----

----

|                                            |                                 |                                          |
|-------------------------------------------------|--------------------------------------|-----------------------------------------------|
| Large accelerated filer  ☐ | Accelerated filer  ☐ | Non-accelerated filer  ☐ | Emerging growth company  ☒ |
|                              |   |                                                                                                                                                                                      |   |                     |
|-----------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
| U.S. GAAP  ☐ |   | International Financial Reporting Standards as issued                by the International Accounting Standards Board  ☒ |   | Other  ☐ |

----

|       |                                                                         | Page   |
|------------|------------------------------------------------------------------------------|--------|
| PART I     |                                                                         |
|       |                                                                         |   |
| Item 1.    | Identity of Directors, Senior Management and Advisers                        | 5      |
| Item 2.    | Offer Statistics and Expected Timetable                                      | 5      |
| Item 3.    | Key Information                                                              | 5      |
| Item 4.    | Information on the Company                                                   | 13     |
| Item 4a.   | Unresolved Staff Comments                                                    | 20     |
| Item 5.    | Operating and Financial Review and Prospects                                 | 20     |
| Item 6.    | Directors, Senior Management and Employees                                   | 24     |
| Item 7.    | Major Shareholders and Related Party Transactions                            | 28     |
| Item 8.    | Financial Information                                                        | 29     |
| Item 9.    | The Offer and Listing                                                        | 29     |
| Item 10.   | Additional Information                                                       | 30     |
| Item 11.   | Quantitative and Qualitative Disclosure About Market Risk                    | 32     |
| Item 12.   | Description of Securities other than Equity Securities                       | 32     |
|       |                                                                         |   |
| PART II    |                                                                         |
|       |                                                                         |   |
| Item 13.   | Defaults, Dividend Arrearages and Delinquencies                              | 33     |
| Item 14.   | Material Modifications to the Rights of Security Holders and Use of Proceeds | 33     |
| Item 15.   | Controls and Procedures                                                      | 33     |
| Item 16A.  | Audit Committee Financial Expert                                             | 35     |
| Item 16B.  | Code of Ethics                                                               | 35     |
| Item 16C.  | Principal Accountant Fees and Services                                       | 36     |
| Item 16D.  | Exemption from the Listing Standards for Audit Committee                     | 36     |
| Item 16E.  | Purchase of Equity Securities by the Issuer and Affiliated Purchaser         | 36     |
| Item 16F.  | Changes in Registrant's Certifying Accountant                                | 36     |
| Item 16G.  | Corporate Governance                                                         | 36     |
| Item 16H.  | Mine Safety Disclosure                                                       | 36     |
|       |                                                                         |   |
| PART III   |                                                                         |
|       |                                                                         |   |
| Item 17.   | Financial Statements                                                         | 37     |
| Item 18.   | Financial Statements                                                         | 37     |
| Item 19.   | Exhibits                                                                     | 58     |
|       |                                                                         |   |
| Signatures |                                                                         | 59     |

----

----

|                       | Average | High | Low  | Close |
|----------------------------|---------|------|------|-------|
| Fiscal Year Ended 12/31/19 | 1.33    | 1.36 | 1.30 | 1.30  |
| Fiscal Year Ended 12/31/18 | 1.30    | 1.36 | 1.23 | 1.36  |
| Fiscal Year Ended 12/31/17 | 1.30    | 1.37 | 1.21 | 1.25  |
| Fiscal Year Ended 12/31/16 | 1.32    | 1.46 | 1.25 | 1.34  |
| Fiscal Year Ended 12/31/15 | 1.28    | 1.40 | 1.17 | 1.38  |

