---



MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE YEAR ENDED
DECEMBER 31, 2017

The following managements discussion and analysis
(MD&A), which is dated as of April 2, 2018, provides a review of
the activities, results of operations and financial condition of Loncor
Resources Inc. (the Company or Loncor) as at and for the
financial year of the Company ended December 31, 2017, (fiscal 2017) in
comparison with those as at and for the financial year of the Company ended
December 31, 2016 (fiscal 2016), as well as future prospects of the
Company. This MD&A should be read in conjunction with the audited
consolidated financial statements of the Company for fiscal 2017 and fiscal 2016
(the Annual Financial Statements). As the Companys consolidated
financial statements are prepared in United States dollars, all dollar amounts
in this MD&A are expressed in United States dollars unless otherwise
specified. Additional information relating to the Company, including the
Companys annual report on Form 20-F dated April 2, 2018, is available on SEDAR
at www.sedar.com and on EDGAR at www.sec.gov.

Forward-Looking Statements

The following MD&A contains forward-looking statements. All
statements, other than statements of historical fact, that address activities,
events or developments that the Company believes, expects or anticipates will or
may occur in the future (including, without limitation, statements regarding
exploration results, potential mineral resources, potential mineralization and
future plans and objectives of the Company) are forward-looking statements.
These forward-looking statements reflect the current expectations or beliefs of
the Company based on information currently available to the Company.
Forward-looking statements are subject to a number of risks and uncertainties
that may cause the actual results of the Company to differ materially from those
discussed in the forward-looking statements, and even if such actual results are
realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on the Company. Factors that could
cause actual results or events to differ materially from current expectations
include, among other things, risks related to the exploration stage of the
Company's mineral properties, uncertainties relating to the availability and
costs of financing needed in the future, the possibility that future exploration
results will not be consistent with the Companys expectations, changes in
equity markets, changes in commodity prices, failure to establish estimated
mineral resources (the Companys mineral resource figures are estimates and no
assurances can be given that the indicated levels of gold will be produced),
fluctuations in currency exchange rates, inflation, political developments in
the Democratic Republic of the Congo (the DRC), changes to regulations
affecting the Company's activities, delays in obtaining or failure to obtain
required project approvals, the uncertainties involved in interpreting
geological data and the other risks involved in the mineral exploration
business. Any forward-looking statement speaks only as of the date on which it
is made and, except as may be required by applicable securities laws, the
Company disclaims any intent or obligation to update any forward-looking
statement, whether as a result of new information, future events or results or otherwise. Although
the Company believes that the assumptions inherent in the forward-looking
statements are reasonable, forward-looking statements are not guarantees of
future performance and accordingly undue reliance should not be put on such
statements due to the inherent uncertainty therein.

1

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General

Loncor is a mineral exploration company with a primary focus on
gold. The Companys mineral properties are in the Tshopo and North Kivu
provinces of the DRC where the Company holds or controls rights under 59
exploration permits (PRs), directly through a wholly-owned DRC subsidiary,
Loncor Resources Congo SARL, or under option agreements with the holders of the
permits. At the Ngayu project in Tshopo Province, the Company, through its DRC
subsidiary, has 12 PRs, while at the North Kivu project the Company has 47 PRs
through its DRC subsidiary or under option from third parties. All of the 47
North Kivu PRs are currently under force majeure due to the poor security
situation in much of the North Kivu province.

In January 2017, the Company announced preliminary results of
the geophysical airborne survey (the Survey) undertaken by Randgold Resources
(DRC) Limited (Randgold) as part of its joint venture with Loncor relating to
Loncors Ngayu project. The Survey provided a valuable additional layer of
geological information through mapping the conductivity nature of the Ngayu
belt. The new data has assisted with resolving the lithological nature of the
belt as well as assisting in identifying major structures and areas of
structural complexity. Preliminary observations highlighted key areas of
structural complexity in the Imva fold area that are geochemically anomalous,
together with the extension of the Yindi and Adumbi structures, which form the
core of the ten areas of interest prioritized for follow-up work by Randgold
under the joint venture with Loncor.

In February 2017, the Company closed a non-brokered private
placement of 4,000,000 units of the Company at a price of Cdn$0.12 per unit for
gross proceeds of Cdn$480,000. Each such unit was comprised of one common share
of the Company and one-half of one warrant of the Company, with each full
warrant entitling the holder to purchase one common share of the Company at a
price of Cdn$0.18 for a period of two years. Also in February 2017, the Company
closed a second non-brokered private placement of 1,500,000 units of the Company
at a price of Cdn$0.13 per unit for gross proceeds of Cdn$195,000. Each such
unit was comprised of one common share of the Company and one-half of one
warrant of the Company, with each full warrant entitling the holder to purchase
one common share of the Company at a price of Cdn$0.18 for a period of two
years.

In May 2017, the Company announced that Randgold had commenced
exploration ground work on priority targets resulting from the Survey undertaken
by Randgold.

