(FORMERLY SUMMIT POINT URANIUM CORP.) CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended June 30, 2017 and 2016

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1 (FORMERLY SUMMIT POINT URANIUM CORP.) CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and nine months ended June 30, 2017 and 2016 (Unaudited) (Expressed in Canadian Dollars)

2 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION June 30, 2017 September 30, 2016 ASSETS Current assets Cash $ 1,639,770 $ 105,924 Prepaid expenses 17,083 - Receivables 7,470 6,418 Deferred finance costs (Note 8) 97,604-1,761, ,342 Reclamation bonds (Note 4) 125,877 44,598 Exploration and evaluation assets (Note 3 and Schedule) 1,939,851 1,343,818 $ 3,827,655 $ 1,500,758 LIABILITIES Current liabilities Accounts payable and accrued liabilities $ 97,769 $ 138,422 Notes payable - 244,514 97, ,936 Reclamation provision (Note 4) 80,644 28, , ,508 SHAREHOLDERS EQUITY Share capital (Note 5) 4,096,546 1,260,749 Contributed surplus 361,952 60,820 Obligation to issue shares (Note 5) - 100,000 Deficit (809,256) (332,319) 3,649,242 1,089,250 $ 3,827,655 $ 1,500,758 NATURE OF OPERATIONS (NOTE 1) EVENTS AFTER THE REPORTING PERIOD (NOTE 11) These condensed interim consolidated financial statements were approved for issue by the Audit Committee of the Board of Directors on August 22, 2017 and are signed on its behalf by: Signed: Glenn Catchpole, Director Signed: Ben Leboe, Director The accompanying notes and schedule are an integral part of these condensed interim consolidated financial statements. 1 P a g e

3 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS Three Month Period Ended June 30, 2017 Three Month Period Ended June 30, 2016 Nine Month Period Ended June 30, 2017 Nine Month Period Ended June 30, 2016 Audit and accounting $ 6,930 $ - $ 6,930 $ - Consulting fees (Note 6) 68,879-84,364 - Filing fees 176 (5) 2, Finance fees - 1, ,285 Foreign exchange 6, ,815 1,410 Insurance 5,787-9,626 - Interest and bank charges , Legal 47-4, Office and administration 2, , Office rent and parking 6,897-8,905 - Property investigation 30,743-30,743 - Shareholder reporting Stock-based compensation ,132 - Telephone Travel 7,982-9,139 - LOSS BEFORE OTHER ITEM (138,304) (2,081) (478,271) (5,629) OTHER ITEM Other revenue 1,334 1,332 1,334 1,332 LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD (136,970) (749) (476,937) (4,297) $ LOSS PER SHARE, BASIC AND DILUTED (0.01) $ (0.00) $ (0.03) $ (0.00) WEIGHTED AVERAGE SHARES OUTSTANDING 18,522,265 3,111,487 15,096,994 3,111,487 The accompanying notes and schedule are an integral part of these condensed interim consolidated financial statements. 2 P a g e

4 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Number of Shares Obligation to Issue Shares Share Capital Contributed Surplus Deficit Total Equity Balance, September 30, ,111,487 $ - $ 1,280,749 $ 60,820 $ (259,595) $ 1,081,974 Net loss for the period (4,297) (4,297) Balance, June 30, ,111,487 $ - $ 1,280,749 $ 60,820 $ (263,892) $ 1,077,677 Balance, September 30, ,111,487 $ 100,000 $ 1,260,749 $ 60,820 $ (332,319) $ 1,089,250 Common shares issued for: Cash private placement (Note 5) 18,682,083-2,747, ,747,505 Settlement of debt 702, , ,173 Stock-based compensation , ,132 Share issue costs - - (25,881) - - (25,881) Obligation to issue shares - (100,000) (100,000) Net loss for the period (476,937) (476,937) Balance, June 30, ,496,171 $ - $ 4,096,546 $ 361,952 $ (809,256) $ 3,649,242 The accompanying notes and schedule are an integral part of these condensed interim consolidated financial statements. 3 P a g e

