Jayden Resources : MD&A - Sep 30, 2020

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2020

JAYDEN RESOURCES INC.

INTERIM MANAGEMENT DISCUSSION & ANALYSIS - QUARTERLY HIGHLIGHTS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

This interim Management Discussion and Analysis - Quarterly Highlights ("Interim MD&A") has been prepared as of November 27, 2020. This interim MD&A updates disclosure previously provided in our Annual MD&A, up to the date of this Interim MD&A, and should be read in conjunction with our unaudited interim financial statements for the nine months ended September 30, 2020 and 2019 (our "Interim Financial Statements"), our audited Financial Statements for the years ended December 31, 2019 (our "Audited Financial Statements") and our Annual MD&A for the year ended December 31, 2019 (our "Annual MD&A").

Our Interim Financial Statements have been prepared by management in accordance with International Financial Reporting Standards ("IFRS") and all amounts are expressed in Canadian dollars unless otherwise noted. Our accounting policies are described in note 2 of our Audited Financial Statements. Additional information relating to the Company is available on SEDAR at www.sedar.com.

Caution on Forward-Looking Information

This MD&A may include forward-looking statements and forward-looking information, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements and forward-looking information addresses future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

FINANCIAL POSITION AND LIQUIDTY

Review of Financial Results

Three Months Ended

	Sept 30, 2020	Jun 30, 2020 Mar 31, 2020	Dec 31, 2019
Net Income (Net loss)	(50,770)	(74,892)	(25,991)	5,424,181
Basic and diluted loss per share	(0.00)	(0.00)	(0.00)	0.06
Total assets	153,650	16,318	31,978	57,407
Working capital	(64,037)	(153,267)	(78,375)	(52,384)

Three Months Ended

	Sept 30, 2019	Jun 30, 2019 Mar 31, 2019	Dec 31, 2018
Net Income (Net loss)	(39,023)	(98,422)	(4,469,131)	14,127,104
Basic and diluted loss per share	(0.00)	(0.00)	(0.05)	0.16
Total assets	109,124	177,958	316,246	20,457,164
Working capital	1,340	43,363	176,695	20,283,971

During the quarter ended September 30, 2020, the Company incurred a net loss of $50,770 compared to $39,023 for the quarter ended September 30, 2019. Significant items making up the change in net loss for the three months ended September 30, 2020, as compared to the three months ended September 30, 2019 were as follows:

• Administrative expenses increased to $50,770 (2019: $38,610) as the Company has increased the cost of
  office overhead. Increase has mainly been due to an increase in consulting fees to $36,000 (2019: $19,200).

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2020

Operating Activities

The Company's cash used in operating activities was $46,683 (2019: $209,973). The decrease in the nine months

September 30, 2020 was mainly due to an increase in payables and accruals $107,897 (2019: $-65,409).

Investing Activities

The Company's cash generated in investing activities was $165 (2019: $251,739). The decrease in the nine months

September 30, 2020 was due to no marketable securities activities in the year (2019: $251,528).

Financing Activities

The Company's cash inflow in financing activities was $140,000 as opposed to an outflow of $398,098 in 2019. The inflow in the nine months September 30, 2020 was due to the Company receiving proceeds on shares to be issued for $140,000.

Cash Resources and Going Concerns

At September 30, 2020, the Company had $144,675 in cash and a negative working capital of $64,037. To continue to operate in the future, the Company will have to raise additional equity or form strategic partnerships; however, there cannot be any certainty that additional financing can be raised or strategic partnerships can be found.

OPERATIONS

In 2018, the company disposed its subsidiary, Jayden Resources (Canada) Inc. ("Jayden Canada"). The Company is principally engaged in the business of acquiring, exploring and developing interests in mining projects. To date, the Company has not generated revenues from its principal activities and is considered to be in the exploration stage.

ADDITIONAL DISCLOSURE

Related Party Transactions

The Company entered into the following material related party transactions during the following periods:

	Management	office
Services provided for the nine months ended September 30, 2020	services	expenses
	$	$
David Eaton (1)	48,000	-
	Management	office
Services provided for the year ended December 31, 2019	services	expenses
	$	$
David Eaton (1)	-	-

(1) Mr. David Eaton, officer of the Company, provided consulting services.

As at September 30, 2020, the Company owed $50,400 to Mr. David Eaton.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2020

Outstanding Share Data

The authorized capital consists of 5,000,000,000 shares without par value. As of November 27, 2020, the following common shares and stock options were issued and outstanding:

	Number of Shares	Exercise Price $	Expiry Date
Common Shares	101,615,746	-	-
Warrants	9,300,000	0.07	November 5, 2022
Fully diluted	110,915,746

Subsequent event

Subsequent to September 30, 2020, the Company issued 9,300,000 units of the Company at a price of $0.05 per unit for gross proceeds of $465,000, of which $140,000 was received prior to period end and is included in share subscriptions received. Each unit consisted of one common share of the Company and one transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company at a price of $0.07 per warrant share until November 5, 2022.

Subsequent to September 30, 2020, the Company also settled debt owing to its creditors in the amount of $65,352 by issuing 1,320,000 common shares at a deemed price of $0.05 per share.

