JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2021

JAYDEN RESOURCES INC.

INTERIM MANAGEMENT DISCUSSION & ANALYSIS - QUARTERLY HIGHLIGHTS

FOR THE NINE MONTHS ENDED SEPTEMEBER 30, 2021

This interim Management Discussion and Analysis - Quarterly Highlights ("Interim MD&A") has been prepared as of November 24, 2021. 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, 2021 and 2020 (our "Interim Financial Statements"), our audited Financial Statements for the years ended December 31, 2020 (our "Audited Financial Statements") and our Annual MD&A for the year ended December 31, 2020 (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 3 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.

The forward-looking statements in this MD&A do not include a full assessment or reflection of the unprecedented impacts of the COVD-19 pandemic occurring in the second quarter of 2021 and the ongoing and developing indirect global and regional impacts. It is anticipated that the spread of COVID-19 and the global measures to contain it, will have an impact on the Company, however, it is challenging to quantify the potential magnitude of such impact at this time.

FINANCIAL POSITION AND LIQUIDTY

Review of Financial Results

Three Months Ended

Sept 30, 2021

Jun 30, 2021 Mar 31, 2021

Dec 31, 2020

Net Income (Net loss)

(158,104)

(135,717)

(102,463)

(67,311)

Basic and diluted loss per share

(0.00)

(0.00)

(0.00)

(0.00)

Total assets

3,806,703

1,305,254

450,435

350,069

Working capital

(72,860)

927,068

268,189

272,852

Three Months Ended

Sept 30, 2020

Jun 30, 2020 Mar 31, 2020

Dec 31, 2019

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)

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2021

During the quarter ended September 30, 2021, the Company incurred a net loss of $158,104 compared to $50,770 for the quarter ended September 30, 2020. Significant items making up the change in net loss for the three months ended September 30, 2021, as compared to the three months ended September 30, 2020 were as follows:

  • Administrative expenses increased to $158,104 (2020: $50,770) as the Company has increased the cost of office overhead. Increase has mainly been due to increase in corporate administration fees to $35,628 (2020: $3,285), increase in consulting fees to $63,000 (2020: $36,000), increase in professional fees to $35,469 (2020: $4,314) and increase in regulatory and shareholder services to $27,984 (2020: $7,152).

Operating Activities

The Company's cash provided by (used in) operating activities was $64,733 (2020: ($46,683)). The cash provided by operating activities was the result of managing credit terms with vendors.

Investing Activities

The Company's cash provided by (used in) investing activities was ($968,368) (2020: $165). The Company's principal investing activity is the acquisition and exploration of its resource properties. During the nine-month period ended September 30, 2021, the Company incurred acquisition cost of $225,300 (2020: $nil) and exploration expenditures of $743,068 (2020: $nil).

Financing Activities

The Company's cash inflow provided by financing activities was $1,018,940 (2020: $140,000), which was due to

the proceeds from private placements in January and June 2021 (2020: $nil). On January 12, 2021, the Company had closed the second tranche of the Offering (as defined in Note 6 of Interim Financial Statements) for gross proceeds of $125,000 by issuing 833,334 units of the Company at a price of $0.15 per unit. On June 3, 2021, the Company closed a private placement by issuing 2,483,164 units at a price of $0.36 per unit for total proceeds of $893,940.

Cash Resources and Going Concerns

As at September 30, 2021, the Company had $460,125 in cash and a negative working capital of $72,860. To continue to maintain the property 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

On September 4, 2020, Jayden announced that it had entered into a property option agreement with Teuton Resources Corp. (TSXV:TUO) to acquire up to a 75% interest in the Harry and Outland Silver Bar properties which are located in the Skeena Mining Division approximately 30km northwest of Stewart, BC.

On February 17, 2021, the Company entered into a property option agreement with three arm's length vendors (the "Optionors") to acquire a 100% interest in the Storm Lake Gold Property ("Storm Lake") located in the Frotet- Evans Greenstone Belt in central Quebec. Under the terms of the agreement, the Company can acquire a 100% interest in the Storm Lake Gold Property by making staged cash and share payments to the Optionors totaling $750,000 and 6,600,000 post-consolidation common shares respectively. On July 5, 2021, the Company paid $200,000 and issued 2,200,000 shares to the Optionors.

On September 13, 2021, the Company entered into a termination agreement with Teuton Resources Corp. ("Teuton") and a quitclaim agreement (the "Quitclaim Agreement") with Optimum Ventures Ltd. ("Optimum") (TSXV:OPV) whereby the Company agreed with Teuton to terminate its Harry Property option agreement dated September 4, 2020, and simultaneously enter into the Quitclaim Agreement with Optimum allowing Teuton and Optimum to enter into a new option/sale agreement on the property. Under the terms of the Quitclaim Agreement,

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2021

Optimum will issue the Company 750,000 Optimum common shares and pay the Company's existing costs on the project which are $27,000. On November 10, 2021, the transaction was closed.

The Company is now focusing its resources and efforts on Storm Lake, and in October 2021, it began a proposed 6,000 meter diamond drill program.

Jayden management continues to explore options for the future of the Company and will keep shareholders apprised to any developments as they progress.

EXPLORATION AND EVALUATION ASSETS

Harry and Outland Silver Bar Properties

The Company has entered into a property option agreement (the "Agreement") with Teuton Resources Corp. ("Teuton") for the acquisition of the Harry and Outland Silver Bar properties (the "Property") on September 4, 2020. Pursuant to the terms of the Agreement, the Company may acquire an initial 55% interest in the Property.

