY (continued)

  c) In connection with the December 2019 private placement disclosed in Note 8, the Corporation issued 255,000 broker warrants. The grant date fair value of $9,240 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 112%, a risk free interest rate of 1.65%, share price of CDN$0.13 and an expected maturity of 2 years.

  • d) In connection with the July 2020 private placement disclosed in Note 8, the Corporation issued 20,000,000 warrants. The grant date fair value of $607,612 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 118%, a risk free interest rate of 0.24%, share price of CDN$0.25 and an expected maturity of 2 years. At December 31, 2020, the warrants were revalued using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility based on historical volatility of 120%, a risk free interest rate of 0.23%, share price of CDN$0.225 and an expected maturity of 1.53 years.

  • e) In connection with the August 2020 private placement disclosed in Note 8, the Corporation issued 5,151,515 warrants. The grant date fair value of $432,814 assigned to the warrants was estimated using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 116%, a risk free interest rate of 0.26%, share price of CDN$0.375 and an expected maturity of 2 years. At December 31, 2020, the warrants were revalued using the Black Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility based on historical volatility of 118%, a risk free interest rate of 0.23%, share price of CDN$0.225 and an expected maturity of 1.63 years.

  Summary of warrants outstanding as at December 31, 2020:

  Grant date

  Exercise fair value of

  Warrants	Classification	price	warrants	Expiry date
  #	CDN$	$
  4,150,000	Liability	0.15	122,150	December 20, 2021
  255,000	Equity	0.10	9,240	December 20, 2021
  1,770,000	Liability	0.40	161,588	February 25, 2022
  20,000,000	Liability	0.14	607,612	July 14, 2022
  5,151,515	Liability	0.55	432,814	August 17, 2022
  31,326,515	1,333,404

• 10. NON-CONTROLLING INTEREST

  The amount shown for non-controlling interest on the consolidated statements of financial position is in relation to a non-controlling interest ownership of approximately 45% (2019 - 27%) in the shares of HTR Corp.

• 10. NON-CONTROLLING INTEREST (continued)

  On September 19, 2019, HTR Corp. issued 9,146,666 common shares valued at CDN$0.10 (US$0.075) per share for a total value of CDN$914,670 (US$692,771) in consideration as consideration for the assumption of the rights to the option to acquire 100 per cent of the Labrador West iron ore project. See Note 15.

  In December 2019, HTR Corp. issued to the Corporation 8,300,000 flow-through shares and 750,000 hard dollar common shares in connection with the private placement described in Note 8.

  In January 2020, HTR Corp. issued 150,000 shares valued at CDN $0.10 (US $0.0761) for a total value of CDN$15,000 (US$11,416) pursuant to the Black Raven property agreement. See Note 15.

  In December 2020, HTR Corp. closed a flow-through private placement to raise gross proceeds of CDN$299,500 (US$234,552). The offering consisted of the issuance of 2,495,833 units ("Unit") of HTR Corp. Each Unit was offered at a price of CDN$0.12 (US$0.094) and consisted of one common share and one common share purchase warrant, with each whole warrant exercisable at a price of CDN$0.15 per common share if exercised within 24 months of the closing of the offering.

  The issuance of these shares resulted in a balance of $836,257 allocated to the non-controlling interest based on the proportion of the net assets held by the non-controlling interest. Non-controlling interests' share of HTR Corp.'s expenses are reflected in the consolidated statements of operations and are charged as a reduction to the non-controlling interest account on the consolidated statement of financial position.

  During the period ended December 31, 2020 and the year ended June 30, 2020, there were no dividends paid to the non-controlling interest by the Corporation.

• 11. BASIC AND DILUTED NET LOSS PER SHARE

  The calculation of basic and diluted earnings per share for the three month period ended December 31, 2020 was based on the loss attributable to shareholders of the Corporation of $330,051 (2019 - $523,246) and the weighted average number of common shares outstanding of 122,251,892 (2019 - 85,623,430).

  The calculation of basic and diluted earnings per share for the nine month period ended December 31, 2020 was based on the loss attributable to shareholders of the Corporation of $5,227,075 (2019 - $1,572,446) and the weighted average number of common shares outstanding of 119,065,899 (2019 - 79,399,715).

