DIGATRADE FINANCIAL
CORP.

(formerly “Bit-X Financial Corporation”)





December 31, 2016 and
2015



(Expressed in Canadian Dollars)





Consolidated Financial
Statements

























|                                                               | Page
|-------------------------------------------------------------- | ----
|                                                               |     
|Management’s Responsibility for Financial Reporting            | 2   
|                                                               |     
|Independent Auditors’ Report                                   | 3   
|                                                               |     
|Consolidated Statements of Financial Position                  | 4   
|                                                               |     
|Consolidated Statements of Changes in Shareholders’ Deficiency | 5   
|                                                               |     
|Consolidated Statements of Comprehensive Loss                  | 6   
|                                                               |     
|Consolidated Statements of Cash Flows                          | 7   
|                                                               |     
|Notes to the Consolidated Financial Statements                 | 8   









Management’s Responsibility for
Financial Reporting




These consolidated financial statements have
been prepared by and are the responsibility of the management of the Company. The consolidated financial statements have been prepared
in accordance with International Financial Reporting Standards, using management’s best estimates and judgments based on
currently available information. When alternative accounting methods exist, management has chosen those it considers most appropriate
in the circumstances.



The Company maintains an appropriate system
of internal controls to provide reasonable assurance that financial information is accurate and reliable and that the Company’s
assets are appropriately accounted for and adequately safeguarded.



The Company’s independent auditors, WDM
Chartered Professional Accountants, were appointed by the shareholders to conduct an audit in accordance with generally accepted
auditing standards in Canada and the Public Company Accounting Oversight Board (United States) and their report follows.







“Bradley J. Moynes”

Bradley J. Moynes

President, CEO and Director



“Tyrone Docherty”

Tyrone Docherty

Director



2





Independent Auditors’ Report




To the Shareholders of:

DIGATRADE FINANCIAL
CORP.

(formerly “Bit-X
Financial Corporation”)



We have audited the accompanying consolidated
financial statements of Digatrade Financial Corp. and its subsidiaries, which comprise the consolidated statements of financial
position as at December 31, 2016 and 2015, the consolidated statements of changes in shareholders’ deficiency, comprehensive
loss, and cash flows for the years ended December 31, 2016, 2015, and 2014, and a summary of significant accounting policies and
other explanatory information.



Management's Responsibility for the
Consolidated Financial Statements

Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards
as issued by the International Accounting Standards Board and for such internal control as management determines is necessary to
enable the preparation of consolidated 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 and the standards of the Public Company Accounting Oversight Board (United States). Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.



An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internals control relevant to the entity's
preparation and fair presentation of the consolidated 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 controls.
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 consolidated 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 Digatrade Financial Corp. and its subsidiaries as
at December 31, 2016 and 2015, and their financial performance and their cash flows for the years ended December 31, 2016, 2015,
and 2014, in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.



Emphasis of Matter – Going
Concern

In forming our opinion, which is not qualified,
we have considered the adequacy of the disclosures made in Note 1 to the consolidated financial statements concerning the ability
of Digatrade Financial Corp. and its subsidiaries to continue as a going concern. The company incurred a net loss of $172,969 during
the year ended December 31, 2016, and as of that date, had accumulated losses of $4,501,596 since inception and working capital
deficiency of $350,388. These conditions, along with the other matters explained in Note 1 to the consolidated financial statements,
indicate the existence of material uncertainties that raise substantial doubt about the company’s ability to continue as
a going concern. The financial statements do not include the adjustments that would result if Digatrade Financial Corp. and its
subsidiaries were unable to continue as a going concern.





WDM

Chartered Professional Accountants



Vancouver, B.C., Canada

April 28, 2017

3





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Consolidated Statements of Financial Position

(Expressed in Canadian Dollars)



|                                   | Note | December 31, 2016 | December 31, 2015
|---------------------------------- | ---- | ----------------- | -----------------
|                                   |      | $                 | $                
|ASSETS                             |      |                   |                  
|                                   |      |                   |                  
|CURRENT                            |      |                   |                  
|Cash at Bank                       |      | 114,488           | -                
|Accounts Receivable                | 5    | 15,864            | 51,019           
|GST Recoverable                    |      | 2,372             | 2,938            
|Prepaid Expenses                   |      | 6,001             | 12,943           
|                                   |      |                   |                  
|                                   |      | 138,725           | 66,900           
|NON-CURRENT                        |      |                   |                  
|Property and Equipment             | 6    | -                 | 432              
|                                   |      |                   |                  
|                                   |      | 138,725           | 67,332           
|                                   |      |                   |                  
|LIABILITIES                        |      |                   |                  
|                                   |      |                   |                  
|CURRENT                            |      |                   |                  
|Bank Indebtedness                  |      | -                 | 24               
|Trade and Other Payables           | 8    | 254,197           | 328,518          
|Liabilities to Customers           | 9    | 10,319            | 42,747           
|Promissory Notes – Current Portion | 10   | 224,597           | 639,824          
|                                   |      |                   |                  
|                                   |      | 489,113           | 1,011,113        
|                                   |      |                   |                  
|Promissory Notes                   | 10   | 170,776           | -                
|                                   |      |                   |                  
|Total Liabilities                  |      | 659,889           | 1,011,113        
|                                   |      |                   |                  
|SHAREHOLDERS' DEFICIENCY           |      |                   |                  
|                                   |      |                   |                  
|Share Capital                      | 11   | 3,645,457         | 3,358,848        
|Share Subscriptions Received       | 11   | 334,975           | 25,998           
|Deficit                            |      | (4,501,596)       | (4,328,627)      
|                                   |      |                   |                  
|                                   |      | (521,164)         | (943,781)        
|                                   |      |                   |                  
|                                   |      | 138,725           | 67,332           



Nature and Continuance of Operations (Note 1)

Subsequent Events (Note 18)







The accompanying notes are an integral part of these consolidated
financial statements.





