MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED JUNE 30, 2021

  • INTRODUCTION

The following Management's Discussion and Analysis ("MD&A") is a review by management ("Management") of the operations, results, and financial position of Avidian Gold Corp. ("Avidian" or the "Company") for the year ended June 30, 2021 (the "Reporting Period"). This MD&A is prepared as of October 28, 2021, unless otherwise indicated, and should be read in conjunction with the Company's audited financial statements and related notes for the year ended June 30, 2021 ("Reporting Period") and ("Annual Financial Statements"), which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). All figures are presented in United States dollars ("$") unless otherwise indicated. Additional information relevant to the activities of the Company has been filed electronically through the System for Electronic Document Analysis and Retrieval ("SEDAR") - http://www.sedar.comand are also available on the Company's website http://www.avidiangold.com.

  • CAUTIONARY NOTE

FORWARD-LOOKING STATEMENTS

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans", "intends", "anticipates", "should", "estimates", "expects", "believes", "indicates", "suggests" and similar expressions.

This MD&A contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions, and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.

Readers are cautioned not to place undue reliance on forward-looking these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, labour disputes, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; failure of equipment or processes to operate as anticipated; and political, regulatory, environmental and other risks of the mining industry.

Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

1

For a description of material factors that could cause the Company's actual results to differ materially from the forward-looking statements in this MD&A, please see "Risks and Uncertainties" in Section 4.15.

  • HIGHLIGHTS EXPLORATION
  • At Amanita property, Alaska:

During the Reporting Period the following work was completed.

    • Completed a high-resolution drone magnetic survey (443.6 line km) over the entire property at 50 metre ("m") line spacing with selected areas flown at a 25 m line spacing;
    • Completed a helicopter-borne LiDAR survey over the entire property;
    • Completed nine HQ-diameter oriented core holes for a total of 1,945 m;
    • Gold mineralization was encountered in all holes with highlights as follows:
    • 22.72 m of 3.11 g/t Au (includes 12.87 m of 6.23 g/t Au) in Hole AM20-02 (this intersection occurs approximately 60 m below Trench D-West, which returned 27.0 m of 4.22 g/t Au);
    • 24.21 m of 1.30 g/t Au in hole AM20-03, approximately 60 m below surface, that includes a higher grade intersection of 5.77 m of 2.64 g/t Au, and,
    • 2.93 m of 4.26 g/t Au in Hole AM-20-08 approximately 10 m below surface, including 1.50 m of 8.07 g/t Au.
    • Drill hole and surface trench structural analysis was completed detailing the structural controls to the gold mineralization and outlined follow up drill targets.
  • At Golden Zone property, Alaska:

During the Reporting Period in 2021 the following work was completed.

  • A helicopter LiDAR and Orthophoto survey was flown over the entire property.
  • A 588.7 line km Drone-Mag magnetometer survey was flown over the northern portion of the property covering the Breccia Pipe Deposit area.
  • Staked an additional 1,975 hectares (4,880 acres) of claims adjoining the southwestern portion of the property along the strike extension of the newly discovered MJ mineral occurrence (grab samples of 5.17 g/t Au and 4.2 g/t Au plus 2.77% Cu) extending the mineralized trend to 19 kilometres in strike length and overall property size to 125.3 sq km. Three mineral occurrences are located on the newly staked area known as Silver Kitty, Ready Cash and Canyon Creek.
  • Immediately west of the Silver Kitty occurrence, described as a chalcopyrite-bearing and sphalerite-bearing skarn adjacent to a porphyritic stock, a grab sample returned 12.5 g/t Au. This sample is located approximately 500 m southwest and on trend with the MJ discovery.
  • At the Ready Cash occurrence, a grab sample returned 0.4 g/t Au, 17.7 g/t Ag and 4.7% Cu.
    It should be noted that, due to their selective nature, assay results from grab samples noted may not be representative of the overall grade and extent of mineralization on the subject areas. All drill core assays and trench results noted above are presented in core/sample lengths as at this time there is insufficient data with respect to the orientation of the mineralized intersections to calculate true widths.

Highlights of the exploration activities carried out on the property from July to September 2021 are as follows:

  • 27 Reverse Circulation ("RC") drill holes were completed on the property for 3,288 m;
  • Of the 2021 RC holes completed, 17 were drilled on the Mayflower Extension Zone ("MEZ"), located adjacent to the Breccia Pipe Deposit, and established that the MEZ has been defined along a 600 m strike length and remains open at depth and to the northeast;
  • 2,275 drill hole samples were collected and shipped to ALS Global for analysis, assays are pending
  • A 1,200 line km drone magnetic survey was completed on the property, with interpretative results pending;

2

    • Reconnaissance mapping and sampling was carried out in the south western portion of the property following up on the previous discoveries made at the JJ-J4 and MJ, that cover a strike length of approximately 4.5 km (see press release dated October 21, 2021); and
    • 70 surface rock samples were collected during the above program with assays pending.
  • At Amanita NE property, Alaska ("Amanita NE")
    • In July 2020, the Company completed the acquisition of the Amanita NE property located approximately 12 km NE of the Amanita property;
    • In August 2020, a drone LiDAR and Orthophoto survey over the entire property was completed; and
    • 212.9 line km Drone-Mag airborne magnetometer geophysical survey was flown over the entire property.