  Diluted loss per share did not include the effect of the stock options disclosed in Note 8(c), the share purchase warrants disclosed in Note 9, or the conversion option feature described in Note 14 as they are anti-dilutive for the six month periods ended December 31, 2020 and 2019.

• 12. RELATED PARTY TRANSACTIONS

  • a) The remuneration of key management personnel is comprised of

    Three months ended December 31, 2020

    Three months ended December 31, 2019

    Six months ended December 31, 2020

    Six months ended December 31, 2019

    Wages and benefits	12,189	12,436	24,257	$	24,600
    Consulting fees	43,430	23,847	84,724	60,600
    Share-based compensation	69,814	48,930	119,354	85,247

    $

    $

    $

    *Key management personnel include directors, officers and former directors/officers.

  • b) See Notes 8(b) (c) and Note 14.

  • c) Trade payables and accrued liabilities as at December 31, 2020 includes $13,745 (June 30, 2020 - $7,338) owed to officers of the Corporation for fees. Such amounts are unsecured, non-interest bearing and with no fixed terms of payment.

• 13. GENERAL AND ADMINISTRATIVE

  Three months

  Three months	Six months	Six months
  ended	ended	ended	ended
  December 31,	December 31,	December 31,	December 31,
  2020	2019	2020	2019

  Amortization (Note 7) Corporate relations Occupancy costs

  $

  • 6,269 $

  • 6,264 $

  12,530 $ 23,233

  45,507

  43,210

  107,561 127,509

  900

  900

  1,800 2,700

  Office supplies, bank charges and telephone Professional fees and transfer agent

  19,595

  12,759

  33,666 24,715

  85,880

  37,670

  152,782 177,424

  Travel and promotion

  7,643

  27,293

  13,643 58,791

  Wages and benefits

  12,189

  12,164

  24,257 69,126

  $

  177,983

  $

  140,260

  $

  346,239

  $

  483,498

• 14. CONVERTIBLE DEBENTURE

  On February 26, 2019, the Corporation closed an unsecured convertible debenture financing ("2019 Debenture") for CDN$708,000 (US$529,796) with an interest rate of 8% per annum payable in cash or 12% per annum payable in shares at maturity. The unsecured convertible debentures have a maturity date of February 25, 2022 and the principal amount and all accrued interest of the convertible debentures are convertible into common shares at CDN$0.40 (US$0.299) per share prior to February 25, 2022 at the option of the holder. A total of CDN$270,000 of the debentures were issued to directors and officers of the Corporation.

  Under IFRS, when the currency of the conversion price of the conversion option is different than the functional currency of the legal entity in which they were issued, the conversion option component is accounted for as a derivative liability.

  The Corporation allocated the net proceeds to liability and derivative liability components based on the fair value of the conversion feature (which is an embedded derivative liability requiring separation) and the convertible debentures using the effective interest rate method.

14. CONVERTIBLE DEBENTURE (continued)

The effective interest rate of the 2019 Debenture is 40.80% (this is determined by establishing the rate that is required to discount the contractual cash flows back to the carrying amount, as adjusted for transaction costs).

The fair value of the derivative liability component for the 2019 Debenture was determined to be $161,588 and the fair value of the warrants was determined to be $161,588 (see Note 9) with a residual amount of $206,620 allocated to the liability on the date of issuance. The fair value of the conversion option component of the debenture at issuance was estimated using the Black-Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 115%, risk free interest rate of 1.76% and an expected life of 3 years.

The discount on the convertible debentures is amortized using the effective interest method over the term of the debenture being a period of three years. The Corporation accretes the carrying value of the convertible debentures each month by recognizing an accretion expense in the condensed interim statement of operations and comprehensive loss and a credit to convertible note. For the six month period ended December 31, 2020, $45,188 (2019 - $34,452) of finance expense from the debt discount was recorded by the Corporation.

The fair value of the conversion option component of the CDN$708,000 2019 Debenture outstanding as at December 31, 2020 was estimated as $120,718 (June 30, 2020 - $42,541) using the Black-Scholes option pricing model with the following assumptions: expected dividend yield of 0%, expected volatility of 115% based on the historical volatility of comparable entities, risk free interest rate of 0.23%, share price of CDN$0.225, and an expected life of 1.15 years.