Approved on behalf of the Board:



|“Bradley J. Moynes”                                                       |  | “Tyrone Docherty”               
|------------------------------------------------------------------------- |  | --------------------------------
|Bradley J. Moynes
        President, Chief Executive Officer and Director |  | Tyrone Docherty
        Director

4





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Consolidated Statements of Changes in Shareholders’
Deficiency

For the Years Ended December 31, 2016, 2015,
and 2014

(Expressed in Canadian Dollars)



|                                                     | Note          | Number of Post-Consolidation  Common Shares | Share
        Capital | Share Subscriptions
        Received | Share Purchase Warrant
        Reserve | Deficit     | Total Shareholders’ Deficit
|---------------------------------------------------- | ------------- | ------------------------------------------- | --------------------- | ------------------------------------ | -------------------------------------- | ----------- | ---------------------------
|                                                     |               |                                             | $                     | $                                    | $                                      | $           | $                          
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Balance, December 31, 2013                           |               | 1,060,650                                   | 3,178,514             | -                                    | 276,310                                | (3,813,360) | (358,536)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Shares Issued in Settlement of Debts                 | 11(b)(i)      | 560,000                                     | 56,000                | -                                    | -                                      | -           | 56,000                     
|Shares Held in Escrow                                | 11(e)         | 1,500                                       | 7,334                 | -                                    | -                                      | -           | 7,334                      
|Fair Value of Share Rights Expired                   |               | -                                           | -                     | -                                    | (257,710)                              | 257,710     | -                          
|Net Comprehensive Loss                               |               | -                                           | -                     | -                                    | -                                      | (234,144)   | (234,144)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Balance, December 31, 2014                           |               | 1,622,150                                   | 3,241,848             | -                                    | 18,600                                 | (3,789,794) | (529,346)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Share Issued for Cash                                | 11(b)(ii)     | 5,000                                       | 32,000                | 25,998                               | -                                      | -           | 57,998                     
|Shares Issued for Services                           | 11(c)(i)      | 34,000                                      | 85,000                | -                                    | -                                      | -           | 85,000                     
|Fair Value of Share Rights Expired                   | 11(d)         | -                                           | -                     | -                                    | (18,600)                               | 18,600      | -                          
|Net Comprehensive Loss                               |               | -                                           | -                     | -                                    | -                                      | (557,433)   | (557,433)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Balance, December 31, 2015                           |               | 1,661,150                                   | 3,358,848             | 25,998                               | -                                      | (4,328,627) | (943,781)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Shares Issued in Settlement of Debts                 | 11(b)(iv),(v) | 41,000,000                                  | 276,983               | -                                    | -                                      | -           | 276,983                    
|Shares Issued for Services                           | 11(c)(ii)     | 250,000                                     | 15,000                | -                                    | -                                      | -           | 15,000                     
|Shares Held in Escrow and Returned to Treasury       | 11(e)         | (1,500)                                     | (5,374)               | -                                    | -                                      | -           | (5,374)                    
|Shares Subscriptions Received, Net of Issuance Costs | 11(b)(vi)     | -                                           | -                     | 308,977                              | -                                      | -           | 308,977                    
|Net Comprehensive Loss                               |               | -                                           | -                     | -                                    | -                                      | (172,969)   | (172,969)                  
|                                                     |               |                                             |                       |                                      |                                        |             |                            
|Balance, December 31, 2016                           |               | 42,909,650                                  | 3,645,457             | 334,975                              | -                                      | (4,501,596) | (521,164)                  



Share Consolidation (Note 11(b)(iii))



The accompanying notes are an integral part of these
consolidated financial statements.

5





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Consolidated Statements of Comprehensive Loss

For the Years Ended December 31, 2016, 2015, and 2014

(Expressed in Canadian Dollars)




|                                              | Note            | 2016       | 2015      | 2014     
|--------------------------------------------- | --------------- | ---------- | --------- | ---------
|                                              |                 | $          | $         | $        
|EXPENSES                                      |                 |            |           |          
|                                              |                 |            |           |          
|Accounting, Audit, and Legal                  |                 | 46,523     | 36,084    | 18,050   
|Consulting                                    | 14(b)(ii),(iii) | 86,149     | 75,735    | 60,000   
|Depreciation                                  |                 | 432        | 173       | 245      
|Exchange Platform Development Costs           | 18              | 111,734    | 216,315   | -        
|Filing and Transfer Agent Fees                |                 | 12,816     | 11,720    | 8,295    
|Interest and Bank Charges                     |                 | 29,559     | 906       | 4,672    
|Investor Relations                            | 11(c)(i)        | -          | 94,072    | -        
|Management Fees                               | 14(b)(i)        | 60,000     | 60,000    | 60,000   
|Office Expenses, Rent, and Telephone          |                 | -          | 6,892     | 950      
|Property Investigation                        |                 | -          | -         | 2,500    
|                                              |                 |            |           |          
|                                              |                 | 347,213    | 501,897   | 154,712  
|                                              |                 |            |           |          
|LOSS BEFORE OTHER ITEMS                       |                 | (347,213)  | (501,897) | (154,712)
|                                              |                 |            |           |          
|Foreign Exchange Gain (Loss)                  |                 | 13,238     | (55,536)  | (14,005) 
|Coin Development Fee Income                   |                 | 119,600    | -         | -        
|Gain on Settlement of Debts                   | 11(b)(v)        | 41,406     | -         | 42,626   
|Write-Off of Oil and Gas Property             | 7               | -          | -         | (108,053)
|                                              |                 |            |           |          
|NET LOSS FOR THE YEAR                         |                 | (172,969)  | (557,433) | (234,144)
|                                              |                 |            |           |          
|Other Comprehensive Income                    |                 | -          | -         | -        
|                                              |                 |            |           |          
|NET COMPREHENSIVE LOSS
        FOR THE YEAR   |                 | (172,969)  | (557,433) | (234,144)
|                                              |                 |            |           |          
|                                              |                 |            |           |          
|POST-SHARE CONSOLIDATION                      | 11(b)(iii)      |            |           |          
|                                              |                 |            |           |          
|Basic and Diluted Loss per Share              |                 | (0.01)     | (0.34)    | (0.22)   
|                                              |                 |            |           |          
|Weighted Average Number of Shares Outstanding |                 | 13,620,813 | 1,636,518 | 1,055,164
|                                              |                 |            |           |          



The accompanying notes are an integral part of these consolidated
financial statements.

6





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2016, 2015, and 2014

(Expressed in Canadian Dollars)



|                                                  | Note           | 2016      | 2015      | 2014     
|------------------------------------------------- | -------------- | --------- | --------- | ---------
|                                                  |                | $         | $         | $        
|Cash Provided BY (USED IN):                       |                |           |           |          
|                                                  |                |           |           |          
|OPERATING ACTIVITIES                              |                |           |           |          
|                                                  |                |           |           |          
|Net Loss for the Year                             |                | (172,969) | (557,433) | (234,144)
|                                                  |                |           |           |          
|Non-Cash Items                                    |                |           |           |          
|Depreciation                                      |                | 432       | 173       | 245      
|Expenses Paid by An Arm’s Length Party            |                | 8,569     | -         | -        
|Shares Issued for Services                        | 11(c)(i),(ii)  | 15,000    | 85,000    | -        
|Unrealized Foreign Exchange (Gain) Loss           |                | (15,873)  | 56,822    | -        
|Amortization of Prepaid Expenses                  |                | 10,029    | -         | -        
|Gain on Settlement of Debts                       | 11(b)(v)       | (41,406)  | -         | (42,626) 
|Write-Off of Oil and Gas Property                 | 7              | -         | -         | 108,053  
|                                                  |                |           |           |          
|                                                  |                | (196,218) | (415,438) | (168,472)
|                                                  |                |           |           |          
|Change in Non-Cash Working Capital Accounts       | 13(a)          | (75,969)  | 75,918    | 34,554   
|                                                  |                |           |           |          
|                                                  |                | (272,187) | (339,520) | (133,918)
|                                                  |                |           |           |          
|FINANCING ACTIVITIES                              |                |           |           |          
|                                                  |                |           |           |          
|Shares Issued for Cash                            | 11(b)(ii)      | -         | 32,000    | -        
|Shares Subscriptions Received                     | 11(b)(ii),(vi) | 334,975   | 25,998    | -        
|Shares Returned to Treasury                       | 11(e)          | (5,374)   | -         | -        
|Issuance of Promissory Notes                      | 10             | 57,098    | 281,638   | 127,024  
|                                                  |                |           |           |          
|                                                  |                | 386,699   | 339,636   | 127,024  
|                                                  |                |           |           |          
|INCREASE (DECREASE) IN CASH                       |                | 114,512   | 116       | (6,894)  
|                                                  |                |           |           |          
|(Bank Indebtedness) Cash, Beginning of the Year   |                | (24)      | (140)     | 6,754    
|                                                  |                |           |           |          
|(BANK INDEBTEDNESS) CASH,
        End of the yeaR |                | 114,488   | (24)      | (140)    



