CONSOLIDATED FINANCIAL STATEMENTS OF PROBE METALS INC. FOR THE YEAR ENDED DECEMBER 31, 2016 AND PERIOD FROM JANUARY 16, 2015 TO DECEMBER 31, 2015

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1 CONSOLIDATED FINANCIAL STATEMENTS OF PROBE METALS INC. FOR THE YEAR ENDED DECEMBER 31, 2016 AND PERIOD FROM JANUARY 16, 2015 TO DECEMBER 31, 2015 (EXPRESSED IN CANADIAN DOLLARS)

2 Independent Auditors Report To the Shareholders of : We have audited the accompanying financial statements of, which comprise the consolidated statements of financial position as at, and the consolidated statements of loss and comprehensive loss, cash flows and changes in shareholders equity for the year ended December 31, 2016 and for the period from January 16, 2015 to December 31, 2015, and a summary of significant accounting policies and other explanatory information. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of as at and its financial performance and cash flows for the year ended December 31, 2016 and for the period from January 16, 2015 to December 31, 2015, in accordance with International Financial Reporting Standards. April 5, 2017 Toronto, Ontario Chartered Professional Accountants Licensed Public Accountants

3 Consolidated Statements of Financial Position As at December 31, ASSETS Current assets Cash $ 26,408,679 $ 18,291,230 Trade accounts receivable and other receivables (note 6) 578,303 58,759 Marketable securities (note 7) 3,208,651 - Prepaid expenses 86,320 8,300 Total current assets 30,281,953 18,358,289 Non-current assets Property and equipment (note 8) 485, ,663 Total assets $ 30,767,603 $ 18,480,952 LIABILITIES AND EQUITY Current liabilities Amounts payable and other liabilities (notes 9 and 16) $ 919,776 $ 372,026 Total liabilities 919, ,026 Equity Share capital (note 10) 64,842,934 19,646,406 Warrants (note 11) 5,063,146 - Contributed surplus (note 12) 3,667, ,348 Accumulated deficit (43,725,560) (2,120,828) Total equity 29,847,827 18,108,926 Total liabilities and equity $ 30,767,603 $ 18,480,952 The accompanying notes are an integral part of these consolidated financial statements. Nature of operations (note 1) Commitments (note 17) Subsequent events (note 20) Approved on behalf of the Board: "David Palmer", Director "Gordon McCreary", Director - 2 -

4 Consolidated Statements of Loss and Comprehensive Loss Period from Year January 16, ended 2015 to December 31, December 31, Operating expenses Exploration and evaluation expenditures (note 14) $ 38,163,443 $ 335,770 General and administrative expenses (note 15) 4,873,665 1,918,854 Operating loss before interest income, gain on marketable securities, and property option revenue (43,037,108) (2,254,624) Interest income 150, ,796 Gain on marketable securities (note 7) 812,882 - Property option revenue (note 14(v)(9)) 468,609 - Loss and comprehensive loss for the period $(41,604,732) $ (2,120,828) Basic and diluted loss per share (note 13) $ (0.69) $ (0.07) Weighted average number of common shares outstanding - basic and diluted 60,600,472 29,110,590 The accompanying notes are an integral part of these consolidated financial statements

5 Consolidated Statements of Cash Flows Period from Year January 16, ended 2015 to December 31, December 31, Operating activities: Net loss for the period $(41,604,732) $ (2,120,828) Adjustments for: Share-based payments (note 12(ii)(iii)(iv)) 2,055, ,045 Depreciation (note 8) 18, Accrued interest receivable 18,570 11,648 Mineral property expense for acquisition of Adventure (note 5) 32,927,269 - Shares issued for mineral properties (note 14(iii)(iv)(v)(1)(5)) 1,363,500 - Shares received for mineral properties (note 14(v)(9)) (375,000) - Gain on marketable securities (note 7) (812,882) - Changes in non-cash working capital items: Trade accounts receivable and other receivables (18,736) (70,407) Prepaid expenses (31,638) (8,300) Amounts payable and other liabilities 270, ,026 Net cash used in operating activities (6,187,960) (1,284,704) Investing activities: Purchase of property and equipment (381,977) (122,775) Purchase of marketable securities (1,500,000) - Proceeds from sale of marketable securities 32,016 - Cash acquired from completion of Transaction (note 5) 507,363 - Transaction costs (note 5) (1,065,414) - Net cash used in investing activities (2,408,012) (122,775) Financing activities: Cash acquired from completion of Arrangement - 19,000,000 Proceeds from private placements (note 10(b)(ii)(iii)) 17,549,799 - Share issue costs (1,054,880) - Exercise of warrants 50, ,686 Exercise of stock options 168, ,023 Net cash provided by financing activities 16,713,421 19,698,709 Net change in cash 8,117,449 18,291,230 Cash, beginning of period 18,291,230 - Cash, end of period $ 26,408,679 $ 18,291,230 The accompanying notes are an integral part of these consolidated financial statements