Qualified Person

William R. Wilson, a director of the Company and a "qualified
person" as such term is defined in National Instrument 43-101, has reviewed and
approved the technical information in this MD&A.

Technical Reports

Additional information with respect to the Companys Ngayu
project is contained in the technical report of Venmyn Rand (Pty) Ltd dated May
29, 2012 and entitled "Updated National Instrument 43-101 Independent Technical
Report on the Ngayu Gold Project, Orientale Province, Democratic Republic of the Congo". Additional information with
respect to the Companys North Kivu project is contained in the technical report
of Venmyn Rand (Pty) Ltd dated February 29, 2012 and entitled "National
Instrument 43-101 Independent Technical Report on the Manguredjipa Gold Project,
North Kivu Province, Democratic Republic of the Congo". A copy of each of the
said reports can be obtained from SEDAR at www.sedar.com and EDGAR at
www.sec.gov.

2

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Selected Annual Information

The following financial data is derived from the Companys
consolidated financial statements for each of the three most recently completed
financial years. This financial data has been prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.

|                   |   | 2017       |   |   | 2016       |   |   | 2015       |  
|------------------ | - | ---------- | - | - | ---------- | - | - | ---------- | -
|Net loss           | $ | (61,287    | ) | $ | (497,610   | ) | $ | (2,417,247 | )
|Net loss per share | $ | (0.00      | ) | $ | (0.00      | ) | $ | (0.03      | )
|Total assets       | $ | 27,918,284 |   | $ | 28,081,016 |   | $ | 28,049,026 |  
|Total liabilities  | $ | 1,062,299  |   | $ | 1,423,934  |   | $ | 1,757,508  |  

For fiscal 2017, the Company had a net loss of $61,287, a
decrease from the prior year loss of $497,610 mainly due to a gain on derivative
financial instruments of $314,317 and to an adjustment of accrued and other
liabilities of $207,707 during fiscal 2017.

For fiscal 2016, the Company had a net loss of $497,610, a
decrease from the prior year mainly due to an impairment of $2,300,000 recorded
by the Company in 2015 to adjust the carrying value of the Ngayu project to its
fair value. Also contributing to the decrease in net loss was reduced
exploration activities and funding of exploration expenditures by Randgold under
a farm-in arrangement whereby exploration and evaluation expenditures incurred
by Randgold are recorded on a cost-based approach and accounted in the same way
as they would for expenditures directly incurred by the Company. Exploration and
evaluation expenditures incurred by Randgold are offset by funding received from
Randgold such that no liability is recorded until a pre-feasibility study is
completed and approved

Results of Operations

For the year ended December 31, 2017, the Company reported a
net loss of $61,287 compared to a net loss of $497,610 for the year ended
December 31, 2016. Expenses capitalized to mineral properties are discussed
under the Exploration and Evaluation Expenditures section below. Significant
changes in expenses occurred during the year ended December 31, 2017 in the
expense categories described below as compared to the year ended December 31,
2016:

Consulting, management and
professional feesConsulting, management and professional fees decreased
to $105,092 from $138,498 incurred during the prior year ended December 31,
2016. Professional fees decreased due to lower legal fees in relation to the
Companys general corporate activities during the year ended December 31,
2017.

3

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Travel and promotion The
Company incurred travel and promotion expenses of $163,584 during the year ended
December 31, 2017 compared to $76,489 incurred during the prior year ended
December 31, 2016. Costs related to shareholder relations and business promotion
activities increased during the year ended December 31, 2017 due to corporate
activities related to securing new financing.

Employee benefitsThe
Companys employee benefits expense was $224,790 for the year ended December 31,
2017 compared to $188,877 incurred during the prior year ended December 31,
2016. The increase was mainly due to additional personnel being paid out of the
corporate office.

Office and sundryOffice and
sundry expenses increased to $47,932 during the year ended December 31, 2017
from $45,503 during the prior year ended December 31, 2016.

Foreign exchange loss/gainThe Company recorded a foreign exchange loss of $12,933 during the year
ended December 31, 2017 compared to a foreign exchange gain of $17,774 for the
prior year ended December 31, 2016. This change was due to fluctuations in the
value of the United States dollar relative to the Canadian dollar.

Compensation expense-share-based
paymentThe fair value of employee share-based payment expense was
$22,309 during the year ended December 31, 2017 compared to $55,176 incurred
during the year ended December 31, 2016. This was related to share-based
compensation options issued to employees, directors and officers of the Company
in 2016.

Loss /gain on derivative instrumentsDuring the year ended December 31, 2017, the Company recognized a gain
of $314,317 compared to a loss of $6,452 recognized during the prior year ended
December 31, 2016. This represents the change in fair value of the outstanding
common share purchase warrants.

Summary of Quarterly Results

The following table sets out certain unaudited consolidated
financial information of the Company for each of the last eight quarters,
beginning with the fourth quarter of 2017. This financial information has been
prepared using accounting policies consistent with International Accounting
Standards (IAS) 34 Interim Financial Reporting issued by the
International Accounting Standards Board (IASB). The Companys
presentation and functional currency is the United States dollar.