The following table presents the reconciliation of the beginning and ending balances of the components of the convertible debt:

Liability	Derivative liability	Total
$	$	$

June 30, 2019	263,415	52,081	315,496
Accrued interest	68,070	-	68,070
Accretion of liability	72,674	-	72,674
Revaluation of conversion option	-	(7,592)	(7,592)
Change in foreign exchange	(12,616)	(1,948)	(14,564)
June 30, 2020	391,543	42,541	434,084
Accrued interest	38,036	-	38,036
Accretion of liability	45,188	-	45,188
Revaluation of conversion option	-	72,677	72,677
Change in foreign exchange	29,560	5,500	35,060
December 31, 2020	504,327	120,718	625,045

At December 31, 2020, the face value of the outstanding convertible debenture totals CDN$708,000.

15. EXPLORATION AND EVALUATION EXPENDITURES

Golden Zone

On April 28, 2016, the Corporation entered a preliminary agreement with Chulitna Mining Company LLC ("CMC"), Mines Trust Company Inc. ("MTC"), and Alix Resources Corp. ("AIX") to purchase an aggregate interest of 70.6% interest in the Golden Zone property, Alaska. Upon signing this agreement, the Corporation paid $25,000 to CMC for an exclusive 90-day due diligence period. In addition, the Corporation paid CDN$10,000 to AIX and settled a debt of CDN$200,000 (US$152,462) owed by CMC to AIX through the issuance of 460,829 shares at a deemed price of CDN$0.43 (US$0.33) per share upon closing of the definitive agreement for the interest in the Golden Zone property.

The parties have agreed to the following financial terms for the final agreement, which was agreed to on November 21, 2016:

CMC MTC

cash	stock	cash	stock
upon signing an agreement in 2016	$ 150,000	(paid)	$ 150,000	(paid)	$ 25,000 (paid)	$ 100,000	(paid)
January 15, 2017	50,000	(paid)	50,000	(paid)	-	25,000	(paid)
January 15, 2018	50,000	(paid)	50,000	(paid)	-	25,000	(paid)
January 15, 2019	100,000	(paid)	100,000	(paid)	-	25,000	(paid)
January 15, 2020	100,000	(paid)	100,000	(paid)	-	25,000	(paid)
January 15, 2021	100,000	(paid)	100,000	(paid)	-	25,000	(paid)
January 15, 2022	150,000	150,000	-	25,000
January 15, 2023	150,000	150,000	-	25,000
Total	$ 850,000	$ 850,000	$ 25,000	$ 275,000

The January 15, 2020 payments resulted in the issuance of 1,471,170 common shares. The January 15, 2021 payments resulted in the issuance of 723,011 common shares.

In addition to the above-noted cash and shares commitments, the Corporation was required to make work expenditures of $2,000,000, over a five-year period, which was met in January 2018.

Annual payments will cease after the sooner of January 15, 2023 payments or upon the beginning of annual production of 10,000 ounces or more of gold annually from the property when a net smelter royalty ("NSR") will become payable. Cash payments to CMC in the years 2019 and following will be considered advance royalty payments and will be deducted from up to 50% of the NSRs payable to CMC upon achieving production from GZ. Those NSR royalties will be as follows: CMC 2.0%; MTC 1.0%. The Corporation can surrender its interest in the property by notifying the owner at any time, and there will be no further payment obligations.

The Corporation shall have the option exercisable at any time to purchase one-half (1/2) of the NSR payable to CMC representing 1.0% of the NSR for the purchase price of $1,000,000 and 40% of the NSR payable to MTC representing 0.4% of the NSR for the purchase price of $400,000.

15. EXPLORATION AND EVALUATION EXPENDITURES (continued)

Amanita

On October 31, 2016, the Corporation signed a definitive agreement for a 15-year lease to purchase option pursuant to which the Corporation can acquire a 100% interest in the Amanita claim block subject to a 3% NSR for cash consideration of $3,000,000. The Amanita claim block is comprised of 88 lode claims located within the Fairbanks Mining District approximately 25 kilometres northeast of Fairbanks, Alaska.