Supplemental Cash Flow Information (Note 13)





The accompanying notes are an integral part of these consolidated
financial statements.



.

7







DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 1 – NATURE AND CONTINUANCE
OF OPERATIONS



The Company was incorporated on December
28, 2000, under the Company Act of the Province of British Columbia, Canada. On February 19, 2015, the Company changed its name
from Rainchief Energy Inc. to Bit-X Financial Corporation. On October 27, 2015, the Company changed its name from Bit-X Financial
Corporation to Digatrade Financial Corp. The Company is focused on developing and branding a digital asset exchange platform and
peer to peer electronic payment processing network that will allow customers to create their own branded digital assets and list
them on the Digatrade platform.



In March 2015, the Company entered
into an agreement with Mega Ideas Holdings Limited, dba ANX (“ANX”), a company incorporated and existing under the
laws of Hong Kong. ANX owns and operates a technology platform and provides operational support specializing in web-based digital
currency exchange and transaction services for the cryptographic digital currencies known as Bitcoin and other alternative digital
assets along with blockchain development services and distributed ledger technology.



This services agreement is in line
with the Company’s business model restructuring which is to focus on licensing, developing and branding a digital exchange
trading platform and peer-to-peer electronic payment processing network.



Prior to 2015, the Company was engaged
in identifying, financing, and developing oil and gas energy resource properties in North America (Note 7). Prior to 2012, the
Company was engaged in the financing and development of photovoltaic solar energy projects in Europe.



The head office, principal address,
and records office of the Company are located at 1500 West Georgia Street, Suite 1300, Vancouver, British Columbia, Canada, V6C
2Z6.



These consolidated financial statements
have been prepared in accordance with International Financial Reporting Standards on the basis that the Company is a going concern
and will be able to meet its obligations and continue its operations for its next fiscal year. Several conditions as set out below
cast uncertainties on the Company’s ability to continue as a going concern.



The Company’s ability to continue
as a going concern is dependent upon the financial support from its creditors, shareholders, and related parties, its ability to
obtain financing for its development projects, and upon the attainment of future profitable operations.



The Company has not yet achieved
profitable operations, and has accumulated losses of $4,501,596 since inception and working capital deficiency of $350,388 as at
December 31, 2016; accordingly, the Company will need to raise additional funds through future issuance of securities or debt financing.
Although the Company has raised funds in the past, there can be no assurance the Company will be able to raise sufficient funds
in the future, in which case the Company may be unable to meet its obligations as they come due in the normal course of business.
It is not possible to predict whether financing efforts will be successful or if the Company will attain a profitable level of
operations.



The current cash resources are not adequate
to pay the Company’s accounts payable and to meet its minimum commitments at the date of these financial statements, including
planned corporate and administrative expenses, and other project implementation costs, accordingly, there is significant doubt
about the Company’s ability to continue as a going concern. These financial statements do not give effect to adjustments
that would be necessary to the carrying amounts and classifications of assets and liabilities should the Company be unable to
continue as a going concern.





8





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES



| | a) | Basis of Presentation
| | -- | ---------------------



These consolidated financial statements
have been prepared on a historical cost basis except for financial instruments classified as available-for-sale that have been
measured at fair value. Cost is the fair value of the consideration given in exchange for net assets.



| | b) | 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”).



These consolidated financial
statements were approved and authorized for issue by the Board of Directors on April 28, 2017.



| | c) | Basis of Consolidation
| | -- | ----------------------



These consolidated financial statements
include the accounts of the Company and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany balances
and transactions are eliminated in preparing the consolidated financial statements. The following companies have been consolidated
within these consolidated financial statements:



|Entity                    | Country of Incorporation | Holding        | Functional Currency
|------------------------- | ------------------------ | -------------- | -------------------
|                          |                          |                |                    
|Digatrade Financial Corp. | Canada                   | Parent Company | Canadian Dollar    
|Digatrade Limited         | Canada                   | 100%           | Canadian Dollar    
|Digatrade (UK) Limited    | United Kingdom           | 100%           | Pounds Sterling    
|Digatrade Limited         | USA                      | 100%           | US Dollar          



The Company’s former subsidiaries,
Jaydoc Capital Corp. and Rainchief Renewable-1 S.R.L., were de-registered during the year ended December 31, 2015.



| | d) | Foreign Currency
| | -- | ----------------



These consolidated financial statements
are presented in Canadian dollars, which is also the functional currency of the parent company. Each subsidiary determines its
own functional currency (Note 2(c)) and items included in the financial statements of each subsidiary are measured using that functional
currency.



| | i) | Transactions and Balances in Foreign Currencies
| | -- | -----------------------------------------------



Foreign currency transactions are
translated into the functional currency of the respective entity using the exchange rates prevailing at the dates of the transactions.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the re-measurement of monetary items
at year-end exchange rates are recognized in profit or loss.



Non-monetary items measured at historical
cost are translated using the exchange rate at the date of the transaction and are not retranslated. Non-monetary items measured
at fair value are translated using the exchange rate at the date when fair value was determined.













9





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)



| | d) | Foreign Currency (Continued)
| | -- | ----------------------------



| | ii) | Foreign Operations
| | --- | ------------------



On consolidation, the assets and
liabilities of foreign operations are translated into Canadian dollars at the exchange rate prevailing at the reporting date and
their revenues and expenses are translated at exchange rates prevailing at the dates of the transactions. The exchange differences
arising on the translation are recognized in other comprehensive income and accumulated in the currency translation reserve in
equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation
is recognized in earnings and recognized as part of the gain or loss on disposal.



| | e) | Property and Equipment
| | -- | ----------------------



Property and equipment are stated
at cost less accumulated depreciation and accumulated impairment losses.