4

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2017
    
    
    2017
    
    
    2017
    
    
    20174thQuarter
    
    
    3rd Quarter
    
    
    2ndQuarter
    
    
    1stQuarterNet income/(loss)
    $
    143,385
    
    $
    80,837
    
    $
    (104,924
    )
    $
    (180,585
    )Net income/(loss) per share
    $
    0.00
    
    $
    0.00
    
    $
    (0.00
    )
    $
    (0.00
    )


2016
    
    
    2016
    
    
    2016
    
    
    20164thQuarter
    
    
    3rd Quarter
    
    
    2ndQuarter
    
    
    1stQuarterNet loss
    $
    (66,013
    )
    $
    (78,145
    )
    $
    (151,595
    )
    $
    (201,857
    )Net loss per share
    $
    (0.00
    )
    $
    (0.00
    )
    $
    (0.00
    )
    $
    (0.00
    )


The Company had net income for the fourth quarter of 2017 of
$143,385 compared to net income of $80,837 incurred during the third quarter of
2017. The change in results between the quarters was related to a gain on
derivative instruments of $314,317 incurred during the fourth quarter of 2017
compared to a gain on derivative instruments of $145,295 incurred during the
third quarter of 2017, as well as an adjustment of accrued and other
liabilities.

The Company had net income for the third quarter of 2017 of
$80,837 compared to a net loss of $104,924 incurred during second quarter of
2017. The net income was due in part to a foreign exchange gain of $53,343
during the third quarter of 2017 compared to a foreign exchange loss of $49,417
incurred during the second quarter of 2017. The net income was also due to a
gain on derivative instruments which was $145,295 during the third quarter of
2017 compared to $114,752 during the second quarter of 2017.

The Companys net loss for the second quarter of 2017 decreased
to $104,901 compared to a net loss of $180,585 during the first quarter of 2017.
The decrease in net loss was mainly due to an increase in the gain on derivative
instruments which was $114,752 during the second quarter of 2017 compared to a
loss of $27,019 in the first quarter of 2017. The increase in the gain on
derivative instruments was partially offset by an increase in foreign exchange
loss which was $49,417 in the second quarter of 2017 compared to $12,777 in the
first quarter of 2017. The increase in the gain on derivative instruments was
also partially offset by an increase in travel and promotion expenses which were
$57,517 during the second quarter of 2017 compared to $35,695 during the first
quarter of 2017.

The Companys net loss for the first quarter of 2017 increased
to $180,585 compared to a net loss of $66,013 during the fourth quarter of 2016.
The increase in net loss was partly due to an increase in travel and promotion
expenses which were $35,695 in the first quarter of 2017 compared to $4,088 in
the fourth quarter of 2016. Additionally, there was also an increase in
consulting, management and professional fees which were $23,311 in the first
quarter of 2017 compared to $6,336 in the fourth quarter of 2016. The increase
in net loss was also partly due to an increase in foreign exchange loss which
was $12,777 in the first quarter of 2017 compared to a gain of $46,161 in the
fourth quarter of 2016.

The Companys net loss for the fourth quarter of 2016 decreased
to $66,013 compared to a net loss of $78,145 in the third quarter of 2016. The
decrease in net loss was partly due to a decrease in travel and promotion
expenses which were $4,088 in the fourth quarter of 2016 compared to $28,235 in
the third quarter of 2016. Additionally, there was also a decrease in consulting
and professional fees which were $6,336 in the fourth quarter of 2016 compared
to $28,648 in the third quarter of 2016. The decrease in net loss was also
partly due to an increase in foreign exchange gain of $46,161 in the fourth quarter of
2016 compared to $15,174 in the third quarter of 2016. The decrease in travel
and promotion expenses and consulting and management fees and the increase in
foreign exchange gain were partially offset by an increase in the loss on
derivative instruments which was $32,869 in the fourth quarter of 2016 compared
to a gain of $38,543 in the third quarter of 2016.

5

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The Companys net loss for the third quarter of 2016 decreased
  to $78,145 compared to a net loss of $151,595 in the second quarter of 2016. The
  decrease in net loss was partly due to an increase in the gain on derivative
  instruments from a loss of $12,126 in the second quarter of 2016 compared to a
  gain $38,543 in the third quarter of 2016. The decrease in net loss was also
  partly due to a foreign exchange gain of $15,174 in the third quarter of 2016
compared to a foreign exchange loss of $660 in the second quarter of 2016.

The Companys net loss for the second quarter of 2016 decreased
to $151,595 compared to a net loss of $201,857 in the first quarter of 2016. The
decrease in net loss was mainly due to a decrease in foreign exchange loss,
which had been $42,901 in the first quarter of 2016 compared to $660 in the
second quarter of 2016.

