Black Dragon Gold : FY21 Management Discussion & Analysis

BLACK DRAGON GOLD CORP.

MANAGEMENT'S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED DECEMBER 31, 2021 (Expressed in Canadian dollars unless otherwise noted)

Background

This Management's Discussion and Analysis ("MD&A") of Black Dragon Gold Corp. ("Black Dragon Gold" or the "Company"), provides an analysis of the Company's financial results for the year ended December 31, 2021 and should be read in conjunction with the accompanying audited annual consolidated financial statements for the year ended December 31, 2021 and the related notes thereto. Those audited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and Interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC"). All amounts are expressed in Canadian dollars, unless otherwise stated. All documents previously mentioned are available for viewing on SEDAR atwww.sedar.com.This MD&A is based on information available, and is dated, as at 30 March 2022.

Management is responsible for the preparation and integrity of the financial statements, including the maintenance of appropriate information systems, procedures and internal controls. Management is also responsible for ensuring that information disclosed externally, including that within the Company's financial statements and MD&A, are complete and reliable.

Certain statements made may constitute forward-looking statements. Such statements involve a number of known and unknown risks, uncertainties and other factors. Actual results, performance and achievements may be materially different from those expressed or implied by these forward-looking statements.

Additional information related to the Company, including its Annual Information Form for the most recent fiscal year, is available for view on SEDAR atwww.sedar.com.

Company Overview

Black Dragon Gold Corp. was incorporated under the laws of the Province of British Columbia on August 20, 2007. The Company's head office address is Ground Floor, Regent House, 65 Rodney Road, Cheltenham, GL50 1HX. UK. The registered and records office address is 1000 Cathedral Place, 925 West Georgia Street, Vancouver, BC V6C 3L2. On August 29, 2018 the Company listed on the Australian Securities Exchange ("ASX") by way of an initial public offering of CHESS Depository Interests ("CDI's"). The Company's common shares (the "Shares") were voluntarily delisted from the TSX Venture Exchange effective on February 28, 2019.

During FY20 the Company Undertook a placement raising AUD$1,500,000 by a placement at AUD$0.07 per share, with the proceeds to be used towards progression of the Company's Salave Gold Project in North-West Spain, costs incurred in connection with due diligence for complementary projects, general working capital and costs of the capital raising.

On November 18, 2021, the Company announced the announced a funding round comprising of:

• • a placement for AUD$2.4m

• • a securities purchase plan (SPP) AUD$1.1m

On November 26, 2021, the Company announced the completion of the placement, pursuant to which it issued 33,035,730 Shares in the form of CDIs at an issue price of AUD$0.056 per CDI, with each purchaser receiving an option, with each option exercisable for an additional CDI at an exercise price of AUD$0.10 for a period of two years from the issue date. The placement was well supported by key shareholders including Paul Cronin (Chairman), Deutsche Balaton Aktiengesellschaft and David Michael.

The SPP was completed in January 2022 and was well supported by the Company's shareholders with a total of AUD$1.1m raised through the issuance of 19,696,414 Shares in the form of CDIs at an issue price of AUD$0.056 per share, with each purchaser receiving an option for each two CDIs acquired thereunder, with each option exercisable for an additional CDI at an exercise price of AUD$0.10 for a period of two years from the issue date. each placement and SPP participant receiving one attaching unlisted option for every two SPP CDIs issued, with each option having an exercise price of $0.10, expiring 31 December 2023. Securities issued for the funding round noted below:

Shares	Options
Placement	33,035,730	16,517,862
SPP	19,696,414	9,848,195
Total	52,732,144	26,366,057

This funding round sets the company up to continue advancing the +1m/oz Salave Gold Project including finalising the Environmental Impact Assessment approval by the Government of the Principality of Asturias in Spain. In addition, Black Dragon has announced that it plans to initiate its Salave Gold Project Pre-Feasibility Study. In parallel the Company will be reviewing new opportunities in the precious and base metals' segments with a bias towards an Australian project.

