NOTE

- WARRANTS

July 10, 2017,

in conjunction with a Private Placement, the Company issued

500,000

warrants to purchase shares of the Company's common stock with an exercise price of

$0.21

per share expiring in

one

year. In

March 2018,

by mutual agreement, the Company amended

500,000

common stock purchase warrants from an exercise price of

$0.21

per share to

$1.00

per share and extended the expiration date to

June 9, 2020.

March 20, 2019

and

April 17, 2019,

the Company issued

1,250,000

and

675,000

warrants respectively to purchase

1,925,000

additional shares of its common stock to

eight

investors. Each warrant is for

thirty-six

months from date of issuance with an exercise price of

$0.25.

The value of the warrants calculated at

March 20

and

April 17, 2019

was

$200,439

and

$76,243

for a combined total of

$276,682

and is in included in interest expense -warrants on the condensed consolidated statements of operations for the

three

months ended

May 31, 2019.

The value of the warrants was calculated utilizing a Black Scholes method which used the market value of the stock based on the issue date, an exercise price of

$0.25,

a volatility of

228%

and a discount bond equivalent range of

2.34%

2.37%.

The following is a summary of the Company's warrants issued and outstanding:

	November 30, 2020				February 28, 2020
	Warrants		Price (a)		Warrants			Price (a)
Beginning balance		3,925,000	$	.25		2,129,802		$	1.00
Issued	––		––			2,925,000			.19
Exercised	––		––		––			––
Expired	––		––			(1,129,802	)	––
Ending balance		3,925,000	$	0.25		3,925,000		$	.25

(a)

Weighted average exercise price per shares

The following table summarizes additional information about the warrants granted by the Company as of

November 30, 2020

and

February

29,

2020:

Date of Grant	Warrants outstanding		Warrants exercisable		Price		Remaining term (years)
November 19, 2016		500,000		500,000	$	.25		0.47
July 10, 2017		500,000		500,000		.25		1.02
March 20, 2019		1,250,000		1,250,000		.25		1.30
April 17, 2019		675,000		675,000		.25		1.38
June 28, 2019		1,000,000		1,000,000		.25		.07
Total warrants		3,925,000		3,925,000	$	.25		.84