Liquidity and Capital Resources

The Company historically relies primarily on equity financings
to fund its activities. Although the Company has been successful in completing
equity financings in the past, there is no assurance that the Company will
secure the necessary financings in the future. The volatility in the gold price
has made it more difficult to secure equity financing for many exploration
companies.

As at December 31, 2017, the Company had cash and cash
equivalents of $20,162 and a working capital deficit of $726,550 compared to
cash and cash equivalents of $21,520 and a working capital deficit of $1,150,458
as at December 31, 2016.

During the year ended December 31, 2017, the Company incurred
cash exploration expenditures of $1,423,630 (year ended December 31, 2016:
$254,454). A breakdown of all exploration expenditures is presented below under
Exploration and Evaluation Expenditures.

In February 2017, the Company closed a non-brokered private
placement of 4,000,000 units of the Company at a price of Cdn$0.12 per unit for
gross proceeds of Cdn$480,000. Each such unit was comprised of one common share
of the Company and one-half of one warrant of the Company, with each full
warrant entitling the holder to purchase one common share of the Company at a
price of Cdn$0.18 for a period of two years. Also, in February 2017, the Company
closed a second non-brokered private placement of 1,500,000 units of the Company
at a price of Cdn$0.13 per unit for gross proceeds of Cdn$195,000. Each such
unit was comprised of one common share of the Company and one-half of one
warrant of the Company, with each full warrant entitling the holder to purchase
one common share of the Company at a price of Cdn$0.18 for a period of two
years.

The Company has strategically reduced budgets significantly and
implemented cost cutting measures having regard to current market conditions and
its low cash position and working capital deficiency. As is typical for an
exploration company, the Company will need to raise additional funds to continue
its activities. The Company expects to raise such additional funds through
offerings of its shares. However, if the Company raises additional funds by
issuing additional shares, the ownership percentages of existing shareholders
will be reduced and the securities that the Company may issue in the future may have
rights, preferences or privileges senior to those of the current holders of the
Companys common shares. Such securities may also be issued at a discount to the
market price of the Companys common shares, resulting in possible further
dilution to the book value per share of common shares. If the Company is unable
to raise sufficient funds through equity offerings, it may need to sell an
interest in its properties. There can be no assurance the Company would be
successful in selling any such interest.

6

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Contractual Obligations

The Companys contractual obligations as at December 31, 2017
are described in the following table:

Payments due by periodContractualObligation
    Total
    Payments due less than
      1 year
    Payments due in 1-3 yearsLoan
    $122,753
    $122,753
    -


The Company also has in place a lease agreement for the head
office location in Toronto, Canada.

Exploration and Evaluation Expenditures

The following table provides a breakdown of exploration and
evaluation expenditures incurred during the year ended December 31, 2017:

|                               |   | North Kivu
      Project |  |   | Ngayu Project |   |   | Total      |  
|------------------------------ | - | ------------------------ |  | - | ------------- | - | - | ---------- | -
|Balance 12/31/2016             | $ | 10,105,415               |  | $ | 17,752,354    |   | $ | 27,857,769 |  
|                               |   |                          |  |   |               |   |   |            |  
|Field camps expenses           |   | -                        |  |   | 21,968        |   |   | 21,968     |  
|Geophysics                     |   | -                        |  |   | 174           |   |   | 174        |  
|Geochemistry                   |   | 8,443                    |  |   | 75,985        |   |   | 84,428     |  
|Geology                        |   | 20,159                   |  |   | 181,433       |   |   | 201,592    |  
|Professional fees              |   | 58,967                   |  |   | 150,445       |   |   | 209,412    |  
|Business promotion             |   | -                        |  |   | 1,343         |   |   | 1,343      |  
|Travel                         |   | 9,226                    |  |   | 98,927        |   |   | 108,153    |  
|Office and sundry              |   | 74,373                   |  |   | 278,159       |   |   | 352,532    |  
|Interest and bank charges      |   | 16,508                   |  |   | 3,043         |   |   | 19,551     |  
|Salaries                       |   | 1,521                    |  |   | 22,709        |   |   | 24,230     |  
|Amortization                   |   | 1,732                    |  |   | 15,583        |   |   | 17,315     |  
|Other                          |   | 12,612                   |  |   | 386,329       |   |   | 398,941    |  
|Expenditures for the period    |   | 203,541                  |  |   | 1,236,098     |   |   | 1,439,639  |  
|Retention allowance adjustment |   | -                        |  |   | (412,549      | ) |   | (412,549   | )
|Funding from Randgold          |   | -                        |  |   | (1,251,296    | ) |   | (1,251,296 | )
|Balance 12/31/2017             | $ | 10,308,956               |  | $ | 17,324,607    |   | $ | 27,633,564 |  