----

|   | 9/19 | 10/19 | 11/19 | 12/19 | 01/20 | 02/20 |
|--------|------|-------|-------|-------|-------|-------|
| High   | 1.33 | 1.33  | 1.33  | 1.33  | 1.32  | 1.34  |
| Low    | 1.32 | 1.31  | 1.31  | 1.30  | 1.30  | 1.32  |
|                                        |   | YearEnded12/31/19(‘000) -except per share data |    |   | YearEnded12/31/18(‘000) -except per share data |   |    | YearEnded12/31/17(‘000) -except per share data |   |   | YearEnded12/31/16(‘000) -except per share data |   |   | YearEnded12/31/15(‘000) -except per share data |    |
|---------------------------------------------|--------|------------------------------------------------------|---------|--------|------------------------------------------------------|--------|---------|------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------------------------------|---------|
| Revenue                                     |   | $                                                    | -       |   |                                                 | $      | -       |                                                 |   | $      | -                                                    |   |   | $                                                    | -       |   |   | $ | - |   |
| Net (Loss) Income                           |   | $                                                    | (212    | )      |                                                 | $      | (218    | )                                                    |   | $      | 1,803                                                |   |   | $                                                    | (250    | ) |   | $ | 341 |   |
| Net (Loss) Income Per Share                 |   | $                                                    | 0.00    |   |                                                 | $      | 0.00    |                                                 |   | $      | 0.00                                                 |   |   | $                                                    | 0.00    |   |   | $ | 0.00 |   |
| Diluted  Net (Loss) Income Per Share   |   | $                                                    | 0.00    |   |                                                 | $      | 0.00    |                                                 |   | $      | 0.00                                                 |   |   | $                                                    | 0.00    |   |   | $ | 0.00 |   |
| Dividends Per Share                         |   | $                                                    | 0.00    |   |                                                 | $      | 0.00    |                                                 |   | $      | 0.00                                                 |   |   | $                                                    | 0.00    |   |   | $ | 0.00 |   |
| Weighted  Avg. Shares O/S (‘000) |   |                                                 | 409,144 |   |                                                 |   | 409,144 |                                                 |   |   | 409,144                                              |   |   |                                                 | 411,275 |   |   |   | 439,144 |   |
| Working Capital                             |   | $                                                    | (70     | )      |                                                 | $      | 182     |                                                 |   | $      | 399                                                  |   |   | $                                                    | 261     |   |   | $ | 510 |   |
| Resource Properties                         |   | $                                                    | -       |   |                                                 | $      | -       |                                                 |   | $      | -                                                    |   |   | $                                                    | -       |   |   | $ | - |   |
| Long-Term Debt                              |   | $                                                    | -       |   |                                                 | $      | -       |                                                 |   | $      | -                                                    |   |   | $                                                    | -       |   |   | $ | - |   |
| Shareholders’ Equity                  |   | $                                                    | 1,635   |   |                                                 | $      | 1,847   |                                                 |   | $      | 2,065                                                |   |   | $                                                    | 262     |   |   | $ | 511 |   |
| Share Capital                               |   | $                                                    | 16,732  |   |                                                 | $      | 16,732  |                                                 |   | $      | 16,732                                               |   |   | $                                                    | 16,732  |   |   | $ | 16,732 |   |
| Capital Stock Shares  (‘000)     |   |                                                 | 409,144 |   |                                                 |   | 409,144 |                                                 |   |   | 409,144                                              |   |   |                                                 | 409,144 |   |   |   | 439,144 |   |
| Total Assets                                |   | $                                                    | 1,758   |   |                                                 | $      | 1,903   |                                                 |   | $      | 2,099                                                |   |   | $                                                    | 320     |   |   | $ | 572 |   |

----

----

----

----

----

----

----

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| SC Block             |  % interest |  Currently  Producing |
|----------------------|------------------|---------------------------------|
| SC72 Recto Bank      | 70%              | No                              |
| SC40 North Cebu      | 66.67%           | No                              |
| SC14C-1 Galoc        | 2.27%            | Yes                             |
| SC6A Octon           | 5.56%            | No                              |
| SC6B Bonita          | 8.18%            | No                              |
| SC14A Nido           | 8.46%            | No*                             |
| SC14B Matinloc       | 12.40%           | No*                             |
| SC14B-1 N. Matinloc  | 19.46%           | No                              |
| SC14C-2 W. Linapacan | 9.10%            | No                              |
| SC14D Retention Area | 8.16%            | No                              |
| SC14 Tara            | 10%              | No                              |

----

----

----

----

----

| ● | Development of SC72 |
|---------|---------------------|

| ● | Continued participation in Galoc |
|---------|----------------------------------|

| ● | Continued review of exploration blocks to identify potential drilling targets |
|---------|-------------------------------------------------------------------------------|

| ● | Continued review of administrative expenses |
|---------|---------------------------------------------|