5 CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED JUNE 30, 2017 AND 2016 Nine Months Ended June 30, 2017 Nine Months Ended June 30, 2016 CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES Net income (loss) $ (476,937) $ (4,297) Items not affecting cash Stock-based compensation 301,132 Unrealized foreign exchange gain (loss) 1,190 1,455 Changes in non-cash working capital balances Prepaid expenses (17,083) - Receivables (1,052) (8) Accounts payable and accrued liabilities 49,550 (2,458) Deferred finance costs (97,604) - (240,804) (5,308) FINANCING ACTIVITIES Finance costs 525 3,285 Issuance of shares, net 2,721,624 - Obligation to issue shares (100,000) - Issuance (repayment) of notes payable (245,039) 3,500 2,377,110 6,785 INVESTING ACTIVITIES Exploration and evaluation expenditures (517,870) (214) Reclamation bonds (84,590) - (602,460) (214) INCREASE IN CASH 1,533,846 1,263 CASH, BEGINNING OF PERIOD 105,924 4,786 CASH, END OF PERIOD $ 1,639,770 $ 6,049 SUPPLEMENTAL CASH FLOW INFORMATION (Note 7) The accompanying notes and schedule are an integral part of these condensed interim consolidated financial statements. 4 P a g e

6 CONDENSED INTERIM CONSOLIDATED SCHEDULE OF EXPLORATION AND EVALUATION ASSETS (Expressed in Canadian Dollars) Period Ended June 30, 2017 Activity Year Ended September 30, 2016 Activity Year Ended September 30, 2015 GAS HILLS PROPERTY Property acquisition costs and option payments $ 206,252 $ 206,252 $ - $ - $ - Property maintenance 131, , Reclamation bond 52,377 52, Engineering and technical consulting 56,351 56, Communications, field supplies and expenses 2,476 2, , , JUNIPER RIDGE PROPERTY Property acquisition costs and option payments 53,572 53, Property maintenance 30,042 30, Engineering and technical consulting 23,685 23, Communications, field supplies and expenses , , SHIRLEY BASIN PROPERTY Property acquisition costs and option payments 8,036 8, Property maintenance 28,926 28, Engineering and consulting Communications, field supplies and expenses ,730 37, JB PROPERTY Property maintenance 520, ,858 13, ,213 Property acquisition costs and option payments 217, , ,642 Engineering and consulting 87,621-87,621-87,621 Assays, surveys and analysis 1,718-1,718-1,718 Environmental 1,070-1,070-1,070 Geophysics 20,418-20,418-20,418 Communications, field supplies and expenses 9,064-9,064-9, , ,391 13, ,746 TICABOO PROPERTY Property maintenance 74,112-74,112 7,045 67,067 Property acquisition costs and option payments 105, , ,859 Engineering and consulting 163, ,108 (5,902) 169,010 Assays, surveys and analysis 7,323-7,323-7,323 Environmental 5, , ,320 Equipment 16,290-16,290-16,290 Drilling 52,769-52,769-52,769 Communications, field supplies and expenses 7,927 1,302 6,625-6,625 Resource calculation 3,283-3,283-3,283 Reclamation cost 28,265 (305) 28,570 (497) 29,067 Recovery 14,043-14,043-14,043 Travel 7,927-7,927-7, ,624 1, , ,583 TOTAL EXPLORATION AND EVALUATION ASSETS $ 1,939,851 $ 596,033 $ 1,343,818 $ 14,489 $ 1,329,329 The accompanying notes and schedule are an integral part of these condensed interim consolidated financial statements. 5 P a g e