7

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The following table provides a breakdown of exploration and
evaluation expenditures incurred during the year ended December 31, 2016:

|                            |   | North Kivu Project |   |   | Ngayu Project |   |   | Total      |  
|--------------------------- | - | ------------------ | - | - | ------------- | - | - | ---------- | -
|Balance 12/31/2015          | $ | 10,096,482         |   | $ | 17,739,748    |   | $ | 27,836,230 |  
|                            |   |                    |   |   |               |   |   |            |  
|Professional fees           |   | 1,100              |   |   | 27,120        |   |   | 28,220     |  
|Travel                      |   | 37                 |   |   | 4,095         |   |   | 4,132      |  
|Office and sundry           |   | 1,238              |   |   | 155,382       |   |   | 156,620    |  
|Surveying costs             |   | -                  |   |   | 395,230       |   |   | 395,230    |  
|Interest and bank charges   |   | 1,188              |   |   | 3,933         |   |   | 5,121      |  
|Salaries                    |   | 1,071              |   |   | 9,653         |   |   | 10,724     |  
|Amortization                |   | 4,282              |   |   | 38,537        |   |   | 42,819     |  
|Gain on disposal of assets  |   | (10                | ) |   | (2,390        | ) |   | (2,400     | )
|Other                       |   | 27                 |   |   | 25,203        |   |   | 25,230     |  
|Expenditures for the period |   | 8,933              |   |   | 658,620       |   |   | 667,553    |  
|Funding from Randgold       |   | -                  |   |   | (646,014      | ) |   | (646,014   | )
|Balance 12/31/2016          | $ | 10,105,415         |   | $ | 17,752,354    |   | $ | 27,857,769 |  

Outstanding Share Data

The authorized share capital of the Company consists of an
unlimited number of common shares and an unlimited number of preference shares,
issuable in series. As at April 2, 2018, the Company had outstanding 158,689,732
common shares, 2,400,000 stock options to purchase common shares and 3,625,000
common share purchase warrants.

Related Party Transactions

|a) | Key Management Personnel
|-- | ------------------------

Key management includes directors (executive and
non-executive), the Chief Executive Officer (CEO), the Chief Financial
Officer, and the senior executives reporting directly to the CEO. The
remuneration of the key management of the Company as defined above, during the
years ended December 31, 2017, December 31, 2016 and December 31 2015 was as
follows:

For the year endedDecember 31, 2017
    
    
    December 31, 2016
    
    
    December 31, 2015Salaries
    $
    124,746
    
    $
    137,458
    
    $
    145,067Employee retention allowance
    $
    10,396
    
    $
    11,455
    
    $
    9,090Compensation
      expense-share-based payments
    $
    22,309
    
    $
    55,176
    
    $
    -$
    157,451
    
    $
    204,088
    
    $
    154,157


8

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|b) | Other Related Parties
|-- | ---------------------

As at December 31, 2017, an amount of $4,518 was due from
Kuuhubb Inc. (formerly Delrand Resources Limited), a company with common
directors, incurred in connection with common expenses (December 31, 2016 -
$nil).

As at December 31, 2017, an amount of $75,670 relating to
consulting fees and advances provided to the Company was due to Arnold Kondrat,
a director and officer of the Company (December 31, 2016 - $77,443).

As at December 31, 2017, an amount of $161,635 was due to
Gentor Resources Inc. (a company with common directors) related to common
expenses (December 31, 2016 - $49,085).

|                       |   | December 31, 2017 |  |   | December 31, 2016 | 
|---------------------- | - | ----------------- |  | - | ----------------- | 
|Due from related party | $ | 4,518             |  | $ | -                 | 
|Due to related parties | $ | 237,305           |  | $ | 127,909           | 

Accounting Standards Issued But Not Yet Effective

The Company has reviewed new and revised accounting
pronouncements that have been issued but are not yet effective and determined
that the following may have an impact on the Company:

IFRS 9, Financial instruments (IFRS 9) was issued by
the International Accounting Standards Board (IASB) on July 24, 2014
and will replace IAS 39 Financial Instruments: Recognition and Measurement. IFRS
9 is intended to reduce the complexity for the classification, measurement, and
impairment of financial instruments. Most of the requirements in IAS 39 for
classification and measurement of financial liabilities were carried forward
unchanged to IFRS 9, except that an entity choosing to measure a financial
liability at fair value will present the portion of any change in its fair value
due to changes in the entitys own credit risk in other comprehensive income,
rather than within profit or loss. The new standard also requires a single
impairment method to be used, replacing the multiple impairment methods in IAS
39. The mandatory effective date is for annual periods beginning on or after
January 1, 2018. The Company is evaluating the impact of this standard on its
consolidated financial statements.

IFRS 16, Leases (IFRS 16) was issued by the IASB in
January 2016 and will replace IAS 17 Leases. IFRS 16 specifies the methodology
to recognize, measure, present and disclose leases. The standard provides a
single lessee accounting model, requiring lessees to recognize assets and
liabilities for all leases unless the lease term is 12 months or less or the
underlying asset has a low value. The mandatory effective date is for annual
periods beginning on or after January 1, 2019. The Company is evaluating the impact of this
standard on its consolidated financial statements.