Overview of the Salave Project

Concession/Investigation Permit name	Registration no.	Area (ha)	Date granted	Expiration date
Concessions Dos Amigos Salave Figueras Demasia Ampliacion de Figueras Demasia Segunda Ampliacion de Figueras	24.371 25.380 29.500 29.969 29.820	41.99 67.98 212.02 92.55 10.99 68.85 100.04	10 Sep 1941 10 Apr 1945 25 Jan 1977 9 Nov 1988 16 Sep 1981	10 Oct 2045 10 Oct 2045 25 Jan 2037 9 Nov 2048 16 Sep 2041
Demasia TOTAL	67.55 661.97
Investigation Permit IP Sallave	30.812	2,765	18 Feb 2014	Being Rolled Over

Black Dragon Gold owns 100% of the Salave gold deposit through its wholly owned Spanish subsidiary, Exploraciones Mineras del Cantabrico S.L. ("EMC"). The Black Dragon Gold tenure includes five Mining Concessions and associated extensions covering 662 ha and an Investigation Permit covering another 2,765 ha (Table 2) and (Figure 2).

An Investigation Permit gives the holder the right to carry out, within the indicated perimeter and for a specific term (a maximum of three years), studies and work aimed at demonstrating and defining resources and the right, once defined, to be granted a permit for mining them. The term of an Investigation Permit may be renewed by the Regional Ministry of Economy and Employment for three years and, exceptionally, for successive periods.

A Mining Concession entitles its holder to develop resources located within the concession area, except those already reserved by the State.

Under Spanish regulations, ownership of the land is independent of ownership of the mineral rights.

Table 2: Black Dragon Gold's Concessions - Salave Gold Project, Spain

Douglas Turnbull, P.Geo., is the Company's Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure in this MD&A. For further information regarding the Salave Project please see the technical report titled "NI 43-101 Technical Report - Salave Gold Project Mineral Resource Update for Black Dragon Gold Corp." with an effective date of October 31, 2018, a copy of which is available under the Company's profile atwww.sedar.com.

FY 2021 Highlights

The continues to focus on developing the 100% owned the Salave project, one of the largest undeveloped gold projects in Europe. The Salave Gold Project is situated in the Asturias province of Northern Spain. As previously disclosed, during 2018, Black Dragon Gold reported an updated Measured Mineral Resource of 1.03 million tonnes grading 5.59 g/t Au, containing 0.19 million ounces of gold; an Indicated Mineral Resource of 7.18 million tonnes grading 4.43 g/t Au, containing 1.02 million ounces of gold, plus Inferred Resources totalling 3.12 million tonnes grading 3.47 g/t Au, containing 348,000 ounces of gold (See Table 1, page 4 in accompanying Audited Annual Consolidated Financial Statements for the year ended December 31, 2021). During 2020, the Company's 100% owned Spanish subsidiary EMC officially received the Terms of Reference ("ToR") from several administrative bodies involved in the EIA process.

During 2021, the Company's focus was on finalizing and submitting the EIA and as a result there was minimal exploration activity undertaken which resulted in a reduced exploration expenditure outflow. Subject to permitting success and funding the Company does intend to expand its exploration programme to identify new zones of mineralization.

In the years prior to FY21, the Company has worked to increasing and creating shareholder value through the following initiatives:

• • Ensuring the Salave Gold permits were acquired free of any encumbrances with previous management having resolved the Rand Merchant Bank debt

• • In 2018, the Company expanded the Mineral Resource Estimate via a 2,200m drilling programme at the Salave Gold Deposit in Asturias, Spain. As a result, the Company reported a new Mineral Resource Estimate as disclosed in Table 1,

Page 5 of the accompanying Audited Annual Consolidated Financial Statements for the year ended December 31, 2020)

• • During 2019, the Company initiated engineering studies and economic analyses on its 100% owned Salave Gold based on the recently completed Mineral Resource Estimate.