Depreciation is recognized to write
off the cost of the property and equipment less their residual values over their useful lives using the declining balance method
at 30% per annum for computer equipment and 20% for furniture and equipment, except in the year of acquisition when one-half of
the rate is used. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting
period, with the effect of any changes in estimate accounted for on a prospective basis.



An item of property and equipment
is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any
gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.



| | f) | Oil and Gas Property
| | -- | --------------------



| |  | The Company follows the full cost method of accounting for oil and gas properties
whereby all costs relating to the acquisition, exploration, and development of oil and gas reserves are capitalized on a property-by-property
basis. Such costs include land acquisition costs, geological and geophysical costs, drilling and other costs related to exploration
and development activities and do not necessarily reflect present or future values. Proceeds from the disposal of oil and gas properties
are applied against the capitalized costs of the related property.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Upon commencement of production, capitalized costs are depleted using the
unit-of-production method, based on estimated probable and proven oil and gas reserves determined by independent engineers.
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | The property was written-off in the year 2014 with no proceeds arising on
the disposition. Further details are disclosed in Note 7.
| |  | -----------------------------------------------------------------------------------------------------------------------------------



| | g) | Impairment of Non-Current Assets
| | -- | --------------------------------



The carrying amounts of non-current
assets are reviewed for impairment whenever facts and circumstances suggest that the carrying amounts may not be recoverable.
If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any
impairment. Individual assets are grouped together as a cash generating unit for impairment assessment purposes at the lowest
level at which there are identifiable cash flows that are independent from other group assets.





10





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)



| | g) | Impairment of Non-Current Assets (Continued)
| | -- | --------------------------------------------



The recoverable amount of an asset
or cash generating unit is the higher of its fair value less costs to sell and its value in use. An impairment loss exists if the
asset’s or cash generating unit’s carrying amount exceeds the recoverable amount and is recorded as an expense immediately.
In assessing the value in use, the estimated future cash flows are adjusted for the risks specific to the cash generating unit
and are discounted to their present value with a discount rate that reflects the current market indicators.



Where an impairment loss subsequently
reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized
for the asset in prior years. A reversal of an impairment loss is recognized as income immediately.



| | h) | Share Capital
| | -- | -------------



The Company records proceeds
from share issuances, net of commissions and issuance costs.  Shares issued for other than cash consideration are valued at
the quoted price on the Over-the-Counter Bulletin Board in the United States based on the earliest of: (i) the date the shares
are issued, and (ii) the date the agreement to issue the shares is reached.



| | i) | Revenue Recognition
| | -- | -------------------



Revenue
is comprised of consulting fees and commissions earned on trades executed on the digital currency trading platform. Consulting
fee income is recognized as the consulting services are provided. Commission is considered earned when a trade is completed by
the Company’s customers. As the platform is not yet fully live, commissions and consulting fees earned have been accounted
for as a recovery of development costs incurred.



| | j) | Share-Based Payments
| | -- | --------------------



The fair value method of accounting
is used for share-based payment transactions. Under this method, the cost of stock options and other share-based payments is recorded
based on the estimated fair value using the Black-Scholes option-pricing model at the grant date and charged to profit over the
vesting period. The amount recognized as an expense is adjusted to reflect the number of equity instruments expected to vest.



Upon the exercise of stock options
and other share-based payments, consideration received on the exercise of these equity instruments is recorded as share capital
and the related share-based payment reserve is transferred to share capital. The fair value of unexercised equity instruments are
transferred from reserve to retained earnings upon expiry.



| | k) | Loss per Share
| | -- | --------------



Basic loss per share is calculated
by dividing net loss by the weighted average number of common shares issued and outstanding during the reporting period. Diluted
loss per share is the same as basic loss per share, as the issuance of shares on the exercise of stock options and share purchase
warrants is anti-dilutive. The loss per share in prior periods has been adjusted to take into account the consolidation of the
Company’s common stock on June 8, 2016.





11





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)



| | l) | Income Taxes
| | -- | ------------



Tax expense recognized in profit
or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity.



| | i) | Current Income Tax
| | -- | ------------------



Current income tax assets and
liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods
that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the consolidated
financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted
by the end of the reporting period.



| | ii) | Deferred Income Tax
| | --- | -------------------



Deferred income taxes are calculated
using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases.
Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective
period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities
are always provided for in full.



Deferred tax assets are recognized
to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and
liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same
taxation authority.



Changes in deferred tax assets or
liabilities are recognized as a component of tax income or expense in profit or loss, except where they relate to items that are
recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other
comprehensive income or equity, respectively.



| | m) | Financial Instruments
| | -- | ---------------------



Financial assets and financial liabilities
are recognized when the Company becomes a party to the contractual provisions of the financial instrument.



Financial assets and financial liabilities
are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial
assets and financial liabilities (other than financial assets and financial liabilities classified at fair value through profit
or loss) are added to, or deducted from, the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities classified
at fair value through profit or loss are recognized immediately in profit or loss.



Financial assets and financial liabilities
are measured subsequently as described below. The Company does not have any derivative financial instruments.





12





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)



| | m) | Financial Instruments (Continued)
| | -- | ---------------------------------



| | i) | Financial Assets
| | -- | ----------------



For the purpose of subsequent measurement,
financial assets other than those designated and effective as hedging instruments are classified into the following categories
upon initial recognition:



| | · | Financial assets at fair value through profit or loss;
| | - | ------------------------------------------------------

| | · | Loans and receivables;
| | - | ----------------------

| | · | Held-to-maturity investments; and
| | - | ---------------------------------

| | · | Available-for-sale financial assets.
| | - | ------------------------------------



The category determines subsequent
measurement and whether any resulting income and expense is recognized in profit or loss or in other comprehensive income.



All financial assets except for those
at fair value through profit or loss are subject to review for impairment at least at each reporting date. Financial assets are
impaired when there is any objective evidence that a financial asset or a group of financial assets is impaired. Different criteria
to determine impairment are applied for each category of financial assets, which are described below.



| | · | Financial assets at fair value through profit or loss – Financial assets at
fair value through profit or loss include financial assets that are either classified as held for trading or that meet certain
conditions and are designated at fair value through profit or loss upon initial recognition. All derivative financial instruments
fall into this category, except for those designated and effective as hedging instruments. Assets in this category are measured
at fair value with gains or losses recognized in profit or loss. The Company’s cash falls into this category of financial
instruments.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Loans and receivables – Loans and receivables are non-derivative financial
assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured
at amortized cost using the effective interest method less any provision for impairment. Discounting is omitted where the effect
of discounting is immaterial. The Company’s accounts receivable falls into this category of financial instruments.
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Held-to-maturity investments – Held-to-maturity investments are non-derivative
financial assets with fixed or determinable payments and fixed maturity, other than loans and receivables. Investments are classified
as held-to-maturity if the Company has the intention and ability to hold them until maturity. The Company currently does not hold
financial assets in this category.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Held-to-maturity investments are
measured subsequently at amortized cost using the effective interest method. If there is objective evidence that the investment
is impaired as determined by reference to external credit ratings, then the financial asset is measured at the present value of
estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognized
in profit or loss.



| | · | Available-for-sale financial assets – Available-for-sale financial assets are
non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other
categories of financial assets. The Company currently does not hold financial assets in this category.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





13





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)



| | m) | Financial Instruments (Continued)
| | -- | ---------------------------------



| | i) | Financial Assets (Continued)
| | -- | ----------------------------



Available-for-sale financial assets
are measured at fair value. Gains and losses are recognized in other comprehensive income and reported within the available-for-sale
reserve within equity, except for impairment losses and foreign exchange differences on monetary assets, which are recognized in
profit or loss. When the asset is disposed of or is determined to be impaired, the cumulative gain or loss recognized in other
comprehensive income is reclassified from the equity reserve to profit or loss, and presented as a reclassification adjustment
within other comprehensive income.