----

| ● | Forum Energy’s cash inflows are dependent on the Galoc Field production and the economic life of this field is expected to end in 2021.  Forum Energy’s operations do not generate                  sufficient cash to fund new exploration work; therefore, in the event Forum Energy issued new capital to fund these costs, the Company’s interest in Forum Energy will be diluted. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Forum Energy is a closely held private company and there is a limited population of potential buyers for FEC’s relatively small interest in Forum Energy. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Forum Energy’s interest in its main asset SC72 could be diluted depending on the agreement reached, if any, between the Philippine and Chinese governments concerning the maritime                  dispute. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Further exploration work has to be completed on SC72 and SC40 to confirm the value of the resources within these properties. |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| ● | In March 2017 Forum Energy, through a subsidiary, entered into an unsecured loan agreement with PXP that provides for a loan facility of up to US$6 million.  The balance outstanding                  at the end of 2017 was approximately US$5.5 million.  The loan facility has a term of three years and bears interest at LIBOR + 3.5% per annum.  There is no certainty that this loan facility will be renewed, in which case Forum Energy may                  issue new shares to settle this amount outstanding. Terms of the loan agreement do not include any right for PXP to convert an unpaid amount into new shares of Forum Energy. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Name                                                    | Age    | Position/Area of Experience/Function                                                                                                             |
|---------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| Paul Wallace (1) (2)Claro Ramirez (1)Lyle Brown (1) (3) | 685866 | Director since November 2012, President and CEO since August 2015 and CFO since June 2015.Director since October 2011Director since October 2013 |

| (1) | Member of Audit Committee in 2019. |
|-----|------------------------------------|

| (2) | Member of Compensation Committee in 2019 |
|-----|------------------------------------------|

| (3) | Member of the Corporate Governance Committee in 2019 |
|-----|------------------------------------------------------|

----

|  Directors/Officers |  Salary | Option Exercise Net Market Value(1) | TotalCompensation |
|--------------------------|--------------|-------------------------------------|-------------------|
| Claro Ramirez            | $12,000      | $0.00                               | $12,000           |
| Lyle Brown               | $24,000      | $0.00                               | $24,000           |
| Paul Wallace             | $12,000      | $0.00                               | $12,000           |
| Total                    | $48,000      | $0.00                               | $48,000           |

----

|  Directors/Officers |  Salary | Option Exercise Net Market Value(1) | TotalCompensation |
|--------------------------|--------------|-------------------------------------|-------------------|
| Claro Ramirez            | $12,000      | $0.00                               | $12,000           |
| Lyle Brown               | $24,000      | $0.00                               | $24,000           |
| Paul Wallace             | $12,000      | $0.00                               | $12,000           |
| Total                    | $48,000      | $0.00                               | $48,000           |

----

| Name of Director and/or Officer and number of shares held:      | Number of              Shares | Percent              of Class |
|-----------------------------------------------------------------|-------------------------------|-------------------------------|
| Paul Wallace                                                    | -                             | -                             |
| Claro Ramirez                                                   | -                             | -                             |
| Lyle Brown                                                      | -                             | -                             |
| Number of shares held by all Directors and Officers as a group: | -                             | -                             |
| Name | Number of Share Purchase Warrants | Exercise Price | Expiration Date |
|------|-----------------------------------|----------------|-----------------|
| None | None                              |           |            |

----

| Name                      | Number of Shares Owned | Percent of Class |
|---------------------------|------------------------|------------------|
| PXP Energy Corporation *  | 225,000,000            | 54.99            |
| Asian Coast International | 62,740,000             | 16.56            |

----

| Year Ended | High  | Low   |
|------------|-------|-------|
| 12/31/19   | $0.02 | $0.00 |
| 12/31/18   | $0.05 | $0.00 |
| 12/31/17   | $0.02 | $0.00 |
| 12/31/16   | $0.01 | $0.00 |
| 12/31/15   | $0.01 | $0.00 |
| Quarter Ended | Volume     | High  | Low   |
|---------------|------------|-------|-------|
| 12/31/19      | 8,274,786  | $0.00 | $0.00 |
| 9/30/19       | 4,931,109  | $0.01 | $0.00 |
| 6/30/19       | 3,540,745  | $0.01 | $0.00 |
| 3/31/19       | 6,112,025  | $0.02 | $0.00 |
| 12/31/18      | 7,849,233  | $0.02 | $0.01 |
| 9/30/18       | 3,777,114  | $0.02 | $0.01 |
| 6/30/18       | 26,833,298 | $0.05 | $0.01 |
| 3/31/18       | 15,372,734 | $0.02 | $0.00 |