• • During 2019, the Company identified additional exploration targets within its permitted area. This was done via completion of a 760-line kilometre, high-resolution, airborne magnetic and radiometric, survey over the entire, 3,427 ha Salave Project. The survey succeeded in enhancing our understanding of the geology, and identifying additional exploration targets within the Company's investigative permit area.

• • During 2020, the Company worked towards the final submission and approval of an Environmental Impact Assessment and continued to progress negotiations with the local authority and Spanish Government to finalise the remaining approvals to allow the Company to develop the Salave Gold project. The COVID-19 pandemic reduced the Company's activities with restrictions in Spain and more specifically Asturias, preventing the execution and completion of certain field studies and site visits required for the completion of the Company's Environmental and Social Impact Assessment.

Annual Results

The following table sets forth selected financial information for the year ended December 31, 2021.

Year ended December 31, 2021

Year ended December 31, 2020

Year ended December 31, 2019

Total assets Working capital Shareholders' equity

Net (loss) and comprehensive (loss) (Loss) per share - basic

(Loss) per share - diluted

Quarterly Results

$

• 2,120,831 $

1,718,419

1,719,659

(1,818,420)

(0.01)

(0.01)

2,146,627 $ 1,863,690

1,809,390 1,497,930

1,810,630 1,499,170

(1,184,893)

(0.01) (0.02)

(0.01) (0.02)

The following table summarizes information, on a quarterly basis, for the last eight quarters:

(1,972,126)Three month period ended December 31, 2021

Three month period ended September 30, 2021

Three month period ended

June 30, 2021

Three month period ended

March 31, 2021

Total assets

Working capital (deficiency)

Shareholders' equity (deficiency)

Net (loss) income and comprehensive (loss) income (Loss) income per share - basic

(Loss) income per share - diluted

$

• 2,120,831 $

1,718,419

1,719,659

(512,605)

(0.004)

(0.004)

947,369

590,701

591,941

(567,800)

(0.004)

((00.0.0014))

1,495,487 $ 1,900,030

1,157,565 1,514,103

1,158,805 1,515,343

(442,728) (0.003) (0.003)

(295,287)

(0.002) (0(.0.021)Three monthperiod ended December 31, 2020

Three monthperiod ended September 30, 2020

Three month period ended

June 30, 2020

Three month period ended

March 31, 2020

Total assets

Working capital (deficiency)

Shareholders' equity/(deficiency)

Net (loss) income and comprehensive (loss) income (Loss) income per share - basic

(Loss) income per share - diluted

$

• 2,146,627 $

1,809,390

1,810,630

(261,655)

(0.00)

(0.(001.)00)

• 2,383,291 $

2,100,093

2,101,333

(244,607)

(0.00)

(0.00)

1,242,368

$ 1,517,475

• 868,772 1,065,665

• 870,012 1,066,905

(222,355) (456,276)

(0.00) (0.00)

(0.00) (0.00)

Results of Operations

Year Ended December 31, 2021

During the year ended December 31, 2021 (the "current year"), the Company recorded a net loss of $1,818,420 compared to a net loss of $1,184,893 during the year ended December 31, 2020 (the "comparative year"). The significant variances resulted from the following:

Foreign exchange gain (loss)

During the current year, the Company incurred a $120,995 foreign exchange loss compared to a $52,793 foreign exchange gain incurred during the comparative year. This variance related mainly to the change in the US$: CAD$ foreign exchange rate as it affected US$-denominated liabilities and EUR: CAD$ foreign exchange rates.

Consultants

During the current year, the Company incurred expenses of $270,049 compared to $217,358 in the prior comparative period. This variance related mainly to overall increase in corporate costs as the Company continues focuses on finalizing and submitting the Environmental Impact Assessment.