The Corporation paid $5,000 at the time of signing a letter of intent and a further $20,000 on the signing of the definitive property agreement. The Corporation is required to make minimum payments as follows, which are credited against the $3,000,000 purchase price.

• (i) First anniversary of agreement date: $15,000 (paid)

• (ii) Second anniversary of agreement date: $25,000 (paid)

• (iii) Third anniversary of agreement date: $30,000 (paid)

• (iv) Every subsequent anniversary: payments increase by $10,000 annually (paid $40,000 in August 2019 and $50,000 in July 2020)

The Corporation may acquire the 3% NSR royalty for an additional $3,000,000.

Amanita NE

On July 21, 2020, the Corporation acquired a 100% interest in the Amanita NE gold property, located in Alaska. The Corporation issued 2,500,000 common shares as consideration for the acquisition. The vendors were granted a 1% NSR on the Amanita NE property and a 0.2% NSR royalty on the Amanita property.

The vendors will also be entitled to receive one-half of any additional royalty granted to a third party in the event of the subsequent disposition by the Corporation of the Amanita NE property, and to receive 25% of any net profits received from such sale to third party after a deduction of an amount equal to two times the exploration costs expended by the Corporation on the Amanita NE property and reasonable transactional expenses incurred in connection with sale to the third party.

Jungo (Formerly known as Shawnee Creek)

On January 8, 2013, Dutch Gold Resources Inc. ("DGRI"), DGRI Jungo Development Corporation and the Corporation entered into an agreement pursuant to which DGRI and DGRI Jungo Development Corporation agreed to transfer to the Corporation all of the right, title and interest in and to the Red Dog Claims located in Nevada, in exchange for a 2% NSR and the obligation of the Corporation to pay annual advance minimum royalty payments to DGRI Jungo Development Corporation in the amount of $20,000 beginning on August 25, 2015. The Corporation also holds a 100% interest in Red Dog Claims 101-160 that is not subject to an NSR.

15. EXPLORATION AND EVALUATION EXPENDITURES (continued)

Dome Hill

The Corporation owns claims located in Mono County, California and Mineral County, Nevada (the "Nevoro Claims") outright and free and clear of any claims, encumbrances or liens. The Corporation has no royalty or minimum payment obligations in respect of the Nevoro Claims.

On August 1, 2016, the Corporation entered into a lease agreement with Chonna DeLaney on the Jump Up Joe patented claim (MS 160651) in Mono County, California. The lease is for an initial period of ten years with options for ten, one-year extensions as long as the Corporation is conducting exploration or mining on the property. Annual lease payments are $1,000, and there is a two percent (2%) gross proceeds royalty from all production from the property. One half of the royalty can be purchased at any time for $250,000. The Corporation did not renew the lease on August 1, 2019.

On August 1, 2016, the Corporation entered into a Lease with Option to Purchase Agreement with the Brook Family Trust on the Hermene patented claim (MS285868) in Mono County, California.

The lease is for an initial period of ten years with options for ten, one-year extensions as long as the Corporation is conducting exploration or mining on the property. Annual lease payments are $1,000, and the claim can be purchased for $75,000. There is no residual royalty. The Corporation did not renew the lease on August 1, 2019.

Black Raven

On November 26, 2018, the Corporation's majority controlled subsidiary, High Tide Resources Corp. ("High Tide"), entered into an option to earn a 100-per-cent interest in the Black Raven property over three years via the issuance of CDN$275,000 in shares and the completion of at least CDN$70,000 of exploration work. The vendor retains a 2-per-cent net smelter return, of which 1.75 per cent can be purchased by High Tide for CDN$2,000,000.

The Corporation was required to make minimum payments as follows:

• (i) Upon signing of agreement date: CDN$10,000 worth of High Tide shares (shares issued)

• (ii) First anniversary of agreement date: CDN$15,000 worth of High Tide shares (shares issued)

• (iii) Second anniversary of agreement date: CDN$250,000 worth of High Tide shares

In November 2020, the Corporation decided it would not proceed with the option agreement.

15. EXPLORATION AND EVALUATION EXPENDITURES (continued)

Labrador West

On August 28, 2019, HTR Corp. agreed to terms with Altius Resources Inc. ("Altius"), a wholly owned subsidiary of Altius Minerals Corp., to acquire 100% of the Labrador West iron ore project, located in the Labrador Trough.