An additional 20% interest in the Property can be acquired by Jayden taking the Property into commercial production on or before January 12, 2036. Teuton will retain a 2% net smelter royalty on the Property. The Company has received final acceptance from the TSX Venture Exchange on January 18, 2021 and the first payment of $25,000 was paid on January 15, 2021.

On September 13, 2021, the Company entered into a termination agreement with Teuton Resources Corp. ("Teuton") and a quitclaim agreement (the "Quitclaim Agreement") with Optimum Ventures Ltd. ("Optimum") (TSXV:OPV) whereby the Company has agreed with Teuton to terminate its Harry Property option agreement dated September 4, 2020, and simultaneously enter into the Quitclaim Agreement with Optimum allowing Teuton and Optimum to enter into a new option/sale agreement on the property. Under the terms of the Quitclaim Agreement, Optimum will issue the Company 750,000 Optimum common shares and pay the Company's existing costs on the project which are $27,000. On November 10 2021, the transaction was closed.

As at September 30, 2021, the Company has the following future requirements to fulfill its obligations under the Agreement:

Date

Cash

Expenditures

Paid on January 15, 2021

$

25,000

$

-

January 18, 2022

30,000

100,000

January 18, 2023

35,000

250,000

January 18, 2024

40,000

300,000

January 18, 2025

50,000

500,000

January 18, 2026

-

850,000

$

180,000

$

2,000,000

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2021

The schedule below outlines the costs incurred on the Property as at September 30, 2021:

As at December 31

Additions/ As at September 30

2020

(Writedowns)

2021

$

$

$

Acquisition

Acquisition costs

-

25,000

25,000

-

25,000

25,000

Cumulative to

Expenditures

Cumulative to

December 31, 2020

during the period September 30, 2021

$

$

$

Exploration and evaluation expenditures

Geological consulting

-

2,200

2,200

Total exploration and evaluation expenditures

-

2,200

2,200

Storm Lake Gold Property

On February 17, 2021, the Company entered into a property option agreement with three arm's length vendors (the "Optionors") to acquire a 100% interest in the Storm Lake Gold Property located in the Frotet-Evans Greenstone Belt in central Quebec. Under the terms of the agreement, the Company can acquire a 100% interest in the Storm Lake Gold Property by making cash and share payments to the Optionors totaling $750,000 and 6,600,000 post-consolidation common shares respectively.

Upon TSXV approval of the transaction (the "Effective Date"), the Company will pay $200,000 and issue 2,200,000 shares to the Optionors. On the nine (9) month anniversary of the Effective Date an additional 2,200,000 shares will be issued. On the fifteen (15) month anniversary of the Effective Date an additional $300,000 and 2,200,000 shares; and on the thirty (30) month anniversary of the Effective Date a further $250,000

On July 15, 2021, the Company paid $200,000 and issued 2,200,000 shares to the Optionors.

Pursuant to the terms of the option agreement, the Company may acquire a 100% interest in the Property by making the following:

Date

Cash

Shares

Expenditures

Effective Date (paid and issued)

$

200,000

2,200,000

$

-

Nine month anniversary of the Effective Date

-

2,200,000

-

One year anniversary of the Effective Date

-

-

150,000

Fifteen month anniversary of the Effective Date

300,000

2,200,000

-

Two year anniversary of the Effective Date

-

-

1,350,000

Thirty month anniversary of the Effective Date

250,000

-

-

Three year anniversary of the Effective Date

-

-

1,500,000

$

750,000

6,600,000

$

3,000,000

JAYDEN RESOURCES INC.

Management's Discussion and Analysis

For the nine-month period ended September 30, 2021

The schedule below outlines the costs incurred on the Property as at September 30, 2021:

As at December 31

Additions/ As at September 30

2020

(Writedowns)

2021

$

$

$

Acquisition

Cash payment

-

200,300

200,300

Share issuance

-

2,090,000

2,090,000

-

2,290,300

2,290,300

Cumulative to

Expenditures

Cumulative to

December 31, 2020

during the period September 30, 2021

$

$

$

Exploration and evaluation expenditures

Camp construction

-

184,557

184,557

Drilling

-

307,737

307,737

Equipment and supplies

-

132,575

132,575

Field expenses

-

15,946

15,946

General administration

-

37,072

37,072

Geological consulting

-

50,105

50,105

Permitting

-

3,454

3,454

Surveys and geophysics

-

9,322

9,322

Travel and accommodation

-

100

100

Total exploration and evaluation expenditures

-

740,868

740,868

ADDITIONAL DISCLOSURE

Disclosure of outstanding share data

(a) Share capital

Outstanding share data as at September 30, 2021:

The authorized share capital of the Company is 5,000,000,000 common shares without par value.

As at September 30, 2021, the Company has 39,388,402 issued and outstanding common shares.

During the nine-month period ended September 30, 2021, 5,516,498 common shares were issued.

During the year ended December 31, 2020, 3,099,999 common shares were issued.

During the year ended December 31, 2020, the Company also settled debt owing to its creditors in the amount of $65,352. The Company issued an aggregate of 440,000 common shares of the Company at a value of $0.18 per share in settlement of the debt.

Outstanding share data as at the date of this MD&A:

As at the date of this MD&A, the Company has 39,388,402 issued and outstanding common shares.

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Jayden Resources Inc. published this content on 26 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 July 2022 20:41:02 UTC.