NOTE

CAPITAL STOCK

Equity Financing

October 3, 2018,

we completed a public offering of

12,613,049

units at a price of

$1.60

per unit for gross proceeds of

$20,180,878

(the

“October 2018

Offering”). Each unit was comprised of

one

share of the Company and

one

-half of

one

share purchase warrant. Each whole warrant entitles its holder to acquire

one

share at an exercise price of

$2.05

per share, exercisable immediately upon issuance and expiring

months from the date of issuance.

In connection with the

October 2018

Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase

756,782

shares of our Company, exercisable at an exercise price of

$2.05

per share and expiring

months from the date of issuance.

The shares were valued at the Company’s closing price of

$1.54

per share at

October 3, 2018.

The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	2.90	%
Expected Annual Volatility	63.30	%
Expected Contractual Life in Years	2.50
Expected Annual Dividend Yield	0.00	%

The net proceeds from the

October 2018

Offering were allocated to the fair values of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	19,424,095
Fair Value of Share Purchase Warrants		3,094,693
Total Fair Value Before Allocation to Net Proceeds	$	22,518,788

Gross Proceeds	$	20,180,878
Share Issuance Costs - Cash		(1,211,667	)
Net Cash Proceeds Received	$	18,969,211

Relative Fair Value Allocation to:
Shares	$	16,362,327
Share Purchase Warrants		2,606,884
	$	18,969,211

January 20, 2017,

we completed a public offering of

17,330,836

units at a price of

$1.50

per unit for gross proceeds of

$25,996,254

(the

“January 2017

Offering”). Each unit is comprised of

one

share of the Company and

one

-half of

one

share purchase warrant, however, as a result of rounding, since we will

not

issue fractional shares, there were

9,571,929

whole warrants issued rather than

9,571,934

whole warrants. Each whole warrant entitles its holder to acquire

one

share at an exercise price of

$2.00

per share, expiring

three

years from the date of issuance. In connection with the

January 2017

Offering, we also issued compensation share purchase warrants to agents as part of share issuance costs to purchase

906,516

shares of our Company, exercisable at an exercise price of

$2.00

per share and expiring

three

years from the date of issuance.

The shares were valued at the Company’s closing price of

$1.54

per share at

January 20, 2017.

The share purchase warrants were valued using the Black-Scholes option pricing model with the following assumptions:

Expected Risk Free Interest Rate	1.50	%
Expected Annual Volatility	76.96	%
Expected Contractual Life in Years	3.00
Expected Annual Dividend Yield	0.00	%

The net proceeds from the

January 2017

Offering were allocated to the fair values of the shares and share purchase warrants as presented below:

Fair Value of Shares	$	26,689,487
Fair Value of Share Purchase Warrants		5,873,932
Total Fair Value Before Allocation to Net Proceeds	$	32,563,419

Gross Proceeds	$	25,996,254
Share Issuance Costs - Cash		(1,550,843	)
Net Cash Proceeds Received	$	24,445,411

Relative Fair Value Allocation to:
Shares	$	20,035,841
Share Purchase Warrants		4,409,570
	$	24,445,411

Share Transactions

During Fiscal

2019,

we entered into a Securities Exchange Agreement (the “Securities Exchange Agreement”) with PRRF whereby the PRRF exchanged their collective

11,000,000

outstanding Warrants for an aggregate of

750,000

Shares of the Company, with a fair value of

$1.33

per Share. The Warrants, with an exercise price of

$2.30

and expiry date of

August 9, 2022,

were valued at

$0.45

per share using the Barrier Option Pricing Model at the date of issuance on

August 9, 2017,

in connection with the Reno Creek Acquisition. Refer to Note

Mineral Rights and Properties. The difference between the carrying value of the Warrants of

$4,950,000

and fair value of the shares of

$997,500

was recorded as additional paid in capital and had

impact on the Company’s Consolidated Statement of Operations and Comprehensive Loss.

Share Purchase Warrants

A continuity schedule of outstanding share purchase warrants as at

July 31, 2019

is as follows:

	Number of Warrants			Weighted Average Exercise Price
Balance, July 31, 2016		13,953,872		$	1.65
Issued		9,571,929			2.00
Exercised		(1,989,717	)		1.20
Expired		(1,859,524	)		2.60
Balance, July 31, 2017		19,676,560			1.78
Issued		11,358,728			2.30
Exercised		(61,799	)		1.20
Expired		(50,000	)		1.95
Balance, July 31, 2018		30,923,489			1.97
Issued		7,063,253			2.05
Exercised		(3,999,881	)		1.21
Expired		(3,542,951	)		2.13
Exchanged for shares pursuant to Securities Exchange Agreement		(11,000,000	)		2.30
Balance, July 31, 2019		19,443,910		$	1.94

During Fiscal

2019,

we received cash proceeds totaling

$4,822,357

from the exercise of

3,999,881

share purchase warrants at a weighted average exercise price of

$1.21

per share.

A summary of share purchase warrants outstanding and exercisable as at

July 31, 2019

are as follows:

Weighted Average Exercise Price		Number of Warrants Outstanding		Weighted Average Remaining Contractual Life (Years)		Expiry Date
$	2.00		9,571,929		0.47	January 20, 2020
	1.35		2,450,000		0.50	January 30, 2020
	2.05		7,063,253		1.68	April 3, 2021
	2.30		308,728		3.03	August 9, 2022
	1.64		50,000		3.81	May 21, 2023
$	1.94		19,443,910		0.96