9

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Critical Accounting Estimates

The preparation of the Companys consolidated financial
statements in conformity with International Financial Reporting Standards
(IFRS) requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these
estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Information about critical judgments in applying accounting policies and
estimates that have the most significant effect on the amounts recognized in the
consolidated financial statements included the following:

Estimates:

Impairment

Assets, including property, plant and equipment and exploration
and evaluation assets, are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amounts exceed their recoverable
amounts. The assessment of the fair value often requires estimates and
assumptions such as discount rates, exchange rates, commodity prices,
rehabilitation and restoration costs, future capital requirements and future
operating performance. Changes in such estimates could impact recoverable values
of these assets. Estimates are reviewed regularly by management.

Share-based payment transactions

The Company measures the cost of equity-settled transactions
with employees by reference to the fair value of the equity instruments at the
date at which they are granted. Estimating fair value for share-based payment
transactions requires determining the most appropriate valuation model, which is
dependent on the terms and conditions of the grant. This estimate also requires
determining the most appropriate inputs to the valuation model including the
expected life of the stock option, volatility and dividend yield and making
assumptions about them.

For warrant-based derivative financial instruments, the Company
uses the Black-Scholes option pricing model to estimate fair value of the
derivative instruments. The assumptions and models used for estimating fair
value of warrant-based derivative financial instruments are disclosed in Note 13
of the Annual Financial Statements.

Judgments:

Provisions and contingencies

The amount recognized as provision, including legal,
contractual and other exposures or obligations, is the best estimate of the
consideration required to settle the related liability, including any related
interest charges, taking into account the risks and uncertainties surrounding
the obligation. In addition, contingencies will only be resolved when one or
more future events occur or fail to occur. Therefore, assessment of
contingencies inherently involves the exercise of significant judgment and estimates of the
outcome of future events. The Company assesses its liabilities and contingencies
based upon the best information available, relevant tax laws and other
appropriate requirements.

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Title to mineral property interests

Although the Company has taken steps to verify title to mineral
properties in which it has an interest, these procedures do not guarantee the
Companys title. Such properties may be subject to prior agreements or transfers
and title may be affected by undetected defects.

Exploration and evaluation expenditure

The application of the Companys accounting policy for
exploration and evaluation expenditure requires significant judgment in
determining whether it is likely that future economic benefits will flow to the
Company, which may be based on assumptions about future events or circumstances.
Estimates and assumptions made may change if new information becomes available.
There are key circumstances that would indicate a test for impairment is
required, which include: the expiry of the right to explore, substantive
expenditure on further exploration is not planned, exploration for and
evaluation of the mineral resources in the area have not led to discovery of
commercially viable quantities, and/or sufficient data exists to show that the
carrying amount of the asset is unlikely to be recovered in full from successful
development or by sale. If information becomes available suggesting impairment,
the amount capitalized is written off in the consolidated statement of
comprehensive loss during the year the new information becomes available.

Significant judgements have been made with regards to the
potential for indicators of impairment. This includes judgements related to the
ability to carry out the desired exploration activities as a result of various
permits currently being under force majeure due to the poor security situation
at the North Kivu property and the need to allocate resources amongst different
projects based on the availability of capital and funding.

Functional and presentation currency

Judgment is required to determine the functional currency of
the Company and its subsidiaries. These judgments are continuously evaluated and
are based on managements experience and knowledge of the relevant facts and
circumstances.

Financial Risk Management

Fair Value of Financial Assets and Liabilities

The consolidated statements of financial position carrying
amounts for cash and cash equivalents, advances receivable, balances due from/to
related parties, accounts payable, accrued liabilities and the employee
retention allowance approximate fair value due to their short-term nature. Due
to the use of subjective judgments and uncertainties in the determination of
fair values these values should not be interpreted as being realizable in an
immediate settlement of the financial instruments.

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Fair value hierarchy

The following table provides an
analysis of financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Levels 1 to 3 based on the degree to
which the fair value is observable:

| |  | Level 1 fair value measurements are those
      derived from quoted prices (unadjusted) in active markets for identical
  assets or liabilities;                                                                                                       
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                        
| |  | Level 2 fair value measurements are those
      derived from inputs other than quoted prices included within Level 1 that
      are observable for the asset or liability, either directly (i.e. as
  prices) or indirectly (i.e. derived from prices);
| |   |                                                                                                                                                                                                                                                        
| |  | Level 3 fair value measurements are those
      derived from valuation techniques that include inputs for the asset or
      liability that are not based on observable market data (unobservable
  inputs).                                           

There were no transfers between Level 1, 2 and 3 during the
reporting period. Cash and cash equivalents are ranked Level 1 as the market
value is readily observable. The carrying value of cash and cash equivalents
approximates fair value, as maturities are less than three months. The fair
value of warrants would be ranked in the hierarchy as Level 2.