----

| Month Ended | High  | Low   | Volume    |
|-------------|-------|-------|-----------|
| 2/29/20     | $0.00 | $0.00 | 1,070,089 |
| 1/31/20     | $0.00 | $0.00 | 465,901   |
| 12/31/19    | $0.00 | $0.00 | 7,939,340 |
| 11/30/19    | $0.00 | $0.00 | 305,046   |
| 10/31/19    | $0.00 | $0.00 | 30,400    |
| 9/30/19     | $0.00 | $0.00 | 1,011,629 |

----

----

----

----

----

|  | 1. | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
|--|----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 2. | Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, regulatory agencies and in other public                  communications made by the registrant; |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3. | Compliance with applicable governmental laws, rules and regulations; |
|--|----|----------------------------------------------------------------------|

|  | 4. | The prompt internal reporting of violations of the standards to an appropriate person or persons identified in the standards; and |
|--|----|-----------------------------------------------------------------------------------------------------------------------------------|

|  | 5. | Accountability for adherence to the standards of the Code of Ethics. |
|--|----|----------------------------------------------------------------------|

----

----

Report of Auditors, dated March 27, 2020

Balance Sheets at December 31, 2019 and December 31, 2018

Statements of Loss and Deficit for the three Years ended December 31, 2019, December 31, 2018, and December 31, 2017.

Statements of Cash Flows for the three Years ended December 31, 2019, December 31, 2018, and December 31, 2017

Notes to the Consolidated Financial Statements

----

----

----

|                                        |   | December 312019 |      |   | December 312018 |   |
|---------------------------------------------|--------|-----------------|-----------|--------|-----------------|--------|
| ASSETS                                      |   |            |      |   |            |   |
|                                        |   |            |      |   |            |   |
| Current assets                              |   |            |      |   |            |   |
| Cash (Note 6)                               |   | $               | 42,548    |   |            | $      | 228,991 |   |
| Receivables                                 |   |            | 3,072     |   |            |   | 2,045 |   |
| Prepaid expenses                            |   |            | 7,288     |   |            |   | 6,555 |   |
|                                        |   |            | 52,908    |   |            |   | 237,591 |   |
|  Non-current assets                    |   |            |      |   |            |   |   |   |
| Deferred transaction costs (Note 15)        |   |            | 39,381    |   |            |   | - |   |
| Equipment (Note 7)                          |   |            | 205       |   |            |   | 292 |   |
| Investment in Forum Energy Limited (Note 8) |   |            | 1,665,000 |   |            |   | 1,665,000 |   |
|                                        |   | $               | 1,757,494 |   |            | $      | 1,902,883 |   |
| Trade and accrued payables |   | $      | 122,116 |   |   | $      | 55,822 |   |
|----------------------------|--------|--------|---------|--------|--------|--------|--------|--------|
|                       |   |   | 122,116 |   |   |   | 55,822 |   |
| Share capital (Note 9)       |   |   | 16,732,397  |   |   |   | 16,732,397  |   |
|------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
| Contributed surplus (Note 9) |   |   | 3,058,063   |   |   |   | 3,058,063   |   |
| Deficit                      |   |   | (18,155,082 | )      |   |   | (17,943,399 | )      |
|                         |   |   | 1,635,378   |   |   |   | 1,847,061   |   |
|                         |   | $      | 1,757,494   |   |   | $      | 1,902,883   |   |

----

|                                                                        |   | Year ended December 312019 |     |   | Year ended December 312018 |   |     | Year ended December 312017 |   |
|-----------------------------------------------------------------------------|--------|----------------------------|----------|--------|----------------------------|--------|----------|----------------------------|--------|
|                                                                        |   |                       |     |   |                       |   |     |                       |   |
| General and administrative expenses                                         |   |                       |     |   |                       |   |     |                       |   |
| General and administration (Notes 10 and 11)                                |   | $                          | 213,561  |   |                       | $      | 222,326  |                       |   | $ | 166,263 |   |
| Operating loss                                                              |   |                       | (213,561 | )      |                       |   | (222,326 | )                          |   |   | (166,263 | ) |
|                                                                        |   |                       |     |   |                       |   |     |                       |   |   |   |   |
| Gain on reclassification of the investment in Forum Energy Limited (Note 8) |   |                       | -        |   |                       |   | -        |                       |   |   | 1,965,000 |   |
| Interest income                                                             |   |                       | 1,878    |   |                       |   | 4,661    |                       |   |   | 4,299 |   |
| Net and Comprehensive income (loss)                                         |   | $                          | (211,683 | )      |                       | $      | (217,665 | )                          |   | $ | 1,803,036 |   |
|                                                                        |   |                       |     |   |                       |   |     |                       |   |   |   |   |
| - Basic and diluted                                              |   | $      | (0.00       | )      |   | $      | (0.00       | )      |   | $      | 0.00        |   |
|------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|--------|-------------|--------|
|                                                             |   |   |        |   |   |   |        |   |   |   |        |   |
| Weighted average number of shares outstanding, basic and diluted |   |   | 409,143,765 |   |   |   | 409,143,765 |   |   |   | 409,143,765 |   |

