Stockholders' Equity (Deficiency):

The holders of common stock are entitled to

one

vote for each share held. There are

restrictions that limit the Company's ability to pay dividends on its common stock. The Company has

not

declared any dividends since incorporation. The Company's common stock has

par value per common stock.

(a) Common stock issuances:

During the period ended

June 30, 2018,

the related party warrant holders exercised their warrants for

1,200,000

shares at

CAD$0.65

(

US$0.50

) per share through the settlement of the promissory notes, in a non-cash transaction.

During the period ended

March 31, 2018,

a warrant holder exercised their warrant for

15,000

shares at

$0.44

per share raising a total of

$6,600.

During the period ended

March 31, 2018,

the Company closed a TSX Venture Exchange approved private placement financing totaling

$2,551,500.

The private placement consisted of

7,290,000

common shares priced at

$0.35

per share. Pursuant to the private placement the Company paid a commission of

$253,750

and incurred share issuance expense of

$17,608

(Fiscal

2017

$25,816

December 2017,

two

warrant holders exercised their warrants and acquired

121,111

common shares of the Company at

CAD$0.55

(approximately

$0.43

) per share totaling

$52,310.

October 27, 2017,

the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling

$45,011.

The private placement consisted of

128,600

units priced at

$0.35

per unit. Each Unit was comprised of

one

common share and

one

share purchase warrant. Each share purchase warrant is exercisable into

one

common share of the Company for

months following closing. The exercise price of the warrants is

$0.44

per share for the

first

six

months following closing and

$0.52

per share for the period which is

months following closing.

September 29, 2017,

the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling

$1,010,763.

The private placement consisted of

2,887,895

units priced at

$0.35

per unit. Each Unit was comprised of

one

common share and

one

share purchase warrant. Each share purchase warrant is exercisable into

one

common share of the Company for

months following closing. The exercise price of the warrants is

$0.44

per share for the

first

six

months following closing and

$0.52

per share for the period which is

months following closing.

June 16, 2017,

the Company closed a TSX Venture Exchange approved non-brokered private placement financing totaling

CAD$1.045

million (approximately

$790,281

). The private placement consisted of

2,323,779

units priced at

CAD$0.45

(

$0.34

) per unit. Each Unit was comprised of

one

common share and

one

share purchase warrant. Each share purchase warrant is exercisable into

one

common share of the Company for

months following closing. The exercise price of the warrants is

CAD$0.55

per share for the

first

six

months following closing and

CAD$0.65

per share for the period which is

months following closing.

(b) Warrants

A summary of warrant activity for the period ended

September 30, 2018

are as follows:

	Number of warrants			Weighted average exercise price
Outstanding, December 31, 2016		-			$-

Granted		2,323,779		0.43	-	0.49
Granted		2,887,895		0.44	-	0.52
Granted		128,600		0.44	-	0.52
Exercised		(121,111	)		(0.43)

Outstanding, December 31, 2017		5,219,163			0.48

Granted		-			-
Exercised		(1,215,000	)		(0.50)
Expired, unexercised		(3,875,563	)		(0.51)

Outstanding September 30, 2018		128,600			$0.52

The following table summarizes information concerning outstanding and exercisable warrants at

September 30, 2018:

Range of exercise prices per share	Number of outstanding warrants		Expiry date
0.52		128,600	October 26, 2018
		128,600

Subsequent to the quarter ended

September 30, 2018,

128,600

warrants expired unexercised.

2015

stock option plan

In the year ended

December 31, 2015,

the shareholders approved the

2015

stock option plan and the

1999,

2001

and the

2005

plans were discontinued. The

2015

stock option plan is intended to provide incentive to employees, directors, advisors and consultants of the Company to encourage proprietary interest in the Company, to encourage such employees to remain in the employ of the Company or such directors, advisors and consultants to remain in the service of the Company, and to attract new employees, directors, advisors and consultants with outstanding qualifications. The maximum number of shares issuable under the Plan shall

not

exceed

10%

of the number of Shares of the Company issued and outstanding as of each Award Date unless shareholder approval is obtained in advance in accordance unless shareholder approval is obtained in advance in accordance. The Board of Directors determines the terms of the options granted, including the number of options granted, the exercise price and their vesting schedule. The maximum term possible is

years. Under the

2015

plan we have reserved

10%

of the number of Shares of the Company issued and outstanding as of each Award Date.

During the quarter ended

June 30, 2018,

there were

710,000

fully vested,

year, options granted with an exercise price of

CAD$0.54

(

US$0.42

) and

1,275,000

fully vested,

year options granted with an exercise price of

US$0.50

and

145,000

vesting,

year options granted with an exercise price of

CAD$0.54

(

US$0.42

) to employees and consultants. During the quarters ended

March 31, 2018,

June 30, 2018,

and

September 30, 2018,

75,000

options,

25,000

options and

25,000

options,

were cancelled respectively.

A summary of stock option activity for the stock option plans for the periods ended

September 30, 2018

is as follows:

	Number of options			Weighted average exercise price
Outstanding, December 31, 2016		1,010,000		$	0.42

Granted		725,000			0.42
Exercised		-			-
Cancelled		(130,000	)		(0.42	)

Outstanding December 31, 2017		1,605,000			0.42

Granted		2,130,000			0.47
Exercised		-			-
Cancelled		(125,000	)		(0.42	)

Outstanding September 30, 2018		3,610,000		$	0.45

The aggregate intrinsic value for options exercisable as at

September 30, 2018

was

$nil

(

December 31, 2017 -

$nil

The following table summarizes information concerning outstanding and exercisable stock options at

September 30, 2018:

Range of exercise prices per share		Number outstanding		Number exercisable		Expiry date
$	0.42		855,000		855,000	December 20, 2021
	0.42		650,000		380,000	November 8, 2022
	0.42		830,000		722,000	June 4, 2023
	0.50		1,275,000		1,275,000	June 4, 2023
			3,610,000		3,232,000