Foreign Currency Risk

Foreign exchange risk is the risk that a variation in exchange
rates between the United States dollar and Canadian dollar or other foreign
currencies will affect the Companys operations and financial results. A portion
of the Companys transactions is denominated in Canadian dollars. Significant
foreign exchange gains or losses are reflected as a separate component of the
consolidated statement of comprehensive loss. The Company does not use
derivatives instruments to reduce its exposure to foreign currency risk. See
Note 16(c) of the Annual Financial Statements for additional details.

Credit Risk

Financial instruments which are potentially subject to credit
risk for the Company consist primarily of cash and cash equivalents, advances
receivable and due from related parties. Cash and cash equivalents are
maintained with several financial institutions of reputable credit and may be
redeemed upon demand. It is therefore the Companys opinion that such credit
risk is subject to normal industry risks and is considered minimal. See Note
16(d) of the Annual Financial Statements for additional details.

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to
meet its financial obligations as they become due. The Company attempts to
ensure that there is sufficient cash to meet its liabilities when they are due
and manages this risk by regularly evaluating its liquid financial resources to
fund current and long-term obligations and to meet its capital commitments in a
cost-effective manner. If future cash flows are fairly uncertain, the liquidity
risk increases. The Companys liquidity requirements are met through a variety
of sources, including cash and cash equivalents, and equity capital markets.

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Mineral Property Risk

The Companys operations in the DRC are exposed to various
levels of political risk and uncertainties, including political and economic
instability, government regulations relating to exploration and mining, military
repression and civil disorder, all or any of which may have a material adverse
impact on the Companys activities or may result in impairment or loss of part
or all of the Company's assets.

Risks and Uncertainties

The Company is subject to a number of risks and uncertainties
that could significantly impact its operations and future prospects. The
following discussion pertains to certain principal risks and uncertainties but
is not, by its nature, all inclusive.

All of the Company's projects are located in the DRC. The
assets and operations of the Company are therefore subject to various political,
economic and other uncertainties, including, among other things, the risks of
war and civil unrest, hostage taking, military repression, labor unrest, illegal
mining, expropriation, nationalization, renegotiation or nullification of
existing licenses, permits, approvals and contracts, taxation policies, foreign
exchange and repatriation restrictions, changing political conditions,
international monetary fluctuations, currency controls and foreign governmental
regulations that favor or require the awarding of contracts to local contractors
or require foreign contractors to employ citizens of, or purchase supplies from,
a particular jurisdiction. Changes, if any, in mining or investment policies or
shifts in political attitude in the DRC may adversely affect the Company's
operations. Operations may be affected in varying degrees by government
regulations with respect to, but not limited to, restrictions on production,
price controls, export controls, currency remittance, income taxes, foreign
investment, maintenance of claims, environmental legislation, land use, land
claims of local people, water use and mine safety. Failure to comply strictly
with applicable laws, regulations and local practices relating to mineral rights
could result in loss, reduction or expropriation of entitlements. In addition,
in the event of a dispute arising from operations in the DRC, the Company may be
subject to the exclusive jurisdiction of foreign courts or may not be successful
in subjecting foreign persons to the jurisdiction of courts in Canada. The
Company also may be hindered or prevented from enforcing its rights with respect
to a governmental instrumentality because of the doctrine of sovereign immunity.
It is not possible for the Company to accurately predict such developments or
changes in laws or policy or to what extent any such developments or changes may
have a material adverse effect on the Company's operations.

The DRC is a developing nation emerging from a period of civil
war and conflict. Physical and institutional infrastructure throughout the DRC
is in a debilitated condition. The DRC is in transition from a largely state
controlled economy to one based on free market principles, and from a
non-democratic political system with a centralized ethnic power base, to one
based on more democratic principles. There can be no assurance that these
changes will be effected or that the achievement of these objectives will not
have material adverse consequences for the Company and its operations. The DRC
continues to experience instability in parts of the country due to certain
militia and criminal elements. While the government and United Nations forces
are working to support the extension of central government authority throughout
the country, there can be no assurance that such efforts will be successful.

The only sources of future funds for further exploration
programs which are presently available to the Company are the sale of equity
capital, or the offering by the Company of an interest in its properties to be earned by another party carrying out further
exploration. There is no assurance that such sources of financing will be
available on acceptable terms, if at all. In the event that commercial
quantities of minerals are found on the Company's properties, the Company does
not have the financial resources at this time to bring a mine into production.

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All of the Company's properties are in the exploration stage
  only and none of the properties contain a known body of commercial ore. The
  Company currently operates at a loss and does not generate any revenue from its
  mineral properties. The exploration and development of mineral deposits involve
  significant financial risks over a significant period of time, which even a
  combination of careful evaluation, experience and knowledge may not eliminate.
  Few properties which are explored are ultimately developed into producing mines.
  Major expenditures may be required to establish reserves by drilling and to
  construct mining and processing facilities at a site. It is impossible to ensure
  that the Company's exploration programs will result in a profitable commercial
mining operation.