Altius has granted to HTR Corp. an exclusive option to purchase the 100% undivided interest in and to the project upon: (i) HTR Corp. incurring exploration expenditures on the project of at least CDN$2,000,000 by December 31, 2021; (ii) the issuance of a number of common shares such that Altius will own 19.9% of the issued and outstanding common shares of HTR Corp. immediately following cumulative equity financings of no less than CDN$5,000,000; and (iii) HTR Corp. becoming a publicly-listed company in Canada within 24 months from the execution date.

Upon HTR Corp. acquiring a 100% interest in the project, the public company shall grant to Altius a 2.75% gross sales royalty (GSR) on all iron ore produced, removed and recovered from the project.

Additionally, HTR Corp. has issued 9,146,666 common shares to arm's-length parties as consideration for the assumption of the rights to the option. The fair value of these consideration shares was estimated to be CDN$0.10 based on price of the shares issued in the most recent private placement closed by HTR Corp.

15. EXPLORATION AND EVALUATION EXPENDITURES (continued)

The following table summarizes exploration and evaluation expenditures for each of the Corporation's respective properties:

Golden Zone

Acquisition and holding costs Evaluation expenditures

$

Six Month	Six Month
Period ended	Period ended
December 31,	December 31,
2020	2019

62,688 $ 40,130 191,272 234,533

$

253,960

$ 274,663

Amanita

Acquisition and holding costs Evaluation expenditures

$

68,086

$ 58,150

1,153,519 168,792

$

1,221,605

$ 226,942

Amanita NE

Acquisition and holding costs Evaluation expenditures

$

• 835,600 $ 34,489

- -

$

870,089

$

-

Jungo (Formerly known as Shawnee Creek)

Acquisition and holding costs

$

Evaluation expenditures

• 52,484 $ 2,984

41,964 -

$

55,468

$

41,964

Dome Hill

Acquisition and holding costs

$ $

- -

$ $

1,285 1,285

Labrador West

Acquisition and holding costs Evaluation expenditures

$

(2,695)

$ 697,737

530,707 171,918

$

528,012

$ 869,655

Black Raven

Acquisition and holding costs Evaluation expenditures

$

- -

$

- 63,103

$

-

$

63,103

TOTAL EXPLORATION AND

EVALUATION EXPENDITURES

$

2,929,134

$

1,477,612

• 16. CONTINGENCIES

  Environmental contingencies

  The Corporation's exploration activities are subject to various federal, provincial, state and international laws and regulations governing the protection of the environment. These laws and regulations are continually changing and generally becoming more restrictive. The Corporation 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.

  Flow-through commitment

  The Corporation is obligated to spend CDN$830,000 (US$609,054) by December 31, 2021 for the issuance of flow-through shares by HTR Corp. As at December 31, 2020, the Corporation had spent CDN$778,435 (US$611,382) and is obligated to spend an additional CDN$51,565 (US$40,499). The flow-through agreements require the Corporation to renounce certain tax deductions for Canadian exploration expenditures incurred on the Corporation's mineral properties to flow-through participants. The Corporation has indemnified the subscribers for certain tax related amounts that become payable by the subscribers should the Corporation not meeting its expenditure commitments.

• 17. SUBSEQUENT EVENTS

  a) In January 2021, the Corporation issued 723,011 common shares as consideration for the annual required payment on the Golden Zone property. See Note 15.

b)The Corporation's majority-controlled private subsidiary, High Tide Resources Corp. ("High Tide"), has entered into a purchase agreement with Globex Mining Enterprises Inc. ("Globex") to purchase 100 per cent of the Lac Pegma copper-nickel-cobalt sulphide deposit located approximately 50 kilometres south of Fermont, Que.

The terms of the purchase agreement are as follows: High Tide will pay Globex $10,000 in cash and issue 650,000 shares of High Tide at the time of the High Tide's initial public offering/liquidity event expected before Sept. 30, 2021, at the time of the company going public. In addition, Globex will retain a 2% gross metal royalty with a 1% buyback option for CDN$1,500,000 exercisable at any time at the discretion of the company.