6 Consolidated Statements of Changes in Shareholders' Equity Equity attributable to shareholders Share Contributed Accumulated capital Warrants surplus deficit Total Share issued on incorporation, January 16, 2015 $ 1 $ - $ - $ - $ 1 Shares issued pursuant to completion of Arrangement (note 10(b)(i)) 17,689, ,689,000 Warrants issued pursuant to completion of Arrangement (note 11(i)) - 258, ,000 Stock options issued pursuant to completion of Arrangement (note 12(i)) - - 1,053,000-1,053,000 Share cancelled (1) (1) Exercise of warrants 454,686 (258,000) ,686 Exercise of stock options 1,502,720 - (1,000,697) - 502,023 Share-based payments (note 12(ii)) , ,045 Loss and comprehensive loss (2,120,828) (2,120,828) Balance, December 31, ,646, ,348 (2,120,828) 18,108,926 Shares issued pursuant to completion of the Transaction (note 5) 31,269, ,269,907 Warrants issued pursuant to completion of the Transaction (note 5) - 534, ,000 Stock options issued pursuant to completion of the Transaction (note 5) - - 1,407,000-1,407,000 Private placements (note 10(b)(ii)(iii)) 17,549, ,549,799 Warrants (note 10(b)(iii)) (4,598,000) 4,598, ,762 Shares issue costs (1,054,880) (1,054,880) Exercise of warrants 118,872 (68,854) ,018 Exercise of stock options 547,330 - (378,846) - 168,484 Shares issued for mineral properties (note 14(iii)(iv)(v)(1)(5)) 1,363, ,363,500 Share-based payments (note 12(ii)(iii)(iv)) - - 2,055,805-2,055,805 Loss and comprehensive loss (41,604,732) (41,604,732) Balance, December 31, 2016 $ 64,842,934 $ 5,063,146 $ 3,667,307 $(43,725,560) $ 30,419,589 The accompanying notes are an integral part of these consolidated financial statements

7 1. Nature of Operations (the "Company" or "Probe Metals") was incorporated pursuant to the Business Corporations Act (Ontario) under the name " Ontario Inc." on January 16, Articles of amendment were subsequently filed on February 3, 2015 to change the name of the Company to "". The Company's head office is located at 56 Temperance Street, Suite 1000, Toronto, Ontario, Canada, M5H 3V5. The Company's common shares started trading on the TSX Venture Exchange ("TSXV") on March 17, 2015 under the trading ticker symbol "PRB". The Company, a Canadian precious metal exploration company, was formed following the acquisition of Probe Mines Limited ("Probe") by Goldcorp Inc. ("Goldcorp") pursuant to the arrangement announced on January 19, 2015 (the "Arrangement"). With a strong treasury, the Company is focused on executing a business model namely the acquisition and growth of quality projects through effective exploration and development. On March 13, 2015, Goldcorp and Probe completed the Arrangement. Pursuant to the Arrangement, Goldcorp acquired all of the issued and outstanding common shares of Probe not already held, directly or indirectly, by Goldcorp and Probe became a wholly-owned subsidiary of Goldcorp. Pursuant to the Arrangement, Probe shareholders received for each Probe common share: common shares in Goldcorp and $0.001 in cash, and common shares in the Company. Pursuant to the Arrangement, Probe option holders received for each Probe option: options in Goldcorp, and options in the Company. Pursuant to the Arrangement, Probe warrant holders received for each Probe warrant: warrants in Goldcorp, and warrants in the Company. Pursuant to the Arrangement, Probe transferred to the Company a 100% interest in Probe s Black Creek Property, located in the James Bay Lowlands area of north-western Ontario, 100% interest in Probe's Tamarack-McFauld's Lake Property, located in the James Bay Lowlands area of northern Ontario, 100% interest in Probe's Victory Property, located in the James Bay Lowlands area of northern Ontario, $15 million in cash, a contingent $4 million receivable related to the previous sale of the Goldex mine and trade payables incurred in the normal course of operations of the Company. After completion of the Arrangement, Probe s existing shareholders owned 100% of the Company shares outstanding, proportionate to their ownership of Probe's common shares at the time the Arrangement was completed. On March 13, 2015, the financial year of the Company was changed from April 30 to December 31. On June 10, 2016, Probe Metals completed the plan of arrangement with Adventure Gold Inc. ("Adventure") pursuant to which Probe Metals acquired all of the outstanding shares of Adventure (the "Transaction"). Adventure became a private company following the transaction. Pursuant to the Transaction, Adventure became a wholly-owned subsidiary of Probe Metals. Probe Metals acquired each outstanding common share of Adventure for 0.39 Probe Metals common share and issued an aggregate of 31,585,765 common shares to the former shareholders of Adventure. Pursuant to the completion of the Transaction, Adventure option holders received for each Adventure option: 0.39 options in Probe Metals. Pursuant to the completion of the Transaction, Adventure warrant holders received for each Adventure warrant: 0.39 warrants in Probe Metals. Pursuant to the completion of the Transaction, the Company acquired an additional portfolio of projects in Quebec and Ontario. The acquired portfolio consisted of fifteen (15) properties, the Pascalis, Senore, Beaufor North, Lapaska, Bonnefond North and Megiscane-Tavenir properties, collectively forming the Val-d Or East Project, Detour East and North properties, forming part of the Detour Project, the Casagosic, KLM, Bell-Vezza, Sinclair-Bruneau, Florence and Céré-113 properties, comprising the Casa-Cameron Project and the Granada Extension Project, and three (3) Option and/or Joint Venture ( JV ) properties, the Meunier-144 JV (50/50 JV with Tahoe Resources), the Dubuisson JV with Agnico Eagle Mines Limited ( Agnico ) (46.5% Probe Metals/53.5% Agnico) and the Detour Quebec Option with SOQUEM Inc. ("SOQUEM") (SOQUEM earning 50% interest). Effective July 21, 2016, Probe Metals completed an internal reorganization with its wholly-owned subsidiary, Adventure, pursuant to which Probe Metals amalgamated with Adventure under the Business Corporations Act (Ontario) to continue as The internal reorganization did not affect the existing common shares of Probe Metals held by shareholders. On July 27, 2016 the Company sold its Vezza North, Vezza Extension and Bachelor Extension properties, which were formerly part of the Casa-Cameron Project, to GFK Resources Inc. ("GFK") (note 14(v)(9))