----

|                                  |   | Share capital |       |   | Contributed surplus |   |      | Deficit |   |   | Total       |   |
|---------------------------------------|--------|---------------|------------|--------|---------------------|--------|-----------|---------|--------|--------|-------------|--------|
|                                  |   |          |       |   |                |   |      |    |   |   |        |   |
| Balance January 1, 2019               |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (17,943,399 | )      |   | $ | 1,847,061 |   |
| Total comprehensive loss for the year |   |          | -          |   |                |   | -         |    |   |   | (211,683    | )      |   |   | (211,683 | ) |
| Balance December 31, 2019             |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (18,155,082 | )      |   | $ | 1,635,378 |   |
|                                  |   |          |       |   |                |   |      |    |   |   |        |   |   |   |   |   |
|                                    |   | Share capital |       |   | Contributed surplus |   |      | Deficit |   |   | Total       |   |
|-----------------------------------------|--------|---------------|------------|--------|---------------------|--------|-----------|---------|--------|--------|-------------|--------|
|                                    |   |          |       |   |                |   |      |    |   |   |        |   |
| Balance January 1, 2018                 |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (17,725,734 | )      |   | $ | 2,064,726 |   |
| Total comprehensive loss for the year   |   |          | -          |   |                |   | -         |    |   |   | (217,665    | )      |   |   | (217,665 | ) |
| Balance December 31, 2018               |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (17,943,399 | )      |   | $ | 1,847,061 |   |
|                                    |   |          |       |   |                |   |      |    |   |   |        |   |   |   |   |   |
|                                    |   | Share capital |       |   | Contributed surplus |   |      | Deficit |   |   | Total       |   |
| Balance January 1, 2017                 |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (19,528,770 | )      |   | $ | 261,690 |   |
| Total comprehensive income for the year |   |          | -          |   |                |   | -         |    |   |   | 1,803,036   |   |   |   | 1,803,036 |   |
| Balance December 31, 2017               |   | $             | 16,732,397 |   |                | $      | 3,058,063 |    |   | $      | (17,725,734 | )      |   | $ | 2,064,726 |   |

----

|                                                               |   | Year ended December 312019 |     |   | Year ended December 312018 |   |     | Year ended December 312017 |   |
|--------------------------------------------------------------------|--------|----------------------------|----------|--------|----------------------------|--------|----------|----------------------------|--------|
|                                                               |   |                       |     |   |                       |   |     |                       |   |
| Cash used in                                                       |   |                       |     |   |                       |   |     |                       |   |
| OPERATING ACTIVITIES                                               |   |                       |     |   |                       |   |     |                       |   |
| Net income (loss) for the year                                     |   | $                          | (211,683 | )      |                       | $      | (217,665 | )                          |   | $ | 1,803,036 |   |
|                                                               |   |                       |     |   |                       |   |     |                       |   |   |   |   |
| Non-cash items included in net income (loss)                       |   |                       |     |   |                       |   |     |                       |   |   |   |   |
| Amortization                                                       |   |                       | 87       |   |                       |   | 126      |                       |   |   | 178 |   |
| Gain on reclassification of the investment in Forum Energy Limited |   |                       | -        |   |                       |   | -        |                       |   |   | (1,965,000 | ) |
| Receivables                           |   |   | (1,027   | )      |   |   | (1,085   | )      |   |   | (81      | ) |
|---------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|----------|---|
| Prepaid expenses                      |   |   | (733     | )      |   |   | 590      |   |   |   | (455     | ) |
| Trade and accrued payables            |   |   | 66,294   |   |   |   | 21,877   |   |   |   | (24,691  | ) |
| Net cash used in operating activities |   |   | (147,062 | )      |   |   | (196,157 | )      |   |   | (187,013 | ) |
| Proceeds from sale of Forum Energy Limited shares |   |   | - |   |   |   | - |   |   |   | 300,000 |   |
|---------------------------------------------------|--------|--------|---|--------|--------|--------|---|--------|--------|--------|---------|--------|
| Net cash provided by investing activity           |   |   | - |   |   |   | - |   |   |   | 300,000 |   |
| Deferred transaction costs          |   |   | (39,381  | )      |   |   | -        |   |   |   | -       |   |
|-------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|---------|--------|
| Net cash used in financing activity |   |   | (39,381  | )      |   |   | -        |   |   |   | -       |   |
|                                |   |   |     |   |   |   |     |   |   |   |    |   |
| Net increase (decrease) in cash     |   |   | (186,443 | )      |   |   | (196,157 | )      |   |   | 112,987 |   |
| Cash – beginning of the year  |   |   | 228,991  |   |   |   | 425,148  |   |   |   | 312,161 |   |
| Cash – end of the year        |   | $      | 42,548   |   |   | $      | 228,991  |   |   | $      | 425,148 |   |