For financial assets measured at
amortized cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognized, then the previously recognized impairment loss is reversed through profit
or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the
amortized cost would have been had the impairment not been recognized.



In respect of available-for-sale
financial assets, impairment losses previously recognized in profit or loss are not reversed through profit or loss. Any increase
in fair value subsequent to an impairment loss is recognized in other comprehensive income and accumulated in the revaluation reserve.



Financial assets are derecognized
when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial
risks and rewards are transferred.



ii) 	Financial Liabilities



For the purpose of subsequent measurement,
financial liabilities are classified as either financial liabilities at fair value through profit or loss, or other financial liabilities
upon initial recognition.



| | · | Financial liabilities at fair value through profit or loss – Financial liabilities
at fair value through profit or loss include financial liabilities that are either classified as held for trading or that meet
certain conditions and are designated at fair value through profit or loss upon initial recognition. Liabilities in this category
are measured at fair value with gains or losses recognized in profit or loss. The Company’s bank indebtedness falls into
this category of financial instruments.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | Other financial liabilities– Other financial liabilities are subsequently
measured at amortized cost using the effective interest method. Gains and losses are recognized in the income statement when the
liabilities are derecognized as well as through the effective interest rate method amortization process. The Company’s trade
and other payables, liabilities to customers, and promissory notes payable fall into this category of financial instruments.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



A financial liability is derecognized
when it is extinguished, discharged, cancelled or expired.





NOTE 3 – SIGNIFICANT ACCOUNTING JUDGMENTS,
ESTIMATES AND ASSUMPTIONS



In the application of the Company’s
accounting policies which are described in Note 2, management is required to make judgments, estimates, and assumptions about
the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ
from these estimates.





14





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 3 – SIGNIFICANT ACCOUNTING JUDGMENTS,
ESTIMATES AND ASSUMPTIONS (Continued)



The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if
the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current
and future periods.



Significant judgments, estimates, and assumptions
that have the most significant effect on the amounts recognized in the consolidated financial statements are described below.



Deferred Tax Assets



Deferred tax assets, including those arising
from unutilized tax losses, require management to assess the likelihood that the Company will generate sufficient taxable earnings
in future periods in order to utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits
depend on management’s estimates of future cash flows. In addition, future changes in tax laws could limit the ability of
the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly
from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be impacted.





NOTE 4 – ACCOUNTING STANDARDS ISSUED
BUT NOT YET EFFECTIVE



Anumberofnewaccountingstandards,amendmentstostandards,andinterpretationshavebeenissued butnotyeteffectiveuptothe dateofissuance ofthe Company’s consolidatedfinancialstatements.TheCompanyintendstoadoptthefollowingstandards, if applicable,when
theybecomeeffective.



| | a) | IFRS9–FinancialInstruments
| | -- | --------------------------



IFRS9asissuedreflectsthefirstphaseoftheIASBsworkonthereplacementofIAS39andappliestoclassificationandmeasurementoffinancialassetsasdefinedinIAS39.Thestandardwasinitially effectiveforannualperiodbeginning on or after
January1,2013, but amendments to IFRS 9
MandatoryEffectiveDateof IFRS
9 andTransition Disclosures,issued inDecember2011, movedthemandatory effectivedatetoJanuary
1,2018.The Company has not yet determined
the impact of this standard on its consolidated financial statements.



| | b) | IFRS15–Revenue from Contracts
with Customers
| | -- | --------------------------------------------



IFRS15clarifiestheprinciplesforrecognizingrevenuefromcontractswithcustomers.IFRS15willalsoresultin enhanceddisclosures
about revenue,provide guidancefortransactionsthatwerenotpreviouslyaddressed
comprehensively,and improve guidanceformultiple-elementarrangements.ThestandardiseffectiveforannualperiodsbeginningonorafterJanuary
1, 2018 and isto be applied retrospectively.
TheCompany has notyet
determined the impactof thisstandard on its consolidated financial statements.



| | c) | IFRS16–Leases
| | -- | -------------



IFRS
16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, unless the least
term is 12 months or less or the underlying asset has a low value. Lessor accounting remains largely unchanged from IAS 17 and
the distinction between operating and finance leases is retained. The standard is effective for annual period beginning on or after
January 1, 2019.













15





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 5 – ACCOUNTS RECEIVABLE



As at December 31, 2016 and 2015, the Company had the following
amounts due from arm’s length parties:



|                                        | 2016   | 2015  
|--------------------------------------- | ------ | ------
|                                        | $      | $     
|Credit Card Proceeds Receivable         | 5,545  | 8,272 
|Due From Trading Platform, ANX (Note 9) | 10,319 | 42,747
|                                        |        |       
|                                        | 15,864 | 51,019





NOTE 6 – PROPERTY AND EQUIPMENT



|                              | Computer
        Equipment | Furniture and
        Equipment | Total
|----------------------------- | -------------------------- | ------------------------------- | -----
|                              | $                          | $                               | $    
|COST                          |                            |                                 |      
|                              |                            |                                 |      
|At December 31, 2014          | 5,236                      | 1,656                           | 6,892
|                              |                            |                                 |      
|Additions – 2015 and 2016     | -                          | -                               | -    
|                              |                            |                                 |      
|At December 31, 2015 and 2016 | 5,236                      | 1,656                           | 6,892
|                              |                            |                                 |      
|ACCUMULATED DEPRECIATION      |                            |                                 |      
|                              |                            |                                 |      
|At December 31, 2014          | 4,713                      | 1,574                           | 6,287
|                              |                            |                                 |      
|Depreciation                  | 157                        | 16                              | 173  
|                              |                            |                                 |      
|At December 31, 2015          | 4,870                      | 1,590                           | 6,460
|                              |                            |                                 |      
|Depreciation                  | 366                        | 66                              | 432  
|                              |                            |                                 |      
|At December 31, 2016          | 5,236                      | 1,656                           | 6,892
|                              |                            |                                 |      
|NET BOOK VALUE                |                            |                                 |      
|                              |                            |                                 |      
|At December 31, 2015          | 366                        | 66                              | 432  
|                              |                            |                                 |      
|At December 31, 2016          | -                          | -                               | -    





NOTE 7 – OIL AND GAS PROPERTY



On February 10, 2012, the Company entered into
an agreement with Nueva Oil and Gas Corporation (“Nueva”) for a farm-in interest in certain oil and gas leases in Curry
County, New Mexico, United States (the “Gulf Jensen Oil Prospect”). Nueva is an arm’s length private oil company
based in Calgary, Canada.