8 2. Significant Accounting Policies Statement of Compliance These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the interpretations issued by the IFRS Interpretations Committee. The consolidated financial statements are presented in Canadian dollars, the Company's functional currency, and have been prepared on a historical cost basis. The consolidated financial statements were authorized for issue by the Board of Directors on April 5, Financial Instruments The Company s financial instruments consist of the following: Financial assets: Cash Trade accounts receivable and other receivables Marketable securities Financial liabilities: Amounts payable and other liabilities Classification: Loans and receivables Loans and receivables Fair value through profit or loss Classification: Other financial liabilities Fair value through profit or loss: Financial assets are classified as fair value through profit or loss when the financial asset is held for trading or it is designated as fair value through profit or loss. A financial asset is classified as held for trading if: (i) it has been acquired principally for the purpose of selling in the near future; or (ii) it is a part of an identified portfolio of financial instruments that the Company manages and has an actual pattern of short-term profit taking. Financial assets classified as fair value through profit or loss are stated at fair value with any gain or loss recognized in the consolidated statement of loss and comprehensive loss. Loans and receivables: Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are initially recognized at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses. Other financial liabilities: Other financial liabilities are recognized initially at fair value net of any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortized cost using the effective interest method. The effective interest method is a method of calculating the amortized cost of a financial instrument and of allocating interest and any transaction costs over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial instrument to the net carrying amount on initial recognition. Other financial liabilities are de-recognized when the obligations are discharged, cancelled or expired

9 2. Significant Accounting Policies (Continued) Financial Instruments (continued) Financial instruments recorded at fair value on the consolidated statements of financial position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels: Level 1 - valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and Level 3 - valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs). Marketable securities are classified as Level 1. Property and Equipment Property and equipment are carried at cost, less accumulated depreciation and accumulated impairment losses. The cost of an item of property and equipment consists of the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located. Depreciation is recognized based on the cost of an item of property and equipment, less its estimated residual value, over its estimated useful life at the following rates: Detail Percentage Method Computer equipment 30% Declining balance Field equipment 30% Declining balance Site building 10% Declining balance Artwork - - Artwork is not amortized since it does not have determinable useful life. An asset's residual value, useful life and depreciation method are reviewed, and adjusted if appropriate, on an annual basis. Exploration and Evaluation Expenditures The Company expenses exploration and evaluation expenditures as incurred. Exploration and evaluation expenditures include acquisition costs of mineral properties, property option payments and evaluation activities. Once a project has been established as commercially viable and technically feasible, related development expenditures are capitalized. This includes costs incurred in preparing the site for mining operations. Capitalization ceases when the mine is capable of commercial production, with the exception of development costs that give rise to a future benefit. Exploration and evaluation expenditures are capitalized if the Company can demonstrate that these expenditures meet the criteria of an identifiable intangible asset. To date, no such exploration and evaluation expenditures have been identified and capitalized