The Company's mineral resources are estimates and no assurances
can be given that the indicated levels of gold will be produced. Such estimates
are expressions of judgment based on knowledge, mining experience, analysis of
drilling results and industry practices. Valid estimates made at a given time
may significantly change when new information becomes available. While the
Company believes that its resource estimates are well established, by their
nature resource estimates are imprecise and depend, to a certain extent, upon
statistical inferences, which may ultimately prove unreliable. If such estimates
are inaccurate or are reduced in the future, this could have a material adverse
impact on the Company. In addition, there can be no assurance that gold
recoveries or other metal recoveries in small-scale laboratory tests will be
duplicated in larger scale tests under on-site conditions or during
production.

The Company's exploration and, if such exploration is
successful, development of its properties is subject to all of the hazards and
risks normally incident to mineral exploration and development, any of which
could result in damage to life or property, environmental damage and possible
legal liability for any or all damage.

The price of gold has fluctuated widely. The future direction
of the price of gold will depend on numerous factors beyond the Company's
control including international, economic and political trends, expectations of
inflation, currency exchange fluctuations, interest rates, global or regional
consumption patterns, speculative activities and increased production due to new
extraction developments and improved extraction and production methods. The
effect of these factors on the price of gold, and therefore on the economic
viability of the Company's properties, cannot accurately be predicted. As the
Company is only at the exploration stage, it is not yet possible for the Company
to adopt specific strategies for controlling the impact of fluctuations in the
price of gold.

The Company uses the United States dollar as its functional
currency. Fluctuations in the value of the United States dollar relative to the
Canadian dollar could have a material impact on the Companys consolidated
financial statements by creating gains or losses. The Company recorded a foreign
exchange loss of $12,933 during the year ended December 31, 2017, compared to a
foreign exchange gain of $17,774 during the year ended December 31, 2016, due to
the variation in the value of the United States dollar relative to the Canadian
dollar. No currency hedge policies are in place or are presently contemplated.

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The natural resource industry is intensely competitive in all
of its phases, and the Company competes with many companies possessing greater
financial resources and technical facilities than itself.

Reference is made to the Company's annual report on Form 20-F
dated April 2, 2018 for additional risk factor disclosure (a copy of such
document can be obtained from SEDAR at www.sedar.com and EDGAR at
www.sec.gov).

Disclosure Controls and Procedures

Management is responsible for establishing and maintaining
adequate internal controls over disclosure controls and procedures, as defined
in National Instrument 52-109 CertificationofDisclosureinIssuersAnnualandInterimFilingsof the Canadian Securities
Administrators and Rules 13a15(e) and Rule 15d15(e) under the United States
Exchange Act of 1934, as amended. Disclosure controls and procedures are
designed to provide reasonable assurance that all relevant information is
gathered and reported to senior management, including the Companys Chief
Executive Officer and Chief Financial Officer, on a timely basis so that
appropriate decisions can be made regarding public disclosure. As at December
31, 2017, management of the Company, with the participation of the Chief
Executive Officer and the Chief Financial Officer, evaluated the effectiveness
of the Companys disclosure controls and procedures as required by Canadian
securities laws. Based on that evaluation, the Chief Executive Officer and the
Chief Financial Officer concluded that, as of December 31, 2017, the disclosure
controls and procedures were adequately designed and effective in ensuring that
information required to be disclosed by the Company it files or submits under
Canadian securities laws is recorded, processed, summarized and reported within
the time periods specified by those laws and that material information is
accumulated and communicated to management of the Company, including the Chief
Executive Officer and the Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

Internal controls have been designed to provide reasonable
assurance regarding the reliability of the Companys financial reporting and the
preparation of financial statements for external purposes in accordance with
IFRS. As at December 31, 2017, the Companys Chief Executive Officer and Chief
Financial Officer evaluated or caused to be evaluated under their supervision
the effectiveness of the Companys internal control over financial reporting. In
making this assessment, management used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission in Internal Control 
Integrated Framework of 2013. Based on that evaluation, the Chief Executive
Officer and the Chief Financial Officer concluded that, as of December 31, 2017,
the Companys internal control over financial reporting was effective to provide
reasonable assurance regarding the reliability of the Companys financial
reporting and the preparation of financial statements for external purposes in
accordance with IFRS.

The Company is required under Canadian securities laws to
disclose herein any change in the Companys internal control over financial
reporting that occurred during the Companys most recent period that has
materially affected, or is reasonably likely to materially affect, the Companys
internal control over financial reporting. There were no changes in the
Companys internal control over financial reporting during the year ended
December 31, 2017, that management believes have materially affected, or are
reasonably likely to materially affect, the Companys internal control over
financial reporting.

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It should be noted that a control system, including the
Companys disclosure controls and procedures system and internal control over
financial reporting system, no matter how well conceived can provide only
reasonable, but not absolute, assurance that the objective of the control system
will be met and it should not be expected that the Companys disclosure controls
and procedures system and internal control over financial reporting will prevent
or detect all reporting deficiencies whether caused by either error or fraud.

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