Financial instruments

The Company is exposed to financial risks through its use of financial instruments in its ordinary course of operations. The financial risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company does not have any written risk management policies and guidelines. However, the board of directors meets regularly and co-operates closely with key management to identify and evaluate risks and to formulate strategies to manage financial risks. The Company has not used any derivatives or other instruments for hedging purposes and does not hold or issue derivative financial instruments for trading purposes. The most significant risks to which the Company is exposed to are described below.

(i) Currency risk

Some of the operating expenses and cash and cash equivalents held are denominated in foreign currencies and as such are subject to currency risk. The Company does not enter into derivative financial instruments to mitigate this risk but the Company does not believe its net exposure to foreign exchange risk is significant as most funds are held by the Company in Canadian dollars.

(ii) Credit risk

The Company's cash & cash equivalent is held in authorized Canadian financial institutions. The Company does not have any asset-backed commercial paper. Management believes that the credit risk concentration with respect to its financial instruments is minimal.

The Company adopts conservative investment strategies. Usually investments are in liquid securities quoted on recognized stock exchanges. No margin trading is allowed. Loans and financial guarantees to individuals on non-Group entities have to be approved by the board of directors. The board monitors the Company's overall investment position and exposure on a day to day basis.

The credit and investment policies have been followed by the Company since prior years and are considered to have been effective in limiting the Company's exposure to credit risk to a desirable level.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2020

Financial instruments (continued)

(iii) Interest rate risk

Interest rate risk is the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has interest-bearing assets in relation to cash at banks and GICs carried at floating interest rates with reference to the market and non-interest bearing director's loans. The Company's operating cash flows are substantially independent of changes in market interest rates. The Company has not used any financial instrument to hedge potential fluctuations in interest rates. The exposure to interest rates for the Company is considered minimal. The Company has no interest bearing borrowings.

The policies to manage interest rate risk have been followed by the Company since prior years and are considered to be effective.

(iv) Liquidity risk

The Company's ability to continue as a going concern is dependent on management's ability to raise required funding through future equity issuances. The Company manages its liquidity risk by forecasting cash flows from operations and anticipating any investing and financing activities. Management and the board of directors are actively involved in the review, planning and approval of significant expenditures and commitments.

The liquidity policies have been followed by the Company since prior years and are considered to have been effective in managing liquidity risk.

(v) Other price risk

Other price risk relates to the risk that the fair values or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than changes in interest rates and foreign exchange rates). The Company is exposed to change in market prices of listed equity in respect of its investments classified as marketable securities.

The policies to manage other price risk have been followed by the Company since prior years and are considered to be effective.

(vi) Fair value measurements

The following table presents financial assets and liabilities measured at fair value in the statement of financial position in accordance with the fair value hierarchy. The hierarchy groups financial assets into three levels based on the relative reliability of significant inputs used in measuring the fair value of these financial assets. The fair value hierarchy has the following three levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets;

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3 - inputs for the asset that are not based on observable market data (unobservable inputs).

The level in the fair value hierarchy within which the financial asset is categorized in its entirety is based on the lowest level of input that is significant to the fair value measurement.

The cash and cash equivalent and marketable securities measured are grouped into level 1 as at September 30, 2020 and December 31, 2019.

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2020

Financial instruments (continued)

(vi) Fair value measurements (continued)

There have been no significant transfers between levels 1 and 2 in the respective reporting periods. The methods and valuation techniques used for the purpose of measuring fair value are unchanged compared to the previous reporting periods. The listed equity securities are denominated in Canadian dollars. Fair values have been determined by reference to their quoted bid prices at the reporting dates.

The fair value of the Company's amounts due to related companies and payables and accruals approximates its carrying values.

Capital risk management

The Company's capital management objectives are to ensure the Company's ability to continue as a going concern so as to benefit from its operations to provide an adequate return for its shareholders.

The Company manages its capital structure and makes adjustments to it based on the funds available to the Company in order to support the acquisition, exploration and development of mineral properties. The Company defines capital that it manages as its shareholders' equity. The Board of Directors does not establish quantitative return on capital criteria for management, but rather relies on the expertise of the Company's management to sustain future development of the business.

The Company has historically relied on the equity markets to fund the acquisition, exploration and development of mineral properties. In addition, the Company is dependent upon external financings to fund activities. In order to carry out planned exploration and pay for administrative costs, the Company will spend its existing working capital and raise additional funds as needed. The Company will continue to assess new properties and seek to acquire an interest in additional properties if it feels there is sufficient geologic or economic 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 Company, is reasonable.

The Company is not subject to externally imposed capital requirements.

Off balance sheet transactions

There are currently no off-balance sheet arrangements which could have a material effect on current or future results of operations, or the financial condition of the Company.

Internal control over financial reporting

The Chief Executive Officer ("CEO") and the Chief Financial Officer ("CFO") of the Company, together with the Company's management, are responsible for the information disclosed in this MD&A and in the Company's other external disclosure documents. For the period ended September 30, 2020, the CEO and the CFO have designed, or caused to be designed under their supervision, the Company's disclosure controls and procedures ("DCP") to provide reasonable assurance that material information relating to the Company has been disclosed in accordance with regulatory requirements and good business practices and that the Company's DCP will enable the Company to meet its ongoing disclosure requirements.

The CEO and CFO have evaluated the effectiveness of the Company's DCP and have concluded that the design and operation of the Company's DCP were effective as of June 30, 2020 and that the Company has the appropriate DCP to ensure that information used internally by management and disclosed externally is, in all material respects, complete and reliable.