10 2. Significant Accounting Policies (Continued) Provisions A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. If the effect is material, provisions are determined by discounting the expected future cash flows to present value. Flow-through Shares The Company will from time to time, issue flow-through common shares to finance a significant portion of its exploration program. Pursuant to the terms of the flow-through share agreements, these shares transfer the tax deductibility of qualifying resource expenditures to investors. On issuance, the Company bifurcates the flow-through share into i) a flow-through share premium, equal to the estimated premium, if any, investors pay for the flow-through feature, which is recognized as a liability, and ii) share capital. Upon expenditures being incurred, the Company derecognizes the liability and recognizes a premium on flow-through shares to the consolidated of loss and comprehensive loss. Proceeds received from the issuance of flow-through shares are restricted to be used only for Canadian resources property exploration expenditures. The Company may also be subject to a Part XII.6 tax on flow-through proceeds renounced under the Look-back Rule, in accordance with Government of Canada flow-through regulations. When applicable, this tax is accrued as a financial expense until paid. Share-based Payment Transactions The fair value of share options granted to employees is recognized as an expense over the vesting period using the graded vesting method with a corresponding increase in equity. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company. The fair value is measured at the grant date and recognized over the period during which the options vest. The fair value of the options granted is measured using the Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. At each financial position reporting date, the amount recognized as an expense is adjusted to reflect the actual number of share options that are expected to vest. Share-based payments incorporates an expected forfeiture rate of nil. Restoration, Rehabilitation and Environmental Obligations A legal or constructive obligation to incur restoration, rehabilitation and environmental costs may arise when environmental disturbance is caused by the exploration, development or ongoing production of a mineral property interest. Such costs are discounted to their net present value and are provided for and capitalized at the start of each project to the carrying amount of the asset, as soon as the obligation to incur such costs arises. Discount rates using a pretax rate that reflects the time value of money are used to calculate the net present value. These costs are charged against profit or loss over the economic life of the related asset, through amortization using either a unit-of-production or the straight-line method as appropriate. The related liability is adjusted for each period for the unwinding of the discount rate and for changes to the current market-based discount rate, amount or timing of the underlying cash flows needed to settle the obligation

11 2. Significant Accounting Policies (Continued) Income Taxes Income tax expense consists of current and deferred tax expense. Current and deferred tax are recognized in profit or loss except to the extent that they relate to items recognized directly in equity or other comprehensive income. Current tax is recognized and measured at the amount expected to be recovered from or payable to the taxation authorities based on the income tax rates enacted or substantively enacted at the end of the reporting period and includes any adjustment to taxes payable in respect of previous periods. Deferred tax is recognized on any temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable earnings. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized and the liability is settled. The effect of a change in the enacted or substantively enacted tax rates is recognized in net loss and comprehensive loss or in equity depending on the item to which the adjustment relates. Deferred tax assets are recognized to the extent future recovery is probable. At each reporting period end, deferred tax assets are reduced to the extent that it is no longer probable that sufficient taxable earnings will be available to allow all or part of the asset to be recovered. Loss per Share The Company presents basic and diluted loss per share data for its common shares, calculated by dividing the loss attributable to common shareholders of the Company by the weighted average number of common shares outstanding during the period. The treasury stock method is used to arrive at the diluted loss per share, which is determined by adjusting the loss attributable to common shareholders and the weighted average number of common shares outstanding for the effects of all warrants and options outstanding that may add to the total number of common shares. Business Combinations Business combinations are accounted for using the acquisition method of accounting, whereby identifiable assets acquired and liabilities assumed are recorded at fair value as of the date of acquisition with the excess of the purchase price over such fair value recorded as goodwill. If a transaction does not meet the definition of a business combination as per IFRS standards, the transaction is recorded as an acquisition of an asset. Significant Accounting Judgments and Estimates The preparation of these consolidated financial statements requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of expenses during the reporting period. Actual outcomes could differ from these estimates. These consolidated financial statements include estimates that, by their nature, are uncertain. The impacts of such estimates are pervasive throughout the consolidated financial statements, and may require accounting adjustments based on future occurrences. Revisions to accounting estimates are recognized in the period in which the estimate is revised and future periods if the revision affects both current and future periods. 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. Critical accounting estimates Significant assumptions about the future that management has made that could result in a material adjustment to the carrying amounts of assets and liabilities, in the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