16





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 7 – OIL AND GAS PROPERTY (Continued)



Pursuant to the terms of the agreement, the
Company paid US$33,400 (CDN$34,140) upon execution of the agreement and undertook to fund 100% of the cost of an initial seismic
program. In addition, the Company was granted an option to acquire a 90% working interest in the Gulf Jensen Oil Prospect which
the Company exercised on April 4, 2012 and paid Nueva US$75,000 (CDN$73,913). The Company’s net revenue interest was 80.0%
inclusive of the lessor royalties and the over-riding royalties.



The capitalized exploration and evaluation
asset in the amount of $108,053 was written-off in 2014 as management decided to no longer develop the property with Nueva and
to abandon all oil and gas exploration activities.





NOTE 8 – TRADE AND OTHER PAYABLES

|                                                  | 2016    | 2015   
|------------------------------------------------- | ------- | -------
|                                                  | $       | $      
|                                                  |         |        
|Trade Payables                                    | 99,830  | 33,608 
|Accrued Liabilities                               | 91,336  | 207,824
|Related Party Payable (Note 14(a)(i))             | 36,177  | 87,086 
|Share Subscription to be Refunded (Note 11(b)(vi) | 26,854  | -      
|                                                  |         |        
|                                                  | 254,197 | 328,518





NOTE 9 – LIABILITY TO CUSTOMERS



As at December 31, 2016, the Company had a
liability to customers trading on the Company’s currency platform in the amount of $10,319 (2015 – $42,747). This amount
is offset by an equal amount due to the Company from the trading platform, ANX. (Note 5)





NOTE 10 – CONVERTIBLE PROMISSORY NOTES



During 2014, the Company issued convertible
promissory notes totaling $127,024. The notes matured on December 31, 2015, with the exception of one note ($14,796) which matured
on December 31, 2016.



During 2015, the Company issued convertible
promissory notes totaling $281,638 (including US$62,000 to related parties). The notes mature on December 31, 2018.



During 2016, the Company issued convertible
promissory notes totaling $49,806 (including US$15,150 to unrelated third parties. In addition, the Company issued a convertible
promissory note in the amount of $2,919 (US$2,200) to a company controlled by a director and officer of the Company. The notes
mature on December 31, 2021.



The notes are non-interest bearing and unsecured.
All the notes become payable immediately should the Company complete a financing in excess of US$5,000,000 prior to the maturity
date and shall bear interest at 3% per annum compounded annually should the Company default on the notes.



These notes are convertible into common shares
of the Company in whole or in part at the option of the holder upon terms to be determined by the Company either 10 days prior
to repayment of the notes or the maturity date, whichever shall occur first.







17





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 10 – CONVERTIBLE PROMISSORY NOTES (Continued)



In 2014, the Company settled $98,626 in promissory
notes payable by issuing 28,000,000 shares (560,000 post-consolidation shares) (Note 11(b)(i)).



During 2016, the Company entered into assignment
of creditors and settlement of debt agreements in respect of certain convertible promissory notes totaling $293,389 (including
US$157,025). As part of the settlement, the Company issued 16,000,000 post-consolidation shares (Note 11(b)(v)) to the promissory
note holders and recognized a gain on settlement of debts in the amount of $41,406.



During 2016, the Company repaid a convertible
promissory note in the amount of $13,831 (US$10,000). The Company realized a foreign exchange loss of $306 on the transaction.



During 2015 and 2014, the Company did not make
any repayments of convertible promissory notes.



As at December 31, 2016, notes payable totaling
$156,499 were owed to related parties of the Company (2015–$221,916).





NOTE 11 – SHARE CAPITAL



| | a) | Authorized Capital
| | -- | ------------------



Unlimited number of common
shares without par value.



b) 	     Issued and Outstanding Common Shares



| | i) | On March 27, 2014, the Company issued 28,000,000 shares (560,000 post-consolidation shares) with
a fair value of $56,000 for settlement of convertible promissory notes totaling $96,626 (including US$63,500), recording a gain
of $42,626 on settlement of these debts.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ii) | On March 8, 2015, the Company completed a private placement of 250,000 shares (5,000 post-consolidation
shares) at $0.13 per share ($6.50 per post-consolidation share), raising gross proceeds of $32,000.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On November 11, 2015, the Company
completed a private placement of 400,000 shares (8,000 post-consolidation shares) shares at US$0.05 per share (US$2.50 per post-consolidation
share), raising gross proceeds of $25,998 (US$20,000). Shares have not been issued as of December 31, 2015 and 2016.



| | iii) | Effective June 8, 2016, the common shares of the Company were consolidated at the ratio of one
new common share for every 50 old common shares. The Company issued 12,306 shares to round up fractional entitlements resulting
from the consolidation. The number of common shares and basic loss per share calculations disclosed in these financial statements
have been adjusted to reflect the retroactive application of this share consolidation.
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iv) | On July 15, 2016, the Company entered into a debt settlement agreement with a company controlled
by a Director and Officer of the Company to settle outstanding accounts payable of $25,000. The Company agreed to issue 25,000,000
post- consolidation shares with a fair value equal to the value of the underlying debt settled.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------









18





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 11 – SHARE CAPITAL (Continued)



b) 	Issued and Outstanding Common Shares
(Continued)



| | v) | On August 15, 2016, the Company entered into an assignment of creditors and settlement of debt
agreement with certain arm’s length parties. The Company settled certain promissory notes totaling $118,204 (US$91,475) by
the issuance of 8,000,000 post-consolidation shares with a fair value equal to the value of the underlying debt settled.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



On December 20, 2016, the Company
entered into an assignment of creditors and settlement of debt agreement with certain arm’s length parties. The Company settled
promissory notes totaling $175,185 (including US$65,550) by the issuance of 8,000,000 post-consolidation shares with a fair value
of $133,780. A gain on settlement of debts in the amount of $41,406 was recognized upon settlement.



| | vi) | On December 12, 2016, the Company completed a private placement of 500,000 post-consolidation shares
at US$0.50 per share, raising gross proceeds of $334,975 (US$250,000). Shares have not been issued as of December 31, 2016.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Share subscription of $25,998 received
on November 11, 2015 has been reclassified to accounts payable, as the amount is expected to be refunded to the investor subsequent
to December 31, 2016.