CORPORATE/FINANCE

  • Purchased the 1,032 acre Amanita NE property, Alaska located approximately 12 km NE of the Amanita property from Keltic Enterprises Inc ("Keltic"). On July 21, 2020, the Company purchased a 100% interest in the property in exchange for the issuance of 2.5 million common shares of Avidian Gold Corp., the granting of an unencumbered 1% net smelter royalty ("NSR") on the property and a 0.2% NSR on the Amanita property. Keltic will also be entitled to receive one half of any additional royalty granted to a third party in the event of subsequent disposition by the Company of the Amanita NE property and to receive 25% of any net profits received from such sale to a third party after a deduction of an amount equal to two times the exploration costs expended by the Company on the Amanita NE property and reasonable transactional expenses incurred in connection with the sale to a third party.
  • Completed a CDN$2,000,000 (US$1,468,800) non-brokered private placement in July 2020.
  • Completed a CDN$1,700,000 (US$1,287,240) non-brokered private placement in August 2020.
  • Avidian commenced trading on the OTCQB Venture marketplace ("OTCQB") under the ticker symbol "AVGDF" on October 28, 2020. Listing on the OTCQB has increased exposure in the US and made trading in Avidian stock much more accessible to U.S. investors.
  • On April 7, 2021 the Company announced the appointment of two new directors, Mr. Stephen Altmann and Mr. Rick Winters. Mr. Altmann is currently the Managing Director at Morrison Park Advisors, an investment banking advisory firm in Toronto, Canada where he provides strategic advice and financial analysis to mining companies globally in their evaluation and implementation of strategic transactions. Mr. Winters is the Principal of RAWsources LLC, a mineral industry management consultancy. Mr. Douglas Kirwin stepped down as a director to allow for the appointment of Mr. Stephen Altmann, but will remain as a technical advisor to the Company. In addition, Mr. David Anderson resigned as the CEO of the Company, but remains as the Chairman and director. Mr. Steve Roebuck, President, was appointed as the President and CEO of the Company. Mr. Dino Titaro, director, was appointed Vice-Chairman.
  • Completed a CDN$4,414,166 (US$3,650,074) non-brokered private placement in June 2021.
  • Completed a CDN$2,187,512 (US$1,808,853) non-brokeredflow-through private placement in June 2021.
  • Appointed Mr. John Schaff as Vice President Exploration. Mr. Schaff joined Avidian from Coeur Mining where he was Exploration Manager for the past four (4) years. During his tenure at Coeur, he played an integral part in the recent discovery of the C-Horst deposit, located in the highly active Bare Mountain Mining District near Beatty, Nevada.

3

  • DISCUSSION AND ANALYSIS

4.1 BACKGROUND

The Company

Avidian was incorporated by Certificate of Incorporation issued pursuant to the provisions of the British Columbia Business Corporations Act on September 24, 2013. The registered head office of the Company is located at 18 King Street East, Suite #902, Toronto, Ontario, M5C 1C4.

Avidian is in the business of acquiring and exploring gold projects. At present date, the Company has acquired the rights to explore four gold properties in the United States of America and has majority ownership of High Tide Resources Corp. ("High Tide") which holds the right to explore two properties in Eastern Canada.

HIGH TIDE RESOURCES CORP. ("High Tide")

Over the course of late 2019 and early 2020 High Tide applied for and was granted all exploration permits from the Government of Newfoundland & Labrador and commenced detailed planning for a diamond drill program at Labrador West. The compilation work and data review of the widely spaced historical drilling identified a large area of iron intercepts exceeding 200 metres in thickness that would form the target area of a Phase One 1,000 m drill program. All support contracts - drilling, accommodation, geological and helicopter - were in place by February with the idea of starting the program in mid-March. By early March the COVID-19 pandemic had begun to spread to North America and by mid-March all non-essential travel and work in Newfoundland & Labrador was halted; consequently, the Phase One drill program was paused at that time. The drill program re-commenced in August using local consultants with 4 core holes completed for 999 m. A total of 564 samples were collected for assay and as of the date of this MD&A all assay results have been received and significant results therein include: 314.7 m of 29.6% total iron, 321.5 m of 26.8% total iron, 57.2 m of 31% total iron and 60.0 m of 33.8% total iron. A NI 43-101 report was completed on December 2, 2020 and can be viewed on SEDAR.

On January 8, 2021, Hide Tide announced it had entered into a purchase Agreement with Globex Mining Enterprises Inc. ("Globex" GMX-TSX,GLBXF-OTCQX International, G1MN-Frankfurt) to purchase 100% of the Lac Pegma Copper-Nickel-Cobalt sulphide deposit located approximately 50 kilometres south of Fermont, Quebec.