12 2. Significant Accounting Policies (Continued) Significant Accounting Judgments and Estimates (continued) Critical accounting estimates (continued) The recoverability of trade accounts receivable and other receivables which are included in the consolidated statements of financial position. Assets carrying values and impairment charges: In the determination of carrying values and impairment charges, management looks at the higher of: recoverable amount; fair value less costs to sell in the case of assets; and significant or prolonged decline of fair value on financial assets indicating impairment. These determinations and their individual assumptions require that management make a decision based on the best available information at each reporting period. Restoration, rehabilitation and environmental obligations: Management determined there were no material restoration, rehabilitation and environmental obligations, based on the facts and circumstances that existed in the current year that would trigger recognition of the provision in accordance with IAS 37, Provision. Management determines the fair value of warrants and stock options using the Black-Scholes option pricing model. Critical accounting judgments Income taxes and recovery of deferred tax assets: The measurement of income taxes payable and deferred income tax assets and liabilities requires management to make judgments in the interpretations and application of the relevant tax laws. The actual amount of income taxes only becomes final upon filing and acceptance of the tax return by the relevant authorities, which occurs subsequent to the issuance of the consolidated financial statements. Restoration, rehabilitation and environmental obligations: Management determined there were no material restoration, rehabilitation and environmental obligations, based on the facts and circumstances that existed in the current and prior years and would trigger recognition of the provision in accordance with IAS 37, Provision. Recent Accounting Pronouncement IFRS 9 Financial Instruments ( IFRS 9 ) was issued by the IASB in July 2014 and will replace IAS 39 - Financial Instruments: Recognition and Measurement ( IAS 39 ). IFRS 9 uses a single approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the multiple rules in IAS 39. The approach in IFRS 9 is based on how an entity manages its financial instruments in the context of its business model and the contractual cash flow characteristics of the financial assets. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged to IFRS 9. The new standard also requires a single impairment method to be used, replacing the multiple impairment methods in IAS 39. IFRS 9 will be effective for annual periods beginning on or after January 1, The Company is in the process of assessing the impact of this pronouncement. IFRS 16 - Leases ( IFRS 16 ) was issued on January 13, 2016 to require lessees to recognize assets and liabilities for most leases. For lessors, there is little change to the existing accounting in IAS 17 - Leases. The IASB issued its standard as part of a joint project with the Financial Accounting Standards Board ("FASB"). The FASB has not yet issued its new standard, but it is also expected to require lessees to recognize most leases on their statement of financial position. The new standard will be effective for annual periods beginning on or after January 1, Early application is permitted, provided the new revenue standard, IFRS 15 - Revenue from Contracts with Customers, has been applied, or is applied at the same date as IFRS 16. The Company is in the process of assessing the impact of this pronouncement

13 3. Capital Risk Management The Company manages its capital with the following objectives: to ensure sufficient financial flexibility to achieve the ongoing business objectives including funding of future growth opportunities, and pursuit of accretive acquisitions; and to maximize shareholder return. The Company monitors its capital structure and makes adjustments according to market conditions in an effort to meet its objectives given the current outlook of the business and industry in general. The Company may manage its capital structure by issuing new shares, repurchasing outstanding shares, adjusting capital spending, or disposing of assets. The capital structure is reviewed by management and the Board of Directors on an ongoing basis. The Company's ability to continue to carry out its planned exploration activities is uncertain and dependent upon securing additional financing. The Company considers its capital to be equity which at December 31, 2016, totaled $29,847,827. The Company manages capital through its financial and operational forecasting processes. The Company reviews its working capital and forecasts its future cash flows based on operating expenditures, and other investing and financing activities. The forecast is updated based on activities related to its mineral properties. The Company's capital management objectives, policies and processes have remained unchanged during the year ended December 31, The Company is not subject to any capital requirements imposed by a lending institution or regulatory body, other than the flow-through contractual obligations (refer to note 17(ii)) and Policy 2.5 of the TSXV which requires adequate working capital or financial resources of the greater of (i) $50,000 and (ii) an amount required in order to maintain operations and cover general and administrative expenses for a period of 6 months. As of December 31, 2016, the Company is compliant with Policy Financial Risk Management Financial risk The Company's activities expose it to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate, foreign currency risk and price risk). Risk management is carried out by the Company's management team with guidance from the Audit Committee and Board of Directors. The Board of Directors also provides regular guidance for overall risk management. (i) Credit risk Credit risk is the risk of loss associated with a counterparty s inability to fulfill its payment obligations. Amounts receivable consists mainly of receivable from SOQUEM and accrued interest receivable. Amounts receivable are in good standing as of December 31, Management believes that the credit risk with respect to these amounts receivable is minimal. (ii) Liquidity risk The Company's approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. As at December 31, 2016, the Company had cash of $26,408,679, to settle current liabilities of $919,776. All of the Company's financial liabilities have contractual maturities of less than 30 days and are subject to normal trade terms

14 4. Financial Risk Management (Continued) Financial risk (continued) (iii) Market risk Market risk is the risk of loss that may arise from changes in market factors such as interest rates, foreign exchange rates and quoted prices. (a) Interest rate risk The Company has $26,408,679 cash balances and no interest-bearing debt and was not exposed to interest rate risk. The Company's current policy is to invest excess cash in high yield savings accounts and guaranteed investment certificates issued by a Canadian chartered bank with which it keeps its bank accounts. The Company periodically monitors the investments it makes and is satisfied with the creditworthiness of its Canadian chartered bank. As a result, the Company's exposure to interest rate risk is minimal. (b) Foreign currency risk The Company does not have any significant assets in currency other than the functional currency of the Company, nor has significant foreign currency denominated liabilities, therefore any changes in foreign exchange rates will not give rise to significant changes to the net loss. (c) Price risk The Company is exposed to price risk with respect to equity prices and commodity prices. Equity price risk is defined as the potential adverse impact on the Company s loss due to movements in individual equity prices or general movements in the level of stock market. Commodity price risk is defined as the potential adverse impact and economic value due to commodity price movements and volatilities. Sensitivity analysis The Company's marketable securities are denominated in Canadian dollars and are subject to fair value fluctuations. As at December 31, 2016, if the fair value of the Company's marketable securities had increased/decreased by 10% with all other variables held constant, profit and loss for the year ended December 31, 2016, would have been approximately $320,000 lower/higher. Similarly, as at December 31, 2016, the Company's reported shareholders' equity would have been approximately $320,000 higher/lower as a result of a 10% increase/decrease in marketable securities. 5. Acquisition of Adventure In accordance with IFRS 3 - Business Combinations, the Transaction does not meet the definition of a business combination as Adventure has not yet commenced principal operations and is in the exploration stage. Consequently, the transaction has been recorded as an acquisition of an asset. Probe Metals acquired each outstanding Adventure common shares in exchange for 0.39 of a Probe Metals share. The Board of Directors of each company has unanimously approved the Transaction. As a result of the Transaction at the closing, Probe Metals issued 31,585,765 common shares valued at $0.99 per share, as consideration of $31,269,907. Consideration for the Transaction also included the fair value of Adventure's replacement warrants and stock options of $534,000 and $1,407,000 respectively, based on the Black-Scholes option pricing model