| | c) | Share-Based Payments
| | -- | --------------------



| | i) | During the year ended December 31, 2015, the Company issued 1,400,000 shares (28,000 post-consolidation
shares) at a fair value of $0.05 per share ($2.50 per post-consolidation share) for investor relations services rendered. Share-based
compensation of $70,000 was recorded.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



During the year ended December 31,
2015, the Company issued 300,000 shares (6,000 post-consolidation shares) at a fair value of $0.05 per share ($2.50 per post-consolidation
share) for consulting services rendered. Share-based compensation of $15,000 was recorded. 150,000 of these shares (3,000 post-consolidation
shares) were issued to a related party (Note 14(b)(ii)).



| | ii) | During the year ended December 31, 2016, the Company issued 250,000 post-consolidation shares at
a fair value of $0.06 per share to a related party for consulting services rendered. Share-based compensation of $15,000 was recorded
(Note 14(b)(iii)).
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii) | During the year ended December 31, 2014, the Company did not have any share-based payments.
| | ---- | -------------------------------------------------------------------------------------------



| | d) | Share Purchase Warrants
| | -- | -----------------------



The Company had no warrants for
the year ended December 31, 2016.





19





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 11 – SHARE CAPITAL (Continued)



| | d) | Share Purchase Warrants (Continued)
| | -- | -----------------------------------



The continuity of warrants for the
year ended December 31, 2015 is as follows. The number of warrants and their exercise price have been retroactively adjusted to
reflect the share consolidation (Note 11(b)(iii)):



|Expiry Date                     | Exercise Price | December 31, 2014 | Issued | Exercised | Expired/
        Cancelled | December 31, 2015
|------------------------------- | -------------- | ----------------- | ------ | --------- | -------------------------- | -----------------
|                                |                |                   |        |           |                            |                  
|March 30, 2015                  | US$50.00       | 2,324             | -      | -         | (2,324)                    | -                
|October 15, 2015                | US$100.00      | 200               | -      | -         | (200)                      | -                
|October 28, 2015                | US$50.00       | 400               | -      | -         | (400)                      | -                
|                                |                |                   |        |           |                            |                  
|Total                           |                | 2,924             | -      | -         | (2,924)                    | -                
|                                |                |                   |        |           |                            |                  
|Weighted Average Exercise Price |                | US$53.42          | -      | -         | US$53.42                   | -                



| | e) | Escrow Shares
| | -- | -------------



On September 19, 2014, the Company
entered into an escrow agreement with a creditor. The Company agreed to pay the creditor $2,500 upon signing of the agreement and
to issue 75,000 shares (1,500 post-consolidation shares) to be held in escrow. The Company was obligated to pay the creditor a
further $7,334 (US$6,687) forty five days after the Company’s stock becomes DWAC-eligible. On December 22, 2016, the Company
paid $5,374 (US$4,000) and the creditor agreed to release the shares from escrow.





NOTE 12 – COMMITMENT



On March 31, 2015, the Company entered into
an agreement with Mega Idea Holdings Limited, dba ANX (“ANX”), to provide Crypto-currency deposit and exchange services.
Pursuant to the terms of the agreement, the Company is required to pay monthly maintenance fees of US$10,000 for maintenance and
support of the exchange platform. The agreement with ANX is for a term of three years.



On April 7, 2017 (“effective date”),
the Company entered into a revised agreement with ANX. Pursuant to the terms of the agreement, the Company is required to pay monthly
maintenance fees of US$1,500 for the first six months commencing the first month after the effective date, and US$5,000 thereafter.
The revised agreement with ANX is for a term of two years.





20





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 13 – SUPPLEMENTAL CASH FLOW INFORMATION



|   |                                                | 2016     | 2015     | 2014   
|-- | ---------------------------------------------- | -------- | -------- | -------
|   |                                                | $        | $        | $      
|a) | Change in Non-Cash Working Capital Accounts    |          |          |        
|   |                                                |          |          |        
|   | Accounts Receivable                            | 35,155   | (51,019) | -      
|   | GST Recoverable                                | 566      | 5,552    | (2,190)
|   | Prepaid Expenses                               | (3,087)  | (5,885)  | (7,058)
|   | Trade and Other Payables                       | (76,175) | 84,523   | 43,802 
|   | Liability to Customers                         | (32,428) | 42,747   | -      
|   |                                                |          |          |        
|   |                                                | (75,969) | 75,918   | 34,554 
|   |                                                |          |          |        
|b) | Significant Non-Cash Financing Activities      |          |          |        
|   |                                                |          |          |        
|   | Shares Issued for Settlement of Debts          | 276,983  | -        | 56,000 
|   | Shares Issued for Investor Relations Services  | -        | 70,000   | -      
|   | Shares Issued for Business Consulting Services | 15,000   | 15,000   | -      
|   | Expenses Paid by An Arm’s Length Party         | 8,569    | -        | -      
|   |                                                |          |          |        
|   |                                                | 300,552  | 85,000   | 56,000 
|   |                                                |          |          |        
|c) | Other Information                              |          |          |        
|   |                                                |          |          |        
|   | Interest Paid                                  | 28,974   | 49       | 4,134  
|   | Income Taxes Paid                              | -        | -        | -      





NOTE 14 – RELATED PARTIES
TRANSACTIONS



Balances and transactions between
the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed.
Details of transactions between the Company and other related parties, in addition to those transactions disclosed elsewhere in
these consolidated financial statements, are described below. All related party transactions were in the ordinary course of business
and were measured at their exchange amount.



a)	Related Party Balances



| | i) | Trade and Other Payables
| | -- | ------------------------



As at December 31, 2016, the
Company had $36,177 (2015 - $87,086) in trade and other payables owed to key management personnel. The amounts owed to key management
personnel arose from outstanding management fees and are non-interest bearing, unsecured, and have no specified terms of repayment.





21





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 14 – RELATED PARTIES
TRANSACTIONS (Continued)



a)	    Related Party Balances (Continued)



| | ii) | Promissory Notes
| | --- | ----------------



Included in Convertible Promissory
Notes as at December 31, 2016, was $89,364 including US$31,200 (2015–$87,611 including US$29,000) owed to a company
controlled by a Director (also an officer) of the Company.



Included in Convertible Promissory
Notes as at December 31, 2016, was $nil (2015 –$65,100) owed to a former officer of the Company.