7 1. NATURE OF OPERATIONS AND GOING CONCERN URZ Energy Corp. (formerly Summit Point Uranium Corp.) (the "Company") was incorporated on January 11, 2008 under the Business Corporations Act (British Columbia). On February 6, 2017, the Company changed its name from Summit Point Uranium Corp. to URZ Energy Corp. The Company s principal office is located at # West Hastings Street, Vancouver, British Columbia, Canada, V6E 2E9. The Company is in the mineral exploration and development business, with its activities located in North America. To date, no mineral development projects have been completed and no commercial development or production has commenced. The Company is primarily in the exploration stage with respect to its mineral properties. Based on the information available to date, the Company has not yet determined whether its mineral properties contain economically recoverable reserves. The recoverability of the amounts shown for exploration and evaluation costs is dependent upon the discovery of economically recoverable reserves, the ability of the Company to obtain necessary financing to successfully complete their exploration and development programs and ultimately upon future profitable production. These condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards ( IFRS ) appropriate for a going concern. The going concern basis of accounting assumes the Company will continue to realize the value of its assets and discharge its liabilities and other obligations in the ordinary course of business. Should the Company be required to realize the value of its assets in other than the ordinary course of business, the net realizable value of its assets may be materially less than the amounts shown in the condensed interim consolidated financial statements. These condensed interim consolidated financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that may be necessary should the Company be unable to repay its liabilities and meet its other obligations in the ordinary course of business or continue operations. June 30, 2017 September 30, 2016 Deficit $ 809,256 $ 332,319 Working capital (deficit) $ 1,664,158 $ (270,594) 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (a) Statement of compliance The Company s condensed interim consolidated financial statements have been prepared in accordance with IFRS applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ( IASB ). The accounting policies followed in these condensed interim consolidated financial statements are consistent with those applied in the Company s annual consolidated financial statements for the year ended September 30, These condensed interim consolidated financial statements should be read in conjunction with the Company s annual financial statements for the year ended September 30, 2016 which have been prepared according to IFRS as issued by the IASB. The Audit Committee of the Board of Directors authorized for publication the condensed interim consolidated financial statements on August 22, (b) Basis of presentation These condensed interim consolidated financial statements have been prepared on the historical cost basis except for the revaluation of certain financial assets and financial liabilities to fair value. The condensed interim consolidated financial statements include the interim financial statements of the Company and its wholly-owned subsidiary, Ucolo Exploration Corp., a company incorporated in the United States of America. 6 P a g e

8 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (b) Basis of presentation (Cont d) The preparation of these condensed interim consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the period. These estimates are based on historical experience, current and future economic conditions and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual outcomes could differ from these estimates. (c) New IFRS standards not yet adopted (i) IFRS 9 Financial Instruments. IFRS 9 is effective for annual periods beginning on or after January 1, IFRS 9 replaces the multiple classification and measurement models in IAS 39 with a single model that has only two classification categories: amortized cost and fair value. IFRS 9 prohibits reclassifications except in rare circumstances when the entity s business model changes. The new standard removes the requirement to separate embedded derivatives from financial asset hosts. It requires a hybrid contract to be classified in its entirety at either amortized cost or fair value. (ii) IFRS 15 Revenue from contracts with customers. IFRS 15 is effective for annual periods beginning on or after January 1, IFRS 15 specifies how and when to recognize revenue as well as requires entities to provide users of financial statements with more informative, relevant disclosures. The standard supersedes IAS 18, Revenue, IAS 11, Construction Contracts, and a number of revenuerelated interpretations. The new standard will apply to nearly all contracts with customers: the main exceptions are leases, financial instruments and insurance contracts. (iii) IFRS 16 Leases. In January 2016, the IASB issued IFRS 16 which replaces IAS 17 Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract on the basis of whether the customer controls the asset being leased. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to current finance lease accounting, with limited exceptions for shortterm leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. Management is currently assessing the impact of the new standards on the Company s accounting policies and financial statement presentation. (d) Equity Financing The Company engages in equity financing transactions to obtain the funds necessary to continue operations and explore and evaluate mineral properties. These equity financing transactions may involve issuance of common shares or units. Units typically comprise a certain number of common shares and share purchase warrants. Depending on the terms and conditions of each equity financing transaction, the warrants are exercisable into additional common shares at a price prior to expiry as stipulated by the terms of the transaction. The Company has adopted a residual value method with respect to the measurement of common shares and share purchase warrants issued as private placement units. The fair value of the common shares issued in the private placements is determined by the quoted price on the announcement date. The balance, if any, is allocated to the attached share purchase warrants. 7 P a g e