15 5. Acquisition of Adventure (Continued) Purchase Price Consideration 31,585,765 common shares of Probe Metals (1) $ 31,269, ,151 warrants of Probe Metals (2) 534,000 1,519,050 stock options of Probe Metals (3) 1,407,000 Transaction related costs 1,065,414 Total $ 34,276,321 Net Assets Acquired (Fair Value) Cash $ 507,363 Trade accounts receivable and other receivables 519,378 Marketable securities 552,785 Prepaid expenses 46,382 Mining properties (note 14(v)) 32,927,269 Amounts payable and other liabilities (276,856) Total net assets $ 34,276,321 (1) For the purpose of determining the fair value of the purchase price consideration, the 31,585,765 common shares of Probe Metals were valued at $0.99. (2) The fair value of Probe Metals warrants was estimated using the using the Black-Scholes option pricing model with the following assumptions: share price of $0.99; exercise price of $0.51 to $1.15; expected dividend yield of 0%; riskfree interest rate of 0.50%; volatility of 135% to 137% and an expected life of 0.90 to 1.45 years. (3) The fair value of Probe Metals stock options was estimated using the using the Black-Scholes option pricing model with the following assumptions: share price of $0.99; exercise price of $0.26 to $1.36; expected dividend yield of 0%; risk-free interest rate of 0.56% to 0.87%; volatility of 125% to 131% and an expected life of 4.5 to 8.78 years. 6. Trade Accounts Receivable and Other Receivables As at December 31, Sales tax receivable - (Canada) $ 388,378 $ 47,111 Accounts receivable 34,936 - Accrued interest receivable 18,570 11,648 Mining tax receivable 74,869 - Tax credit related to resources receivable 61,550 - $ 578,303 $ 58, Marketable Securities Number of Unrealized Fair market December 31, 2016 shares Cost (loss)/income value Agnico 5,000 $ 324,850 $ (42,900) $ 281,950 GFK 5,000, ,000 (105,000) 450,000 QMX Gold Corporation ("QMX") 15,000,000 1,500, ,000 2,475,000 RT Minerals Corp. ("RTM") 21,250 4,676 (2,975) 1,701 $ 2,384,526 $ 824,125 $ 3,208,

16 7. Marketable Securities (Continued) During the year ended December 31, 2016, the Company sold 786,500 shares ( nil shares) of a public company for gross proceeds of $32,016 ( $nil) and recorded realized loss on marketable securities of $11,243 ( $nil) in the consolidated statements of loss and comprehensive loss. During the year ended December 31, 2016, the Company recorded an unrealized gain on marketable securities of $824,125 ( $nil) in the consolidated statements of loss and comprehensive loss. 8. Property and Equipment Computer Field Site Cost Artwork equipment equipment building Total Balance, January 16, 2015 $ - $ - $ - $ - $ - Additions 121, ,775 Balance, December 31, , ,775 Additions - 22,346 72, , ,977 Balance, December 31, 2016 $ 121,776 $ 23,345 $ 72,044 $ 287,587 $ 504,752 Computer Field Site Accumulated depreciation Artwork equipment equipment building Total Balance, January 16, 2015 $ - $ - $ - $ - $ - Depreciation during the period Balance, December 31, Depreciation during the year - 1,704 6,502 10,784 18,990 Balance, December 31, 2016 $ - $ 1,816 $ 6,502 $ 10,784 $ 19,102 Computer Field Site Carrying value Artwork equipment equipment building Total Balance, December 31, 2015 $ 121,776 $ 887 $ - $ - $ 122,663 Balance, December 31, 2016 $ 121,776 $ 21,529 $ 65,542 $ 276,803 $ 485, Amounts Payable and Other Liabilities As at December 31, Amounts payables $ 233,797 $ 74,051 Accrued liabilities 685, ,975 $ 919,776 $ 372,