----

| a) | Statement of Compliance |
|----|-------------------------|

| b) | Basis of Measurement |
|----|----------------------|

----

| c) | Nature of Operations and Going Concern |
|----|----------------------------------------|

----

| b) | Foreign Currency Translation |
|----|------------------------------|

----

| c) | Income Taxes |
|----|--------------|

| d) | Earnings / Loss Per Share |
|----|---------------------------|

| e) | Financial Instruments |
|----|-----------------------|

----

| e) | Financial Instruments (continued) |
|----|-----------------------------------|

| • | Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities |
|---------|---------------------------------------------------------------------------------------------------|

| • | Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|

| (i) | The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| e) | Financial Instruments (continued) |
|----|-----------------------------------|

| (i) | The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii) | The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| e) | Financial Instruments (continued) |
|----|-----------------------------------|

----

| f) | Share capital |
|----|---------------|

| g) | Finance income and expenses |
|----|-----------------------------|

----

----

| Computer Equipment               |   | December 31 2019 |    |   | December 31 2018 |   |    | December 31 2017 |   |
|----------------------------------|--------|------------------|---------|--------|------------------|--------|---------|------------------|--------|
| Cost                             |   |             |    |   |             |   |    |             |   |
| Opening Cost                     |   | $                | 15,543  |   |             | $      | 15,543  |             |   | $ | 15,543 |   |
| Additions                        |   |             | -       |   |             |   | -       |             |   |   | - |   |
| Ending Cost                      |   |             | 15,543  |   |             |   | 15,543  |             |   |   | 15,543 |   |
|                             |   |             |    |   |             |   |    |             |   |   |   |   |
| Accumulated Depreciation         |   |             |    |   |             |   |    |             |   |   |   |   |
| Opening Accumulated Depreciation |   | $                | (15,251 | )      |             | $      | (15,125 | )                |   | $ | (14,947 | ) |
| Charge for the year              |   |             | (87     | )      |             |   | (126    | )                |   |   | (178 | ) |
| Ending Accumulated Depreciation  |   |             | (15,338 | )      |             |   | (15,251 | )                |   |   | (15,125 | ) |
|                             |   |             |    |   |             |   |    |             |   |   |   |   |
| Carrying Value                   |   | $                | 205     |   |             | $      | 292     |             |   | $ | 418 |   |
|   |                                      |   | Number of shares held |      |   | Amount |   |
|--------|-------------------------------------------|--------|-----------------------|-----------|--------|--------|--------|
|   |                                      |   |                  |      |   |   |   |
|   | Balance December 31, 2017, 2018, and 2019 |   |                  | 5,550,200 |   |   | $      | 1,665,000 |   |

----

| a) | Authorized: |
|----|-------------|

|   | Common Shares                                    |   | Number |        |   | Amount |   |
|--------|--------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|   | Balance, December 31, 2019 and December 31, 2018 |   |   | 409,143,765 |   |   | $      | 16,732,397 |   |

| b) | Nature and Purpose of Equity and Reserves |
|----|-------------------------------------------|