9 3. EXPLORATION AND EVALUATION ASSETS (a) Gas Hills, Juniper Ridge and Shirley Basin Properties On September 9, 2016, the Company entered into an Asset Purchase and Sale Agreement ( Agreement ) with Strathmore Resources (US) Ltd. ( Strathmore ) whereby the Company purchased all of Strathmore s interests in the Gas Hills Property, the Juniper Ridge Property and the Shirley Basin Property (collectively the Purchased Assets ). The Purchased assets are located in Wyoming, USA and consist of: 884 unpatented mining claims located in Fremont, Carbon and Natrona Counties; 4 Wyoming State leases; 1 private mineral lease agreement; and 1 private surface use and access agreement. The consideration for the Purchased Assets is as follows: (i) Pay to Strathmore US$200,000 on closing (completed); (ii) Reimburse Strathmore for the Bureau of Land Management claim maintenance fees for 884 total claims in the amount of US$137,020 due September 1, 2016 (completed); (iii) Replace all existing permit bonds of US$63,000 (paid); and (iv) Pay to Strathmore US$200,000 on the first anniversary of the closing date. This transaction closed on October 31, (b) JB Property Pursuant to an Assignment Agreement effective February 21, 2008, the Company was assigned the rights and obligations of 280 unpatented mining claims located in San Miguel County, Colorado. As consideration for these claims, the Company issued 615,384 common shares with an estimated fair value of US$ per common share. In addition to the above mentioned claims, the Company staked 221 claims in the surrounding area. During the year ended September 30, 2016, the company strategically reduced its land package to 34 core unpatented mining claims located in San Miguel County, Colorado and 32 core unpatented mining claims located in San Juan County, Utah. (c) Ticaboo Property Pursuant to a Letter Agreement dated March 21, 2008 and subsequent Assignment Agreement dated April 3, 2008 (as amended September 22, 2008 and March 1, 2009), the Company was assigned certain unpatented mining claims (26 unpatented lode mining claims and 8 unpatented placer claims) and all rights to minerals in, on or under such unpatented mining claims (including severed and stockpiled minerals) located in Garfield County, Utah, for consideration of: $100,000 cash upon execution of the Letter Agreement (paid); 923,077 common shares issued with an estimated fair value of US$ per common share (subsequently returned 307,692 to treasury); and Execution of a consulting agreement whereby the Company will engage the assignor as an independent contractor with a monthly fee of US $10,000 per month beginning in March 2008 for a 12 month term (completed). 4. RECLAMATION PROVISION The reclamation provision is the estimated cost of reclaiming the area on the Company s Ticaboo and Gas Hills Properties. An amount equal to the undiscounted obligation plus accrued interest is held with the Bureau of Land Management of the State of Utah (Ticaboo Property) and State of Wyoming (Gas Hills Property) in the form of reclamation bonds. The reclamation bonds have been accounted for as long term deposits. All of the accrued reclamation costs are long-term in nature. No portion of these costs has been classified as a current liability. 8 P a g e

10 4. RECLAMATION PROVISION (Cont d) The following table reconciles the estimated beginning and ending carrying amounts of the reclamation provision related to reclamation costs at the Company s properties. June 30, 2017 September 30, 2016 Reclamation provision, beginning of period/year $ 28,572 $ 29,069 Current period additions (reductions) 52,072 (497) Reclamation provision, end of period/year $ 80,644 $ 28,572 The assumptions used for the calculation of the provision are as follows: June 30, 2017 September 30, 2016 Estimated cash flows to settle the obligations (undiscounted) $ 125,877 $ 44,598 Time range for settling the obligation for all active projects 3 years 3 years Risk adjusted discount rate for all projects 16% 16% 5. SHARE CAPITAL (a) (b) Authorized: Unlimited number of voting common shares Unlimited number of non-voting preferred shares, none issued and outstanding Reconciliation of changes in share capital As at September 30, 2016, the Company had received $100,000 related to a private placement which was completed after the year end. This amount was included as an obligation to issue shares. As at June , these shares have been issued. On October 7, 2016, the Company completed the first tranche of a non-brokered private placement for 3,969,230 shares at a price of $0.1625, for gross proceeds of $645,000. On October 21, 2016, the Company completed the second tranche of a non-brokered private placement for 307,692 shares at a price of $0.1625, for gross proceeds of $50,000. On November 9, 2016, the Company completed the third tranche of a non-brokered private placement for 1,230,768 shares at a price of $0.1625, for gross proceeds of $200,000. On December 13, 2016, the Company completed the fourth tranche of a non-brokered private placement for 307,692 shares at a price of $0.1625, for gross proceeds of $50,000. On December 15, 2016, the Company completed a non-brokered private placement for 1,500,000 shares at a price of $0.065, for gross proceeds of $97,500. On December 16, 2016, the Company completed settlements with certain creditors, four of whom are current directors and/or officers of the Company. In consideration for settlement of accounts payable of $114,173, the Company issued 702,601 common shares of the Company at a deemed price of $ per share. (Note 6) On February 6, 2017, the Company consolidated all of its common shares, of which a total of 72,341,582 were issued, fully paid and currently outstanding, on a [1] for [6.5] basis. The number of common shares outstanding has been adjusted retrospectively to reflect the effect of the reverse share split. 9 P a g e