17 10. Share Capital a) Authorized share capital The authorized share capital consists of an unlimited number of common shares. The common shares do not have a par value. All issued shares are fully paid. b) Common shares issued As at December 31, 2016 the issued share capital amounted to $64,842,934. Changes in issued share capital are as follows: Number of common shares Amount Share issued on incorporation, January 16, $ 1 Shares issued pursuant to completion of Arrangement (i) 31,368,363 17,689,000 Share cancelled (1) (1) Exercise of warrants 936, ,686 Exercise of stock options 2,609,334 1,502,720 Balance, December 31, ,914,205 19,646,406 Shares issued pursuant to completion of the Transaction (note 5) 31,585,765 31,269,907 Private placements (ii)(iii) 17,600,000 17,549,799 Warrants (iii) - (4,598,000) Share issue costs - (1,054,880) Shares issued for mineral properties (note 14(iii)(iv)(v)(1)(5)) 1,200,000 1,363,500 Exercise of warrants 97, ,872 Exercise of stock options 458, ,330 Balance, December 31, ,856,406 $ 64,842,934 (i) On March 13, 2015, pursuant to the Arrangement, the Company's shareholders received 31,368,363 common shares of the Company. Refer to note 1. (ii) On June 10, 2016, the Company completed a private placement financing (the "Offering") which raised gross proceeds of $2,904,000. The Offering consisted of the sale of 4,400,000 common shares at a price of $0.66 per common share. Goldcorp purchased all 4,400,000 common shares. The Company also granted Goldcorp the right to maintain its pro rata ownership percentage during future financings and the right to participate in any future equity financings to the extent required to allow Goldcorp to increase its equity ownership interest in the Company to a maximum of 19.9% of the issued and outstanding common shares. Such right shall extinguish if Goldcorp ceases to beneficially own at least 7.5% of the issued and outstanding common shares of Probe Metals. (iii) On August 17, 2016, Probe Metals completed a brokered private placement of 13,200,000 units of the Company for aggregate gross proceeds of $14,645,799 (the "Financing"), which included the exercise, in full, of the agents option to purchase additional units. The Financing consisted of the sale of 3,829,069 flow-through units of the Company (the "FT Units") at an average price of $1.50 per FT Unit and 9,370,931 non-ft Units (the "HD Units" and together with the FT Units, the "Units") at a price of $0.95 per HD Unit. Each Unit consisted of one common share in the capital stock of the Company and one-half (½) of one common share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to purchase one additional common share of the Company at a price of $1.75 per share for a period of 18 months from the closing date of the Financing. The securities comprising the FT Units are "flow-through shares" as defined in subsection 66(15) of the Income Tax Act (Canada)

18 10. Share Capital (continued) b) Common shares issued (continued) (iii) (continued) The fair value of the 6,600,000 Warrants was calculated to be $4,598,000 using the Black-Scholes option pricing model with the following assumptions: share price of $1.34; dividend yield of 0%; expected volatility of %; risk-free interest rate of 0.56% and an expected average life of 18 months. A cash commission equal to 6% of the gross proceeds of Units placed by the agents pursuant to the Financing was paid to the agents ($774,241). Other share issue costs amounted to $262,576. The FT Units issued in the Financing were issued at a premium to the market price in recognition of the tax benefits accruing to subscribers. The flow-through premium was calculated to be $nil. 11. Warrants Number of warrants Grant date fair value Warrants issued pursuant to completion of Arrangement (i) 936,508 $ 258,000 Exercise of warrants (936,508) (258,000) Balance, December 31, Warrants issued pursuant to completion of the Transaction (note 5) 783, ,000 Issued (note 10(b)(iii)) 6,600,000 4,598,000 Exercised (97,500) (68,854) Balance, December 31, ,285,651 $ 5,063,146 (i) On March 13, 2015, pursuant to the Arrangement, the Company's warrant holders received 936,508 warrants of the Company. The fair value of these warrants was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price of $0.425; exercise price of $0.21; expected dividend yield of 0%; risk-free interest rate of 0.54%; volatility of 273% and an expected life of 0.21 years. The fair value assigned to these warrants was $258,000. The following table reflects the warrants issued and outstanding as of December 31, 2016: Exercise Warrants Expiry date price ($) outstanding Valuation ($) May 4, ,620 52,000 November 23, , ,146 February 17, ,600,000 4,598,000 7,285,651 5,063,