The terms of the purchase agreement are as follows; the Company paid Globex $10,000 in cash and will issue 650,000 shares of High Tide at the time of the Company's IPO/Liquidity event. In addition, Globex will retain a 2% GMR with a 1% buy-back option for $1.5M CAD exercisable at any time at the discretion of the Company.

On February 12, 2021, High Tide announced the appointment of Todd Burlingame as Vice President Corporate Development. Mr. Burlingame is a resource development professional and geologist with over 30 years of greenfield and brownfield mineral exploration and development experience across northern Canada.

On April 12, 2021, High Tide announced the appointment of a new Board of Directors. New Board members include independent Director Dr. Joseph Poveromo, a global authority in iron ore and steel making, Mr. Serge Pelletier a mining engineer with experience in small to large scale mining operations with BHP Billiton and, Ms. Carol Seymour, a senior geologist with Altius Resources Inc. with extensive experience in the Labrador Trough. Further Board appointments included Mr. Steve Roebuck, currently serving as President & CEO of Avidian, and Mr. Stephen Altmann who is serving as a director and as Chairman of High Tide.

On May 17, 2021, High Tide announced that it had commenced a Heliborne High-ResolutionMagnetic and Time- Domain Electromagnetic Survey at the Lac Pegma Property.

In October 2021, High Tide initiated the process of becoming a reporting issuer with the intention to list its common shares on a recognized Canadian stock exchange (the "Listing Exchange"). In connection with the Listing (as defined hereinafter), High Tide issued 7,332,063 subscription receipts (each a "Subscription Receipt") in two tranches at a price of CDN$0.15 per Subscription Receipt (the "Offering"), with 3,371,732 Subscription Receipts issued on September 14th, 2021 and 3,960,331 Subscription Receipts issued on September 16th, 2021. Each Subscription Receipt is convertible into one unit of High Tide (each, a "Subscription Receipt Unit"), with each Subscription Receipt Unit comprised of one common share and one half of one common share purchase warrant (each whole, a "Subscription Receipt Warrant") with each Subscription Receipt Warrant entitling the holder to

4

purchase one common share at a price of CDN$0.20 for a period of 36 months from the Exchange Date (as defined hereinafter).

Persons who acted as finders to the Offering will be issued an aggregate of 67,584 broker warrants (each, a "Broker Warrant") with each Broker Warrant entitling the holder to purchase one Subscription Receipt Unit at a price of CDN$0.15 for a period of thirty-six (36) months from the closing date of the Offering.

The subscription funds from the Offering (the "Escrowed Funds") will be held in escrow by the subscription receipt and escrow agent (the "Subscription Receipt and Escrow Agent") until the satisfaction of the following conditions:

  1. the receipt of written confirmation from the Listing Exchange that all conditions precedent to High tide listing its common shares on the Listing Exchange have been satisfied (the "Listing"), and (ii) the Listing to occur within six
    (6) months of the closing date of the Offering (the "Escrow Release Conditions").

At the time the Escrow Release Conditions are satisfied, the Corporation will forthwith delivery a certificate (the "Release Certificate") executed by High Tide to the Subscription Receipt and Escrow Agent confirming that the Escrow Release Conditions have been met upon which the Subscription Receipts shall be deemed to be automatically exchanged (the "Exchange Date"), for no additional consideration and without further action on the part of the holders of the Subscription Receipts for Subscription Receipt Units of High Tide, and the Escrowed Funds will be released by the Subscription Receipt and Escrow Agent to High Tide. The Offering was effected on a "non-brokered" private placement basis pursuant to exemption under applicable securities legislation.

High Tide filed its preliminary prospectus on October 1, 2021 and is awaiting regulatory comments and approval.

* * *

Additional information related to the Company and its subsidiaries is available on its website at www.avidiangold.com.

Directors, Officers and Management

David C. Anderson - Chairman and Director

Stephen Roebuck - President and Chief Executive Officer

Dino Titaro - Director and Vice Chairman

James Polson - Independent Director

Stephen Altmann - Independent Director

Rick Winters - Independent Director

Donna McLean - Chief Financial Officer

John Schaff - Vice President, Exploration

Corporate Office

Suite 902 - 18 King St. East

Toronto, ON M5C 1C4

Tel: (647) 259-1786

Email: info@avidiangold.com Website:http://avidiangold.com

Exchange Listing

The Company's common shares ("Common Shares") are traded on the TSX Venture Exchange ("TSX-V") under the symbol AVG and on the OTCQB Venture marketplace ("OTCQB") under the ticker symbol "AVGDF".

Nature of Operations and Company Focus

Avidian is in the business of acquiring and exploring gold and non-precious projects. As of June 30, 2021, the Company has acquired the rights to explore three gold properties in the United States of America ("United States") and has 67% ownership of High Tide, which holds the right to explore the Labrador West property in Newfoundland, Canada and the Lac Pegma property in Quebec, Canada.

5

Attachments

  • Original document
  • Permalink

Disclaimer

Avidian Gold Corp. published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 21:27:08 UTC.