Included in Convertible Promissory
Notes as at December 31, 2016, was $67,135 including US$50,000 (2015 –$69,205 including US$50,000) owed to a company
controlled by a former officer of the Company.



b)	    Compensation of Key Management
Personnel



| | i) | The Company incurred management fees for services provided by key management
personnel for the years ended December 31, 2016, 2015 and 2014, as described below.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------



|                | 2016   | 2015   | 2014  
|--------------- | ------ | ------ | ------
|                | $      | $      | $     
|                |        |        |       
|Management Fees | 60,000 | 60,000 | 60,000



| | ii) | During the year ended December 31, 2015, the Company incurred consulting fees for services provided
by a company controlled by a former officer of the Company. The fees were settled by the issuance of 150,000 shares (3,000 post-consolidation
shares) at $0.05 per share ($2.50 per post-consolidation share) (Note 11(c)(i)).
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii) | During the year ended December 31, 2016, the Company incurred consulting fees for services provided
by a director of the Company. The fees were settled by the issuance of 250,000 post-consolidation shares at $0.06 per share (Note
11(c)(ii)) and a cash payment of $6,699 (US$5,000).
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





NOTE 15 – INCOME TAX



a) 	   Deferred Tax Assets and Liabilities



The Company’s unrecognized
deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consists of the following
amounts:

|                       | December 31, | December 31,
|---------------------- | ------------ | ------------
|                       | 2016         | 2015        
|                       | $            | $           
|                       |              |             
|Non-Capital Losses     | 4,371,641    | 4,196,102   
|Capital Losses         | 29,628       | 29,628      
|Property and Equipment | 100,490      | 100,058     
|Share Issuance Costs   | -            | 3,003       
|                       |              |             
|                       | 4,501,759    | 4,328,791   



22





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 15 – INCOME TAX (Continued)



a) 	   Deferred Tax Assets and Liabilities
(Continued)

As at December 31, 2016, the
Company has non-capital losses of approximately $4,371,600 which may be applied to reduce Canadian taxable income of future years.
These non-capital losses expire as follows:

|2026 | 313,100  
|---- | ---------
|2027 | 515,300  
|2028 | 367,400  
|2029 | 1,157,900
|2030 | 307,400  
|2031 | 301,400  
|2032 | 233,000  
|2033 | 250,800  
|2034 | 183,800  
|2035 | 566,000  
|2036 | 175,500  
|     |          
|     | 4,371,600



b)    	Income Tax Expense



The income tax expense of the Company
is reconciled to the net loss for the year as reported in the consolidated statement of comprehensive loss as follows:



|                                                                                                       | 2016     | 2015     | 2014    
|------------------------------------------------------------------------------------------------------ | -------- | -------- | --------
|                                                                                                       | $        | $        | $       
|                                                                                                       |          |          |         
|Recovery of Income Tax Calculated at the
        Statutory
        Rate of 13.0% (2015 and 2014–13.5%) | (22,486) | (75,253) | (31,609)
|Deferred Tax Assets Not Recognized                                                                     | (21,519) | 68,065   | 29,268  
|Expiration of Non-Capital Losses                                                                       | -        | 7,188    | 2,341   
|Impact of Change in Substantively Enacted Tax Rates on           Opening Deferred Tax Asset            | 44,005   | -        | -       
|                                                                                                       |          |          |         
|Income Tax Expense                                                                                     | -        | -        | -       





NOTE 16 – FINANCIAL RISK MANAGEMENT OBJECTIVES
AND POLICIES



The Company is exposed to various risks in
relation to financial instruments. The Company’s financial assets and liabilities by category are summarized in Note 2(m).
The Company’s risk management is coordinated in close co-operation with the board of directors and focuses on actively securing
the Company’s short to medium-term cash flows and raising finances for the Company’s capital expenditure program. The
Company does not actively engage in the trading of financial assets for speculative purposes.



The most significant financial risks to which
the Company is exposed are described on the next page.





23





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 16 – FINANCIAL RISK MANAGEMENT OBJECTIVES
AND POLICIES (Continued)



| | a) | Liquidity risk
| | -- | --------------

| |  | 
| |  | 

Liquidity risk is the risk that
the Company will not be able to meet its financial obligations as they fall due. The Company is dependent upon the availability
of credit from its suppliers and its ability to generate sufficient funds from equity and debt financing to meet current and future
obligations. The Company has a working capital deficiency of $350,388 as at December 31, 2016. There can be no assurance that such
financing will be available on terms acceptable to the Company.



| | b) | Interest Rate Risk
| | -- | ------------------



Interest rate risk is the risk that
the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company
is not exposed to significant interest rate risk.



| | c) | Credit Risk
| | -- | -----------



Credit risk is the risk of loss
associated with a counter party’s inability to fulfill its payment obligations. The Company is in the development stage and
has not yet commenced commercial production or sales. Therefore, the Company is not exposed to significant credit risk.



| | d) | Foreign Exchange Risk
| | -- | ---------------------



Foreign exchange risk is
the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates. The Company is exposed to foreign exchange risk to the extent it incurs currency exchange platform service and development
expenditures and operating costs in foreign currencies including the U.S. Dollar. The Company does not hedge its exposure to fluctuations
in the related foreign exchange rates.



| | e) | Fair Values
| | -- | -----------



The Company uses the following hierarchy
for determining fair value measurements:



Level 1: 	Quoted
prices in active markets for identical assets or liabilities.



Level 2: 	Other
techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.



Level 3: 	Techniques
which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.



The level within which the financial
asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The
Company’s financial instruments were measured at fair value use Level 1 valuation technique during the years ended December
31, 2016 and 2015. The carrying values of the Company’s financial assets and liabilities approximate their fair values.







24





DIGATRADE FINANCIAL CORP.

(formerly “Bit-X Financial Corporation”)

Notes to the Consolidated Financial Statements

December 31, 2016 and 2015

(Expressed in Canadian Dollars)





NOTE 17 – CAPITAL
MANAGEMENT



The Company’s objective for managing
its capital structure is to safeguard the Company’s ability to continue as a going concern and to ensure it has the financial
capacity, liquidity and flexibility to fund its ongoing operations and capital expenditures.



The Company manages its share capital as capital,
which as at December 31, 2016, amounted to $3,645,457. At this time, the Company’s access to the debt market is limited and
it relies on equity issuances and the support of shareholders to fund its investments in capital assets and development of oil
and gas properties. The Company monitors capital to maintain a sufficient working capital position to fund annualized administrative
expenses and capital investments.



As at December 31, 2016, the Company had working
capital deficiency of $350,388. The Company will issue shares and may from time to time adjust its capital spending to maintain
or adjust the capital structure. There can be no assurance that the Company will be able to obtain debt or equity capital in the
case of operating cash deficits.



The Company’s share capital is not subject
to external restrictions. The Company has not paid or declared any dividends since the date of incorporation, nor are any contemplated
in the foreseeable future. There were no changes in the Company’s approach to capital management during the year ended December
31, 2016.





NOTE 18 – SUBSEQUENT EVENTS



On April 7, 2017, the Company entered into
a revised agreement with ANX (Note 12).



On April 7, 2017, the Company entered into
a debt settlement agreement with ANX for outstanding service fees of US$95,050 for a one-time cash payment of US$40,000. The gain
of $73,916 (US$55,050) on the forgiveness of debt has been reflected as a reduction in exchange platform development costs for
the year ended December 31, 2016.





25