19 12. Stock Options Number of stock options Weighted average exercise price Stock options issued pursuant to completion of Arrangement (i) 2,745,712 $ 0.19 Exercise of stock options (2,609,334) 0.19 Stock options granted (ii) 2,400, Balance, December 31, ,536, Stock options issued pursuant to completion of the Transaction (note 5) 1,519, Stock options granted (iii)(iv) 3,080, Exercise of stock options (458,936) 0.37 Balance, December 31, ,676,492 $ 0.93 (i) On March 13, 2015, pursuant to the Arrangement, the Company's stockholders received 2,745,712 stock options of the Company. The stock options vested immediately. The fair value of these options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price of $0.425; exercise price of $0.04 to $0.28; expected dividend yield of 0%; risk-free interest rate of 0.54% to 0.68%; volatility of 156% to 286% and an expected life of 0.8 to 4.77 years. The fair value assigned to these options was $1,053,000. (ii) On April 27, 2015, 2,400,000 stock options were granted to employees, consultants, officers and directors of the Company at an exercise price of $0.36 per share, expiring April 27, Vesting of the stock options is as follows: one-third immediately, one-third after one year and one-third after two years. The fair value of these options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price of $0.42; expected dividend yield of 0%; risk-free interest rate of 0.87%; volatility of 159% and an expected life of 5 years. The fair value assigned to these options was $789,000. For year ended December 31, 2016, the impact on the consolidated statement of loss and comprehensive loss was $216,164 (period from January 16, 2015 to December 31, $531,045). (iii) On September 1, 2016, 2,980,000 stock options were granted to employees, consultants, officers and directors of the Company at an exercise price of $1.50 per share, expiring September 1, Vesting of the stock options is as follows: one-third immediately, one-third after one year and one-third after two years. The fair value of these options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price of $1.40; expected dividend yield of 0%; risk-free interest rate of 0.64%; volatility of 130% and an expected life of 5 years. The fair value assigned to these options was $3,553,000. For the year ended December 31, 2016, the impact on the consolidated statement of loss and comprehensive loss was $1,773,255 (period from January 16, 2015 to December 31, $nil)

20 12. Stock Options (Continued) (iv) On September 9, 2016, 100,000 stock options were granted to First Nations at an exercise price of $1.76 per share, expiring September 9, Refer to note 14(iv). Vesting of the stock options is as follows: one-fourth on the TSXV approval of the Memorandum of Understanding ("MOU"), one-fourth after six months, twelve months and eighteen months of the anniversary of the MOU. The fair value of these options was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: share price of $1.90; expected dividend yield of 0%; risk-free interest rate of 0.71%; volatility of 130% and an expected life of 5 years. The fair value assigned to these options was $164,000. For the year ended December 31, 2016, the impact on the consolidated statement of loss and comprehensive loss was $66,386 (period from January 16, 2015 to December 31, $nil). The following table reflects the actual stock options issued and outstanding as of December 31, 2016: Weighted average remaining Exercise Options contractual Options Expiry date price ($) outstanding life (years) exercisable Valuation ($) December 5, , ,333 3,381 May 31, , ,749 3,473 May 16, , ,999 7,920 December 18, , ,777 7,021 April 27, ,383, ,583, ,521 December 8, , , ,000 September 1, ,980, ,986,667 3,553,000 September 9, , , ,000 February 26, , , ,727 February 14, , , ,948 March 19, , , ,466 6,676, ,808,159 5,586, Net Loss Per Share The calculation of basic and diluted loss per share for the year ended December 31, 2016 was based on the loss attributable to common shareholders of $41,604,732 (period from January 16, 2015 to December 31, $2,120,828) and the weighted average number of common shares outstanding of 60,600,472 (period from January 16, 2015 to December 31, ,110,590). Diluted loss per share did not include the effect of stock options and warrants as they are anti-dilutive

21 14. Exploration and Evaluation Expenditures Period from Year January 16, ended 2015 to December 31, December 31, Transaction properties (note 5) Val-d'Or East Project (v) $25,618,796 $ - Detour Project (v) 8,917,722 - Casa-Cameron Project (v) 642,653 - Granada Extension Project (v) 960,386 - Option and/or JV properties (v) 42,980 - $36,182,537 $ - Arrangement properties (note 1) Black Creek Property $ 3,344 $ 41,961 Tamarack-McFauld's Lake Property 70,526 28,852 Victory Property - 7,801 $ 73,870 $ 78,614 Acquired properties West Porcupine Property (i)(ii)(iii)(iv) $ 1,842,684 $ - Other Project Generation $ 64,352 $ 257,156 Exploration and evaluation expenditures $38,163,443 $ 335,770 (i) On February 25, 2016, the Company announced that it had acquired 100% of the West Porcupine Property held by White Metal Resources Corp. ("White Metal"). The West Porcupine Property represents a land package of approximately 30 square kilometres and is located between Goldcorp's Borden Gold project and the town of Timmins, Ontario. Under the terms of the agreement, White Metal received a cash payment of $120,000 in exchange for 100% ownership of the West Porcupine Property. White Metal will maintain a 1% net smelter return royalty ("NSR") over the West Porcupine Property, which can be purchased by the Company, at any time, for $1 million. (ii) On February 29, 2016, the Company announced that it had acquired a 100% undivided interest in the Ross Property comprising 15 mining claims. The 17 square kilometre property represents the northern extension to the newly acquired West Porcupine Property. Under the term of the agreement, the vendors received a cash payment of $60,000 in exchange for 100% ownership of the property. The vendors will maintain a 2% NSR, which can be purchased by the Company, at any time, for $3 million