| c) | Share based payments: |
|----|-----------------------|

----

|                     |   | December 31, 2019 |    |   | December 31, 2018 |   |    | December 31, 2017 |   |
|--------------------------|--------|-------------------|---------|--------|-------------------|--------|---------|-------------------|--------|
| Professional fees        |   | $                 | 56,773  |   |              | $      | 44,836  |              |   | $ | 10,641 |   |
| Bank charges             |   |              | 3,789   |   |              |   | 3,567   |              |   |   | 3,283 |   |
| Listing and filing fees  |   |              | 19,980  |   |              |   | 31,201  |              |   |   | 10,873 |   |
| Office and miscellaneous |   |              | 21,016  |   |              |   | 25,883  |              |   |   | 22,895 |   |
| Consulting (Note 10)     |   |              | 108,513 |   |              |   | 108,000 |              |   |   | 108,000 |   |
| Amortization (Note 7)    |   |              | 87      |   |              |   | 126     |              |   |   | 178 |   |
| Travel                   |   |              | -       |   |              |   | 8,691   |              |   |   | - |   |
| Foreign exchange         |   |              | 3,403   |   |              |   | 22      |              |   |   | 10,393 |   |
|                     |   | $                 | 213,561 |   |              | $      | 222,326 |              |   | $ | 166,263 |   |
|                                                                               |   | December 31, 2019 |     |   | December 31, 2018 |   |     | December 31, 2017 |   |
|------------------------------------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|----------|-------------------|--------|
| Income (loss) before income taxes                                                  |   | $                 | (211,683 | )      |              | $      | (217,665 | )                 |   | $ | 1,803,036 |   |
| Tax expense (recovery) based on statutory rate of 27.0% (2018: 27.0%, 2017: 27.0%) |   |              | (57,000  | )      |              |   | (59,000  | )                 |   |   | 487,000 |   |
| Non-deductible expenditures and non-taxable revenues                               |   |              | -        |   |              |   | -        |              |   |   | (265,000 | ) |
| Foreign currency adjustment on non-monetary items                                  |   |              | -        |   |              |   | -        |              |   |   | (55,000 | ) |
| Adjustment to prior years provision versus statutory tax return                    |   |              | -        |   |              |   | -        |              |   |   | (567,000 | ) |
| Other                                                                              |   |              | (7,000   | )      |              |   | 1,000    |              |   |   | - |   |
|                                                                               |   |              | (64,000  | )      |              |   | (58,000  | )                 |   |   | (400,000 | ) |
| Changes in unrecognized deferred tax assets                                        |   |              | 64,000   |   |              |   | 58,000   |              |   |   | 400,000 |   |
| Total income tax expense                                                           |   | $                 | -        |   |              | $      | -        |              |   | $ | - |   |
|                             |   | December 31, 2019 |       |   | December 31, 2018 |   |
|----------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                             |   |              |       |   |              |   |
| Allowable capital losses         |   | $                 | 468,000    |   |              | $      | 468,000 |   |
| Non-capital losses               |   |              | 1,683,000  |   |              |   | 1,619,000 |   |
| Capital assets and other         |   |              | 1,000      |   |              |   | 1,000 |   |
| Investments                      |   |              | 858,000    |   |              |   | 858,000 |   |
| Unrecognized deferred tax assets |   |              | (3,010,000 | )      |              |   | (2,946,000 | ) |
|                             |   | $                 | -          |   |              | $      | - |   |

----

| - | Market Risk |
|---|-------------|

| - | Credit Risk |
|---|-------------|

| - | Liquidity Risk |
|---|----------------|

| a) | Market Risk |
|----|-------------|

----

| b) | Credit risk |
|----|-------------|

| c) | Liquidity risk |
|----|----------------|

----

----

| 1.1 | Certificate of Continuance of the Registrant (incorporated by reference to                  Exhibit 3.1 to the Registrant’s Registration Statement on Form F-1, File No. 33-81290 (the “Registration”); * |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.2 | By-Laws of the Registrant (incorporated by reference to Exhibit 3.2 to the                  Registration Statement); * |
|-----|------------------------------------------------------------------------------------------------------------------------|

| 11 | Code of Ethics *; |
|----|-------------------|

| 12.1 | Certification by the Chief Executive Officer and                        Chief Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith); |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1 | Certification by the Chief Executive Officer                              and Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith); |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 | **FEC Resources Inc.** |                                  |
|----------------------|------------------------|---------------------------------------|
|                 | (Registrant)           |                                  |
|                 |                   |                                  |   |
| Date: March 30, 2020 | By:                    | /s/Paul Wallace                       |   |
|                 |                   | Paul Wallace                          |   |
|                 |                   | President and Chief Executive Officer |   |
|                 |                   |                                  |   |