11 5. SHARE CAPITAL (Cont d) (b) Reconciliation of changes in share capital (Cont d) On March 1, 2017, the Company completed the first tranche of a non-brokered private placement for 7,225,034 units at a price of $0.15 for total gross proceeds of $1,083,755. Each unit is comprised of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional share for $0.40 until August 15, On March 10, 2017, the Company completed the second tranche of a non-brokered private placement for 4,141,667 units at a price of $0.15 for total gross proceeds of $621,250. Each unit is comprised of one common share and one-half of one share purchase warrant. Each whole warrant will entitle the holder to purchase one additional share for $0.40 until August 15, The Company incurred $24,936 in share issue costs related to the private placements which took place between October 7, 2016 and March 10, (c) Stock Options The Company has a share purchase option plan under which directors, officers, employees and consultants of the Company are eligible to receive share purchase options. The aggregate number of shares available to be issued upon the exercise of all share purchase options granted under the plan shall not exceed 10% of the issued and outstanding shares of the Company. The plan limits the maximum number of share purchase options issuable in any one 12-month period to any one optionee to 5% of the total common shares outstanding. The Board of Directors shall determine the terms and provisions of the options at the time of grant. The exercise price of each share purchase option shall not be less than the market price of the common shares on the date of the grant less the discount permitted by the Exchange. The maximum term of share purchase options shall not exceed 10 years or such other term as permitted by the Exchange. A summary of the Company s stock options and the changes for the period ended June 30, 2017 and the year ended September 30, 2016 are as follows: Number of Options Weighted average exercise price As at September 30, $ - Granted 2,240, Expired - - As at June 30, ,240,000 $ 0.15 During the period ended June 30, 2017, the Company granted 2,240,000 stock options to officers, directors, and consultants of the Company. The weighted average grant-date fair value of the stock options granted during the period is $0.13. A summary of the Company s stock options as at June 30, 2017 is as follows: Number Outstanding Exercise Price Expiry Date 2,240,000 $ 0.15 March 13, P a g e

12 5. SHARE CAPITAL (Cont d) (c) Stock Options (Cont d) The weighted average fair value of the stock options granted was determined by using the Black-Scholes option pricing model with the following assumptions: June 30, 2017 September 30, 2016 Risk-free interest rate 1.83% - Estimated volatility 100% - Expected life 10 years - Expected dividend yield 0.00% - Volatility was estimated based on the historical volatility of similar companies over a period equal to the expected life of the options. (d) Share purchase warrants As at June 30, 2017, the Company had outstanding share purchase warrants enabling holders to acquire common shares of the Company as follows: Expiry date Exercise price per share Number August 15, 2018 $0.40 5,683,350 A summary of the Company s share purchase warrants and the changes for the year are as follows: June 30, 2017 Weighted Average Exercise Number Price September 30, 2016 Weighted Average Exercise Number Price Outstanding, beginning of the period/year - $ - - $ - Issued 5,683, Outstanding, end of the period/year 5,683,350 $ $ - 6. RELATED PARTY DISCLOSURES As at June 30, 2017, $Nil (September 30, 2016 $244,514) is due to a director of the Company, which is included in notes payable. The notes payable bear interest at a fixed rate of 2.00% per annum. As at June 30, 2017, $15,331 (September 30, 2016 $84,423), is due to directors and officers of the Company or companies controlled by a director and officers of the Company. During the period ended June 30, 2017, the Company paid consulting fees of $45,418 (June 30, $Nil) to an officer of the Company and companies controlled by an officer and a director of the Company. During the period ended June 30, 2017, the Company paid consulting fees of $22,312 (June 30, $Nil) to a company controlled by officer and a director of the Company. Of these fees, $22,312 (June 30, $Nil) has been capitalized under exploration and evaluation assets as the fees were incurred directly for exploration and evaluation projects. 11 P a g e