Exploration and evaluation costs

During the current year, the Company incurred general exploration expenses of $338,157 compared to $137,700 in the prior comparative period. The variance related to the Company's Salave Gold property. This increased exploration and development spend is in line with the Company's focus on Government relations, Environmental Impact Assessment filing and permitting.

Exploration and Evaluation	December 31, 2021	December 31, 2020
Consultants - Geological and mapping database	338,157	137,700

General and administrative expenses

During the current current, General & Administration costs were $487,914 compared to $406,685 in the prior comparative period. The increase was as a result of increased activity in line with the Company's focus on Government relations, Environmental Impact Assessment filing and permitting.

Three Months Ended December 31, 2021

The Company incurred a comprehensive loss of $512,605 (three months ended December 31, 2020 - $261,655). The loss is higher than the comparative period due mainly to overall increased exploration and development and corporate costs associated with the company preparing and submitting its Environmental Impact Assessment on the Company's Salave Gold property.

Consulting expenses were $18,206 in the three months ended December 31, 2021, compared to $64,380 in the same period of 2020. This increase was a result of additional activity associated with the Company's focus on Government relations, Environmental Impact Assessment filing and permitting.

General and administrative expenses were $124,974 compared to $95,702 comparable.

in the prior comparative period. The spend isExploration and evaluation costs were $65,599 compared to $29,168 in the prior comparative period. The increase was a result of increased exploration and development spend on the Company's Salave Gold property. This increased exploration and development spend is in line with the Company's focus on Government relations, Environmental Impact Assessment filing and permitting.

Professional fees were $61,128 in the three months ended December 31, 2021, compared to $12,821 in the same period of 2020. This increase was a result of additional activity associated with the company preparing and submitting its Environmental Impact Assessment.

Cash Flows

Net cash used in operating activities during the year ended December 31, 2021 was $1,658,170 (2020 - $1,011,511). The cash used in operating activities for the current year consists primarily of the operating loss and a change in non-cash working capital.

During the year ended December 31, 2021, financing activities provided cash of $1,574,702 (2020 - $1,347,273). The financing activities in 2021 related to a placement raising AUD$1,850,000 by a placement at AUD$0.056 per share, with

- 5 - proceeds to be used to towards progression of Salave Gold Project in North-West Spain, costs incurred in connection with due diligence for complementary projects, submission of the Environmental Impact Assessment, general working capital and costs of the capital raising.

Contractual Obligations

There are no debt, finance lease, operating lease, purchase obligations or other obligations currently contracted by the Company.

Financial Condition / Capital Resources

December 31, 2021

December 31, 2020

December 31, 2019

Working capital

$

Cash

1,718,419 2,013,952

$

1,809,390 2,097,420

$

1,497,930 1,761,658

Total AssetsTotal Liabilities

2,120,831 401,172

2,146,627 335,997

1,863,690 364,520

The Company has financed its operations to date through the issuance of common shares and debt financing. The Company continues to seek capital through various means including the issuance of equity and/or debt.

The Company's audited annual consolidated financial statements for the year ended December 31, 2021 have been prepared on a going concern basis which assumes that the Company will be able realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The continuing operations of the Company are dependent upon its ability to continue to raise adequate financing and to commence profitable operations in the future.

There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms of such financing will be favourable. If adequate financing is not available when required, the Company may be unable to continue operating. The Company may seek such additional financing through debt or equity offerings, but there can be no assurance that such financing will be available on terms acceptable to the Company or at all. Any equity offering will result in dilution to the ownership interests of the Company's shareholders and may result in dilution to the value of such interests.

The Company's audited annual consolidated financial statements for the year ended December 31, 2021 do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

The Company presently does not have any capital expenditure commitments.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements as at December 31, 2021 and as of the date of this report.

Contingencies

The Company has no contingencies as at the date of this MD&A.

Proposed Transactions

The Company does not have any proposed transactions at the date of this report.