13 6. RELATED PARTY DISCLOSURES (Cont d) During the period ended June 30, 2017, the Company completed settlements with certain directors and/or officers of the Company. In consideration for settlement of accounts payable of $77,000, the Company issued 473,846 common shares of the Company at a deemed price of $ per share. (Note 5) 7. SUPPLEMENTAL CASH FLOW INFORMATION The following significant non-cash transactions have been excluded from the condensed interim consolidated statements of cash flows: As at June 30, 2017, exploration and evaluation expenditures incurred of $23,970 (September 30, 2016 $Nil) are included under accounts payable and accrued liabilities. 8. DEFERRED FINANCING COSTS Deferred financing costs at June 30, 2017 are comprised of the following: Legal fees $ 60,077 Filing fees 34,277 Accounting fees 3,250 $ 97, OPERATING SEGMENTS The Company operates in a single business segment, being the exploration and development of mineral properties. During the current period and prior year, all assets were located in two geographic areas as set out below. June 30, 2017 Canada United States Total Current assets $ 1,687,710 $ 74,217 $ 1,761,927 Exploration and evaluation assets - 1,939,851 1,939,851 Reclamation bonds - 125, ,877 $ 1,687,710 $ 2,139,945 $ 3,827,655 September 30, 2016 Canada United States Total Current assets $ 106,972 $ 5,370 $ 112,342 Exploration and evaluation assets - 1,343,818 1,343,818 Reclamation bonds - 44,598 44,598 $ 106,972 $ 1,393,786 $ 1,500, P a g e

14 10. BASIC AND DILUTED LOSS PER SHARE Basic and diluted loss per share is determined by dividing the loss attributable to common shareholders by the weighted average number of common shares outstanding during the reporting period. When determining the weighted average number of common shares outstanding, the Company takes into consideration the effect from the reverse share split which occurred during to the reporting period. Diluted loss per share, which reflects the maximum possible dilution from the potential exercise of warrants and stock options, is the same as basic loss per share for the periods ended June 30, 2017 and June 30, EVENTS AFTER THE REPORTING PERIOD On July 5, 2017, the Company completed its Initial Public Offering ( IPO ) and listing on the TSX Venture Exchange, and trading commenced on July 7, 2017 under the symbol URZ. In connection with the completion of the IPO, the Company issued 3,500,000 units ( Unit ) at a price of $0.15 per Unit for total gross proceeds of $525,000. Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant (each full warrant, a Warrant ). Each Warrant is exercisable to purchase one additional common share of the Company at an exercise price of C$0.40 until August 15, 2018, provided that in the event that the closing price of the Company s common shares on any stock exchange is C$1.00 or greater during any 20 consecutive trading day period, the Company shall be entitled to accelerate the expiry of the Warrants to a date that is 30 days following the date which the Company provides notice to the holders thereof. In consideration of the services provided by the agent in connection with the IPO, the Company has agreed to pay the agent a cash commission equal to 3% of the gross proceeds raised from the IPO. In addition, the agent was paid a corporate finance advisory fee of $80,000. Additionally, on July 5, 2017, the Company completed a private placement of 260,000 units for total gross proceeds of $39,000. Each Unit is comprised of one common share and one-half of one non-transferable common share purchase warrant (each full warrant, a Private Placement Warrant ). Each Private Placement Warrant is exercisable to purchase one additional common share of the Company at an exercise price of C$0.40 until August 15, 2018, provided that in the event that the closing price of the Company s common shares on any stock exchange is C$1.00 or greater during any 20 consecutive trading day period, the Company shall be entitled to accelerate the expiry of the Private Placement Warrants to a date that is 30 days following the date which the Company provides notice to the holders thereof. 13 P a g e